Common use of Quality Targets Clause in Contracts

Quality Targets. Just like Mergon in relation to its customers, the Supplier also shall be obliged to establish a target of zero number of errors. Target value of regular supplies to Mergon is 100 ppm in case of supplies for the automotive industry and 300 ppm in case of supplies for another sector. If the Seller finds out that the targets set are not to be achieved, he shall be obliged to submit to Mergon concrete plans for the corrective measures and to implement them. A Supplier for series production, in particular the Supplier of components, shall be obliged to implement and maintain the Quality Management System in conformity with the ISO 9001 series of standards. The Supplier shall be obliged, upon previous agreement, to allow to carry out an audit of activities directly relating to supplies for Mergon. To avoid doubts, the goods and materials supplied to Mergon must always be of the highest quality, and in terms of appearance and consistency, they must fully conform to PPAP (if applicable) or the advertising illustrations Mergon has at disposal (catalogue, website, samples, etc.) The liability of the Seller for any loss, resulting in connection with the defects of goods supplied, shall remain unaffected. The aim of Mergon, with respect to the technical, economic and environmental aspects, is to minimize the negative impact of their products on human health and the environment. In order to achieve this aim, the Supplier is expected to establish and maintain an effective Environmental Management System. The Supplier undertakes to obtain any and all official permits required for the production of his materials and components, and to continuously comply with the requirements ensuing from them.