Issue No:
GLOBAL-STANDARD OPERATIONAL PROCEDURE
Date :
00
JULY ‘13
G-SOP 7-03
SUPPLIER QUALITY MANAGEMENT
PROCEDURE
Prepared By:
Reviewed By:
Reviewed By:
Approved By:
Approved By:
Noel Briffa
Cindy Ji
Clemente Gutierrez
Michael Brotherton
Sadek El Idrissi
Stephen Rizzo
MEM – Quality
Management
Representative
MES – Quality
Management
Representative
NAA – Quality
Management
Representative
MES – Managing Director
Senior Operations
Manager
NAA – General Manager
G-MQ 01
Approved By:
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Methode Electronics Inc.
SUPPLIER QUALITY MANAGEMENT
PROCEDURE
Issue No:
Date :
00
JUNE ‘13
G-SOP 7-03
1
Purpose
The purpose of this procedure is to provide guidelines in selecting, releasing, monitoring and
rating of Methode Electronics supply base.
2
Scope
This procedure applies to:
- Awarding business and management of new suppliers.
- Awarding new business to existing suppliers.
- Supplier monitoring and development.
3
Responsibilities
New supplier selection and approval:
 The Purchasing function is responsible to:
- Identify potential suppliers.
- Set ‘Non disclosure agreement’
- Instigate preliminary assessment / evaluation process
- Liaise with suppliers in accepting Methode contracts.

The STA function is responsible to:
- Audit new potential suppliers
- Develop new potential suppliers
Awarding of new business to existing suppliers:
 The Purchasing function is responsible to:
- Obtain quotations from suppliers, as per Methode and Customer Specific
Requirements
- Receive and Evaluate Cost Breakdown Sheets
- Negotiate terms and prices to meet and exceed set targets
- Request and receive Supplier Technical Feasibility Commitment [STFC]
- Request and receive proposed Supplier Packaging Data Sheet [SPDS]
- Order PPAP parts

The STA function is responsible to:
- Review and approve Supplier Technical Feasibility Commitment [STFC]
- Together with the Packaging Engineer, review and approve Supplier Packaging
Data Sheet [SPDS]
- Manage design review with supplier
- Receive PPAP parts and release

Cross Functional Team (Purchasing, STA, Launch Manager and Engineering/Product
Development) is responsible for supplier selection.
Supplier Evaluation and Development
 The STA function is responsible to:
- Continuously monitor supplier performance and calculate supplier scorecards
- Communicate Performance review results to suppliers and Cross Functional Team
- Manage corrective action plan with negative rated suppliers
- Manage Supplier improvement plans with suppliers
- Re-evaluate suppliers and carry out audits as need be
G-MQ 01
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Methode Electronics Inc.
SUPPLIER QUALITY MANAGEMENT
PROCEDURE
Issue No:
Date :
00
JUNE ‘13
G-SOP 7-03
Incoming product conformity shall be managed as per G-SOP 8-03 Nonconforming Product /
Process Control Procedure.
4
Procedure/Flow chart
MANAGEMENT OF SUPPLIER SELECTION, APPROVAL & EVALUATION PROCESS
Supplier Approval is a process that is handled by Purchasing and STA.
Purchasing submits two copies of the Methode NDA, supplier profile questionnaire and self
assessment audit questionnaire to supplier. This documents need to be signed by supplier and
hard copies are returned to Methode Purchasing.
If no deviations are requested by supplier NDA copies are signed by the Divisional Purchasing
Manager.
If minor deviations are requested, the NDA is sent to the Methode Electronics corporate advisor
and if these are accepted, the modified documents will be submitted to company CEO for
approval. A signed copy is provided to corporate for records.
If major deviations are requested, Methode Purchasing will not pursue with supplier.
The Functional Safety Representative shall be consulted for projects that are defined as Safety
Critical.
Supplier profile is reviewed by Purchasing and STA. This questionnaire provides a details
insight of supplier set up and key organisational aspects.
For Key Suppliers, Purchasing shall ask for the company’s financial audit reports and assess
the company’s financial strength. This exercise will stop at this point if supplier is deemed as
unacceptable.
Purchasing shall then issue an RFQ with a supplier in order to assess his competitiveness.
Methode’s policy is to limit the no. of suppliers and use one common pool between all business
units as much as possible. Before proceeding to the final evaluation phase, Purchasing will
request approval from either Methode Vice president of Methode NAA or Methode Europe.
If approved, STA will plan an audit at supplier while Purchasing will negotiate contracts such as
Vendor Requirements, Consignment Stock and Terms and conditions.
Once above process is ready, Purchasing and STA will include Supplier in the Methode
Supplier Approved list.
G-MQ 01
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Methode Electronics Inc.
Issue No:
SUPPLIER QUALITY MANAGEMENT PROCEDURE
00
G-SOP 7-03
JUNE ‘13
Date :
FLOWCHART ‘A’ – Management of New Suppliers
Refer also to G-SOP 7-02 Purchasing Management Procedure
Add New Supplier
Submit Non Discolsure
Agreement (NDA) for
signature –
if applicable (Buyer)
Request Supplier to fill in
Supplier Profile [G-MB 17]
(Buyer)
Request Financial auditing
report for selected supplier
(Buyer – Finance)
Stop Process
If technology used by supplier is
unique or if the supplier is
Customer directed, continue with
Methode Self assessment audit.
NO
Is
Supplier
Financially
strong?
Benchmarking:
Quote shall be sent to
supplier using document
G-MB 100. At this stage
supplier shall understand
that Methode has a set of
requirements that shall
be adhered to.
YES
YES
Note:- Ensure that ISO9001
Certified Suppliers are allowed by
End Customer.
Refer to Flowchart ‘B’
Is Supplier ISO9001
certified?
NO
Is Supplier ISO /
TS16949 certified?
YES
Analyse Cost
Breakdown sheet
(Buyer)
Benchmark Supplier to
assess if competitive
(Buyer)
Is Supplier
Competitive?
Discuss cost breakdown
sheet
with supplier and highlight
possible improvements
(Buyer)
NO
YES
Present the new supplier for
VPs approval (Buyer)
Stop Evaluation of
supplier
NO
YES
Is Supplier
Flexible to change/
improve further?
YES
Re-evaluate supplier
competitiveness after
changes in cost breakdown
Is Supplier
Competitive?
NO
Stop Evaluation of
supplier
Is Supplier
approved by
Methode VPs?
NO
YES
Proceed to phase 2 Quality
requirements and Contracting
(STA & Buyer)
Request Supplier to fill in
Self assessment
questionnaire
(STA)
Stop Evaluation of
supplier
NO
Negotiate Contracts. Vendor
Guidelines, Terms & Conditions,
Consignment stock, ASN/EDI
(Buyer)
Does supplier
meet minimum
requirements?
Are Vendor Guidelines &
Terms & Conditions signed?
(including payment terms)
YES
NO
Plan site audit-system
and process
(if applicable)
YES
NO
Does supplier
meet minimum
requirements?
Discuss EDI/ASN and if
applicable discuss
Consignment stock
YES
Develop supplier
according to audit
findings
File all documentation in
E-filing
A company can be considered as an approved supplier for
Methode if all documents are in place and requirements shown
in attached procedure are met.
Approve supplier and include in
Supplier Classification List
In case Methode is directing the supplier to use a specific
company as a sub-supplier, Methode is obliged to assess the
company in question by requesting a Self Assessment
Questionnaire and if need be conduct a site audit.
The Functional Safety Representative shall be consulted on
projects considered as ‘Safety Critical’.
G-MQ 01
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Methode Electronics Inc.
SUPPLIER QUALITY MANAGEMENT
PROCEDURE
Issue No:
Date :
00
JULY ‘13
G-SOP 7-03
AWARDING NEW / ADDITIONAL BUSINESS TO EXISTING SUPPLIERS
Purchasing shall request suppliers to quote for new business as highlighted by G-SOP 7-02
Purchasing Management Procedure. Suppliers may be guided by Purchasing to meet and
exceed targets set by finance.
STA shall evaluate STFC and SPDS.
Purchasing will present the scenario to the Cross Functional Team (Purchasing, STA, Launch
Manager and Engineering) for discussion. Analysis and recommendations shall be presented to
the Divisional Purchasing manager for approval.
Short listed Supplier shall be informed through a nomination letter as may be required.
The Functional Safety Representative shall be consulted for projects that are defined as Safety
Critical.
Design review takes place and design changes are mutually agreed between Methode and
Supplier. During this meeting, supplier commits to meet set critical project milestones.
Design review meeting minutes are prepared by Supplier. These shall be reviewed and approved
by the Cross Functional Team. The STA manages this activity. Final approval and acceptance
shall be done by the Engineering / Product Development Manager. Refer to Flowchart ‘C’
Supplier submits FOTs, PPAP parts and documentation as agreed during design review. This is
managed through APQP by the STA.
Part release is carried out according to the MANAGEMENT OF PPAP SAMPLES PROCEDURE.
G-MQ 01
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Methode Electronics Inc.
Issue No:
SUPPLIER QUALITY MANAGEMENT PROCEDURE
00
JUNE ‘13
Date :
G-SOP 7-03
FLOWCHART ‘B’ – Awarding New Business to Existing Suppliers
RFQs New Projects / Running
Change (G-MB35)
Issue RFQ to Potential Suppliers
(Buyer)
Do not use supplier
NO
Is potential supplier
TS 16949 certified?
Is potential supplier
ISO 19001 certified?
NO
YES
End
Customer
allow Non ISO /
TS16949?
Suppliers
NO
YES
YES
What is the
supplier’s latest
performance
rating?
Is Customer
concession
approved?
YES
C or BOH
Request Customer
concession
Refer to Flowchart ‘D’
NO
Do not use supplier
A or B
Customer Directed
Define responsibility matrix
(RASIC)
Customer & Supplier & MEM
Is Supplier
directed by
Customer?
Methode Chosen
Methode
Responsibility
Who is
responsible for
PPAP?
Documentation required for
Release
Carried Over from other
Methode Approved
Suppliers
Catalogue / Off the Shelf
Customer
Responsibility
- Supplier Packaging
Data Sheet
(Buyer)
- Supplier Packaging Data
Sheet (as applicable)
- Certificate of Conformity
- Other documents – As per
Customer requirements (To
confirm with Launch
Manager / Customer
Specific Requirements)
(Refer to Table A)
- STFC
- Supplier Packaging
Data Sheet
- PPAP level 3 (Carry
over from other Methode
plant)
(Buyer)
(Buyer)
Customised Components
- STFC
- Supplier Packaging
Data Sheet
- PPAP Level 3
(AEROSPACE / AUTO)
- PPAP level 2 (NON
AUTO)
(Refer to Table A)
(Buyer)
Raw Materials
- Supplier Packaging Data
Sheet
(supplier format may be
allowed)
- PSW/Certificate of
Conformance
- Information Data Sheet
- Material Certificate
- IMDS (only if used for
Automotive)
(Buyer)
Receive Quotes
(Buyer)
Identify Potential Supplier to
award Business
(Buyer)
Risk Assessment & Kick-off
(Refer to PLP Phase 3: Gate
Review Checklist & Sign-off – LM)
Supplier Selection
(Buyer / STA)
Issue Supplier Nomination Letter
– G-MB 51
(Buyer)
Technical Design Review
(Core Team)
Issue P/O
(Buyer)
Monitor Project
(Buyer / STA)
Closure of Pending Issues before
PPAP Milestone
(Buyer / STA)
G-MQ 01
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Methode Electronics Inc.
SUPPLIER QUALITY MANAGEMENT
PROCEDURE
Issue No:
00
JULY ‘13
Date :
G-SOP 7-03
FLOWCHART ‘C’ – SUPPORT TECHNICAL DESIGN REVIEW MEETING
Organize & Support Technical Design review.
Resp. STA
Request a presentation from supplier highlighting
proposals which will be discussed during design review.
Supplier to submit G-MD92.
Resp. STA
Meet supplier and review design.
Follow checklist G-MD 92
Resp. Buyer (as needed), SQA, Product Development, ME
& Functional Safety Representative (as needed)
Is design
review concluded?
Are both parties in
agreement?
NO
Methode/ Supplier to review respective open
issues and aim to close issues before next
meeting.
Resp. Buyer (as needed), SQA, Engineer
Yes
Supplier to compile design review minutes using document
G-MD75.
Resp. STA
STA to distribute the design review document & G-MD92
to the team by e-mail.
Resp. STA
STA to ensure that the Design Review is signed /
approved
Resp. STA
Update drawings, sign Supplier Technical Feasibility Study
[STFC], approve Supplier Packaging Data Sheet [SPDS]
Resp. ME, STA, Product Development
STA to pass Technical design review document to Eng.
Manager for signature/electronic approval and file in
project folder.
Resp. STA
Issue Purchase order for tooling and PPAP parts.
Resp. Buyer
G-MQ 01
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Methode Electronics Inc.
SUPPLIER QUALITY MANAGEMENT
PROCEDURE
00
Issue No:
JULY ‘13
Date :
G-SOP 7-03
SUPPLIER MONITORING AND DEVELOPMENT
The STA shall monitor Supplier performance and calculate evaluation scorecards. This is
communicated to suppliers and Cross Functional Team.
Supplier Ranking:‘A’ Ranking – Outstanding Supplier. ‘A’ status gives a Supplier increased opportunity to quote
for new business over a ‘B’ rated Suppliers.
‘B’ Ranking – Good Supplier, Minor improvement may be requested from B rated suppliers
depending on findings/issues.
‘C’ Ranking – Unacceptable Supplier. ‘C’ rated Suppliers will be asked to submit a corrective
action plan which shall be listing all actions so as to ensure that the deficiencies that leaded to
negative rating will not be repeated. This shall be reviewed and accepted by Methode STA.
Unless this plan is received and accepted, a ‘C’ rated supplier shall not be allowed to quote for
new business.
Business on Hold (BOH) rated suppliers are managed through a Supplier Improvement Plan and
are not allowed quoting for new business until performance improves to ‘A’ or ‘B’.
If a supplier performance is repeatedly poor escalation procedure shown below is put in place.
‘C’ RATED SUPPLIERS – ESCALATION PROCESS
FLOWCHART ‘D’
Supplier Rating
(Quarterly)
A,B Rating
C / BOH Rating
‘A’ rated suppliers will be preferred
when awarding new business, no
actions are required from ‘B’ rated
suppliers
‘C’ or BOH?
‘BOH’ Rated
Review with Buyer and change
supplier status to ‘BOH’
Supplier to present a plan
of actions. Status ‘BOH’
‘C’ Rated
Supplier is to present a
plan of actions. Status
Amber.
4th Consecutive Negative
Rating
3rd Consecutive Negative
Rating
2nd Consecutive Negative
Rating
1st time negative rating
Critical review with
Purchasing Manager and
possible kick-off ‘Exit
Strategy’.
Critical review with
Purchasing Manager and
issue a concession signed
by QAM & Purchasing to
award new business to
Supplier
Was plan
concluded?
‘BOH’ Rated
Present rating
‘C’/BOH?
Yes
‘C’ Rated
No
Change supplier status to
Green
Yes
Was plan
concluded?
No
Supplier cannot be
awarded new business
until plan is concluded
Status Amber.
Time frame for closure of
issues within 3 Months
G-MQ 01
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Methode Electronics Inc.
SUPPLIER QUALITY MANAGEMENT
PROCEDURE
00
Issue No:
JULY ‘13
Date :
G-SOP 7-03
INCOMING PRODUCT CONFORMITY TO REQUIREMENTS
STA shall release components are per applicable divisional procedures. On release of the
components, the SQA shall inspect components as per applicable divisional procedures. If a
non-conformance to specification occurs, and these are determined to be significant in nature,
SQA will quarantine stock and issue a concern to the Supplier.
This is managed through an 8D report by SQA or Quality Engineering depending on Division
affected.
5
Associated Documents / Standards
Forms
Critical Design Review Checklist
Design Review Meeting Minutes
Request For Quotation Package
Supplier Nomination Letter
Supplier Packaging Data Sheet
Supplier Profile Document
Supplier Request for Design/Process Change Form
Supplier Technical Feasibility Commitment
6
Reference
No.
G-MD 92
G-MD 73
G-MB 100
G-MB 51
G-MW 133
G-MB 17
G-MB 35
G-MQ 54
Definitions
BOH :
Business On Hold
FOT :
First Off Tooling Parts
IGD :
Incoming Goods Department (Material Management & Logistics)
IGI :
Incoming Goods Inspection (Quality Assurance)
ISIR :
Initial Sample Inspection Report
ME :
Manufacturing Engineering
MM&L :
Material Management & Logistics Department
NDA :
Non Disclosure Agreement
PPAP :
Production Part Approval Process
RASIC :
Responsible - Approve - Support – Inform – Consul Chart
RFQ :
Request for Quotation
SPDS :
Supplier Packaging Data Sheet
STA :
Supplier Technical Assistant (Purchasing)
STFC :
Supplier Technical Feasibility Commitment
SQA :
Supplier Quality Assistant (Quality)
G-MQ 01
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