Sick USA
Supplier Handbook
A Supplier’s guide to working with SICK’s
Strategic Sourcing, Supply Chain and
Quality Departments
SICK, Inc.
6900 West 110th Street
Bloomington, MN 55438
Tel: 800-325-7425  Fax: 952-941-9287
Web site: www.sickusa.com
SICK Supplier
Handbook
An Open Letter to Suppliers of SICK:
How important are you? More than any other single factor, our company growth
and continued success are dependent upon our suppliers’ ability to provide quality
parts and timely delivery at a competitive price.
We recognize that customers and consumers have ever increasing expectations of quality
and performance from the products they purchase. With the help of our valued suppliers,
we are confident that we will meet and exceed these expectations. This Supplier
Handbook was created to clearly communicate what we consider to be an effective
SICK/supplier relationship.
This Supplier Handbook is intended to provide you with a resource that defines our
methods of interaction. It serves several purposes including the following:
 It gives you the method and criteria we use for selecting suppliers.
 It defines what we expect from our suppliers and what they should expect from
SICK
 It provides you with forms and instructions on how to respond to quote requests,
how to submit an Initial Product Acceptance Request and how to reply to a Supplier.
Corrective/Preventive Action Request.
 It explains how your performance will be monitored.
We believe that a formalized supplier support program will significantly reduce the
likelihood of poor communication, lack of information and inadequate controls which
typically result in problems. We also hope that this program will assist you with the
development of more robust controls and management tools that will serve other facets of
your business.
Please keep this document as a reference. Use it when you need guidance in responding
to any SICK inquiries. We encourage you to develop a supplier management program
based upon these principles to foster continuity throughout the supply chain. Please direct
any questions or suggestions about the content of this handbook to the SICK Strategic
Sourcing Manager, SICK Supply Chain Manager or the SICK Buyer whom you normally
deal with. We are looking forward to a long and mutually beneficial relationship.
Sincerely,
Jim Fredkove,
Supply Chain Manager
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Table of Contents
Section 1
SICK Company Policy Statements
Quality Policy  Vision Statement  Mission Statement  Ethics Statement
Section 2
SICK Expectations of its Suppliers
Purchase Orders  Quality Processes  On-time Delivery  Cost Containment
 Continual Improvement  Import/Export Compliance  Supplier Code of
Conduct
Section 3
Supplier Selection Process
Selecting Suppliers from Current Approved Supplier List  Selecting and
Auditing New Suppliers  Site Visits
Section 4
Responding to Requests for Quotations
Feasibility Reviews  Deviation Requests  Product Improvement
Recommendations
Section 5
How SICK Monitors Supplier Performance
Supplier Corrective Action Requests
Section 6
Responding to Supplier Corrective Action Requests
Manual or Electronic Response  Root Cause Analysis  Selecting the
Appropriate Action  Implementing the Action and Verifying the Action’s
Effectiveness Responding to a Request for Repair Quote (RFRQ)
Section 7
Submitting an Initial Product Acceptance Request (IPAR)
IPAR Cover Sheet  Sample Parts  Inspection and Test Data  Material
Analysis  Process Flow Charts  Process FMEAs  Control Plans 
Process Capability Studies  Gage Capability Studies  Packaging
Evaluation  Reference Samples
Section 8
SICK Owned Material, Tooling and Gages
SICK Owned Material  SICK Owned Tooling  SICK Owned Gages and Test
Equipment
Section 9
Packaging and Shipping
Packaging  Specifications and Banned Materials  Hazardous Materials 
Labeling  Freight Methods  Premium Freight Charges  Returning Goods 
Glossary of Terms
Suggested References
Attachments
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SICK Supplier
Company Policy Statements
Handbook
Section 1
SICK has developed these four statements to define the common values and focus of the
organization. We believe these statements to be the core of our business. As our supplier,
you should understand what we consider important. Please review them and compare
them to your organization’s philosophy. The ability of customers and suppliers to work
together is strongly influenced by how well their values coincide.
Quality/Environmental Policy:
SICK embodies quality in its commitment to completely satisfy the current and future
expectations of our customers.
SICK commits to comply with all standard requirements and continually improve the
effectiveness of the quality management system.
SICK is committed to continual improvement and the prevention of pollution through the
setting and reviewing of our environmental objectives and targets.
SICK commits to comply with all applicable environmental legislation and regulations and
Management ensures that all SICK, Inc. personnel have the awareness and skills to carry
out this policy and participate in the system.
Vision Statement:
SICK will be recognized as the LEADER for sensors, safety systems and auto identification
in the North American marketplace.
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Companies with sensor, safety systems and auto identification needs will think of SICK as
their first choice.
Our products will be state-of-the-art with capabilities beyond those of its competitors.
Product quality and reliability will be the industry standard.
Commitments made to customers will be met without exception.
Employees will take pride in their association with SICK and the contributions they make
toward its continuing success.
Mission Statement:
The Mission of SICK is to achieve business success by providing superior quality products
to companies with sensor, safety systems and auto identification applications.
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SICK will clearly define the sensor, safety systems and auto identification needs of the
marketplace and design and manufacture products to meet those needs.
Innovative management processes that assure consistent quality will be developed,
implemented and continually improved.
Emphasis will be placed on cost control and increased efficiency and profitability.
Suppliers will be required to provide the same level of quality, delivery and cost control that
SICK demands of itself.
SICK will be a responsible corporate citizen of the community by contributing to the local
economy and participating in business and civic activities.
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Ethics Statement:
SICK will be responsible for making business decisions that are compatible with the core
values of the SICK global organization, its employees and customers regarding Safety,
Superior Quality, Product Value, Customer Satisfaction, Respect for Individuals and the
Responsible Use of Resources.
The following questions will be asked when considering the ethics of a decision:
 It is unsafe or illegal for any stakeholders? (i.e. Employees? Company? Customers?
Community?)
 Is the quality of the product jeopardized?
 Would company resources be wasted or underutilized?
 Will commitments to customers be jeopardized?
 It is unfair or disrespectful to others?
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SICK Supplier
SICK’s Expectations of its
Suppliers
Handbook
Section 2
Customers define quality. As your customer, SICK has a responsibility to clearly inform
you of its needs and expectations. Effective communication between suppliers and
customers is essential to a mutually beneficial relationship. This Supplier Handbook
documents the general expectations for SICK suppliers.
Purchase Orders 
The purchase order and any referenced attachments will state the specifications of the
product or service that SICK needs. It will also state the date on which SICK needs to
receive the product or service. An example of a standard purchase order is attachment 2A.
Any questions that you may have regarding the content or attachments to the purchase
order should be immediately directed to the SICK Buyer who authorized (signed) the
purchase order. Purchase order information may be transmitted electronically via fax or email. Suppliers should have the capability to receive order information in either of these
formats.
Quality Assurance Processes 
Suppliers should have adequate processes in place to assure that they can meet SICK
expectations for product quality, on-time delivery, and other requirements specified in the
purchase agreement. Quality assurance practices should extend to all applicable business
functions including administration, human resources, sales, engineering, purchasing,
manufacturing, and quality control. Certification to the current version of ISO 9000 or a
related quality system standard will be recognized as evidence of implementing a quality
assurance system.
On -Time Delivery
Purchase orders will include a delivery date (date the material or service should be
received at SICK). By accepting a purchase order, the supplier agrees to meet the delivery
commitment. If a supplier is unable to meet a delivery commitment, the supplier must
immediately notify the Buyer at SICK. (A fax or e-mail directed to the Buyer is the preferred
method.)
Failure to meet delivery expectations will result in the issue of a Supplier Corrective Action
Notification, (see section 5). Failure to meet delivery requirements may result in
downgrading the supplier to a lower status or removing them from the Approved Supplier
List.
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Cost Containment 
Suppliers are expected to utilize appropriate controls that would allow them to operate at
optimum efficiency. By doing so, suppliers can be cost competitive in a free market
environment. Methods of cost control would typically include the following:
 Utilization of appropriate technologies
 Process controls that assure consistent quality
 Effective training and qualifying of employees
 Scheduling work for optimum utilization of resources
 Implementing lean manufacturing techniques
 Proactively pursuing continuous improvements throughout the company
 Measuring and monitoring costs, taking appropriate action in the areas of greatest
need
Continual Improvement 
Suppliers should incorporate a philosophy of continual improvement throughout their
organization. SICK defines continual improvement as those actions taken to improve
efficiency, reduce variation on critical product characteristics, eliminate risk to the
business, and produce a positive impact on business performance.
Continual improvement projects may be the output of strategic planning or product
development activities. Customer feedback, new technologies, benchmarking against
other successful methods and employee suggestions are also sources of improvement
ideas. Continual improvement projects should have measurable objectives and should be
evaluated to determine their overall impact on the business.
Import/Export Compliance
Currently SICK is in the process of obtaining C-TPAT certification (Customs-Trade
Partnership Against Terrorism) to strengthen our overall supply chain processes and
border security. Before any company can export production parts to SICK, the supplier
must first complete the SICK foreign manufacturer & supplier import compliance
questionnaire. The questionnaire will allow SICK to gain a preliminary understanding of
your export operations, compliance efforts to all U.S. export laws, regulations and related
records and to expedite an on-site supplier review. Your cooperation is appreciated.
SICK Supplier Code of Conduct
INTRODUCTION
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This Supplier Code of Conduct (“Code”) sets forth SICK’s desire to do business with those
suppliers, vendors, contractors and partners (collectively referred to as “Suppliers”) that
conduct business utilizing sound and responsible ethical, social and environmental
practices. SICK recognizes that there are different legal and cultural environments in which
Suppliers operate throughout the world. This Code sets forth the minimum requirements
that Suppliers must meet to do business with SICK.
For the Code to be successful, it is acknowledged that Suppliers should regard the code
as a total supply chain initiative. At a minimum, Suppliers shall require its next tier
suppliers to acknowledge and implement the Code. Fundamental to adopting the Code is
the understanding that a business, in all of its activities, must operate in full compliance
with the laws, rules and regulations of the countries in which it operates. The Code
encourages Suppliers to go beyond legal compliance, drawing upon internationally
recognized standards, in order to advance social and environmental responsibility. We
encourage our Suppliers to ensure that this Code is communicated throughout our supply
chain.
SICK realizes that Suppliers may need time to address areas in which they may not be in
compliance. We believe that compliance is best achieved through a process of continuous
improvement over a period of time.
Covered in this Code of Conduct:
1. Labor
2. Child Labor
3. Forced Labor
4. Wages and Benefits
5. Working Hours
6. Health and Safety Guidelines
7. Freedom of Association
8. Non-discrimination
9. Disciplinary Practices/Coercion
10. Environment Guidelines
11. Community Involvement
12. Ethical Standards
13. Conflicts of Interest
14. Communications
15. Audits
16. References
CODE OF CONDUCT
LABOR
Suppliers are committed to uphold the human rights of workers, and to treat them with
dignity and respect as understood by the international community.
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CHILD LABOR
Suppliers are prohibited from using workers under the legal age of employment in any
country or local jurisdiction where the Supplier performs work for SICK. If the minimum age
of employment is not defined, the minimum age of employment shall be 15 years of age. In
cases where minors are authorized to work, we expect our Suppliers to observe all legal
requirements, particularly those pertaining to hours of work, wages, minimum education
and working condition.
FORCED LABOR
SICK shall not tolerate the use of indentured, slave, bonded or other forced involuntary
labor by its Suppliers.
WAGES AND BENEFITS
Suppliers shall not pay less than the minimum wage in accordance with local laws or the
prevailing market, whichever is higher.
WORKING HOURS
Suppliers shall maintain reasonable employee work hours in compliance with local
standards and applicable national laws of the countries and regions in which the Supplier
does business. SICK requires Suppliers to comply with the statutory requirements for
working hours for employees. SICK will not use Suppliers that, on a regularly scheduled
basis, require employees to work in excess of the statutory requirements, unless those
employees are properly compensated as required by applicable law.
HEALTH AND SAFETY GUIDELINES
Suppliers must share SICK’s commitment to providing a safe and healthy workplace and to
treating employees fairly and in compliance with local laws. Health, safety and other
workplace standards must meet all local laws and safety regulations. Worker housing,
where provided, must meet the same standards for health and safety as those that apply in
the workplace.
FREEDOM OF ASSOCIATION
Participants are to respect the rights of workers as established by local law to associate
freely on a voluntary basis, seek representation, join or be represented by Work Councils,
and join or not join labor unions and bargain collectively as they choose. As provided by
law, employees who become worker representatives shall not be the subject of
discrimination and shall have access to management and coworkers in order to carry out
their representative functions. Workers shall be able to communicate openly with
management regarding working conditions without fear of reprisal, intimidation or
harassment. In saying that worker rights are to be respected as established or provided by
local law, what SICK means is that in countries that have legal systems that support those
rights, they are to be understood in the context of the definitions, conditions and
procedures that local law provides. However, basic worker rights to open communication,
direct engagement and humane and equitable treatment must be respected even in
countries where they are not given meaningful legal protection. Where worker
representation and collective bargaining are restricted by law, participants are to facilitate
open communication and direct engagement between workers and management as
alternative ways of ensuring that workers’ rights, needs and views are considered and
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acted upon appropriately and in good faith. Open communication and direct engagement
between workers and management is the most effective ways to resolve workplace and
compensation issues.
NON-DISCRIMINATION
SICK believes that all terms of employment should be based solely on an individual's
ability to do the job. SICK requires its Suppliers to uphold a commitment to basic principles
of human rights. This means that Suppliers should not discriminate against employees in
hiring, promotion, salary, performance evaluation or any other term or condition of work, on
the basis of race, color, national origin, gender, gender identity, sexual orientation, religion,
disability, or any other basis prohibited by law in the applicable jurisdiction.
DISCIPLINARY PRACTICES/COERCION
SICK firmly believes that everyone should be treated with dignity. Suppliers shall not inflict
or threaten to inflict corporal punishment or any other forms of physical, sexual,
psychological or verbal abuse or harassment on any employees.
ENVIRONMENTAL GUIDELINES
SICK will actively seek Suppliers that share our commitment to protecting the environment.
Suppliers shall abide by all federal, state and local environmental laws. SICK shall favor
Suppliers that work to sustain, protect and restore the environment, by such means as
energy conservation, recycling and proper disposal of waste, as well as by environmental
restoration.
COMMUNITY INVOLVEMENT
SICK seeks to work with Suppliers that partner with local governments and communities to
improve the educational, cultural, economic and social well-being of the communities in
which they live and serve.
ETHICAL STANDARDS
SICK seeks to identify and partner with Suppliers that aspire to conduct of all their
business following a set of ethical standards not incompatible with our own. SICK’s ethical
standards are embodied in the company's Ethical Conduct Policy and noted in our
Supplier Handbook.
CONFLICTS OF INTEREST
Suppliers may not give SICK employees a gift of value in excess of US$100 and may not
bribe foreign officials or any other parties to benefit the Company, its employees or its
business.
COMMUNICATION
Suppliers are encouraged to take appropriate steps to ensure that provisions of this Code
are communicated to their employees and throughout their own supply chain. Suppliers
are also encouraged to ensure that the principles referred to above are adopted and
applied by their employees, suppliers, agents and contractors as far as reasonably
possible.
AUDITS
Each Supplier should conduct audits and inspections to insure their compliance with this
Code and applicable legal and contractual standards. SICK reserves the right, as a
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condition of continuation of approval, to conduct (or have its designee conduct) periodic,
unannounced inspections of Suppliers and their facilities and business practices to verify
compliance with these standards. The business relationship with SICK is strengthened
upon full and complete compliance with the Code and the Supplier's agreements with
SICK.
REFERENCES
The following standards were used in preparing this Code and may be a useful source of
additional information. The following standards may or may not be endorsed by each
Supplier.
ILO International Labor Standards
www.ilo.org/public/english/standards/norm/whatare/fundam/index.htm
National Fire Protection Agency
www.nfpa.org/catalog/home/AboutNFPA/index.asp
OECD Guidelines for Multinational Enterprises (Organization of Economic Cooperation &
Development)
www.oecd.org
United Nations Convention Against Corruption
www.unodc.org/unodc/en/crime_convention_corruption.html
United Nations Global Compact
www.unglobalcompact.org
Universal Declaration of Human Rights
www.un.org/Overview/rights.html
ISO 14001
www.iso.org
SAI
www.sa-intl.org
Ethical Trading Initiative
www.ethicaltrade.org/
OHSAS 18001
www.bsi-global.com/index.xalter
Eco Management & Audit System
www.quality.co.uk/emas.htm
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SICK Supplier
Supplier Selection Process
Handbook
Section 3
SICK is interested in developing synergistic relationships with its suppliers. It is important
that SICK and its suppliers are the right “fit” for one another. This section defines the
process that SICK uses to pre-qualify its suppliers.
Approved Supplier List
SICK purchasing will maintain an Approved Supplier List. The approved suppliers on this
list will be offered Requests for Quotations and Purchase Orders for all critical goods and
services needed by SICK. These suppliers will be placed into one of three categories,
Primary, Secondary or Probationary. They are defined as follows:
Primary Suppliers are suppliers that have a proven record of quality and delivery
performance. These suppliers will have preferential status when seeking sources for new
products or services.
Secondary Suppliers are suppliers that have provided goods or services in the past, but
have not met expectations for cost, quality or delivery. Secondary suppliers would only be
used if more viable sources are not available.
Probationary Suppliers are suppliers that are temporarily approved such as new
suppliers or suppliers with unproven or suspect performance. When probationary
suppliers have effectively demonstrated their ability to meet expectations, their status will
be upgraded to either primary or secondary suppliers. Repeated non-performance will
result in a supplier being downgraded to an unapproved list.
SICK purchasing will periodically review its supplier’s performance to update their supplier
status. Supplier Corrective Actions will be assessed as part of this review process.
Selecting Suppliers 
The Strategic Sourcing Manager has the overall responsibility for selecting suppliers for
new and critical components.
Buyers will select suppliers from the Approved Supplier List by considering the following
factors:
 Current status on Approved Supplier List
 Previous product quality, on-time delivery and customer service performance
 Competitive pricing
 Capacity and capability (based upon Feasibility Review Form, Supplier Survey, etc.)
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Handbook
Proximity to SICK, if required
Support for continual improvement
Customer contract mandates (i.e. customer pre-approved sourcing, requirement to use
minority owned suppliers, etc.)
Adding New Suppliers
All new suppliers will be asked to complete and return a Supplier Survey as a prerequisite
to doing business with SICK (attachment 3A-1). Depending upon the critical nature of the
material or service being supplied, new suppliers will also be evaluated by a team led by
the Strategic Sourcing Manager using any or all of the following types of information:
 Quotation content and competitive pricing
 Returned supplier survey
 Evidence of quality system certification by an accredited registrar
 Results of on-site technical assessment
 Referrals from customers or other businesses
A new supplier will typically be assessed on a trial basis. They will have Probationary
status on the Approved Supplier List for a minimum of one year.
Site Visits
SICK may wish to send a representative to the supplier’s facility to either verify purchased
material or evaluate the quality management system. Suppliers should comply with
requests for visits.
Verification of product by SICK at the supplier’s facility does not relieve the supplier of
future accountability for product quality.
Purchasing and quality system assessments will typically address the questions asked in
the Supplier Survey (attachment 3A-2 and 3A-3). Suppliers will be asked to provide
evidence to support the answers to survey questions.
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SICK Supplier
Responding to Requests for Quotations
Handbook
Section 4
Formal quotations will be requested from qualified suppliers on all higher volume parts,
critical components and services. (See attachments 4A1 and 4A2.) The purpose of RFQs
is to solicit cost and the most current supplier information that will aid in the selection of
suppliers for specific jobs. When responding to RFQs, suppliers are encouraged to make
suggestions that would add value or reduce cost without jeopardizing quality or delivery.
Requests for Quotations will be initiated through SICK’s strategic sourcing (for all new
parts) or supply chain (for many existing parts) departments. RFQs will make reference to
the specific part or service needed and the quotation quantities. All drawings and
supplemental materials will have a revision level or date of issue for traceability purposes.
Feasibility Reviews
For critical parts or services, the supplier may be asked to submit a Feasibility Review
Form with the quotation. (See attachment 4B.) The purpose of the Feasibility Review Form
is to confirm that the supplier has both the capability and capacity to meet the
requirements of the job. The Feasibility Review should be completed as a team with inputs
from representatives of the supplier’s sales, engineering and product realization functions.
The names of the contributors and the signature of the individual approving the quotation
should appear on the Feasibility Review Form.
Deviation Requests
Should suppliers need a deviation from the specified requirements of the RFQ, they will
need to clearly document the request. (Requests for deviations might include relaxing a
tolerance, or pushing out a lead time.) All documented requests should clearly state the
details of the deviation (i.e. with a marked up drawing), and reference the RFQ number.
Include the name of the supplier representative who is most familiar with the deviation
request. Deviation requests should be made as far in advance of the RFQ response
deadline as possible.
Product Improvement Recommendations
Suppliers are encouraged to suggest product design changes that could reduce the price
or improve the quality of the item being purchased. The process for making suggestions is
the same as the Deviation Request defined in the previous paragraph. Supplier
involvement in SICK’s continual improvement program will be considered when placing
new business.
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SICK Supplier
How SICK Monitors Supplier
Performance
Handbook
Section 5
SICK Supply Chain will monitor the performance of its key suppliers. The characteristics
that will be monitored are as follows:
 Product Quality - the ability of a product or service to meet specified requirements
such as dimensional specifications or performance expectations
 On-time Delivery - the arrival at SICK of purchased products or services on or
before a designated date
 Customer Service - the ability of a supplier to meet unspecified requirements such
as accurate invoicing, continuous improvement support and quick response to
changes or SICK concerns
Supplier Corrective Action Requests (SCARs)
Supplier Corrective Action Requests are a formal method of addressing more serious
concerns. They will be issued when unacceptable conditions occur such as the rejection
of a part by SICK or by a SICK customer due to non-compliant specification, or a late
shipment of a part to a SICK customer.
Suppliers are required to document the action taken on the SCAR (Supplier Corrective
Action Request) form which is attachment 5B-2. SCARs will be tracked by Purchasing
and reviewed at least annually to determine the supplier status. Section 6 of this manual
describes how SCARs will be processed.
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SICK Supplier
Responding to Supplier Corrective Action
Requests
Handbook
Section 6
In the event that SICK should experience a problem that is caused by a supplier, the
following system allows for the formal resolution of the problem.
Manual or Electronic Response
SICK’s Supplier Corrective Action Request (SCAR) program is managed in a computer
data base. Company’s with the ability to receive electronic messages through Microsoft
Outlook, can receive SCARs via e-mail.
For companies who cannot receive information via e-mail, other options are available.
Hard copies of SCARs may be faxed or mailed to the supplier’s site. The supplier will
complete the action required and return the form to the SICK Buyer using the same
process.
SCAR Format
The SCAR form has 3 sections. (See attachment 5B-2):
The FIRST section is filled out by the SICK employee who initiates the SCAR. It will
include the CAR control number and the specific nature of the complaint. A reference to
the appropriate specification or standard is also recorded.
The SECOND section will be completed by the supplier, who will determine the root
cause, the action that will be taken to prevent this and similar problems in the
future, and the date that the action will be implemented. When section two is
completed, the supplier should sign the form and return it to the SICK Buyer. (The
supplier should keep a copy of the SCAR for their internal records.)
The THIRD section will be completed by SICK. The supplier may be asked to produce
objective evidence that the root cause of the problem has been eliminated. A
representative of SICK may request to visit the supplier’s site to audit and close out the
corrective action.
Root Cause Analysis 
When
responding to corrective actions, suppliers must first determine the root cause of the
NOTE: It is sometimes easy to confuse a symptom of the problem with the cause of a problem.
problem.
This “operator
is the fundamental
thecause
problem
For example,
error” is notreason
typicallythat
a root
of a occurred.
problem. Inadequate training,
which led to the operator error, would be a more acceptable root cause.
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When a nonconformance occurs, the root cause will usually fall into one or more of the
following three categories:
 The expectation for acceptance was not fully communicated or understood.
 Adequate resources (i.e. material, qualified personnel, capable processes,
equipment, time, etc.) were not available.
 There was insufficient motivation. (low priority or lack of concern)
When determining the root cause, ask “why” until you have reached the most basic
answer. Remember that the effectiveness of the corrective action will be determined by
how well it eliminates the root cause of the problem.
Selecting the Appropriate Action
When selecting the action that will be taken, consider all possibilities. Inputs from different
people and perspectives may be helpful with identifying options. Take into account other
areas where similar problems could occur. To test your solution, you should be able to
answer the following questions with “yes”:
 Will the root cause of the problem be eliminated as a result?
 Will your solution prevent the recurrence of the problem in all applicable areas?
 Is there a way to verify that the solution is working?
 Does the solution consider possible negative impact in other areas?
 Are there sufficient resources to implement the solution?
 Can the solution be implemented in a timely manner? (If not, are there interim
quality controls in place?)
Implementing the Action and Verifying the Action’s Effectiveness 
When implementing a corrective action, make certain that all persons involved are aware
of the action being taken. Provide training as needed. Set deadlines for implementation
and follow-up. There should be some measurable impact as a result of implementing a
corrective action. Keep records of the activity. (The completed SCAR can be the record.)
To verify that the action was effective, determine if the root cause of the problem was
eliminated. Although it is not commonly done, for serious issues a SICK representative
may audit corrective actions at the supplier’s site to confirm that the cause of the problem
has been eliminated.
Responding to Request for Repair Quote Requests (RFRQ)
In the event SICK or an end user desires to have a supplier-provided out-of-warranty
product repaired, SICK may request a supplier quote on repairing a part. This request
(attachment 6A) will be issued to the supplier, who will complete the requested information
and return it to the Buyer.
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Submitting an Initial Product Acceptance
Request (IPAR)
Handbook
Section 7
SICK may request from its primary suppliers evidence that they have systems in place to
assure the following:
 consistent product quality
 the ability to provide quantities needed
 on-time delivery
 accurate methods of verification
 process capability and stability
This process is reserved for critical parts that are essential to SICK’s product quality. The
amount and type of information needed is relative to the quantity, importance and
sophistication of the items being supplied. Standard items such as fasteners, adhesives,
and cable wires, etc. will typically not require any IPAR submissions.
When submitting IPAR information, it is important that the supplier maintains a record copy
of the submission information for at least one year.
IPAR Cover Sheet
The IPAR cover sheet is attachment 7A. IPAR information will typically be requested with
prototype or pre-production parts submissions. When requesting IPAR information, SICK
will provide the supplier with an IPAR cover sheet indicating what items need to be
submitted. When the IPAR information and parts are submitted, this sheet should be filled
out completely and signed. The supplemental information requested on the IPAR should
be included in the packet. If sample or prototype parts are requested, the IPAR packet
should be submitted with the parts.
Sample Parts, Inspection and Test Data
Some contracts will require the submission of prototype parts or parts that have been
manufactured using the intended production process. When that is the case, the supplier
will be asked to evaluate the parts prior to submission. This evaluation will include a check
of all dimensions and characteristics on the part drawing. The results of the inspection will
be recorded on the Inspection and test data sheet, which is attachment 7B. The form
should be filled out completely and signed by the inspector.
Some parts may need to be functionally tested for approval. Results of functional tests will
be recorded using the same form. (Test data may be attached to the form as an exhibit.) If
testing is performed by a subcontracted laboratory, the results should be submitted with
this form.
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Material Analysis
Sometimes special materials may be designated for unique product applications.
Specifications for this material will be indicated on the drawing. SICK Engineering may
require a material analysis from the material supplier. This analysis should be performed
by an independent laboratory that can provide evidence of compliance with the ISO/IEC
17025 standards.
Process Mapping (Flow Chart)
A process map graphically represents the series of specific tasks that will be carried out for
product realization. A process map may be used to plan and understand the relationship of
functions in a complex system. SICK may request a process map if it needs assurances
that the supplier has thoroughly planned for the manufacture and verification of a product.
Attachment 7C explains the guidelines for creating process maps. When completed,
process maps may be used to develop Control Plans or Process FMEA’s, which are
defined in the next section.
Process FMEAs
Process Failure Mode and Effect Analysis (PFMEA) is a method of identifying potential
risks and determining the current level of importance for each risk. The outcomes of a
PFMEA are preventive actions taken to eliminate or reduce the exposure to risk.
PFMEAs begin with the manufacturing process steps and determine the risks that could
occur at each step. This is typically done by a cross-functional group of people
representing all relevant disciplines (i.e. sales, engineering, manufacturing, etc.). At each
step, potential failures are listed and their probable causes and results are determined.
Each “failure mode” is evaluated in terms of its severity, frequency of occurrence, and the
probability that it will be detected before the problem occurs.
By assigning a value from one to ten (one is the lowest and ten is the highest) for the
severity, frequency of occurrence, and detectability, and multiplying these three numbers
together, a Risk Priority Number (RPN) is calculated. The highest RPNs identify those
risks where the supplier should take appropriate preventive action. Preventive actions are
the measures taken to reduce severity, reduce frequency of occurrence, or increase the
likelihood of detectability. The format for creating a PFMEA is attachment 7D-1. A matrix
with guidelines for assigning PFMEA values is attachment 7D-2.
Control Plans
Control plans are documents that communicate all relevant information about the
manufacture and verification of a product. These are living documents and will be revised
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when process changes are made. Control plans should be reviewed by relevant functions
within the organization and approved for use. The control plan should include as a
minimum the following contents:
 Part name / number
 Part drawing and revision level
 Name of person authorizing the plan and the date of last release
 Process steps in chronological order
 Characteristic achieved and acceptance criteria (indicate critical product
characteristics)
 Method of verification
 Frequency and sample size
 Process control method
 Reaction plan if characteristic is not achieved
Copies of control plans and evidence of their use should be made available to SICK if
requested. An example of a control plan is shown in attachment 7E.
Process Capability Studies
Process Capability Studies are performed to determine the accuracy and consistency of a
controlled and stable process. Some degree of variation occurs naturally in every process.
This is not necessarily a bad thing. (What would happen if all the kernels of popcorn
popped at exactly the same time?) Most processes, however, need some level of control to
assure that outcomes are within acceptable tolerances. Process Capability Studies are
appropriate for critical parts, which are produced in high volume by a standard process. It is
important to SICK and its customers that suppliers consistently provide products that fall
well within the limits of acceptability. This is especially true of critical product features.
Of course SICK’s expectation of its suppliers is zero defects. However, quality problems
can occur even when the process is reasonably controlled. To understand process
capability, sufficient amounts of data must be gathered and analyzed. Attachment 7F
provides a Mil specification table that shows a statistically valid sample size for various lot
sizes. Use this table to determine the number of measurements needed to provide
reasonable assurance that the results of verification will be representative of all parts.
To determine process capability, there is a mathematical formula that calculates a value
known as a CPK or Process Capability Index. A CPK index of greater than 1.3 is usually
considered adequate except for products that impact on safety or adds significant cost.
Many simple statistical software programs exist to calculate CPK after the inspection data
has been entered. For help in calculating a process capability index see attachment 7G.
Gage Capability Studies
It is important to have accurate and reliable measuring and test equipment in order to have
confidence in the information that it provides. To determine how effective a measurement
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method is, a study can be conducted. Sometimes called a Gage R&R (Repeatability and
Reproducibility) Study, this process considers normal variation in both the measuring
equipment and the operator. Directions for conducting a gage R&R Study are documented
in attachment 7H.
Packaging Evaluation

It is important that products are protected from loss or damage while in transit to SICK.
Therefore, packaging integrity is given the same priority as product quality. The following
guidelines should be considered when developing product packaging:
 SICK specifications for packaging will be followed (see section 9 of this handbook)
 Items will be given sufficient protection from damage while being transported.
 Packages will be given appropriate labels to assure proper delivery.
 The content of packages will be identified on attached paperwork, (packing slip).
 Antistatic packaging will be used when appropriate.
In some cases, suppliers may be asked to sample or test packaging to determine if it is
acceptable. SICK will provide acceptance criteria in these cases.
Reference Samples
Suppliers may be asked to retain reference examples from the first accepted production
run. A SICK representative will typically sign the parts and return them to the supplier for
this purpose. Reference parts should be maintained by the supplier in a secure storage
area for the life of the product, unless specified otherwise by SICK.



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SICK Owned Materials,
Tooling and Gages
Handbook
Section 8
This section summarizes the responsibilities for proper storage, care and use of SICK
owned property while it is in the possession of a supplier. (For exact details and
obligations, see the terms and conditions pages attached to each purchase order.)
SICK Owned Material
If SICK supplies material that is to be incorporated into the product by the supplier, the
supplier should verify the condition of the material when it is received. Any concerns
should be discussed with SICK purchasing immediately.
Upon receipt, the supplier will be responsible for properly identifying the material with
traceability to SICK. It is to be stored in a manner that will protect the material from loss or
damage. Should loss or damage occur beyond what would normally be acceptable, the
supplier will report the loss / damage to the SICK purchaser who will provide disposition
instructions.
SICK Owned Tooling
Tooling that is owned by SICK and used by the supplier will be identified with the SICK
name and if appropriate, the part number(s) for which it is used. Tooling will be maintained
by the supplier. Should the tooling break or begin to show signs of wear that would impact
quality, the SICK Buyer should be notified immediately.
SICK Owned Gages and Test Equipment
Gages or test equipment that are owned by SICK and used by the supplier will be
identified with the SICK name and if appropriate, the part number(s) for which they are
used. Verification equipment will be stored in a manner that will protect it from loss or
damage.
SICK is responsible for the calibration of this equipment and it will be marked with a label
indicating when recalibration is due. This label is not to be removed. Should the supplier
have cause to think that the gage is not providing accurate information, the quality function
at SICK should be notified immediately and any material measured with this equipment will
be marked and segregated. It must be verified with capable equipment to existing
acceptance criteria before it can be released to SICK.
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Packaging and Shipping
Handbook
Section 9
Packaging
To ensure that materials arrive in a safe and usable condition, it is imperative that they are
packaged and identified correctly.
Specifications and Banned Materials
ESD Precautions- Items that are affected by static electricity such as PC boards must be
shipped in anti-static bags or containers. Bubble wrap is the preferred method of shock
protection for electronic components. Biodegradable materials or other packing materials
that can crumble or decompose should not be included in the same containers with PC
boards.
Weight and Access- When possible, the weight of the loaded container should not
exceed 60 pounds. Containers exceeding 60 pounds should be placed on a skid of some
fashion to allow for access by a forklift or hand truck.
Packing Materials- There are no banned packaging materials, other than those mentioned
in ESD Precautions above. However, we would prefer that, whenever possible, suppliers
use recyclable materials such as paper and pulp-based products or certain plastics.
Individually packaged products that will be forwarded to a SICK customer in the same
container should be shipped in a separate outer container. Adhesive packing slip envelops
or adhesive shipping labels may only be placed on the outer container.


Hazardous Materials

If materials that are designated by OSHA as hazardous are shipped to SICK, the supplier is
responsible for providing packaging and labeling in compliance with regulatory
requirements. Material Safety Data Sheets (MSDSs) must be provided to the SICK Safety
Compliance Manager.

Labeling

Shipping labels on containers should clearly state the SICK address as listed on the
purchase order. SICK does NOT have an active Post Office box.
Regardless of the method of delivery, all products shipped or delivered to SICK should have
packing information indicating the type and quantity of the items shipped. The packing slip
will also reference the SICK Purchase Order number.
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Freight Methods

SICK receives parcels and containers via UPS, FedEx, DHL, US Postal Service or standard
motor freight companies. If SICK does not prescribe a specific carrier, the supplier is
expected to select a reputable shipping company with systems in place for traceability, if
needed. SICK has an elevated receiving bay for unloading larger containers.
It is assumed that all supplied items will be shipped FOB at the supplier’s site. The supplier
must be able to provide SICK with appropriate shipping information if it is necessary to track
an order. SICK will be responsible for claims against shippers.

Premium Freight Charges

If a supplier expects to miss a shipping deadline, the supplier should notify SICK purchasing
as soon as possible. If the need is urgent, the supplier will be responsible for expediting the
shipment at its expense. If SICK requests that a shipment date be moved up, it will be
responsible for any premium freight charges. Suppliers will have the means to track
premium freight costs. This information should be made available to SICK, if requested.

Returning Goods

SICK typically receives shipments without performing an incoming inspection or evaluation
other than verifying kind, count and condition. Items will be kept in a hold condition until they
have been verified and placed into inventory. Parts may be rejected at any time, if they are
found to be deficient. Should this occur, SICK purchasing will advise the supplier and
corrective measures will be initiated.
SICK reserves the right to reject an entire lot of parts if a portion of that lot is found to be
defective.
If parts are returned to the supplier for credit, rework or replacement, SICK will comply with
any supplier return goods authorization procedures. If the supplier does not have a formal
material return process, SICK will package, label, and return the product in a manner that it
determines is appropriate. A formal Supplier Corrective Action may also be issued to the
supplier. (See section 6 of this manual.)
Any questions about returned product should be directed to SICK purchasing or the Quality
Manager.
The supplier will be responsible for the cost of any rework or sorting that is the result of not
meeting specified requirements. If it is agreed that this work will be performed by a SICK
employee, it will be billed at a standard rate of $35 per hour.
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Glossary
Audit
A survey of an area or element of a standard for the purpose of determining
conformance to requirements.
Assessment
A complete analysis of a management system to determine its overall compliance
to requirements.
Capability
The ability to provide a product or service that will meet expectations for
performance and reliability.
Capacity
The ability to meet volume and on-time delivery expectations.
Concession
The authorization to use or release a limited quantity of products, material,
components already manufactured but not complying with the specified
requirements.
Contract
A documented statement of agreed requirements, needs and expectations
between two parties in a customer - supplier relationship, usually a purchase order.
Continuous Improvement
Modifications to processes or equipment that will increase the quality,
efficiency or effectiveness.
Corrective Action
The action taken to eliminate the root cause of an existing nonconformance.
CPC
A Critical Product Characteristic is a feature that is important to the fit, function
and safety of the product. It may be designated on the drawing with a special
symbol or notation. CPCs are usually monitored during production to determine the
ongoing acceptability of products.
Customer Supplied Property Any product, material, tooling, or packaging that is supplied by a customer to a
supplier for incorporation into a product or otherwise used to process or ship
products.
Document (noun)
Written or electronically communicated information, which provides guidelines and
references to assist in the performance of a task. (i.e. work instruction, drawing,
engineering standard, etc.) Controlled documents are authorized for use and
are part of a document distribution system that assures that the appropriate
documents are available to those who need them.
First Article Inspection
The complete inspection and functional test of a product or prototype that is being
manufactured for the first time.
IM&TE
Inspection Measuring and Test Equipment
Management Review
An official assessment of the effectiveness of the quality by senior management.
Material Control
The management and handling of raw materials, components, work in process and
finished goods.
Nonconformance
A deficiency in characteristic, documentation, or process implementation that
renders the quality of a product or activity unacceptable or indeterminate.
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Objective evidence
Physical or recorded proof that a condition exists
Preservation
Maintaining the quality of the product, avoiding deterioration.
Preventive Action
Action taken to anticipate the possibility of a nonconformance or malfunction and
then taking the appropriate steps to prevent its occurrence.
Procedure
A document that specifies or describes how an activity is to be performed.
Product
A deliverable such as an item or a service that is the output of process.
Purchasing
The function of the organization that is responsible for the procurement of goods
and services.
Quality
A value placed on a product or service relative to how well it meets expectations.
Quality Manual
A document setting out the general quality policies, procedures of an organization.
Quality Plan
A document derived from the quality program which defines the tasks, resources
and verification activities necessary to meet the requirements of a specific
customer contract or project.
Quality System
The components of an organization that work together to assure that
customer expectations and business objectives can be met in an effective
manner.
Quotation
A formal proposal (tender) stating price, terms and conditions of
deliverables.
Record
Historic evidence that something was done. Records provide information,
which can be used to make business decisions. They provide traceability of
issues and they are objective evidence of compliance or noncompliance to
documented policies and procedures.
RFRQ
A Request for Repair Quote Request is issued to suppliers to address an
end user’s need to repair a product no longer under supplier warranty. It
requires a formal response.
SCAR
A Supplier Corrective Action Request is issued to suppliers to address a
nonconformance to specified requirements in the purchase agreement. It
requires a formal response.
Statistical Technique
A method of organizing and analyzing data to better understand
performance.
Traceability
The ability to relate a specific product or activity to relevant data.
Note: Many other Quality Related Terms can be found in:
Section 3: Terms and Definitions.
ANSI/ASQ Q9000-2000,
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Suggested References
ANSI/ASQ Q9000: 2000,
source: ASQ Publications (ph. 1-800-248-1946)
ANSI/ASQ Q9001: 2000,
source: ASQ Publications (ph. 1-800-248-1946)
ANSI/ASQ Q9004: 2000,
source: ASQ Publications (ph. 1-800-248-1946)
The Quality Toolbox by Nancy R. Tague
source: ASQ Publications (ph. 1-800-248-1946)
Lean Manufacturing for the Small Shop by Cary Conner,
source Society of Manufacturing Engineers (ph. 1-800-733-4763)
ISO 9000:2000 for Small and Medium Sized Businesses by Herbert C. Monnich Jr.
source: ASQ Publications (ph. 1-800-248-1946)
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Attachments:
2A
Example of SICK Purchase Order
3A-1 Supplier Survey – Inventory Items
3A-2 Supplier Assessment w/ Scoring
3A-3 Supplier Technical Evaluation Process
4A-1 Request for Quotation Form – Step 1
4A-2 Request for Quotation Form – Step 2
4B Feasibility Review Form
5A Supplier Corrective Action Request (SCAR)
6A Supplier Request For Repair Quote Form
7A Initial Product Acceptance Report (IPAR)
7B Inspection and Test Data Sheet
7C Guidelines for Flowcharting
7D-1 Process Failure mode and Effect Analysis
7D-2 Matrix for Assigning PFMEA values
7E Example of Control Plan
7F Mil Spec Sample Table
7G Process Capability Study Guidelines
7H Gage R&R Study Guidelines
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