Supplier Quality Requirements Number L1-743I003/02 Document Name Supplier Quality Requirements 3...

Document Number: L1-743I003/02

Supplier Quality Requirements

Author / Lead Supplier Quality Engineer Michael Stein

Director of Supply Chain Andrew Toache

Senior Director of Production & Supply Chain Andy Short

Non-ITAR Notice: This document contains no technical data subject to the EAR or the ITAR.

Document Number L1-743I003/02

Document Name Supplier Quality Requirements

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Revision History

Revision Date Change

01 05/09/2017 Initial release

02 06/16/2017 Updates to SQC Numbering and Shelf Life Requirements



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Contents 1 Supplier Quality Policy ........................................................................................................................... 5

2 Quality System Requirements ............................................................................................................... 5

3 Supplier Approval .................................................................................................................................. 6

4 Sub-Supplier Management .................................................................................................................... 7

4.1 Procedure ...................................................................................................................................... 7

4.2 Flow Down of Requirements ......................................................................................................... 7

5 Advanced Product Quality Planning (APQP) .......................................................................................... 7

6 Production Part Approval Process (PPAP) / First Article Inspection (FAI) .............................................. 8

6.1 When a PPAP/FAI Submission is Required ..................................................................................... 8

6.2 Criticality Level and Document Requirements .............................................................................. 8

6.3 Documentation Submission Requirements and Descriptions ....................................................... 9

6.3.1 Criticality Level 1 Material ..................................................................................................... 9

6.3.2 Criticality Level 2 and 3 Material ........................................................................................... 9

6.3.3 Proprietary Documentation ................................................................................................... 9

6.3.4 Quality Clause Descriptions ................................................................................................... 9

6.4 Product Specific Inspection (SQC7) and Functional Testing (SQC15) Requirements ................... 12

6.4.1 Printed Circuit Board Assemblies and Electronic Devices .................................................... 12

6.4.2 Electromechanical Devices .................................................................................................. 13

6.4.3 Wiring Harnesses ................................................................................................................. 13

6.4.4 Pneumatic and Hydromechanical Devices ........................................................................... 13

6.4.5 Mechanical Devices ............................................................................................................. 13

6.5 PPAP Approval Definitions ........................................................................................................... 13

6.5.1 Full PPAP .............................................................................................................................. 13

6.5.2 Interim PPAP ........................................................................................................................ 13

6.5.3 Rejected PPAP ..................................................................................................................... 14

7 Supplier Request for Deviation from Requirements ............................................................................ 14

7.1 Situations Where a Deviation May Apply .................................................................................... 14

7.2 Method for Requesting a Deviation ............................................................................................ 14

8 Proof of Capacity ................................................................................................................................. 14

8.1 Purpose ....................................................................................................................................... 14

8.2 Method ........................................................................................................................................ 15

8.3 Duration ...................................................................................................................................... 15



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8.4 Timing .......................................................................................................................................... 15

8.5 Approval ...................................................................................................................................... 15

8.6 Corrective Action ......................................................................................................................... 15

9 Non-Conforming Material ................................................................................................................... 15

9.1 Method ........................................................................................................................................ 15

9.2 Third Party Certification .............................................................................................................. 16

9.3 If The Supplier is Aware of a Non-Conformance ......................................................................... 16

10 Other Requirements ........................................................................................................................ 16

10.1 Design Changes ........................................................................................................................... 16

10.2 Product Obsolescence ................................................................................................................. 17

10.3 Record Retention ........................................................................................................................ 17

10.4 Material Traceability .................................................................................................................... 17

10.4.1 Responsibilities .................................................................................................................... 17

10.4.2 Raw Materials ...................................................................................................................... 17

10.4.3 Critical Components ............................................................................................................ 17

10.5 Shelf Life ...................................................................................................................................... 17

10.6 Prevention of Use of Counterfeit Material .................................................................................. 17

10.7 Protection of Electrostatic Discharge (ESD) Sensitive Material ................................................... 18

10.8 Part Marking ................................................................................................................................ 18

10.8.1 Criticality Level 3 Product .................................................................................................... 18



11 Supplier Scoring ............................................................................................................................... 18

12 Supplier Development ..................................................................................................................... 18

12.1 Program Description.................................................................................................................... 18

12.2 Critical Suppliers Audit ................................................................................................................ 18

13 Acronyms and Definitions ............................................................................................................... 19

14 Reference Documents ..................................................................................................................... 19



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1 Supplier Quality Policy At Virgin Orbit, we are dedicated to our mission of opening up space to everyone. Going to space is not an

easy task and we cannot do it alone. Our intent through the supplier quality process is to develop long term

and mutually beneficial relationships with our suppliers to enable us to be successful in reaching our

mission. Thus, our Supplier Quality Policy (SQP) is a combination of the following significant factors:

A Drive to Zero Defects and 100% On-Time Delivery

- A commitment to ship defect free product, with 100% on time delivery.

Quality System Based on Prevention of Defects

- Emphasis will be on the prevention of defects throughout the supply chain as our primary method

of ensuring quality.

Open and Honest Communication

- Our supplier will share all contributing factors that impact our relationship: Cost, Timing, Quality,

and Delivery.

Accountability

- We expect our supplier to take accountability for all factors that impact our products.

Continuous Improvement

- Virgin Orbit and its suppliers will share a desire to learn and have a commitment to continuous

improvement in all aspects of the business.

2 Quality System Requirements We recognize that there are multiple relevant worldwide business system standards and certifications such

as AS9100, TS16949, NADCAP, ISO9001, and SMC-S-003. We expect our suppliers to have policies,

procedures, and work practices in the following areas, at minimum:

1) Process to Identify and Review Product Requirements

a. Understand special requirements and how the product will be used.

b. Review requirements, and maintain records of reviews.

2) Control Changes in Product Requirements

a. An established engineering change process (includes hardware and software).

3) Process and Product Monitoring and Measurement

a. When required, the use of a Process Quality Control Plan (PQCP) to monitor characteristics

of the process and product to ensure that all requirements will be met.

b. Records that prove conformity, or appropriate steps to address non-conforming processes

or product.

4) Operator Training

a. Documentation that proves operators are trained to do the jobs that they perform, and

can identify non-conforming product.

5) Production Control



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a. Document scheduling process to ensure product will be delivered on time.

6) Protection of Property and Product

a. Due care storage and processes, and appropriate packaging that prevents contamination

(Foreign Object Debris, (FOD)), spoiling, shelf life expiration, and damage to product

(including consigned material).

7) Calibration of Measuring Devices

a. Calibration of all measuring devices using best available and cost effective industry

standards such as ISO10012 and ANSI/NCSL Z540.

8) Control of Non-Conforming Product

a. Procedure that defines the process, personnel, and responsibilities for dealing with non-

conforming product.

b. Ensures that non-conforming product is identified and contained to prevent further use.

c. Contains records of non-conformances and steps to address them.

9) Corrective Action Process

a. Review of all non-conforming processes or product, including disposition.

b. Root cause analysis, implementation and verification of corrective action.

10) Tracking and Improvement of Key Performance Indicators (KPI’s)

a. Identification, tracking, and improvement plans for KPI’s.

b. Willingness to share data and plans.

3 Supplier Approval To become an approved supplier, the supplier must pass an assessment that demonstrates that they meet

and will maintain Buyer’s quality requirements. For parts or systems defined as flight critical, the supplier

is expected to make reasonable efforts for the Buyer’s Supplier Quality Engineer (SQE) to conduct this

assessment at the supplier’s manufacturing location. Otherwise, the supplier may be asked to conduct the

assessment themselves and communicate the results with the SQE. Areas assessed will include the

following:

1) Quality System

a. Organizational chart, roles and responsibilities, demonstrated quality system, and

evaluation of quality system effectiveness.

2) Manufacturing Capabilities

a. 5S, standard work, quality processes, measuring devices, maintenance, materials

management, sub-supplier management.

3) Engineering Capabilities

a. Engineering resources, CAD capabilities, configuration management, engineering change

procedure, test capabilities.

4) Manufacturing Processes

a. Machining, extrusion, anodizing, casting, plating, composites, electronics, wiring

harnesses, assembly.

The Buyer may request periodic reviews at the supplier location to ensure that quality standards remain

high. If a review is requested, the supplier shall ensure that the Buyer has access to all applicable

manufacturing records.



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4 Sub-Supplier Management

4.1 Procedure Each supplier is expected to have a procedure for managing their suppliers. This procedure should ensure

that they have the following quality system procedures in place, at a minimum: Control of design changes,

material traceability, documented system of inspections, and control of non-conforming material. We also

expect our suppliers to evaluate and assist in the improvement of their sub-suppliers’ quality, delivery

performance, and cost management. Buyer reserves the right to evaluate its suppliers and sub-suppliers.

If the Buyer elects to do this, it may require access to applicable manufacturing records.

4.2 Flow Down of Requirements Quality requirements (called out on the print, in technical specifications, or on the purchase order), are to

be flowed down to sub-suppliers to ensure that all the Buyer requirements are met throughout the supply

base.

5 Advanced Product Quality Planning (APQP) APQP is a methodical process that mitigates risk at the beginning of production efforts. It contains a

number of elements (outlined below), from sourcing to ramp up. The purchase order will inform the

supplier which elements of the APQP process will be applicable to them. The level of criticality (3, 2, 1) of

the supplier and product combination will determine the necessity and depth for the APQP to be used (see

chart below).

Table 1 - Criticality Levels and Task Requirements

Criticality Level

3 2 1 Task

√ 1 Supplier Program Reviews

√ 2 Demonstration of compliance to the applicable Quality System

√ √ √ 3 Production Part Approval Process / First Article Inspection

√ √ 4 Proof of Capacity

Task 1: Supplier Program Reviews

1) *Initial Program Review

a. Supplier identifies product team (if required by Buyer).

b. Reviews of design and technical specifications.

c. Program timing.

*Fully executed Non-Disclosure Agreement may be required

2) Manufacturing Development Program Review

a. Design and technical specifications.

b. Status of facilities, equipment, tooling, and functional testing.

c. Program timing.

3) Production Part Approval Process / First Article Inspection (PPAP/FAI) Program Review



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a. Design changes requested by the Buyer or supplier.

b. Status of facilities, equipment, tooling, and functional testing.

c. Manufacturing and quality documentation.

d. Proof of capacity.

4) Post Production Start Program Review

a. Design changes requested by the Buyer or supplier.

b. Initial production issues and PPAP/FAI status.

c. Proof of Capacity, ramp up plan.

d. Lessons learned, as appropriate.

Task 2: Demonstration of Compliance to the Applicable Quality System (Criticality Level 3 suppliers only)

1) The supplier is required to provide documentation to demonstrate that their quality procedures

comply with the Buyer’s minimum quality system requirements.

Task 3: PPAP/FAI (See Section 6)

Task 4: Proof of Capacity (See Section 8)

6 Production Part Approval Process (PPAP) / First Article Inspection (FAI)

6.1 When a PPAP/FAI Submission is Required All Criticality Level 2 and 3 suppliers must receive a PPAP/FAI approval (prior to the initial shipment) if any

of the following cases occur:

1) New production of a part or system.

2) An engineering, process, or tooling change that may affect fit, function, or durability.

3) An Interim PPAP/FAI Approval will expire soon.

4) A change in the supplier’s manufacturing location.

5) A change in the supplier’s source for subcontracted parts or raw material.

6) A raw material change.

6.2 Criticality Level and Document Requirements The criticality level (3, 2, or 1) defines the maximum PPAP/FAI requirements in order for the supplier to be

fully approved. See Table 2 below for details. The actual requirements will be established via the request

for quote and the resulting purchase order.



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Table 2 – Criticality Levels and Maximum Requirements

If the supplier plans to begin production with temporary tooling or equipment, the supplier shall notify the

associated Buyer’s SQE, and follow the instructions in Section 7. If the supplier is in doubt of the criticality

level, contact the associated Buyer’s SQE.

6.3 Documentation Submission Requirements and Descriptions

6.3.1 Criticality Level 1 Material Suppliers of criticality level 1 material shall submit documentation with each shipment. It is preferred that

the documentation is packed with the packing slip.

6.3.2 Criticality Level 2 and 3 Material Suppliers of criticality level 2 or 3 material shall submit documentation to the Buyer’s SQE for approval,

prior to the initial shipment, and can only ship product after receiving approval. For subsequent shipments,

the supplier may be required to provide key documents with each shipment.

6.3.3 Proprietary Documentation Documents considered proprietary are not required to be delivered to the Buyer. To approve these

documents, the Buyer’s SQE may review them with the supplier at the supplier’s facility.

6.3.4 Quality Clause Descriptions Below are descriptions of documents that may apply:

SQC1 - Certificate of Conformance

1) Required for all PPAP/FAI Submissions, regardless if they are for full or interim (See Clause SQC4).

2) Suppliers of Level 2 or 3 criticality material shall use the Buyer’s Certificate of Conformance form.

Supplier Quality Clause Requirement

SQC1 - Certificate of Conformance

SQC2 - Material and Process Certifications

SQC3 - Proof of Traceability

SQC4 - Buyer Interim PPAP/FAI / Deviation Request

SQC7 - Process Quality Control Plan

SQC8 - Dimensional Inspection Results

SQC13 - Discrepancy Summary

SQC15 - Functional Test Results

SQC16 - Shipping Certification

SQC9 - Ballooned Print

SQC10 - Production Sample Parts

SQC11 - Process Capability Studies

SQC12 - Measurement Systems Analysis

SQC17 - Validation Test Results

SQC18 - Validation Test Results Approval Form

SQC5 - Process Flow Diagram

SQC6 - Process Failure Modes and Effects Analysis (PFMEA)

SQC14 - Evidence of Sub-Supplier approved PPAP/FAIs

Criticality Level

2

3

1



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3) Suppliers of Level 1 criticality material may use their own form. This form shall include the

following, at a minimum :

a. Supplier name and address.

b. Purchase order number.

c. Part name (Buyer, Manufacturer, or Distributor).

d. Part number (if applicable) (Buyer, Manufacturer, or Distributor).

e. Supplier part number (if applicable).

f. Specification number and material condition (if a raw material).

g. Engineering revision level.

h. Date of manufacture.

i. Batch/lot number.

j. Expiration date and shelf life (for materials impacted by shelf life)

k. Serial number(s) (if applicable).

l. The raw material manufacturer’s batch/lot number (if a raw material).

m. The name and location of the raw material manufacturer (if a raw material).

n. Statement that the product meets all Buyer requirements noted or referenced in the

purchase order.

o. Name of responsible manager, along with the responsible manager’s signature.

SQC2 – Material and Process Certifications

Material Certification

- Document with chemical/physical test results that demonstrate compliance with the applicable

raw material specification requirement. A copy is required for all purchased raw material.

Process Certification

- Document that certifies that a chemical/physical process meets Buyer requirements. A copy is

required whenever a process is performed that changes a material’s chemical or physical

properties.

SQC3 - Proof of Traceability

1) Document that shows an unbroken chain of custody from the lowest level component to the final

product.

SQC4 - Buyer Interim PPAP/FAI / Deviation Request Form

1) Submitted by the supplier if there are any incomplete or non-conforming PPAP/FAI requirements

at due date. See Section 7 for a full description.

a. Only if the supplier believes that the non-conformances or inadequacies have no negative

effects on the product.

2) Contains the status, action plans, and target completion dates for them.

3) A blank form is available from the Buyer.

SQC5 - Process Flow Diagram

1) Document that graphically depicts all steps of the manufacturing process, including receiving,

material handling, processing, inspection, testing, storage, and shipping.



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SQC6 - Process Failure Modes and Effects Analysis (PFMEA)

1) Purpose is to prioritize quality improvement efforts.

2) Calculates the relative risk of failure of each manufacturing operation.

a. List all possible manufacturing errors (value added operations only).

b. Explain the effects of the error.

c. Determine the potential cause of the error.

d. Describe how the cause will be prevented.

e. Describe how the error will be detected if the process fails.

3) Blank form is available from the Buyer.

SQC7 - Process Quality Control Plan

1) Documentation of inspections and tests that are conducted to ensure that all products conform to

the Buyer’s requirements.

a. Describe the feature that is inspected, the specification, the frequency, the measuring

device, and the reaction plan if the feature is out of specification.

b. Show emphasis on special controls for critical dimensions and characteristics.

c. See Section 6.4 for Product Specific Inspection Requirements

2) A blank form is available from the Buyer.

SQC8 - Dimensional Inspection Results

1) Shows results of inspections for all critical characteristics, critical dimensions, non-reference

dimensions, and notes on the drawing.

2) Gather and submit data for the first part of the initial shipment.

3) Include the device / method of inspection for each feature.

SQC9 - Ballooned Print

1) Print that has the dimensions and notes numbered to match the dimensional inspection report.

SQC10 - Production Sample Parts

1) As many as three (3) parts may be requested for review by Buyer’s Supplier Quality department

prior to regular shipment.

SQC11 - Process Capability Studies

These studies are only required for critical characteristics that are defined on the drawing.

1) During initial production (first thirty (30) pieces) the supplier shall measure and retain data for all

critical characteristics and dimensions. Once 30 pieces are reached, the data shall be used to

calculate process capability. Until 30 pieces are reached, the supplier shall only provide the data

for the characteristic(s).

2) Process capability (Cpk > 1.33, four sigma) shall be maintained throughout production or one

hundred percent (100%) inspection of the affected characteristic(s) is required.

3) Capability data shall be provided to the associated Buyer’s SQE upon request.

4) Process controls over and above normal controls (statistical process control at minimum) are

required.

5) Critical characteristics shall be mentioned appropriately on the supplier’s PFMEA, Quality control

plan, and work instructions.



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6) The supplier shall report findings to the Buyer upon request.

SQC12 - Measurement Systems Analysis

1) Required study for all devices used to measure critical characteristics.

2) Performed to determine if measurement devices are appropriate for their application.

3) Use Gage Reproducibility and Repeatability (Gage R&R) method. Guidelines for acceptance of the

measurement system are:

a. Acceptable if error < 10%.

b. May be acceptable if 10% < error < 30%, depending on importance of characteristics, and

the nature of the measuring device.

c. Unacceptable if error > 30%. Improvement to the measurement system is required.

4) If the supplier requires guidance, it should contact the associated Buyer’s SQE. A blank form (that

performs all calculations) will be available.

SQC13 - Discrepancy Summary (for Suppliers of Carbon Fiber Rolls and Uni Tape only)

1) Provide a report that summarizes characteristics or dimensions that do not meet the Buyer’s

requirements. Provide with shipment of product.

SQC14 - Evidence of Sub-Supplier Approved PPAP/FAI Packages (Critical Components Only)

1) Copies of PPAP / FAI approvals from relevant sub-suppliers.

SQC15 - Functional Test Results

1) Summary of results of testing performed on each production unit. See Section 6.4 for product

specific requirements.

SQC16 - Shipping Certification

1) Required if product is shipped to the Buyer in an environmentally controlled storage unit.

SQC17 – Validation Test Results

1) Summary of results for all tests specified by Buyer Engineering

a. Name of test, passing criteria, date of test(s), number of parts tested, and results.

SQC18 - Validation Test Results Approval Form (Completed and Passed)

1) Form evaluated and approved by the appropriate Buyer’s Product Engineering

6.4 Product Specific Inspection (SQC7) and Functional Testing (SQC15) Requirements For these product families, the supplier shall perform inspection and functional testing on each unit, which

shall meet the following minimum requirements, as appropriate:

6.4.1 Printed Circuit Board Assemblies and Electronic Devices The supplier shall conduct the following inspections and tests, and meet IPC-6011, Class 3:

1) Coupon analysis (bare boards).

2) Automatic optical inspection.

3) Electrical tests for circuit continuity.

If the product contains software, the supplier shall also:

4) Conduct a functional test that ensures that the product meets specifications.



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6.4.2 Electromechanical Devices The supplier shall conduct testing that ensures:

1) The product functions within its full, specified range of motion.

2) The product moves from one end of its operation to the other in the specified amount of time

(both directions).

3) Any parts that spin are balanced within specification.

4) Electrical inputs over the Buyer defined range yield results that conform with the print and

technical specifications over the full range of motion.

5) Outputs based on position yield conforming electrical values.

6.4.3 Wiring Harnesses The supplier shall conduct and provide results for the following tests:

1) Continuity.

2) Hi-Pot testing.

3) Insulation resistance.

6.4.4 Pneumatic and Hydromechanical Devices 1) The product functions within its full, specified range of motion.


(both directions).

3) Hydraulic pressure input over the Buyer defined range yields results that conform with the print

and technical specifications over the full range of motion.

4) Output load conforms to Buyer’s requirements.

6.4.5 Mechanical Devices The supplier shall conduct testing that ensures:

1) The product functions within its full, specified range of motion.


(both directions).

3) Any parts that spin are balanced within specification.

4) Mechanical inputs over the Buyer defined range yield results that conform with the print.

5) Devices that will be pressurized or hold fluids are leak tested.

6.5 PPAP Approval Definitions

6.5.1 Full PPAP Buyer has approved all required quality documents, including capability results (if required) and is confident

that the supplier’s processes will yield conforming product. The supplier is approved to ship product for

regular production after award of subsequent purchase order or Production Agreement (PA) .

6.5.2 Interim PPAP The Buyer has approved all conforming documentation, plus deviations to all required documentation that

is incomplete or has discrepancies. The supplier is approved to ship product for regular production in



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limited quantities. Buyer will communicate the quantity on the approved Interim PPAP/FAI Deviation form

(See Section 7 for a description of the process).

6.5.3 Rejected PPAP The Buyer has determined that due to significant discrepancies, or inadequate quality documentation, the

supplier’s product cannot be used. Therefore, the supplier is not approved to ship product.

7 Supplier Request for Deviation from Requirements

7.1 Situations Where a Deviation May Apply If either of the two cases below apply, the supplier may request a deviation that would allow them to ship

product on an interim basis:

1) Supplier manufactures product out of specification (such as not meeting print tolerances, or

technical specifications), but believes there are no negative effects; or

2) Supplier has not completed PPAP/FAI document requirements, but believes the inadequacies will

have no negative effects

7.2 Method for Requesting a Deviation 1) Fill out the Interim PPAP/FAI / Deviation Request form, ensuring that the following information is

included:

a. Supplier name and location

b. Buyer part name, number, and revision

c. Description of discrepancy

d. Reason why discrepancy will not have a negative effect

e. Extent of deviation

f. How the material will be identified

2) Buyer’s SQE will review the request with Buyer Engineering and determine disposition of the

material.

3) If the deviation is approved, the supplier can ship material on a limited basis. See Section 6.5.2

above for details.

4) The supplier shall include a copy of the approved form with all associated shipments.

5) Applicable documents such as inspection data and serialization shall be retained.

8 Proof of Capacity

8.1 Purpose The purpose is to verify that the supplier’s manufacturing process is capable of meeting the Buyer’s

production rate on a sustained basis. This procedure may apply to suppliers of criticality 2 and 3

components and systems when any of these occur:

1) Production of a new design

2) Buyer’s production requirements are significantly higher than what is stated in the current

purchase order

3) Significant process changes that may impact capacity

4) Tooling and equipment moves to a new manufacturing location



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8.2 Method Buyer’s SQE will determine which method is applicable, which will be communicated on the purchase order:

1) Production run.

a. The supplier conducts a production run. All sub-supplier data shall be provided to the

Buyer’s SQE, prior to the run (using the applicable Buyer form) for review.

2) Documentation

a. The supplier provides documentation that shows that it has adequate capacity to meet

Buyer’s requirements (using the applicable Buyer form). Documentation shall include data

from sub-suppliers.

3) Exemption

a. Buyer determines that due to the type of product and manufacturing process, there are

no unacceptable capacity risks.

8.3 Duration The duration will be sufficient to verify that the process can meet Buyer’s production requirements.

8.4 Timing If a production run is required, it will be conducted after the supplier has attained Full or Interim PPAP

approval.

8.5 Approval If the Buyer’s SQE determines that the supplier has provided adequate evidence that it can meet production

requirements, the Buyer’s SQE will sign, approve, and return the form to the supplier.

8.6 Corrective Action If the supplier fails to meet the requirements of this procedure, the Buyer SQE will issue a request for

corrective action. A response shall be submitted to the SQE within two (2) business weeks from the date

of issue. Upon full implementation and verification of the corrective action plan, the SQE will sign, approve,

and return the applicable Buyer form to the supplier.

9 Non-Conforming Material

9.1 Method If non-conforming material due to the supplier is identified at the Buyer’s facility, a Supplier Corrective

Action Request (SCAR) will be issued. Within one business day, the supplier shall respond with the following

information on the 8-Discipline (8-D) SCAR form:

1) Return Material Authorization Number, Shipper Name, and any other shipping information

required to return the material to the supplier (if Buyer requests that the material is to be

returned).

a. Supplier is responsible for paying for the shipment.

2) Containment Action.

a. Description of actions that isolate the effects of the non-conformance from the Buyer until

corrective action is implemented. Documentation of this shall be included with all

shipments, until the SCAR is closed.



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3) Target Shipment Date for Certified Material.

Formulation of a corrective action plan (acceptable to the Buyer) is due within ten (10) business days from

issuance. All steps taken from root cause to corrective action verification shall be documented on the 8-D,

including the following, at a minimum:

1) Root cause of the problem and verification.

2) Corrective action and verification.

3) Manufacturing documentation updates that may include:

a. Process Flow Diagram

b. Process FMEA

c. Quality Control Plan

d. Work instructions

e. Travelers

4) Preventive actions to ensure that the same root cause is corrected for any other Buyer product

that has a similar manufacturing process

If the disposition of the material is for the supplier to sort it at the Buyer’s facility, the supplier shall:

1) Provide a representative to perform sorting of all parts at the Buyer’s facility, at their cost. The

representative shall have familiarity with the product and the ability to communicate with the

supplier plant for containment and corrective actions.

2) The supplier’s measuring devices shall have proof of calibration.

3) The supplier shall identify all sorted material to show either “Accepted” or “Rejected” and label

each container with part number, quantity, and date.

Regardless of the disposition of non-conforming material, the supplier will be responsible for a complete

response to the corrective action request.

9.2 Third Party Certification If the Buyer discovers another identical defect prior to the implementation of a corrective action, the

supplier may be required to implement third party certification of shipments with no additional cost or

schedule changes to the Buyer.

9.3 If The Supplier is Aware of a Non-Conformance If the supplier becomes aware of a shipment of non-conforming product, or discovers non-conforming

consigned material, they shall contact the Buyer’s SQE immediately. In addition, the Buyer encourages the

supplier to participate in the Government Industry Data Exchange Program (GIDEP), if not already.

10 Other Requirements

10.1 Design Changes Under no circumstance is the supplier allowed to change the design, or Bill of Materials (BOM) of a product,

without prior written approval of Buyer If the supplier finds a design or BOM change necessary, the supplier

shall request the change by completing the Buyer’s Supplier Design Change Request (SDCR) form and

providing it to the Buyer’s SQE. If approved, the supplier may proceed with the change, but may not make

any shipments until receiving PPAP approval from the Buyer’s SQE. See Section 6.1 for details.



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10.2 Product Obsolescence If the supplier decides to obsolete a product, the Buyer shall be provided advanced notification of at least

the lead time for new product. In addition, the supplier shall provide a plan to ensure seamless continuity

with the new version:

1) Projected date of last shipment, along with the quantity.

2) Plan to build bank of parts to satisfy Buyer requirements until new version is ready.

3) Provide adequate quantities of the new version to the Buyer for evaluation and testing.

4) PPAP/FAI Plan for new version.

10.3 Record Retention The supplier shall retain quality records for seven (7) years after the last delivery of products, unless

otherwise specified on the purchase agreement or order. Prior to discarding, transferring to another

organization, or destruction, the supplier shall notify Buyer purchasing in writing (at least 30 days notice)

and give the Buyer the opportunity to gain possession. Upon request, the supplier shall deliver requested

records to the Buyer within two (2) business days from time of request.

10.4 Material Traceability

10.4.1 Responsibilities The supplier shall be responsible for creating and maintaining controlled documentation of product

material traceability throughout all stages of receipt, production, and delivery. Traceability records shall

be maintained throughout the life of the product, and shall be made available to the Buyer upon request.

10.4.2 Raw Materials Raw Materials shall be traced to their original material manufacturing lot / batch at a minimum. All raw

material shipped to the Buyer that fulfills a purchase order individual line item shall be from the same heat

lot.

10.4.3 Critical Components For critical components, process Information shall be traced to purchased components. At a minimum,

this includes the operator, date performed, shift, manufacturing instructions used, use of validated

equipment, identification of equipment used, BOM / design revision and configuration, resolution of any

discrepancies, and record of any rework performed.

10.5 Shelf Life Unless otherwise specified by the purchase order or agreement, all shelf life limited materials or products

delivered to the Buyer shall have a minimum remaining shelf life of six months, or 75% of total shelf life,

whichever is longer. Remaining shelf life is to be calculated from the Date of Shipment.

10.6 Prevention of Use of Counterfeit Material The supplier shall have a documented procedure in place that prevents the use of counterfeit material.

Electronics manufacturing suppliers shall reference SAE AS5553, and distributors of electronic parts shall

reference SAE AS6081 for guidance. To minimize the risk of using counterfeit material, the supplier should

procure directly from original manufactures, and manufacturer-authorized distributors/resellers with

evidence that parts were procured by the original manufacturer and have not been altered or

misrepresented. The Buyer reserves the right to audit the procedure.



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10.7 Protection of Electrostatic Discharge (ESD) Sensitive Material The supplier shall have a documented procedure in place that protects ESD sensitive material, when

appropriate. The supplier shall reference MIL-STD-1686, ANSI-S20.20, and EIA 625 for guidance. The Buyer

reserves the right to audit the procedure.

10.8 Part Marking

10.8.1 Criticality Level 3 Product The supplier shall mark the product in accordance with the drawings and technical specifications

referenced by the purchase order.

10.8.2 Criticality Level 2 Product

Design Provided by Buyer

The supplier shall mark the product in accordance with the drawings and technical specifications

referenced by the purchase order.

Design Provided by Supplier

The supplier shall mark the product in accordance with the latest revision of ISO 28219.

10.8.3 Criticality Level 1 Product The supplier shall mark the product in accordance with the latest revision of ISO 28219.

11 Supplier Scoring In order to rate the quality performance of the supplier, the Buyer’s SQE will monitor the following

performance metrics:

1) Fraction defective

2) Quality escapes

3) Number of corrective active requests

4) Corrective action responsiveness

5) Field claims

The Buyer may choose to alter the selection of required metrics. Quality scores will be combined with

scores from purchasing and materials to make up the entire supplier score, and will be available. Scores

will be used by the Buyer to measure performance and may impact future decisions regarding sourcing.

12 Supplier Development

12.1 Program Description If a supplier’s scores do not meet our minimum requirements, it may be placed in our Supplier Development

Program. This will involve regular reviews of the action plans to improve quality, delivery, and cost issues,

until performance improves to acceptable levels. It may also involve audits of the supplier’s processes that

impact the Buyer.

12.2 Critical Suppliers Audit The Buyer reserves the right to conduct periodic audits at suppliers who provide Criticality Level 3 product.

The purpose will be to continuously ensure the capability of the supplier to control quality. The supplier



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will be informed of such status in the purchase order or agreement. The supplier will be responsible for

implementing corrective actions for any audit findings. In addition, if the Buyer becomes aware of any

significant changes with a supplier (quality, leadership), the supplier may be subject to an immediate audit.

13 Acronyms and Definitions 1) Buyer: Virgin Orbit procurement entity. 2) Supplier: The legal entity that is the contracting party with the Buyer with respect to the

procurement document(s). 3) Procurement document: The purchase order or subcontract between the parties. 4) SQE: Supplier Quality Engineer 5) BOM: Bill of Materials 6) Product: Goods or services 7) Metrics: Statistics of key performance indicators that will be generated to measure the

performance of the supplier

14 Reference Documents AS9100 - Aerospace Standard - Quality Management Systems - Requirements for Aviation, Space

and Defense Organizations

TS16949 - Quality management systems - Particular requirements for the application of ISO

9001:2008 for automotive production and relevant service part organizations

ISO9001 - Quality Management Systems — Requirements

SMC-S-003 - Space and Missile Systems Center Standard - Quality Assurance for Space and Launch

Vehicles

SAE AS5553 - Counterfeit Electronic Parts; Avoidance, Detection, Mitigation, and Disposition

MIL-STD-1686 - Electrostatic Discharge Control Program for Protection of Electrical and Electronic

Parts, Assemblies and Equipment

ANSI-S20.20 - Parts, Electrical and Electronic, Assemblies and Equipment, Protection, for the

Development of an Electrostatic Discharge Control Program

EIA 625 - Requirements for Handling Electrostatic Discharge Sensitive Devices

ISO 28219:2009 - Packaging - Labelling and direct product marking with linear bar code and two-

dimensional symbols

Supplier Quality Requirements Number L1-743I003/02 Document Name Supplier Quality Requirements 3...

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