Supplier Quality Manual

1.0 SCOPE

This document applies to personnel involved in selecting and evaluating suppliers and suppliers who provide product or product related services i.e. raw material, special processes, and goods & services for Apex.

2.0 PURPOSE

This document establishes the general quality requirements that shall be communicated to suppliers that provide product or product related services for Apex.

3.0 RESPONSIBILITY

3.1. Primary: Supply Chain/Quality

3.1.1. Supply Chain/ Quality is responsible for the development and maintenance of this procedure.

3.1.2. Supply Chain/ Quality is responsible for identifying the quality assurance requirements to be flowed down for products and product related services.

3.1.3. Supply Chain is responsible for communicating the requirements to suppliers of products and product related services.

3.2. Additional: Engineering

3.2.1. Engineering is responsible for identifying engineering requirements to be flowed down for product and product related services.

3.2.2. Suppliers and or external providers are responsible for ensuring the requirements of this document are met.

4.0 APPLICABLE DOCUMENTS

4.1. AS9100 Quality Management System – Requirements for Aviation, Space and Defense Organizations.

4.2. Apex-QMS-001 – Supplier Quality Management

5.0 DEFINITIONS

None.

6.0 PROCEDURE

6.1. Supplier Approval and Monitoring

This section describes the process for supplier qualification, approval, and periodic review. It includes but is not limited to: ISO 9001/AS 9100/ Quality Management System is required. In lieu of an industry standard third-party QMS certification, Apex shall perform and audit of the supplier’s Quality Management System.

6.1.1. Right of Access: During the execution of this order, your Quality Control, Inspection and Manufacturing processes may be reviewed, verified and analyzed by authorized Apex and or customer representatives.

6.1.2. Supplier Evaluation Criteria: Performance metrics (e.g., quality, on-time delivery, cost), certifications (e.g., AS 9100, Nadcap), and supplier audits.

6.1.3. Supplier Evaluation Criteria: Performance metrics (e.g., quality, on-time delivery, cost), certifications (e.g., AS 9100, Nadcap), and supplier audits.

6.1.4. Performance Monitoring: Specify how often performance reviews will be conducted, including methods for tracking Key Performance Indicators (KPI’s) such as delivery rates and defect rates.

6.1.5. Supplier Audits: Define the frequency and type (e.g. onsite, desktop) of audits based on risk, with an emphasis on compliance with AS 9100 and Apex requirements.

6.2. Product Identification and Traceability

6.2.1. Identification: Clarify the requirements for labeling, including part number, lot number, and serial numbers.

6.2.2. Traceability: Ensure suppliers can trace materials and processes used in the manufacturing of their products back to their origin and forward to determine the location of like articles or materials within a given lot (process, component or assembly) with proper records in place to track every step in the supply chain.

6.3. Material Safety Data Sheets

6.3.1. Material Safety Data Sheets (MSDS) are required.

6.4. Special Process Requirements

6.4.1. Non-Destructive Testing requirements and Chemical Processing quality system requirements IAW Nadcap/ PRI documents AC7114 (NDT) and AC7108 (CP) if applicable.

• Qualification of Special Processes: Define requirements for special processes, including operator certifications and regular process validation.
• Process Control: Mandate strict adherence to process parameters and control documentation.

6.5. Material Handling, Storage, and Preservation

6.5.1. All products must be handled in such a way to prevent handling damage during processing. Apex may reject product based on internal visual inspection criteria.

6.5.2. Environmental Controls: For temperature sensitive or humidity sensitive products, suppliers should have the necessary controls in place.

6.5.3. Shelf Life and Obsolescence Management: Established guidelines for managing product shelf life and avoiding obsolete components.

6.6. Corrective and Preventative Actions (CAPA)

6.6.1. Define expectations for corrective action reports and root cause analysis in the event of a nonconformance.

• Corrective Action Request (CARs): Specify a timeframe for suppliers to provide root cause analysis and corrective actions.
• Preventative Actions: Encourage suppliers to proactively identify potential issues and implement preventative measures.

6.7. Change Management Notification

6.7.1. Process Change Notification (PCN): The supplier is required to notify Apex prior to implementation of any changes in process or systems that would impact product quality. Changes that may affect quality include but are not limited to use of new procurement sources, new part number or materials, loss of survey/certification approval, and significant changes within the supplier’s or supplier’s, subcontractor facilities.

6.7.2. Configuration Control: Suppliers must ensure that changes are documented, reviewed, and approved by Apex before implementation.

6.8. Supplier Performance Evaluation and Risk Management

6.8.1. This section includes but is not limited to:

• Risk-Based Thinking: Suppliers must apply risk management practices to their processes, products, and supply chain to prevent issues.
• Supplier Risk Classification: Identify risk levels based on supplier performance, and detail how higher risk suppliers will be managed more stringently.

6.9. Flow Down of Requirements

6.9.1. Sub-Tier Suppliers: Suppliers are required to flow down to sub to suppliers the applicable requirements of the Apex purchasing documents, including key characteristics where required.

6.10. Electrostatic Discharge (ESD) Control

6.10.1. Suppliers providing components, subassemblies, our product sensitive to ESD must implement and maintain an ESD control program compliant with industry standards, such as ANSI/ESD S20.20 to prevent damage or degradation of sensitive components.

6.10.2. ESD Program Requirements:

• ESD Protected Areas (EPA): Suppliers must establish ESD protected areas where sensitive components are handled. These areas should be clearly marked and only accessible by trained personnel.
• Personnel Training: All personnel handling ESD sensitive components, must receive regular training in proper ESD handling procedures, including grounding methods, use of protective clothing, and proper storage techniques.
• Grounding and Bonding: Ensure that workstations, tools, and equipment are properly grounded to prevent static discharge.
• ESD Audits: suppliers must conduct regular audits of their ESD control program to ensure compliance with ANSI/ESD S20.20 or equivalent. Records of these audits must be maintained and available for review by Apex upon request.

6.10.3. ESD-Sensitive Component Handling:

• Packaging: ESD-sensitive components, must be packaged in static-shielding packaging materials, such as ESD bags or containers, with appropriate labeling to indicate the products sensitivity.
• Shipping: Special handling instructions for shipping ESD-sensitive products must be clearly communicated to the carriers, and the appropriate protective packaging must be used to prevent damage during transit.

6.11. Printed Circuit Board Assemblies (PCBAs)

6.11.1. Suppliers of PCBAs must adhere to straight to manufacturing, testing, and quality assurance requirements to ensure the reliability and functionality of delivered assemblies, particularly for Aerospace and high reliability applications.

6.11.2. PCBA Standards:

• Manufacturing Compliance: All PCA’s must comply with IPC standards, such as IPC-8-610 (Acceptability of Electronic Assemblies) and IPC-J-STD-001 (Requirements for Soldered Electrical and Electronic Assemblies).
• Testing and Inspections: PCBA’s must undergo comprehensive testing, including functional testing, in-circuit testing (ICT), and automated optical inspection (AOI) to verify the quality and functionality of the assembly. Any failure detected during these tests must be documented and submitted to Apex for review.

6.11.3. Conformal Coating and Potting:

• Conformal Coating: If specified by Apex, PCBA’s may require conformal coating to protect against environmental factors, such as moisture, dust, and chemicals. Suppliers must ensure proper application and curing of the conformal coating per IPC-CC-830.
• Potting: For assemblies, requiring potting, suppliers must ensure the material used meets Apex’s specifications for thermal and mechanical protection. The potting process must not damage the PCB or its components, and proper documentation must be provided to verify the process.

6.11.4. Control of PCB Materials and Components:

• Material Traceability: Suppliers must maintain full traceability of all materials and components used in the manufacturer of PCBA’s. This includes the origin, batch number, and supplier of every material and component.
• Counterfeit Part Prevention: Suppliers must adhere to the counterfeit parts prevention program as outlined in quality clause APXQ-008. PCB components must be sourced from authorized and verified manufacturers are distributors, with full traceability documentation available.

6.11.5. Cleaning and Contamination Control:

• Cleaning: After soldering, PCBAs must be thoroughly cleaned to remove any flux residues, debris, or contaminants that could impact performance. Cleaning processes must be documented, and post-cleaning inspection must be performed.
• Contamination Control: Suppliers must implement contamination control measures throughout the production and testing processes to ensure that no foreign objects, particles, or debris contaminate the assemblies.

6.12. Counterfeit Parts Avoidance and Detection

6.12.1. Suppliers must establish a counterfeit parts detection and avoidance system, including risk management and reporting, in accordance with SAE AS5553/AS6174. Electrical and electronic components must be sourced from authorized distributors and have full traceability.

6.13. Foreign Object Debris/ Damage

6.13.1. Suppliers shall take steps to ensure the prevention of Foreign Object Debris/ Damage (F.O.D) to include but not limited to regular inspections, proper storage and handling, employee training and awareness.

6.14. ITAR Compliance

6.14.1. Suppliers acknowledge that Apex may provide technical data subject to Export Control laws (EAR or ITAR-controlled). This data must not be disclosed to foreign persons or entities without approval.

6.15. Nonconforming Material Control

6.15.1. Nonconforming materials must be promptly identified, documented, and either segregated or bonded to prevent unintended release or use. They should remain isolated pending evaluation and disposition to determine the necessary actions for containment and resolution. Suppliers are not granted Material Review Board (MRB) authority for Apex Space Manufacturing or its customer-designed items unless specifically authorized in writing. The supplier's MRB cannot perform any disposition on nonconformance affecting form, fit, function, weight, interchangeability, maintainability, reliability, key characteristics, or safety. These nonconformances must be submitted to Apex Space Manufacturing on the specified nonconforming material control document. Suppliers are not permitted to proceed with processing the nonconformance until full written and approved disposition has been provided.

6.16. Supplier Disclosure of Discrepant Material

6.16.1. Suppliers must retain records of inspection, testing, and processing for a minimum of 15 years. These records must be traceable and available for review by Apex.

6.16.2. Discrepant materials must be promptly reported, with details of inspection, testing, and nonconformance documentation maintained for the required period.

6.17. Certifications Required

6.17.1. The certification, identifying the organization performing the process/service, shall be supplied to Apex with each shipment or electronically prior to receipt of shipment at Apex. The certification report must contain all information necessary to demonstrate performance to the requirements, reflected on the drawing and our specification and shell at a minimum contain the following:

• P.O. number
• Part number
• Manufacturing lot number
• Quantity of parts
• Serial or processed numbers as applicable
• Specification(s) and revision
• All certifications must be part number and lot number/ heat lot number specific. Different part numbers must be on separate certifications.
• Signature and title of authorized representative.
• Pages must be identified “Page _ of _”

6.18. Receiving Inspection

6.18.1. Apex reserves the right to perform source inspection. When source inspection is performed, the supplier’s measuring equipment is to be made available for use to determine product performance to requirements. Supplier personnel are to be made available for operation of the equipment and otherwise assist as requested. Source inspection may include review of systems, procedures, and facilities for compliance with purchase order requirements.

6.19. Control of Records

6.19.1. Records and objective evidence of inspection, testing, processing and fabrication shall be retained by the supplier for a minimum of 15 years after the contract’s completion, unless otherwise specified. These records must be traceable to their originator and be clearly identified, securely stored and readily accessible for review by Apex.

6.20. Shipments

6.20.1. Prior to shipments to Apex or drop shipments to an Apex vendor, all material is to be cleaned and protected as required to be free of all foreign material, substances or residue. Handling and packaging are required to prevent physical damage.

6.20.2. Product shipped to Apex shall be packaged in such a manner as to protect the product from damage that may occur during shipping.

NOTICE: The information contained in this document is the property of Apex Technology, Inc. and may not be transmitted, reproduced or disclosed without explicit written authorization of Apex Space. Printed copies of this document are uncontrolled and are for reference only.

For Apex's full Supplier Quality Manual, email: SupplyChainQuality@apexspace.com.