5.4 Repeated Quality Deficiencies
In the event of repeated or continual quality deficiencies, the purchaser has the right to:
a) Reduce turnover (in other words, use of another supplier)
b) Dissolve the development partnership
c) Inspect the production line and the testing and inspection documentation of the supplier within 48
hours.
d) Carry out a problem analysis or non-scheduled audit, either himself or by a third party representative
within 48 hours.
Purchaser will utilize the MQR-System (Management Quality Review) to resolve repeated or severe
quality, supply or delivery concerns. This procedure is carried out in three different levels:
MQR l Plant Level
MQR ll Business Unit Level
MQR lll Group Level
On all levels detailed improvement Plans and responsibilities are determined and agreed in writing. If no
improvements are achieved a meeting on the next higher MQR level will be conducted.
5.5 Complaints and PPM Targets
All complaints shall be collected and evaluated by the supplier. If required, this data will be compared
with those of the purchaser. If necessary, new PPM-Targets shall be announced to the supplier/s in the
target agreement form (ELEI-POS-FR-06-11-01-E) and sent to the supplier/s. The fixed PPM-Targets
shall serve as a measurement for continuous improvement and selection of suppliers for future
business on a preferred basis.
5.6 Direct Delivery to the Production Line
The Purchaser wants to work with its suppliers on basis of S.T.S. (Ship To Stock) or S.T.L. (Ship To
Line) agreements. This means that the components are delivered directly into the purchaser’s
manufacturing line or the customer manufacturing line as applicable.
The supplier ensures to the Purchaser 100% deliveries on time. (Including all shipment documents)
In case of late deliveries, penalties defined below shall apply: