Pur-Man-0001 Rev 20.0)

PUR-MAN-0001
DATE: 6/30/2022
REVISION: 20.0
MELLING TOOL COMPANY

SUPPLIER QUALITY MANUAL
Supply Chain Vision Statement
Continually working to streamline communication using current and new

technologies throughout all levels of the Supply Chain by facilitating continuous
improvement and provide increased customer and supplier satisfaction.
Changes / Updates / Highlights
Section Title Description/Highlighted Date Revised
Number
Abbreviations ISO References Changed from ISOTS to IATF 1/23/2017
1.B.4 Quality Performance Added Zero Plant Disruption or Special 1/23/2017
Requirements Statuses.
2.A.1 ISO References Latest Version Added to Sentence 1/23/2017
2.A.1.d Transitioning from ISOTS to MTC and MII will accept IATF Rules and 1/23/2017
IATF Requirements
2.B.3.a Annual Onsite Audits Added Requirement due to Changes in 1/23/2017
Customer Specifics assigned to MTC or MII
2.B.4.c Supplier Quality Manual The Manual will be sent to Suppliers 1/23/2017
Annually
2.C.2.a Annual Recertification Changed Requirement from Layout to PPAP 1/23/2017
2.E.1 Sub-Supplier Control Added min. pass down requirements found in 1/23/2017
this manual
2.G.1.a Capability and Control Ongoing Capability changed from Cp & Cpk 1/23/2017
to Xp and Xpk.
2.I.1 Shelf Life Changed requirement from 120 Business 1/23/2017
Days to a min. of 6 Months
4.E.1 Legal & Other Requirements Added Prop 65, Asbestos to materials 1/23/2017
statement.
11 Key Contacts Added Dan W., Harold B., Mike P. 1/23/2017
11 Key Contacts Added Jodie N. and Nancy K. 8/02/2017
11 Key Contacts Updated to new contact numbers 10/20/17
4.G Code of Conduct Added code of conduct 10/20/17
2.A.5 Quality Systems Added VDA requirements for MII Suppliers 10/20/17
Requirements
2.B.3 Requirements for Supplier Revised audit information to include timing 10/20/17
Approval requirements based on CSRs and use of
second party audit companies.
2.A Supplier Requirements Title Added based on risk and types of services 3/6/18
provided.
2.A.1 Minimum Certification Revised ISO 9001 from preferred to accepted. 3/6/18
Requirements Added compliance and eventual certification
and the new requirement for MAQMSR.
2.A.2 CQI-27 Added Special process for casting. 3/6/18
2.A.3 CQI-19 Added Sub-Tier Supplier Management 3/6/18
reference
2.B.2 Self – Assessment Tabs Added “all tab” reference for completions 3/6/18
2.E.1 MAQMSR Added reference as an example for Sub- 3/6/18
Supplier Control.
5.D.1 Contingency Plan Added requirement for mock events against 3/6/18
current plan.
11. Key Contacts Added Kim Lucas to MTC & added Brandy 3/6/18
Morehead to MII.
2.G Special Characteristics Added new table from ENG-WIS-0007 4/2/18
Appendix B Supplier Contacts Added Customer Service & Accounts 5/21/18
Receivables
2.A.1.f Risk Mitigation Added clarification of Risk Mitigation status 6/4/18
11. Key Contacts Added Melling Products North 9/24/18
Section Title Description/Highlighted Date Revised
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Melling Tool Company •2620 Saradan Drive, Jackson Michigan 49204 • Tel (517) 787-8172, Fax (517) 787-8928
UNCONTROLLED WHEN PRINTED
Number
11. Key Contacts Updated staff contacts 5/9/19
2.A.1 Quality Systems Added latest version of IATF sanctioned 3/26/20
Requirements interpretations
2.C.3 Customer Specific Added requirements for use of AIAG Core 3/26/20
Requirements Tool Handbooks including AIAG& VDA
FMEA
2.M Supplier Charge Back Policy Revision to table and added admin fees 3/26/20
5.D.1 Contingency Plan Added requirement pandemics and startup 6/3/20
5.D.2 evidence.
11. Key Contacts Updated staff contacts for MPN 6/3/20
B.4.C. and L. Acknowledgement of supplier Added a MPN to the following sections. 8/20/2020
11. Quality Manual.
Notification of Customer
Rejects ….
4.G.2 / 5.B.4 / Systems & packaging & Key Code of Conduct, Pallet Specs., BOLs , 3/8/2021
5.C.K & 11 Contacts Updated staff contacts
2.L.5 Corrective Action Reports Added timing chart for corrective actions 3/31/21
2.L.6 Certified Shipments Added information for labeling certified 3/31/21
shipments
2.L.8 Notification of Customer Added section for Control Shipping Status 3/31/21
Rejects
2.M Supplier Charge Back Policy Added fee for wrong address delivery 3/31/21
11. Key Contacts Updated staff contacts for MTC, MII & MPN 3/31/21
11. Key Contacts Updated staff contacts for MTC, MII & MPN 6/27/22
11. Key Contacts Added Electronic Invoice Submission for 6/27/22
MTC
2.L.6.b Certified Shipment Labels Added used of Supplier Breakpoint Label 6/27/22
2.A.2 Special Process Assessments Added CQI-29 for Brazing 6/27/22
4.C IMDS Numbers Added MII and MPN IMDS numbers 6/27/22
5.b.2 Melling Dunnage Added cleaning requirements 6/30/22
SUPPLIER MANUAL OUTLINE

1. General Information
A. Objective
B. Supplier Requirements
2. Quality Systems Requirements
A. Quality Management System Requirements
B. Requirements for Supplier Approval
1. Purchasing Contract
2. Supplier Quality System Self-Assessment
3. On-Site Quality Assessment
4. Acknowledgment of Supplier Manual Supplier Manual
C. Customer-Specific Requirements
1. Statement of requirements
2. Annual Recertification
3. AIAG Core Tool Handbook Requirements
D. Advanced Product Quality Planning (APQP)
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1. APQP Requirements
2. APQP supplier kick-off meeting
E. Tier2/Sub-Supplier Control
F. Manufacturing Process and PPAP requirements
1. Prototype/pre-production Parts
2. Production Part Approval Process ( PPAP)
3. Production parts manufactured on production equipment.
4. Capacity Verification/Run at Rate
G. Process Capability and Control Requirements
H. Cleanliness Requirements
I. Shelf Life Requirements
J. Supplier Material Traceability /Lot Control
K. Certificate of Conformance
L. Notification of Customer Rejects/ Corrective Action Reports
M. Supplier Charge back Policy
N. Continuous Improvement
1. General
2. Expectations-Annual Improvement Factor
O. Record Retention
3. Product or Process Changes and Deviations
A. Engineering/Process Change notification
B. Request for Change by Supplier
C. Request for Change by MTC, MII or MPN
4. Environmental and Safety Management System
A. Environmental Management Systems Requirements
B. MTC, MII and MPN Environmental Policy/Guidelines and Survey
C. International Materials Data System (IMDS)
D. Safety Data Sheets (MSDS)
E. Legal and Governmental Requirements
F. Conflict Mineral Requirements
G. Code of Conduct
5. Shipping
A. Delivery performance
B. Packaging /Label Specifications
C. Packing slips and Bills of Lading
D. Contingency Plan
6. Materials Management
A. Purchase Orders
B. Ship Schedules
7. Obsolescence Claims
8. Cost Savings
9. Supplier Price Increases
10. Supporting Documentation
11. MTC, MII, and MPN Key Contacts
Appendices
Appendix A – Acknowledgement Form
Appendix B – Supplier Contacts Form
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Abbreviations
MTC – Melling Tool Company
MEP – Melling Engine Parts
MII – Melling Industries
MPN – Melling Products North
PPAP – Production Part Approval Process
8D – Corrective/Preventive Action format using 8 disciplines for problem solving.
PQC – Product Quality Characteristic.
SOR – Statement of Requirements
ISO 9001 or IATF 16949 – An input document for the development of a quality manual.
ISO 9001 and IATF 16949 – Copyright protected property of the International Organization for
Standardization, Geneva, Switzerland.
ISO 9001 / 16949 – prepared by the International Automotive Task Force (IATC) and Japan Automobile
Manufacturers Association, Inc. (JAMA), with support from ISO/TC, quality management and quality
assurance.
1. GENERAL INFORMATION
A. Objective
To communicate the Melling Tool Company (hereafter referred to as MTC) and Melling Industries, Inc.
(hereafter referred to as MII) and Melling Products North (hereafter referred to as MPN) expectations
regarding quality and environmental management systems to companies providing products and services to
MTC, MII and MPN.
To ensure that Supplier quality and environmental systems conform to Melling systems requirements. (Per
section 1.B, Supplier Requirements)
Melling Tool Company (MTC) is the parent company of Melling Industries, Inc. and Melling Products North.
All requirements in this manual apply to products and/or services under all above business names.
B. Supplier Requirements
1. All sections of this manual shall be read and understood. Any exceptions to this manual must be
submitted to Melling Purchasing or Procurement Manager.
2. This manual is an extension of Melling Purchase Orders and SOR’s. All requirements in this
manual shall be considered terms & conditions of sale.
3. Supplier delivery performance requirement shall be 100% on time.
4. Supplier quality performance requirement shall be “ZERO DEFECTS, Plant Disruptions or Special
Statuses i.e. CS1, CS2 etc.”
5. All suppliers shall follow Melling’s Quality System requirements as defined by this manual.
6. Corrective action initial response shall be within two (2) days of occurrence. Root cause analysis
and corrective action plan shall follow within thirty (30) days or per requirements.
7. Melling has a Supplier Charge back policy and Charge back form. Suppliers shall be cost
accountable per that policy and chargeback form. All charge backs to be worked through and
negotiated with Supplier throughout the corrective action process.
8. Conformance to our Supplier Performance Rating System which shall be distributed at least
annually.
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9. Familiarize yourself to MMOG/LE requirements and strive to implement systems to be compliant or
certified to MMOG/LE.
2. Quality Systems Requirements
A. Melling Supplier Quality Systems Requirements based on risk and the type(s) of
products and / or services you supply to Melling
1. ISO 9001(latest version) is the certification (minimum) accepted by Melling with a goal of achieving
IATF 16949 (latest version including latest sanctioned interpretations) compliance and eventual
certification or a Quality System per Melling requirements with the addition of Minimum
Automotive Quality Management System Requirements ”MAQMSR” (latest version). An
implementation plan should be submitted to the Purchasing Department within a reasonable amount
of time of the receipt of this manual, if third-party certification has not already been achieved.
a. The Supplier shall provide Melling with a copy of their certificate, if applicable.
b. The Supplier shall provide Melling with a new certificate from re-certification audits, if
applicable.
c. The Supplier must notify Melling if there is a change in certification status, if applicable.
d. Waivers: When a supplier to Melling is so small as to not have adequate resources to
develop a system according to IATF16949: 2016 or ISO 9001:2015, certain specified
elements may be waived by Melling. Melling shall have decision criteria for determining
“Specially designated small suppliers”: Such decision criteria shall be in writing and applied
consistently in the application of this provision. The existence and use of such decision
criteria shall be verified by 3rd Party auditors. NOTE 1: ISO9001:2015 and IATF
16949:2016 contain fundamental quality management system requirements of value to any
size of provider of production /service materials, heat treating, plating, and other finishing
services. There are a number of methods to implement a compliant system, so it is
recognized that a simpler Quality Management System approach could be used for the
smaller suppliers of organizations to which IATF16949:2016 clause 8.4.2.3 applies.
e. Risk Mitigation: Risk Mitigation may include the following assignable causes: Supplier size,
which then could equal a small number of people employed and no current certifications;
Manufacturing locations, such as out of country; Quality and/or environmental system
strength or certification level, they are currently ISO 9001 2015; Financial health, New
suppliers, New product, New manufacturing process; Underperforming, regarding quality,
delivery, or responsiveness.
2. If your company, or any of the lower tier suppliers, use any of these special processes to
produce products that are supplied to Melling you are required to complete an annual
assessment based on the current revision of the AIAG CQI standards. Send your completed
assessment forms each year to Melling Purchasing. Forms can be found at this link:
http://www.aiag.org/
 Heat Treating – CQI-9 Special Process: Heat Treat System Assessment
 Plating – CQI-11 Special Process: Plating System Assessment
 Coating – CQI-12 Special Process: Coating System Assessment
 Welding – CQI-15 Special Process: Welding System Assessment
 Soldering – CQI-17 Special Process: Soldering System Assessment
 Molding – CQI-23 Special Process: Molding System Assessment
 Casting – CQI-27 Special Process: Casting System Assessment
 Brazing – CQI-29 Special Process: Brazing System Assessment
3. The supplier should be familiar and use systems that are similar to systems outlined in the
current AIAG CQI standards for:
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 Warranty Analysis – CQI-14
 Layered Process Audits – CQI-8
 Sub-Tier Supplier Management – CQI-19
4. Melling subscribes to the BIQs guidelines. You should be aware and utilize the systems
outlined in the current BIQs documents published by GM.
5. For MII suppliers only the supplier should be familiar with the requirements of the current version of
the VDA 6.3 guidelines. You should be aware and utilize the system process requirements.
B. Requirements for Supplier Approval

1. Purchasing Contact
a. Melling Supplier Approval shall begin with the Purchasing Department’s assessment of any
mutual business opportunities.
2. Supplier Quality System Self-Assessment
a. Complete the Supplier Quality System Self-Assessment (all Tabs) and forward a copy to the
Melling Purchasing Department.
b. Based on the risk of part design or supplier risk a certification to the current version of
IATF16949 may serve as the Quality tab part of the assessment.
3. An onsite Quality System assessment by a Melling representative(s) may be required prior to
issuance of initial or new purchasing agreements.
a. Due to revised customer specifics Melling reserves the right to do onsite audits for qualifying
suppliers annually based on the number of supplier employees used to produce parts for Melling
OEM, Customer requirements, and/or the Supplier performance.
b. Audits may be completed by a Melling employees or it may be completed by a second party
audit team on behalf of Melling
4. Acknowledgment of Supplier Quality Manual –
a. The Supplier Quality Manual shall be read and understood. The supplier shall sign the
Supplier Manual Acknowledgement form (Appendix A) and submit a copy with a Supplier
Key Contact List (Appendix B) to the Melling Purchasing and/or Melling Quality Department.
b. Failure to sign the Supplier Manual Acknowledgement form shall not absolve the supplier of
its terms and conditions.
c. The Supplier Manual will be sent to Melling suppliers annually to communicate changes to
MTC, MPN, and/or MII requirements. Response to this request will be within 5 business
days.
C. Customer Specific Requirements
1. Statement of Requirements (SOR)
a. Melling Purchasing Department may submit a Statement of Requirements (SOR) with the
quote package defining and communicating part specific or program requirements over and
above print specifications.
b. Melling specific requirements which are more stringent than the OEM requirements will
supersede those OEM requirements.
2. Annual Recertification – (PPAP)
a. Annual Part re-certification is required per Melling customer requirements. PPAP level will be
communicated when required.
3. AIAG Core Tool handbooks
a. Suppliers are required to use and follow the latest published versions of the AIAG Core Tools
handbooks which includes the AIAG & VDA FMEA handbook.
D. Advanced Product Quality Planning (APQP)

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1. APQP Requirements
a. Suppliers shall have a fully implemented APQP process and review it with the Melling Supplier
Quality Department based on component complexity and criticality.
2. APQP Supplier Kick-Off Meeting
a. An APQP Supplier Kick-off meeting may be required prior to Purchase contract issuance. The
purpose shall be to define the project’s technical, quality, manufacturing, packaging, delivery,
and business issues.
E. Sub-Supplier Control
1. Suppliers shall be responsible for control and improvement activities of sub-suppliers. Melling
suppliers shall require sub-suppliers of product to operate within a comprehensive quality
management system “MAQMSR”. At a Minimum pass down requirements are found in this
manual.
F. Manufacturing Process and PPAP Requirements

1. Prototype/Pre-production Parts – May be produced on Non-Production tooling but specific
requirements will be spelled out on the Melling Purchase Order.
2. Production Part Approval Process (PPAP) per the current revisions of the AIAG PPAP Manual
3. Production parts must be manufactured on production equipment and PPAP approved prior to
shipment. A Level 3 PPAP is the default level of submission. The submission must contain a PPAP
Submission Checklist defining all deliverables. See Melling website for checklist.
4. Capacity Verification/Run at Rate
a. If requested, suppliers shall provide documentation to Melling substantiating sufficient
resources to provide products as quoted.
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G. Process Capability and Control Requirements:
1. Special Characteristics and/or dimensions listed on the print will be noted in the table below. The list
of controls will be agreed to as part of the PPAP submission. Contact your Quality Engineer with
any questions.
Drawing Documentation Recommended Control

Type Definition Selection Criteria
Symbol Requirements Methods
A characteristic that has a Selection should be Document on Control method approved at

direct effect on product safety based on or indicated specific time of PPAP
by a loss of function, drawing
data obtained from detailing the Suggested methods of control:
DFMEA (Severity of 9 feature and -Xp=2.0 Xpk=1.5 (Also requires
or10), customer documentation demonstrated ongoing
CQC returns, warranty package continuous capability
Critical claims, or other (PFMEA, CP, improvement up to capability
Quality methods to identify a WI) levels noted)
Characteristic customer based -Provide ongoing capability data
target quarterly
-100% verification (error
proofing or error detection)
-Data recorded per serial
number
-Product traceability required
A characteristic in which the Selection should be Document on Control method approved at
customer is equally satisfied based on or indicated specific time of PPAP
across the entire specification, by a loss of function, drawing
PQC with high customer data obtained from detailing the Suggested methods of control:
Product dissatisfaction immediately DFMEA, PFMEA, feature and -Xp=2.0 Xpk=1.5
Quality outside of the specification customer returns, documentation -Provide capability data annually
Characteristic warranty claims, or package
other methods to (PFMEA, CP,
identify a customer WI)
based tolerance
-A characteristic that is Selection should be Document on Control method approved at
measured or checked and based on or indicated specific time of PPAP
results in conformance or by a loss of function, drawing
nonconformance, pass or fail. data obtained from detailing the Suggested methods of control:
It may also be applied to parts, DFMEA, PFMEA, feature and -100% verification such as:
part features and or customer returns, documentation pass/fail or present/absent,
assemblies that have warranty claims, or package MTES (Melling Tool Engineering
AQC regulatory requirements and other methods to (PFMEA, CP, Specification)
Attribute or critical performance or identify a customer WI) -Multiple features may be called
Quality customer satisfaction based tolerance back to a single AQC symbol for
Characteristic objectives. May be used the MTES
where the presences of the -Data recorded per serial
feature is more important number
than the specific size or -Product traceability
location results.
-Weep holes
-Drain back hole
-Hydra lock hole
Page 9 of 24
A characteristic that may have Selection should be Document on Control method approved at
no effect on the function of based on or indicated specific time of PPAP
the assembly but has a direct by data obtained drawing
customer interaction or has an from PFMEA, detailing the Suggested methods of control:
PTC effect on the function of the customer touch feature and -100% verification (such as:
Pass-Thru assembly but is not checked as points customer documentation pass/fail or present/absent
Characteristic part of the testing process. returns, warranty package
-Mounting holes claims, or other (PFMEA, CP,
-Interference areas methods WI)
A characteristic where there is Those standard Control method approved at

no incremental economic or product time of PPAP
customer satisfaction loss characteristics which
inside the specification. The are important to Suggested methods of control:
customer is equally satisfied function and where -Material certifications per
across the specification and reasonably shipment
Standard None None
the customer does not have anticipated variation -Heat treat certifications per
high dissatisfaction outside of the shipment
immediately outside the specification is likely
specification. to have moderately
negative
consequences.
For historical reference. May be referenced on older drawings
Ongoing Production Numbers

Minimum Capability Requirements
PPAP
Characteristic Requirement
PQC Xp  1.67 Xp  1.33

Xpk  1.67 Xpk  1.33
Significant Samples Checked Noted on control plan and monitored during

Product to Design production
Characteristics Record
Figure 1.
H. Cleanliness Requirements
1. Melling requires that all material received shall be clean and free of debris, residual abrasive
material, burrs, and corrosive products adversely affecting fit, function, or appearance.
Additional requirements may be required per engineering specifications, drawings, PO
requirements, and/or SOR.
I. Shelf life Requirements

1. All material/received shall be free of rust/corrosion for 6 months minimum, after receipt.
J. Supplier Material Traceability/Lot Control

1. Suppliers shall be able to demonstrate adequate product traceability and provide a detailed
explanation or example of the system.
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K. Certificate of Conformance
1. Melling may require, as necessary, a Certificate of Conformance form with each shipment
certifying the product meets all material and drawing specifications. The supplier form may be
used with applicable information. The supplier shall, at a minimum, retain appropriate test data.
L. Notification of Customer Rejects/Corrective Action Reports

1. In the event of a rejection, the supplier shall be notified and a CAR may be issued. Depending on
the severity, a supplier representative may be required to visit Melling immediately to address
the issue.
2. RMA for rejected part will be requested and if an RMA is not provided within a week (5 business
days) the parts will be returned to the supplier at your expense.
3. Corrective Action Requirements are found below. It is the supplier’s responsibility to complete
these activities on time and with complete information. In the timing cannot be meet it is the
supplier’s responsibility to contact the appropriate quality engineer or the quality manager to
request an extension of the timing.
Phase CAR Sections Required Timing

Initial submission 1. Team Identification 24 Hours
2. Problem Description
3. Short Term Containment (Melling and supplier) including
identification of clean point
Root cause with corrective and 4. Root Causes for specific, detection, and systemic (must 7 Days
preventative action plan submit a systemic problem tool such as a 3 tiered 5 Why)
submission 5. Permanent corrective action plan
6. Preventative action plan
Corrective and Preventative 5. Permanent corrective action plan 14 Days
Action Plan status update 6. Preventative action plan
Closure with all verification and 5. Permanent corrective action plan 30 Days
evidence submitted 6. Preventative action plan
7. Verification with Evidence
Records of controlled shipping status
4. DPPM’s and CAR’s will be reflected in your supplier rating.

a. Each supplier is required to manage their own DPPM rating. If the quantity of suspect material
returned to the supplier contains conforming parts, the supplier is encouraged to submit a PPM
Reversal Request to the Quality contact at Melling so that accurate records can be kept as to the
number of non-conforming parts sent to Melling. The PPM Reversal Request form can be found
on the Melling website.
b. Once a sort of returned suspect material is complete and the supplier wishes to reship the portion
of conforming parts back to Melling the can be done if the following conditions are fulfilled:
i. There is an open order with requirements to ship against
ii. The lot of conforming parts are marked as verified and noted with the method listed on the
container
5. All charges incurred as a result of a supplier non-conformance are the responsibility of the
supplier.
6. Supplier is required to replace all non-conforming parts per Melling request in a timely manner.
a. Certified material shall be marked per box with an label of the suppliers choosing
b. Each certified pallet shall be marked on all 4 sides of the pallet or container using the Supplier
Breakpoint label found on our website or with a master certified label/sign (8.5 x 11) that
includes the info below:
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Attention: (Appropriate Melling Quality Engineer/Contact)
Certified Material
Date Containment Started: MM/DD/YYYY
Corrective Action #: XXXX
Issue Description: (Give a short description of the issue)
7. Training materials for the 3 tiered 5 why problem solving tool is located on the Melling Website.
8. Controlled Shipping – In the event that there is a severe issue or repeated issues that are not
contained the supplier may be placed on control shipping. Controlled shipping is identified in
two forms:
a. Controlled Shipping 1 (CS1) – Supplier is required to add a redundant inspection process. The
inspection process can be performed by the supplier’s employees at the supplier’s location in
order to isolate Melling from receipt of nonconforming parts/material. Weekly inspection results
are to be submitted to Melling Quality department.
b. Controlled Shipping 2 (CS2) - includes the same processes as CS1 with an added inspection
process that is completed by an impartial third party. A list of third party companies needs to be
submitted to Melling for vetting and approval. Third party inspections is paid by the supplier. In
special cases, the CS2 inspection may be required to be performed outside the supplier’s
facilities at a facility deemed appropriate by Melling. Weekly inspection results are to be
submitted to Melling Quality department.
 Supplier will be notified of the entering of the control shipping status via email from
Melling Quality department.
 Melling and the supplier shall agree on the added controls and the exit plan for controlled
shipping.
o Default exit plan will include 20 production days of inspection following the
implementation of the permanent corrective actions.
 When the supplier believes they have meet the criteria in the exit plan they shall submit
evidence to Melling Quality department for approval of exiting controlled shipping.
 The controlled shipping status and controls can only be changed once the approval is
given via email from the Melling Quality department to the supplier.
M. Supplier Charge Back Policy

1. The Supplier accepts financial responsibility for non-conforming product including costs
incurred for containment, sorting, premium freight, rework, repair, and replacement of defective
material, resulting overtime, and production loss incurred by Melling or by our Customers.
a. All hourly fees are subject to Melling standard overtime rules if applicable.
b. Supplier will be notified of fees prior to the issuance of chargeback
c. Some fees may be waved at the discretion of Melling Quality or Purchasing departments.
d. The following is a schedule for administrative fees and cost categories associated with
nonconforming product sent to Melling:
Description of fee Occurrence Timing Fee amount

Material Rejection – Supplier Each occurrence $150
Responsible
Non-Response to Material rejection Weekly starting after Minimum of $150 or 5% of the purchase
1 work week price per work week whichever is greater
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Rejected Material not removed from Weekly starting after Minimum of $150 or 5% of the purchase
Melling Facility 1 work week price per work week whichever is greater
Freight – Return and Replacement Each occurrence Supplier Responsibility
3rd Party Sorting - Onsite Each occurrence Supplier to contract approved 3rd Party
sorting company directly
3rd Party Sorting - Offsite Each occurrence Supplier to contract approved 3rd Party
sorting company directly
Onsite sorting by Melling personnel Each occurrence Actual costs incurred - $55/hr.
Production line down charges Each occurrence Actual costs/losses incurred
Supplier Corrective Action Issued Each occurrence $150
Customer Corrective Action Issued – Each occurrence $500
Supplier responsibility
Miscellaneous fees (rework, material Each occurrence Actual costs incurred
handling, required Customer time and
travel costs, expedites, Customer
location sorting fees, tooling/machine
damage, testing, damage to Melling
property, etc.
Warranty Costs Each occurrence Actual costs incurred
Wrong Address Delivery Correction Each occurrence $75
(supplier must follow address
directions on Purchase Order)
N. Continuous Improvement
1. General
a. Continuous Improvement regarding cost reduction is an essential element of long-term business
success for Melling and its Suppliers. In order to remain competitive, Melling and its Suppliers
recognize the requirement to eliminate waste and reduce the cost of products.
2. Expectation—Annual Improvement Factor
a. Melling expects all Suppliers to demonstrate a year-over-year cost reduction of at least 2%. We
expect this to be directly reflected in the form of an Annual Improvement Factor (AIF) on all
business.
b. All Suppliers are expected to constantly examine and optimize the entire cost structure of their
business and products supplied to Melling. This includes process improvements, design
improvements, transportation, reductions in cycle-time, scrap, die/tooling set-up, Sales, General
and Administration (SG&A), fixed and variable overhead, etc. In order to ensure proper review
and validation of Suppliers’ design and process improvement ideas, Suppliers must strictly
comply with Melling’s change management requirements for all design and process change
proposals.
O. Record Retention
1. Suppliers are required to maintain, at minimum, Production Part Approval Process (PPAP)
packages, annual layout and validation records, tooling records, traceability records, engineering
records, Purchase contracts and amendments for the length of time that the part (or part family)
is active for production and service requirements plus (3) three calendar years or a minimum of
10 years whichever is longer, unless otherwise specified by Melling. Corrective Action records
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and Quality performance records, such as control charts, inspection and test results are to be
retained for 5 years minimum.
2. Retention times shall meet or exceed the above requirements and any governmental
requirements.
3. Product or Process Changes and Deviations
A. Engineering/Process Change Notification
1. Changes must be submitted and approved prior to implementation. Any change to a supplier
product, process or any of its characteristics is considered an Engineering change, whether that
characteristic was specified in the product specification or not. The supplier shall submit a Supplier
Deviation Request to Melling Purchasing Department representative or Procurement Manager for
processing.
B. Request for Change by Supplier

1. If requesting a change, the supplier will be responsible for all associated expenses, including
expenses that may be incurred downstream. Melling will not participate in any associated price
increases.
a. In an effort to foster continuous improvement activities within our supply base, Melling will
share the cost savings on supplier initiated design and process improvements.
2. Melling will not accept Supplier cost increases due to an engineering change unless authorized and
approved by Melling.
3. Any supplier requesting a product move to a different facility must submit a Supplier Deviation
Request form to the Melling Purchasing representatives and submit a new PPAP for the respective
products/services.
C. Request for Change by Melling

1. If Melling requires changes resulting in a price reduction in either tooling or manufacturing costs,
Melling will expect component price to reflect the entire amount reduced.
4. Environmental and Safety Management Systems

A. Environmental Management Systems Requirements
1. Melling expects suppliers to work towards achieving compliance to the latest ISO14001
Environmental Management System standard. An implementation plan should be
submitted to the Purchasing Department within a reasonable amount of time of the
receipt of this manual, if third-party certification has not already been achieved.
2. Melling is required per our ISO 14001 to require all suppliers to submit copies of
certifications and proof of liability insurance. This should be sent to Melling Purchasing
upon renewal or at a minimum 1 time per year.
B. Melling Environmental Policy/Guidelines and Survey
1. Melling suppliers and service providers will be required to follow the Environmental and
Safety guidelines as noted in the Melling Visitors and Contractors handbook. Reference
Melling website or contact Melling Purchasing and/or Procurement for a copy if not
provided one during a visit to Melling.
2. Melling suppliers and service providers are required to complete the Environmental
Supplier Survey and return to Melling Purchasing and/or Procurement.
C. International Materials Data System (IMDS)
Page 14 of 24
1. IMDS tracks chemical ingredients of parts and assemblies across the entire automotive
OEM supply chain. The supplier may be required to input materials data
(http://www.mdsystem.com). This requirement will be communicated in the quote
package and/or SOR.
a. MTC ID – 34791
b. MII ID – 106899
c. MPN ID – 16067
D. Safety Data Sheets (SDS / MSDS)
1. All chemicals brought onto Melling property require a SDS Sheet (MSDS). The SDS
must be provided to the Environmental Management Representative (EMR) for review
prior to bringing the chemical on site.
E. Legal and Governmental Requirements
1. All materials used in, or incorporated into Melling products shall comply with current legal,
governmental and safety constraints on restricted, toxic, and hazardous materials such as
REACH, RoHS, California Prop. 65 and Asbestos declarations. Hazardous materials must
comply with OSHA standards and be properly identified.
F. Conflict Mineral requirements (For Component Suppliers)
1. To make reasonable efforts:
a. to disclose to Melling, the sources of Conflict Minerals used in its products; and
b. to eliminate procurement, as soon as commercially practicable, of products containing
Conflict Minerals obtained from sources that fund or support inhumane treatment in the
Covered Countries. (Refer to Melling Engine Parts Guideline for Conflict Mineral
Reporting)
2. To assist Melling to comply with the disclosure requirements of Section 1502 of the Dodd-Frank
Wall Street Reform and Consumer Protection Act of 2010, and the rules of the U.S. Securities
and Exchange Commission promulgated pursuant to that law, as well as any related laws and
rules.
3. We expect that you will fulfill your reporting obligations which require our supplier partners to
undertake the following actions, which are similar to those of other automotive and cross-
industry manufacturing companies:
a. Send contact information for a designated conflict minerals representative for your
Company to Melling Purchasing, this will be your acknowledgement of these
requirements.
b. Investigate & Report the required company –level data and, if known, the smelter data,
for all uses of the designated minerals and derivatives in the Conflict Mineral Reporting
template for any materials, components or products supplied to Melling. Return a
completed Conflict Minerals Reporting Template www.conflictfreesmelter.org including
all smelter information for all of the designated minerals (see reference materials for
Conflict Mineral Reporting template information and guidance).
c. Please remember to Document all steps taken to collect and report conflict minerals
information and preserve that documentation.
G. Code of conduct policy
1. The company expects all of its visitors and/or contractors to conduct themselves in an
ethical manner when performing their duties for or on behalf of Melling. Melling has
an employee code of ethical conduct policy that prohibits employees from accepting
gifts above the value of $100.00 without the approval of a supervisor. We expect all
of our employees and visitors to maintain all company information as confidential.
Page 15 of 24
2. Suppliers will be sent the full code of conduct annually and are required to reference
the full code of conduct on the MTC website.
5. Shipping
A. Delivery Performance
1. Delivery performance will be shown in our Supplier Performance Rating System. Supplier
awareness of this requirement is important. It is a key performance metric.
2. Delivery requirements will be on the purchase order.
3. All suppliers shall deliver on time 100% to all of our locations.
4. All products shall be shipped to meet the due date at the Melling location.
5. Early or late deliveries shall not be tolerated without penalty (i.e. supplier rating) unless Melling
has approved them.
6. Over and under shipment needs prior approval by Melling Purchasing and/or Procurement.
a. Purchase order:
i. Components; Total quantity of components received must be within plus two to minus
zero percent of the purchase order quantity.
ii. Castings; Total quantity of casting received must be within plus/minus ten percent of the
purchase order quantity.
7. Any count discrepancies will be communicated to the supplier immediately.
B. Packaging/Label Specification
1. All products shipped to Melling shall be properly packaged to assure that they arrive at Melling
in good condition. All packaging must be pre-approved prior to shipping to Melling per the
Packaging Data Sheet.
2. Melling owned returnable dunnage must be clean and unbroken when used to ship components
back to Melling. This is considered by Melling to be the suppliers responsibility.
3. Standardized pallets / skids – 36”X 39” (4 way).
4. International Wood Pallet Requirements:
Pallet Specifications - All wood pallets and other packaging material comprised of wood must
conform with the International Standards For Phytosanitary Measures No. 15 (ISPM #15),
Guidelines For Regulating Wood Packaging Material In International Trade. The ISPM mark
must be visible. This includes all materials shipped intrastate in the U.S.A. and shipments
to and from Canada.
Reference: https://www.aphis.usda.gov/aphis/ourfocus/planthealth/import-information/wood-
packaging-material
5. For components received in boxes there is a maximum weight of 40lbs.
6. All material must be properly identified with the following information on a readable bar code
label using the standard AIAG format unless otherwise approved by Melling. All container labels
must contain the following (6) six fields. (See Figure 2a)
a. From (Supplier Name)
b. To ( Melling Location)
c. Part Number Field:
I. Part # Text = 0.05 inch high in the upper left hand corner of the field over identifier (P).
II. Melling Part # Text = 0.5 inch high and 0.25 inch wide. Must be as per P.O.
III. Part Bar Code = Code 39 bar code part number = 0.5 inch high.
d. Quantity Field:
I. Quantity# Text = .05 inch high in the upper left hand corner of the field over identifier (Q)
II. Quantity Text = Total quantity per container = 0.5 inch high and 0.25 inch wide.
III. Quantity Bar Code = Code 39 bar code identifier (Q) and the quantity = 0.5 inch high.
Page 16 of 24
e. Supplier Lot Number must be able to be manually read and also be read by a scanner. No
prefix is required.
f. P.O.# Field
I. P.O.# Text = .05 inch high in the upper left hand corner of the field over identifier (K)
II. P.O. # Text = .3125 inch high .125 inch wide.
III. P.O. # Bar Code = Code 39 bar code identifier (K) and the P.O. number. 0.5 inch high
g. Date Field. Optional
h. Master Pack Labels (Figure 2b) are required on pallets with two or more containers of the
same part and require the same five fields as container labels. The quantity (Field d) will be
the total quantity per lot number and must be clearly visible. If more than one lot number is
sent on a pallet, there needs to be one master label per supplier lot number.
7. Any deviations from these requirements require formal Melling approval.
8. Any concerns if labels meet requirements contact Melling Quality Engineer.
Page 17 of 24
Figure 2a
a.
b.
c.
d. Container Qty. e.
f. g.
Figure 2b
Page 18 of 24
d. Total lot
number per
pallet Qty.
C. Packing Slips and Bills of Lading

1. All packing slips and bills of lading must have the following information
a. Sold to Address
b. Ship to Address
c. Purchase Order number for each item shipped
d. Packing slip number
e. Each item number shipped with description
f. Quantity shipped
g. Number of boxes /cartons or containers shipped
h. Date of shipment
i. Shipping Class, FAK. Use the shipping class on Melling Purchase Order if indicated.
j. BOL # and Pro # if applicable
k. The following 3rd party billing MUST appear on the Bill Of Lading (BOL)
Send Freight bill to:
Melling % ACF Global Logistics LLC
1737 Spring Arbor Rd
#224
Jackson, MI 49203
D. Contingency Plan
1. The Supplier shall have a contingency plan to ensure continuation of supply and 100% on time
delivery in case of equipment failure, labor shortage, utility interruption, or
pandemic/communicable events and shall be available for review by Melling. The supplier will
conduct annual mock events to test the plan.
2. When any process interruption occurs, whether a planned or unplanned event, a controlled start up
including safety and product verifications are required. Evidence of this controlled start up may be
required to be submitted to Melling or Melling may require the supplier to fill out a self-
assessment based on these events.
6. Materials Management
Page 19 of 24
A. Purchase Orders
1. Purchase orders are issued to suppliers on Melling approved supplier list.
2. Melling Purchase Orders or Requests for Quote or other documentation shall be proprietary and
confidential unless agreed to in writing from Melling Purchasing Department and/or Procurement
Manager.
3. All suppliers must comply with all requirements, all terms, and all conditions of the purchase order
and as noted on the Melling website.
4. Any special additional requirements beyond the standard shall be stated in the body of the
purchase order and/or as noted in the Statement of Requirements.
5. SDS shall be submitted, as needed and/or required, on products prior to shipping.
6. All products shipped for production must first have PPAP approval, unless the Supplier has
obtained an approved deviation from Melling.
7. A Purchase Order Acknowledgment is returned with every purchase order. The supplier is required
to have their applicable representative review and acknowledge via email to the Melling
Purchasing agent and/or Procurement Manager.
8. Failure to submit an acknowledgment does not absolve the supplier from the purchase order terms
or conditions. Shipment of product to Melling is deemed as an acceptance to all terms and
conditions of the purchase order and any other contractual agreements.
9. All deviations from purchase order requirements must be communicated to the Melling Purchasing
Department and/or Procurement Manager.
10. Ship Schedules

1. The required delivery dates shall be on the purchase order.
2. The supplier shall be responsible for shipment transit time to meet the due date on the Purchase
order. A separate daily/weekly ship schedule may need to be generated based on our
production run schedule. The Melling purchasing agent and/or Procurement Manager shall
contact the supplier to coordinate and confirm acceptance of the schedule.
7. Obsolescence Claims
1. Melling will notify Suppliers when a program end/change has been announced and will use a
standard authorization of 4 weeks firm FG and 4 additional weeks of material.
2. It shall be the responsibility of the supplier to control raw materials and reduce any possible
obsolescence exposure to Melling.
3. All obsolescence claims should be filed within two weeks of program end/change notification date.
4. Melling may review all claims and verify obsolescence before acceptance of claim.
5. The supplier’s claim form must be itemized, showing Melling item numbers, quantities, weights,
and at which stage each item has been processed.
8. Cost Savings
A. To foster continuous improvement activities within our supply base, Melling shall share the cost
savings on supplier initiated design and process improvements.
B. Productivity costs savings with yearly givebacks will be negotiated
9. Supplier Price Increases

A. If a Supplier price increase should become necessary, the following shall be required.
1. A complete product cost break down with itemized price changes and reasons, and pre and post
change invoices.
Page 20 of 24
2. A minimum (3) month notification on increase prior to effective date of proposed increase.
3. Melling approval is required prior to any price increases regardless of timing.
10. Supporting Documentation

A. Contact your Melling Purchasing and/or Procurement or Quality department to obtain electronic
copies of the forms referenced in this manual or will be added to the Melling website for download
in the future.
Page 21 of 24
11. Key Contacts Information
Melling Tool Company

2620 Saradan Drive
Jackson, MI 49204
Phone: (517) 787-8172
Fax: (517) 787-8928
Electronic Invoice Submission – Melling Tool Company only

[email protected]
Individual Phone ext. Position Office Location

John Shellberg (517) 936-2473 Purchasing Manager Jackson Manufacturing Plant
Tim Risner (517) 936-2513 Purchasing Sr. Buyer (MFG) Jackson Manufacturing Plant
Scott Abright (517) 936-2504 Purchasing Sr. Buyer (MFG) Jackson Manufacturing Plant
Carrie Fransted (517) 936-2482 Materials Planner (MFG) Jackson Manufacturing Plant
Lisa Parsons (517) 936-2486 Material Mgt Sup(Buy/Resale)Jackson Manufacturing Plant
Ann Brown (517) 936-2558 Purchasing Agent (Buy/Resale)Jackson Manufacturing Plant
Nancy Koch (517) 936-2465 Purchasing Agent (Buy/Resale)Jackson Manufacturing Plant
Mark Anderson (517) 936-2523 Sched. of Outside Processes Jackson Manufacturing Plant
Robert Adair (517) 936-2582 Production Manager (SGE) Jackson Manufacturing Plant
Jenny Ebersole (517) 963-2475 Purchasing / Scheduler (SGE)Jackson Manufacturing Plant
Steve Bioty (517) 936-2507 Inventory Manager Jackson Manufacturing Plant
Andy Collins (517) 936-2511 Director of Quality Jackson Manufacturing Plant
Kent Fiero (517) 936-2519 Quality Engineer Jackson Manufacturing Plant
Brad Smith (517) 936-2522 Quality Engineer Jackson Manufacturing Plant
Jim Updike (517) 936-2546 Quality Engineer Jackson Manufacturing Plant
Craig Babcock (517) 936-2532 Quality/Environmental Rep. Jackson Manufacturing Plant
Jessica Maye (517) 936-2537 QA Rec Insp (MFG) Jackson Manufacturing Plant
Ken Cope (517) 936-2495 QA Rec Insp (Buy/Resale) Jackson Manufacturing Plant
Jessica Lutz (517) 936-2464 Corp. Freight Manager Jackson Manufacturing Plant
Melling Industries
2720 Saradan Drive
Jackson, MI 49204
Phone: (517) 787-5484
Fax: (517) 787-4782

Rick Meyer (517) 936-2567 General Manager Jackson Manufacturing Plant
Tom Preston (517) 936-2562 Procurement Manager Jackson Manufacturing Plant
Roland Cook (517) 936-2570 Quality Engineer Jackson

Manufacturing Plant
Alex Walvacage (517) 936-2488 Quality Engineer Jackson Manufacturing Plant
Troy Smith (517) 936-2567 Accounts Payable Jackson Manufacturing Plant
Page 22 of 24
Melling Products North
333 Grace Street
Farwell, MI 48622
Phone: (989) 588-6147
Fax: (989) 588-6055

Dan Mullins (989) 544-5985 General Manager Farwell Plant
Lamont Corp (989) 544-5982 Purchasing Mgr Farwell Plant
Jacques Sylvain (989) 544-5989 Quality Manager Farwell Plant
Richard Devoe (989) 544-5961 Assistant Quality Manager Farwell Plant
Kim Tomaski (989) 544-5993 Materials Manager Farwell Plant
Page 23 of 24
Appendix A – Supplier Manual Acknowledgment Sheet
ACKNOWLEDGMENT SHEET
Please retain this sheet and return a signed copy to the appropriate contact, indicating that you have received,
reviewed, and accepted in principle the Supplier Manual content and code of conduct. All communications
with respect to the contents of this manual are to be addressed initially in writing to your designated
Purchasing and/or Quality Contact. If you have any comments or concerns, please note them below, prior to
returning your acknowledgement sheet copy.
COMMENTS: (Please Type or Print)
Supplier Name PDQ Tool & Stamping Company

Address 14901 Greenwood, Dolton, IL 60419
Telephone Number (708) 841-3000
E-mail Address (Please [email protected]
Type)
Authorized Signature Michael S. Gorz
Name and Title Mike Gorz – Director of Quality
Date Signed 8/3/22
Appendix B – Supplier Contacts

Supplier Contacts
Position Name Phone Email Address
Plant Manager Tom Miller (708) 841-3000 [email protected]
Quality Manager Mike Gorz (708) 841-3000 [email protected]
Sales Tom Miller (708) 841-3000 [email protected]
Materials Manager Tom Miller (708) 841-3000 [email protected]
Purchasing Tom Miller (708) 841-3000 [email protected]
Engineering Manager Phil Hayes (708) 841-3000 [email protected]
Warehouse Tom Miller (708) 841-3000 [email protected]
2nd Shift Contact N/A
3rd Shift Contact N/A
Conflict Minerals Contact Tom Miller (708) 841-3000 [email protected]
Customer Service Judy Chevalier (708) 841-3000 [email protected]
Accounts Receivables Tom Miller (708) 841-3000 [email protected]
Page 24 of 24

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PUR-MAN-0001

MELLING TOOL COMPANY

Supply Chain Vision Statement

Continually working to streamline communication using current and new

SUPPLIER MANUAL OUTLINE

B. Requirements for Supplier Approval

D. Advanced Product Quality Planning (APQP)

F. Manufacturing Process and PPAP Requirements

Drawing Documentation Recommended Control

A characteristic that has a Selection should be Document on Control method approved at

A characteristic where there is Those standard Control method approved at

For historical reference. May be referenced on older drawings

Ongoing Production Numbers

PQC Xp  1.67 Xp  1.33

Significant Samples Checked Noted on control plan and monitored during

I. Shelf life Requirements

J. Supplier Material Traceability/Lot Control

L. Notification of Customer Rejects/Corrective Action Reports

Phase CAR Sections Required Timing

4. DPPM’s and CAR’s will be reflected in your supplier rating.

M. Supplier Charge Back Policy

Description of fee Occurrence Timing Fee amount

B. Request for Change by Supplier

C. Request for Change by Melling

4. Environmental and Safety Management Systems

C. Packing Slips and Bills of Lading

10. Ship Schedules

9. Supplier Price Increases

10. Supporting Documentation

Melling Tool Company

Electronic Invoice Submission – Melling Tool Company only

Individual Phone ext. Position Office Location

Individual Phone ext. Position Office Location

Roland Cook (517) 936-2570 Quality Engineer Jackson

Individual Phone ext. Position Office Location

Supplier Name PDQ Tool & Stamping Company

Appendix B – Supplier Contacts

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