SECTION 6 PURCHASING
GENERAL POLICY
Bold Technologies, Inc. assesses its suppliers and subcontractors and purchases only from those that can satisfy the company's quality requirements except where a unique part is required from a limited source. Quality performance of suppliers and subcontractors is continuously monitored. For limited source suppliers, incoming inspections are performed more critically. Purchasing documents clearly and completely describe ordered products, their preferred and alternate suppliers and include quality requirements. Purchasing documents are reviewed and approved prior to release.
PROCEDURAL POLICIES
1. Suppliers versus Subcontractors
1.1 Bold Technologies, Inc. differentiates between suppliers and subcontractors. Suppliers are defined as vendors who deliver their standard catalog products, while subcontractors are those who design and/or manufacture products from our drawings and/or specifications. Additionally, Bold's machine shop functions as an internally-operated subcontractor with its own inventory control system.
2. Responsibility
2.1 Assessment and quality performance monitoring of suppliers are carried out by the Purchasing department. Subcontractors are assessed and monitored jointly by Purchasing, Receiving and QA.
3. Assessment and Monitoring of Vendors
3.1 Quality capabilities and references of suppliers and subcontractors are assessed before orders for supply of materials, components, and services are placed. For suppliers or contractors supplying unique or limited source products, incoming inspection criteria are performed more critically and quality requirements more defined. Quality performance of all suppliers and subcontractors is continuously monitored. Vendors showing inadequate performance are asked to implement corrective actions, and are discontinued if there is no improvement. The system for assessing and monitoring vendors is defined in General Process Specification G9007, Supplier and Subcontractor Assessment.
4. Approved Supplier and Subcontractor List
4.1 Purchasing maintains a list of approved suppliers and subcontractors in the MRP II system. Engineers responsible for qualifying parts used in products specify approved vendors in Purchased Part Specifications (PPSs). Orders may only be placed with vendors that are on the list or, for unique or limited source products, may be approved by Design, Engineering and/or QA.
5. Purchasing Data
5.1 PPSs are prepared by Design, Engineering and Purchasing personnel. These documents include detailed product descriptions, approved vendors, substitute vendors, composition and dimensional specifications; they reference applicable standards, define quality inspection criteria, packaging and shipping requirements. The documents clearly and completely describe ordered products and are controlled by Bold Technologies's part numbers. The Purchasing Manager reviews and approves all purchasing documents prior to release under Change Order control.
5.2 Rules applicable to preparation, review, and approval of purchasing documents are provided in General Process Specification G9008, Purchasing.
6. Customer Verification of Purchased Product
6.1 Our customers are normally given the right to verify for themselves that the purchased products conform to specified requirements. Customer verification does not absolve us from the responsibility to deliver a quality product. General Process Specification G9008 contains further instructions regarding customer verification of purchased products.
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