Supplier Quality Management System - Graham Packaging

1 GLOBAL Quality . Supplier Quality Management System Manual A Corporate Overview Table of Contents Introduction 3. Company Overview . 3. GPC Global Supplier Quality Mission .. 4. Supplier Quality Management System .. 4. Supplier Standard Requirements 5. Supplier Audits 6. Supplier Changes / Modifications .. 6. Supplier Metrics .. 8. Financial Analysis .. 8. Service Level Agreements 9. Supplier Performance 10. Supplier Selection & Evaluation .. 11. Key Performance Indicators .. 11. Supplier Continuous Improvement .. 12. Problem Solving .. 12. Non-Conformance .. 12. GPC Complaints to Suppliers . 13. Continuous Improvement 14. 2of14. Introduction A Quality Focused Culture This manual describes, in a condensed format, how Graham Packaging Company (GPC) assures Quality Turbo Charged Growth services and materials from its suppliers. The manual Technology as a strategic advantage covers most of the main topics found in the Capital Competitiveness company's Quality Supplier Management System : Company overview and a summary of the Health, Safety and Environment systems in place to assure Supplier Quality .

2 GPC has a long-standing commitment to safety, Overview of the Supplier Quality Management health and the environment. The company is System . committed to: Be compliant with the Environmental The manual has two purposes: Policies of our Customers. If briefly outlines the company's Supplier Identify and respect laws and regulations. Quality standards for use by GPC employees Favor the individual responsibility through and suppliers. awareness, information and training of all It also provides an easy-to-follow overview GPC employees. of GPC's Supplier Quality systems for use by Identify all risks and potential suppliers and other interested audiences. environmental issues associated with our activities, by mean of systems that will allow us to reduce any potential identified Company Overview effects. Develop metrics and establish objectives Graham Packaging Company is a global leader in and targets, and review them periodically, the design, sale, and manufacture of value-added, in order to ensure the continuous adequacy custom blow-molded plastic containers for branded of our Environmental Management foods and beverages, personal care and specialty System .

3 Products, household products, chemical-based Prevent, by appropriate means, any risk of products, and automotive lubricants. Through accidental pollution. superior design, engineering, and technology, we provide our customers with innovative customer Provide and maintain safe and healthful Packaging that helps them build the value and volume working conditions, and to follow of their brands. operating practices that will safeguard employees, our products, customers, and the general public. GPC has identified strategic imperatives, which cascade into goals and objectives for every Business Process. The strategic imperatives are: Our suppliers are expected to have a similar commitment to safety, health and the environment. 3of14. GPC Global Supplier Quality Mission Suppliers are encouraged to go to the Graham Packaging Company website and review the Supplier Key Elements and Philosophy This program is designed to improve Supplier information.

4 Performance, reduce issues experienced at the plants, and reduce unnecessary costs experienced at GPC as This document can be found at the website a result of Supplier non-conformance. The cornerstone of the program relies on plant input and suppliers/ feedback in relation to Supplier complaints and performance discrepancies. General The strategy of the Supplier Quality Management Graham Packaging Company will work with Program is to work closely with Global Sourcing, suppliers to assist them with the goal of achieving Global Quality , Operations, and suppliers to compliance to the specifications. This is required establish, implement and maintain Supplier Quality of all suppliers who provide production goods and programs and relationships to ensure all materials, services to any of our locations. These services meet / exceed internal and external customer requirements supplement and are an extension to and manufacturing expectations.

5 The purchase order. All new suppliers must demonstrate that they are capable of meeting the performance specifications required. GLOBAL Quality . Additional Requirements The Supplier may expect other specific Supplier requirements in addition to the requirements of this Manual. If applicable, these requirements will be communicated to the Supplier through Graham GLOBAL BUSINESS. SOURCING UNITS. Packaging Company's Global Sourcing Department. In the event that a Supplier perceives a conflict between the needs of two or more Graham Packaging Company facilities, the Supplier should contact the Graham Packaging Supplier Quality Management Company Global Sourcing Department and request a determination of the applicable Graham System Packaging Company Standard. Purpose Governmental, Regulatory and Safety The purpose of this document is to communicate Constraints Graham Packaging Company 's ( Graham All materials and products must satisfy all current Packaging Company ) requirements for Supplier governmental, regulatory and safety constraints.

6 Quality conformance to companies that supply MSDS (Material Safety Data Sheet) must be in products and services to one or more Graham Graham Packaging Company's possession before Packaging Company facilities. any material arrives to a site location. 4of14. Supplier Quality Management Supplier Quality Management Program System Supplier Standard Requirements Product Safety The Supplier is responsible for ensuring that material delivered to Graham Packaging Company meets all applicable regulatory requirements and GPC standards associated with product safety. These requirements include but are not limited to cleanliness, hygiene, pest control, etc. Packaging Requirements and Shipping Identification Graham Packaging Company requires all suppliers to provide material Packaging that is The overall Supplier Quality Management Program is adequate to protect materials from damage or product degradation. Each container shall be comprised of various components.

7 The main clearly marked and identified with the following, consortium consists of: when applicable: The Supplier Quality Management System which Graham Packaging Company part number includes Supplier Standard Requirements, Supplier Purchase Order Number Quality Audit System , and Supplier Changes /. Date of manufacture Modifications. Quantity The SQM Metrics which utilizes financial analysis, Supplier evaluations, Supplier selection, service level Lot control number agreements, and KPI measurements. Bar coding (if required). The Supplier Continuous Improvement category Graham Packaging Company reserves the right to encompasses problem solving, non-conformance, require specific Packaging practices such as complaints, and continuous improvement activities. allowable packing materials, bag-in-bag Packaging and restrictions on Packaging size. These requirements are communicated through Each of these items is described in further detail within engineering specifications, technical documents, this document and in various breakout manuals and/or Purchase Order requirements.

8 Associated with the overall Supplier Quality Management Program. 5of14. Record Retention Guidelines Quality System Audit Quality records and material supply records A Quality System site audit may be required prior should be kept and made available to Graham to issuance of the initial purchasing agreement. Packaging Company if requested. GPC This survey will be conducted by a Graham suggests that minimum record retention be Packaging Company representative(s) and will identical to the guidelines identified in the ISO verify the existence of a Quality System and 9001:2000 Standard. If you would like more disciplines necessary to meet Graham Packaging precise retention requirements, contact the Company's requirements. Graham Packaging Graham Packaging Company Manager, Global Company reserves the right to assess current Supplier Quality . suppliers, as a result of a Supplier 's Quality performance, when there is a change in the Supplier 's facility processes, a change in Supplier Quality Audit System ownership, a significant change in the nature of the product previously supplied, or as part of Graham Packaging Company's Supplier Quality Global Sourcing Contact Program.

9 All requests to become a new Supplier for Graham Packaging Company must go through the Global Sourcing Department. The pertinent Supplier Changes /Modifications Global Sourcing member will initially assess any business opportunities that may be of mutual interest, and will initiate the process for Material Supplier Change Control Policy and approval. Procedure Suppliers are required to identify any change in: Supplier Quality System Self-Assessment product formulation, A potential Supplier must complete the Supplier basic product components, Quality System Self-Assessment Questionnaire physical properties, in order to provide Graham Packaging Company chemical properties, with a general understanding of their Quality product identification, System . When complete, the assessment must be forwarded to Graham Packaging Company's manufacturing process, Manager, Global Supplier Quality . Existing manufacturing location, suppliers may be asked to complete a Quality supply, self-assessment as part of Graham Packaging status, Company's Supplier Quality Program.

10 Product withdrawals, company ownership, etc. 6of14. The Supplier is obligated to provide written Sourcing Department and the Manager, Global notification of a proposed change to the Graham Supplier Quality . This includes items specified by Packaging Company Global Sourcing Department a Graham Packaging Company customer as well and the Manager of Global Supplier Quality as as materials procured directly by Graham soon as the potential change or modification is Packaging Company. Once the submittal is identified by the Supplier . This is to allow reviewed and deemed reasonable, it is to be adequate time for Graham Packaging Company to qualified at the facility before it can go into full perform the necessary internal reviews, customer production. The facility is required to perform the testing, and written approval for the change. full qualification and verify the new supply is acceptable. Engineering Change Request If the Supplier has a concern or suggestion that Deviations can be resolved only with Engineering assistance, There shall be no deviations to Graham Packaging a complete description, accompanied by Company Engineering drawings, specifications or supporting documentation, should be submitted to other Graham Packaging Company requirements the Graham Packaging Company's Manager, without written approval and/or deviation from Global Supplier Quality .