100-0044-007 Incoming Inspection Procedure - …

1 document Part No. Rev Page 100-0044 007 1 of 11 Incoming Inspection Procedure All printed copies of this document are uncontrolled document Control System contains the most current revision. PURPOSE To establish instructions for Incoming Inspection of specified materials. SCOPE & RESPONSIBILITY The scope of this work instruction is to list, document , and Reference the required Procedure for Incoming Inspection of material LOTS. The Engineering Manager is responsible for the maintenance of this Procedure . REFERENCES o ISO_2859: Acceptable Quality Limit (AQL) Incoming Inspection o NCMR Procedure QA-1069 DEFINITIONS Items exempt from Incoming Inspection shall be those that are not associated with the development, production, and/ or quality of manufactured finished good assemblies. Such items include: Office Supplies, Consumable, Janitorial Supplies, Educational Materials If sample size cannot be determined via the AQL II ( ), the ENTIRE LOT shall be inspected.

2 Unless otherwise specified via explicit Inspection requirements for a particular item, items flagged for Incoming Inspection shall be inspected to the following SAMPLING PLAN based on ISO 2859 AQL Incoming Inspection All Non-conforming Material must be tagged and processed per NCMR process QA-1069 procedures Note: ERP Locations and markings of physical locations are subject to change, shown only for reference. Inspect items for shelf life criteria (if applicable) - Receiving Flag items for Incoming Inspection - Engineering Materials purchased that have parameters and/ or requirements explicitly outlined in Purchase Specifications, Engineering Specifications, and/ or drawings shall be flagged at the ITEM MASTER level by engineering for Incoming Inspection prior to placing in inventory. Quality Control notified If flagged, QC Incoming personnel are notified via email notification that items have been received and are ready for Inspection .

3 Items to be inspected & Location Items are located near the warehouse receiving area on a shelf marked as QC Incoming material. ERP location: is QC-INCOMING_COP/ QC_INCOMING_FIB. Adhesive materials Located in the EPOXY PENDING APPROVAL cabinet located in the indoor fiber production area. ERP Location: QC-INCOMING_EPX. document Part No. Rev Page 100-0044 007 2 of 11 Incoming Inspection Procedure All printed copies of this document are uncontrolled document Control System contains the most current revision. Incoming Inspection Processing PO Receiving List Stored with the physical items in the warehouse Incoming Inspection staging area. List contains: 1. Incoming PO 2. Item Numbers 3. Received QTYs The Inspection operator shall obtain the PO RECEIVING LIST and applicable QTY of material to be inspected for the LOT from the staging area and bring the material to the Incoming Inspection quality area located on the east wall of the main production floor.

4 Inspection Procedure /Form/Specification The path to the applicable Inspection Procedure , record, and/ or purchase specification is shown below. Figure 1 Item Maintenance document Part No. Rev Page 100-0044 007 3 of 11 Incoming Inspection Procedure All printed copies of this document are uncontrolled document Control System contains the most current revision. AQL II ( ) Single Sampling Plan Normal Inspection Levels The sample code size chart and sampling plan level for NORMAL Inspection levels is provided in Table 1 and Table 2 on the following page. This sampling plan shall be used unless switching rules designate the use of REDUCED and/ or TIGHTENED Inspection levels. Disposition Criteria PASS 1. All units in LOT sample size pass Inspection requirements 2. Some nonconforming units are detected within the LOT sample size, but the quantity of non-conformances is less than the REJECT NUMBER indicated via the AQL SAMPLING PLAN.

5 FAIL 1. The number of nonconforming units exceeds the ACCEPTANCE NUMBER within the LOT sample size. Performing Inspection (Example) 1. The LOT quantity to be inspected is looked up in Table 1 and matched to the corresponding LETTER CODE for GENERAL Inspection LEVEL II (blue circle outline). If reduced or tightened Inspection , see Table 3 & Table 4. 2. Once the LOT LETTER CODE is known, the quantity to inspect for the LOT size is given in the left columns of Table 2. After locating the sample size to inspect for the LOT, the ACCEPTANCE NUMBER and REJECTION NUMBER for the sample size can be found by looking under the AQL column in Table 2 (blue circle outline) 3. The tables provided illustrate an Incoming Inspection example (red and green markings) for a LOT of 1,000 units pending Inspection . The LOT total is between 501 and 1,200 pieces (1,000) so the LETTER CODE = J via Table 1. Looking at Table 2, the sample size to be inspected for LETTER CODE J = 80 pieces.

6 4. For this sample size the maximum number of nonconforming parts allowed for LOT acceptance = 5 units or less (ACCEPTANCE NUMBER). If the quantity of nonconforming units = 6 or more (REJECTION NUMBER) the Inspection results in the rejection of the entire LOT. document Part No. Rev Page 100-0044 007 4 of 11 Incoming Inspection Procedure All printed copies of this document are uncontrolled document Control System contains the most current revision. Table 1 - SAMPLE SIZE CODE NORMAL Inspection LEVEL (with example) Table 2 - SINGLE SAMPLING PLAN NORMAL Inspection LEVEL (with example) ** Markings & arrows on above charts is for example purposes only. Sample size for Inspection will vary with LOT size document Part No. Rev Page 100-0044 007 5 of 11 Incoming Inspection Procedure All printed copies of this document are uncontrolled document Control System contains the most current revision. Incoming Inspection Result Recording Select Incoming Inspection menu from ERP Item Maintenance Menu: Activities/Stockroom Activities/ Incoming Inspection Figure 2 On the Inspection screen, enter the ITEM RECEIPT PO via PO RECEIVING LIST and browse to the applicable item: Figure 3 Select appropriate REASON CODE for EACH QUANTITY of units in the LOT SAMPLE that correspond to that REASON CODE for each disposition scenario listed in section of this Procedure .

7 The scenarios are outlined again below with the appropriate disposition methodology for each: document Part No. Rev Page 100-0044 007 6 of 11 Incoming Inspection Procedure All printed copies of this document are uncontrolled document Control System contains the most current revision. All units in LOT sample size pass Inspection requirements Select OK (Acceptable) REASON CODE and enter QTY for entire LOT SIZE (not the sample size). Perform MOVE TRANSACTION in ERP system for ENTIRE LOT quantity from QC- Incoming to QC-OUTGOING. Sign off and QC stamp or initial PO RECEIVING LIST and move items to QC-OUTGOING ERP location and mark physical material in QC-IONCOMING location with QA-1153 QC Outgoing Label. Apply label to ALL items to alert Material Services physical product is ready for inventory processing. Return PO RECEIVING LIST to receiving area. Figure 4 - QC Outgoing Label QA-1153 Figure 5 Some non-conforming units are detected within the LOT sample size, but the quantity of non-conformances is less than the REJECT NMBER indicated via the AQL SAMPLING PLAN.

8 Select the appropriate FAILURE MODE REASON CODE and enter QTY for the number of units demonstrating that FAILURE MODE. Perform MOVE TRANSACTION in ERP system for FAILURE MODE QTY from QC- Incoming to ME-DISPOSITION. In addition, Select OK (Acceptable) REASON CODE and enter REMAINING QTY for entire LOT SIZE (not the sample size). Perform MOVE TRANSACTION in ERP system for ENTIRE LOT quantity from QC- Incoming to QC-OUTGOING. Note Multiple FAILURE MODES may exist on a single LOT. Perform MOVE DISPOSITION for each FAILURE MODE QTY in SAMPLE SIZE before moving ENTIRE LOT BALANCE as OK. document Part No. Rev Page 100-0044 007 7 of 11 Incoming Inspection Procedure All printed copies of this document are uncontrolled document Control System contains the most current revision. Sign off and QC stamp or initial PO RECEIVING LIST and move items to QC-OUTGOING ERP location and mark physical material in QC-IONCOMING location with QC OUTGOING verbiage or uncontrolled label to alert Material Services physical product is ready for inventory processing.

9 Return PO RECEIVING LIST to receiving area. The number of nonconforming units exceeds the ACCEPTANCE NUMBER within the LOT sample size. Select the appropriate FAILURE MODE REASON CODE and enter QTY for entire LOT SIZE (not the sample size). Perform MOVE TRANSACTION in ERP system for ENTIRE LOT quantity from QC- Incoming to ME-DISPOSITION. Note Multiple FAILURE MODES may exist on a single LOT. Perform MOVE DISPOSITION for each FALIURE MODE QTY in SAMPLE SIZE. Sign off and QC stamp or initial PO RECEIVING LIST and move items to QC-OUTGOING ERP location and mark physical material in QC-IONCOMING location with QC OUTGOING verbiage or uncontrolled label to alert Material Services physical product is ready for inventory processing. Return PO RECEIVING LIST to receiving area. Figure 6 document Part No. Rev Page 100-0044 007 8 of 11 Incoming Inspection Procedure All printed copies of this document are uncontrolled document Control System contains the most current revision.

10 Special Cases SERVICE ITEMS Services purchased resulting in a measurable deliverable including CALIBRATION services shall be inspected by engineering upon receipt to ensure specifications of the requested service have been met. CUSTOMER SUPPLIED MATERIAL Unless specified by the customer, custom material provided without specifications shall be except from Incoming Inspection requirements and is to be evaluated via the final assembly product testing. FIRST LOT REQUIREMENTS The Incoming Inspection of material LOT from a new vendor (first LOT) shall be performed by a member of the engineering department to ensure no additional Inspection requirements are required for future LOT deliveries. TOOLING & EQUIPMENT Production tooling and equipment for production, quality, or engineering use shall be inspected prior to RELEASE through the Tooling & Equipment Commissioning Process (ENG-1070) Switching Rules for Reduced & Tightened Inspection Levels Those vendors classified as VERIZON APPROVED suppliers shall be subject to switching rules for Incoming product LOTS allowing for reduced Inspection levels or potentially tightened Inspection levels based on LOT acceptance performance.