Supplier Quality Requirements - bhge.com

1 Level: L2 - Procedure Tier: GLB - Global Document Type: Procedure Sub Element: BHGE Sourcing Doc Number: BHGE-SOU-001 (EN) Rev: 1 Effective Date: 6 Aug 2018 Revision History Rev. RDR Amendment Detail Reviewer Approver Effective Date Current Revision 1 -- Initial Release Sarti, Luca (GE Oil & Gas) Cantini, Fabrizio (GE Oil & Gas) 6 Aug 2018 (EN).docx MA-GLB-En-100030B_BHGE Rev. C Copyright 2018 Baker Hughes, a GE company, LLC ( BHGE ) (unpublished work). All rights reserved. The information contained in this document is confidential and proprietary property of BHGE and its affiliates. It is to be used only for the benefit of BHGE and may not be distributed, transmitted, reproduced, altered or used for any purpose without the express written consent of BHGE.

2 Uncontrolled when printed or transmitted electronically Page 1 of 36 Baker Hughes, a GE company Confidential Supplier Quality Requirements TABLE OF CONTENTS Description of 1. 2. Purchase Approved Document 3. Specific Requirements for Direct Material Product, Process & Services Supplier Supplier Product Supplier Quality Record Sub- Supplier Inspection and Source Inspection and Test Witness Safe Work Supplier Supplier Acknowledgement Independent Validation / Product / Service Testing and Calibration Material Supplier Self-Release Non-Conformity Supplier Deviation Request (SDR).

3 12 Non-Conformities detected after Supplier s Cost of management of Change (MOC) ..14 Process Monitoring and BHGE-SOU-001 (EN) Rev: 1 Effective Date: 6 Aug 2018 Supplier Quality Requirements Uncontrolled when printed or transmitted electronically Page 2 of 36 Baker Hughes, a GE company Confidential Cyber Responsibility and Terms, Definitions and Annex A - Electronic-Qualification Annex B KOM Requirements for Process Assessment and Product Qualification Review .27 Annex C Manufacturing Process Plan (MPP) minimum Annex D - Product Quality Plan/ Inspection Test Plan (PQP/ITP) minimum Annex E First Article Inspection (FAI) minimum Annex F - List of Processes requiring.

4 29 Annex G - Technical Regulations and ..31 Annex H ..32 Annex I - Supplier Acknowledgement ..33 Annex J - BHGE Sourcing 34 Annex K- management of metallic raw material (TPS) Sub-tier 35 BHGE-SOU-001 (EN) Rev: 1 Effective Date: 6 Aug 2018 Supplier Quality Requirements Uncontrolled when printed or transmitted electronically Page 3 of 36 Baker Hughes, a GE company Confidential Purpose Baker Hughes, a GE company (BHGE) is committed to drive Quality excellence and customer satisfaction with products manufactured and services provided by BHGE or through its Suppliers and Sub-Suppliers. The purpose of this document is to establish a set of Requirements , procedures and practices pertaining to the Quality of products, processes and services purchased by BHGE.

5 The Requirements set forth herein will ensure a consistent and Quality -based relationship between BHGE and its Suppliers. This document can be found at the following website: Scope This document is part of BHGE s purchase order and it is fully applicable to Suppliers of direct products, processes and services used in BHGE delivered goods and services. All sections, with exception of section 3., are also applicable to Suppliers of indirect materials and services. Description of Activity 1. Communication The BHGE Sourcing Representative is the primary contact with the Supplier . The BHGE SQE is the Quality and technical contact and will be assigned as appropriate. Changes to purchase order Requirements shall not be accepted without a formal purchase order change, a change in the purchasing specification and/or applicable documents approved by BHGE, an approved Supplier Deviation Request (SDR) or through cleared nonconforming material reports.

6 All process or procedure forms ( SDR forms, frozen process change request forms, etc.) referenced in this document may be obtained from the appropriate BHGE Sourcing Representative. 2. Purchase Orders Approved Supplier To receive a BHGE production purchase order, a Supplier must be qualified per BHGE Quality management system procedures. Suppliers are qualified specifically for the products, processes and services they will provide to BHGE, as well as the site/location from which those products and/or processes/services will be provided. Document Review BHGE expects suppliers to review ordering documents to ensure that they know exactly what BHGE is asking of them, and that they can meet the specific Requirements before they commit to delivering a product, process or service.

7 If the information is incomplete, or there is ever any doubt or confusion, the Supplier shall contact the BHGE Sourcing Representative to resolve these issues before committing to deliver. BHGE-SOU-001 (EN) Rev: 1 Effective Date: 6 Aug 2018 Supplier Quality Requirements Uncontrolled when printed or transmitted electronically Page 4 of 36 Baker Hughes, a GE company Confidential 3. Specific Requirements for Direct Material Product, Process and Services Suppliers The diagram below outlines the process of BHGE Supplier Quality management . Supplier On-Boarding All BHGE suppliers need to go through the on-boarding process - as required by BHGE Quality management system procedures - to be issued a Global Supplier Listing Number (GSL).

8 Steps for Supplier On-Boarding may include the following: a) MNDA (where required); b) Evidence of Supplier Integrity Letter sent to Supplier (where required); c) Tax Documentation; d) Record of Approvals by authorized delegates; e) SRG Audit (where required). Supplier Qualification Once a Supplier is on-boarded, the evaluation of the Supplier will require Process Assessment and Product Qualification, as applicable based on BHGE defined criteria. This process will assess the Supplier s processes and capabilities to meet BHGE Requirements as defined by our Process Quality Requirements (PQR), Supplier Requirement Specification (SRS), Quality management system (QMS), Technical Regulations and Standard (TRS), Product Specifications, Product Safety and Health Safety and Environmental (HSE) Requirements .

9 Based on BHGE criteria, Process Assessment and, when required, a Product Qualification shall be required in the following circumstances: a) a new Supplier / Supplier location is to provide products, processes or services; b) a Supplier is to provide a product, process or service for which it is not yet qualified, or the qualification is expired; c) a Supplier changes a key element of their qualified product, process, or service provision ( , manufacturing location, critical processes, etc.); d) a new process assessment or product qualification is required for a disqualified Supplier (When requalifying a previously disqualified Supplier , the Qualification Team shall ensure that the issues that resulted in the Supplier s disqualification have been corrected prior to requalification).

10 BHGE-SOU-001 (EN) Rev: 1 Effective Date: 6 Aug 2018 Supplier Quality Requirements Uncontrolled when printed or transmitted electronically Page 5 of 36 Baker Hughes, a GE company Confidential Quality management system It is the responsibility of the Supplier to define and implement a detailed Quality management system that meets the Requirements set forth in this document, and ensures products, processes and services provided to BHGE conform to applicable BHGE specifications. Any applicable industry and regulatory standards (such as ANSI, AGMA, API, etc.) must also be included into the system . BHGE requires that this Quality management system meets the Requirements of ISO 9001 (latest edition) at a minimum and the evidence must be made available to BHGE for review upon request.