Ryobi Die Casting (USA), Inc.

Supplier Quality Manual
Striving to Maximize Customer Satisfaction Thru
Mutually Beneficial Relationships

Ryobi Die Casting (USA). Inc.
(EXE) Supplier Quality Manual

Revision: 05/20/2020

1.0…………………………………………………………………. Overview
1.1……………………………………….….Statement of Purpose and Intent
1.2……………………………………………………………..… Application
1.3…………………………………………… Validation of Supplier Quality
2.0…………………………………………..…… Supply Base Management
2.1.………………………………………..….. Organizational Responsibility
2.2………………………………………..…………………... New Suppliers
3.0………………………………………..…………………Quality Planning
3.1……………………………………....Advanced Product Quality Planning
3.2………………………………………..………………….. Prototype Parts
3.3………………………………………..……………………………. PPAP
3.4………………………………………..………. Submission Requirements
3.5……………………..….. Process Flow Diagram; PFMEA & Control Plan
4.0…………………..………………………. Ongoing Quality Requirements
4.1………………….... Material Certifications & Certificates of Compliance
4.2………………………………………………...SPC & Process Capability
4.3………………………………………………... Nonconforming Material
4.4…………………… Containment of Nonconforming Material at Supplier
4.5.………………………………………Delivered Nonconforming Material
4.6 …………………………….……Disposition of Nonconforming Material
4.7 …………………………………………………………..….. Chargeback
4.8…………………………………………...…. Supplier Corrective Actions
4.9………………………………………………Structured Problem Solving
4.10…………………………………Material / Process / Equipment Changes
4.11 …………………………………………………….Packaging / Labeling
5.0…………………………………………………….. Supplier Performance
5.1…………………………………………………………………… Purpose
5.2……………………………….……………On-going Quality Registration
5.3…………………………………….… Frequency of On-Site Assessments
5.4………………………………………………………. Performance Rating
5.5………………………………………………………… Certified Supplier
5.6…………………………………… Unsatisfactory Levels of Performance
5.7………………………………………………………….. Supplier Awards

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1.0 Overview
Outsourcing is a necessary means of remaining competitive in the global
economy. Organization’s can significantly reduce costs by partnering with
suppliers capable of generating products and services from locations thathave lower labor, material, infrastructure and maintenance costs and by
shortening time to volume.
Outsourcing also gives organizations access to an abundance of humanresources, localized skills and knowledge, unique patented supplies andsupply chain efficiencies when products are shipped directly to customers.
To deliver on its full potential, outsourcing requires careful planning andexecution. Without due diligence and appropriate controls, outsourcing
could end up being costlier than in-house manufacturing or service, resulting
in high defect rates, late deliveries, poor service and customer dissatisfaction.

1.1 Statement of Purpose and Intent

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A total commitment to customer satisfaction and continuous quality
improvement must be shared by Ryobi Die Casting (USA), Inc. andall our suppliers. As part of the supply chain, together we must
maintain effective quality management systems if we are to remaincompetitive in the marketplace. Ryobi Die Casting (USA), Inc. quality
is complemented by the combined efforts of our suppliers.
It is the intent of Ryobi Die Casting (USA), Inc. to purchase fromsuppliers who consistently meet our expectations for quality, delivery,
value and service. This manual is a tool to inform suppliers of Ryobi
Die Casting (USA), Inc. expectations and how they will be measured
against these requirements. The requirements set forth in this manual
shall apply to raw material, components, and outside processing
suppliers that provide direct product or services that are supplied to
Ryobi Customers.
1.2 Application
The requirements stated in this manual do not replace or supersede
any of the purchase order, engineering drawing or specification
requirements. They do not relieve the supplier from the responsibilityof ensuring that all materials and services supplied meet all of therequirements specified by Ryobi Die Casting (USA), Inc.
1.3 Validation of Supplier Quality Systems
As a supplier to the automotive industry, Ryobi Die Casting (USA),
Inc. adheres to the requirements of ISO/TS 16949:2002 as thefundamental quality management system standards. Ryobi Die
Casting (USA), Inc. requires suppliers to be third party certified to
ISO 9001:2000 or ISO/TS 19649:2002 depending on end customer
specific requirements. Some programs may require adherence, atminimum, or certification to the sector specific application (ISO/TS
16949:2002).
Ryobi Die Casting (USA), Inc. recognizes American Association forLaboratory Accreditation (A2LA) or ISO 17025 in lieu of the abovereferenced standards for laboratory and calibration services.
The Quality System Requirements of ISO 9001:2000 and ISO/TS
16949:2002 can be obtained from the Automotive Industry Action

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Group (AIAG) located at 26200 Lahser Road, Suite 200, Southfield
Michigan 48034.
To assure Ryobi Die Casing (USA), Inc. expectations are met, on sitesurveys, self-surveys and supplier profile information may berequested from potential or current suppliers. Other disciplines
subject to evaluation via on-site surveys may include, but are notlimited to, management structure, cost, delivery, technology, and the
supplier’s expertise in Lean/Synchronous production techniques.
2.0 Supply Base Management
2.1 Organizational Responsibility
All raw material, components and services are managed thru Ryobi
Die Casting (USA), Inc. purchasing structure. Under this structure,each raw material or component is assigned an internal Ryobi partnumber, to ensure consistent sourcing considerations across all
suppliers providing said part number. The Purchasing Department is
responsible for establishing a list of suppliers approved to submit
quotes, awarding new business, and establishing commercial terms
and conditions.
2.2 New Suppliers
A new supplier is a company that has never done business with Ryobi
Die Casting (USA), Inc. or a past supplier who has not supplied
product within the last two years. All new suppliers must be qualified
prior to the awarding of new business. The complete list of current /approved suppliers resides in Epicor ERP System. This list is
maintained by the Purchasing department. Vendor Master ERP data
is updated when a supplier’s information changes.
3.0 Quality Planning
3.1 Advanced Product Quality Planning
Product quality planning is a structured method of defining andestablishing the steps necessary to assure that a product satisfies thecustomer.

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Suppliers are encouraged to become involved early in the productdevelopment process. Suppliers are responsible to understand the userof their material and its impact on the quality of the finished product.
All aspects of material performance and expectation should be clearly
understood by the supplier. Suppliers shall implement projectplanning techniques to ensure timely delivery of material orcomponents and achievement of program cost and timing goals.
In matters dealing with quality planning such as sample submissions
for new or revised tooling and processes the associated AIAG “CoreTool” reference / supplements are to be followed: PPAP, APQP;PFMEA supplements.
3.2 Prototype Parts
Prototype parts or sample material may be required for functional
testing and plant trial run purposes. Facility personnel will coordinate
requirements with suppliers.
3.3 PPAP
Ryobi Die Casting (USA), Inc. follows the AIAG Production Part
Approval Process (PPAP) for validation of all purchased material
required for production applications. The PPAP manual is necessary
to understand and comply with submission requirements. Additional
information on PPAP requirements may be obtained from the facility
quality assurance representative. PPAP submissions are to besubmitted to the facility Quality Department.
Customer specific requirements are in addition to any Ryobi Die
Casting (USA), Inc. or AIAG requirements and take precedence.
Suppliers are responsible to keep up to date with any and all end
customer specific requirements.
3.4 Submission Requirements
The default submission level will be to AIAG PPAP manual level – 3
requirements. The facility has the option to change the submission
level requirements. Ryobi Die Casting (USA), Inc. requires that all
PPAP documentation be completed and available for review,
regardless of the submission level requested.

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Once the PPAP submission has been approved by Ryobi Die Casting(USA), Inc. product shall be functionally tested and validated. Finalapproval results in the part / process considered production ready andongoing supplier performance measurement and maintenance is inaccordance with the performance measurement section of thisdocument.
3.5 Process Flow Diagram; PFMEA and Control Plan(s)The supplier shall author a Process Flow Diagram, Process Failure
Mode and Effects Analysis and Control Plan for each material /component it provides Ryobi Die Casting (USA), Inc. in accordance
to guidelines and requirements specified in the AIAG core tool
manuals and any customer specific requirements.
The Process Flow Diagram shall describe the production process steps
and sequence, as appropriate. For bulk materials, an equivalent to a
Process Flow Diagram is a Process Flow Description.
The supplier shall author a Process Failure Mode and Effects Analysis
to determine potential failure modes / points within the manufacturing
flow processes in order to control / limit associated risk.
A Control Plan shall be authored by the supplier as countermeasure to
the identified potential failure modes associated with the
manufacturing process.

4.0 Ongoing Quality Requirements
4.1 Material Certifications and Certificates of ComplianceApproved suppliers may be required to submit certificates ofcompliance or material certifications with each shipment ofmaterial. These certificates should state actual test results or
measurements for each characteristic listed on the purchasing
specification or blueprint or Ryobi provided inspection criteria.
The material certification is to identify the purchase order, lot orbatch and specific quantity of material covered by the certification.

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The Material Certification is to be provided to Ryobi Purchasing
before or at the time of material arrival. When not required to sendmaterial certifications, the supplier will maintain records ofmaterial compliance at the supplier facility the records shall bemade available upon request by Ryobi Die Casting (USA), Inc.
4.2 SPC and Process Capability
Statistical Process Control information may be required to besubmitted to Ryobi Die Casting (USA), Inc. on a regular basis assupporting verification of material quality.
Significant Characteristics identified by specifications orcomponent prints or other Quality Acceptance Criteria shall berecorded and monitored with out-of-control conditions noted andacted upon. Suppliers shall ensure that out-of-control material isverified as compliant to specifications before release for shipment
to Ryobi Die Casting (USA), Inc. Special causes of variation
should be investigated, identified and eliminated.
Where applicable, Cpk shall be calculated and monitored to ensure
long-term process capability of material supplied. Suppliers shalltarget a minimum Cpk of 1.67 to ensure production with minimal
variation. Other measures of long-term capability and stability ofmaterial will be considered on a case-by-case basis depending on
the type of process and risk level of the material(s) provided.
4.3Nonconforming Material
Suppliers are obligated to inform Ryobi Die Casting (USA), Inc. of
nonconforming or suspect material that may be in transit or alreadydelivered. Product approved by means of measurement found to beout of calibration status constitutes “suspect” condition and shouldbe treated as such. Such action is appreciated by Ryobi Die Casting(USA), Inc. and will reduce the severity of the quality incident.
Communication should be to Ryobi Die Casting (USA), Inc.
Quality Manager/Engineering or Purchasing Department Manager.
4.4Containment of Nonconforming Material at Supplier Facility
Nonconforming material shall be immediately contained by the
supplier and be re-inspected. If the defect root cause is not

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immediately evident, the supplier is obligated to implement a
100% inspection of subsequent material shipments to Ryobi Die
Casting (USA), Inc. Recurrence of the defect in subsequent
shipments will require containment and 100% inspection of allmaterial until such time it has been determined that the defect ispermanently corrected, and corrective actions have been accepted
by Ryobi Die Casting (USA), Inc. The supplier is to propose amethod, and to obtain agreement on, identification of inspectedmaterial (certified shipments) with Ryobi Die Casting (USA), Inc.
Quality Department personnel.
4.5 Delivered Nonconforming Material
Suppliers are expected to react immediately and authoritatively tocontain the nonconforming material and ensure the impact on
Ryobi Die Casting (USA), Inc. production in minimal. Ryobi Die
Casting (USA), Inc. has the option to request assistance from the
supplier for on-site inspection of non-conforming material at either,or both, Ryobi Die Casting (USA), Inc. and the end user facility.
Nonconforming material will count against the supplier’s quality
performance score and PPM rating. Quality performance will be
communicated to the supplier through the Supplier Performance
Report provided by the Purchasing Department.
4.6 Disposition of Nonconforming Material
Ryobi Die Casting (USA), Inc. utilizes a structured system toidentify, contain, and disposition supplier nonconforming / suspectmaterial. A multi-discipline team convenes as necessary toevaluate the risks of using the nonconforming material andconsider the impact on the production schedule and customer
delivery.
4.7Chargeback
If shipment of nonconforming product results in Ryobi Die Casting(USA), Inc. being required to implement containment andinspection actions, the supplier is held responsible for the cost oflabor, material handling and rejections.

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If such containment action is required, the supplier will becontacted for approval to:
1. Sort parts in house (use of Ryobi personnel will not
alleviate supplier cost)
2. Use a third party sorting source at supplier’s expense
3. Scrap parts in house
4. Return product to supplier at suppliers expense via method
and carrier of supplier choice

4.8 Supplier Corrective Action Requests
Ryobi Die Casting (USA), Inc. will issue a request for corrective
action when a delivery or quality issue occurs. Issued suppliercorrective actions impact the suppliers’ performance rating. Issues
requiring a response from the supplier will be communicated to the
supplier in a timely manner. Suppliers are expected to use a structured
problem-solving technique to generate a timely response withcorrective actions that permanently eliminate the root cause of thedefect. Structure responses are expected in common electronic format
and should be submitted via e-mail to the appropriate Ryobi Die
Casting (USA), Inc. personnel.
4.9 Structured Problem Solving
Structured problem solving is a given standard within the automotive
industry and suppliers to Ryobi Die Casting (USA), Inc. are expected
to implement and support a system of structured problem solving.
Suppliers are welcome to use their systems or the Ryobi Die Casting(USA), Inc. system as long as a cross-functional team is able toidentify the root cause of a problem and implement permanent
corrective actions. The root cause definition should include the“process” root cause (How did the nonconformance occur) and the“non-detect” root cause (How did the nonconformance get shippedfrom the supplier facility). Suppliers should evaluate the effectivenessof the corrective actions for long-term system support within theirorganization.
4.10 Material / Process / Equipment Changes

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Ryobi Die Casting (USA), Inc. expects our suppliers to demonstrate
an effective change management process to ensure changes do not
adversely affect material quality of operational process efficiency /effectiveness. All potential changes should be requested in writing andmust have the approval of appropriate Ryobi Die Casting (USA), Inc.
personnel. Best approach is “When in doubt, seek guidance out”.
Ryobi Die Casting (USA), Inc. may require test samples for plant trial
run requirements prior to implementation. Failure to seek approval forchanges negatively impacting material could result in “chargeback”
actions taken (see section 4.8). Upon review of the request forchanges, the supplier will be notified of PPAP submission
requirements of approval with waiver.

4.11 Packaging / LabelingLabeling requirements are developed as output of Advanced ProductQuality Planning activities and are agreed upon prior to delivery ofmaterial. Ryobi Die Casting (USA), Inc. Purchasing department
personnel will work with the supplier to develop packaging
specifications, quantities and label identification requirements formaterial safety, accuracy in performance reporting, quality issue
containment practices and logistics information requirements.
Suppliers should suggest to Ryobi Purchasing department personnel
label content requirements to minimize impact on suppliercontainment activities/quantities while maximize traceability
effectiveness.
5

Supplier Performance
5.1 Purpose
The purpose of providing supplier performance feedback is tocommunicate to suppliers Ryobi Die Casting (USA), Inc. assessmentof their performance so that appropriate improvements can be
implemented. Feedback also provides an internal measurement system
in order to better evaluate and manage our supply base along withassisting in determining new business awards.
5.2 Ongoing Quality Registration

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Suppliers are responsible for maintaining current ISO 9001-2000 or
ISO/TS 16949:2002 registration if they supply items affecting productquality. Evidence of current registration must be presented prior to the
supplier being approved and entered into the approved supplier list.
Suppliers are responsible to provide evidence of current registration toensure that a lapse does not occur. This evidence must be supplier to
Ryobi Die Casting (USA), Inc. Purchasing department annually.
5.3 Frequency of On-Site Assessments
Supplier performance feedback will be provided to current suppliers
on a quarterly / annual basis, where applicable. Overall performanceof suppliers assists in determining assessment visitation requirements.
Suppliers demonstrating and maintaining an “Excellent” rating will
be scheduled for management system assessments as needed.
“Marginal” ratings may require more frequent partnershipcooperation in successfully minimizing risk to Ryobi Die Casting(USA), Inc.
5.4 Performance Rating
Suppliers are rated with respect to their quality and delivery
performance. Ryobi Die Casting (USA), Inc. utilizes statistical data toprovide an objective performance rating for critical suppliers andidentify action requirements for unacceptable levels of performance.
Quality and delivery performance will be based on total accepted /delivered items divided by total received and multiplying by 100. A
PPM (Parts per million delivered) level will be based on total numberof parts rejected divided by the total number of parts shipped andmultiplied by 100. This number is reflected as a percentage in the
supplier performance report. The overall critical supplier performance
rating is obtained by combining the Quality/Delivery and PPM
performance percentage ratings. Alternate rating methods may be
used based on the product/service provided by the supplier.
5.5 Certified Supplier
Ryobi Die Casting (USA), Inc. wishes to certify suppliers, whereappropriate, so as to minimize continual verification of incoming
purchased product. Certain supplier incoming quality will bemonitored on an ongoing basis until such time as Ryobi Die Casting

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(USA), Inc. incoming quality inspection requirements validate thedirect release of products supplied.
Suppliers placed on “Certified” status by Ryobi Die Casting (USA),
Inc. may be asked to provide Material Certifications and/or
Certificates of Compliance (see section 4.1).
Critical suppliers can obtain “Certified” status by deliveringconsecutive shipments with no quality or delivery issues. Suppliers
may become disqualified from “Certification” status for any rejectionof product at customer plant operations, any discrepancies identified
during a performance reporting period, any missed shipments during aperformance reporting period and any end customer complaint.
5.6 Unsatisfactory Levels of Performance
A supplier with an “Unsatisfactory” level of performance will be
notified in writing of the necessary corrective action requirement from
Ryobi Die Casting (USA), Inc. Purchasing department. Consecutive“Unsatisfactory” levels of performance will require a formal
corrective action plan with a specific timetable to improve theperformance rating. In the event a critical supplier is responsible for aquality spill involving end customer disruptions and/or field return, aformal Corrective Action Request will be issued with report out on
identification of causal factors and countermeasure implementation
performed at the customer location.
In the event the formal corrective action plan is not acceptable, or the
rating does not improve within the agreed time frame, the supplier
may be prohibited from receiving new purchase orders until there is
resolution.
Suppliers who demonstrate unwillingness to achieve mutual agreeable,
satisfactory and effective corrective action countermeasures, or
continue to maintain an “Unsatisfactory” level of performance, may
be removed from the approved supplier listing.
5.7 Supplier Awards/Recognition
Ryobi Die Casting (USA), Inc. will recognize suppliers withoutstanding quality and delivery performance through additional
program awards and incremental volume.

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Revision: 05/20/2020