QUALITY MANAGEMENT SYSTEM

Terms and Conditions

General: As a supplier to Metro Aviation, Inc. (hereinafter Metro), it is understood when accepting our purchase orders, your organization agrees to the following Terms and Conditions.

While not required, it is encouraged that Metro’s suppliers have a quality management system to ensure high-quality outputs for our customers. Interactions with Metro personnel throughout the performance of the purchase order and any applicable warranties shall remain professional, timely, respectful, and transparent.

Metro’s purchase order will include the following information at a minimum:

• Items to be ordered, identified clearly
• Date of desired delivery
• Quantity
• Pricing

As applicable, Metro will communicate the requirements for:

• ensuring that each vendor-furnished part, article, or service conforms to Metro’s purchase order requirements;
• the approval of articles, procedures, processes, and equipment;
• the qualification of personnel;
• verification or validation activities that Metro, or its customer, intends to perform at external providers’ premises;
• the identification and revision status of specifications, drawings, process requirements, inspection/verification instructions, and other relevant technical data;
• design, test, inspection, verification (including production process verification), use of statistical techniques for article acceptance and related instructions for acceptance by the        organization, and as applicable, critical items, including key characteristics;
• test specimens (e.g., production method, number, storage conditions) for design approval, inspection/verification, investigation, or auditing;

Suppliers of Metro shall:

• keep documented information pertaining to Metro purchase orders for at least 5 years or in accordance with contractual requirements. Files that are required to be retained for 5 years may be removed/destroyed after the five-year period.
• use designated or approved external providers when specified by Metro, including process sources (e.g., special processes);
• notify Metro of nonconforming parts and/or articles and obtain organization approval for nonconforming article disposition;
• report to Metro Aviation within 24 hours if a part, article, or service has been released or provided from that vendor and subsequently found not to conform to the requirements set forth on the Purchase Order or Contract;
• notify Metro of changes in article and/or process, changes of supplier, changes of manufacturing facility location, and, where required, obtain organization approval;
• flow down to the supplier chain the applicable requirements, including customer requirements;
• prevent the use of counterfeit parts;
• ensure persons are aware of their contribution to product or service conformity, their contribution to product safety, and the importance of ethical behavior;
• ensure right of access by Metro, our customer, and regulatory authorities to the applicable areas of facilities and all applicable records involved in an order, at any level of the supply chain.

Metro performs inspection activities to ensure purchased materials, parts, or articles meet purchase order requirements.

• Receiving inspections are performed by designated personnel to verify the authenticity of the appropriate certificate of conformity, material certificates, etc. and other accompanying documentation and ensure they meet purchase order requirements. Inspection results are recorded. All special processes (i.e., welding, anodizing, etc.) where the compliance cannot be verified by inspections will require a Certificate of Conformity.
• At a minimum, quality and on-time delivery will be monitored by Metro.

Metro expects 95% on-time delivery. If the agreed-upon delivery date cannot be met, Metro must be notified in advance. Suppliers with consistently poor on-time delivery performance may be subject to corrective action.

Metro requires products and services from its Approved Suppliers to pass receiving inspection 95% of the time. Suppliers with consistently poor quality performance may be subject to corrective action.

Metro reserves the right to implement specific actions if timely and/or effective corrective actions to supplier issues are not achieved. These actions may include, but are not limited to: withholding payment until the issue is resolved, removal from Metro’s Approved Vendor List, and/or legal action.

Metro also reserves the right to implement specific actions if the required Supplier Quality Assurance Survey Report is not completed and returned in a timely manner. These actions may include but are not limited to: withholding payment until the Supplier Quality Assurance Survey Report is returned, suspension (for existing vendors/suppliers) or exclusion (for new vendors/suppliers) from Metro’s Approved Vendor List.