Fundamental principles of our collaboration

1.1 Purpose

Given the heightened competition at national and international level, high quality plays a decisive role. As our production relies on suppliers of finished parts to a great extent, the quality of our suppliers is an integral component of Bizerba product quality. We therefore expect timely delivery with high-quality, defect-free and environmentally compatible products at competitive prices.

The flawless state and reliability of all supplied parts, materials and services as well as demonstrable process and quality capability play a significant role in enabling Bizerba to achieve its ambitious targets with regard to quality.

Our principle is: avoid errors right from the start, rather than correcting them later. We thus pay attention to effectively avoiding the emergence of errors through partnership-based cooperations early as the production development phase. This is achieved through superior process capability and continuous improvement of all processes in the supplier chain, because only monitored and effective processes guarantee flawless products.

We have set ourselves the task of working with our suppliers to establish secure and robust processes and to avoid wasting time, materials and other resources. This handbook is not a strict set of rules, but rather outlines our requirements of our suppliers. It is based first and foremost on the industry’s requirements for quality assurance.

1.2 Area of application

The handbook sets out how suppliers and Bizerba should act in order to guarantee the quality of the materials, parts or services supplied. It is based on the series of standards DIN EN 9000ff., conventional industry standards and the relevant environmental protection standards.

This handbook also contains conditions, procedures and processes which supplement the purchasing framework agreements and/or all other contracts (e.g. quality assurance agreements). It applies to all business relationships between Bizerba and its suppliers. In case of discrepancies, the contents of a quality assurance agreement will take precedence over the rules of the purchasing framework agreement and other contracts, provided this does not concern individual agreements.

Bizerba expects that all suppliers implement the procedures and methods outlined and meet all specific requirements in full. Suppliers are jointly responsible for their own products and thus also for the quality of Bizerba products.

1.3 Agreement of objectives

Bizerba basically expects adherence to its zero-defect principle. All suppliers are obliged to anchor this objective in their quality management systems and to align all processes with it. Bizerba will specify particular instructions in individual cases and, where necessary, review the achievement of objectives by means of periodic comparisons of the actual and target situations. Where targets are not being met, measures should be taken by the supplier.

Quality capability demands that every Bizerba supplier makes use of a contemporary and effective quality management system. These include:

• ISO 9001:2000 as a minimum requirement
• ISO/TS 16949 2002
• QS 9000; VDA or equivalent as accepted requirements

Suppliers who do not fulfil the minimum requirements from ISO 9001:2000 or who do not plan to further develop their system may be subject to a system audit by Bizerba. If the level of fulfilment is over 90 percent, the supplier may still be accepted.

The contractor guarantees that all supplied products are manufactured and tested in line with the rules and requirements of the quality management system. The contractor is responsible for ensuring that these requirements are compatible with its quality management system.

As a minimum requirement, the contractor will adhere to the statutory regulations and standards regarding the environmental compatibility of the product. Bizerba recommends the introduction of an environmental management system according to DIN 1400.

The supplier will oblige its sub-suppliers to implement and maintain a comparable quality management system in line with the requirements stipulated above. Their purchased parts and/or externally finished parts must also be guaranteed to be in a flawless state. Bizerba can demand documented proof from the contractor that the supplier has verified the effectiveness of the quality management system of its sub-supplier. Should quality issues caused by primary products or parts arise, the supplier will ensure that Bizerba can carry out an audit among its sub-suppliers if requested.

4.1 Audit

With certified suppliers, Bizerba will generally not carry out a system audit, but will limit its efforts to a process and/or product audit where necessary. As part of a process audit, Bizerba will observe and review the process chain (planning, development and manufacture) of a product. The result gives insights into the quality capability of the supplier. Where discrepancies (defects) have been identified, the supplier must develop a plan of action to eliminate the defects and agree such a plan with Bizerba.

Bizerba can verify the implementation of the quality assurance measures stated in this agreement by means of an audit. To this end, the contractor must, to a reasonable extent and given advance notice, provide access to its premises and make a technically qualified member of staff available for the period of the inspection. Results of audits are treated confidentially. The contractor may refuse to provide insights into secret manufacturing processes and other company secrets.

4.2 Assessment

Results and findings from the audit are assessed according to Bizerba guidelines and classified according to the following ratings:

• A (>= 90%)The supplier is approved for supplies to Bizerba without limitation.
• AB (>= 80%)The supplier is approved with limitations. It is obliged to remedy the discrepancies identified in the audit within a set period of time.
• B (>= 60%)The supplier is approved for supply in exceptional cases only. It must remedy the discrepancies identified in the audit within a set period of time in order to achieve at least AB classification.
• C (< 60%)The supplier is not approved for supplies.

Supplier approval legitimises the supplier with regard to its quality capacity only. Product approvals take place within the context of the approval and sampling procedure defined by Bizerba.

In order to base a collaboration between a supplier and Bizerba on a long-term, trusting and partnership-based footing, Bizerba draws up quality assurance agreements (QAAs) with selected suppliers. These are based either on all products supplied or on individual products/product groups (product-specific section).

The QAA governs the general and individual collaboration between the supplier and Bizerba. It supplements the purchasing conditions with aspects that guarantee the required product quality. The quality assurance agreement is concluded with the supplier and signed by both parties before the contract awarding process.

It is part of Bizerba’s basic philosophy that suppliers should be involved in the development process as early as possible – particularly when it comes to application-specific components.

The advantages of joint development and cooperative collaboration from the product development phase to the start of series production include shorter development times as well as solutions that are ideal for both partners in both a qualitative and commercial sense. In the development phase, potential sources of error can be avoided and replaced by stable and effective processes. The joint objectives are:

• reducing development time and costs
• realising cost-effective product solutions
• reducing the risk of error
• ensuring series production starts on time with technically fully-developed products
• avoiding product liability risks

To this end, the supplier should exchange all information necessary for implementation with Bizerba in the context of the development partnership. Such information should be treated in the strictest confidence and must not be passed on to third parties. This includes:

• specifications
• drawings
• requirement or functional specifications
• characteristics for functions

The supplier can make the following contributions:

• suggestions for the avoidance of potential errors
• cost reductions and product improvements
• feasibility studies
• design reviews, tests, verifications
• FMEAs of all kinds
• process planning
• process capability and qualifications
• QM plan
• testing and operational tools planning

The basis of collaboration on product development is professional project management for both parties.

When developing parts and processes for Bizerba, the supplier must stick to a specified planning and approval process in accordance with the VDA 4.3 and/or similar regulations. This includes providing all services punctually and successfully. Bizerba has the right to audit the planning and approval process of the contractor as well as the prerequisites of the supplier.

When submitting the offer, the supplier must also provide a feasibility study in connection with a general development plan. Alternatively, or in addition, consignment of the relevant products/the relevant components is possible based on the information supplied by Bizerba.

For products and processes that the supplier develops or produces for Bizerba, a joint report form for the planning and approval process is completed. The supplier should also name a contact person for Bizerba projects who will be available for the project team on request.

8.1 Metrology system study

Before the supplier can supply series components, the capacity of the testing equipment must be proven in a repeatability and reproducibility study (R & R study). This can take place, for example, according to the rules of the VDA 5 or similar methods.

8.2 Machine capability

All machines and measuring tools used must be fit for purpose. The Cmk values that apply to the machines/devices used must be identified either by the supplier itself, or by machine or appliance manufacturers. For Cmk values under 1.67, correctional measures should be implemented and documented.

8.3 Process capability

Effective and controlled processes must be used for the manufacture of all components – which must be ensured through careful process planning for the product. A Cpk value of 1.33 always applies, which must be proven for the selected parameters/measurements in relation to the initial sampling.

For parameters/measurements below the Cpk value of 1.33, correctional or other necessary measures (for example 100% initial testing) must be introduced and presented in order the guarantee the required delivery quality. Particular attention should be given to the specification of identified test statistics in this regard.

For quality assurance purposes, all Bizerba suppliers are required to carry out a requalification of components. If no parts are supplied for a period of one year, the approval issued is deemed invalid. The supplier must then apply for renewed qualification and approval by means of initial sampling.

10.1 Initial sampling

The supplier must carry out initial sampling in a timely manner before series approval. Provided that it is not otherwise agreed, the template of the corresponding test report must comply with the Bizerba guidelines, which are based on VDA vol. 2. The supplier must document all technical requirements of the delivery specification/drawings. Regardless of the product, the initial sample test report should contain the following documents:

• completed and signed cover sheet
• copy of the Bizerba drawings/delivery specification/specification book
• up-to-date drawings with numbering of all characteristics in a comprehensible sequence
• test report with all target and actual measurements
• material report with all material target and actual values
• functional report (qualification results, final test reports for electrical parameters)
• process sequence plan with details of the location(s)
• proof of manufacturing capacity (process capability, machine capability)
• QM plan/control plan
• certificates for harmful substances (EC safety data sheet)
• concession for deviating characteristics (to be obtained from Bizerba in advance)

If nothing else has been agreed, for the statistical assessment of the test and measurement results, 100 parts should be produced and 25 of those subjected to testing. Test statistics are agreed specifically. The initial samples, including all agreed documents, are to be delivered to Bizerba in their own packaging, labelled with a coloured sticker that reads “initial samples”.

10.2 Approval

Bizerba will examine the initial sample test report for completeness and adherence to the requirements. Where necessary, features will be retested. Incomplete test reports that show non-approved deviations are not processed any further and are returned to the supplier.

If subsequent sampling is required for reasons that are the fault of the supplier, the supplier will bear the cost of rectifying this. Bizerba expects that initial sample parts meet all requirements. However, if deviations arise whilst the sampling is being carried out and these cannot be corrected at short notice, written application to change deviation limits or drawings/specifications must be supplied before initial sampling.

The likelihood of approval should be clarified by the supplier in advance. The implementation of corrections must be approved by means of a new presentation of an initial sampling test report. Agreed correction dates must be adhered to. Component approval takes place by means of a signature on the cover sheet.

Approved deviations are noted. The signed cover sheet is sent to the supplier. Without this approval, no series deliveries can be supplied to Bizerba.

10.3 Material data sheets/substance prohibitions

As a general rule, material data sheets should be supplied with the initial sampling test report. The supplier guarantees that substance prohibitions will be adhered to in line with Bizerba’s prohibited substances list and with international and national requirements such as RoHS and WEEE.

11.1 Archiving

The supplier will preserve all the necessary data, comprehensibly organised, up to a minimum of 15 years after the end of series production, and will make this available to Bizerba on request. This includes measurement values and test results as well as samples that are needed to demonstrate the agreed quality, particularly material production and testing data. Where components need to be documented in greater detail, the archiving period for these is to be stated in the component specification/drawing.

11.2 Labelling and traceability

When requested the supplier will label all parts with a trace code on every individual piece of packaging. If this is not possible or is unsuitable, other suitable measures must be taken to ensure traceability of all material and process steps where errors are concerned. The contractor will teach Bizerba how its labelling system or other measures work, so that Bizerba may initiate its own investigation procedure to the required extent. Traceability documents must be supplied to Bizerba within a maximum of three working days after they are requested. If the products delivered by the supplier include defective parts, Bizerba may return the entire batch.

The supplier must promptly notify Bizerba of any of the following changes so that Bizerba can check for any adverse effects:

• manufacturing process
• manufacturing parameters
• tools
• operating equipment
• materials
• supplied parts
• relocation of manufacturing sites
• change of sub-suppliers
• procedures or facilities for product testing or other quality assurance measures

Changes may not be implemented without the written consent of Bizerba and are to be qualified after agreement by the supplier. FMEA, QM plan (control plan), lifespan of parts, etc. are to be adapted appropriately. Before any change in the abovementioned points, initial sampling is necessary in order to agree upon their scope with Bizerba. A positive response can be considered an approval of the change and concludes the process. The initial delivery of modified parts must be indicated in writing. The papers supplied and the packaging must clearly indicate that this is the first delivery of modified parts.

The supplier’s products and processes must meet the current standards of knowledge and technology. To ensure that this is the case, the supplier must implement a continuous improvement process – taking into account the relevant feedback reports, amongst other things.

14.1 Product testing and monitoring

The supplier is responsible for the quality of its products. It is responsible for carrying out process checks and outgoing goods checks before dispatch to Bizerba to ensure compliance with the agreed specifications or drawings for each product. The basis for the features to be checked is the Bizerba drawing. Additional tests can be agreed where required between Bizerba and the supplier. In individual cases, these may be conformity certificates for individual supplies as well as proof of conformity in line with DIN EN 10204 or manufacturer declarations in line with relevant EU directives. In addition, the contractor checks the correct labelling of the packaging unit.

14.2 Incoming goods check

Bizerba checks the Bizerba part number and the type and quantity of the incoming products and examines them to check for any damage caused during transportation. As far as the supplier is concerned, Bizerba is not obliged to carry out any further checks other than those mentioned above.

The supplier will inform Bizerba immediately of quality concerns in its production. In doing so, it will provide information on the type, scope and cause of the problem as well as planned corrective measures. The special measures defined for each case by both parties will be implemented immediately by the contractor (for example higher testing quotas).

15.1 Complaints

The supplier will immediately inform Bizerba in writing of defects in a consignment as soon as they are registered during the course of normal business operations. The supplier will confirm receipt of complaints in written form within two working days and will provide replacement non-defective products in order to avoid interrupting production at Bizerba.

15.2 Dealing with defective parts

The defective parts are returned to the supplier’s relevant quality assurance officer together with the relevant information. Bizerba ensures there is an appropriate preselection of the defective parts so that only those parts whose faults can be attributed to the supplier are returned. After receipt, the supplier will complete a fault analysis report within seven working days, which will cover the following points:

A. The causes of the defect and the reasons why this was not recognised by the contractor in tests and examinations

B. An optimised timeplan for the implementation of corrective and preventative measures based on a test report or an 8-D report

C. Date of the complete introduction of corrective measures and testing of their effectiveness

If required by Bizerba, the supplier will agree to carry out a fault analysis based on

A. Estimated net production faults

B. Faults in reliability and stress testing

C. Faults in the field

15.3 Corrective measures

Regardless of the consignment of defective parts, the supplier will provide a test report or an 8-D report for the entire corrective time period to keep Bizerba informed, and will do so within seven working days of receipt of the written complaint. Until the corrective measures take effect, Bizerba can request special measures (higher testing quotas, etc.) for an appropriate period of time, which must be implemented within two working days. Any additional costs that arise as a result must be borne by the supplier, unless it can be proven that the fault was caused by Bizerba.

15.4 Special approval

If defective products must be supplied by the supplier in order to maintain continuity in Bizerba’s production, special authorisation from Bizerba must be requested in advance of the delivery. Bizerba reserves the right to decide on this.

The supplier must guarantee that it can supply replacement parts and products for up to ten years after the last sales date. This must be guaranteed through appropriate tool management and stockpiling. Advance foreclosure of the products is only permitted with authorisation from Bizerba.

The supplier is obliged to sufficiently insure the liability risk and to present an appropriate confirmation of insurance. The cover must include the costs related to the handling of product liability or series losses and the cost of a recall campaign.

In collaboration with our suppliers compliance with legal rules and regulations is a special need for us. The most important compliance topics are available for you in the Bizerba Code of Conduct.

A returned and signed version to Bizerba is deemed to be a sign of your approval with the code’s conditions and please also have a look on our suppliers’ questionnaire.