Appendix A: PO Information
Condition of Purchases for ThinFilms Inc. Suppliers: Flow-down Provisions

Product and service requirements provided by a supplier / contractor are described within this purchase order.  Any necessary or applicable drawings and specifications will be provided (if necessary).  Stock items will meet the requirements described by the supplier.  All products and service provided must meet the requirements of this purchase order. Contractor/ Supplier (recipient of the purchase order) shall provide for the review of the purchase order to ensure that all applicable requirements are flowed down to sub-tiers.  Contractor shall notify ThinFilms Inc. if any of their sub-tier contractors are found to be non-compliant.

Contractor/Supplier’s quality management system shall include procedures for determining the capability of subcontractors.  Contractors shall establish a program to evaluate sub-tier suppliers to ensure compliance with the PO requirements. Suppliers will flow down any changes of the purchase order to sub-tiers and provide the applicable revision if provided.  Contractor / Supplier shall maintain any inspection documentation from a sub-tier, and that it meets the purchase order requirements. Material certificates are to be maintained for a period of 10 years after delivery of products.  Contractor/Supplier shall flow down the contents of this purchase order to their sub-tiers.

Fabricated products must meet the requirements of drawings.  Items fabricated by a supplier for a specific purpose (e.g., sputter target for a specific machine) must meet the original manufacturers’ requirements.  Fabricated products will be inspected and approved by ThinFilms after delivery. 

Any special fabrication or manufacturing by a supplier must be performed by a qualified, trained person.  

A supplier/contractor can communicate with ThinFilms Inc. by email, telephone, or site visit.  Suppliers / contractors for ThinFilms Inc., if there is a satisfactory history of service, will be maintained on an Approved Supplier list and evaluated periodically for continued service. 

Design, development, and control of a product by a supplier will be the responsibility of the supplier.

Any special requirements, critical items, or key characteristics will be designated as such on the purchase order and the supplier/contractor will handle as such.  Critical items must be manufactured to exact requirements and cannot be reworked without ThinFilms approval.  Any reworked product must meet the original purchase order requirements.  

Any special testing and inspection requirements will be noted on the purchase order.  If supplier testing or inspection requirements are not listed, then appropriate and applicable industry standards apply.

Statistical process control techniques will be employed during the manufacture of the product if it is listed on the purchase order (specific SPC testing will be designated).

The supplier will maintain a Quality Management System (e.g., ISO 9001:2015, etc.); use approved sub-tiers suppliers; will notify ThinFilms Inc. of any non-conforming product and obtain approval, waiver, or disposition of product(s) from ThinFilms Inc.; will make every effort to prevent counterfeit parts from entering the supply chain; contact ThinFilms if there are any changes to the products and services to obtain approval; flow down any applicable requirement (including customer requirements)  to sub-tiers;  If applicable, supply any test samples, coupons, monitors for ThinFilms Inc. inspection and approval; retain processing and inspection documentation, along with test samples for a minimum of 10 years (after 10 years the documentation will be shredded and the test samples destroyed); The supplier / contractor also allows for the right of access by the organization, their customer, and regulatory authorities to the applicable areas of the facilities and to applicable documented information, at any level of the supply chain.  This also applies to a supplier’s sub-tiers; ensure that people working for suppliers / contractors are aware of their contribution to product conformity, product safety, and the importance of ethical behavior.

QMF-35 issue 1