5.1 - DEFECT CLASSIFICATION

Acme Metal Cap Co. Inc. is working to the Acceptable Quality Levels(AQL) under the following defect classifications:

CRITICAL DEFECTS

A defect that is likely to result in a hazardous or unsafe condition for the individual using, maintaining, or depending on the components.

These faults should be totally absent. However , if any such critical fault is found during a normal inspection, the batch must be considered rejected until proven otherwise by a 100% QA inspection.

The maximum number of critical defects per lot should not exceed 15 units per 10,000 units processed.

MAJOR A DEFECTS

A defect that will, or is likely to result in a failure to function or which will reduce the usage of the unit for it’s intended purpose.

This also applies to defects which do not allow for normal operation conditions during production or which are objectionable or unattractive to the consumer.

The maximum number of major a defects per lot should not exceed 25 units per 10,000 units produced.

MAJOR B DEFECTS

A defect that is aesthetically objectionable to the consumer and is likely to cause the consumer to question the integrity of the package, although the unit is functionally usable.

MINOR DEFECTS

A defect that is a departure from the established standards, having no significant effect on the usability or appearance of the units.

The maximum number of minor defects per lot should not exceed 400 units per 10,000 units produced.

5.2 -DEFECT EXAMPLES

1. CRITICAL DEFECTS 0.15% AQL

1. Metal slivers or burrs
2. Knife or ragged edges
3. Incorrect or missing markings.

2. MAJOR A DEFECTS 0.25% AQL

1. Off specifications
1. Length
2. Width
3. Height
4. Radii

2. Distorted,dented, heavily scratched, or punctured pans.
3. Foreign matter which cannot be removed via air blowing.
4. Corrosion
5. Missing lacquer or incorrect material.

3. MAJOR B DEFECTS 2.5%

1. Foreign matter which can be removed via air blowing.
2. Stains (including stains caused by lubrication)
3. Mixed sizes in cartons.

4.MINOR DEFECTS 4.0%

1. Small dents that do not interfere with product pressing.
2. Small scratches (with no aesthetic damage)

5.3 - NON CONFORMING RAW MATERIALS

Substandard materials are raw materials which are found to be unacceptable for use in production. These will be handled in the following manner:

1. All defective or suspect materials are segregated from production inventories and marked “NOT TO BE USED”
2. The specific problem and its nature will be identified.
3. The responsible vendor will be notified of the rejection or complaint.
4. The vendor will rework or replace the nonconforming materials.
5. The vendor will take the appropriate actions to avoid future occurrences of nonconforming materials reaching ACME’S dock.
6. A Quality Assurance audit of the remaining material, as well as any reworked or replaced material, will be conducted by the purchasing agent with the assistance of the plant manager and /or plant foreman. If the material is found to be acceptable , it is returned to the production stock.
7. If the occurrence of nonconforming materials in our production stock causes a delay to the delivery of finished goods , the affected customer will be informed of the situation and advised of the revised delivery schedule.