Waiver Policy Document

THIS DOCUMENT IS TO BE REGARDED AS THE OFFICIAL WAIVER POLICY DOCUMENT WITHIN INTEGRATED SOLUTIONS. IT IS TO BE MAINTAINED UNDER CHANGE CONTROL BY THE DOCUMENT CONTROL COORDINATOR.

4.1 Waiver Conditions

4.2 Waiver Escalation Procedure

4.3 Concurrence of Affected Parties

Integrated Solutions (IS) is committed to providing products and services which comply with applicable specifications and requirements. Also, IS management expects full compliance with the Quality Plan, Release Checklists, Quality Policies and all processes and procedures detailed in the IS Quality Manual. However, in the event that business conditions dictate the need to deviate from the specified requirements, engineering standards, processes or procedures, or Quality Policies, a waiver request to do so must be generated. Such cases would be considered the exception, not the rule.

For deviations from IS specific requirements and procedures, a waiver request must be approved before shipping any units. The waiver request should include a statement of the risk employed with the waiver and, where applicable, include a CLCA plan with milestone dates correcting the root cause of the condition that necessitated the waiver.

The underlying objective of this policy is to assure that a reasoned and well communicated business decision is made whenever products failing to fully conform to their stated requirements or pose a significant risk to IS customers are made available for customer installation.

· Engineering Management and Quality are advised of product shortcomings and that they participate in the waiver decision making process.

· Documented commitments exist to ensure that appropriate action to correct the condition(s) necessitating the waiver will be taken.

· Commitments exist to provide any increased field or central support necessitated by the wavered condition.

· Any temporary limitations or degradation in the functional performance or usage of the product that restricts the product's Insatiability to certain customers are fully defined and understood.

· Limitations concerning the applicability of the waiver in terms of time duration, quantities of products, applications, environments, locations, and the like, are defined and documented.

In order to preclude availability delays, requests for approval to waive should be submitted promptly upon gaining viability of product deficiencies that cannot be rectified in time for planned product delivery.

This waiver policy shall apply to all products, designed, produced, modified, enhanced, or sourced by any business unit at Integrated Solutions.

The CEO/President has the responsibility to prevent the release of non-conforming products for delivery and/or installation unless otherwise authorized by an approved waiver. Approval to waive does not relieve Engineering of its ultimate responsibility of providing products that are fully fit for use.

The formal waiver procedures must be followed in all cases where normal IS processes, procedures and/or standards have not been adhered to.

The implementation of the IS Waiver Policy is as follows: Request to waive shall be in the form of a memo from Engineering. The memo must:

· Identify the specific conditions that necessitate the waiver and the risk employed with those conditions.

· State the limitations of the waiver, such as quantities, dates, specific customers, restricted locations or applications, inventory controls, corrective action plan, retrofit commitments, and the like.

· State the rationale justifying a decision to waive specific standards, processes or procedures, or Quality Policies.

· State the impact of the waiver on affected organizations, describe the methodology used to inform and receive feedback on the proposed waiver from affected organizations and, where applicable, provide evidence of concurrence with the waiver by affected organizations.

· Summarize additional provisions made to maintain and support wavered products.

In the event that the local management cannot agree upon resolution of a required waiver, the following escalation process shall be employed: local management shall prepare a "Request to Waive" in the form of a memo to customer. Attached to the memo is all documentation relevant to the waiver request including a statement from the vice president as to why he/she feels the waiver was not approved by that level.

Approval of the waiver rests with upper management. A copy of the waiver is kept with the project documentation.

Under the following circumstances, it is required that the customer indicate their concurrence with granting a waiver:

· When the wavered condition would impose upon the customer the requirement for unplanned training, manpower or other expense for the product's installation or for its ongoing support and maintenance.

· When the waiver condition could affect the ability of the customer to utilize the product.

· When the customer, for business reasons, seeks to secure the release of any product in advance of it fully satisfying the established requirements.



Prepared By:

Lead Author, Integrated Solutions	Date





Approved by & Effective on Date of Signature below:

Yufen Chang Yu, Integrated Solutions	Date

change sheet
TITLE: Waiver Policy
Description of change
Issue	Date	Section	Description
1.0	3/13/97	All	Original Issue