Common use of ECO Procedures Clause in Contracts

ECO Procedures. (a) Applied may change its Specifications at any time and generate a proposed ECO with respect to such change. An Applied Supplier Engineer may review with Supplier the Applied proposed ECOs that affect any Item(s). (b) Supplier shall utilize one of the following procedures to initiate or request any engineering change to an Item or a change affecting Specifications (an "Engineering Change"): i) Supplier may prepare and submit for approval a proposed ECO for an Engineering Change if such action is authorized under Supplier's Manufacturing Engineering Authority ("MEA"), as defined in Applied's documentation of its ECO procedures and standards in effect from time to time and provided to Supplier (a "Supplier ECO"); or ii) Supplier may request an ECO to authorize an Engineering Change through a Request for Engineering Action ("REA") if such request is authorized under Supplier's MEA (a "Supplier Request"); or iii) Supplier may initiate the development of an Engineering Change by submitting a Supplier Problem Sheet (Attachment 13) (an "SPS") to the SPS Administrator designated for Supplier. (c) Changes to which an SPS or the ECO process applies shall not be implemented by Supplier (and Supplier shall not ship any Items with any Engineering Change) until written permission to proceed is given by Applied as required by its applicable SPS and ECO procedures. Applied will provide, in writing (to the attention of Supplier's Engineering Manager) or by release on Applied's current ECO database, notice of approved ECOs (Attachment 12), indicating the effective dates of all changes. Unless otherwise notified, Applied's receiving inspection will inspect to the latest revision in effect at the time of receipt of Items. (d) If Applied has not responded to an SPS, REA or proposed ECO within the time period indicated in this Paragraph (d), Supplier may request review of the SPS, REA or proposed ECO by the SMT Supplier Engineer for Supplier. Applied is not obligated to approve any SPS, REA or proposed ECO. The response time for purposes of this Paragraph (d) is eighteen (18) days after initial submission of a proposed ECO or REA or after initial submission of an SPS. (e) Each Supplier ECO and Supplier Request shall be handled in accordance with applicable MEA procedures and shall not modify or eliminate any requirement of the Quality Framework Document (Attachment 15) or the QRD (Attachment 20) for review CONFIDENTIAL TREATMENT REQUESTED and approval by Applied prior to implementation. Each Engineering Change initiated as a Supplier Request or Supplier ECO shall, prior to implementation by Supplier: (i) have been released by Supplier to Applied's assigned organizations for REA or ECO review and approval under the REA and ECO workflow and approval routing requirements of Applied in effect at the time; (ii) have been properly completed and documented under Applied's REA and ECO workflow and preparation requirements, including (a) the document control process, (b) applicable safety checklists, and (c) other safety engineering or information requirements, as in effect at the time; and (iii) have been approved, in writing (to include electronic authorization) as required by Applied's ECO, REA or other applicable approval procedures.

ECO Procedures. (a) Applied may change its Specifications at any time and generate a proposed ECO with respect to such change. An Applied Supplier Engineer may review with Supplier the Applied proposed ECOs that affect any Item(s). (b) Supplier shall utilize one of the following procedures to initiate or request any engineering change to an Item or a change affecting Specifications (an "Engineering Change"): i) Supplier may prepare and submit for approval a proposed ECO for an Engineering Change if such action is authorized under Supplier's Manufacturing Engineering Authority ("MEA"), as defined in Applied's documentation of its ECO procedures and standards in effect from time to time and provided to Supplier (a "Supplier ECO"); or ii) Supplier may request an ECO to authorize an Engineering Change through a Request for Engineering Action ("REA") if such request is authorized under Supplier's MEA (a "Supplier Request"); or iii) Supplier may initiate the development of an Engineering Change by submitting a Supplier Problem Sheet (Attachment 13) (an "SPS") to the SPS Administrator designated for Supplier. (c) Changes to which an SPS or the ECO process applies shall not be implemented by Supplier (and Supplier shall not ship any Items with any Engineering Change) until written permission to proceed is given by Applied as required by its applicable SPS and ECO procedures. Applied will provide, in writing (to the attention of Supplier's Engineering Manager) or by release on Applied's current ECO database, notice of approved ECOs (Attachment 12), indicating the effective dates of all changes. Unless otherwise notified, Applied's receiving inspection will inspect to the latest revision in effect at the time of receipt of Items. (d) If Applied has not responded to an SPS, REA or proposed ECO within the time period indicated in this Paragraph (d), Supplier may request review of the SPS, REA or proposed ECO by the SMT Supplier Engineer for Supplier. Applied is not obligated to approve any SPS, REA or proposed ECO. The response time for purposes of this Paragraph (d) is eighteen (18) days after initial submission of a proposed ECO or REA or after initial submission of an SPS. (e) Each Supplier ECO and Supplier Request shall be handled in accordance with applicable MEA procedures and shall not modify or eliminate any requirement of the Quality Framework Document (Attachment 15) or the QRD (Attachment 20) for review CONFIDENTIAL TREATMENT REQUESTED and approval by Applied prior to implementation. Each Engineering Change initiated as a Supplier Request or Supplier ECO shall, prior to implementation by Supplier: (i) have been released by Supplier to Applied's assigned organizations for REA or ECO review and approval under the REA and ECO workflow and approval routing requirements of Applied in effect at the time; (ii) have been properly completed and documented under Applied's REA and ECO workflow and preparation requirements, including (a) the document control process, (b) applicable safety checklists, and (c) other safety engineering or information requirements, as in effect at the time; and (iii) have been approved, in writing (to include electronic authorization) as required by Applied's ECO, REA or other applicable approval procedures.

ECO Procedures. (a) Applied may change its Specifications at any time and generate a proposed ECO with respect to such change. An Applied Supplier Engineer may review with Supplier the Applied proposed ECOs that affect any Item(s).. * Material has been omitted and filed separately with the Commission. 57 (b) Supplier shall utilize one of the following procedures to initiate or request any engineering change to an Item or a change affecting Specifications (an "Engineering Change"): i) Supplier may prepare and submit for approval a proposed ECO for an Engineering Change if such action is authorized under Supplier's Manufacturing Engineering Authority ("MEA"), as defined in Applied's documentation of its ECO procedures and standards in effect from time to time and provided to Supplier (a "Supplier ECO"); or ii) Supplier may request an ECO to authorize an Engineering Change through a Request for Engineering Action ("REA") if such request is authorized under Supplier's MEA (a "Supplier Request"); or iii) Supplier may initiate the development of an Engineering Change by submitting a Supplier Problem Sheet (Attachment 13) (an "SPS") to the SPS Administrator designated for Supplier. (c) Changes to which an SPS or the ECO process applies shall not be implemented by Supplier (and Supplier shall not ship any Items with any Engineering Change) until written permission to proceed is given by Applied as required by its applicable SPS and ECO procedures. Applied will provide, in writing (to the attention of Supplier's Engineering Manager) or by release on Applied's current ECO database, notice of approved ECOs (Attachment 12), indicating the effective dates of all changes. Unless otherwise notified, Applied's receiving inspection will inspect to the latest revision in effect at the time of receipt of Items. (d) If Applied has not responded to an SPS, REA or proposed ECO within the time period indicated in this Paragraph (d), Supplier may request review of the SPS, REA or proposed ECO by the SMT Supplier Engineer for Supplier. Applied is not obligated to approve any SPS, REA or proposed ECO. The response time for purposes of this Paragraph (d) is eighteen (18) days after initial submission of a proposed ECO or REA or after initial submission of an SPS. (e) Each Supplier ECO and Supplier Request shall be handled in accordance with applicable MEA procedures and shall not modify or eliminate any requirement of the Quality Framework Document (Attachment 15) or the QRD (Attachment 20) for review CONFIDENTIAL TREATMENT REQUESTED and approval by Applied prior to implementation. Each Engineering Change initiated as a Supplier Request or Supplier ECO shall, prior to implementation by Supplier: (i) have been released by Supplier to Applied's assigned organizations for REA or ECO review and approval under the REA and ECO workflow and approval routing requirements of Applied in effect at the time; (ii) have been properly completed and documented under Applied's REA and ECO workflow and preparation requirements, including (a) the document control process, (b) applicable safety checklists, and (c) other safety engineering or information requirements, as in effect at the time; and (iii) have been approved, in writing (to include electronic authorization) as required by Applied's ECO, REA or other applicable approval procedures.