All processes, products, and services (including but not limited to specifications, drawings, process requirements, work instructions etc.) are subject to Pacific Engineering Inc. (PEI) approval. PEI reserves the right to inspect and/or request validation be provided in the following areas:

A. The approval of:

1. Products and services;

2. Methods, processes, and equipment;

3. The release of products and services

B. Competence, including and required qualification or persons

C. The external providers’ interactions with the organization

D. Control and monitoring of the external providers’ performance to be applied by the organization

E. Verification or validation of activities that the organization, or its customer, intends to perform at the external providers’ premises;

F. Design and development control

G. Special requirements, critical items, or key characteristics;

H. Test, inspection, and verification (including production process verification)

I. The use of statistical techniques for product acceptance and related instructions organization

J. The need to:

• Implement a quality management system;

• Use customer-designated or approved external providers, including process sources (e.g., special processes)

• Notify the organization of nonconforming processes, products, or services and obtain approval for their disposition

• Prevent the use of counterfeit parts

• Notify the organization of changes to processes, products, or services, including changes of their external providers or location of manufacture, and obtain the organization’s approval

• Flow down to external providers applicable requirements including customer requirements

• Provide test specimens for design approval, inspection/verification, investigation, or auditing

• Retain documented information, including retention periods and disposition requirements

K. The right access by the organization, their customer, and regulatory authorities to the applicable areas of facilities and to applicable documented information, at any level of the supply chain

L. Ensuring persons are aware of:

• Their contribution to product or service conformity;

• Their contribution to product safety;

• The importance of ethical behavior.