Order procurement Input: customer need Sales: identifies customer need Promotes products &/or R&D capability Secures customer interest Receive request for business Existing product? N Go to R&D routine Y New customer? Y Product mgr/sales rep ”qualifies” customer N Approved? N END Y Quote required? Proceed with ordering process Y Product mgr/sales rep/ sales asst prepare quote Sales rep/designate forwards copy to customer; CS files copies in customer file and in quotation binder Existing quote in binder? CS revises Special Pricing Form CS circulates new SPF: accounting, CS team leader, CSR Y N Prepare Special Pricing Form Accounting & CSR remove old SPF from file & shred Quoted at list price? Approved by product manager N CS transfers old SPF to “Expired SPF” binder Y Approved by sales rep Proceed with ordering process Proceed with ordering process

Order procurement to processing schedule approval Order placed with CS Order entered into inventory & onto Daily Order Summary Sheet Production clerk reviews order summary (periodically through the day) Enough product in stock? N Production clerk opens work order Y Product automatically deducted from inventory Three separate MRPs run: Prod. Clerk, packaging, purchasing CS prints shipping papers for the order Enough materials? N Raw materials ordered/ missing PF items scheduled/ labels prepared CS generates booking report (daily) Y CS adjusts ship date with customer (if necessary) & new date added to packing slip Shipping papers batched with booking report Production clerk creates processing schedule for following week If customer changes ship date, date changed on order form and on PO CS audits orders Schedule forwarded to plant chemist for approval Controller audits orders N OK? Y CS files shipping papers by ship date Schedule circulated (distribution list on form) Go to Shipping routine Go to processing routine

Processing schedule approval to processing testing Processing schedule circulated as per distribution list QA issues batch sheets for quantities required prior to start of scheduled week Supervision required? Y QA or R&D staff must be present during processing N Processor fills out temperature & humidity log at shift start Batch sheets distributed to processors Processor reviews batchsheet and fills out start-up checklist (where applicable) Obtains raw materials as listed by item code on batchsheet Records lot number and weights (gross/tare/net) of each container on batchsheet (“raw materials” section) Prepares batch as per batchsheet instructions Records all procedural steps, and observations every 30 minutes (or as specified) Problems or errors with the batch? Y Inform Supervisor N Processor tests batch according to batchsheet instructions Records all test results on processing summary sheet Continued…

Processing testing to processing approvals From previous… Test results within spec? N Places batch temporarily “on hold”; contacts processing supervisor and QA Y In-process adjustments applicable? N Batch rejected and closed into WH07 Y NCP unloaded from mixer; batch and product ID applied to all containers Makes in-process adjustments, retests batch QA applies “HOLD” labels to all containers (including problem, disposition, CAR#) Y Processor packages batch according to batchsheet instructions Batch conforms? N Material transferred to WH 07 Obtains retain sample from the batch Batchsheet closed and returned to QA lab Examines packaged containers and ensures all appropriate labels are applied Production clerk uses material listing to deduct raw materials & close work order Reviews packaging instructions and signs off beside each container Go to Control of NCP routine Confirms conformity of all final test results Conforms? N Processing supervisor informed; processor corrects infraction Y Finished product? N Processor applies large “Approved” sticker to bottom right-hand corner of PF label Y Processor signs off on batchsheet & applies green initialed approval dot on product label Moves containers to “PF Temporary Hold Area” Moves containers to “Finished Goods Temporary Hold Area” Places batchsheet in “Approved” file Continued…

Processor corrects labelling From previous… QA Packaging performs dock audits on random sample (finished goods only) All OK? N Processor corrects labelling Y QA applies blue dot sticker to finished goods containers, where applicable PF-material? N Y Packaging confirms lot #, quantity, and product ID; fills out and signs the Material Transfer Form Shipping confirms lot #, quantity, and product ID; fills out and signs the Material Transfer Form Product is stored in WH 04 Product is stored in WH 01 Packaging retains yellow copy of material transfer form & forwards white copy to Production Clerk Shipping retains yellow copy of material transfer form & forwards white copy to Production Clerk Production clerk receives material transfer form and approved batchsheet Transfers out of stock the used raw materials, packaging components and labour used Confirms quantities of product transferred, using batchsheet and material transfer form Closes processing work order Fills in work order number on batchsheet Batchsheet returned to QA for filing Files material transfer form with work order