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5.1
Policy
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Tooling purchased
by Tenneco or by a Tenneco customer,for use at a supplier facility shall be used
exclusively for production of Tenneco requirements as authorized
by Purchase Orders, Blanket Purchase Order Releases, and/or Forecasts
furnished to suppliers. Products produced from such tooling may not be sold
or furnished to other parties without the express, written authorization of
Tenneco.
Each article of tooling must
be clearly marked (stamped, stenciled, or permanently tagged) identifying the
item as "Property of Tenneco" or if applicable
"Property of Tenneco (customer)" and the part number,
which it produces. Tenneco will reimburse suppliers for only
unique, dedicated production tools, and may request evidence of supplier's
actual cost for such tooling prior to final payment.
Unless specifically
negotiated, Tenneco will not reimburse suppliers for Capital
Equipment or tooling that is shared (used in production of products for other
customers), or not returned to Tenneco upon demand. Likewise,
unless specifically agreed, Tenneco will not reimburse suppliers
for nonrecurring engineering (NRE) costs.
Tooling purchased by Tenneco is the property of
Tenneco and held by suppliers pursuant to the terms and conditions
of purchase, for a period of 15 years after the production order.
The Supplier may not move
Tenneco tooling to alternate locations without advance approval. Tenneco
reserves the right to demand surrender of any Tenneco-owned tooling upon reasonable notice.
Tenneco reserves the right to carry out an audit of
Tenneco owned tooling at the suppliers’ premises.
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04/07/04
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B
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5.2
Changes/ Maintenance
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Tooling
must be maintained in satisfactory working condition, capable of production
that meets all governing drawings and specifications, and at the capitalized
planning volumes/rates. Suppliers may not change/modify tooling owned by
Tenneco without advance notification and approval in writing of
such changes. Tooling must be fully covered by insurance against damage,
loss, or theft and free from all liens and encumbrances at all times without
expense to Tenneco.
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5.3
Payments
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Upon
final payment, ownership of tooling is granted to Tenneco. Payment
for tooling will be made, at agreed upon terms, following Initial Sample Approval
and duly
completed Vendor Tooling Registration Form. This form contains various information such as
product, tooling parts identification, location and % ownership etc. Suppliers when requested must
furnish complete tooling drawings, including all details, inserts,
consumables, etc. to Tenneco as part of the Initial Sample
Approval submission.
Invoices for tooling must
show exact physical location by City, State or Province, and Country where
tools will be used in production.
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04/07/04
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B
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