DIRECT MATERIAL SUPPLIERS QUALITY MANUAL

Version approved: 2.1

“WARNING: This printed document is an UNCONTROLLED COPY. The user must verify it is the current

issue level prior to use” Page: 1 / 40

DIRECT MATERIAL SUPPLIERS QUALITY MANUAL

Short description: Minimum requirements from Gestamp to our direct material suppliers to

ensure that the processes between Gestamp and them run smoothly.

Summary:

Keywords: Supplier, manual

Document No.: 1972880947

Degree of confidentiality:

Edited by: Jesús Najera Lorente

Approver: Vanessa Pepperell

Main changes:

Rev. Revision detail Date

1 New document 24/10/2016

2 Adaptation to new IATF 16949 and OEMs Customer Specific

Requirements (CSRs)

Note: Changes highlighted in blue colour.

18/04/2018

2.1 Link to the supplier portal updated 06/03/2019




Index 1. Preamble ............................................................................................................................... 4

1.1 Objective ....................................................................................................................... 4

1.2 Scope ............................................................................................................................. 4

2 Management System ............................................................................................................ 5

2.1 Quality ........................................................................................................................... 5

2.1.1 Quality management system ................................................................................ 5

2.1.2 Zero-defects .......................................................................................................... 5

2.1.3 Continuous improvement ..................................................................................... 6

2.1.4 Internal audits ....................................................................................................... 6

2.1.5 Gestamp second party audits................................................................................ 7

2.1.6 Special Processes ................................................................................................... 7

2.1.7 Sub-suppliers ......................................................................................................... 8

2.1.8 Documentation and archiving ............................................................................... 8

2.1.9 Order and cleanliness .......................................................................................... 10

2.2 Product Safety Officer ................................................................................................. 10

2.3 Environmental management....................................................................................... 12

2.4 Corporate responsibility .............................................................................................. 12

2.5 Legal and statutory ...................................................................................................... 13

2.5.1 Conflict minerals .................................................................................................. 13

2.5.2 REACH .................................................................................................................. 14

2.6 Occupational risk ......................................................................................................... 14

2.7 Logistics ....................................................................................................................... 14

2.7.1 MMOG/LE ............................................................................................................ 14

3 Project Management ........................................................................................................... 15

3.1 Product and/or process development planning ......................................................... 15

3.2 Preventive quality activities ........................................................................................ 15

3.3 Product and Process Approval (PPAP – PPA) .............................................................. 23

3.4 Special characteristics ................................................................................................. 26

3.5 Pass Through Characteristics (PTC) ............................................................................. 27

4 Series Production ................................................................................................................ 28

4.1 Quality assurance during serial production ................................................................ 28

4.2 Verification and acceptance of externally provided material by Gestamp ................ 29

4.3 Verification of job set-ups ........................................................................................... 29

4.4 Layout inspection and functional testing /requalification .......................................... 29

4.5 Maintenance of production means ............................................................................. 30

4.6 Control of measuring equipment ................................................................................ 31

4.7 Identification and traceability ..................................................................................... 31

4.8 Packaging and labeling ................................................................................................ 32




4.9 Control of changes on the product or process ............................................................ 33

5 Customer Care ..................................................................................................................... 34

5.1 Claims management .................................................................................................... 34

5.2 Performance evaluation .............................................................................................. 36

5.3 Controlled shipping ..................................................................................................... 36

5.4 Deviation / Concession permit .................................................................................... 37

5.5 Risk management & contingency plan ........................................................................ 38

5.6 Customer property ...................................................................................................... 39

5.7 Service parts ................................................................................................................ 40

5.8 Insurance ..................................................................................................................... 40




1. PREAMBLE

1.1 Objective

The reputation of Gestamp and our market positioning is determined by the quality of our

products, the adoption of a process approach and a high customer focus, in which the quality of

our suppliers has a significant influence. We expect and encourage our suppliers to adopt the

same principles and practices.

This Supplier Manual describes the minimum requirements in order to ensure that the processes

between Gestamp and the suppliers run smoothly both for new programs and for serial

production.

The suppliers shall commit to meet all the Gestamp requirements hereby on this Manual during the business relationship with Gestamp.

The suppliers shall equally know and fulfill:

- The current applicable statutory and regulatory requirements in the country of receipt,

the country of shipment and the customer-identified country of destination.

- The international standards of the automotive sector (IATF 16949, AIAG manuals, VDA

manuals …),

- The specific requirements from Gestamp customers or Gestamp location whenever this

applies.

Gestamp has available a Supplier Portal (https://www.gestamp.com/Suppliers), which is the

communication channel between Gestamp and suppliers, and must be mandatorily used.

In case of applicable Gestamp customers requirements, these will prevail.

1.2 Scope

This manual is mandatory for all Gestamp direct material suppliers as well as suppliers of

manufacturing processes services like e-coating, laser cutting...

Directed-buy suppliers are also requested to comply with the requirements included on this

Manual. The escalation of the problems that may arise includes a direct customer

communication. (Refer to IATF 16949 chapter 8.4.1.3)

Objetive Scope

https://www.gestamp.com/Suppliers




2 MANAGEMENT SYSTEM

2.1 Quality

2.1.1 Quality management system

The suppliers must have and implement a Quality Management System:

- Gestamp recommends that their suppliers are certified according to the current

standard IATF 16949 by an IATF-recognized certification body.

- Those suppliers not certified according to IATF 16949 shall be certified, at least, in

accordance with the standard ISO 9001(*) by a certification body bearing the

accreditation mark of a recognized IAF MLA member and where the accreditation body’s

main scope includes management system certification to ISO/IEC 17021.

- The suppliers with only certification according to ISO 9001 must also comply with

requirements of IATF 16949 standard and/or MAQMSR (Minimum Automotive Quality

Management System Requirements). MAQMSR can be found through IATF website:

http://www.iatfglobaloversight.org/wp/wp-content/uploads/2016/12/Minimum-

Automotive-Quality-Management-System-Requirements-for-Sub-tier-suppliers-2nd-

Ed.pdf

(*) A business relationship with a supplier not certified in ISO 9001 is only possible after the

Gestamp customer approval.

The desire and ultimate objective is that all Gestamp suppliers become certified to IATF 16949.

The suppliers must upload a copy of their updated QMS certificates through Supplier Portal

when required by Gestamp. The suppliers shall inform Gestamp about any change in the

certification status: (initial certification, recertification, transfer to new Certification Body,

Cancellation...).

Refer to IATF chapter 4.3 and 8.4.2.3

2.1.2 Zero-defects

Gestamp expects a commitment from the suppliers to achieve a Zero-Defects approach. To do

that, the suppliers shall implement all possible actions in accordance with the state-of-the-art.

As an intermediate step to achieve this goal and in order to measure and assess the quality level

achieved, Gestamp will set out interim targets (e.g. ppm, number of claims ...).

Logistics Occupational

risk Legal

Quality Product safety Corporate

responsibility Environment

http://www.iatfglobaloversight.org/wp/wp-content/uploads/2016/12/Minimum-Automotive-Quality-Management-System-Requirements-for-Sub-tier-suppliers-2nd-Ed.pdf






Gestamp makes an annual revision of the targets (quality and logistic), according to our

customer targets and the continuous improvement for the supplier performance.

The fulfillment of these interim targets does not relieve the supplier from its obligation and

liability in case of defects, which can lead to claims from Gestamp or Gestamp customers.

2.1.3 Continuous improvement

The suppliers shall have a documented process for continual improvement of product and

manufacturing processes.

Typical continuous improvement activities are focus on:

o Wastes reduction: overproduction, unnecessary movements, delays, transport, over-

processing, quality costs, overstock, environment wastes.

o Use of statistical methodologies to reduce process variation.

o Risk analysis. The supplier shall include lessons learned, product audits, product recalls,

field returns and repairs, complaints, scrap and rework.

Note: In some cases, the measures defined within the framework of a continuous improvement

can suppose a change on the product or process. In the chapter “4.9 Control of changes on the

product or process” is described what is considered as a change and the requirements that must

be met in these cases.

Refer to IATF 16949 chapter 10.3.1

2.1.4 Internal audits

The suppliers shall perform internal audits of system, process and product with, at least, the

following periodicity:

o Quality management system audit: The whole quality management system processes

over each three-year calendar period.

o Manufacturing process audit: Unless otherwise agreed in written, all manufacturing

processes over each three-year calendar period.

o Product audit: unless otherwise agreed in written, all Gestamp products must be

audited annually. Similar products (same technology, same requirements, same

complexity…) could be grouped after agreement with the supplied plants.

Additionally, Gestamp demands:

Safety and regulation audits: For parts with safety and/or regulation characteristics, the

supplier shall conduct annual audits. When required by Gestamp, this audit must be fulfilled

through the Supplier Portal.

For any kind of internal audit, the supplier must provide evidence(s) of conformance when

required by Gestamp.

This audit program must be prioritized based upon risk, performance trends and criticality of the

processes and be reviewed when appropriate.

The suppliers must inform Gestamp if they are not able to solve in an effective manner the non-

conformities detected in the internal audits.




Internal audits where zero non-conformities are detected are not realistic.

The suppliers must ensure that their internal auditors have the following minimum competencies:

- Knowledge of automotive process approach, core tools and applicable customer specific requirements

- Understanding how to plan, conduct, report and close audits.

Refer to IATF 16949 chapter 7.2.3, 9.2.2.1, 9.2.2.2, 9.2.2.3 and 9.2.2.4

2.1.5 Gestamp second party audits

As part of Gestamp supplier management program, Gestamp reserves the right to conduct

second-party audits at supplier facility.

o Among others reasons, these supplier audits can be triggered due to:

an internal risk analysis made every year,

quality problems,

new suppliers,

new projects

o Those audits may take place at any time during the business relationship with Gestamp

and with reasonable notified time in advance.

In exceptional situations, for example due to serious quality problems, lack of supplies…,

such audits may be carried out at any time on one day prior notice, as long as they are

conducted within regular work shifts and do not interfere the normal operation of the

factory.

o The supplier will allow Gestamp to perform those audits (provide all required

information, allow access to Gestamp and Gestamp customers,…)

In justified cases, the supplier will be entitled to deny the access to some information,

which could be considered as secret or confident.

o In cases where it is not considered necessary to perform an on-site audit by Gestamp, a

self-assessment may be required using the template provided by Gestamp.

If the supplier does not submit the self-assessment documentation by the required date,

a Gestamp audit will be carried out on-site and the costs will be charged to the supplier.

2.1.6 Special Processes

Suppliers with internal or outsourced “special processes,” as identified by the Automotive

Industry Action Group (AIAG), are required to show conformance with relevant AIAG Special

Process document, using the most current version CQI standard, whenever applies:

o CQI-9 Heat treat assessment,

o CQI-11 Plating system assessment,

o CQI-12 Coating system assessment,

o CQI-15 Welding System Assessment,

o CQI-17 Soldering assessment,

o CQI-23: Molding system assessment,

o CQI-27: Casting System Assessment,




2.1.7 Sub-suppliers

The suppliers shall commit their supplier to permanently use a quality management system in

accordance with ISO 9001 or IATF 16949, in the version as amended from time to time. It is

strongly recommended for sub-suppliers to be certified according to ISO 9001 or IATF 16949 by

an accredited third-party certification.

Gestamp reserves the right to request sub-suppliers to be certified according to ISO 9001 or IATF

16949 when demanded by Gestamp’s customers.

Additionally, the suppliers must transfer all the requirements from Gestamp (including Gestamp

customer requirements, statutory and regulatory requirements, specials characteristics…) to

their suppliers, being responsible for the implementation.

Gestamp Suppliers are responsible for the quality of the product supplied to Gestamp, including

those characteristics, which depend on their suppliers. This also applies to Directed-Buy

suppliers .

The suppliers shall have criteria to evaluate their supplier’s performance taking into account

quality, logistic and technical criteria, among others. (Refer to IATF chapter 8.4.2.4)

A change on the supply chain (sub-suppliers) must be agreed with Gestamp prior to

implementation.

2.1.8 Documentation and archiving

The suppliers shall have an effective system of storage of information which must ensure the

following minimum retention requirements unless otherwise specified by Gestamp customers:

Minimum 5 years of retention period for documents/records not related to safety

and/or regulation parts

Minimum 15 years (*) of retention period for documents/records related to safety

and/or regulation parts.

The storage time is considered from:

Quality Records: from register date.

Quality Documents: When document becomes obsolete, for example, due to it has been

modified (new issue), or it has expired its validity period, (for example, in the case of a

temporal deviation permit) or after end of last production.




Type Retention

period Requirement Minimum content Example

Safety and/or Regulation

15 years (*)

- Accessibility. - Readability. - Protections

against fire, water, etc

- Only authorized access.

- No modifications of the content.

- Cybersecurity

- Creation or registration date

- Responsible person of the content

- Product reference, batch, date, …

- Modification level - Paper or

electronic signature

Documents: - Standards,

- Procedures,

- Work instructions,

- Control & test

methods,

- Control plans,

- FMEAs

- Specifications,

- etc

Records: - Control charts,

- Test results,

- Material

certifications,

- Training records,

- Audits,

- Initial samples,

- Capability studies

- etc

Others 5 years

- Preferably electronic or if not possible, other format which ensures the integrity of the document/record.

If requested, the suppliers must make available to Gestamp the documents and/or records

required within a reasonable timeframe.

The Suppliers must ensure the following activities to manage the documented information:

a) Ensure the minimum content:

- Creation or registration date

- Responsible person of the content

- Product reference, batch, date, …

- Modification level

- Paper or electronic signature

b) Storage and preservation: ensure the integrity of the information during the required

retention period.

In case of Safety and Regulation documents/records, this implies, at least:

- Provide backup copies and protective measures against fire, floods, cyberattacks,

etc.

- Only authorized access.

- Any subsequent modifications of the data must be not possible.

- Hard-copy used must ensure the preservation and legibility during the complete

retention period (e.g. thermic paper is not appropriate for that reason).

In case of others document/records, the applicable measures must ensure the integrity

of the documents/records.




c) Traceability must be ensured. Supplier must be able to determine from the delivery

information and/or identification on the part, the documents and related records. See

paragraph 4.7 “Identification and Traceability”

(*)In case of longer retention periods are requested by Gestamp, Gestamp customers, and/or

legal or statutory requirements, those must be fulfilled.

Refer to VDA Volume 1

Refer to IATF 16949 chapter 7.5.3 and 7.5.3.2.1

2.1.9 Order and cleanliness

The supplier shall adopt a cleanliness standard to establish and maintain a clean and orderly

work environment including the offices. Gestamp strongly recommends the 5S methodology to

establish this standard.

2.2 Product Safety Officer

The suppliers shall have documented processes for the management of products and

manufacturing processes related to safety (Refer to IATF 16949 clause 4.4.1.2)

Gestamp requires the suppliers to define in their organization a management role known as

“Product Safety Officer (PSO)”

The nomination of the PSO must be fulfilled through the Supplier Portal:

- Contact details of PSO and its deputy. - Evidence of the qualification of the PSO, if available.

The suppliers are responsible to keep the PSO information updated in the Supplier Portal.

Similarly, the suppliers shall require their suppliers the designation of a PSO and the fulfillment

of the following requirements.

The Product Safety Officer (PSO) is responsible of the following tasks:

o Contributing to, developing and setting priorities for eliminating or preventing product

safety-relevant defect in the product development phase (error prevention).

o Working independently, initiating and verifying product, process and engineering-

relevant decisions in the course of product development and additional product

enhancement (e.g. FMEA or risk assessment procedures) provided that there is an

impact relevant to safety.

o Preparing, maintaining, and enhancing "lessons learned" checklists for the qualified

review of designs, production, processes, or for the material properties under product-

safety relevant aspects.

o Ensuring the training for personnel involved in product safety related products and

associated manufacturing processes.

o Ensuring the transfer of requirements with regards to product safety throughout the

supply chain.

o Ensuring the traceability by at minimum the manufactured lot throughout the supply

chain.




o Executing or initiating and assessing component or material analyses with the goal of

detecting indications of deviations relevant to product safety at an early stage.

o Independently executing or initiating regular inspections of processes, production,

material and products of the current series for the confirmation of product safety for

proper and predictable use or misuse and the introduction as well as tracking of

(immediate) measures in the case of relevant deviations.

o Assessing the probability and frequency of failure of the affected product in the event

of failure.

o In the event of a complaint, the planned corrective measures, their implementation and

long-term effectiveness shall be verified. The effectiveness of the measures shall be

reviewed, confirmed and documented in writing by the supplier PSO.

o In the event of a complaint or voluntary declaration, communication shall be directed

via the person responsible for component with the client.

o The PSO shall advise with respect to the quality and confidentiality of the information

(clear information regarding the error pattern, limitation, probability of failure, etc.).

Note: If sub-aspects of the described tasks are not possible or not necessary due to the type of

product (e.g. with raw material suppliers) or due to the manufacturing process, this shall be

substantiated and product safety compliance shall be verified by an alternative safeguard.

The PSO competencies and knowledge required:

o Detailed knowledge of the manufactured product as well as its function and usage,

either in their own facilities or customer´s.

o Identify statutory and regulatory requirements related to product-safety. .

o Know the risk assessment methods and their application.

o Report directly to Management, Factory Manager and/or Quality Director for those

topics concerning product safety.

o Should be empowered to stop production in case of problems which could affect

product safety.

Knowledge

Detailed knowledge of the product

Knowledge of legislation and relevant regulations

Knowledge of customer’s specific requirements

Risk assessment methods (e.g. probability of

breakdown, expected service life, etc.)

Tasks

Prevention of failures since the product development phase (e.g. FMEA, lessons

learned)

Continuous verification of the product safety (“Line

walks”)

Evaluation and monitoring of corrective actions.

Centralized communication (quick, direct, confidential)

Market surveillance1 (e.g.

warranty costs, customer’s portals, damaged parts on

field, recalls, etc.)

Competencies

Report directly to management

Can stop production in the event of safety problems

One PSO per production facility

The PSO must be entered in the Supplier’s Portal




(1) Information for market surveillance can be found, among others, in the portals

http://ec.europa.eu/consumers/consumers_safety/safety_products/rapex/index_en.htm

http://www.nhtsa.gov/Vehicle+Safety/Recalls+&+Defects

2.3 Environmental management

Gestamp recommends their suppliers to be certified according to the current standard ISO

14001 “Environmental Management System”. Those suppliers not certified according to ISO

14001 are required to provide a self-assessment of compliance with environmental

requirements, which will be requested through Supplier Portal.

Whether certified or not, suppliers are required to adopt a responsible environmental

management system which satisfies all applicable legal requirements. It is the responsibility of

the suppliers to be informed of those legal requirements, including the specific requirements of

each country/sector (GADSL, REACH,…) as well as its fulfillment.

The responsibility of the supplier in environmental matters covers the materials, machines and

facilities used, the organization at workstations, warehouse, transport service, processes

definition … being necessary to analyze continuously all possibilities regarding to:

o Development, acquisition or production of products that respect the environment.

o Planning and development of processes that respect the environment.

o Ensure the environmental compatibility of the substances supplied.

o Avoid the use of problematic substances.

o Reuse of ancillary materials (lubricants, coolants, water …)

o Monitoring and continuous reduction of the use of energy, water, raw materials …

o Use of packaging, and a logistic concept respectful with the environment.

Gestamp expects that suppliers carry out, at least, the following activities regarding

environmental issues:

o Conduct periodic assessments of environmental management system.

o Determine targets for the key aspects of environmental protection (such as use of

energy, water, raw materials) and keep track of them.

o Determine and implement improvement measures in the field of environmental

protection (see above points).

o Analyze and periodically check legal provisions.

o Train and inform regularly the employees in environmental protection topics.

2.4 Corporate responsibility

Gestamp supports the 10 principles of United Nations Global Compact (see

www.unglobalcompact.org) and requires to their suppliers and their sub-suppliers to meet

these principles.

Human rights

o Principle 1: Businesses should support and respect the protection of internationally

proclaimed human rights.

o Principle 2: make sure that they are not complicit in human rights abuses

http://ec.europa.eu/consumers/consumers_safety/safety_products/rapex/index_en.htm

http://www.nhtsa.gov/Vehicle+Safety/Recalls+&+Defects

http://www.unglobalcompact.org/




Labor

o Principle 3: Businesses should uphold the freedom of association and the effective

recognition of the right to collective bargaining.

o Principle 4: the elimination of all forms of forced and compulsory labor.

o Principle 5: the effective abolition of child labor.

o Principle 6: the elimination of discrimination in respect of employment and occupation.

Environment

o Principle 7: Businesses should support a precautionary approach to environmental

challenges.

o Principle 8: undertake initiatives to promote greater environmental responsibility.

o Principle 9: encourage the development and diffusion of environmentally friendly

technologies.

Anti-Corruption

o Principle 10: Businesses should work against corruption in all its forms, including

extortion and bribery

The supplier shall have a corporate responsibility policy which shall include at a minimum the

following principles:

a) Anti-bribery policy

b) An employee code of conduct

c) An ethics escalation policy (“whistle-blowing policy”)

The supplier undertakes to make available to Gestamp all details and information required

regarding corporate responsibility through the Supplier Portal.

Refer to IATF 16949 chapter 5.1.1.1

2.5 Legal and statutory

2.5.1 Conflict minerals

In politically unstable areas, armed groups often use forced labour to mine minerals which they

then sell to fund their activities, for example to buy weapons.

These so-called 'conflict minerals' such as tin, tantalum, tungsten and gold (3TG) can be used in

everyday products such cars.

In 2012, the U.S. Securities and Exchange Commission (SEC) adopted the final rule to implement

reporting and disclosure requirements concerning conflict minerals, as directed by Section 1502

of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010.

In the same way, the EU passed a new regulation in May 2017, which requires EU companies to

ensure they import these minerals and metals from responsible sources only, starting 1 January

2021.




Gestamp expects that the suppliers perform a responsible management of the material sources

used.

2.5.2 REACH

REACH is a regulation of the European Union, adopted to improve the protection of human

health and the environment from the risks that can be posed by chemicals, while enhancing the

competitiveness of the EU chemicals industry. It also promotes alternative methods for the

hazard assessment of substances in order to reduce the number of tests on animals.

To comply with the regulation, the suppliers must identify and manage the risks linked to the

substances they manufacture and/or market in the EU.

2.6 Occupational risk

All suppliers are obviously obliged to comply with the Labor Risk Prevention Legislation of

application in their countries. Additionally, it is positively appraised if the supplier has

implemented an occupational safety system certified according OSHAS 18001 or ISO 45001.

2.7 Logistics

2.7.1 MMOG/LE

Gestamp suppliers are requested to conduct a MMOG/LE Assessment, at least the basic version.

Global Materials Management Operational Guidelines/Logistical Evaluation (MMOG/LE) is a

supplier self-assessment and continuous improvement tool that improves materials

management efficiency and accuracy while reducing costs from errors and waste.




3 PROJECT MANAGEMENT

3.1 Product and/or process development planning

The suppliers must define a planning for product and/or process development in accordance

with Gestamp project milestones.

The suppliers are required to carry out a detailed planning at the project phase, as minimum, in

the following cases:

- New products/processes.

- Significant changes to existing products/processes.

- Transfer of productions.

The suppliers must assure that in their project planning the following aspects are considered:

- A cross-functional project team, which ensures the availability of all necessary

resources (human and infrastructure).

- Key milestones should be reflected and identified at all levels in the planning (OEM –

Gestamp – Supplier – Sub-supplier) in order to be able to check the consistency between

them. Any delay on the planning agreed with Gestamp shall be notified immediately.

- A regularly review of milestones.

- Suppliers must ensure the change management throughout the entire project. They

must have a process that guarantees that the information reaches the involved people.

The modifications that are not triggered by Gestamp or its customers must be agreed

beforehand. In any case, a new feasibility assessment must be performed.

3.2 Preventive quality activities

Within the project planning, all relevant activities related to quality assurance must be included.

Advanced Product Quality Planning (APQP) establishes the preventive quality activities to be

performed in the development phase in order to ensure that both the launch of a new project

and the series production runs smoothly.

The suppliers must carry out all activities required according to the type of product, regardless

of whether the related documentation is required or not to be submitted within the PPAP.

Development planning

PPAP-PPA Preventive

quality activities

Pass Through Characteristics

Special

characteristics




The different activities must be performed during the respective Project phase(s). The

documentation may be required at any time according to the progress of the project.

The main activities carried out during APQP are the following ones:

Manufacturing feasibility study

The suppliers shall conduct and document a manufacturing feasibility analysis for any new item

as well as for any change on product/process (e.g. modifications, transfer of production…). The

analysis shall be performed before making the offer and after making appropriate clarifications,

change proposals … Such study must be performed and approved by an interdisciplinary team

composed of all involved areas (commercial, development, production, quality, logistics …)

The feasibility study has to take into account the following:

o All project documentation (drawings, specifications, environmental regulations …)

o Generic requirements of Gestamp (purchasing requirements, logistic requirements,

quality agreements with suppliers …)

o International Standards, legal requirements …although they have not been stated

explicitly by Gestamp.

o Experiences from previous projects.

Supplier must have available all necessary generic standards (DIN, EN, ISO, VDA …) and

directives/guidelines and take into consideration always the latest version.

Such analysis includes the technical and economic feasibility as well as the availability of enough

production capacity.

The signed document “Feasibility Study” must be sent to the Gestamp Purchasing Accountable

along with the offer.

Refer to IATF 16949 chapter 8.2.3.1.3

Design review and drawings release

When the supplier is responsible of the design, the supplier must have a formal system for

performing design reviews and a drawing release. The corresponding milestones must be fixed

on project schedule. The drawing release is responsibility of Development Department of

Gestamp or Gestamp customer.

Process flowchart

The process flowchart must cover the entire manufacturing and product control process, from

reception to expeditions, including contemplated reworks.

The process steps of the flowchart must be in accordance with FMEA and Control Plan.





FMEA (Failure Mode & Effects Analysis)

A FMEA is a living document which identifies potential failure modes, their causes, and the

effects of failure for a given product or process. It also describes the actions taken to mitigate

those potential failure modes or risks.

The suppliers must develop and maintain Process FMEAs and, in case of being design

responsible, also Design FMEAs for each item supplied to Gestamp.

FMEAs per family of parts, technology … are accepted. In this case, the supplier shall perform a

specific FMEA per part including those characteristics that differ or are not included on the

family FMEA.

Gestamp requires that all FMEAs are developed according to the latest version of AIAG/VDA

FMEA Handbook, which includes a complete description for developing a FMEA. FMEAs must be

used as basis for continuous improvement for design and process.

FMEAs must fulfill the following requirements:

- must include all special characteristics as well as Pass through Characteristics (PTC)

related to Gestamp and their sub-suppliers.

- must be periodically revised (annually, as minimum frequency, for generic FMEA).

- must be available for consultation to Gestamp when required.

- shall clearly determine preventive measures (to avoid occurrence) and detection

measures (to detect non conform parts).

- The detection measures must be able to prevent that in the case of the failure mode

occurs, this reaches the internal or external customer.

- The scoring for ”severity”, “occurrence” and “detection” shall perform independently,

according to AIAG/VDA instructions. The scoring for “occurrence” must be consistent

with the design newness or process maturity and the robustness of preventive actions

defined.

- The supplier must determine their own table of scorings adjusted to their own product

and process characteristics, which will be submitted to Gestamp upon request. In

combination of the three factors (”severity”, “occurrence” and “detection” ) the need

for risk-reducing actions may be prioritized as High, Medium or Low according to

AIAG/VDA FMEA handbook logic (RPN defined in older AIAG and VDA manuals

disappears).

Refer to AIAG/VDA FMEA Handbook

Prototype control plan

Whenever prototypes are provided, a prototype control plan must be established. The content

itself must be agreed with Gestamp.




Control plan

The control plan is a written description of the system for controlling parts and processes.

Family Control plans are acceptable for similar parts using a common manufacturing process.

The supplier shall have a Control plan for pre-launch and production that shows linkage and

incorporates information from the process flow diagram and risks analysis (FMEAs).

Gestamp requires that all control plans are developed according to the latest version of VDA

Volume 4 and/or AIAG APQP, which includes a complete description for developing a control

plan.

Production control plans must fulfill the following requirements, among others:

- Shall include all process steps, from reception to expeditions.

- Shall include periodic product layout inspection and product audit.

- Shall include all methods used for the control of manufacturing process, including, as

minimum:

o Verification of job set-ups,

o First-off/last off part validation, as applicable,

o Controls performed over Special Characteristics and over Pass Through

Characteristics.

- Control plans shall be reviewed and updated when necessary: e.g. any change in the

product, after a customer complaint, after nonconforming products have been sent to

customer, in regularly frequency according to risk analysis…)

- Other documents may be referred to in the Control plan but always keeping its clarity.

In that case, these documents must be submitted together with the Control plan in the

PPAP.

The pre-launch Control plan must include reinforced controls during the Project start-up that

ensure the quality of the product supplied during this project phase.

VDA Volume 4 and AIAG APQP.


Measurement System Analysis (MSA)

MSA aims to ensure the use of the right measurement system during production.

The Supplier must at least perform a Gage R&R (Repeatability & Reproducibility) study for each

family of control device listed on the Control Plan.

Gestamp requires that all MSAs are developed according to the latest version of VDA Volume 5

and/or AIAG MSA, which includes a complete description to qualify a measurement system for

use by quantifying its accuracy, precision, and stability.




The following requirements must be fulfilled, among others:

- For special characteristics, the study shall be conducted specifically for each

characteristic.

- For other characteristics, the study performed by the same measurement device over

similar characteristics may be accepted. In this case, it shall be determined which is the

minimum variability (TV: Total Variation) of the process valid for the measurement

devices:

𝑇𝑉 ≥ 10 𝐺𝑅𝑅 Acceptable measurement system

𝑇𝑉 ≥10

3 𝐺𝑅𝑅 Measurement system acceptable under conditions

- The gauge device used should have a minimum resolution of 5% of tolerance.

- In general, variable study shall be conducted over a minimum of 10 parts, measured 3

times by 3 different operators.

- Attribute gauge study shall be conducted over a minimum of 50 parts, measured 3 times

by 3 different operators.

- In case of measuring systems in which there is no operator influence, such as measuring

automatic systems, the study can be performed with a single operator. Before

performing this type of study, it is necessary to ensure that there is not really operator

influence. For example, in measurements made in CMM with measurement program

where it may have variability between operators when putting the sample in the

measurement tool.

- The measurements must be made by operators who normally perform the controls.

- In the case of variable measurement systems, the selected sample parts shall cover the

entire process variability.

- In case of attributes measurement systems studies, OK/No-OK parts will be taken, in

both cases near the acceptation limit whenever possible.

- Measurements are performed upon the established measurement method and under

the measurement conditions in which the control will be developed during production

phase.

- When the established measurement process so requires, each operator will perform the

calibration or reset of the devices before each series of measurements, without

performing the calibration/reset again.

- The parts will be measured in a random order without operators knowing the real value

of the part to be measured and/or the result of previous measurements or others

operators.

- In order to calculate %R&R, it will be taken the required tolerance or process variation

according to the intended use for the measurement systems:

o Study based on tolerance: 100% inspection of special characteristics or control

of others characteristics during series production.




o Study based on process variation calculated from the standard deviation of

the process (σ): Calculation of process capability (Cmk, Cpk, Ppk) or statistical

process control (SPC) during series production.

o Study based on process variation calculated from study samples: Calculation

of process capability (Cmk, Cpk, Ppk) or statistical process control (SPC) during

series production when the process standard deviation is not known.

This method may only be used when the process is capable and the sample parts

represent the entire process variability.

o Study based on process variation calculated from the capability index required

for the process: Calculation of process capability (Cmk, Cpk, Ppk) or statistical

process control (SPC) during series production when the process standard

deviation is not known and it cannot be ensured that the samples represent the

entire process variability and this is capable.

o The following criteria will be used for the acceptance of the measurement systems:

%GRR Decision

%GRR ≤ 10% Measurement system is acceptable

10% < %GRR ≤ 30% The supplier must try to improve the measurement system. If this is not possible, it must be accepted by the quality department of the supplied plant.

%GRR > 30% Measurement system is unacceptable

Refer to VDA Volume 5 and AIAG MSA

Refer to IATF 16949 chapter 7.1.5.1.1




Capability studies

The Supplier shall evidence statistically the capability of the process to produce parts under

specification.

Gestamp requires that all process capability studies are developed according to the latest version

of VDA Volume 4 and/or AIAG SPC, which includes a complete description to measure and control

quality by monitoring the manufacturing process.

Capability of the process must be ensured for all special characteristics during:

- Submission of initial samples: Ppk must be used when reporting capability for PPAP.

- Series production: shall be statistically monitored following SPC rules (X̅ and R within its

control limits, trend analysis, behavior patterns,...).

Before assessing the process capability, supplier must confirm that the values obtained follow a

normal distribution and the measurement system is adequate (MSA study).

For those characteristics not measurable or only measurable with destructive methods, the way

of proceeding must be agreed with Gestamp.

Processes Indexes:

There are three indexes used in determining process capability:

Machine capability (Cmk)

o Minimum requirement: Cmk ≥ 1.67

o Sample: minimum 50 consecutive parts without making any adjustments on the process.

Process performance (Ppk)

o Minimum requirement: Ppk ≥ 1.33

o Sample: minimum 50 parts spread over a batch

o If the process is not in a state of statistical control this index should be used.

Process capability (Cpk)

o Minimum requirement: Cpk ≥ 1.33

o Sample: minimum 30 samples of 5 parts taken on different batches covering the entire

process variability (different batches of material, different operators, different shifts,…)

o It should be only used when the process is in a state of statistical control because it

evaluates only the variability within each sample (not between samples)

In the event of non-compliance with the capability minimum values, the supplier is required to

perform 100% inspection and/or to implement a “mistake-proofing” control method (e.g.Poka

Yoke) in order to ensure the conformity of the supplied parts. However, Gestamp encourages

their suppliers to carry out an in-depth analysis of the processes to determine the root cause of

the low capacity of the production process and meet the minimum requirements.




Index Minimum Requirement Sample

Machine capability (Cmk) Cmk ≥ 1.67 Minimum 50 consecutive parts without

making any adjustments on the process.

Process performance (Ppk) Ppk ≥ 1.33 Minimum 50 parts spread over a batch

Process capability (Cpk) Cpk ≥ 1.33

Minimum 30 samples of 5 parts taken on

different batches covering the entire process

variability (different batches of material,

different operators, different shifts,…)

The suppliers must confirm that the software used to calculate these indexes is based on the

following formulas:

𝐶𝑎𝑝𝑎𝑏𝑖𝑙𝑖𝑡𝑦 𝑖𝑛𝑑𝑒𝑥 = min [𝑈𝑆𝐿 − �̂�

3�̂�,�̂� − 𝐿𝑆𝐿

3�̂�]

Where USL and LSL are respectively the upper and lower specification limits, and µ ̂and σ̂ are the

mean and standard deviation estimated of the process.

Index Estimated µ ̂ Standard Deviation σ̂

Cmk �̂� = �̅� =1

𝑛∑ 𝑥𝑖

𝑛

𝑖=1

�̂� = �̂�𝑠 = √1

𝑛 − 1∑(𝑥𝑖 − �̅�)2

𝑛

𝑖=1

Ppk �̂� = �̅� =1

𝑛∑ 𝑥𝑖

𝑛

𝑖=1

�̂� = �̂�𝑠 = √1

𝑛 − 1∑(𝑥𝑖 − �̅�)2

𝑛

𝑖=1

Cpk �̂� = �̅� =1

𝑛𝑘∑ 𝑥𝑖

𝑛𝑘

𝑖=1

�̂� = �̂��̅�𝑑2

⁄=

�̅�

𝑑2=

∑ 𝑅𝑖𝑘𝑖=1

𝑘⁄

𝑑2

or

�̂� = �̂�𝑠̅𝑐4

⁄ =

∑ 𝑠𝑖𝑘𝑖=1

𝑘⁄

𝑐4

For unidirectional characteristics (roughness, concentricity,…) will be used only the

corresponding term regarding upper or lower specification level CmkU, PpkU, CpkU o CmkL, PpkL, CpkL.

Refer to VDA Volume 4 and AIAG book SPC.


Status of purchased parts

The quality planning and the approval of outsourced parts to the sub-suppliers must be

accredited in an appropriate manner.




Status of in-house manufacture parts

The internal approval of in-house manufacture parts must be accredited in an appropriate

manner.

Status of means of production

The planning and approval of means of production and control must be accredited in an

appropriate manner.

List of measurement and verification systems specific to the product.

The planning and approval of the measuring and verification systems specific to the product,

either in-house manufactured or acquired from third parties, must be demonstrated in an

appropriate manner.

Packaging, identification and transport

During the development phase, packaging, identification and transport conditions shall be

defined.

Refer to paragraph 4.8 Packaging and labeling.

Standardized work Instructions and visual standards

All steps of the entire productive process must be described through controlled and approved

work instructions (e.g. assembly instructions, testing, packaging, visual aids…). These work

instructions must be clear and in the language of the operators.


Process audit

Supplier must verify through an internal audit the process maturity. Such audit shall be

conducted in series production conditions before or during the initial samples manufacturing.

Capacity verification

Supplier shall conduct a capacity evaluation to confirm if the required volumes can be ensured.

For non-dedicated production means, the capacity used for others projects must be taken into

account.

3.3 Product and Process Approval (PPAP – PPA)

PPAP/PPA is the part approval process based on the submission of initial samples and their

associated documentation that must be verified by the customer prior to shipment of parts

(Refer to IATF 16949 Chapter 8.3.4.4)

Gestamp requires that all Production Part Approval Process are developed according to the latest

version of VDA Volume 2 or AIAG PPAP, which includes generic requirements for production part

approval.




The supplier must perform PPAP submission in any of the following scenarios:

- Release of new part.

- A change in the product previously approved.

- A change in the process previously approved.

- A change in supplier location.

Note: If there is any question concerning the need of initial samples submission, the supplier

must contact Gestamp.

The production approval process will be performed once the process is adjusted. The supplier

must take into account, during project planning, the necessary time for the tasks related to the

shipment of PPAP including adjustment phases.

Product for PPAP/PPA shall be taken from a lot (Significant Production Run) of as minimum 300

parts or 4 labor hours (what occurs first) manufactured and controlled in series conditions

(production and control means, sequence, operators, control plans, parameters, speed ...). The

production lot will start when the process works stably and without anomalies and/or

interruptions. In exceptional cases, it may be agreed a different batch size, for example in case

of an amount of annual reduced production, expensive parts of production with many cavities.

The initial samples shall be submitted to Gestamp of each supplied plant. As a general rule, PPAP

documentation will be submitted through Gestamp Supplier Portal

(https://www.gestamp.com/Suppliers).

Gestamp will determine the method PPAP or VDA PPA required as well as the submission level

(according to AIAG PPAP or VDA PPA manuals)

In case that the same part is supplied to several Gestamp plants, it could be agreed to submit a

full PPAP to one of the plants and another simplified PPAP to the rest of the plants. This PPAP

simplified means that each of the plants will receive, as minimum:

- The cover page (PSW or PPA)

- The approval of the full PPAP / PPA by the pilot plant

- The initial samples

- The samples for assembly tests

Any other requirement can be additionally requested by the plants. It is the decision of Gestamp

to accept or not this PPAP simplified.

The supplier accepts that PPAP submission (initial samples and associated documentation) are

free of charge for Gestamp. If the PPAP cannot be approved for any reason attributable to the

supplier and a new submission is required, the cost of management of the new submission

(review of the documentation, measurement of the parts, test …) may be charged to the

supplier.

Some of the items belonging to PPAP submission are the following ones:





Initial samples

During the production lot, 6 initial samples will be taken randomly and distributed throughout

the lot (not all of them in the beginning or in the end) per line, tool, cavity…

From these 6 parts: 1 part will be retained at the supplier facility as a master sample, and the

remaining 5 parts will be sent to Gestamp along with its dimensional report.

Ballooned drawings

A ballooned drawing is a copy of the drawing where each characteristic (dimensions,

specifications, notes ...) is marked with a consecutive number. The numbers on the ballooned

drawing must correlate with the numbers of the Dimensional Report.

Authorized engineering change documents

In case of changes not yet recorded in the design records (drawing, specifications …), the

authorized engineering change documents must be submitted.

Failure Mode and Effects and Analysis

The supplier reserves the right to not submit a detailed FMEA during PPAP/PPA submission.

However, if FMEA is requested in the submission level, the supplier shall send a summary of the

FMEA: amount of failure modes with RPN, actions taken,...

In any case, the completed FMEA will be available for consultation at the supplier facility upon

Gestamp request.

Dimensional report

The suppliers are required to submit dimensional report under the following conditions:

- The dimensional report should include all drawing dimensions measured in 5 parts.

(unless otherwise agreed in written)

- In case of different lines, tooling, molds with several cavities… a dimensional report

(with 5 parts) must be submitted per line, tool, cavity,…

- The dimensional report must show the numeric values for each part (it is not acceptable

to show “OK”, “Conforming”… or only indicate the maximum and minimum values of

measured parts).

- All notes specified on the drawing must be also included on the dimensional report.

- The measured parts shall be submitted as initial samples, being numbered in a way that

are traceable with the results of reports. In the case that for measuring a part it is

necessary to cut the part, the way of proceeding will be agreed with the Quality

department of supplied plant (normally these dimensions shall be measured with other

parts produced immediately following the initial samples, indicating this fact on the

report samples). The cut pieces of parts must be also submitted with the samples.

Material certificate

The suppliers shall submit a material certificate used for the initial samples production. The

certificate cannot be older than one year.




For metallic components the material certificate will be according to EN 10204 3.1. For suppliers

out of the Europe, it could be accepted material certificates according to other equivalent

standards if the following requirements are met:

o The manufacturer declares that the products supplied are in compliance with the

requirements of the order and is supported by evidence of the manufacturer’s test

results.

o The inspection is carried out on the product to be supplied or on test units of which the

product supplied are part.

o The document is validated by the manufacturer’s authorized inspection representative,

independent of the manufacturing department.

o If test results obtained by specific inspection on primary or incoming products are

transferred to the material certificate, the supplier must assure the traceability and

provide the corresponding inspection document when required.

o The inspection document shall be validated by the responsible person (name and

position).

For other materials (non metallic components) the type of certificate will be agreed with

Gestamp.

Performance tests results

The suppliers shall submit a report with all the test results regarding material and/or

performance requirements specified by the design record.

The report must contain:

o Date tested

o Responsible

o Test conditions

o Methods used

In case of tests performed by external labs, they must be certified in accordance with ISO IEC

17025.

IMDS

The supplier is committed to complete the IMDS database (http://www.mdsystem.com/ )

concerning the presence of banned substances in the composition of the products delivered to

Gestamp, in order to comply with Directive 2000/53 / EC.

The IMDS recommendations and the individual OEM requirements must be taken into account.

The IMDS-pdf report, approved by Gestamp, must be included in the initial samples report.

3.4 Special characteristics

Special characteristics require special attention given that its non-compliance could cause that

safety, regulatory compliance, product function, assembly…is affected.

http://www.mdsystem.com/




Generally, the special characteristics are categorized in:

- Critical characteristics: those characteristics whose non-compliance can affect safety or

regulatory/legal compliance.

- Significant characteristics: those characteristics whose non-compliance can affect

product function, assembly,…

Special characteristics in the parts may be defined from Gestamp or Gestamp’s customers.

However, it is also supplier responsibility, to define any special characteristics as a result of the

supplier´s risk analysis (e.g. FMEA), at the start of the project.

The special characteristics are identified by symbols in drawings and/or technical documents.

- The suppliers must know these symbols: every stakeholder involved at supplier,

including workers, must understand the meaning, importance and the applicability of

the special characteristics.

- The suppliers must include all special characteristics in all related documentation (such

as FMEA, control plans and work instructions) by using the specific symbol.

- In case of not using the specific defined symbol, the supplier can use their own symbols

for internal use but in that case the supplier shall :

o Document the equivalence of the internal symbols with the symbols defined by

Gestamp or by Gestamp’s customer (e.g. through a table).

o Send the equivalence table to Gestamp upon request.

Refer to IATF 16949 chapter 8.2.3.1.2 and 8.3.3.3

3.5 Pass Through Characteristics (PTC)

Parts with PTC are parts with features that cannot be checked prior to use by Gestamp’s

customers or final users and therefore, in case of being nonconforming, probably would not be

the detected by Gestamp; but they could cause problems at our customers or final user.

- The PTCs may or may not be special characteristics.

- The PTCs must be included both in the FMEA and Control Plan.

- The PTCs must be identified through all documents.

In case that suppliers have PTCs with their sub-suppliers, Gestamp must be informed and be

aware of the measures and controls taken by sub-suppliers, which ensure that non-conforming

items cannot be transferred to Gestamp. Such measures and controls shall be included on

FMEAs / Control Plan of Gestamp suppliers.




4 SERIES PRODUCTION

4.1 Quality assurance during serial production

The suppliers shall verify and monitor the product and process quality during series production

by performing the controls defined on the Control Plan:

- In the control records, the results of each controlled characteristics must be

documented and, in case of variable characteristics, numerical results must be recorded.

- A copy of control records must be provided to Gestamp if requested.

- Any modification in the Control Plan shall be previously notified to Gestamp.

If there is any deviation from the specifications in any characteristic, the suppliers shall perform

the appropriate identification, segregation and containment measures:

- The supplier must notify immediately to Gestamp if there has been a risk of having

delivered any nonconforming part. This also applies to suspect products.

- Non-conforming products, which cannot be reworked or repaired, must be scrapped.

- The shipment of non-conforming parts or reworked parts is only possible after the

approval in writing by Gestamp (deviation permit).

- The non-conforming or reworked parts delivered under a deviation permit must be

identified and segregated of conforming parts. See also chapter 5.4 Deviation /

Concession permit.

Operators shall use the most current work instructions available at work station.

The supplier must ensure the control of parts with special characteristics during series

production, through at least:

- Identification of all special characteristics on all documents/work instructions

- Training on special characteristics to all operators involved.

- Achievement of process capability (Cpk)/ SPC, poka-yoke or 100% inspection (refer to

chapter 3.2 Preventive quality activities)

Serial production Verification and acceptance of

material

Verification of set-up

Layout inspection &

Requalification

Maintenance of production

means

Control of measuring equipment

Identification and traceability

Packaging and labeling

Changes on the product or

process




- Annual Safety and Regulation self-assessment, only for S/R characteristics (refer to

chapter 2.1.4 Internal audits)

- Gage R&R studies shall be conducted specifically for each special characteristic (refer to

chapter 3.2 Preventive quality activities)

- Ensure archiving requirements (refer to chapter 2.1.8 Documentation and archiving)

Refer to ISO 9001 chapter 8.5.1

4.2 Verification and acceptance of externally provided material by Gestamp

The suppliers are responsible for sending defect-free parts to Gestamp. The necessary controls

to ensure the quality of the parts are performed by the supplier at their facilities, according to

the Control Plan approved in the initial samples submission.

Gestamp does not necessarily perform an inspection of a 100 % of the deliveries.

In justified cases when Gestamp is forced to perform additional incoming inspections (e.g. parts

without PPAP approved, quality issues, supplier included in an improvement program…) the cost

of these inspections may be charged to the suppliers.

In case of a posteriori defect detected at Gestamp facilities or Gestamp customers, the suppliers

still have the responsibility of the defect parts.


4.3 Verification of job set-ups

The suppliers shall have a process to verify that the set-up at the start of production has been

successfully performed:

The suppliers must determine in which situations a new verification of the start of the

production must be done (e.g. new production batch, new raw material batch, after

maintenance, tool change, adjustment of parameters, after an extended stop, shift change…)

The first-off validation and last-off part validation shall be performed, as applicable.

The documented information for set-up personnel shall be available and records of verification

of job set-ups shall be retained.


4.4 Layout inspection and functional testing /requalification

The suppliers shall perform periodic layout inspection and requalification of the parts in order

to confirm that their products in series still meet requirements arising from drawings and

specifications.

The Control Plans must include both Layout inspection and re-qualification, their frequency and

number of samples to be tested.




Layout inspection:

- For all parts supplied to Gestamp.

- Frequency: Every year (unless otherwise stated on project phase with Gestamp or

Gestamp customer specific requirement)

- Scope: must include all dimensions, functional tests and characteristics of drawings,

similar to the submission of initial samples (unless otherwise agreed in written with

Gestamp)

Re-qualification:

- For all parts supplied to Gestamp.

- Frequency: Every 3 years (unless otherwise stated on project phase with Gestamp or

Gestamp customer specific requirement)

- Scope: it must include:

o all PPAP documentation (Flow chart, control plan, MSA, FMEA summary ...)

(unless otherwise agreed in written with Gestamp),

o a Layout Inspection and,

o a functional testing

In the case of any deviation found, the supplier must immediately contact with Gestamp.

The supplier shall provide to Gestamp the results of the latest layout inspection and/or

requalification if requested.

The supplier shall perform such layout inspection and requalification without being required by

Gestamp. If requested by Gestamp, evidences shall be submitted.

Refer to IATF 16949 Chapter 8.6.2

4.5 Maintenance of production means

The suppliers shall develop a documented total productive maintenance system, including:

- A schedule of the maintenance activities for all production means (installations,

machines, tools, …) including preventive maintenance.

- Predictive maintenance, as applicable.

- All corrective, preventive and predictive maintenance must be recorded.

- The supplier shall establish maintenance indicators, for example: OEE (Overall

Equipment Effectiveness), MTBF (Mean Time Between Failures) and MTTR (Mean Time

to Repair).

- The maintenance plan as well as the indicator shall be regularly review and analyzed in

order to improve the maintenance system.




- The status of the tools (OK, No OK, under repair) must be known to prevent the use of

non-conforming tools. After a repair, it must be verified that the quality of the produced

parts has not been affected before releasing the tool for production.

- The availability of spare parts must be assured. Among others, the supplier must define

a list of critical spare parts, control the inventory, a minimum number of spare parts …

Note: It is also supplier responsibility to include in the preventive maintenance planning all

control gauges and equipment belonging to Gestamp but located at supplier facilities, unless

otherwise agreed in written.

Refer to IATF 16949 chapter 8.5.1.5 and 8.5.1.6

4.6 Control of measuring equipment

The suppliers shall establish a documented process for managing calibration/verification

activity for all control devices and measuring and test equipment, including:

- All measuring equipment involved on product characteristics.

- All measuring systems of process characteristics (many times integrated in production

equipment’s such as thermocouples, pressure gauge,…) which have influence on the

product quality.

- Gage blocks or measurement systems used for the calibration of other measurement

systems.

Note: It is also supplier responsibility to calibrate/verify all control gauges and equipment

belonging to Gestamp but located at supplier facilities, unless otherwise agreed in written.

The organization shall ensure that calibration/verification activity fulfills the following

requirements:

- For the calibration of the measurement systems, the uncertainty calculations to be

taken k= 2.

- The gage blocks used for calibration will have an uncertainty to not exceed one third of

the required uncertainty to the control mean.

- The external calibration shall be only made by companies certified according to ISO IEC

17025 and for categories, areas and instruments for which they are accredited by a

national accredited body officially recognized (ENAC, DAkkS, COFRAC, UKAS, …).

- Exceptionally, when the calibration by an accredited body is not possible, calibrations of

specific measurement systems done by the equipment manufacturer can be accepted.

Refer to IATF 16949 chapter 7.1.5.2.1 and 7.1.5.3.2

4.7 Identification and traceability

The suppliers must have an identification and traceability system of the product during all

process phases and in all inventory locations.




The identification system must ensure:

- The status of the product must be identified to mitigate the risk of suspect, non-

conforming or unapproved product being used or shipped to Gestamp.

- Containers for scrap and rework must be appropriately identified. Quarantine areas

must be clearly recognizable and preferably closed. The access to unauthorized

personnel must be restricted.

In case of risk of mixing or confusion in the flow of material, for example mixing of similar items,

operations not done (e.g. calibration, heat treatment, visual control…), in addition to the

identification, the suppliers shall implement extra measures (e.g. Poka-Yoke, bar code…)

The traceability system must comply with:

- When required by Gestamp the supplier must be able to identify all information related

to a supplied part (drawing version, production date, line, material, operator …)

- Supplier shall ensure for all parts the traceability for the batch of material used and the

production batch.

- Supplier must ensure that all parts from a production batch are consistent on

traceability level, that is, same material batch, same manufacturing process, same

parameters, same set-up …

The FIFO (First In – First Out) principle must be assured along the entire process of production

and shipping. In case FIFO is not used, the supplier must notify to Gestamp.

Refer to IATF 16949 chapter 8.5.2.1 and 8.5.4.1

4.8 Packaging and labeling

The defined packaging and labeling system must ensure the quality and correct identification of

the supplied product. The packaging system shall be documented in the appropriate packaging

sheet or instruction.

The suppliers agrees to only use the Gestamp packaging and label which has been approved

during PPAP submission.

Each box, container and pallet must be labeled to ensure proper identification and verification

of the product and quantity shipped. An identification label such as bar code labels or

equivalents are required and must be visible from opposite sides of the shipment.

Gestamp will define the type of bar coding used on the label (Odette, VDA, ANSI, etc). The

supplier is responsible for obtaining the approval of the label by Gestamp plant prior to

shipments.

The minimum information required on each label is:

o Gestamp part number including Revision level (if applicable)

o Part Description

o Quantity of parts

o Manufacturing date




o Unique Serial number/ Lot Information

o Supplier name

o Supplier plant location

o Gestamp receiving plant

4.9 Control of changes on the product or process

The suppliers shall notify Gestamp of any change in the product and/or process that impact

product realization and shall obtain the approval in writing by Gestamp prior to implementation

of the change.

These changes include, but not limited to:

o changes in the product

o modifications in production process and/or control process

o changes in the production and/or measurement means

o changes in the process parameters

o changes in the controls performed and/or its frequencies

o transfer of production to other lines or other plants, outsourcing of some processes or

transfer from one sub-supplier to a new one

o change of machine location

o suspension of production for longer than 12 months

Depending on the nature of the change, Gestamp may require actions to ensure that these

changes do not affect the product quality. In some cases, Gestamp may request a production

trial run and/or a new submission of initial samples.

These changes shall be listed in a historic document of product and process modifications,

indicating modification date and date of first supply to Gestamp. Through such document shall

be possible to know the product/process traceability.

Temporary change of process control

A temporary change of process control is a special case of change on the process and therefore

all of the above applies.

In some cases back-up or alternate methods can be pre-defined during the planning phase

within the framework of a contingency plan. Also for such cases:

o The Supplier shall obtain approval from Gestamp before delivering the parts.

o There must be a daily check to make sure that the production must still be performed

with the alternate method and going back to the original conditions is not possible.

o Finally it must be verified that all features of the control device or process are effectively

reinstated.

Refer to IATF 16949 chapter 8.5.6.1 and 8.5.6.1.1




5 CUSTOMER CARE

5.1 Claims management

In the case of non-conforming products identified at Gestamp, Gestamp customers or by final

users, the suppliers will be notified with a claim or alert sent through the Supplier Portal

(https://www.gestamp.com/Suppliers)

The suppliers shall answer through Supplier Portal to any claim using 8D methodology. Refer to

“Suppliers Quality User Guide” document (available in the Supplier Portal) which describes in

detail how to proceed.

The suppliers are expected to answer immediately to any nonconformity and ensure the

following response time:

- 24 hours: the supplier must perform an appropriate containment measures

- 7 days: determination of the root cause and corrective actions.

- 30 days: implementation of corrective and preventive actions, and confirmation of the

effectiveness.

Gestamp expects and encourage their suppliers to meet these response times. However, in

some cases, due to the nature of the required actions, a different due date can be agreed with

Gestamp.

The suppliers must take appropriate actions not only to solve the failure but also to prevent the

recurrence in the supplied product and in other similar parts in all Gestamp plants that could be

affected.

Claims management

Performance evaluation

Controlled shipping

Deviation/ Concession

permit

Service parts Insurance Customer property

Risk management &

ContingencyPlan


https://purchasingarea.gestamp.com/script/login/GES/ENG/docs/GES_QA_GUI_Supplier_20161001.pdf




Team creation

The supplier shall establish a cross functional team including operators. Must be defined also a

champion in order to coordinate the whole process.

Problem definition

The supplier should use tools such as WWWWWHH (What, Where, When, Who, Why, How, How

much) in order to define properly the problem.

As a result of this problem description, the issue can be re-defined.

Containment measures:

- The containment measures shall ensure the availability of OK parts at Gestamp and

avoid the use and/or shipment of NOK parts.

- The supplier must take into account all parts, including, among others:

o Parts in manufacturing,

o Finished parts at all supplier locations: internal/external warehouses, or in

transit between locations

o Parts in transport,

o Parts at Gestamp locations or at Gestamp customers

It must be explicitly detailed in the containment action plan when there are no parts in

some of the previous locations (e.g.: “it is confirmed there are not parts in stock”)

- The containment measures may include special shipments and/or the sorting or rework

of stored parts. The suppliers have the reasonable opportunity to organize these

containment activities at their convenience.

In the scope of the containment actions it is also included those actions taken to ensure

the quality of the supplied product till the application of final corrective/preventive

measures are implemented.

Root cause analysis:

- The supplier must perform a rigorous internal analysis by using problem solving tools

(e.g. Ishikawa, Factor Tree Analysis, 5 Whys, PDCA …).

- This analysis will led to identify the causes of the occurrence and the causes of the non-

detection of the defect.

Corrective and preventive measures:

- The supplier must apply for each of the identified root causes effective measures.

- Effective measures have the following features:

o are independent from the operator.

o solve the root cause of the problem.

o are robust in front of eventual external influences.

- control activities are only partially appropriate because they do not eliminate the root

cause of the failure




- Trainings, information and awareness to workers as a stand-alone corrective action will

not be accepted.

Effectiveness of preventive/corrective measures:

- The supplier, after implementing preventive and corrective measures, must perform a

monitoring of the following production batches.

- Only once the effectiveness of the corrective measures is confirmed, the containment

measures are not longer needed.

The supplier is responsible for all costs associated to claims management (e.g. tests costs,

sorting, reworks, scrap, additional transport, additional shifts, line stoppage,…)

The Supplier is aware that Gestamp does not always get all defective parts back from their

customers; especially in case of warranty claims or if the customer finally reworks the parts. The

Supplier, therefore, hereby agrees that in these cases they also will get back none or a small

number of defective parts (e.g. for analysis purposes) and will not lodge any claims and/or

objections to Gestamp in that respect.

Refer to IATF 16949 chapter 10.2.3 / 10.2.4 /10.2.5 and 10.2.6

5.2 Performance evaluation

Gestamp monitors the performance of their suppliers taking into account the service provided

by them (in terms of quality, logistics, customer satisfaction and costs of non-quality).

This performance is automatically calculated every month and the results are available in the

Supplier Portal [Quality Ratings] (https://www.gestamp.com/Suppliers). The supplier must

enter into the Portal every month to check its performance status.

Depending on the achieved performance, the suppliers are classified as A, B or C. In case of a

“C” scoring, the supplier may be included on an Improvement Program, with the obligation to

present an action plan through the Supplier Portal.

The supplier might be downgraded to “D” whenever any of the minimum Gestamp requirements for supplier evaluation are not fulfilled. (Refer to Instruction 6477804391 “Performance indicators of direct material suppliers” for detailed information)

Gestamp requires that the suppliers review their scoring each month and implement continuous

improvement actions in order to achieve the highest performance, not just in case of “C” scoring,

without explicit requirement by Gestamp.


5.3 Controlled shipping

In case of recurrent problems and in order to prevent the shipment of non-conforming parts,

Gestamp may impose to the supplier the execution of CSL1 (Controlled Shipping Level 1). In case

of non-effectiveness of CSL1, Gestamp may request a CSL2 (Controlled Shipping Level 2).

By means of the execution of the CSL1 measure, the supplier is obliged to perform at their

expense the following activities:





o An immediate revision of 100% of the stocks in all locations i.e. supplier, Gestamp and

customer facilities, intermediate warehouses, transit...at the notification moment.

o A redundant revision for new productions of 100% by the supplier. Such verification

must be done outside the normal manufacturing process, normally when the parts are

ready to enter the warehouse, and does not replace any of the established controls in

the Control Plan.

o Recording of results of manufacturing process verification (first revision) as well as 100%

inspection (second revision) and its daily provided to Gestamp.

By means of the execution of the CSL2 measure, the supplier is obliged to perform at its expense

the following activities:

o An immediate revision of 100% of the stocks in all locations i.e. supplier, Gestamp and

customer facilities, intermediate warehouses, transit ... at the notification moment by

an external sorting company. The choice of the service company requires the approval

of Gestamp.

o A redundant revision for new productions of 100% (second revision) by the supplier.

Such verification must be done outside the normal manufacturing process, normally

when the parts are ready to enter the warehouse, and does not replace any of the usual

controls established in the Control Plan.

o A redundant additional revision of 100% (third revision) by an external sorting

company. Such verification must be performed at Gestamp facilities.

o Recording of the results of manufacturing process verifications (first revision) as well as

the redundant 100% inspections and its daily provided to Gestamp.

In order to come back to a normal manufacturing process, the supplier in CSL1 situation must

attest a period of 20 labour days (in case of continuous manufacturing) or 3 consecutive batches

(in case of batch manufacturing) without failures in second revision. In case of a supplier in CSL2,

the return to a normal supply situation will always go through CSL1. To switch from CSL2 to CSL1,

it must be also meet 20 days or three consecutive batches without failures in second and third

revision. The minimum size of batches shall be agreed with Gestamp. The removal of CSL1 or

CSL2 shall be always confirmed by Quality department of supplied plant.

5.4 Deviation / Concession permit

The supplier must obtain a written approval from Gestamp for the shipment of parts whenever

the product or the manufacturing process is different from which is currently defined/approved.

The request for deviation/concession permit may take place:

o During the initial samples submission, when for example:

- There is not all necessary information for evaluation.

- The parts have not been manufactured according to the final process.

- The parts are not according to the drawings or specifications.

o During the series production when the parts or the manufacturing process are

temporarily different from the approved one during the submission of the initial

samples, such as:

- Change of supplier or production transfer to a supplier.

- Loss of process capability.




- Product deviations from the approved one in the submission of the initial samples.

- Changes in the manufacturing process, manufacturing equipment or control …

- Minor defects that may be tolerable.

o In case of reworks of the parts such as:

- Due to quality problems.

- In order to modify the part according to a new drawing issue.

The deviation /concession permit must be requested by the supplier with enough time before

the planned shipment of the parts, so that Gestamp can perform the necessary checks, analysis,

additional measures … for final decision.

If several Gestamp plants are affected, a written approval of each of them will be mandatory.

The deviation /concession permit is always temporary, for a period of time or a number of parts.

Therefore, the deviations must be corrected during the period of validity of the permit.

The supplier must clearly specify on the request for deviation/concession permit the scope of

deviation /concession permit (e.g. affected parts, lots, production lines, specifications,

nonconforming characteristics with the maximum value for which the deviation/ concession is

requested,…). The deviation/concession permit will be only accepted for the defined scope.

Other defects or deviations/concessions on the same or different parts will require a new

deviation permit.

The supplier is required to take actions in order to avoid or minimize the risks associated to

such parts.

If an unexpected case arises after a deviation/concession permit has been granted, it can be

revoked and the supplier must apply the necessary corrective measures and assume the

associated costs.

The affected Gestamp plant may request to open an 8D to assure that the root cause is

understood and medium-term and long-term measures are carried out.


5.5 Risk management & contingency plan

The suppliers shall develop a risk management based on internal and external issues, in order

to ensure the continuity of supply on time, quantity and quality. As an example, the supplier

may take into account the following situations:

- Failures of machine, installation or key equipment

- Interruption of supplies, delivery problems at sub-suppliers

- Recurring natural disasters such as fires, floods, earthquakes…

- Labour shortages

- Cyberattacks

- Lack of electrical power supply, gas…

The suppliers must conduct risk management reviews at a set frequency and keep them up-to-

date.

Each threat must be classified and prioritized taking into account its occurrence and severity.




Once the prioritization is performed, the highest risks should be addressed in order to reduce

the severity and/or occurrence.

On top of the risk analysis, the supplier shall have a contingency plan prepared in advance to

mitigate the consequences in case an incident occurs. This contingency plan shall be reviewed

at a set frequency (at least annually).

Accordingly, the supplier shall notify Gestamp within 24 hours when an emergency occurs and the supply of parts may be affected.

Refer to ISO 9001 chapter 6.1.1 and 6.1.2

5.6 Customer property

Customer property refers to means, facilities, tools, equipment, materials or components

including any kind of intellectual property right or “know how”.

All property belonging to Gestamp or Gestamp customers must be identified as customer

property by the supplier.

The suppliers must treat these means with care and diligence, keeping them ready for use all

the time. The suppliers will assume the responsibility of the protection and correct maintenance

of the means.

The cost of continuous repairs, maintenance and the conservation of the means in perfect

operation conditions, will be assumed by the supplier.

In case of a mean, property of the customer reaching the end of its usable life, the supplier shall

inform Gestamp with enough time to take appropriate actions.

It is strictly forbidden to use a mean (customer property) for another use different from the

originally intended one without the prior written authorization by the customer.

The suppliers must keep the customer means in perfect operation conditions during a period

time of 15 years after the end of the series production. Once this time is over, and after having




notified this fact in writing to the customer, the obligation of the supplier to keep such means is

ended.

The suppliers must immediate return of any customer property means, being in perfect

operation conditions, as well as any documentation relating to them, upon request and without

having to make any financial compensation or any other.


5.7 Service parts

The suppliers undertake to ensure that service parts for all products supplied by them for series

production are available for at least 15 years after the end of production (after sales). Adequate

quantities of service parts to be called off by Gestamp shall be available on at least at the same

conditions and at the same quality provided before the end of production. The parties will come

to a mutually acceptable agreement on the reimbursement of any additional costs, e.g. for

packaging, transport, small quantities, etc., which may arise from the supply of spare parts.

5.8 Insurance

The suppliers undertake to keep an insurance coverage with renowned insurance companies,

which must cover appropriately the supplier’s liability towards Gestamp and third parties.

The insurance policy shall be available to Gestamp for consultation at any time.

The Suppliers shall immediately inform Gestamp of any changes to the policy.