MINTH Americas LtdMint… · 1.2 VDA 6.3 If required by Minth Americas customers, suppliers must address all requirements of VDA 6 Process Audit-Part 3 in the form of a quality manual

MINTH Americas

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Supplier Manu a l

Supplier Manual

www.Minthgroup.com MA-SRM-201

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INTRODUCTION

Established in 1992, Minth Auto Parts

Company began its humble life as a small factory

in the Xiaogang Development Zone located on the

outskirts of Ningbo. MINTH has now expanded to

become a leading supplier in design, manufacturing and sales of body structural parts, trims

and decorative parts of passenger vehicles.

Minth supplies parts to many world-renowned international automakers. Sales and Design

Centers were established in international auto markets like Tokyo, Munich, and Detroit.

Production Facilities were established in the US, Thailand, and Mexico. Looking at the future,

MINTH will expand into emerging markets, such as India, Brazil and Russia.

Minth's production facilities have introduced many advanced production lines and the

processes include extrusion, co-extrusion, roll-forming, bending, stamping, injection, surface

treatment (which includes plastic & metal painting), plating, chroming, anodizing, and more.

Minth has also formed strategic alliances with world-renowned auto parts producers, dedicated

to constantly improve its production efficiency by fully utilizing its comprehensive advantages

in cost and technology in order to keep up with the fast growing industry.

VISION Our vision for Minth America’s suppliers is a partnership with the intent of delivering

competitive, on time, quality products to the end customer.

GOAL

The goal of Minth America’s Supplier Manual is to standardize our supplier expectations by

communicating our requirements, non-conforming material handling and supplier rating

systems.

SCOPE The scope of this manual applies to all suppliers and sub-suppliers of production and service

parts, components, services and materials to any Minth Americas locations.

Table of Contents INTRODUCTION ................................................................................................. 1

VISION ............................................................................................................... 1

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GOAL ................................................................................................................. 1

SCOPE ................................................................................................................ 1

1 QUALITY SYSTEM REQUIREMENTS .................................................................. 5

1.1 IATF 16949 / ISO 9001:2015 ........................................................................... 5

1.2 VDA 6.3 ........................................................................................................... 5

1.3 ISO 14000 ....................................................................................................... 6

1.4 AIAG Quality Initiatives ................................................................................... 6

1.5 AIAG Corporate Responsibility ........................................................................ 6

1.5.1 Child labor ................................................................................................... 6

1.5.2 Freedom of Association................................................................................ 6

1.5.3 Fair Working Conditions .............................................................................. 6

1.5.4 Business Ethics ............................................................................................. 6

1.5.5 Gifts, Meals and Entertainment ................................................................... 6

1.5.6 Confidentiality ............................................................................................. 7

1.6 Supplier Diversity Reporting ........................................................................... 7

1.7 Customs Trade Partnership against Terrorism ................................................ 7

2 ESTABLISHING MINTH BUSINESS ..................................................................... 7

2.1 Supplier Self-Assessment and GAP Analysis .................................................... 7

2.2 Current Customer Scorecards ......................................................................... 8

2.3 Minth On-Site Audit ........................................................................................ 8

2.4 Electronic Data Interchange (EDI) ................................................................... 8

2.5 Supplier Portal ................................................................................................ 8

2.6 VW, Audi, VDA Agreement ............................................................................. 8

3 PURCHASING .................................................................................................. 9

4 ADVANCED PRODUCT QUALITY PLANNING (APQP) ......................................... 9

4.1 Program Timing .............................................................................................. 9

4.2 Lot Traceability ............................................................................................... 9

4.3 Shipment & Packaging .................................................................................... 9

4.4 Chemical Reporting, Labeling and Regulation ................................................10

4.4.1 End of Life Vehicle / IMDS Reporting ...........................................................10

4.4.2 OSHA Labeling ............................................................................................10

4.4.3 REACH Registration .....................................................................................10

4.4.4 RoHS Compliance ........................................................................................10

4.4.5 Conflict Materials Reporting .......................................................................11

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4.5 Customer Specific Requirements ...................................................................11

4.6 Contract Review ............................................................................................11

4.7 Contingency Plan ...........................................................................................11

4.8 Supplier Risk Assessment ...............................................................................12

4.9 Manufacturing Feasibility ..............................................................................12

4.10 Special Characteristics ................................................................................12

4.10.1 Initial Process Study Capability Index (Ppk, Cpk) .......................................13

4.10.2 Long Term Process Capability Index (Cpk) ................................................13

4.11 External Labs Certification ..........................................................................13

4.12 Minth Property & Tools...............................................................................13

4.13 Supplier APQP Checklist ..............................................................................14

4.14 Production Part Approval Process (PPAP) ...................................................14

5 LAUNCH REQUIREMENTS AND SUPPORT ...................................................... 14

6 PRODUCTION REQUIREMENTS AND SUPPORT .............................................. 14

6.1 Location Access .............................................................................................14

6.2 Continuous Improvement ..............................................................................15

6.3 Capacity Improvements .................................................................................15

6.4 Cost Reduction ..............................................................................................15

6.5 Supplier Quality Management System (QMS) Development .........................15

6.6 Sub-Supplier Development ............................................................................16

6.7 Annual Layouts ..............................................................................................16

6.8 Product, Process Changes, Tooling, Location and Other Changes ..................16

6.9 Warranty Responsibility for Suppliers ............................................................17

7 NON-CONFORMING MATERIAL CONTROL ..................................................... 17

7.1 MRR Responses .............................................................................................17

7.2 Cost Recovery Policy ......................................................................................17

7.3 Corrective Action Requests (CAR) ..................................................................18

7.4 Supplier Incoming Quality Escalation (SIQE) ..................................................18

7.4.1 Non-Conformance Communication (NCC) ...................................................18

7.4.2 Supplier Performance Review (SPR) ............................................................19

7.4.3 Regional Management Review (RMR) ........................................................19

7.4.4 Corporate Director Review (CDR) ................................................................19

7.5 MRR requirements ........................................................................................19

7.6 Controlled Shipping Status.............................................................................20

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7.6.1 Controlled Shipping – Level I (CSI) ...............................................................20

7.6.2 Controlled Shipping – Level II (CSII) .............................................................20

7.6.3 Scrap Allowance .........................................................................................21

8 SUPPLIER PERFORMANCE AND MONITORING ............................................... 21

8.1 Supplier Quality Rating ..................................................................................21

8.1.1 PPM ............................................................................................................21

8.1.2 On-Time Delivery ........................................................................................22

8.1.3 MRRs ..........................................................................................................22

8.1.4 Expedited Shipments ...................................................................................22

8.2 Introduction to Weighted Scores ...................................................................22

8.2.1 Weighted Supplier Rating ...........................................................................23

8.2.2 Missing Supplier Criteria .............................................................................23

8.3 Supplier Tiers and Explanations .....................................................................23

8.3.1 Preferred Supplier .......................................................................................23

8.3.2 Low Performance Supplier ..........................................................................23

8.3.3 Troubled Supplier ........................................................................................23

8.3.4 Second – Party Audits …………………………………………………………………………………………..21

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1 QUALITY SYSTEM REQUIREMENTS

Suppliers must be IATF 16949 1st Edition certified or ISO 9001:2015 5th Edition certified and

compliant. If a supplier is certified by an accredited third party certification, suppliers are

required to send a copy of their registration certificate to Minth Americas at

[email protected] upon the initial issuance of a purchase order and after

changes in registrar or status.

The supplier’s quality and management systems must:

1.1 IATF 16949 / ISO 9001:2015 Address all requirements of IATF 16949 1st Edition and/or ISO 9001:2015 in the form of a

quality manual. The manual must include or reference documented procedures to support the specified IATF 16949 1st Edition and/or ISO 9001:2015 requirements and be made available to Minth Americas.

1.2 VDA 6.3 If required by Minth Americas’ customers, suppliers must address all requirements of VDA

6 Process Audit-Part 3 in the form of a quality manual. The manual must include or reference documented procedures to support the specified VDA 6-part 3 requirements and be made available to Minth Americas.

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1.3 ISO 14000 Establish, document, and implement

an effective environmental health and

safety system, with the goal of

compliance to all elements of the latest

revision of ISO 14000.

1.4 AIAG Quality Initiatives Conform to all applicable AIAG

Quality Initiatives.

1.5 AIAG Corporate Responsibility Comply with AIAG Corporate Responsibility Guidance and the United Nations Global Compact.

1.5.1 Child labor

No form of labor practice involving forced compulsory or child labor is tolerated.

1.5.2 Freedom of Association

Workers must have the right to associate freely, join labor unions, seek

representation and join workers’ councils in accordance with local laws.

1.5.3 Fair Working Conditions

Working conditions, working time and compensation must be fair, complying

with the regulations, standards and practices applicable in those countries where a

supplier operates.

1.5.4 Business Ethics

Suppliers are expected to operate honestly, equitably and with fairness

throughout the supply chain in accordance with local, corruption, anti-competitive

business practices, intellectual property, company and personal data, export controls

and conflict of interest laws, including the U.S. Foreign Corrupt Practices Act (FCPA).

1.5.5 Gifts, Meals and Entertainment

Employees of Minth will not accept gifts or entertainment from suppliers. We

only ask that as a supply chain partner you provide quality product in a timely manner

at market competitive prices.

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1.5.6 Confidentiality

Suppliers must ensure the confidentiality of the end customer or Minth proprietary products, product information and projects under development and approved for production.

1.6 Supplier Diversity Reporting Document fair and non-discriminatory treatment of employees, with the guarantee of

equal opportunity and the absence of any policy aimed at or resulting in discrimination

towards them including race, gender, caste, color, pregnancy, sexual orientation, social and

personal position, health condition, disability, age, nationality, religion or personal beliefs.

Certified Minority Business Enterprises are certified by the National Minority Supplier

Development Council or one of its affiliates. Certification must be reported to the appropriate

Minth Plant Purchasing Manager on a quarterly basis.

1.7 Customs Trade Partnership against Terrorism Reference Customs Trade Partnership against Terrorism (C-TPAT) requirements (for

international suppliers only). International Suppliers will ensure timely delivery of shipment,

along with expedited clearance and improved security at the U.S. border crossings and ports

of entry by educating themselves on C-TPAT requirements.

Proof of the above is required to enter and maintain a business relationship with Minth.

2 ESTABLISHING MINTH BUSINESS

To become a business partner with Minth, suppliers must also:

2.1 Supplier Self-Assessment and GAP Analysis Provide a sustainability self-assessment and GAP analysis that provides data describing

your business’ improvement opportunities and management robustness. Visit http://www.minthamericas.com/supply-chain-forms-and-information/, download all forms and follow the instructions.

http://www.minthamericas.com/supply-chain-forms-and-information/











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2.2 Current Customer Scorecards Send the latest scorecards of all current customers. Proprietary information may be

blacked out. No other alteration of scorecards will be allowed.

2.3 Minth On-Site Audit Open facilities to a Minth representative for a quality and management audit. The audit

will verify compliance to this manual and all applicable customer and industry requirements.

2.4 Electronic Data Interchange (EDI) Have EDI capabilities.

2.5 Supplier Portal All suppliers are required to use the Minth Supplier Portal within the Plex ERP System

(https://www.plexonline.com). Suppliers are responsible to have the necessary hardware and

software to utilize Plex. Suppliers can request access to the portal by completing then emailing

the Plex Supplier Portal Account Application form (see Appendix A) to

[email protected]. A User ID, Password and Company Code will be issued.

Training will be available.

Information available to be downloaded and uploaded:

• Non-conforming product tracking system

• Cost recovery communication

• Supplier scorecard including PPM’s and delivery score with in-depth data

• Certification and Performance tracking

• MINTH and Supplier contacts

• MINTH and Customers specific forms

Additionally, suppliers are required to utilize Plex for APQP and other associated functions

as dictated by Minth Supplier Quality Engineer.

2.6 VW, Audi, VDA Agreement All suppliers for VW or Audi programs must sign, date and email to a Minth SQE via

[email protected] the “VDA Agreement Letter for Suppliers of VW and

Audi Programs”. The letter can be obtained at

http://www.minthamericas.com/suppliermanual-and-purchase-contract-incorporated-

documents/.

https://www.plex/

https://www.plex/

https://www.plex/

https://www.plex/

https://www.plexus-online.com/






http://www.minthamericas.com/supplier-manual-and-purchase-contract-incorporated-documents/














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3 PURCHASING

Minth Americas has made the decision to handle our quoting system through the use of QLM

Sourcing, which utilizes Adobe PDF technology allowing Minth Americas to streamline our

quoting process. Click on the above link, download the pdf named “Cover Letter and Cost

Breakdown form” and follow the instructions.

Acceptance of a Minth Americas purchase order is also considered acceptance of this

manual’s requirements and a supplier’s supply chain’s quality. Any products shipped to Minth

without a purchase order will be considered free samples.

4 ADVANCED PRODUCT QUALITY PLANNING (APQP)

APQP is crucial to the development and planning of new products and processes. The supplier must be knowledgeable of AIAG’s “Advanced Product Quality Planning and Control Plan” manual. Minth expects suppliers to participate in APQP and meet completion dates of its development cycles and activities.

4.1 Program Timing Suppliers are required to submit APQP timing for each program and provide weekly

timing, product and process development updates to Minth. Suppliers may be required to

attend key event builds prior to production launch.

4.2 Lot Traceability All suppliers and sub-suppliers must have an effective lot traceability procedure. The

shipper, part number and delivered product, unless approved in writing by Minth, must trace

back to the raw material. Minth reserves the right to specify a maximum batch size. Sequence

of batches must be identified on the packaging label by either a date code or batch/lot

number. Suppliers will ensure that their lot traceability system maintains its integrity

throughout the entire supply chain.

4.3 Shipment & Packaging Suppliers must package shipments to withstand damage to the product. For more details

on shipping and packaging, please see the Minth Shipping and Packaging Standard for more details.

http://www.minthamericas.com/minth-quote-submission-process-qlm/




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4.4 Chemical Reporting, Labeling and Regulation Products containing substances of concern that are restricted and/or prohibited must

comply with current legal and customer requirements.

4.4.1 End of Life Vehicle / IMDS Reporting

Product material content, recyclability, weight, life cycle assessment, shelf life

and other applicable information are to be reported via IMDS. Minth Americas IMDS ID

number is 7700. The End-of-Life Vehicle (ELV) Directive minimizes environmental

impact. The use of lead, mercury, cadmium, and hexavalent chromium are prohibited

in vehicles and their components.

All suppliers must provide a copy of the accepted ‘Recipient Data’ from the

Minth IMDS Site 1698.

4.4.2 OSHA Labeling

Chemicals must be labeled per the US standard for Safety Data Sheets (SDS) and Occupational Safety & Health Administration’s (OSHA) Globally Harmonized System of Classification and Labeling of Chemicals (GHS).

4.4.3 REACH Registration

The Registration, Evaluation, Authorization and Restriction of Chemicals

(REACH) requires all companies manufacturing or importing chemical substances into

the European Union in quantities of one ton or more per year to register these

substances with the European Chemicals Agency (ECHA). Suppliers and their supply

chain must comply with all applicable REACH requirements that affect products

supplied to Minth.

4.4.4 RoHS Compliance

The Restriction of Hazardous Substances Directive 2002/95/EC (RoHS) directive restricts the use of six hazardous materials in the manufacturing of various types of electronic and electrical equipment:

• Lead (Pb)

• Mercury (Hg)

• Cadmium (Cd)

• Hexavalent chromium (Cr6+)

• Polybrominated biphenyls (PBB)

• Polybrominated diphenyl ether (PBDE)

Suppliers and their supply chain are required to provide evidence of RoHS

compliance.

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4.4.5 Conflict Materials Reporting

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

(Dodd-Frank Act) requires manufacturers to disclose whether the products they

manufacture contain products that directly or indirectly finance or benefit armed

groups in the Democratic Republic of Congo or specified adjoining countries. The

Conflict Minerals currently covered are:

• Columbite-Tantalite (Coltan)

• Tantalum

• Cassiterite

• Tin

• Wolframite

• Tungsten

• Gold

Suppliers and their supply chain are required to provide evidence of Dodd-Frank

Act reporting.

4.5 Customer Specific Requirements Suppliers must know and practice all applicable OEMs’ customer specific requirements.

Suppliers will be notified of program and product OEM standards, specifications and

requirements on either the Minth purchase order or product print. CSRs must be identified on

their control plans and PFMEA.

4.6 Contract Review All suppliers will execute a robust contract review process of each Minth purchase order

and any associated requirements. A purchase order is often used to flow down requirements

to suppliers. These may include quality, environmental, OEM Customer and Government

Agency requirements. The ability to comply with these specific requirements must be

determined.

4.7 Contingency Plan Suppliers will develop a contingency plan for potential catastrophes which may disrupt

product flow to Minth and, if any interruption occurs, notify Minth in writing at the earliest

opportunity. In an actual disaster, suppliers will provide Minth access to both Minth’s and its

customer consigned tooling or assets without limits or restriction.

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If an extended shutdown occurs, an Extended Shutdown Start-Up Audit form (ESSA) must be submitted. All questions answered “NO” require an action plan implemented before shut down occurs.

4.8 Supplier Risk Assessment Minth monitors and manages selected suppliers from new product release through the

start of production. New product/process launch readiness measures are implemented to

ensure that suppliers are able to produce in accordance with all requirements of the Purchase

Order and customer requirements. Minth Supplier Quality and Program Management will

conduct a Risk Assessment at the start of a program to determine those suppliers whose

products or processes may be identified as “High Risk”. All suppliers must review their supply

chain for “high risk” sources and provide a contingency plan with potential alternative

sources.

4.9 Manufacturing Feasibility Prior to PPAP, all suppliers will verify their production process meets program volumes

and quality requirements by performing a Run @ Rate using OEM documents. The supplier’s

process must be able to produce 115% of the quoted volume using production tools and

equipment and within the actual manufacturing site and process for 4 hours of uninterrupted

production with no non-conformances.

Completed Run @ Rate documents must be submitted with the PPAP. Suppliers are required to assure that Run @ Rate is conducted for all sub-suppliers and provide supporting documentation to Minth upon request.

4.10 Special Characteristics In addition to using GD&T measurement methods based on Fundamentals of Geometric

Dimensioning & Tolerancing - ASME Y14.5M-1994, “reaffirmed 2004” for all inspections,

suppliers will implement process

controls for special characteristics as

designated on Minth’s customer

specific drawings. Stability, safety,

government regulation, fit, function

and performance characteristics will

be identified in the supplier’s control

plan.

Process capability can be

conducted with both variable and attribute data. The minimum acceptable sample size for

variable data is 100 pieces, and for attribute, 300 pieces.

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4.10.1 Initial Process Study Capability Index (Ppk, Cpk)

Indexes for initial process study capabilities must be:

• >= 1.67 for Key Characteristics

• >= 1.33 minimum for Key Characteristics at PPAP

• >= 2.00 for Safety/Regulatory Characteristics

4.10.2 Long Term Process Capability Index (Cpk)

Indexes for long term process study capabilities must be:

• >= 1.33 for Key Characteristics

• >= 1.67 for Safety/Regulatory Characteristics

Processes must be in statistical control and quality characteristics must be normally

distributed.

When Ppk and Cpk are below the capability requirements, corrective actions and

containment must be implemented to ensure defective material does not escape.

Containment will continue until capability is achieved.

Minth will evaluate the capability of all significant characteristics (SC) and critical

characteristics (CC) and the validity of the studies. Capability reports must include a

histogram, control charts and normality test. Please refer to the latest edition of AIAG

Statistical Process Control (SPC) manual. Any exceptions to the above capability requirements

will be handled on a case by case basis and must be approved by Minth.

4.11 External Labs Certification External labs used for gage certification and validation testing must be certified to

ISO/IEC 17025.

4.12 Minth Property & Tools All tools, manufacturing, test or inspection equipment belonging to Minth or Minth

customers, will be permanently marked to clearly show that they are property of Minth or the

customer. No lean or bailment may be placed against any tool or asset permanently marked

as property of Minth. These tools will only be used for Minth products. Visit

http://www.MinthAmericas.com for information on Tooling/Asset identification and Tagging

requirements.

http://www.minthamericas.com/





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4.13 Supplier APQP Checklist An APQP checklist will be given to each

supplier and must be filled out and returned with the PPAP package.

4.14 Production Part Approval Process

(PPAP) PPAPs must comply with the AIAG

Production Part Approval Process (PPAP)

manual. A level 3 PPAP is required unless

otherwise agreed upon by Minth. All tool

cavities must be permanently numbered. A six-piece dimensional layout for each cavity, 300

piece PPAP sample and a 30-piece capability study are required. Runs are required.

Initial PPAPs are submitted to a Minth corporate supplier quality engineer; all other PPAPs are sent to the receiving site’s Quality department. All PPAP documents must be maintained at the supplier location for ten years from the date of PPAP approval.

5 LAUNCH REQUIREMENTS AND SUPPORT

Any launched product that contains special record retention requirements must have

additional inspection and certification prior to shipping to Minth. Certification for defect-free

product lasts for 90 days or six shipments, whichever takes the longest period of time.

Suppliers may be required to provide representation at Minth facilities during the launch

process. The supplier’s launch support representative(s) must be knowledgeable, capable and

empowered to make decisions. Coverage must be provided for all shifts. Suppliers will be

selected based on past quality performance and complexity, safety or criticality of the product.

6 PRODUCTION REQUIREMENTS AND SUPPORT

Suppliers are expected to meet or exceed PPAP approved processes and products while in

production.

6.1 Location Access Minth and Minth customer representatives must be allowed reasonable access to a

supplier’s premises in order to, but not limited to:

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• Conduct audits

• Confirm product or services requirements conformity

• Substantiate supplier production capacity

• Verify corrective actions

6.2 Continuous Improvement Suppliers must develop and implement plans which improve Minth launches, value

enhancements, cost competitiveness and quality targets. Suppliers must discuss their intent to

achieve strategic status including a plan to grow with Minth. Minth recommends suppliers use

the fundamentals outlined in IATF 16949 / ISO 9001:2015 or VDA 6.3 as a platform for

organizing continuous improvement plans.

6.3 Capacity Improvements As part of the suppliers’ continuous improvement system, Minth expects suppliers to

submit annual evidence of process capability improvements to the attention of the Quality Manager at the receiving Minth facility.

6.4 Cost Reduction Suppliers are to remain market competitiveness and actively seek ways to reduce both

internal and external costs. Suppliers must support Minth in any effort to meet Minth’s

customer cost reduction requirements. Minth reserves the right to bid products and services to

confirm market price and award work to the successful bidder. Suppliers are required to

provide Minth with 120 days’ notice of a price increase.

6.5 Supplier Quality Management System (QMS) Development QMS development comes with the expectation of immediate and long-term cultural

change. Despite the significant commitment needed to implement and maintain a QMS, the

long-term benefits to an organization make such a system a worthwhile endeavor and an

essential element in ensuring the organization’s long-term viability.

Minth is dedicated to help our QMS supply base development by verifying certification

to ISO 9001:2015 and to comply to IATF 16949 with the goal that each supplier will become

certified to ISO/TS 16949, and, if applicable, VDA 6.3. For details regarding the Minth supplier

QMS development, see the Minth Supplier QMS Development Manual.

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6.6 Sub-Supplier Development With the increasing demands of Minth customers for

higher quality at a lower cost, the entire supply chain is

responsible for improving quality and lowering cost. By

developing and improving sub-suppliers, suppliers can obtain

substantial savings to themselves and Minth. Suppliers must

work with their supply base to ensure that products meet

customer requirements.

6.7 Annual Layouts Annual Layouts are required to verify continuing

conformance on all parts and components. If Minth is

required to submit a PPAP to a customer, all supplier PPAP

documentation must be no more than one-year-old.

PMCRRIMDS data must be updated per IMDS and customer requirements. Each Minth plant

will publish an annual PPAP schedule.

6.8 Product, Process Changes, Tooling, Location and Other Changes Advance written approval from Minth is required for all changes to a supplier’s product,

process, tooling and location utilizing the appropriate OEM’s process and forms. This includes direct-ship suppliers. Copies of these forms are available upon request to the Minth Quality Manager. Samples and PPAP may be required for review to evaluate potential impact on Minth’s or Minth’s customers’ manufacturing processes.

The Tool Move Plan must include the requirements of a production bank to ensure

Minth’s production and service requirements are not affected. Additionally, all shared tooling

must be called out and identified in the Tool Move Plan. PPAP submission (Level 3) and

approval from Minth is required prior to the shipment of production material from the new

location. An Exit PPAP from the prior facility is also required.

Suppliers are required to submit written notification to Minth for the following reasons:

• Changes in a Supplier’s “Remit to” information

• Updated Third Party Quality Certification

• Changes in ownership of the company

• Use of Third Party Containment

• Changes to 24 Hours key personnel, including contact information

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6.9 Warranty Responsibility for Suppliers Minth will require all suppliers to participate in warranty responsibility for their

materials, components, assemblies and services that could impact Minth’s customers.

Supplier responsibility will include costs for engineering follow-up, warranty root cause

analysis, corrective action, containment and repair costs for warranty chargeback or any other

reasonable costs that cause Minth to incur warranty costs.

7 NON-CONFORMING MATERIAL CONTROL

Minth’s supplier quality tracking system for reporting and resolving supplier quality, delivery, customer satisfaction and warranty issues is a system that provides a standardized method of issuing a supplier Material Reject Report (MRR).

7.1 MRR Responses Suppliers must respond to MRRs by emailing completed correction action forms to the

issuing quality representative.

In response to a MRR, a supplier must:

• Give an initial response within 24 hours

• Provide a RMA number within 48 hours

• Determine a root cause analysis within 14 business days

• Submit a completed 8D within 30 days

• Maintain and continuously improve performance

7.2 Cost Recovery Policy Suppliers are liable for all costs incurred by Minth because of supplier non-conforming

material. Charges to suppliers are based on non-conforming material impact to Minth and

OEMs. Each MRR has an administrative charge of $250.00 minimum and $500.00 for repeat

issues. When a MRR involves coils of Stainless Steel Grade 436 or 435, the $250 MRR charge is

for each non-conforming coil.

Other charge back rates are as follows:

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Charge back type Rate Per

Production Line disruption at Minth $ 1,800.00 Hour

Production Line disruption at OEM customers Actual Occurrence

Inbound Freight Charges Up to 5% above the

actual freight cost

Occurrence

Premium Inbound Freight (including Air Charters) as a result of quality issues, behind schedule, equipment failure, lack of spare parts, natural

disaster, supply chain breakdown, etc.

Actual

Occurrence

NCT OEM Customer Charge Actual Occurrence

Mileage $ 0.56 Mile

Accommodations Actual Occurrence

Outside Lab Testing Actual Occurrence

Collateral Damages (when non-supplier parts get damaged during rebuild due to supplier non-

conformance)

Actual

Occurrence

Rework and Sorting labor rate during standard

working hours

$25

Hour

Rework and Sorting labor rate requiring overtime $40 Hour

Unauthorized tooling change/move violation $1000 Month

Parts shipped without approved PPAP $2500 Month

7.3 Corrective Action Requests (CAR) The 8D format is required for a corrective action request. If an 8D is not submitted in 8

days, a $250 administrative fee may be charged. 8Ds may be rejected if it does not address

the root cause, have effective verification methods or provide a permanent corrective action.

7.4 Supplier Incoming Quality Escalation (SIQE) Minth utilizes a four step Supplier Incoming Quality Escalation (SIQE) process to resolve

supplier performance issues (ex: quality, delivery, customer satisfaction, etc.). Minth’s goal is

to resolve all supplier performance issues during a Non-Conformance Communication (NCC).

7.4.1 Non-Conformance Communication (NCC)

A Non-Conformance Communication (NCC) occurs when a Material Rejection

Report - MRR (in PLEX) is issued after a Minth receiving site identifies material as not

conforming to quality requirements and/or delivery specifications. Once a MRR is

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issued, suppliers are expected to comply with requirements as identified above and by

the MRR. If the issue has significant impact to Minth or Minth’s customer or if the

supplier is not being responsive to the MRR, immediate escalation to a higher step will

occur.

7.4.2 Supplier Performance Review (SPR)

A Supplier Performance Review (SPR) is a Minth plant quality led process that

addresses the supplier performance issue(s) not resolved in NCC. The supplier Plant

Manager involved in the product and performance issue is required to be the supplier’s

SPR spokesperson. The Plant Manager must address all unfinished MRR requirements.

7.4.3 Regional Management Review (RMR)

A Regional Management Review (RMR) is a process led by the respective Minth

Regional Corporate Supplier Quality Engineer which addresses supplier performance

issue(s) not resolved in either NCC or SPR. A representative from the supplier’s

corporate quality function (or equivalent) is required to be the supplier’s RMR

spokesperson. The RMR spokesperson must address all unfinished MRR requirements.

7.4.4 Corporate Director Review (CDR)

A Corporate Director Review (CDR) is a process led by the Minth Director of

Supplier Quality. The CDR addresses performance issue(s) not resolved in any of the

previous SIQE Steps. The supplier’s CEO (or equivalent) is required to be the supplier’s

CDR spokesperson. The CEO must address all unfinished MRR requirements.

7.5 Material Rejection Report requirements While in the CDR step, the supplier may be prohibited from bidding on new business

and/or may be in jeopardy of losing current business. (Note: New Business Hold can occur at any point during the SIQE process).

Suppliers who do not show improvements within a timeframe as defined by the Minth

Senior Management personnel are automatically placed on a New Business Hold (NBH).

Suppliers will be formally notified by Minth when they are placed on, or removed from, a NBH. Suppliers are required to notify their Registrar within 5 working days of being placed on a NBH.

For ongoing supplier performance issues, for gross negligence in a supplier’s quality system effectiveness or at any time during the SIQE process, Minth may request business be pulled or initiate a Controlled Shipping Status.

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7.6 Controlled Shipping Status Minth issues a MRR and written documentation to notify a supplier of Controlled

Shipping Status initiation, which occurs when a Minth facility detects product failures or a

Minth audit finds major discrepancies. A confirmation is required within 24 hours.

7.6.1 Controlled Shipping – Level I (CSI)

CSI requires the supplier to implement inspection and certification before

shipping product to contain a specific failure. Containment actions must verify that

requirements are met and approved by Minth and show understanding of

nonconformance.

All containment actions must:

• Provide proper inspection layout, instructions, space and tooling

• Establish a containment process at their location

• Provide containment activities at customer facilities

• Certify product using a brightly colored sheet of paper

• Perform corrective actions using the 8D process

• Report results to Minth on a daily basis

The exit criteria are based on containment and 8D results and must be agreed

upon by Minth. Minth will inform the supplier in writing of release from CSI.

7.6.2 Controlled Shipping – Level II (CSII)

CSII is initiated if the supplier fails CSI or Launch containment, there are

safety/FMVSS related issues or there is a risk in the field. CSII requires an independent

third party to inspect and certify products in an area separate from the supplier’s

normal production process and before shipment to Minth. All CSI requirements apply.

The supplier must:

• Contact a third party inspection source

• Issue a purchase order within 24 hours of CSII notification to the third

party inspection source and forward a copy to Minth

• Submit corrective action plans to their IATF 16949 or VDA 6.3 registrar

for review and authorize their IATF 16949 or VDA 6.3 registrar to submit

the review findings to Minth

• The exit criteria are based on containment and 8D results and must be

agreed on by Minth. Minth will inform the supplier in writing of release

from CSII.

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Failure to meet exit criteria for CSII or to achieve a clean point may result in a

New Business Hold (NBH) status and the addition to the supplier’s facility of a Minth

Quality Engineer at the supplier’s expense.

7.6.3 Scrap Allowance

Suppliers will not be allowed a scrap allowance unless negotiated and agreed

upon by both Minth and Supplier. If supplier is over the agreed upon scrap allowance,

Minth will follow the MRR process for cost recovery.

8 SUPPLIER PERFORMANCE AND MONITORING

8.1 Supplier Quality Rating Supplier Quality Rating is given on a monthly basis based on the performance in the following

categories: PPM (Parts per Million), percentage of on-time delivery, number of MRRs and number of

expedited shipments.

8.1.1 PPM PPM is calculated by dividing the number of supplier returned parts by total supplier

parts received multiplied by one million. The monthly PPM score is calculated as follows:

Paint or Stainless Steel Suppliers’ PPM Monthly Score Calculation

< 1500 PPM 45%

1501 to 2000 PPM 33.75%

2001 to 2250 PPM 22.50%

2251 to 2500 PPM 11.25%

> 2501 PPM 0%

All Other Suppliers’ PPM Monthly Score Calculation

< 500 PPM 45%

501 to 600 PPM 33.75%

601 to 700 PPM 22.50%

701 to 800 PPM 11.25%

> 801 PPM 0%

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8.1.2 On-Time Delivery On-Time Delivery percentage is calculated by the number of on-time supplier shipments

divided by total of supplier shipments received multiplied by 100. The monthly On-Time Delivery score is calculated as follows:

On-Time Delivery Monthly Score Calculation

89.5% to 100% 35%

79.5% to 89.4% 23.34%

69.5% to 79.4% 11.67%

< 69.5% 0%

8.1.3 MRRs

The monthly MRR score is calculated as follows:

Monthly MRRs Score Calculation

0 MRRs 15%

1 MRR 10%

2 MRRs 5%

3 MRRs or more 0%

8.1.4 Expedited Shipments

The monthly Expedited Shipments score is calculated as follows:

Monthly Expedited Shipments Score Calculation

0 Shipments 5%

1 Shipment 3.34%

2 Shipments 1.67%

3 Shipments or more 0%

8.2 Introduction to Weighted Scores The practice of weighting scores emphasizes aspects, inputs or criteria of a set of data to affect

the final result, giving some criteria of the data more weight in the outcome. Without weighting a score,

each criterion in the data contributes equally to the final result (normal averaging process). It is as if

extra weights are added to a pair of scales to favor one side over the other side.

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8.2.1 Weighted Supplier Rating The supplier’s monthly quality performance rating (Yield Score) is calculated as a

maximum score of 45% PPM rating (0-PPM 45% max.) 35% maximum for On-Time Delivery. 15%

for no MRR’s issued. 5% total for no expedited shipments. Total possible score – 100%

8.2.2 Missing Supplier Criteria If the supplier did not deliver any product in a month’s time, no monthly supplier rating

will be given.

8.3 Supplier Tiers and Explanations A rolling 3 months’ score of monthly supplier ratings will be used to categorize suppliers into

three different tiers.

Supplier Tiers

79.5% to 100% Preferred Supplier

69.5% to 79.4% Low Performance Supplier

< 69.5% Troubled Supplier

8.3.1 Preferred Supplier A supplier whose 3-month consecutive score falls into the category of “Minth Group

Preferred Supplier” is a supplier in alignment of Minth’s expectations for pricing, quality and

delivery and will receive the highest consideration for business awards.

8.3.2 Low Performance Supplier A supplier whose 3-month consecutive score falls into the category of “Low

Performance Supplier” is a supplier unaligned with Minth’s expectations for pricing, quality and

delivery.

A supplier in this category will be requested to submit an Improvement Action Plan to

Minth Purchasing. This plan must list detailed goals of how the supplier will improve their PPM

and delivery ratings and the overall Supplier Quality Rating in order to be returned to the

Preferred Supplier category.

8.3.3 Troubled Supplier Suppliers that have caused disruptions at Minth’s customers, are on customer notified

special status related to quality or delivery issues or whose 3-month rolling Supplier Rating falls

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below 69.5% will be categorized as “Troubled Supplier.” Troubled Suppliers will submit an

Improvement Action Plan. This plan must list detailed goals of how the supplier will improve

their PPM and delivery ratings and the overall Supplier Rating in order to be returned into the

Preferred Supplier category. A supplier whose score continues to be in the Troubled Supplier category after the

completion of the Improvement Action Plan may not be awarded new business and/or have

their current business pulled.

Supplier Tier Business Awards

Preferred 8D

No New Business*

Preferred X

Low Performance X

Troubled X X

*Minth reserves the right to continue business, award new

business or pull business from these and all suppliers.

8.3.4 Second Party Audits Minth shall include a second party audit process in our supplier management

approach. This type of “Sub-Tiered” supplier review can be performed by Minth

personnel or a contracted organization.

Second-party audits may be used for the following:

Supplier Risk assessment, supplier performance monitoring, supplier QMS

development, process/product audits.

Criteria for a Second Party Audit: The 2nd party audit will be based on the suppliers

“over-all” monthly performance as well as any Customer Specific Requirements.

Determining the need for a second-party audit will include; the Suppliers Over-all

monthly performance determines the need for either a Corrective Action Response

(8D), action plan (Plan, Do, Check, Act) and /or an on-site visit. The on-site audit will

include document reviews and control plan walk-thru.

A sub-supplier determined to need a second party audit or corrective action

response is based on a total performance score falling below < 79% for three

consecutive months (Low Performing Supplier)

Customer Specific Requirements – Follow IATF 16949-2016 clause 8.4.2.4.1

USA OEM’s: Annual second party audit of specific suppliers based on performance

rating and/or prior visits for POOR PERFOMANCE.

Sub-Tier Suppliers must be IATF-16949 2016 or ISO 9001-2015 certified (at a

minimum) and 3rd party audited at least annually.

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A documented supplier selection process for sub-tiered sources is required.

Supplier selection must include an “on-site” process audit and if selected, a

production Run at Rate. Consideration must be given to the Sub-suppliers,

supply chain management methods and selection process.

o An approved supplier list must be maintained.

An annual financial assessment of the supply chain is in conjunction with an

annual audit program over a three-year calendar period.

o The second-party (Minth) shall audit all sub-supplier QMS processes

of each three-year calendar period per IATF – 9.2.2.2

Encourage the application of CQI-19 guidelines with sub-tiered suppliers

o When applicable: CQI assessments for specific processes is required.

Examples: Heat treat, plating, coating, welding, plastic molding…Etc.

European / Other OEM’s – Suppliers are required to comply with IATF 16949:2016 elements

Suppliers are asked to nominate a Product Safely Representative (PSB)

Suppliers must be VDA 6.3 Process Audit approved prior to addition to any approved

supplier list

o Sub-Tiered Suppliers are required and subject to a second-party re-

qualification at least every three years. This can be completed by either

Minth representatives or a third party. Follow VDA “Robust Production

Processes” (5.3.4)

Sub-supplier Re-qualification must be carried out at least annually according to IATF

16949:2016, element (8.6.2) “layout inspection and functional verification”

All supplied parts shall be subject to a regular and planned re-qualification according

to IATF-9.1.1.1.

o The organization shall perform process studies to verify process capability

meet agreed upon Cpk / Ppk with both Minth and our Customers.

8.3.4.1 Escalation Plan for Poor Performing Suppliers

Based on Risk assessment, including product safety/regulatory requirements,

Supplier performance (Minth Supplier Scorecard < 79%) overall score or QMS

certification level, Minth SQM shall determine the need for escalation using the

following:

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1) Type of audit-internal document review (Gap Analysis or Corrective action

response/MRR).

2) External-second party audit will include the introduction of the PDCA document

format as an additional supplement to the MRR package.

Revision History

Revision 1; 4/1/2015: Rewrote entire manual for ease of reading and clarification Revision 2; 5/1/2015: Formatting changes Revision 3; 5/15/2015: Formatting changes Revision 4; 7/20/2015: Added reference to Fundamentals of Geometric Dimensioning & Tolerancing

- ASME Y14.5M-1994, “reaffirmed 2004” to section 4.10 Revision 5; 10/20/2015: Added Supplier

QMS Development (Section 6.5) Revision 6; 1/18/2016: Supplier Performance and Monitoring clarification Revision 7; 3/11/2016: Supplier Performance and Monitoring Overhaul Revision 8; 5/31/2016: PPAP requirements add-on Revision 9; 6/21/2016: Added VW Standards letter requirement (Section 2.6) Revision 10; 1/30/2017: Added reference to direct-ship suppliers to change control policy Revision 11; 3/9/2018: Supplier Performance and Monitoring Overhaul Revision 12; 3/9/2018: Getting access to the PLEX portal Revision 13; 3/12/2018: Revised Supplier Portal (Section 2.5), added additional criteria for charge back

type (section 7.2), added Appendix A, formatting changes Revision 14; 5/31/18: Adjusted supplier scorecard grading system (Section 8)

Revision 15; 8/23/18: Added clause 7.6.3 – Scrap Allowance

Revision 16; 6/10/19: Update Supplier Rating Calculation

Revision 17 ;8/9/19; Team Review, update Second party audit Revision 18: 2/26/2020: updated supplier scoring method (8.3)

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Appendix A - Plex Supplier Portal Account Application

Date: _______________________

Name: ____________________ Job Title: _______________________

Email: _____________________________

Phone: __________________________

Company Name: ______________________________________________

Company Address: _____________________________________________

DUNS Number: _______________________

Supplier for: (Circle one) PTI / Tawas City / MTI / MMX / MMC

Alternate Contact Name: _______________________

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Alternate Contact Email: _______________________

Alternate Contact Phone: _______________________

By submitting a request for a Plex Supplier Portal ID, you understand and will

abide by the following terms and conditions:

1. The use of Plex Supplier Portal is restricted to business-related activities

only.

2. Suppliers must ensure the confidentiality of end customer of Minth

proprietary products, product information and projects under development

and approved for production.

3. You have read and understood the Minth North America Ltd. Supplier

Manual, which can be located, along with other relevant documents, at

www.minthamericas.com.

4. Violation of these terms as well as those outlined in the Minth North

America Ltd. Supplier Manual may result in penalties, to be determined by

Minth Americas, on a case by case basis. ________________________ ________________________ ________________________

Applicant Signature Minth IT Minth Director of Purchasing



Documents

MINTH Americas LtdMint… · 1.2 VDA 6.3 If required by Minth Americas customers, suppliers must address all requirements of VDA 6 Process Audit-Part 3 in the form of a quality manual