CONFIDENTIAL

Tecnova India Pvt. Ltd. 2007-08

Vendor Qualification Process

-Guidelines-

PRIVATE/PROPRIETARY

• To define the process for the evaluation of potential new vendor’s capability to meet customer’s requirements/expectations.

• To identify areas of synergies as well as any non conforming areas.

• Based on the results of the above to select vendors, which can be considered for supplies to customers.

• To reduce quality and financial risks to partnership with the “wrong” vendor(s).

Objectives

PRIVATE/PROPRIETARY

Process Outline

Vendor Finalization

Large No. of candidates

1.1 Vendor Profiling 1.2 Quality Certification

2.1 Financial Status Review2.2 Systems Audit2.3 Quality and PPAP performance Review

3.3 Development Process Audit 3.4 Supply Chain Review3.5 Environmental Status

Reduced No. of

candidates

Small No. of candidates

Final candidates

1.First Filter

2.Second Filter3.Final Filter

Vendor Market Analysis

PRIVATE/PROPRIETARY

Process Flowchart – Phase I

2. Second Filter Process:

2.1 Financial Status Review 2.2 Project and Process review 2.3 Facility Audit 2.4 Commodity Specific requirements, if applicable

Supplier market analysis

1. First Filter Process:1.1 Prepare and screen Vendor Profile1.2 Investigate Q-Certification Status and Plans

Review of the First Filter Results

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yTemplates/Tools:1.1 Supplier Fact Profile1.2 Quality Accreditation checklist

Templates/Tools:2.1 Financial review format2.2 Process Checklist2.3 Customer review2.4 Plan review

Stop if not acceptable !

Team decision !

First Filter

Second Filter

Responsible

T

T / C

T

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Review of the Second Filter Results Team decision !

T – TecnovaC – Customer

Stop if not acceptable !

T / C

PRIVATE/PROPRIETARY

Post Selection Reviews

Review of Final Filter Results

Customer and Tecnova shall review the information in detail to

finalize supplier(s)

Project review and supplier continuation status

Stop if not acceptable !

3. Final Filter Process:

3.1 Development Process Audit 3.4 Supply Chain Review 3.5 Environmental Status

Templates/Tools:3.1 Comprehensive team review

Vendor finalization and kick-off of the project including signing of

the MoU

Process Flowchart – Phase II

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Team decision ! To approve a vendor every team member must agree!

Team decision !

Final Filter

Responsible

T / C

T / C

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Pilot Project review and analysis on deliverables including qualityT / C

PRIVATE/PROPRIETARY

Vendor Performance Review Process

• Green – Maintain / Increase business

• Yellow – Improvement Plan to be disc

• Red – Eliminate / Phase out supplier

Retrace back to MoU stage

Stop if not acceptable !

Templates/Tools:3.1 Project Tracking schedule

Contingency Plan

Fall back plan to be put in place in oder to ensure minimum time delay if supplier

awarded Red Flag

Project Management – Phase III

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Team decision !

PHASE II

Responsible

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T / C

T / C

T / C

Team decision !

Project Management:

• Sample Development

• Project Based

• Reviews

PRIVATE/PROPRIETARY

Phase I – Vendor Market Analysis

• Vendor Market Analysis (Product specific)

• Vendor Profiling, Identification and short-

listing in line with pre-specified client

requirements and existing Tecnova policies

PRIVATE/PROPRIETARY

Phase II – Vendor Audit

• Inspect the Manufacturing Facility of the suppliers

• Evaluate the Quality Management system to assess the

Quality level of the vendor

• Evaluate the complete manufacturing capabilities of the

supplier w.r.t machineries, technical knowledge of the key

people in the company, components being manufactured

presently, Quality department w.r.t tools & gauges.

• Evaluate the tool design and manufacturing facility of the

supplier

PRIVATE/PROPRIETARY

…….Contd

• Check on the spare capacity availability with

the supplier

• Evaluate the export experience of the supplier

• Check on the certification level of the supplier

(ISO9001,TS16949, ISO 14001, OHSAS)

• Negotiate willingness of the supplier to take

the liability for failing to meet the agreed quality

and delivery commitment

PRIVATE/PROPRIETARY

Phase III – Vendor Development• Sending RFQs, obtaining and submission of quotes to clients

• Organizing visit for Clients officials to visit the short-listed vendors

• Negotiations on behalf of customer (local language expertise)

• Develop vendor for smooth product development as per client’s requirements

• Sample Preparation:

• Pre-dispatch inspection for the samples

• Troubleshooting and doubt clarification for facilitation of sample approval.

• Regular Production

• Proper co-ordination during mass-production to ensure no slip-ups and on time deliveries

• Periodic check to audit suppliers QMS

• Evaluate / Audit Tier 1 Suppliers of main Vendor

CONFIDENTIAL

THANK YOU