Vibracoustic CVAS-Standard VCST C01 01 001 Files... · Vibracoustic CVAS-Standard VCST C01 01 001 Rev.No 0 . Page 2 of 16 “Quality Assurance Measures for Procurement of Purchased

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Vibracoustic CVAS-Standard VCST C01 01 001 Rev.No

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“Quality Assurance Measures for Procurement of

Purchased Parts”

For information only ! This print-out is no subject to change service !

TABLE OF CONTENT

0. INTRODUCTION ..................................................................................................................................................... 1

1. PURPOSE ............................................................................................................................................................... 3

2. SCOPE .................................................................................................................................................................... 3

3. TERMS/DEFINITIONS/ABBREVIATIONS ............................................................................................................. 3

4. TASK DESCRIPTION ............................................................................................................................................. 6

4.1 SQMS Supplier Quality Management System .................................................................................................. 6

4.2 QM-system ........................................................................................................................................................... 7

4.3 Contract Review .................................................................................................................................................. 7

4.4 Control of Documents ......................................................................................................................................... 7

4.5 Control of materials and packaging provided by VC CVAS ............................................................................ 7

4.6 Environmental Protection ................................................................................................................................... 7

4.7 Audits .................................................................................................................................................................... 7

4.8 Staff ....................................................................................................................................................................... 8

4.9 Test equipment .................................................................................................................................................... 8

4.10 Qualification of sub-contractors ...................................................................................................................... 8

4.11 Safety data sheets/ Processing instructions .................................................................................................. 8

4.12 Advanced Product Quality Planning (APQP) .................................................................................................. 8

4.13 Pre-Series / Production Trial .......................................................................................................................... 10

4.14 Production Part Approval Process (PPAP) ................................................................................................... 11

4.15 Early Production Containment (EPC) ............................................................................................................ 13

5. NOTES AND REMARKS ...................................................................................................................................... 15

6. VALID SUPPORTING DOCUMENTS ................................................................................................................... 16

7. DOCUMENTATION............................................................................................................................................... 16

8. REVISION SERVICE ............................................................................................................................................. 16

9. DISTRIBUTION ..................................................................................................................................................... 16

10. APPENDIX .......................................................................................................................................................... 16

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1. PURPOSE In this procedure specification the Procurement and Quality Assurance of purchased parts of production material for all VC CVAS companies is specified. Thereby we want to ensure that

New products are realized on schedule and without any quality problems

Quality problems are identified and robust solutions implemented prior to series production

Quality capability of processes and flows are evidenced at series approval and during series production

2. SCOPE This VCST is valid for all procurement processes of production material for all VC CVAS companies with partnership production and expands determinations of purchasing contracts and purchasing conditions. Exceptions to this procedure instruction must be agreed in writing. Standard products (e.g. catalogue goods, standard parts, standard colours, lubricating materials etc.) are excluded.

3. TERMS / DEFINITIONS / ABBREVIATIONS

3.1 Definitions

SQMS The Supplier Quality Management System describes the business process of supplier selection, supplier evaluation, supplier development as well as actions for the protection of new projects and series parts.

Initial Samples Initial samples are parts/products which are produced with the planned equipment, procedures, manufacturing staff, materials and semi-finished products produced exclusively for series production. They serve as acceptance of production parts.

FMEA

Failure Mode and Effects Analysis This method is described in ISO TS 16949 AIAG reference manual. OEM specific FMEA-requirements (i.e. Ford – FMEA) have to be assumed by supplier.

Supplier The term “supplier” basically refers to production facilities in this VCST, not to trade organizations. Therefore, an “Approval of Suppliers” always applies correspondingly to the audited production site only, but not to the general trade organization.

Sub-Supplier The sub-supplier delivers to the supplier either products or labor which have an effect to the products of VC CVAS. The supplier guarantees the sub-suppliers Quality

Sub- Supplier

Supplier VC CVAS Customer

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Production trials:

Production trials serve as verification of processes and products. Production trial products have to be manufactured with operating supplies used for series production. If manufacturing is not possible under series conditions, the status is to be communicated and its effect on series production has to be assessed.

Preliminary Process Capability:

Preliminary process capability examinations are short term inspections in order to maintain early information in respect to efficiency of a new or amended process. (see point 4.4).

Specific Characteristics

Significant and critical characteristics must be clearly designated in the drawings. Basically there is a distinction of - Significant characteristic (Fit & function) = SC - Critical characteristics = CC*

* safety relevant!

Significant characteristics (SC) have to be signed with a SC rectangle: Critical characteristics (CC) have to be signed with a CC rectangle:

For specific characteristics preliminary process capability has to be determined by the supplier when manufacturing first samples. In series production this has to be monitored by SPC. The above mentioned identifications for specific characteristics will be used in general for drawings for supplied parts. Only in case of an explicit request of a customer other, customer specific identifications for special characteristics will be used. Safety critical characteristics comprise in case of deviations a risk for life and limb. Therefore they must be 100% tested. The tests should be defined in consultation with VC CVAS.

Production Part Approval Process (PPAP) The procedure for inspection of production parts contains initial sampling of product features (Initial sample test report) and proof of a controlled production (Production control plan, evidence of process capability, FMEA etc.). OEM specific requirements (PPAP acc. AIAG resp. EMPB acc. VDA2) have to be assumed by supplier.

3.2 Abbreviations AIAG Automotive Industry Action Group APQP Advanced Product Quality Planning BA Business Area BUM Business Unit Manager CM Commodity Management CSR Customer Specific Requirements

SC

CC

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DV Design Verification EMPB ErstMusterPrüfBericht EPC Early Production Containment

IMDS International Material Data System IR Inspection Report ISIR Initial Sample Inspection Report MS Microsoft MSA Measurement System Analysis QMS Quality Management System QM-Site Quality Manager Site PPAP Production Part Approval Process Ppku Ppk(upper specification limit) Ppkl Ppk(lower specification limit) SDE Supplier Development Engineer SPC Statistical Process Control SOP Start of Production SQA Supplier Quality Assurance SQMS Supplier Quality Management System

VDA Verein der Deutschen Automobilindustrie

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4. TASK DESCRIPTION

4.2 SQMS Supplier Quality Management System

4.1 SQMS Supplier Quality Management System In order to select and develop our suppliers further as well as support them with new procedures appropriate to the specific requirements of the automotive industry the SQMS = Supplier Quality Management System has been defined. The SQMS is fundamentally divided into 5 phases: Phase 1 = Supplier assessment and approval of new suppliers Phase 2 = Supplier Industrialization and APQP – purchased parts Phase 3 = SQA - Serial production Phase 4 = Supplier Rating Phase 5 = Supplier Development The procedure specification in hand specifies exclusively the APQP - purchased parts and the phase series production.

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4.2 QM-system It is the suppliers duty as a requirement, to employ a certified QM-System appropriate to the regulatory standards ISO 9001. A continual further development of the QM-System is necessary for system elements TS 16949 specific to the automotive industry. These demands specific to the automotive industry on error avoidance and the procedure for inspection of production parts are to be fully implemented corresponding to the following specification for all VC CVAS products. The supplier should also incorporate any relevant Customer Specific Requirements into its QMS system that refer to the specific product or service.

4.3 Contract Review The supplier is committed, both at the quotation stage as well as in the order phase, to check documents placed at its disposal for completeness, correctness, freedom from contradiction, adherence to the required quality target and production achievability (ability to manufacture, adherence to target dates etc.). The supplier indicates to VC CVAS in writing where documents and facts are unclear or which appear incorrect. This also applies to measuring procedures and methods. When referring to other documents, the supplier has to provide those and take care that processing is done according to current versions.

Generally accessible guidelines/ standards (e.g. DIN, ISO, EN and ASTM-Norms) have to be provided for corresponding positions.

Guidelines/standards and documents of VC CVAS or its customers will be forwarded upon request to the relevant purchasing area.

Customer specific requirements (CSR)

4.4 Control of Documents The supplier has to produce, check and deliver on the current valid version. Documents from VC CVAS and its customers are to be treated as confidential. The forwarding to a third party is permissible only after consent in writing from the relevant purchasing department of VC CVAS. Documents are managed within the distribution. Archiving periods as per OEM´s customer specific requirements (CSR). For CSR´s refer to: www.iatfglobaloversight.org www.vda-qmc.de

4.5 Control of materials and packaging provided by VC CVAS The supplier must undertake a goods inward inspection on materials and packaging delivered to him for quantity, identification and visible damage. The consumption of delivered articles is to be recorded on the delivery documents and notified to the responsible purchasing/logistic department if required.

4.6 Environmental Protection The supplier has to ensure that all materials used in parts production correspond to the valid, legal requirements for restricted, poisonous and hazardous materials. In addition regulations for environmental protection have to be taken into account which relate to both the country of manufacture and the customer.

4.7 Audits The supplier must audit its QM-System at regular intervals for effectiveness and consequential usage of the requirements described here. VC CVAS is entitled to carry out – if necessary with the customers - audits at the supplier and at its sub-contractors – after appointments were made. The supplier has to support VC CVAS in carrying out the audit and to give particular insight into the required procedures, data and recordings for analysis of the Quality Management System, as well as, in doing so, not touching particularly upon the supplier’s interests of secrecy being justified.

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4.8 Staff The supplier has to demonstrate that all employees who work in the areas planning, production and inspection are qualified for the respective activity.

4.9 Test equipment The supplier must guarantee that suitable test equipment for carrying out the inspection is available and through a test medium surveillance system this equipment is maintained in perfect condition at any time. The suitability of inspection equipment, which is used for testing important characteristics, is to be verified with evidence of efficiency (AIAG MSA Manual or VDA Manual 5).

4.10 Qualification of sub-contractors VC CVAS may provide approved sub-suppliers. The supplier himself is responsible for selecting suitable sub-contractors. He must in any case evaluate the quality efficiency of his sub-contractors and adequately integrate it into the APQP process. The production parts approval procedure (PPAP) is to be fully applied at sub-suppliers. The supplier must ensure that his sub-contractors employ an appropriate QM-System (ISO 9001). In any case, the supplier in doing so is responsible for quality of the whole work performance of the sub-contractor.

4.11 Safety data sheets / Processing instructions Where applicable and without being solicited, the supplier has to forward complete and up-to-date safety data sheets and process instructions before supply of product.

4.12 Advanced Product Quality Planning (APQP) The supplier has to utilize measures and procedures which ensure that the object of the contract without any deviations in respect to quality, target dates or work volume are realized. It is recommended is to use the AIAG procedure. Project Schedule A complete time schedule is to be compiled for each project which regards to content, must at least take into consideration the following items.

Content: 1. Individual measures such as: – production equipment and production tool planning, – procurement of purchased ancillary items, – compilation of Process-FMEA, – compilation of a control plan for prototype, pre-series, series – manufacturing of initial parts, – manufacturing pre-series – test scheduling pre-series, series – Production parts approval process (PPAP).

2. Milestones such as: – progress of tooling and production equipment – production part release of sub-supplier ancillary parts – approval of control plan by VC CVAS, – completion design validation testing DV (prototypes) – completion process verification tests PV (Series) – date first off-tool-parts – completion Run@Rate – Production parts approval by VC CVAS, – Availability of max. production capability (SOP)

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3. Responsibilities Responsible persons have to be fixed by name and contact data (phone, mobile, email)

4. Start and end date of individual activities Project schedules should be structured corresponding to Appendix 1. Similarly other formats with the same content will be accepted (e.g. MS-Project, etc.). Project status report “Ancilliary parts”: Once a month without solicitation, the supplier has to forward a current project status report “Ancillary items” to the project manager VC CVAS* including tooling progress report by traffic-light evaluation.

*Name and Fax No. are stated in the status report for purchased items!

4.12.1 Control plan In cooperation with the SQA* of the Business Unit concerned (Production Unit), the required tests, test equipment, testing intervals, tested volume and form of the records are defined for pre-series and series production. *Name and Fax No. are stated in the status report for purchased items!

For functional critical parts the amount and frequency of testing defined in the control plan has to be agreed upon between the SQA, SDE, QM (site), the VC CVAS development and the supplier. A member of the technical as well as quality department of the supplier should participate. The Control plan has to reflect entire process chain of contracted part-no. including outsourced processes. The Control plan of the subcontractors should be provided upon request by VC CVAS. Control plan pre-series: Suppliers should utilize Early Production Containment Plan (EPC). Control plan - series: The control plan - series contains all tests and process controls from goods inwards inspection of ancillary parts from sub-contractors to the supply to VC CVAS as well as the scale of requalification tests. Revision of the control plan: The production control plan, which is approved by VC CVAS within the PPAP procedure, is binding for the entire life time of the product. Changes, which are relevant for method and scale of inspections, have to be released by VC CVAS prior to implementation. In case of a loss of quality or product risks and process risks not defined by the approval time, VC CVAS reserves the right to amend the QM schedule corresponding to needs.

Form and content of control plan: Content of control plans should be adopted according to the regulations of ISO/TS16949 latest revision, or AIAG.

4.12.2 Process Flow Chart A process flow chart has to be compiled for the whole manufacturing process. The process flow chart must be sent to VC CVAS as part of PPAP package. The process flow chart has to reflect entire process chain of contracted part-no, including outsourced processes.

Remark: The process number sequence has to be the same through all documents (Control plan, FMEA)

4.12.3 Process-FMEA

The failure mode and effects analysis has to be carried out before series production as a method of error avoidance. In order to be able - if needed - to carry out appropriate corrective actions with no considerable cost, the FMEA has to take place within the earliest possible time-frame. PFMEA has to reflect entire process chain of contracted part-no, including outsourced processes. Method and formal structure must be executed corresponding to VDA 4, Part 2. OEM specific FMEArequirements (i.e. AIAG FMEA manual, Ford – FMEA ranking system) have to be assumed by

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supplier. A prerequisite for a production parts release (initial samples approval) is the supplier’s confirmation that the required Process-FMEA has been carried out on the first sample test report. On request FMEA can be reviewed by VC CVAS.

4.13 Pre-Series / Production Trial A pre-series/production trial run should consist of at least 125 parts or one shift uninterrupted production. In doing so the pre-series run is to manufacture under series production conditions (staff, material, machine, tools etc.). Possible deviations from series production are to be given on the evaluation sheet “Pre-series ancillary items”. The evaluation sheet “Pre-series ancillary items” is to be forwarded to VC CVAS with the PPAP records. VC CVAS reserves the right to attend to the pre-series itself or to send an external auditor. This will be done within the scope of a process audit. Capability Studies pre-series (Ppk) Before series production the capability of important features has to be proved by means of a preseries / production trial run (see topic 5.13) for the employed methods, processes and materials. Dependent on the complexity and the risks connected with them, the recording of process capability can be carried out by the supplier, or in the presence of a specialist official from VC CVAS at the supplier’s premises. Proof of process capability throughout pre-series is an important prerequisite; without it is not possible to manufacture a durably defect-free product with an economically justifiable expenditure.

“Zero defects are only possible with controlled and quality-efficient processes.”

At least 125 parts have to be withdrawn over the entire pre-series production lot and continually tested. If the tools have more than one cavity, an equal distribution of all cavities must be assured. 125 samples = 25 subgroup of 5 parts. We recommend the following rule for sampling as preliminary study 5 parts, skip 5 parts, 5 parts, skip 5 parts, etc. If multi-cavities, we accept 125 samples for 1 feature if cav. # randomly shared. If capability is not OK, than we accept the split of the cavities and that supplier demonstrates capability of cavity per cavity. All distributions must be normal. Capability has to be proved per each cavity (multi cavity tooling). Records: Individual values have to be recorded and may be viewed by VC CVAS upon request. Sample “Test records”. Evaluation of process capability In order to fulfill the demand for a “Zero Defect Objective”, a preliminary process capability of Ppk >1,67 for significant characteristics is required as a matter of priority.

Recordings The preliminary examinations of process capability are part of the production parts inspection procedure as per AIAG – PPAP and VDA 2, and must be forwarded to VC CVAS as part of PPA package.

Process capability-series (Cpk)

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Since the preliminary process capability is only determined on one lot (pre-series/production trials), systematic influences between the individual lots (human, material, etc.) are not taken into consideration. Preliminary process capability gives only a statement to the current situation therefore process capability has to be constantly monitored and documented in running production. Some customers might request higher preliminary and long term process capabilities. Information about deviating capability requirements to the above mentioned standard requirements will be communicated during the Project.

4.14 Production Part Approval Process (PPAP) Through the production parts approval procedure (PPAP) it should be proved whether or not the product can be reliably manufactured within the defined properties. The approval process can be carried out in two steps: 1. Step The supplier produces the defined PPAP certificates and sends them to VC CVAS together with the first samples. 2. Step The production parts approval procedure (PPAP) is carried out at the supplier’s, in the presence of a member of VC CVAS staff or an external agent. Depending on product and project risk the Project team defines whether the release is done in one or two steps.

For critical or safety critical purchased parts (cc = critical characteristics) the 2 step approval is

mandatory.

If the one-step procedure is performed, the series release is given after receiving correct and complete PPAP reports and approving the dimensional and functional characteristics of the first samples. In case of an agreed two-step procedure supplier receives the approval after successful production trial at site (Step 2) and approved PPAP according to step 1. The production parts approval process (PPAP) must be carried out by the supplier in the following cases: - with new sampling (repeated sampling), - amendments to product design / material, - changes to production procedure, - transfers to other production locations, - use of new tools and cavities - use of new suppliers, - with an interruption to production longer than 12 months. VC CVAS is to be informed, in each and any of the given instances, before implementation of the change, and always with written agreement from VC CVAS. The range of the production parts approval procedure has to be agreed with the responsible SQA. Should a necessary repeat inspection for production parts be caused by the supplier, VC CVAS reserves the right to charge appropriate cost to that supplier.

4.14.1 Requirements for Series production Release The submission or evidencing of the following measures and results are required for release of production parts. There might be less requirements in case of re-PPAP defined by SQA/SDE:

Submission Result Provision

1. Part submission Warrant

(PSW/VDA EMPB) (All boxes checked; reason, signed)

Supplier

2. Limited Approval VC CVAS

3. Process Flow Chart Supplier

4. Process FMEA

(confirmation) Supplier

5. Control Plan Supplier

6. Early Production

Containment Plan (EPC) Supplier

7. ISO/TS Certificate Supplier

8. Design records (Ballooned

2D drawing – latest level) Supplier

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9. Dimensional Results (both

supplier and VC CVAS evaluation)

Supplier

10. IMDS Submission Supplier

11. Material Test Reports

including suppliers approval (PSW/EMPB cover sheet)

Supplier

12. Measurement system

Analysis MSA (Gauge R&R) Supplier

13. Inititial Process

Capability Studies for CC and SC characteritics (Pp/Ppk). Cp and Cpk results have to be forwarded latest 3 month after SOP)

Supplier

14. Product samples (1 per

cavity number, marked, with single measurements results, minimum 6 samples)

Supplier

15. Product test results

(Corrosion, torque, material setting, durability, …) as defined in drawing.

Supplier

16. Run at Rate (Assessment

sheet and capacity analysis sheet)

Supplier

17. Bulk sheet (tools),

Photographs of gages and assembly equipment

Supplier

18. Packaging instruction Supplier

19. Part History Supplier

20. Approved deviations

from agreed specifications Supplier

21. Successful processing,

assembly and end-use of product at VC CVAS

VC CVAS

22. Appearance Approval

Report (if applicable) Supplier

23. If part is designed by

supplier - DVP test matrix (incl. status of all test) - Design FMEA (sign-off)

Supplier

24. Others (e.g. Archiving

plan for safety parts, etc.) Supplier

25. Part Specific Emergency

Plan Supplier

Notes: to 1. In cases where the customer requires his own forms for supplier PPAPthe required forms have to be used. to 4. Test procedures/measuring devices must be included in the control plan. to 8. Measurement results must be assigned to the individual parts to 14. The testing of the function features is to be agreed between VC CVAS and the supplier (e.g. durability, corrosion testing etc.). PPAP documentation has to be sent to VC CVAS as a complete file in duplicate and together with the first samples. The delivery of initial samples with PPAP evidence must be delivered separately of the series delivery! The delivery must be clearly be labeled as initial sample. ATTENTION: INITIAL SAMPLES!

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Please, pass on to Supplier Quality Assurance! Not at any time first samples may be packed together with series parts.

4.14.2 Production Parts Approval No series parts may be supplied to VC CVAS before approval. Permission regarding deviations will be granted should series deliveries be needed for reasons of timing (see Item 5.15.11).

4.15 Series Production The supplier is committed to adhere to the underlying conditions of the production parts inspection procedure, such as - product design - material - sub-contractors - production methods and equipment - production location during series production.

Changes must be reported! Proposed changes must be notified in writing min. 3 month before implementation to VC CVAS and approved by VC CVAS. The responsible supplier quality manager (SQA of receiving plant) decides in which range the production parts approval procedure (PPAP) is to be employed.

4.15.1 Test records The supplier keeps test records corresponding to agreed control plan series production. These test recordings have to be assigned to individual production batches. Test records must be archived for at least 5 years. Test records of safety parts (A-Parts) must be kept for a period of 15 years after run off of the article. The supplier will be informed by VC CVAS about the character of the item. The recordings can be perused at any time by VC CVAS.

4.15.2 Early Production Containment (EPC) Suppliers must utilize the Early Production Containment Plan for all pre-production requirements and for the production ship quantity (default: 10 x daily production volumes) or duration specified by EPC guideline, or until the production control plan is validated, which ever occurs later. The specified production quantity or duration is to reflect the customer´s acceleration plan to full production rate. Suppliers must follow VC CVAS EPC guidelines.

4.15.3 Requalification Test In order to determine deviation in characteristics and specifications, which are not examined during current production, at least once per year a product and process requalification is to be performed. This requalification must include a full layout of the print and functional tests, described on the print with the exception of characteristics which were verified ongoing. For these characteristics an analysis capability and cpk-value out of the records from the last year has to be performed. It has to be defined in the production control plan including documentation of it. The test records are to be made available to VC CVAS if requested.

4.15.4 Zero Defect – continuous improvement process In order to minimize risks with quality and to avoid wastefulness (scrap, rework, test expenditure, etc.), the supplier makes assessments on a regular basis and introduces measures for continual improvement. In order to be able, on VC CVAS’s part, to evaluate the requirement and success of these measures, annual evaluation and rating of the supplier will be done by VC CVAS. Quality targets can be agreed with the supplier in individual instances. The Zero Defect Target is valid.

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4.15.5 Labeling / Tracability Suitable identification systems have to be applied. The test results of a part have to be traceable. The batch no. and production date have to be noted on the delivery note. During the production at the supplier a clear allocation of: – VC CVAS reference no. – Drawing index – batch (first in - first out) – test condition (checked, not checked) – quality (good, poor) must be available. Attention: Supplies may only be carried out in batches!

4.15.6 Identification of containers, delivery notes and transport orders The supplier is obliged to display each packaging (box, KLT) clearly identified with a correct material tag, details defined in VCST (VCST_LABELLING) Detailled requirements for Delivery notes and transport orders are also described in VCST (VCST_LABELLING) Label information rubber compounds: – Batch-no/ Lot-No. – Production date batch/ lot – Expiration date

4.15.7 Packaging Packaging of products in each individual case is to be agreed with VC CVAS and documented with the PPAP records.

4.15.8 Goods inwards inspection by VC CVAS It is known to the supplier that for reason of its quality assurance measures, for which the supplier exclusively bears responsibility, no further goods inwards inspections are carried out at VC CVAS. VC CVAS only implements an inspection for identification and transportation damage. An obligation by VC CVAS to further tests is particularly excluded. Therefore, VC CVAS accepts no obligation of supplied products from the supplier for prompt inspection and criticism.

4.15.9 Deviations Should parts at delivery or afterwards during production process be found faulty, then this can lead to the return of the whole delivery. As soon as the supplier is aware of this he must make sure that no further defective items are delivered. Stocks of finished parts have to be inspected or replaced with inspected material and immediately effective remedial actions initiated. The supplier obliges himself to inform VC CVAS immediately in the case of a delivery of faulty products having been carried out already (self complaint). For the ensuring of efficiency of supplies, VC CVAS reserves in case of a line stop the right to arrange directly inspection and rework, and to charge any expences incurred by VC CVAS to the supplier if the supplier fails to respond to VC CVAS within 1 hour. For each complaint the supplier will receive a notification (Inspection Report). Responses are always to be done according to the 8D-Process principles. The immediate measures taken must be notified to VC CVAS within 24 hours. The concluding report must follow 10 days after receipt of the inspection report (see OPI-01-7.4-0002). Extra time is possible when an evidence (e.g. defect sample part) is necessary for carrying out the root cause analysis but is not available. The risk analysis (FMEA), having the purpose of avoiding defects, is to be reviewed with respect to the concern checked.

4.15.10 Settlement of cost VC CVAS reserves the right to charge back verifiable complaint related cost from the supplier. To be referenced to LI C01 01 001.

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4.15.11 Permission for deviations For products which after completion of the respective tests do not fulfill agreed specifications the supplier can, in exceptional circumstances under details of type and cause of the deviation, as well as the quantity in question and the remedial action started by the supplier, apply for permission for deviations (special approval) before delivery. VC CVAS can - when the quality of the final product is not affected by this deviation grant such permission. Supply only takes place when VC CVAS has given permission in writing for a deviation. The permission for deviations is limited exclusively to the committed quantity or time period and does not apply as a quality concession for forthcoming supplies. The product has to be delivered separately and specially labeled!

4.15.12 Quality performance/escalation process The quality performance of a supplier will be evaluated in two steps. 1. Ongoing, based on - number of supplier concerns (complaint notifications) - ppm (rolling over a defined number of months) 2. Long term, based on – Severity of fault – Repeated fault – PPAP performance – Result of Process Audit – Customer focus in case of complaint – Professional, in time failure analysis and implementation of sustainable measures Quality Escalation Process In case of ongoing poor quality the following Escalation Scenario will be executed. 1. Level 1: 8d-Process 2. Level 2: Supplier Quality Development Meeting (including strategic action plan) 3. Level 3: Q-Support 4. Level 4: New Business Hold (NBH)

4.15.13 Sub-Supplier For series deliveries it is only allowed to consider subcontractors, whose parts have been used for PPAP to VC CVAS. The Subcontractor must submitt a PPAP to the supplier and the supplier has to evaluate and release it before submitting the whole PPAP to VC CVAS. A change is only allowed after submission of new sample parts to VC CVAS (see 5.14. PPAP). For the new sampling it is only allowed to use approved subcontractors. For a sub-supplier change during serial production VC CVAS has to be informed in advance (see 5.14. PPAP). The order to the subcontractor is only allowed after written agreement by VC CVAS. A delivery to VC CVAS is only allowed after full approval of PPAP by VC CVAS. In the case of a supplier change for safety critical purchased parts the 2-step method is mandatory.

5. NOTES AND REMARKS

For distinguishing copies from originals, tracked copies should always be copied with ‘controlled copy sign’. If a user finds any deficiencies within this Quality standard or when carrying out the described task described, the person has to inform his superior, or the department preparing the standard or the Quality management immediatley. This also applies even when the person finds that the Vibracoustic CVAS Standard has not the latest status of revision. It is not allowed to make revisions independently, they have to be suggested to the department which prepared the standard or to the quality management. It is possible to translate documents to native languages, particularly of Vibracoustic CVAS Standards. The concerned site is responsible for the translation of the documents into a foreign language. The analogous translation has to be checked with the author of the document.

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6. VALID SUPPORTING DOCUMENTS

VCST C01 01 002 Supplier Management VCST C01 01 003 Supplier Performance Evaluation

7. DOCUMENTATION

This VCST is liable to the obligation to keep records. In case of a revision, the latest edition has to be kept for at least 3 years after revision.

8. REVISION SERVICE

The Director of Quality Management and director of purchasing are responsible for the revision service of this VCST. All central documents are available on the VC CVAS portal. Responsibility of the maintenance of the valid documentations, following the changes on the portal is delegated by Quality Director to the nominated person.

9. DISTRIBUTION

This Vibracoustic CVAS Standard and other central documents are filed in the Vibracoustic CVAS Portal.

Every site may distribute this VCST to other departments in its field of responsibility, but has to be ensure an appropriate tracking system (Replacement when amended) (distribution lists).

10. APPENDIX