supplier parts quality manual

SUPPLIER PARTS QUALITY SPQM 001 Rev BREQUIREMENTS MANUAL Issue Date: 10/28/10

Effective Date: 11/08/10

Supplier Systems RequirementsTable of Contents Page

1 Introduction 2

1.1 Scope 21.2 Purpose 21.3 Definition 2

2 General Requirements 3

2.1 Supplier Contact Information 32.2 Supplier Registration (Keihin Website) 32.3 Continuous Improvements 32.4 Government Statues, Regulations and Standards 32.5 Record Retention 32.6 Cost Recovery 32.7 Warranty 42.8 Sub-Supplier Control 4

3 Quality Systems Requirements 4

3.1 Advanced Quality Planning 43.2 Process Quality Control Table 43.3 Minimum Process Requirements (MPR) 53.4 Failure Mode & Effect Analysis 53.5 Packaging and Lot Control - Barcode Labeling Requirements 53.6 Process Capability 53.7 Certificates of Conformity 5, 63.8 Measuring and Test Equipment 63.9 Quality Assurance Visit 73.10 Advance Supplier Assessment 73.11 QAV1 73.12 QAV2 73.13 C/M QAV 7, 83.14 Nonconforming Parts 83.15 0, 1, 3 Response 8, 93.16 Nonconforming Parts Control 93.17 Advance Notice of Nonconforming Parts 93.18 Nonconforming Parts at the Customer 103.19 Nonconforming Part Disposition 93.20 Quality Waiver 103.21 Supplier Quality Rating System 10, 11, 123.22 Annual Review 12, 133.23 Supplier Escalation Process (SEP) Levels 13

4 Change Point Control 13

4.1 Initial Production Parts Control System 13, 144.2 Items of Initial Production Parts Control 14, 154.3 Advanced Initial Production Parts Procedure 154.4 Rank of Initial Production Parts Control 154.5 Rank and Items of Initial Production Parts Control 16

5 Minimum Process Requirements 17-39

6.0 Quality Assurance Systems Timeline 396.1 Quality Regulation Revisions 406.2 History of Revisions 41

KEIHIN CAROLINA SYSTEMS TECHNOLOGY 4/17/2023 1



1 Introduction

1.1 SCOPE

The details stipulated within this manual are in addition and supplemental to any other quality and purchasing agreements or specifications. No action taken by Keihin Carolina System Technology or the Supplier shall relieve the Supplier of the responsibility to supply useable product that conforms to all purchase orders, agreements, quality agreements, prints, and requirements. All contractual obligations are set forth in the Master Supply Agreement executed between Supplier and KCST.

The Supplier acknowledges and agrees to meet the items of quality assurance required hereunder; the Supplier shall achieve or implement a system to achieve: (1) 100% on time delivery; (2) zero defects in all products sold to KCST; (3) immediate and complete failure analysis and countermeasures; (4) shall provide product/services that are environmentally conscious in accordance with KCST policy.

The Keihin Carolina System Technology and Environmental Systems Requirements are based upon the latest edition of ISO/TS 16949 Quality System Requirements and ISO 14001 Environmental System Requirements.

1.2 PURPOSE

The purpose of this manual is to communicate Keihin Carolina System Technologies basic quality requirements / standards necessary to ensure a successful partnership between Keihin Carolina System Technology and our suppliers. This shall apply to all parts, components, and raw materials that are intended for use in Keihin Carolina System Technology manufacturing processes.

This Manual and any updates will be on Keihin (KCST) website (www.cstech-inc.com). It is the Supplier’s responsibility to maintain and comply with the latest version of this manual as of its effective date. This Manual is subject to change by Keihin Carolina System Technology (KCST). The Revision Level of the Manual will be clearly indicated.

1.3 DEFINITION

Through the remainder of the Manual, Keihin Carolina System Technology shall be referred to as "Customer”, or by their respective abbreviations, "KCST".

Through the remainder of the Manual, the Supplier shall be referred to as "Supplier" and shall be defined as any Company that supplies parts, components, etc., that are intended for use in mass production, and to be sold by KCST, or to KCST's customers.

QSD- Quality Systems Database (KCST Website) (www.cstech-inc.com)MPR- Minimum Process RequirementsASA Advance Supplier AssessmentQAV- Quality Audit Verification QAST- Quality Assurance Standard TableSAP- Specified Action PlanTMR- Trial Maturation ResultsFMEA- Failure Mode & Effect AnalysisPQCT- Part Quality Control TableQLVS- Quality Level Verification SheetIPPAAR- Initial Production Part Advanced Approval RequestIPP (Tag)- Initial Production PartsPLCS- Packaging and Lot Control Sheet


http://www.cstech-inc.com/

http://www.cstech-inc.com/



2 GENERAL REQUIREMENTS

2.1 Supplier Contact Information

All Suppliers must submit Supplier Contact Information in its entirety and return it to your KCST Supplier Part Quality Representative. (See Strategic Sourcing for Contact form document) The Supplier Primary Quality Contact information shall be the contact who will respond to any quality inquiries.

Additionally, the Supplier will provide an organizational chart with phone numbers to include Senior Management.

2.2 Supplier Registration

To register the Supplier must submit the Supplier contact Information to your KCST Supplier Quality Engineering representative. This completed form will allow registration of the Supplier to have access to review your Supplier Quality Rating and Non-conformances. For further information and assistance in the registration process please refer to your KCST Supplier Quality Engineering representative.

2.3 Continuous Improvements

The Supplier shall continually improve quality, cost, delivery and other services provided. Continuous improvement efforts shall include mistake-proofing methods in an effort to further reduce defects, part variability, and processing cost.

2.4 Government Statues, Regulations and Standards

KCST is committed to ensuring that all its operations are conducted in a manner that preserves and protects our natural resources, the environment, and safeguards the health and safety of its employees and the public.

The Supplier shall comply with all applicable Government Regulation and Standards. Suppliers must ensure their products comply with all current applicable government statues, regulations and standards (e.g. US FMVSS safety standards).

2.5 Record Retention

KCST’s record retention policy is set forth in the Master Supply Agreement.

2.6 Cost Recovery

Supplier Cost Recovery (CR) will be initiated by KCST when it has been determined that the supplier is responsible for nonconforming / defective product quality. Cost Recovery process will include, but is not limited to: contaminated stock received to KCST, product in transit, non-conforming received goods, assembly line downtime due to delivery or quality related issues and or warranty claims. If there is an occasion due to production schedules and material availability, that do not allow the supplier the opportunity to replace suspect material or sort in a timely manner then KCST reserves the right to:

a) Have KCST personnel inspect and sort all suspect materials at the cost to the supplier.

b) Initiate third party sort for all suspect materials. This cost will be billed to the supplier by the third party sorting company unless supplier has requested assistance to KCST to arrange third party sorting company. If agreed KCST will recover this cost from the supplier.

Supplier shall reference Cost Recovery (SPQD # 0001).




2.7 Warranty

Terms of warranty are set forth in the Master Supply Agreement.

2.8 Sub-Supplier Control

The Supplier shall be responsible for Sub-Supplier Control and the quality of components supplied by sub-suppliers.KCST reserves the right to request and perform on site visits at sub-supplier to confirm manufacturing conditions, manufacturing changes, or as a result of nonconforming product reaching KCST.

3 Quality Systems Requirements

3.1 Advance Quality Planning

Supplier shall be responsible for planning, generating, implementing, and maintaining a Quality Assurance System, (the "Quality System").

Supplier shall establish a Specified Action Plan (SAP), which shall be a system of tracking the development of Supplier's Quality System status. The SAP shall be developed and maintained by Supplier for each new part or model development. The SAP should show development / testing schedules for the following items:

1 Trial and / or production schedules2 Machine / equipment, purchasing / development schedules3 Part testing / qualification plans4 Quality document / systems implementation schedules

The Quality System shall assure the production of parts that conform to all specified requirements. These requirements shall include the following:

1 Systems to prevent the production of nonconforming parts2 Verification of compliance to all standards, procedures, and quality requirements3 Defining and recording of quality problems4 Implementation of timely and effective corrective actions

Supplier shall establish a Trial Maturation Results sheet, ("TMR"), which shall be a system of tracking the development and results of Supplier's trials. The TMR shall be developed and maintained by Supplier for each new part or model development.

Supplier shall reference the SAP (SPQD # 0002) for actual SAP documents and instruction sheets.Supplier shall reference the TMR (SPQD # 0003) for actual TMR documents and instruction sheets.

3.2 Process Quality Control Table

Supplier shall generate and maintain an accurate Process Quality Control Table, ("PQCT") which shall coincide with the actual manufacturing process. The PQCT shall provide the Customer with auditable documentation of all in-process controls and is therefore subject to on-site audits. The PQCT shall be submitted to the Customer for verification prior to mass production of the relative part.The PQCT shall include all controls that are in place for production of parts. These control points shall include actual part controls such as material, dimensional, functional confirmations. Also these points shall reflect machine, or manufacturing controls that have a direct influence on product quality. These include, calibrated items, key quality points, but are not limited to, temperatures, feed rates, air/oil pressures, etc.

Supplier shall reference the PQCT (SPQD # 0004) for actual PQCT documents and instruction sheets.




3.3 Minimum Process Requirements (MPR)

KCST’s requires Supplier and its sub-supplier’s to meet minimum process requirements (MPR). These requirements represent the controls and methods that are required for manufacturing parts to prevent future process related defects. The MPR’s should be reflected in the PQCT and the PFMEA. The MPR’s will be evaluated during ASA, QAV 1, and QAV 2. Any changes made to a MPR designated process after mass production start will require IPPAAR approval. If a supplier cannot meet the requirements they should submit a concern in writing to SPQ and Purchasing. The concern will be reviewed by SPQ and an agreement will be reached. If an agreement cannot be reached; the issue will be escalated to KCST upper management. This may result in a change of supplier. MPR is reflected further within this SPQ Manual. (See Table of contents)

3.4 Failure Mode Effect Analysis

Supplier shall generate and maintain an accurate Failure Mode & Effect Analysis, ("FMEA"), which shall coincide with the actual manufacturing process. The FMEA shall provide the Customer with auditable documentation of all in process controls and is therefore subject to on-site audits. The FMEA shall be submitted to the Customer for verification prior to mass production of the relative part. The FMEA shall identify potential causes of defects and provide adequate means of ranking the severity of defects as well as their occurrence probability. The results of the FMEA shall be reflected in the supplier's quality planning, such as, but not limited to, the PQCT and the QMP.

Supplier shall reference the FMEA (SPQD # 0005) for actual FMEA documents and instruction sheets.

3.5 Packaging and Lot Control Supplier shall guarantee the lot traceability of all manufacturing processes. Supplier shall establish a comprehensive system that ensures traceability from end product supplied to the Customer continuing back through supplied product to the Supplier. All product supplied to the Customer must be clearly identified with the following information:

1 Part name2 Part number3 Quantity4 Lot control number5 Name of supplier

Supplier shall generate and maintain an accurate Packaging and Lot Control Sheet, ("PLCS"), which shall coincide with the actual manufacturing process. The PLCS shall be submitted to the Customer for verification prior to mass production.

Supplier shall reference the PLCS (SPQD # 0006) for actual Packaging and Lot Control Sheet.

3.6 Process Capability

Supplier shall verify the repeatability of each manufacturing process. The items that are to be analyzed shall include critical features specified by the Customer on the Quality Level Verification Sheet, ("QLVS"), or the Quality Assurance Standard Table, ("QAST"). Additional items to be analyzed may be specified by the Customer based on previous defect history. Also, Supplier may specify additional items based on their expertise of the manufacturing process.

All critical features shall have at least 1.33 for CPK to be considered acceptable. Any critical features with a CPK below 1.33 must be 100% inspected by the Supplier.Supplier shall supply a complete QLVS or equivalent with each trial shipment. Failure to supply the necessary data, as determined by the Customer, may result in the rejection of the affected shipment. In addition to QLVS data, the supplier should provide 100% dimensional layout of at least one part per cavity, tool, machine, etc. This data must be accompanied by a ballooned (numbered) print.




Supplier shall reference the QLVS (SPQD # 0007) for the QLVS documents.

Die Go Trials:T1 (Try1, Trial1) – 1pc per cavity requires a full piece layout of all dimensions on the drawing.

Supplier must submit data to customer.

T2 (Try2, Trial2) – T1 parts meet all dimensions on the drawing then no requirement fordimensional check for T2 parts. T1 parts that do not meet the drawing specification diemust be fixed /corrected and dimensions re-verified. Data must be submitted tocustomer before shipment of trials.

T3 (Try3, Trial3) – Requires 30pc process capability per customer QAST requirements.Supplier may choose a third party for measuring capability.Supplier must retain all 30pc capability sample parts until released by KCST SPQ.Customer may request the 30pc process capability parts for correlation study.

Customer Attach Points 100% Guarantee:The purpose of this document is to 100% Guarantee that all Critical Customer attach points are verified 100% by the supplier. If a problem occurs with one of these items, it could impact the performance and function of the entire product. Therefore KCST has specified these items as a critical area for 100% hard verification by the supplier. Please 100% guarantee these items with some type of inspection equipment or fixture and provide details.

Supplier shall reference the (F-8500-034) for the Customer Attach Point 100% Guarantee document.

After the Customer and all subsequent customers approve each part and supplier, the submission of data by the Supplier shall comply with the QAST. This mass production data shall be delivered to the Customer's SPQ department prior to the shipment of affected lots. This data may consist of either in-process data, or final inspection data. However, the data must reflect the parts in the affected shipment. The data must be identified with the lot number and correlate to the actual shipment lots. The quantities, frequency, method, etc., of the data to be detailed shall include, but are not limited to, the items specified on the QAST.

Supplier shall reference the QAST (SPQD # 0008) for the QAST documents.

3.7 Certificates of Conformance

KCST defines Certificate of Conformances that all parts supplied by supplier meet KCST requirements. The supplier must certify each shipment stating material shipped has been tested in accordance with and meets the requirements of the applicable Customer drawing and/or specification. The data to support the certification will be maintained on file at the supplier facility and subject to examination upon request. The certificate will reflect the Customer part number, manufacturer’s part number, purchase order number, lot number, quantity and signature of the supplier’s representative.

3.8 Measuring and Test Equipment

Supplier shall provide adequate means of performing all measuring and inspections required for each part. Each tool should have the required accuracy, repeatability, and resolution per the specified tolerances. Supplier shall implement and maintain a calibration procedure which shall be adequate to recall measuring and test equipment in a timely manner; track all measuring and test equipment; and provide clear historical records of each piece of equipment. All tools used by the Supplier shall be clearly identified as to their current calibration status. If Supplier cannot perform the measurements required; then Supplier shall be responsible for the obtaining an accredited outside source to perform the measurements.




3.9 Quality Assurance Visit

The Customer may require one or more on-site audits of the Supplier's manufacturing process. The purpose of each audit shall be to judge the ability of the Supplier to provide the Customer with acceptable product. The audits shall be defined in the following manner.

1 ASA Advance Supplier Assessment2 QAVI Quality Assurance Visit 13 QAVII Quality Assurance Visit 24 C/M QAV Countermeasure Quality Assurance Visit

3.10 Advance Supplier Assessment

The Customer's purchasing department shall be responsible for selecting one or more potential suppliers. The Quality department shall be responsible for determining the acceptability of each potential supplier's Quality System. Final supplier selection shall be made by a joint decision between the Customer's Development and Planning, Quality, and Purchasing departments. This ASA shall be focused as a systems audit.

3.11 QAV I

After initial product development, members of the Customer's SPQ department shall meet with Supplier at Supplier's premises to conduct QAV I. The following are pre-requisites for QAV I:

1 Supplier shall provide initial drafts of the PQCT.2 Supplier shall provide initial drafts of the FMEA.3 Customer shall provide QAST.4 Supplier shall provide Op Standards including critical PQCT points.

All of the above four items shall be as close to the mass production levels as possible. When one of the above listed are not at mass production level, the supplier shall provide a detailed schedule, for the completion date of mass production readiness.

Supplier shall reference the QAV (SPQD # 0009) for the QAV audit form and (SPQD # 0010) for agenda form.

3.12 QAV II

Members of the Customer's SPQ department shall again meet with Supplier at Supplier's premises to conduct the QAV II, after the Supplier is ready for mass production, and before the production of significant inventories. The following items must be at final mass production level as planned by the Customer and Supplier.

1 Customer shall witness actual production of relative parts or parts.2 All quality documentation.3 All manufacturing equipment.4 All measuring and testing equipment.5 All handling and packaging procedures and materials.6 Confirm MPR (Minimum Process Requirements)

The Customer shall judge Supplier readiness based on, but not limited to the above items. If Supplier is judged not acceptable, then Supplier shall develop and implement a corrective action plan as to their readiness. This plan must be consistent with the Customer's schedules and acceptable to the Customer.




If Supplier is judged as acceptable for mass production, then KCST will commence the approval procedure with our customer. KCST may submit the following information to our customer for approval.

1 Suppliers PQCT2 Suppliers FMEA3 ASA, QAV I, or QAV II results4 Process capability data5 Any additional information required by our customer.

Upon the acceptance and approval from our customer, KCST will notify Supplier as to their approval by issuing an Initial Production Part Advance Approval Request (SPQD # 0011) IPPAAR.

3.13 C/M QAV

In the incidence of Supplier delivering one or more unacceptable parts to the Customer, the Customer may visit Supplier's facility to verify the following:

1 Accurate identification of root cause, possibly including a re-creation of suspected cause.

2 Verification of implemented countermeasures.3 Judgment of the effectiveness of implemented countermeasures.4 Parallel analysis of cause and countermeasures to similar product or processes.

In the event that the Supplier's identification of the cause of the nonconformity and/or countermeasureis not acceptable to the Customer, Supplier shall analyze the nonconformity cause and countermeasure and shall repeat this process as often as required by the Customer, to the satisfaction of the Customer, (see section 3.18) Nonconforming parts at the Customer.

3.14 Nonconforming Parts

Non Conforming parts shall be handled according to the Master Supply Agreement. The Supplier shall use the KCST web-site in corresponding with KCST concerning a non-conformance claim.

3.15 0, 1, 3 Response

Supplier shall respond immediately to the Customer in case of nonconforming or suspect parts being identified either at the Customer, or at any subsequent customer. After Supplier has been notified (see section 3.18 Nonconforming Parts at the Customer) of nonconformance, Supplier shall initiate prompt reaction, based on the 0, 1, 3 Response Policy. This action shall be designed to give rapid feedback to the Customer, quickly isolate suspect product, and progress towards root cause identification and implementation of effective, permanent countermeasures.

Supplier shall reference the 0, 1, 3 Response Guide (below) for the 0, 1, 3 Response guidelines.

0, 1, 3 Response Guide

Customer and in-house Trouble Response Guidelines

Timing Key Items Action Policy Who Responsible0 Same Day Problem

Found

Mark / tag part, segregate from normal parts

Report, document the trouble

Associate, QC Staff, Team Leader

Production Manager

White Board Department

Meeting “0”

Define the complaint; 5W, 2H(Who, What, When Where, Why, How, How Many)

Department Coordinator,Team Leader

Production Manager

Inspection QC Engineer, QC Manager




Response to Customer

Information

Temporary Countermeasure Testing Inspection Results Judgment: Escape Quantity,

Assessment, Function and Effect

Production Manager

1 Next Day Implement

Permanent Countermeasure

Correct the Root Cause(Machine, Materials, Method, Man, Maintenance, Management)

Department Coordinator,Team Leader, QC Engineer

Production Manager

3 Third Day In-House

Report Cause and Countermeasure

presentation (5P)

Department Coordinator,Team Leader, QC Engineer

Production Manager

Day Five Report to

Customer

Forward 5P to Customer “A-Rank” – Presentation at

Customer Facility

Department Manager

Ongoing, Continuous

Follow-up Assure C/M

Effectiveness

Actual parts, Actual place, Actual people – review

Is C/M implemented and correct?

Has desired outcome been achieved?

Have problems been eliminated?

Department Coordinator,Team Leader

Production Manager, QC Engineer follow-up

3.16 Nonconforming Parts ControlSupplier shall maintain a system that clearly identifies the status of any nonconforming materials. In addition, these materials or parts shall be clearly segregated from other production parts. In the event that suspect product escapes to the customer the supplier shall contact the customer of possible containment issue.

3.17 Advance Notice of Nonconforming Parts

The Supplier shall give notice as soon as possible to KCST of any nonconforming material shipped to KCST. Due to the nature of our product, these parts could result in bodily harm or injury to our final customers. This communication should be in written form.

3.18 Nonconforming Parts at the Customer

In the event that the Customer detects nonconforming material, Supplier shall be immediately notified as to the details of the Customer's observations. Supplier may be notified initially by phone, however the Supplier shall also be given written notification of the problem by use of a ''Corrective Action Request" form, (a "CAR"), to be provided to Supplier by the Customer in the event of Supplier's delivery of nonconforming parts. Supplier may be required to respond using the "5 Principles for Problem Solving" form. When determined by the Customer, an on-site audit may be required, (see section 3.14 C/M QAV). The Customer using the "Countermeasure Response & Effectiveness" form, (the CMREF), shall evaluate each corrective action response. Supplier shall also evaluate each CAR on the CMREF form, and return it with the CAR to the Customer. This form evaluates c/m content and judges the amount of time taken before appropriate action was initiated. Upon request, if such actions are deemed inadequate, Supplier shall evaluate and submit countermeasures until judged acceptable by the Customer.

Supplier shall reference the CAR (SPQD # 0012) for the Corrective Action Request.Supplier shall reference the 5 P (SPQD # 0013) for the 5 Principles for Problem Solving. Supplier shall reference the CMREF (SPQD # 0014) for the Countermeasure Response & Effectiveness.Supplier shall reference the Supplier Failure Analysis Minimum Requirement Check Sheet(SPQD 0019) All Supplier corrective actions should include such items listed in form (SPQD 0019)




3.19 Nonconforming Part Disposition

The Customer may make one of the following judgments on suspected nonconforming parts:

1 Scrap/return to the Supplier2 Use after waiver3 Use after repair or rework4 Use after 100% inspection

It is the sole responsibility of Supplier to guarantee the product to the Customer's line. In the event that the Supplier's Quality System has failed to prevent delivery of nonconforming parts to the Customer, the Customer, at its sole discretion, may require Supplier to do one of the following:

1 Supplier Personnel arrive at the Customer in order to inspect or repair suspect parts.2 Supplier Representative and temporary personnel arrive at the Customer in order to

inspect or repair suspect parts. (Contact Quality for approved source.)3 Replacement parts are immediately shipped to the Customer. These parts must be

guaranteed to be free from the defect. To guarantee these parts, the supplier must 100% inspects these parts prior to shipment, or have already isolated root cause and proved to the Customer why the replacement parts are not affected.

3.20 Quality Waiver

Supplier may request for nonconforming parts to be used. It is the Customer's policy to not use any part that does not meet the Specifications. However, due to extenuating circumstances, the Customer may agree to use waiver parts assuming the below criteria has been met:

1 Does not violate end users requirements2 Supplier has isolated and documented the scope of the problem (i.e. suspect lot #'s).3 Supplier has documented the severity of the problem (i.e. measured actual parts) .4 Supplier has found root cause and has already determined C/M. Note: the problem

must have a C/M before the Customer can give waiver approval.5 The Customer has had sufficient time to do testing that guarantees functional and

durability performance.Supplier shall reference the Waiver (SPQD # 0015) for the Quality Waiver Request sheet.

3.21 Supplier Quality Rating System

In the industrial competition, perfect quality and continual improvement are the basic assumptions for success of our company. Our suppliers are business partners an expected to provide “World Class” performance in the areas of quality. Our common target is continual improvement of the quality of our products and services.

We need to record and assess our performance in order to set targets for the future.

The Supplier Parts Quality Rating Index is the Customer’s method for evaluating a Suppliers quality performance. It enables us to assess and to compare the performance of our suppliers objectively.The index is a weighted scale based on defect importance level, nuisance level, response level, part-per-million, and quantity of nonconforming parts received. This evaluation is done on a monthly basis and provides feedback to each supplier.

INDEXThe index is based upon a 100 point system (100 being the best possible score). Table 1 will explain the Calculation Formula. The Rating Scale (Table 2) shows the breakdown of classification for a supplierquality performance related to index score (defined as Good, Average, and Unacceptable). Table 3 offers complete breakdown of the four factors related to the Supplier Quality Index.

RANKINGAfter the Index is calculated for all suppliers, the Index scores are placed in ascending order and ranked.




The lower the rank number, (the higher Index number), the better the Supplier performance for thatevaluation period. For example, Supplier D below had an Index of 95, which was better than Supplier E'sIndex score of 92. Below is an example of ranking done for 10 suppliers, the suppliers are ranked from1 best performance, to 10 worst performance.

Company Index points RankA 100 1B 99 2C 98 3D 95 4E 92 5F 91 6G 85 7H 79 8I 55 9J 21 10

Monthly Review

It is the responsibility of the individual suppliers to monitor their Quality Performance and identify continuous improvement opportunities. The monthly evaluation of a Supplier's index level is provided to each Supplier on the Supplier Quality Rating via KCST QSD Website. An example is provided for review. It summarizes Supplier ranking for the current month, SQR Index, and Supplier Classification. The report also provides graphs showing Customer's Supplier Occurrences YTD and the specific Supplier's occurrences YTD. The Occurrence Log breaks down each quality problem by; occur date, part number, part name, defect, defect rank, Corrective Action Report number, QSD issue date, QSD due date, and C/M results. Also provided is the Customer requirements section, where the Customer will list any information related to quality issues.

Supplier Action section is provided for the Supplier to list any action taken for the quality issues listed in the Occurrence Log.

Future Supplier Action section is provided for the Supplier to list any long term projects to improve overall quality performance.

Supplier Verification section is designed to show that the appropriate personnel have reviewed the Supplier Quality Rating.

Resubmission of Supplier Quality Rating to Customer: The Supplier is responsible for returning a complete and signed copy to Customer by the due date listed at the bottom of the report.

Supplier shall reference SQR (SPQD # 0016) for the SQR sample and flow chart.




SQR Index System

TABLE 1CALCULATION FORMULA

SUPPLIER =Total (Claim Points) – PPM Index Points – Total (NTF Response Time Points)INDEX = Sum(100 - ("A" + "B" + "C" + "D")) – “E” – Sum(NTF “B”)

TABLE 2 RATING SCALE

GOOD AVERAGEBELOW

AVERAGE UNACCEPTABLE

100 - 90 89 - 80 79 -60 59 - 0

TABLE 3EVALUATION CATEGORY RANK INDEX

VALUESTANDARD

IMPORTANCELEVEL INDEX

A

SERIOUSNESS OF A PROBLEM

A 50 *DEFECT THAT MAY LEAD TO FIRE HAZARD*LOSS OF FUNCTION OF SAFETY RELATEDSYSTEMS AND/OR PART.*POTENTIAL VIOLATION OF GOVERNMENT REGULATION OR LAWS.

B 10 *DEFECT OTHER THAN "A" THAT MAY IMPAIRTHE FUNCTION OF THE PRODUCT AND HAS A HIGH POTENTIAL FOR AFFECTING THE CUSTOMER.

C 3 *DEFECT OTHER THAN "A" OR "B", NOT A FUNCTIONAL PROBLEM.

RESPONSELEVEL INDEX

B

HOW LONG UNTIL FINAL REPORT RECEIVED

20 31+ DAYS

10 21 -> 30 DAYS

5 11 -> 20 DAYS

0 0 -> 10 DAYS

NUISANCELEVEL INDEX

C

WHAT LEVEL OFEFFORT WASREQUIRED.

100 * DEFECT RESULTING IN MARKET ACTIVITY

50 * DEFECT RESULTING IN HAM CLAIM.* DEFECT RESULTING IN SORTING OF FINISHED PRODUCT AT CUSTOMER.

5 *DEFECT RESULTING IN SORTING OF PRODUCT PRIORTO ASSEMBLY.

1 *DEFECT NOT RESULTING IN HAM CLAIM, ANDDID NOT REQUIRE ANY SORTING.

QTY OFDEFECTS

D

QTY OF NGPARTS FOUNDAT CUSTOMER

QTY INDEX POINTS

1000+ 5

100 - 999 3

1 -99 1PPM LEVEL INDEX

E

INCURREDPARTS PERMILLION

PPM INDEX POINTS

10,000 OR MORE 10

1,000 - 9,999 8

100 - 999 6

10 - 99 4

1 - 9 2

3.22 Annual Review (QIP)

Those suppliers that did not meet the index point target may be placed on the KCST Supplier Quality Improvement Program. This Program is comprised of: The supplier is required to develop an internal Quality Improvement Plan based off last Ki (April 1st thru March 31st) performance. The supplier will present quarterly to review the plan, as well KCST may visit the supplier for verification of countermeasures and planned improvements

Supplier Rating Scale Evaluation Status:




Score Evaluation Status

90 – 100 Certificate of Conformance data on file80 – 89 Certificate of Conformance and/or data with each shipment60 – 79 3rd party certification or additional inspection or testing 0 – 59 Immediate Plan for Improvement or Desourcing (SEP)

3.23 Supplier Escalation Process (SEP) Levels

Below flow is typical representation of Suppliers, whose overall score falls below 60 will be required to submit and present their Supplier Quality Improvement Plan. The SEP is an important tool to identify the need as a valued member / partner for continuous improvement and development.

Upward flow = Increased expectations

Quarterly Presentation 6 months 2 years * (at discretion of Executive management)

4 Change Point Control

It is critical to track and control “ALL” change points for Effective Quality Control and speedy investigation of failures. All change documents referenced in this manual must be submitted directly to KCST and approval obtained from KCST.

All changes must be approved by KCST “BEFORE” the changes are made.

4.1 Initial Production Parts Control System

The Initial Production Parts (IPP) system is critical in identifying and recording manufacturing change points. It supports precise change point control. This specific control allows for speedy segregation of suspect part ranges during production. It also reduces quantities of vehicles involved in market actions. This type of control is mandated by government regulations for a variety of reasons. Finally, and most importantly, the IPP system informs the subsequent company / department associates of the change and enables those associates to evaluate the change and the effect on their process. The two main aspects of the IPP system are:

1 Initial Production Parts Advanced Approval Request (IPPAAR)The need for advanced notification is determined by change content as mentioned in the Approval Procedure and IPP Procedure.The IPPAAR must to be routed through your SPQ representative.

Keypoints:* Proposed delivery date* Detail description* Supporting data* Part Number Change


Submit QIP

Individual Quality Meeting

Process Review

Purchasing Business Review Meeting

Man

agem

ent R

evie

w

Business onHOLD

Executive Level

Meeting



* Approval must be received prior to shipment of change parts

Supplier shall reference the IPPAAR (SPQD # 0011) for IPPAAR forms and instructions.

2 Initial Production Parts (IPP)1 An IPP tag is needed for all changes noted in the IPP procedure. It is placed

with the actual change parts to identify or "flag" the change point.2 The IPP tag must be included in the first container of IPP parts, and a yellow

” IPP TAG ENCLOSED” sticker placed on the shipping container.3 Customer SPQ Engineer should be notified when the shipment is made.

Supplier shall reference the IPP (SPQD # 0017) for IPP tag instructions.Supplier shall reference IPP Order Information (SPQD # 00018) to order tags and stickers.

4.2 Items of Initial Production Parts Control

This IPP procedure covers the requirements of the Customer to the Supplier and it's "In-house" Departments. The purpose of this procedure is to describe how the Initial Production Parts (IPP) system works and to identify the importance of the system. This procedure will cover the steps required to document a change to a part, starting from receipt of design change information through, and including, mass production. This control is necessary to safeguard the quality of the finished product. The Initial Production Parts Process should generally be used whenever there is a change that affects the part in any way, including, but not limited to, instances when any of the following changes are made:

A. Design ChangeWhen the part drawing changes, altering the physical structure of the part. A design change is only done by the Supplier when a new part drawing or a manufacturing instruction has been issued.

B. New SupplierWhen a Supplier (first supplier) or sub-contractor (second, third, or fourth), who has never produced this particular part, begins manufacturing this part for the Customer.

C. Material ChangeWhen any of the material(s) used to manufacture the part is changed or modified. This can occur at any of the first through fourth sub-contractors.

D. Manufacturing Method ChangeWhen any process used in manufacturing the part is changed or modified. This method change includes any change that affects the way the parts are produced as reflected in the PQCC.This can occur at any of the first through fourth sub-contractors.

E. Manufacturing Process Order ChangeAny time the order of the manufacturing process is changed or deviates from the PQCC.This can occur at any of the first through fourth sub-contractors.

F. Machine ChangeWhen the machine that was used to produce the parts during the part approval process is not used but another machine is. This can occur at any of the first through fourth sub-contractors.

G. Jig/Tool ChangeWhen any of the primary or secondary tooling or jigs are changed or modified, thus affecting the quality, function appearance, or reliability of the part. This can occur at any of the first through fourth sub-contractors.

H. Die/Mold ChangeWhen any die or mold which is utilized in the manufacturing process is new, changed or modified. This can occur at any of the first through fourth sub-contractors.

I. Inspection Method ChangeWhen the inspection of the part is changed or deviates from the PQCC, thus resulting in either an improvement or change in the parts quality or performance. This can occur at any of the first through fourth sub-contractors.

J. Transportation




When the method of transporting the part to the Customer or the packaging of the part deviates from the approved method, which could adversely affects the quality of the part. This can occur at any of the first through fourth sub-contractors.

4.3 Advanced Initial Production Parts Procedure

Supplier shall contact the Customer to determine the lead-time that is needed to qualify the change requested. This lead-time will vary depending on the severity of the change, the criticality of the part function, and the level of testing needed to qualify the part change. After the notification to the Customer, Supplier shall provide the following:

1 Copy of the IPPAAR form2 Capability study, if required3 Sample parts, quantity determined by Customer4 Material testing results, if required5 Characteristics testing, if required6 Updated quality documents, PQCC, FMEA, etc.

The Customer will review the above and perform evaluations as necessary. Upon successful completion of the above items and the Customer's testing, a signed copy of the AIPP will be sent to the supplier. This is the official approval to proceed with the proposed change point. No Changed Product should be shipped prior to approval. The first lot shipped must then be labeled with IPP tags.

4.4 Rank of Initial Production Parts Control

There are three levels of control in the IPP Process. These are defined in the chart below.(If unsure consult your Quality Representative.)

Rank Procedure Control MethodA IPPAAR 1. The supplier initiating the IPP

must report to quality department prior to mass production using the advanced report form (IPPAAR).

2. IPP tag must accompany the first IPP parts, and the parts must be properly labeled

IPP delivery must be done with FIFO, and not mixed with other lots.

The following quality records must be kept,

a. Content of IPPb. Date of IPPc. Date of deliveryd. Quality confirmation data such as

inspection or test data

B IPP IPP tags must be attached to first IPP parts shipped

C Supplier Internal




4.5 Rank and Items of Initial Production Parts ControlNo. Item Contents A B C1 Design

ChangeNewly Designed PartDesign Change that Affects the Parts ItselfDesign Change that does not Affect the Part

(Name and Number Stay the Same)2 New Supplier Adding a New Supplier or SUB-Contractor

Includes Plant Additions at Supplier or Sub-ContractorChanging the Supplier or Sub-ContractorChange in the Delivery LocationChange from In-House Production to Outsourced Supplier

3 Material Change

Change in Material SupplierChange from Material Supplied to In-House SupplyChange in Material Itself

(Including Anti-Rust Agents)4 Manufacturing

Method Change

Change in Manufacturing MethodChange in Manufacturing Conditions

(Time, Temps, Speeds, Pressures, etc.)Change in Sub-Contractor/Sub-Supplier Manufacturing MethodChange in Sub-Contractor/Sub-Supplier Manufacturing Conditions

(Time, Temps, Speeds, Pressures, etc.)Change the Associate

5 Process Order Change

Change in the Sequence of the ProcessChange from Temporary Process to Permanent Process from Permanent Process to Temporary Process

6 Machine Change

Modification or Major Repair to MachineInitial use of MachineMove Existing Equipment to New LocationWithin the same plant

7 Jig/Tool Change

Change in Tooling or Jigs for Master Parts

8 Die/Mold Change

Modification or Touch up of the Die Renewal or New Die

9 Inspection Method Change

New or Modified Inspection Jigs or EquipmentNew or Modified Inspection FrequenciesNew or Modified Inspection Method

10 Transportation/Packaging Change

Change in delivery Method




5 Minimum Process Requirements

Purpose The purpose of this document is to clarify and communicate minimum process requirements to reduce process related defects.

Scope This procedure applies to all OEM purchased parts and material products shipped to KeihinCarolina System Technology Inc., plant. This also includes any component parts shipped to aTier 1 supplier.

This procedure applies to the following processesCastingElectronics (Printed Circuit Boards)General requirementsHeat TreatmentInjection MoldingMachiningStampingWelding (Projection, Mig, Resistance)Wire Harness

Minimum The Minimum Process Requirements define the controls and methods KCST requires inProcess applicable manufacturing processes. These requirements were established to prevent futureRequirements process related quality defects. These requirements are minimum process requirements. SPQDefinition may require additional process requirements where applicable.

Initial Quote The supplier must assure the Minimum Process Requirements are built into the applicable processes. Requirements must be included when developing each manufacturing process and reflected in the PQCT.

The supplier must complete the Minimum Process Checksheet. The quote must include meetingthe minimum process requirements as stated in this procedure.

KCST purchasing is responsible for requesting quotes per drawing specifications. At that time, KCST purchasing communicates through the RFQ that the supplier must quote based on meeting the Minimum Process Requirements.

If a supplier cannot or will not meet the minimum process requirements, the supplier is requiredto respond in writing explaining the requirement that they are unable to meet and the reason. This correspondence must be sent to purchasing with the part quote. Purchasing forwards the supplier’s response to SPQ. Purchasing, SPQ and the supplier attempt to resolve the issue. If no agreement can be made, the issue is escalated to upper management. The quote may be considered a supplierno quote.

Note – If a supplier cannot or will not meet the minimum process requirements, the supplier isrequired to present how it will guarantee quality.




Minimum Process Requirements

QAV-1 Evaluation Suppliers are responsible to confirm the Minimum Process Requirements are included in the PQCT before submission to SPQ for review.

If a supplier cannot or will not meet the minimum process requirement, the supplier communicates concerns to SPQ. SPQ and the supplier attempt to resolve the issue. If no agreement can be made, the issue is escalated to upper management.

The supplier is responsible to develop their manufacturing process, incorporating the minimum process controls.

Note – the applicable Minimum Process Requirements are included in the PQCT development.

QAV-2 Evaluation At SPQ management’s discretion, SPQ project members will audit the supplier’s processes to confirm conformance to the PQCT. Any deviations must be addressed immediately. SPQ will document concerns on a QAV report when applicable. Suppliers are responsible to maintain adherence to all applicable minimum process requirements during process development and revisions to the PQCT.

The MPR Check sheet is used as a tool for confirmation that the minimum process requirements were verified when developing the supplier’s manufacturing process. The check sheets can be found on the KCST website in the Supplier Quality Manual. The website is ‘www.cstech-inc.com”

If a supplier does not adhere to the minimum process requirements, SPQ communicates concerns to the supplier. SPQ and the supplier attempt to resolve the issue. If no agreement can be made, the issue is escalated to upper management. SPQ notifies Management of the supplier’s failure to conform to the minimum process requirements. Failure to comply, results in a supplier class change.

MassProduction At SPQ Management’s discretion, SPQ audits the supplier’s processes to confirm conformance

to the minimum process requirements. Any deviations found must be addressed immediately. SPQ will document concerns on a QAV report when applicable. In the event of a design change to the part, that would impact a MPR requirement, the IPPAAR process must be followed to ensure MPR’s are incorporated. It is the supplier’s responsibility to maintain the minimum process requirements.

Technical The flow below shows the technical question flow for Minimum Process Requirements.Question Flowfor MPR’s

Minimum Process Requirements(MPR)

Technical Question Flow


Email MPR Question to your KCST SPQ Engineering Representative

KCST SPQ

MRP Answer

Supplier




General The table below shows the general minimum process requirements.MinimumProcessRequirements

No. Requirement

1Equipment must have start up checks using a detailed check sheet a minimum of once per shift and after maintenance. Shift start up checks must include verification (good and no good condition) of process controls (e.g. preset wrenches, alarms, poka yoke, etc...).

2Equipment must have documented Preventative Maintenance Schedule and trackingmethod to alert scheduled maintenance. PM schedule must be based on manufacturerrecommendations and past problem history.

3Must have process operation standards at each process. Operations standards to include the detail of part(s) to be manufactured including materials, components, and process order, as well as machine, tooling, and equipment settings. Operation standards must have sign off by line associates and management.

4Must have a detailed training procedure for each process. Training must be documentedshowing evidence of operators trained on each process including updated (refresher)training as required. Training must include the repair/rework and maintenance processes.

5

Must have documented procedure for containment of non-conforming parts. Nonconforming parts must be identified and stored in designated containers until disposition is made. Inventory prior to concern and after concern must be guaranteed to be free of nonconforming parts.

6

Must have procedure for off line repair, which is approved by the Quality Group. Repair/rework parts must go through final inspection area after repair complete. All off line repairs must be documented. Documentation to include part number, date, shift, and name of repair associate.

7Only trained or authorized associates should have access to change equipment parameters and controls.

8Must have documented and certified gage program to guarantee the collection of variable and attribute data.

9 Must practice FIFO throughout.

10All parts, materials, and containers must be clearly identified throughout the supplier's manufacturing process.


Electronics- The tables below show the minimum process requirements for Printed Circuit Boards.PCB MinimumProcessRequirements

Note: Final product must conform to IPC-A-610. (Association Connecting Electronics Industries) Final class to be agreed to by KCST and supplier.

1. Solder Stencil

Item Method Frequency

Solder paste volumeMeasure solder height or volume on sample of smallest pads across PCB. Comparison measurements to be done across PCB to guarantee even distribution.

Once per 2 hour minimum

Stencil cleaning method Automatic Stencil Cleaner Once per shift or per work




order, whichever is lessStencil manufacturing method Laser cut or Electroformed (E-FAB) Per supplier

specificationsStencil underside wiping method Automatic underside wipe Per supplier specification

Stencil print registration-Stencil to PCB

Vision alignment with fiducial 100%

2. Component PlacementItem Method Frequency

Placement capability (each machine)

CpK analysis on actual product for smallest component, finest pitch IC, any other component of concern

New Model (MN) timing, during trial build at T-3 level PCB’s

Ensure correct component when changing reel/tray

Documented changeover with 2 person control or scan system

Each component change over

3. Manual Insertion

Item Method FrequencyConfirmation of correct component

Visual confirmation of component for presence and polarity

100 %

4. ReflowItem Method Frequency

Thermal Profile Per supplier’s specification and solder paste Minimum 1 time per week

5. Glue Dispense and CureItem Method Frequency

Glue Dot size (diameter) CpK analysis on actual product NM timing, during trial build at T-3 level PCB’s

Glue dot placement CpK analysis on actual product, for smallest B-side component

NM timing, during trial build at T-3 level PCB’s


Electronics- PCB Minimum Process Requirements (continued)

6. Solderwave/Selective SolderItem Method Frequency

Thermal Profile Per supplier’s specification Minimum 1 time per weekFlux Control Per Technical Data Sheet (TDS) Per supplier’s

Specification

7. SolderingItem Method Frequency

Hand Soldering not permissible for mass production

Not Permissible Not permissible

8. Conformal CoatingItem Method Frequency

Conformal coat application method

Automatic spray, dispense or automatic dip.Brushing by hand not allowed.

100%




9. In-Process HandlingItem Method Frequency

PCB contamination- No skin contact to PCB allowed

Glove or finger cots 100%

PCB storage for work in progress (WIP) when not on conveyer

Racks which hold PCB by an unpopulated tab, and do not allow any contact with other PCB’s

100%

PCB flexure, at any process in which the PCB is engaged or could be flexed

Strain gauge analysis NM timing

ESD control Conform to ANSI/ESD S20.20 100%Material storage control(including storage, in process, and finished goods)

As per technical data sheet 100%

10. Panel SeparationItem Method Frequency

PCB flexure Strain gauge analysis NM timing

11. Screw InsertionItem Method Frequency

Screw torque Torque CpK on actual product NM timing, during trial build at T-3 level PCB’s

Screw presence- No missing screw (all parts with more than two screws)

Automatic screw counting. Presence is counted when torque/angle is achieved. Part should not proceed to next process step until proper count is achieved.

100%

Manual screw insertion PCB must be protected by product design or fixture from potential damaged by insertion device

100%


Electronics- PCB Minimum Process Requirements (continued)

12. TestItem Method Frequency

Test coverage by component Matrix showing capability of detection presence, proper polarity, and value for each component by test process (ICT, Functional Test, Final, etc.)

NM timing

Test coverage by function Matrix showing confirmation of function per specification by test process (ICT, Functional Test, Final, etc.)

NM timing

Case grounded (if conductive) at final test

Per supplier’s specification 100 %

13. Repair/ReworkItem Method Frequency

Rework control Conform to IPC-7711 As requiredRepair control Conform to IPC-7712 As requiredFor other flux types which requires washing: Level of ionic contamination after manual solder/touch-up process

Ionic chromatograph or surface insulation resistance (SIR)

NM timing and a minimum of 1 time per shift





Weld Minimum The tables below show the minimum process requirements for WeldingProcessRequirements

1. EquipmentResistance

WeldingProjectionWelding

MigWelding

InspectionItem

Method Frequency

√ √ √

Tip dress andTip change frequency

Capability study must be performed to determine trip dress and tip change frequency

New equipment installed Tip style change, Tip manufacturer change, Tip composition change, Material grade/thickness change, and/or New model timing

√ √

Auto/MustManual/Want

EquipmentControl

Equipment must have lockout to prevent unauthorized weld adjustment.

100%

√ √Auto/MustManual/Want

Weld Failure/Interruptions/Adjustments

Equipment must have visual and audible alarm and line must stop in the event of a weld failure

100%

√


Equipment must not release or advance parts to the next process in the event the cycle is interrupted or fails.

100%

√√ √

Adjustments made to the process must be documented and the quality characteristics of all weld must be guaranteed.(jig change ,robot teaching,etc)

100%

√Auto/MustManual/Want


Part Presence Equipment must have part presence sensor/poke yoke

100% And sensor to be verified at the start of each shift

na √ na

Nut Presence Equipment must have nut presence sensor/poke yoke for presence and proper orientation.

100%

√ n/ana Automatic tip

dresserMust have automatic tip dresser

100%





Weld Minimum Process Requirements (continued)

2. Process ControlResistance

WeldingProjection Welding

MigWelding

InspectionItem

Method Frequency

√ n/a √

Inspection of part

Production associates must confirm quantity and location of welds to a master part 1 time per shift

√ √ √Final Inspection

Must have final inspection on each part at the end of the process (burrs, cracks, missing pin holes, excess splatter, off location, etc)

100%

√ √ √ Master Part

Supplier must have a master part that matches the drawing. Master part to be updated when there is a design change.

100%

√ √ √MarkerCheckInspections

All markers must be approved by KCST, for compatibility to customer’s paint system, before use on metal parts, prior to e-coat

100%

3. Quality ConfirmationResistance

WeldingProjectionWelding

MigWelding

InspectionItem

Method Frequency

√ √ √

DatumTargets

Must have datum targets on all welding jigs bases, inspection fixtures, and included in jig and fixture standards.

100%, confirmed NM start-up and used during all jig modifications and/or adjustments.

√ √ √

Quality checks (i.e. driver checks)

Quality checks must be done and results must be recorded. All parts utilizing 780Mpa materials and above: actual parts that are driver checked must be controlled and quarantined at supplier and shall not be shipped to KCST plants for usage.

Beginning/middle/end of shift Abnormal conditions Unless otherwise negotiated during New Model timing





Weld Minimum Process Requirements (continued)

3. Quality Confirmation (continued)

ResistanceWelding

ProjectionWelding

MigWelding

InspectionItem

Method Frequency

HES E 001-99

HES A 1018-04

HES B 031-99

CustomerSpecification5135Z-SX8-

T000

Quality Testing(i.e. macro testing)

Quality group must confirm product by listed test method.Result must be recorded.

1 complete test every 3 months(supplier must set-up a weekly rotation covering all welds in a 3 month period, including all jig/line combinationsAbnormal conditions

√ n/a √Quality Testing

Quality group must confirm length, quantity, and location of welds to KCST drawing.

At New Model and weekly there after

HES E 001-99

HES A 1018-04

HES B 031-99

Customer Specification5135Z-SX8-

T000

Non DestructiveTesting(NDT)

The following requirements apply if NDT is to be used as an alternative to driver checking:

* Supplier must achieve and maintain inspector certification per equipment maker guidelines.

* Supplier shall have certified inspectors on site during all supplier production hours and shifts.

* Supplier shall conduct NDT data correlation to destruct testing and driver check testing and review with customer prior to implementing as a substitute to driver checks.

* In the event of equipment downtime or certification lapse, supplier is required to follow the above driver check guidelines

Negotiated between Plant and Supplier.NDT does not replace the minimum destruct requirements





4. Abnormal Process ConditionsResistance

WeldProjectionWelding

MigWelding

InspectionItem

Method Frequency

√ √ √Driver/DestructConfirmations

Must have documented containment and process feedback procedures for use when finding no good weds during driver/destruct confirmation. All parts utilizing 780 Mpa material and above: actual part that are driver checked must be controlled and quarantined at supplier and shall not be shipped to Customer plants for vehicle usage.

100%

Casting Minimum Note: The supplier must quote a part based on porosity allowed per specificationProcessRequirements

1. Receiving Inspection (All Casting Types)Inspection Item Method Frequency

Raw Material being received

Received and confirm properties of incoming raw material. Information must be documented.

Each heat or lot

Raw Material being loaded into Furnace

Must record all raw material loaded into each furnace, by furnace identification- Must record: Lot number, Date, Time, bundle or Heat number, Supplier name

Each bundle or change

2. Melting Furnace (All Casting Types)Item Method Frequency

Must control molten materialTemperature

Pyrometer/Thermocouple/control Panel Continuous monitoring

Must control re-melt percentage

% of scrap added per SOP (Standard operation Procedure)

Continuous or each heat

Must verify correct material properties (if no holding furnace)

Per specification Each heat lot

3. Holding/Casting Furnace(All Casting Types)Item Method Frequency

Most control molten material

Temperature

Pyrometer/Thermocouple/Control PanelDocument temperature of material

Continuous monitoring

Most control casting material temperature before entering mold

Chart recorder/PLC interlock and /or manually recorded. When temperature is out of specification prior to pouring, must have immediate alert.

Continuous

Must verify correct material properties

Per specification Each heat lot





Casting Minimum Process Requirements (continued)

4. Degassing (Per part specification)Item Method Frequency

Must control settings Check sheet Once per dayMust confirm correct gas beingUsed

Certification sheet from supplier Per lot of gas received

Must confirm gas content after degassing

Vacuum Fusion analysis or equivalent Per heat

5. Sand Core/Pattern (Tilt, LPDC, FerrousItem Method Frequency

Must confirm sand properties

Certification sheets from supplier Per lot of sand received

6. Molding (Tilt, LPDC, Ferrous)Item Method Frequency

Must confirm mold machine and Die alignment

Height gauge, dial indicators, alignment fixtures Per PM schedule

Must control parameters ofMold machine

Gauges on machine/check sheet New ModelLaunch/Setup/Once perShift

7. Pouring (All Casting Types)Item Method Frequency

Must control mold filling speed, pressure curve, curing time, die clamp

pressure

PLC Continuous or check sheet

Must control inoculationAmount/nodularity

Per specification Per batch

Must control die temperature/die flame and

cooling rate

PLC/flow gauge/ Temperature controller Continuous or check sheet

8. Die (All Casting Types)Item Method Frequency

Must confirm die dimensions

Die marker data, Measure parts off die New Model launch and when a new die is issued

Must have documented die maintenance and repair

PM schedule/Signed off completed work order Per supplier PM schedule/As needed

Must have model type and cavity number on die

Setup check sheet/ part confirmation At model change

Must confirm die lube Lube ratio and application pattern Per certification sheet/At mix timing/At setup

Must confirm die coating Thickness check gauge/SOP Per supplier PM schedule/As needed





Casting Minimum Process Requirements (continued)

9. Shot Blast/Flash Removal/Trim Die (All Casting Types)Item Method Frequency

Must confirm shot size and type

Incoming receiving inspection New Model launch/Once perLot

Must control load size, time, and shot speed/pressure for flash removal equipment

PLC, pressure gage Shift startup

10. Quality (All Casting Types)Item Method FrequencyMust have material checked to verify hardness and chemistry (Ferrous and Aluminum Casting)

Brinnell Test, SEM, Test labSpectrometer, Rockwell Per batch

Must complete visual casting defect checks

Visual/MagnafluxContinuous

Must perform a casting dimension check

CMM, QC gagesAt die set and once per shift

Must perform a core dimension check

CMM , QC gagesAt die set and once per shift

Must perform mechanical properties testing

Tensile testerNew model launch

Must have capability and perform destruct testing (porosity, color etc…)

Per specification As required

Must have capability and perform non-destruct testing

X-ray, Eddy current, Magnaflux, etc… As required





Machining These requirements apply to both machining and grinding processes.MachiningProcessRequirements

No. Requirement 1. 30 pieces Cp/Cpk must be done per machine on each fixture for machined dimensions including surface

roughness as negotiated by Honda Parts Quality. 30 piece random sample including all fixtures also acceptable. 1.33 Cp/Cpk must be continually maintained. Must be completed at each New Model and per IPPAAR procedure matrix.

2. Machining/ layout datum and critical dimensions must be determined/ documented between the supplier and Honda at New Model timing or IPPAAR change.

3. Must develop a plan at New Model timing to complete a tool life and grinding wheel dress frequency study. Results must be available upon request.

4. Equipment must have system to prevent unauthorized machine adjustment (e.g. lockout, password, etc.).

5. Process must have system to detect a broken drill/tap/tool or an automated check to verify the machined feature.

6. Equipment must have fixturing to guarantee part presence and proper position during process (no mislead).

7. Machine/ fixture ID must be indicated on each part for duplicate processes (e.g. two machines making same part.

8. Fixture must have model type detection/ poka yoke where applicable (e.g. multi-application exists).9. In the event of tool interruption during production, must have documented operation standard to recover

equipment. In addition, the last piece produced before tool interruption and first piece before continued production, must be confirmed (e.g. power outage, tool breakage, etc.).

10. Quality checks must be done at the beginning/middle/end of each shift or as negotiated during New Model. Variable data must be documented and analyzed for trends. Additional confirmation required during abnormal situations.

11. Threaded holes must be verified with a thread gage. Minor thread diameter must also be confirmed with a plug gage to assure proper thread engagement. Frequency to be documented on PQCT

12. Parts must be free from contamination that could impact the functionality of the part or the mating parts.





Heat Treatment The tables below show the minimum process requirements for Heat Treatment.MinimumProcessRequirements

1. Receiving Inspection (All Heat Treatment Types) Inspection Item Method Inspection FrequencyRaw Material being received

No rust, dents, abnormal damage, per standard.

Each heat or lot

Parts being received No rust, dents, abnormal damage, per standards. Confirm lot identification.

Each lot number

2. Lot Control of Product (All Heat Treatment Types)Inspection Item Method Inspection FrequencyMust have Lot Control on incoming and outgoing material traceable back to heat number.

Identification on the parts, racks, bundles, etc… Heat treated parts must be traceable back to all processes. (e.g... Heat treatment, casting

Continuous monitoring

3. Stacking/ Loading Method (Based on New Model development results) (All Heat Treatment Types except Induction Hardening)

Inspection Item Method Inspection FrequencyMust have uniform stacking for parts going into furnace to confirm through heat treatment of all parts. Parts cannot touch (will be easy case)

Must have standard to stack parts or method to perform uniform loading

100%

4. Rack/ Belt Requirements (Carburizing, Nitriding, Liquid Carbon Nitriding, etc...)Inspection Item Method Inspection FrequencyNew furnace racks or belts must be seasoned before using for mass production (Ferrous material only)

Must run racks or belts through one heat treatment cycle prior to using for mass production 100%





Heat Treatment Minimum Process Requirements (continued)

5. Start-up and In- Process Equipment ChecksInspection Item Method Inspection Frequency

Must have start-up and in-process checks with detailed worksheet. Must be documented.

Temperature Gages/ Controls Checks to be verified at the start and end of each lot

Minimum Start-up ChecksAnneal, Normalizing, Neutral- Hardening, Through-Hardening, Quench, Temper, and Sintering

Induction Hardening

Flame Hardening

Surface Hardening/ Carburizing, Carbonitriding, Nitriding, Ferritic Nitro carburizing

Check Item

(Verified at start and end of each lot)

X X Carbon potential verificationX X X Temperature Set PointX X Atmosphere controls where applicableX X Time in furnaceX X Belt Speed – if continuous conveyerX X Circulating fans - verify runningX X X X Flow meters, temperature, digital and

pressure gages must have limit marksX X X X Quench temperaturesX X X X Quench concentrationX X X X Quench oil type/MediaX X X X Quench flow/agitation

X Coil condition X X Flame burner condition X Energy monitor- amperageX X Coil or torch gap position

X X X X Heat time- actual time is on part or time at temperature

X X X X Quench timeX X X X Quench delay

6. Process Control Alarms (All types of Heat Treatment)Inspection Item Method Inspection

FrequencyMust have alarms for Temperature, Conveyers, Atmosphere flow, Circulating fans, and Quench parameters.

Alarms to detect abnormal conditions for automated processes. Continuous





Heat Treatment Minimum Process Requirements (continued)

7. Quality Confirmation (All types of Heat Treatment)Inspection Item Method Inspection

FrequencyMust have quality confirmation. Hardness tester, Microscope, per Honda

requirementsContinuous

Minimum Quality ChecksAnneal,

Normalizing,Neutral-

Hardening,Through-

Hardening,Quench,

Temper, andSintering

InductionHardening

FlameHardening

SurfaceHardening/Carburizing,

Carbonitriding,Nitriding, FerriticNitro carburizing

Check Item(New Model Timing and as specified)

X X X X Surface hardness per specification

Per DrawingPer

DrawingPer

DrawingPer Drawing Core hardness per specification

Per DrawingPer

DrawingPer

DrawingPer Drawing Micro Structure verification

Per DrawingPer

DrawingPer

DrawingPer Drawing De-carb – verify layer thickness

X X X Case DepthPer

DrawingPosition of Heat Treatment (macro-etch)

X White layer thickness / diffusion depth

Per DrawingPer

DrawingPer

DrawingPer Drawing Mechanical properties (case by case)

Per Drawing Density (powder metal parts)

8. Abnormal Process Conditions (All Heat Treatment Types)

Inspection Item MethodInspectionFrequency

Must have downtime/abnormal conditionprocedure

Procedure to include containment of suspectlot, reconfirmation of part quality and furnacecondition at re-start

Continuous

Rework of non-conforming parts

Must have procedure to explain, types ofprocesses to be reworked, number of times torework, quality checks to be conducted, andnotification of supervisor. Supplier qualitymust approve procedure and parts. Allreworks must be documented.

Continuous





9. Preventative Maintenance (All Heat Treatment Types)


Must have PM schedule on Thermalcouples, Atmosphere controls, Alarms,Fan bearings, Water jackets, Coils, andother recommendations specified byequipment manufacturer.

Per PM schedule

Per Equipmentmanufacturer'srecommendationsor normal heattreating process.


Injection Molding Minimum Process Requirements

The following Minimum Process Requirements are required for the Injection Molding processes listed below:Insert, Low Pressure, Dual, RIM, Gas Assist, Co-Injection.

1. Receiving Inspection


Material confirmationReceive and confirm critical properties ofincoming raw material. Information must bedocumented.

Each material lot

TraceabilityA method to track all material from receivingthrough final product. (i.e. .date stamp, datewheel, or date matrix.

Each material lot

2. Material Preparation


Correct MaterialMust have procedure to identify correctmaterial is used to mold part

100%

Re-Grind ControlMust have procedure to verify percentage ofre-grind allowed.

100%

Material DryingMust have procedure to verify materialmoisture content per material data sheet

100%

Material ContaminationMust have method to protect material fromcontamination throughout process. (i.e.gaylord with covers, etc.)

100%

Color ConcentrateMust have procedure to control colorconcentrate percentage and confirm the colorof the final product.

100%

Reactants Confirmation/Correct Formula

Must have procedure to control colorconcentrate percentage and confirm the color

Each material lot




of the final product.


Injection Molding Minimum Process Requirements (continued)

3. Machine Set-up (Based on New Model development results)


InsertLow

PressureDual

GasAssist

InjectionMolding

ReactionInjectionMolding

Co-Injection

Must have equipment set-up sheetapproved during New Model. Must haveprocedure in place to document anydeviation from set-up.Minimum start up checks:

All checkslisted belowto be verifiedat start upand at moldchange.

X X X X X X Injection Velocity

X X X X X X Hold and pack

X X X X X X Injection time

X X X X X X Peak pressure

X X X X X X Minimum cushion

X X X X X X Screw recovery

X X X X X X Cooling time

X X X X X X Barrel Nozzle and heater band(zone) temperature control

X X X X X XHot runner (zone)temperature control, ifapplicable

X X X X X X Mold Theromolator control

X X X X X XWater hook-up control (ie. color code in and out connections)

X Cavity temperature

X Core temperature

X Reactant tank temperature (poly and iso)

X Pouring time

X X X X X X Clamp Opening control

X X X X X X Closing control

X X X X X X Clamp tonnage

X X X X X X Mold position

X X X X X X Mold safety control

X X X X X X Ejection/Mold

Speed control

X X X X X X Position control

X Air pressure

X Fluid/reactant pressure

X X X X X X Hydraulicor Air

Speed control

X X X X X X Position control

X X X X X X X Cycle Time

X Gas Assist Gas injection pressure

X Speed/ramp control

X Time

X Cylinder position if applicable





Injection Molding Minimum Process Requirements (continued)

4. MoldingInspection Item Method Inspection

FrequencyLocation of Film/Top coat (Insert / Low pressure / RIM)

Must have method of location film / topcoat inside of mold.

100%

Paint removalAutomatic method of removing part. Methodmust not damage part. If manual unload musthave an operations standard.

100%

Gate TrimGate trim must not exceed limit sample.Removal of gate must not damage part.

100%

Appearance confirmation for cosmeticparts

Must match drawing or limit sample. 100%

5. Quality Confirmation


Quality confirmation check sheetMust have check sheet which lists items to beverified (check sheet must include harnesscheck for RIM product, durometer)

At set-up(all items listedbelow) and onepiece per shift

Dimensional confirmationCheck fixture, measurement tools, or CMMper data sheet

At start up andone piece pershift

Color confirmation Per master sampleAt start up andeach colorchange.

Gloss confirmationPer drawing. Results must be documented andverified for trends

At start up andeach colorchange.

Visual defects Visual confirmation per production sampleAt start up andeach colorchange.

6. Abnormal Process Conditions


Must have downtime/abnormal condition procedure

Procedure to include: containment of suspectlot, reconfirmation of part quality, machinecondition, and purging of material at re-start.

Continuous


Wire Harness Minimum Process Requirements

Note: Must conform to HES and other applicable standards (IPC/WHMA-A620, JIS, etc.)

1. Receiving Inspection





All components (clips, grommets,terminals, wire, waterproof seals,couplets, JC caps, etc.)

Must have documented procedure forreceiving inspection. Results must bedocumented and filed.

Per lot

Wire Testing

Spark test to be conducted per relatedstandard. Results must be documented andfiled. (inhouse or at subsupplier)

1 time per monthon each wire size

Voltage test to be conducted per relatedstandard. Results must be documented andfiled. . (inhouse or at subsupplier)

1 time per monthon each wire size

2. Cut, Crimp, and Terminating


SRS harness circuits denoted by Q point on drawing

Must have designated/automated cut andcrimp equipment. Must have crimp forcemonitors and be identified throughout theprocess.

100%

A and G Rank circuits(see the Supplier Quality Manual forexplanations on rank)

Must have crimp force monitors and beidentified throughout processes.

100%

All other automatic cut and crimp circuits

Mis-strip sensors 100%

All other manual cut and crimp circuits Visual inspection200% ( twoseparate 100%checks)

Set-up procedures

Bell mouth, crimp heights, vinyl height, pulltest, strip length, wire size, wire type, wirecolor, etc. Must be verified and documented.

One per lot

Set-up wire samples must be different lengththan mass production lengths to be easilydistinguishable

100%

Crimping ConditionVisual inspection for damaged terminals, nostrands out, no cut strands, no high/lowinsulation, etc.

100%

Terminal ProtectionAll bundles must have protective coveringover terminals for transportation and handling.

100%

Twisting Wire Machine set up for pitch control 100%Shielding When stripping no nicks or cuts to core wire 100%

Splice TapingTaping must completely cover splice area.Must have visual inspection to confirm.

100%

Shielding, splicing and weldingMust conform to HES, IPC, JIS (whenapplicable)

100%

Shielding, splicing, welding, and taping Visual inspection 100%


Wire Harness Minimum Process Requirements (continued)

3. Sub-Assembly / Assembly


Wire Condition at sub-assembly storage

Racks to be clear of sharp edges to ensure nodamage to wires

100%

Terminal InsertionPush, click, pull must be performed on eachterminal insertion

100%

Terminal ConditionVisual inspection for damaged terminals.Damaged terminals to be place in scrap bin.

100%




Terminal LocationVisual aid and operations standard atprocesses.

100%

Wire LayoutSame colored wires that have similar lengthsmust be assembled at different assemblystations

100%

Wire LayoutTape wires by pulling back from couplers toensure wires are even lengths.

100%

Component Containers and ApronsContainers and aprons must be free of dirt andforeign objects.

100%

Correct Components Operation standards/visual aid/Kanban 100%

Directional component, protector, andgrommet orientation/presence

Poke yoke to assure correctorientation/presence as per section views

100%

Branch orientation and length Board layout and fixtures 100%

Part change overBoards to be identified with part number anddesign level.

100%

Terminal contact with floorSupplier must have method to preventterminals from contacting plant floor. (aprons,troughs, etc.)

100%

Taping TechniquesMust have effective taping method which doesnot change branch length or orientation

100%

Board MaintenanceInspection of board fixtures to ensure fixturesare tight, no broken, etc.

Start of shift

Corrugated Tube ApplicatorUse applicator to install tubing to ensure noInsulation damage.

100%

4. Inspection


Component presence (clips, grommets, protectors, clamps, retainers, secondary locks, boots, etc.)

Detection system to assure presence(micro-switch, fixture, holder, etc.)

100%

Multi-circuit harnesses have CircuitProgram.

Circuit check to verify continuity, missingcircuits, missing components, terminalback out, shorts, extra circuits, etc.

100%

Circuit Program

Confirm JC connectors have continuity/noshorts after JC caps are installed.

100%

Circuit programs to be confirmed andApproved by supplier.

At New Modeltiming, design changeor ManufacturingInstruction

Must have backup circuit program available in the event of loss of data.

100%


Wire Harness Minimum Process Requirements (continued)

4. Inspection (continued)


Circuit check master harness Confirm correct program of circuit board At set-up and




and detection system. Must be confirmedand approved by supplier.

change over

Dimensional Inspection BoardMust have to verify harness. Inspectionboard to be made at nominal.

100%

Dimensional Master Harness

Master harnesses to be made 50% or lessof tolerance. Must be confirmed andapproved by supplier.

At New Modeltiming, design changeor ManufacturingInstruction.

Inspection IdentificationParts must be identified that they passedinspection unless specified by Honda.

100%

Confirmation BoardsBoard to be identified with part numberand design level.

100%

Inspection DataInspection data received from suppliermust use Honda drawing when judging quality of part.

At New Modeltiming, design changeor ManufacturingInstruction and asspecified by Honda.

5. Part Identification


Labeling

Part identification as specified by customer.Labeling must have traceability back toproduction and component lot/date range.Must have method to verify correct labeling.(bar code scanning procedure, etc…)

100%

Part Marking as specified by Honda.Part markings must be confirmed to partmarking drawing.

100% at NewModel timing,design change orManufacturingInstruction.

6. Abnormal flows


Change Point ControlMust have procedure to confirm assembly andinspection boards and fixtures are at properdesign level.

Per procedure

SRS Harness No repairs allowed 100%


Stamping Minimum Process Requirements

1. Material Ordering ConfirmationInspection Item Method Inspection

FrequencyMaterial ordering confirmation (typically 3 months prior to receiving)

Comparison of MSA/Purchasing order to most current drawing specification

Each material order

2. Material Inspection




Inspection Item Method Inspection Frequency

Receiving Inspection Material certification sheet must be confirmed to the coil specification and the material order at receiving. The supplier must keep a copy of the Material Confirmation Sheet on file.

Per coil

Confirmation of material type, mechanical properties, grade, thickness, width, and coating weight. (Coating weight if applicable.)

Confirmation to be done prior to each stamping production run and the results must be documented. Hardness testing may be used as a method of inspection for material type confirmation.

Per coil

3. Stamping and Blanking Process Set up

Inspection Item Method Inspection Frequency

Process Control

Supplier must have a documented press and tool (die) set up procedure. Set-up results and die condition results must be documented. (e.g. Shut height, lead check results, cushion pressure, poke yoke, etc).

At each production run start-up

4. Process ControlInspection Item Method Inspection

Frequency

Poke YokePress and tools (die) must have “Poke Yoke” systems to detect press and tool malfunctions.

At each production run start-up

Approved Lubrication All lubricants must be approved by customer to prevent contamination to customer’s paint system.

As negotiated during New Model timing or when a lubricate changes is made per SQM procedures.

Excessive Lubrication Finished product shall not be stored or shipped with excess lubricant that ma lead to a safety or quality concern.

100%

Rust Preventative

Finished product must be shipped and received at customer free of rust and contamination. If a used preventative is used, Honda must approve.

100%

Traceability Supplier must have the ability to provide lot traceability from the finished product back to the material heat number.

Per Supplier Quality Manual




Minimum Process Requirement

Stamping Minimum Process Requirements (continued)

5. Quality ConfirmationInspection Item Method Inspection

FrequencyDimensional Check (i.e. CMM, Inspection fixtures, and/or other

inspection tools) Part inspection data must be documented and kept on file. Additional confirmation required during abnormal situations.

Quality checks must be done at the beginning and end of each production run or as negotiated during New Model.

Wrinkles, folds, cracks and an other detrimental defects called out on the Honda drawing.

Visual verification for folds, cracks, necking. Wrinkles in non-mating and non-critical areas may be allowed on after prior approval by Honda (Limit sample)

100% unless otherwise negotiated with customer.

Burrs must meet the specifications identified by the drawing unless otherwise specified by Honda.

Visual verification for burrs. 100% unless otherwise negotiated with customer.

Material thinning not to exceed 25% from nominal material thickness unless otherwise specified by Honda.

Dimensional data. (identified in HES) 100% unless otherwise negotiated with customer.

Controlled Master Part Supplier must maintain a master part that meets the drawing specifications. A new master part is required if a design e occurs that alters the part characteristics. Master part shall reflect part name, part number, design change level, and date of approval.

100% unless otherwise negotiated with customer.

Marker Check Inspections All markers must be approved by customer for compatibility to customer’s paint system, before use on metal parts, prior to e-coat.

100%

6.0 Quality Assurance Systems Timeline

Supplier agrees to perform or participate in, whichever is indicated, each element of the Quality Assurance System provided for in this agreement in strict accordance with the timeline set forth in the QA System schedule, attached hereto and made part hereof.

Supplier shall reference (SPQD # 0018) for the Quality Assurance System schedule.




6.1 Quality Regulation RevisionsAny changes or modifications to this agreement will be posted on the website. It is the responsibility of supplier to periodically review and ensure compliance. This agreement is subject to the Agreement and General Terms and Conditions separately executed by Customer and Supplier (the "General Contract"). In the event of any conflict between this Agreement and the General Contract, the terms of the General Contract shall control.

Reference Documents

SPQD # 0001 Cost RecoverySPQD # 0002 SAPSPQD # 0003 TMRSPQD # 0004 PQCTSPQD # 0005 FMEASPQD # 0006 PLCSSPQD # 0007 QLVSSPQD # 0008 QASTSPQD # 0009 QAVSPQD # 0010 QAVASPQD # 0011 IPPAARSPQD # 0012 CARSPQD # 0013 5PSPQD # 0014 CMREFSPQD # 0015 WaiverSPQD # 0016 SQRSPQD # 0017 IPPSPQD # 0018 Quality Assurance System F-8500-034 Customer Attach Point Guarantee

SPQD # 0019Supplier Failure Analysis Minimum Requirement Check Sheet




6.2 HISTORY OF REVISIONS

# DATE REVISION CONTENTSSECTION REVISED

6001 Mar-99 DOCUMENT RETENTION

0,1,3, RESPONSE

SUPPLIER QUALITY RATING

CHANGE C.A.R. FORMAT

PUT SPQM INTO M.S. WORD ALL

6002 Apr-01 Change CMREF requirements 3.2

Added approved source reference 3.3

Add yellow "IPP TAG" sticker 4.0

Change AIPP to IPPAAR 4.0

Transportation rank - B to A 4.4

IPP tag & sticker order reference 4.0

New corrective action request Page 38

Rev A May-08

Changed manual for easy flowand understanding / with supplier document forms updated to reflect manual. All Pages 1 - 16

Add ( MPR) Minimum Process Pages 17 - 42

Requirements)

Removed Supplier Acknowledgment form

Rev B Nov-10 Add T1, T2, T3 requirements Page 6Add Customer Attach Point 100% Guarantee requirement Page 6Add Supplier Failure Analysis Minimum Requirement Page 9

Updated Reference Document section


supplier parts quality manual

Documents

quality system requirements

quality agreements

quality waiver103

items of quality assurance

supplier escalation

quality assurance visit73

advanced quality planning43

advance supplier assessment73