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GP-01-7.4-0007 | REV. 7

QUALITY ASSURANCE MEASURES FOR

PROCUREMENT OF PURCHASED
PARTS
INTRODUCTION
This procedure is external document provided to our suppliers.

The aim of defined requirements is to ensure that new and change projects are carried out on schedule
and without any quality problems. Excelling in the automotive market while attaining growth requires
investment and continual improvements of quality and delivery along with rapid and flexible reactions to
change. Core principle of Vibracoustic is a Zero- D e f e c t strategy that protects customer satisfaction.
This strategy is only attainable with the active co-operation of our suppliers.

This procedure must be implemented and followed consequently for each project.

This Global Procedure is part of the framework contract with the supplier. Deviations from the defined
procedure must be agreed to in writing between VC and the supplier. The existing procedure
specification identifies the minimum requirements for the secure handling of new projects and series
production orders. In addition, the supplier must commit to employ suitable procedures and measures
which ensure that the work/product satisfies the requirements regarding quality, cost, and timely targets.

4.2.1 PSB 4.8 Responsible Sourcing, 4.18 Series

12, 18, 21, 22,
7 06.05.22 Production, 4.19 Quality Performance, 4.20 Quality
23
Escalation Process,
3.1 Special Characteristics definition, 4.1 SQMS chart
revised 4.2 Certification management, 4.3 TES is
6 17.07.21 5,8-12,14,18
included, 4.13 SW Quality req. 4.15 Capability req., 4.17
supplier change request, 5. RACI matrix updated
5 19.12.19 1-30 Chapters 4.2, 4.13, 4.15, 4.16.1, 4.16.2, 4.16.11,
4.16.14,
4 29.11.17 1-29 QM system requirements, CSR, general revision, Safety
Critical Characteristic, SQMS chart, PPAP list, Tooling
info, Traceability and RACI
3 06.09.16 23, 26 Quality escalation level, supporting documents, RACI
2 10.12.14 5 Emphasis Characteristics added
1 11.12.13 23 Rules for finishing 8-D-Report
Page(s) /
Rev. Date Modification notes
Chapter(s)

Changes related to the latest revision will be identified in blue.

Department Date
Producer SCM 17.06.2022
Approval Process Owner SCM 17.06.2022
Approver Management System QM 31.08.2022
Approver Management Board
- 03.04.2023
(Global Procedures only)

This document is valid without signatures.

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TABLE OF CONTENTS
INTRODUCTION 1
1. PURPOSE 4
2. SCOPE 4
3. TERMS / DEFINITIONS / ABBREVIATIONS 4
3.1 Definitions 4
3.2 Abbreviations 6
4. PROCESS / METHOD / PROCEDURE 8
4.1 SQMS Supplier Quality Management System 8
4.2 QM-system 9
4.2.1 Product Safety Representative 9
4.2.2 Qualification of Special Processes – CQI 9
4.3 Contract Review 10
4.4 Control of documents 10
4.5 Customer Specific Requirements (CSR) 10
4.6 Control of materials and packaging provided by VC 10
4.7 Environmental protection 10
4.8 Responsible sourcing - Conflict Minerals and Cobalt Commitments 11
4.9 Audits 11
4.10 Staff 11
4.11 Equipment 11
4.12 Qualification of sub-contractors 11
4.13 Safety data sheets / Processing instructions 11
4.14 Software Quality Requirements 11
4.14.1 Software Development 11
4.14.2 Software Flashing 12
4.14.3 General Requirements 12
4.15 Advanced Product Quality Planning (APQP) 12
4.15.1 Control Plan 13
4.15.2 Process Flow Chart 13
4.15.3 Process-FMEA 13
4.16 Supplier Run@Rate 14
4.17 Production Part Approval Process (PPAP) 16
4.17.1 Requirements for series production release 16
4.17.2 Production Parts Approval 18
4.17.3 Tooling information 18
4.18 Series production 18
4.18.1 Test records 18
4.18.2 Early Production Containment (EPC) 19
4.18.3 Requalification Test 19
4.18.4 Zero defect – continuous improvement process 19
4.18.5 Traceability 19
4.18.6 Identification of containers, delivery notes, labelling and transport orders 19
4.18.7 Packaging 19
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4.18.8 Receiving inspection by VC 20

4.18.9 Non-conforming parts 20
4.18.10 Settlement of cost 20
4.18.11 Permission for deviation 20
4.18.12 Subcontractor 20
4.18.13 Safety critical characteristic 21
4.18.14 Investigation of field parts 21
4.19 Quality Performance 21
4.19.1 Supplier Score card 21
4.20 Quality Escalation Process 22
5. Counterparts in VC 24
6. APPENDIX / ENCLOSURE 24
7. FURTHER REFERENCE DOCUMENTS 25
7.1 Supporting documents 25
7.2 Supporting documents for compound suppliers only 25
7.3 Additional Information 25
8. DOCUMENTATION 25

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1. PURPOSE
In this procedure the procurement and quality assurance of purchased parts of production material
for all VC companies is specified. Thereby we want to ensure that
 New products are launched on schedule and without any quality problems
 Quality problems are identified, and robust solutions implemented prior to series production
 Quality capability of processes are evidenced at series approval and during series production

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

3. TERMS / DEFINITIONS / ABBREVIATIONS

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

Initial Samples

Initial samples of finished product produced with the planned equipment, procedures, manufacturing
staff, materials, and semi-finished products exclusively for series production. They are used for Production
Part Approval Process.

FMEA
Failure Mode and Effects Analysis

This method is described in VDA volume 4, part 2 resp. and the AIAG reference manual. OEM specific
FMEA- requirements (i.e., Ford – FMEA) must be met by supplier.
Supplier
The term “supplier” refers to production facilities in this GP, not to trade organizations. Therefore,
an “Approval of Suppliers” always applies correspondingly to the audited production site only, not to
the general trade organization.
Sub-Contractor

The sub-contractor delivers to the supplier products or labour which have an effect to the products
of VC. The supplier guarantees the sub-contractors’ quality.

Sub- Customer
Supplier VC
Contractor

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Production Trial Run (PTR)

Within the PTR, the systematic analysis of the first production lot (first batch) should be analysed
systematically to guarantee the early and systematic process optimization and do not require the complete
planned series process.
Supplier Run@Rate (SRR)
Supplier Run@Rate serve as verification of processes and products. Parts must be manufactured with
operating supplies used for series production over an extended period of time (at least 300 parts or 1
shifts). With this milestone the production process will be technically evaluated (scrap, capacity) and the
necessary production documents checked. If manufacturing is not possible under series conditions, the
status must be communicated to VC and its effect on series production needs to be assessed.

Special Characteristics
Significant and critical characteristics are designated in the drawings using the following acronyms:

- Critical characteristics (Safety Relevant) = CC

- Significant characteristic (Fit & function) = SC

- Emphasis Characteristic = EC

Requirement for Ppk, Cpk value may be higher as per specific Customer Requirement.

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Production Part Approval Process (PPAP)

The process is designed for following purpose:

 to ensure that a supplier can meet the manufacturability and quality requirements of the parts
supplied to VC
 to provide evidence that the VC engineering design record and specification requirements are
clearly understood and fulfilled by the supplier
 to demonstrate that the established manufacturing process has the potential to produce the
part that consistently meets all requirements during the actual production run at the quoted
production rate
OEM specific requirements (PPAP acc. AIAG resp. EMPB acc. VDA2) must be met by supplier.

3.2 Abbreviations
AIAG Automotive Industry Action Group

APQP Advanced Product Quality Planning

BU Business Unit

BUM Business Unit Manager

CM Commodity Management

CQI Continuous Quality Improvement

CSR Customer Specific Requirements (requirements created by VC customers)

DV Design Verification

EMPB Erst Muster Prüf Bericht (German)

EPC Early Production Containment

GP Global Procedure

HIS Herstellerinitiative Software (German) / Manufacturer-initiative Software

IMDS International Material Data System

IR Inspection Report

ISIR Initial Sample Inspection Report

MSA Measurement System Analysis

QMS Quality Management System

QM- Site Site Quality Manager

PG Product Group

PQE Preventive Quality Engineer

PSB Product Safety Representative

PSCR Product Safety and Conformity Representative

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PPAP Production Part Approval Process

Ppku Ppk (upper specification limit)

Ppkl Ppk (Lower specification limit)

PTR Production Trial Run

SDE Supplier Development Engineer

SPC Statistical Process Control

SOP Start of Production

SQA Supplier Quality Assurance

SQMS Supplier Quality Management System

SPM Supplier Preparation Meeting

SRR Supplier Run@Rate

STA Supplier Technical Assistance

SW Software

TES Technical Engineering Standard

VC Vibracoustic

VDA Verein der Deutschen Automobilindustrie (German)

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4. PROCESS / METHOD / PROCEDURE

4.1 SQMS Supplier Quality Management System

The Supplier Quality Management System (SQMS) of VC defines the supplier selection process, the
supplier development standards, and activities, as well as the specific requirements of the automotive
industry.
The SQMS is fundamentally divided into 4 phases:

Phase 1 = Supplier assessment and approval of new suppliers

Phase 2 = Supplier Industrialization
Phase 3 = SQA Series production

Phase 4 = Supplier Development

The procedure exclusively defines the APQP requirements to suppliers for purchased and serial production.

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Supplier Industrialization

4.2 QM-system
Certification of QMS according to ISO 9001 by accredited body is the minimum requirement for all VC
suppliers.
VC requests suppliers of productive parts and services to implement their QMS certified IATF 16949.
Those suppliers not yet certified to IATF 16949 must show plan to achieve this certification.

The requirements for error proofing and inspection of production parts must be fully implemented for all
VC products. The supplier must also incorporate any relevant VC / Customer Specific Requirements (may
be provided by VC upon request) into its QMS system that refers to the specific product or service.
The supplier must inform VC immediately if the certificate has been revoked, placed on suspension, or
expired without successful recertification.

After successful recertification, new certificates must be shared with VC electronically using VC
communication platform “LiveSource”

4.2.1 Product Safety Representative

If requested by CSR, the suppliers must provide the PSCR certification using VC communication platform
“LiveSource”.

4.2.2 Qualification of Special Processes – CQI

CQI guidelines are published by AIAG and available on www.aiag.org.
For suppliers dealing with special processes according to AIAG, relevant CQI guidelines must be
considered.

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The CQI self-assessments must be performed at least annually. The cover sheet and action plans to
address gaps must be shared with VC electronically via VC communication platform “LiveSource”.

4.3 Contract Review

The supplier is required, at the quotation stage as well as in the order phase, to check documents
placed at its disposal for completeness, correctness, freedom from contradiction, ability to meet the
required quality and production capability (ability to manufacture, adherence to target dates etc.).
The supplier indicates to VC 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 must ensure that processing is done according to current
versions of following documents:

1. Generally accessible guidelines/ standards (e.g., DIN, ISO, EN and ASTM-

Norms) must be provided to confirm positions.

2. Guidelines/standards and documents of VC. These will be available on VC

communication platform “LiveSource”

3. Technical engineering standards. These will be available on VC communication

platform “LiveSource”, e.g.: TES-50400 M04_HPDC Process Requirements.

4. CQI standards

5. Customer specific requirements (CSR), Guidelines/standards of VC customers

4.4 Control of documents

The supplier must produce, check, and deliver to the current valid version. Documents from VC and its
customers must be treated as confidential. Forwarding to a third party is permissible only after consent
in writing from the relevant purchasing department of VC. Archiving periods are per OEM´s customer
specific requirements (CSR). For CSR´s see section 4.5.

4.5 Customer Specific Requirements (CSR)

Suppliers are expected to comply with specific requirements of VC customers.
For CSR´s refer to:
www.iatfglobaloversight.org

www.vda-qmc.de

The supplier is responsible to maintain and revise their system to the latest customer standards.

4.6 Control of materials and packaging provided by VC

The supplier must conduct a receiving inspection on materials and packaging delivered for quantity,
identification, and visible damage. The consumption of delivered articles must be recorded on the delivery
documents and the responsible purchasing/logistic department notified.

4.7 Environmental protection

The supplier must ensure that all materials used in production meet the valid, legal requirements for
restricted, poisonous, and hazardous materials. In addition, regulations for environmental protection must

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consider the country of manufacture and the customer. Customer Specific Standards and Requirements
must be considered for the specific process and product.

4.8 Responsible sourcing - Conflict Minerals and Cobalt Commitments

The supplier must be compliant with Vibracoustic Policy “01_12.8_0083_Responsible sourcing of
Minerals_Substances_Raw Materials” (available under www.vibracoustic.com/downloads)

4.9 Audits
The supplier must audit its QM-System at regular intervals for effectiveness and compliance to the
requirements described in this procedure. VC is entitled to carry out – if necessary, with the customers,
audits at the supplier and at its sub-contractors – after appointments are made. The supplier must support
VC in carrying out the audit into the required procedures, data, and records for analysis of the Quality
Management System. VC will maintain the supplier’s confidentiality.

4.10 Staff
The supplier must demonstrate that all employees who work in the areas of planning, production and
inspection are qualified.

4.11 Equipment
The supplier must ensure that suitable test equipment for carrying out inspections defined in drawings
and its referenced documents are available and that the equipment is maintained in proper condition. The
suitability of inspection equipment, which is used for testing important characteristics, is to be verified
and records retained (AIAG MSA Manual or VDA Manual 5).

4.12 Qualification of sub-contractors

VC may provide approved sub-contractors. The supplier is responsible for selecting suitable sub-
contractors when VC does not assign one. Regardless, the supplier must evaluate the quality efficiency
of his sub-contractors and adequately integrate them into the APQP process. The Production Parts
Approval Process (PPAP) must be fully applied at sub-contractors. The supplier must ensure that sub-
contractors refer to 4.17.13 requirements of this procedure. In any case, the supplier is responsible for
the entire quality performance of the sub-contractor.

4.13 Safety data sheets / Processing instructions

Where applicable and without being solicited, the supplier must provide complete and up-to-date safety
data sheets and process instructions before supplying product.

4.14 Software Quality Requirements

If the supplier is developing and/or flashing software for/to VC components, following quality measures
need to be respected:

4.14.1 Software Development

The supplier must present the Supplier self-assessment (LiSA) according to HIS standard.
In case the suppliers’ part includes software, the software development shall comply with A-SPICE or
comparable. The supplier must support an assessment with an assessor nominated by VC.

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In case the supplier part includes safety related software, the software development must comply with
ISO 26262.
The target for the capability level must be agreed with the responsible SQATC/ PQE during nomination
phase. Recommended minimum is level 2 (managed) or higher as per Customer Specific requirements.

4.14.2 Software Flashing

The correct transfer of the software between supplier and VC must be verified by check sum control.
The supplier must ensure that only the latest and approved SW is used in production.
For serial production, the supplier needs to ensure and prove that the supplier’s tools chain used for
flashing fulfils the level of confidence in the use of tools requested by ISO26262.

4.14.3 General Requirements

For suppling hardware (from inhouse production) plus software to VC, the supplier must have a valid
IATF16949 certificate (that includes SW development).
In case supplier is only programming software, the organization should follow IATF MAQMSR approach.
In case of CC of functional characteristic, a 100% functional end of line test must be performed.

Depending upon individual usage of the component there can be additional quality requirements from VC.
All requirements from specification or drawing needs to be respected.

4.15 Advanced Product Quality Planning (APQP)

The supplier must utilize measures and procedures which ensure that the details of the contract, without
any deviations in respect to quality, target dates or work volume, are met.
It is recommended to use the AIAG/VDA procedure.

A project time schedule must be created with consideration for the following items:

1. Milestones such as:

 Design validation including prototype delivery and testing; only if applicable.
 Supplier Process design review: Revision of tool design and project maturity before tool production.
F0-01-7.0-0217 to be submitted by supplier.
 Supplier process readiness: To be performed after first PTR. Possibility to produce, defect rate, status
of equipment etc. FO-01-7.0-0237 to be submitted by supplier.
 First off tool parts delivery
 Run@Rate: see chapter 4.15
 PPAP submission: PPAP samples delivered and required documentation uploaded to VC
communication platform “LiveSource”
2. Individual measures such as:
 production equipment and production tool planning
 procurement of purchased ancillary items
 Development of the Process-FMEA
 Development of a control plan for prototype, pre-series, series
 Production Trial Run
3. Responsibilities

Responsible persons must be listed by name and contact data (phone, mobile, email)

4. Start and end date of individual activities

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Project schedules should be structured in suitable format (e.g., MS-Project, etc.).

4.15.1 Control Plan

All controls for product and process characteristics, test equipment, testing intervals, test volume, form
of the records and reaction plan must be defined for pre-series and series production.
The Control plan must reflect the entire process chain of contracted part-number, including outsourced
processes. The Control plan of the subcontractors must be provided to VC upon request.
All Control Plans must have a yearly re-qualification requirement, and the supplier must have the
information available for VC upon request.

Control plan pre-series:

Suppliers should utilize an Early Production Containment Plan (EPC) (see enclosure. Nr.2)
Control plan - series:
The series control plan contains all tests and process controls from receiving inspection of parts from sub-
contractors to supply VC as well as the scale of requalification tests.

Revision of the control plan:

The production control plan, which is approved by VC within the EMPB/PPAP procedure, is binding for the
entire lifetime of the product. Changes, which are relevant for method and scale of inspections, must be
approved by VC prior to implementation. In case of a loss of quality or product risks and process risks not
defined by the approval time, VC reserves the right to amend the QM schedule corresponding to needs.
Form and content of control plan:

Content of control plans must be adopted according to the regulations of IATF 16949 latest revision, or
AIAG.

4.15.2 Process Flow Chart

A process flow chart must be compiled for the whole manufacturing process. The process flow chart must
be sent to VC as part of PPAP package. The process flow chart must reflect entire process chain of
contracted part-number, including outsourced processes.
Process flow chart must be submitted with every supplier final offer to VC. Draft may be accepted at this
time.
Remark: The process number sequence must be the same through all documents (Flow,
Control plan, FMEA)

4.15.3 Process-FMEA

The Failure Mode and Effects Analysis must be carried out before series production as a method of
proofing. To minimize potential cost and conduct appropriate corrective actions if needed, the FMEA
should be developed at the earliest possible time in the APQP process.
PFMEA must reflect entire process chain of contracted part number, including outsourced processes.
Method and formal structure must correspond to VDA 4, Part 2. OEM specific FMEA requirements (i.e.,
AIAG FMEA manual, Ford FMEA ranking system) must be assured by 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 the FMEA must
be provided for review or presented at VC site.
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4.16 Supplier Run@Rate

A supplier Run@Rate should consist of at least 300 parts or one shift of uninterrupted production.
However, VC may change the length depending on several factors: product complexity, cost, production
day length, previous history of similar product, processes, application, or supplier history. The supplier
Run@Rate run is to manufacture under series production conditions (staff, material, machine, tools etc.).

Before series production the capability of important features must be proved during supplier Run@Rate.
The VC approved methods, processes and materials mentioned below must be used for this evaluation.
Supplier Run@Rate is performed in the following ways:

 Self-Run@Rate process audit according to FO-01-7.0-0103-Run@Rate Suppliers-full audit

questionnaire
 VC or external auditor will perform the Run@Rate audit at the supplier (upon VC request), according
to FO-01-7.0-0103-Run@Rate Suppliers-full audit questionnaire

Method for capability evaluation:

‘Zero defects strategy is only possible with controlled quality – efficient processes’

Process analysis before SOP Process analysis after SOP

Start of production (SOP)

Application to the evaluation: Application to the evaluation:

• new equipment at the manufacturer • the running series production
• new equipment after installation in the defined process
• before final approval of the series production

Machine Performance Preliminary Process Long-term Process Capability

Performance

Continuous quality improvement

Process

Man Man
Material Material
Method Method
Environment Environment

Machine Machine Machine

50 5 5 … 5 5 5 5 … 5 5 …
Time

Minimum 50 parts or process- Minimum 125 parts or process- An appropriate period under
oriented extent oriented extent. The 125 parts normal series conditions in which
should ideally be done in 25 it is assured that all influencing
samples; 5 parts spread over the factors could become active.
lot Indicative value:
20 production days/lots
Pm, Pmk Pp , Ppk Cp, Cpk

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Machine Performance
The study of machine performance determines the suitability of the manufacturing equipment for
production task.
Sample size: At least 50 parts from continuous production run in an uninterrupted sequence must be
measured.

Machine performance (Pm, Pmk): A machine performance of Pm, Pmk ≥ 1,67 for significant characteristics
is required (or higher as per specific Customer Requirement).

Note: [ISO 22514-3] uses the indices Pm & Pmk in place of Cm & Cmk, denoting Machine Performance.

Preliminary Process Performance

Preliminary process performance is determined on one lot (pre-series/production trials), providing only
an initial assessment where systematic influences between the individual lots (human, material, etc.) are
not taken into consideration.
Sample size: At least 125 parts must be sampled over the entire pre-series production lot and tested.
If the tools have more than one cavity, an equal distribution of all cavities must be assured.
125 samples = 25 subgroups of 5 parts. We recommend the following rule for sampling as preliminary
study.

Collect 5 parts, skip 5 parts, collect 5 parts, skip 5 parts, etc.... In cases of multiple cavities, we accept 125
samples for 1 feature if samples from all cavities are randomly selected. If capability is not OK, supplier
demonstration of capability per cavity is acceptable. All distributions must be normal (and process data
is statistically in control and stable).
Samples Records: Individual values must be recorded (test records) and may be viewed by VC upon
request.

Preliminary process performance (Ppk): To fulfil the demand for a “Zero Defect Objective” a Ppk>1.67 for
significant characteristics is required (or higher as per specific Customer Requirement).

Example for Ppk requirement:

Process meets requirements in pre-series. Process probably meets
Pp and Ppk > 1.67 requirements in series production.

Process does not meet requirements

Ppk < 1.67 Measures:

Characteristics must be 100% inspected
Optimize process to Ppk > 1.67

Ppk = smaller of the values Ppku and Ppkl

Capability Records: The preliminary process capability study is part of the production parts inspection
procedure as per AIAG – PPAP and VDA 2 and must be submitted to VC as part of PPAP package.

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Long Term Process Capability

The results of the long-term study during series production reflects the real capability of the process. Here
all influencing factors become active and it must be possible to detect their effects on the manufacturing
process. The process capability must be constantly monitored and documented in running production.
Sample size: At least 125 parts with 25 subgroups of 5 parts over a sufficiently long period of time (e.g.:
20 production days / lots)

Process capability (Cp, Cpk): An ongoing process capability of Cp, Cpk ≥ 1.33 for significant characteristics
is required (or higher as per specific Customer Requirement).

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.
If process capability cannot be reached a reaction plan must be agreed upon with VC Supplier Quality.

4.17 Production Part Approval Process (PPAP)

Through the P roduction Parts Approval Process (PPAP) it should be proved whether the product can
be reliably manufactured within the defined properties or not. The approval process can be carried
out in different ways depending on product and project risk. Depending on the Risk Assessment results,
Vibracoustic determines the supplier deliverables for the supplier PPAP approval:

1 Step PPAP requires the Standard PPAP elements as mentioned into 4.16.1. The supplier produces the
defined PPAP documents and delivers them to VC together with the PPAP samples. The series release
(PPAP Approval) is given after receiving correct and complete PPAP reports and approving the
dimensional and functional characteristics.
2 Step PPAP requires a supplier Run@Rate audit on site performed by VC staff or an external agent.
The series release (PPAP approval) is given after the supplier receives the approval of successful
Run@Rate audit using ‘FO-01-7.0-0103 Run@Rate Suppliers on site’ and after receiving correct and
complete PPAP reports and approving the dimensional and functional characteristics.

Supplier is notified if a 1-Step or 2-Step PPAP is required including necessary documents prior to or with
the PPAP purchasing order.
For critical or safety critical purchased parts (cc = critical characteristics) the 2 step PPAP
is mandatory.

4.17.1 Requirements for series production release

The submission or evidence of the following measures and results are required for release of
production parts. Less requirements might be defined by SQA.

Submission Provided by

Process Flow Chart Supplier

FMEA Supplier

Vibracoustic drawing Mapped/Ballooned Supplier

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Control Plan
Supplier
Early Production Containment Plan

Measurement System Analysis (MSA, Gauge R&R) Supplier

Supplier Dimensional report (Vibracoustic Print Mapped/Ballooned with Results) Supplier
Records of Material/Performance Test Results
(Material certification, corrosion testing...) Supplier

Initial process studies for CC, SC, and EC characteristics: Cp, Cpk / Pp, Ppk. (Recorded in FO-
Supplier
01-7.3-0216)
Master samples (min. one sample/cavity, min. 2 pcs stored at
Supplier
supplier location for entire project life)

PPAP samples (1 per cavity, min. 6 samples; marked; with single measurements results) Supplier

300 pcs for PTR delivered. Delivery marked with PSW cover sheet Supplier
Run@Rate audit (Supplier)
Supplier
(Full audit including capacity analysis using FO-01-7.0-0103)

Run@Rate audit (VC)

VC
(Full audit including capacity analysis using FO-01-7.0-0103)

Packaging Agreement (Shipping Standards) Supplier

IMDS Supplier
Approval of sub-suppliers - PSW/EMPB
(FO-01-7.4-0335_ Sub-Supplier-Tree) Supplier

Part history sheet Supplier

Photographs of tools including gages and assembly equipment Supplier

Vibracoustic dimensional report VC

Successful Production Trial Run, assembly of product at VC VC

Part Submission Warrant PSW/EMPB Supplier

Delivery approval PSW/EMPB VC

Others
e.g.: Documented approach for warranty analysis (for functional components), Software Supplier
specific deliverables, Appearance approval report, Archiving plan for safety parts, etc.)

Notes:
Part submission Warrant: In cases where the customer requires his own forms for supplier PPAP, the
required forms must be used.
Dimensional Results: Measurement results must be assigned to the individual parts
PPAP documentation must be sent to VC through VC communication platform “LiveSource”. The delivery
of PPAP samples must be clearly labelled as PPAP samples, separated from the series delivery.

Each pallet to be marked with “FO-01-7.4-0146-Shipment Marking Triangle”.

PPAP samples may not be packed together with series parts at any time.

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4.17.2 Production Parts Approval

No series parts may be supplied to VC before approval. Permission regarding deviations (enclosure
Nr.7) will be granted should series deliveries be needed for reasons of timing (see Item 4.17.11).

4.17.3 Tooling information

A tooling data sheet with detailed tool lists and related information such as tool type, number of cavities,
tooling concept, dimensions, tool life, capacity, machine data etc., along with photographs of the tool tag,
the entire tool in open position – visible cavities/form must be provided by the suppliers to VC in the
format requested by VC. Points to note here are:
1. Vibracoustic (or Customer) paid for tooling must be identified as per Vibracoustic or customer specific
instructions.
 Detailed instructions for individual customers are available upon request (contact assigned SQA).
 Check customer specific submission requirements before submitting photos.
 Any photos that do not follow customer specific requirements or are not clear/legible will not be
accepted.
2. Details described in point 1 must be submitted for every single tool or fixture.

4.18 Series production

The supplier must keep latest PPAP approval condition such as described in 4.16.
Any proposed changes must be notified to VC in writing min. 3 month in advance using the form
FO_01_7.4_0300 (Supplier Change Request). This must be submitted to the program buyer, to be
championed on the VC side. Without this formal request from the supplier no change will be considered
or allowed until the supplier has an approved Supplier Change Request. This approval must be obtained
before start of implementation of the change. The responsible SQA of receiving plant will determine the
necessary requirements and PPAP documentation to be provided for approval.
3 months is minimum period until start of change implementation. The final approval of change might
take longer depending on necessary functional validation, PPAP requirements or CSRs.
Any cost impact related to the changes (testing, PPAP to customer …) may be charged back to the
supplier.

The Production Parts Approval Process (PPAP) must be carried out by the supplier in the following
cases:
 new project / sampling (repeated sampling)
 amendments to product design / material
 changes in production process
 transfers to other production locations
 transfer of lines in the same production site
 use of new tools and cavities
 use of different machine
 use of new suppliers
 interruption in production for longer than 12 months
 additional IATF and Customer specific requirements to be considered

4.18.1 Test records

The supplier must maintain production records as described in the control plan. These test records must
be assigned to individual production batches. Test records must be archived for at least 5 years after
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end of production (or according to specific requirements of VC customers, legal requirements). Test
records of safety parts (A-Parts) must be kept for a period of 15 years after end of production. Test
records must be available for review at any time by VC.

4.18.2 Early Production Containment (EPC)

Suppliers must install the Early Production Containment Plan for all pre-production deliveries and for the
production ship quantity and duration specified by EPC guideline. Minimum qty. is 10 X daily production
volume calculated from average weekly demand. Suppliers must follow VC EPC guideline OPI-01-7.4-
0015. EPC results are to be recorded in FO-01-7.4-0149.

4.18.3 Requalification Test

An annual requalification is required. The requalification includes functional testing required on the
drawing, a full dimensional layout, capability analysis and material certification consistent with records
submitted at PPAP. Recent test / capability data and layout results are acceptable.
As per 4.14.1, yearly requalification must be mentioned into the control plan.

4.18.4 Zero defect – continuous improvement process

To minimize quality risk and to avoid waste (scrap, rework, test expenditure, etc.), the supplier evaluates
process and product on a regular basis and introduces measures for continual improvement.
The quality objective for all suppliers is „Zero Defect”. Each supplier is expected to develop necessary
actions in order to achieve this „Zero Defect” target.

VC conducts supplier performance evaluation on regular basis. Results from the evaluation will be used
as a basis for escalation or development activities.

4.18.5 Traceability
Suitable identification systems must be applied. The test results of a part must be traceable. The batch
nr. and production date must be noted on the delivery note. Supplier must be able to trace back the
following information for the produced parts:
 VC Part number
 Drawing index
 Production Date / Production Batch
 Production Line / Machine
 Material Batch
During production, the following must be secured:
 FIFO (First-in First-out)
 Identification of part status (Finished/unfinished, checked/not checked; OK/NOK)

4.18.6 Identification of containers, delivery notes, labelling and transport orders

The supplier’s packaging must be clearly identified with the correct and legible material tag.

Detailed requirements for Delivery notes and transport orders are also described in VC General
Procedure (GP-01-7.4-0009).

4.18.7 Packaging
Packaging of products must be agreed by VC and documented as part of the PPAP records. This should
comply with the overall Logistics requirement for suppliers.
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4.18.8 Receiving inspection by VC

VC does not conduct receiving inspection of characteristics that the supplier is contracted for. Only product
identification, shipping documents, and transport damage is reviewed. In any cases, Supplier liability of
defective goods remains according to VC general terms and condition of purchase.

4.18.9 Non-conforming parts

Should faulty parts be found at delivery and/or in production process, it may result in the return of the
entire delivery. As soon as the supplier is notified, the supplier is obligated to ensure no further defective
parts are delivered, by establishing containment activities. Stocks of finished parts must be inspected or
replaced with certified material and corrective actions initiated.
The supplier is required to inform VC immediately when faulty products have been released for delivery.
VC reserves the right, in case of a line stop to directly arrange inspection and rework, and to charge any
expenses incurred by VC to the supplier if the supplier fails to respond to VC within 1 hour. For each
complaint, the supplier will receive a notification. The 8D methodology is required utilizing VC’s
communication platform “LiveSource” for documenting the corrective actions. A Problem-Solving-Process
sheet (FO-01-8.5-0160-PSP-Supplier available on “LiveSource”) must be used and submitted to VC for
repetitive complaints and complaints from VC customer. For any other complaints PSP must be used on
VC request.

The containment action must be submitted to VC within 24 hours. The permanent corrective action must
be completed within 10 working days after the initial notice. Extra time is possible when a defect sample
part is necessary for carrying out the root cause analysis but is not available.

The risk analysis (FMEA) must be reviewed as part of the corrective action. Additional analysis and
documentation may be requested by VC based on the severity of the non-conformity.

4.18.10 Settlement of cost

VC reserves the right to charge verifiable complaint related cost incurred, back to the supplier. Refer
to LI-01-7.4-0016 (available under www.vibracoustic.com/downloads).

4.18.11 Permission for deviation

VC may grant deviation to certain process / product requirements when the deviation does not violate
VC’s customer requirements, affect durability, nor any governmental / regulatory requirements. Supplier
request the deviation using the form mentioned in enclosure Nr.7. Any deviation will be limited in scope,
duration and/or quantity and the appropriate deviation form shall be fully signed and approved. Product
shipped under a deviation must be keep separate and clearly identified in delivery. Every rework process
of parts must be released by permission of deviation.

4.18.12 Subcontractor

For series deliveries it is only allowed to consider subcontractors, whose parts have been used for PPAP
to VC. The Subcontractor must submit a PPAP to the supplier and the supplier must evaluate and
release it before submitting the whole PPAP to VC. A change is only allowed after submission of new
sample parts to VC (see 4.16. PPAP). For the new sampling it is only allowed to use approved
subcontractors.
For a subcontractor change during serial production VC must be informed in advance (see 4.16. PPAP).
The order to the subcontractor is only allowed after written agreement by VC. A delivery to VC is only

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allowed after full approval of PPAP by VC. In the case of a supplier change for safety critical purchased
parts an intensified PPAP is mandatory.

4.18.13 Safety critical characteristic

Safety critical characteristics comprise in case of deviations a risk for life and limb.
Safety critical characteristics must be 100% insurable. Sampling inspections are not sufficient. For the
safety critical characteristics which can be tested via destruction only, (e.g., the compression test for
metal parts) one adequate sample control per load is sufficient. However, test method and sample rate
must secure 100% conformity of critical characteristic. It must be ensured, that the purchase parts will
be delivered via traceable batches without exceptions.
The quantity and frequency of testing defined in the control plan must be agreed with VC in separate
process before PPAP submission. A member of the engineering as well as quality department of the
supplier should participate in this agreement.
The supplier must assure customer specific requirements related to Safety Critical features are followed.
The fulfilment of the safety critical parts features must be documented completely (e.g., by a supplier
certificate for each batch sent with the delivery). In case of no special agreement, the supplier must be
able to send the documentation by request on the same day.

4.18.14 Investigation of field parts

In case the supplier delivers functional components or products (e.g., bearing, damper, electrical
components . . .) to VC, the supplier must establish process for field part analysis, root cause investigation
and continuous improvement. The process must follow related OEM and IATF requirements.

4.19 Quality Performance

It is VC expectation that suppliers will maintain zero defects of delivered products.
Supplier quality performance is monitored continuously using following key performance indicators:
 Launch performance:
 on time PPAP
 rejected PPAP
 launch issues
 Serial production quality performance
 no. of complaints – complaint severity, customer/repetitive complaints
 8D performance
 Warranty performance
 Customer focus

4.19.1 Supplier Score card

This Supplier scorecard presents criteria that will be used by Vibracoustic to rate the supplier performance.
The performance criteria are defined into the FO-01-7.4-0354 Supplier Sample Score Card and available
into our “VC Communication platform LiveSource”. Supplier shall access their performance data through
this platform. The supplier ‘s performance is taken into consideration for future sourcing decision as well
as for identifying area to focus continuous improvement activities. Supplier scorecard will be published
monthly into LiveSource.

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Supplier Scorecard – Overall score

For information only. Page 1 of FO-01-7.4-0354 Supplier Sample Score Card

Supplier Scorecard – Quality Score

The maximum quality score is 100 and the score is deducted with each incident.
The number of deducted points is defined for each incident based on incident severity.

For information only. Page 4 of FO-01-7.4-0354 Supplier Sample Score Card

4.20 Quality Escalation Process

In case of ongoing issues with products quality, project management, lack of support or other QMS issues
the supplier is escalated and Vibracoustic will initiate supplier improvement activities.
Escalation model:
 Escalation Level 1: Status “Quality Development”.
 Escalation Level 2: Status “Q-support”: VC or an external consultant will drive the improvements at
the supplier.
 NBH: New Business Hold
Incidents triggering escalation and the exit criteria are available in FO_01_7.4_0208. Information listed
in the form is only a selection of escalation criteria, VC reserves the rights to decide on escalation level,
and exit criteria based on actual situation and related risk.

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Supplier will be notified about escalation level and invited to an initial meeting in writing, using FO-01-
7.4-0064. Supplier coaching event will be started in “VC Communication platform LiveSource”. During
initial meeting the target agreements and the exit criteria will be agreed.
Escalation activities Level 1
 Supplier presents the Action Plan (using FO-01-7.4-0061) covering following three areas:
 Part specific improvements (based on Quality complaints during the last 3 months)
 Systematic improvements (quality complaints in last 12 months, APQP & LL process)
 General improvements
 The progress of activities must be reported to VC on regular basis
 The supplier executive management is required to take direct ownership on escalation activities.
Furthermore, the supplier is required to the define escalation team and escalation leader.
 In general, the supplier shall stay on escalation L1 for max.3 months, if de-escalation can not
be reached foreseeably despite all initiated activities the upwards escalation shell be started
 If de-escalation criteria are sustainably reached and after agreement with VC cross functional
team VC escalation leader ends the escalation.

Part specific Systematic General Improvements

Improvements Improvements  Management processes (KPI´s)
 Containment activities, risk  Horizontal deployment in all
 QMS improvements (APQP
assessment, firewalls parts for main failure types process, change management,
and root causes.
 Corrective actions to open layered audits…)
8D’s  Review of APQP and LL for  Personnel & training process
future projects
 Verification of effectiveness  5S & Safety requirements
of taken measures  …
 …
 Review closed 8D’s

 Assessment & Closure of

gaps to TES´s

 Project escalation activities

 …

Note: not a comprehensive list, the activities will be set based on actual situation and related risk.
Additional activities for Escalation Level 2
 A face-to-face meeting/online meeting must be realized on weekly base where supplier is
requested to present progress of escalation activities
 Optional: Firewall at supplier and/or VC
 Optional: Quality Control by independent source
 Optional: Problem solving support with respect to technical and quality system improvements
 Optional: Supplier status is set to NBH
 Optional: Notification of supplier´s IATF 16949/ISO 9001 certification body on actual VC
escalation
 All support costs during Q-support shall be charged to the supplier

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5. Counterparts in VC
Program
Activity / Task GCM PQE SQA Plant SDE / STA
Buyer

Contractual agreement of the VC Global

Procedure
✓ ✓

Supplier APQP ✓

PPAP Approval / Deviation Permit ✓

ECR Request ✓

Non-conforming parts / Supplier Quality

Concerns
✓

Supplier Escalation (coaching, development) ✓

Upload of Supplier Certificates, PPAP

documentation package, 8D process VC Communication Platform ‘LIVESOURCE’

6. APPENDIX / ENCLOSURE

Type of
No. Title/Description Enclosure
Document
1 List Definition of Special Characteristics LI-01-7.3-0049
2 OPI Early Production Containment OPI-01-7.4-0015
3 List Minimum requirements-M04 components with threads LI-01-7.4-0082
4 List Supplier Quality Cost Recovery Table LI-01-7.4-0016
5 Form Problem Solving Process Supplier FO-01-8.5-0160
6 Form Run@Rate suppliers (full audit) FO-01-7.0-0103
7 Form Permission-for-Deviation FO-01-8.3-0002
8 Form Supplier Process design review FO-01-7.0-0217
9 Form Supplier Process readiness FO-01-7.0-0237
10 Form EPC Form FO-01-7.4-0149
11 Form Shipment Marking Triangle FO-01-7.4-0146
12 Form Supplier Special Characteristics FO-01-7.3-0216
13 Form Supplier Change Request FO-01-7.4-0300
14 Form Sub-Supplier-Tree FO-01-7.4-0335
15 Form Supplier Sample Score Card FO-01-7.4-0354
16 Form Supplier Improvement Activity FO-01-7.4-0061
17 Form Supplier Escalation Matrix FO-01-7.4-0208

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7. FURTHER REFERENCE DOCUMENTS

7.1 Supporting documents

 General purchasing conditions of VC.
 Valid Scheduling Agreement with VC.
 GP-01-7.4-0009 “Logistics Requirements for Suppliers”
 General framework agreement

7.2 Supporting documents for compound suppliers only

 GP-01-7.4-0050 “Quality Manual Compound” (on Request)

7.3 Additional Information

 AIAG Manuals (latest version), PPAP, MSA, APQP, FMEA, SPC of the Big Three (GM, Ford,
Chrysler).
 VDA-Manual 4.1: Assurance of Quality for Series Use
 VDA-Manual 4.2: System-FMEA
 VDA-Manual 1: Guidance on Records
 VDA-Manual 2: Assurance of quality for deliveries in the automotive industry.
 IATF 16949: Quality management systems. Special requirements in the application of ISO
9001:2000 for series and spare part production in the automotive industry

8. DOCUMENTATION
Vibracoustic will keep this procedure on file. In case of a revision the latest edition will be kept for at
least 3 years after revision.

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