supplier quality requirements manual - luminar tech
Post on 26-Oct-2021
1 Views
Preview:
TRANSCRIPT
SUPPLIER QUALITY REQUIREMENTS MANUAL
Luminar Supplier Quality Requirements Manual, Rev J QMS-PP-0052
Supplier Quality Requirements Manual
Revision K
March 2021
DocuSign Envelope ID: 7279CA4D-E2A9-40CA-97BF-0AFA9DFE3809
GLOBAL SUPPLIER QUALITY REQUIREMENTS MANUAL
Luminar Supplier Quality Requirements Manual, Rev K QMS-PP-0052
pg. 1
TABLE OF CONTENTS
1. INTRODUCTION 3
1.1. Scope 3
1.2. Quality expectations 3
1.3. Document revision control 3
1.4. Reference quality manuals and standards 3
1.5. Quality Management Systems 3
1.6. Conflict of terms
1.7. Environmental compliance
3
4
1.8. Conflict Minerals Policy
1.9. Health and Safety Management Systems
4
4
1.10. Cascading and executing OEM requirements 4
2. LUMINAR SUPPLIER QUALIFICATION 5
2.1. Process 5
2.2. Request for Quote (RFQ) 5
2.3. Approval status 5
3. ADVANCED PRODUCT QUALITY PLANNING (APQP) 6
3.1. Requirements 6
3.2. Documentation and communication 6
3.3. Project sample and build phases 6
4. CAPABILITY AND CAPACITY VERIFICATION 7
4.1. Run @ Rate 7
4.2. Failure Mode and Effects Analysis (FMEA) 7
4.3. Control plan 8
4.4. Traceability 8
4.5. Measurement System Analysis (MSA) 8
4.6. Capability 8
4.6.1. Special characteristics 8
4.7. Capacity 9
4.8. Packaging and labeling 9
4.9. Embedded software requirements 10
DocuSign Envelope ID: 7279CA4D-E2A9-40CA-97BF-0AFA9DFE3809
GLOBAL SUPPLIER QUALITY REQUIREMENTS MANUAL
Luminar Supplier Quality Requirements Manual, Rev K QMS-PP-0052
pg. 2
4.10. Supplier request for drawing change 10
4.11. Supplier request for process change 10
5. PRODUCTION PART APPROVAL PROCESS (PPAP) 11
5.1. Requirements 11
5.2. Safe Launch Plan (SLP) 11
5.3. Team feasibility commitment 11
5.4. Part conditions requiring PPAP 11
5.5. PPAP submission 12
5.6. PPAP approval 13
6. SUPPLIER QUALITY PERFORMANCE 13
6.1. Performance evaluation 13
6.2. Supplier Quality Scorecard 14
6.3. Non-Conforming Report (NCR) 14
6.4. NCR review request 15
6.5. Supplier request for part concession 15
6.6. Request for Corrective Action (RCA) 15
6.7. Delivery performance 16
6.8. Cost of poor quality 16
6.9. Supplier development and escalation 17
7. GLOSSARY AND REFERENCES 19
7.1. Glossary 19
7.2. References 20
DocuSign Envelope ID: 7279CA4D-E2A9-40CA-97BF-0AFA9DFE3809
GLOBAL SUPPLIER QUALITY REQUIREMENTS MANUAL
Luminar Supplier Quality Requirements Manual, Rev K QMS-PP-0052
pg. 3
1. INTRODUCTION
1.1. Scope
This manual defines general and customer-specific requirements for external providers
(suppliers) of production parts, materials, or services to Luminar Technologies, Inc
(Luminar).
Manufacturers and distributors of off-the-shelf parts are expected to accept the quality
requirements outlined in this manual as well.
Agreement to the requirements in this manual is part of request for quote (RFQ) response
for all suppliers.
1.2. Quality expectations
At Luminar Technologies, we maintain the highest standard of quality for our products
and services to ensure complete customer satisfaction.
Luminar recognizes that the goal of achieving outstanding quality and performance of our
products and services would not be possible without the excellent collaboration of our
suppliers.
It is expected that suppliers use this manual as the minimum requirements to meet in
supporting production of automotive-grade, world-class products and services.
1.3. Document revision control
The effective date for this Supplier Quality Requirements Manual is March 12, 2021. It
supersedes previous Luminar Supplier Quality manuals. Please check with Luminar
Supplier Quality to ensure the latest copy is being used.
1.4. Reference quality manuals and standards
Reference materials for ISO 9001, ISO 14001, PPAP, APQP, FMEA, MSA, ISO/TS 16949,
IATF 16949, VDA 6.3 and others in their latest edition are to be used as applicable. These
are available from the Automotive Industry Action Group site www.aiag.org.
1.5. Quality Management Systems
Suppliers are required to hold a valid IATF 16949 certificate approved by an IATF-
accredited certification body. As a minimum, suppliers must have ISO 9001 with plans
for implementing IATF, unless specifically exempted by Luminar. Supplier management
of sub-tier requirements are defined on section 8.4 of the IATF standard.
1.6. Conflict of terms
In the event of any conflict between this Supplier Quality Manual or any executed
Purchase Order between Luminar and Supplier, the terms of the Purchase Order shall
prevail.
DocuSign Envelope ID: 7279CA4D-E2A9-40CA-97BF-0AFA9DFE3809
GLOBAL SUPPLIER QUALITY REQUIREMENTS MANUAL
Luminar Supplier Quality Requirements Manual, Rev K QMS-PP-0052
pg. 4
1.7. Environmental compliance
Products & Services supplied to Luminar are expected to meet the requirements of
country, federal, state, and local environmental regulations. The list below includes some
of the regulations; however, compliance is not limited to these
a. REACH (Registration Evaluation Authorization and Restriction of Chemicals), most
current regulation.
b. RoHS (Restriction of Hazardous Substances) latest directive.
c. WEEE (Waste Electrical and Electronic Equipment) latest directive.
Luminar encourages all Tier 1 production suppliers to be certified according to the ISO
14001 standard or the European ‘Eco-Management and Audit Scheme’ (EMAS) standard
for Environmental Management Systems (EMS) to ensure continuous improvement on
Suppliers Environmental Performance.
1.8. Conflict Minerals Policy
As required by the Conflict Materials provisions of the Dodd-Frank Wall Street Reform
and Consumer Protection Act, HR 4173, Section 1502 (Conflict Minerals Act), Luminar
Technologies is committed to ensure that their materials supply chain do not contain
conflict minerals that directly or indirectly finance, or benefit armed groups in the
Covered Countries.
Luminar expects our suppliers to demonstrate transparency by establishing a conflict
minerals policy consistent with this Conflict Minerals Policy Statement, and to exercise
due diligence to ensure that minerals from the conflict region do not enter our supply
chain. Suppliers are encouraged to produce reliable certificates of origin for all material
that might possibly originate in conflict areas or adjacent countries.
1.9. Health and Safety Management Systems
Health and Safety measures are non-negotiable when supplying parts and services to
Luminar. Suppliers are encouraged to obtain the Occupational Health and Safety
Assessment Series (OHSAS) 18001 certification, ISO 45001 Occupational Health & Safety
Management System certification, or must demonstrate having a working Health &
Safety Management System at their facility.
1.10. Cascading and Executing OEM Requirements
Luminar Technologies provides its technologies to various on- and off-highway OEMs.
OEMs may have commercial requirements requiring cascading and executing throughout
the entire Luminar supply chain (e.g., Sustainability, Product Safety, Annual
Requalification, etc.).
DocuSign Envelope ID: 7279CA4D-E2A9-40CA-97BF-0AFA9DFE3809
GLOBAL SUPPLIER QUALITY REQUIREMENTS MANUAL
Luminar Supplier Quality Requirements Manual, Rev K QMS-PP-0052
pg. 5
2. LUMINAR SUPPLIER QUALIFICATION
2.1. Process
Potential suppliers to Luminar must pass a risk assessment by supplier quality and close all findings to Luminar’s Supplier Quality satisfaction. This assessment is specific to the intended manufacturing site. The qualification process includes:
a. Completion of supplier self-assessment based on AIAG’s CQI-19 questionnaire. Answers are to include references to documented evidence.
b. Completion of an on-site risk assessment audit or Supplier Readiness Review (SRR) to evaluate quality management systems. The score must result on low risk with no major findings. If the audit results in a score of medium risk, the supplier is required to provide a corrective action plan until all risks are addressed. A high-risk score disqualifies the proposed site.
c. Supplier submits a written agreement of this Supplier Quality Manual.
d. Supplier submits a written agreement of non-disclosure to protect Luminar’s intellectual property, and code of conduct for ethical business practices.
The level of scrutiny will be dependent upon the site’s QMS maturity and their quality
certifications. Approved suppliers will be added to Luminar’s approved supplier list and
given a unique supplier code.
2.2. Request for Quote (RFQ)
Approved suppliers will receive engineering drawings and specifications from Luminar
Purchasing with each RFQ. Each submission will be revision-specific and indicating the
suppliers understanding of the requirements of the print. Any conflict is to be resolved
prior to issuing of PO or commencing production.
2.3. Approval status
Supplier approval is site-specific and non-transferable to other supplier facilities. Some
suppliers will need to maintain qualification on annual basis. Luminar reserves the right
to revoke approval status to suppliers under some of the following causes, including (but
not limited to):
a. Poor performance, loss of quality certification, or business hold (see section 6.9)
b. Facility closure or acquired by new ownership
c. No purchasing activity for 18 months or longer
d. Increase in facility risk
Suppliers must proactively notify Luminar of any changes in the business environment
that may affect approval status as described above.
DocuSign Envelope ID: 7279CA4D-E2A9-40CA-97BF-0AFA9DFE3809
GLOBAL SUPPLIER QUALITY REQUIREMENTS MANUAL
Luminar Supplier Quality Requirements Manual, Rev K QMS-PP-0052
pg. 6
3. ADVANCED PRODUCT QUALITY PLANNING (APQP)
3.1. Requirements
For significant new project or product launch, Luminar requires suppliers to use APQP as
outlined by the AIAG. APQP contains the 5 phases noted on page 6 and culminates with
an approved Production Part Approval Process (PPAP).
Suppliers are to submit APQP documentation for review or allow review of APQP
progress on-site by Luminar.
3.2. Documentation and communication
Luminar will provide suppliers with an APQP workbook or may allow supplier to use their
own. APQP updates are expected on periodic basis as agreed upon by both parties, unless
there is a significant change in status that requires an immediate update.
3.3. Project sample and build phases
During the APQP build phases, Luminar will request sample submissions leading up to an
approved PPAP. This is a stage-gate process in which the samples must meet criteria and
A
B
C
D
DocuSign Envelope ID: 7279CA4D-E2A9-40CA-97BF-0AFA9DFE3809
GLOBAL SUPPLIER QUALITY REQUIREMENTS MANUAL
Luminar Supplier Quality Requirements Manual, Rev K QMS-PP-0052
pg. 7
supplier must address any non-conformities prior to advancing to the next sample type
and within the timeframe of the build phase.
Term Requirements Approval process Sa
mp
le T
ype
A sample
Samples suitable for concept studies as prototypes. No requirements on supplier manufacturing process, but parts must meet specification.
Safe-Launch Plan
B sample Samples suitable for functional and durability testing. Manufacturing process production intent, but tools can be in prototype stage.
Safe-Launch Plan
C sample Samples suitable for field trial validation. Supplier manufacturing process and tools production intent.
SLP or PPAP
D sample Samples suitable for series production. Supplier process is final series process. PPAP approved.
PPAP
Bu
ild P
has
es Engineering
Validation (EV) Production trial run: A & B samples may be prototype tooled.
Safe-Launch Plan
Quality Validation (QV)
Production run: C samples must be production tooled.
SLP or PPAP
Volume Validation (VV)
Production run at rate: D samples must be from production process and PPAP approved.
PPAP
Job 1 or SOP Start of series production.
4. CAPABILITY AND CAPACITY VERIFICATION
4.1. Run @ Rate
Suppliers are required to demonstrate both process capability and installed capacity via
a Run at Rate (R@R) analysis. The R@R should consist of a statistically significant number
of consecutive parts, unless explicitly stated otherwise by Luminar. The R@R should be
conducted at the approved production site using final production process, production
materials and production operators. Results will be noted on PPAP documentation if
level 3 or captured on the Luminar R&R document for a level 5. All aspects on the R&R
requirements must be fulfilled successfully.
4.2. Failure Mode and Effects Analysis (FMEA)
As part of PPAP, the supplier must perform a PFMEA to quantify risk for new or modified
processes; DFMEA would be first if the supplier is design responsible. See the AIAG
Potential Failure Mode and Effects Analysis manual for reference.
4.2.1. Revision of FMEAs will be required as well as part of any corrective action that is
issued to the supplier.
DocuSign Envelope ID: 7279CA4D-E2A9-40CA-97BF-0AFA9DFE3809
GLOBAL SUPPLIER QUALITY REQUIREMENTS MANUAL
Luminar Supplier Quality Requirements Manual, Rev K QMS-PP-0052
pg. 8
4.3. Control Plan
Following the creation or modification of the FMEA, the supplier must implement and
maintain control plans with a clear link to the special characteristics and RPNs noted on
the FMEA. These control plans should also link to corresponding work instructions. Use
of error-proofing devices on special characteristics and proper reaction plans are of
emphasized importance to Luminar.
4.4. Traceability
The supplier must be able to maintain the ability to trace manufactured product for
Luminar either by individual part marking or a method for lot identification. This
requirement applies to supplier’s sub-tiers and raw materials. There may be special
traceability requirements for safety-critical components.
4.5. Measurement System Analysis (MSA)
As referenced on the control plan, suppliers are required to document MSAs for all
measuring and test devices to ensure their suitability.
4.5.1. Acceptable limits for MSAs:
Percentage Repeatability & Reproducibility (%R&R)
Less than 10% Acceptable
Between 10% and 30% Contact Supplier Quality
Greater than 30% Unacceptable
4.6. Capability
Capability indices indicate the ability of the process to produce parts with consistent
quality. With the goal of zero defects and risk mitigation, the supplier must demonstrate
proper capability for features that Luminar Engineering has designated as special
characteristics on the drawing. If supplier is design-responsible, they must obtain
approval from Luminar on their designation of special characteristics. AIAG PPAP manual
for initial process studies and quality indices.
4.6.1. Special characteristics. Upon identification or determination of product’s special
characteristics, the supplier must:
a. Identify the corresponding processes that affects the special characteristics.
b. Assess manufacturing and measuring feasibility.
c. Document proper severity rankings on FMEA and establish heightened
controls on the documented control plan.
d. Specify SPC method and frequency.
e. If current process is not capable, the supplier must inform Luminar and
conduct 100 percent inspection until capability is confirmed, per table below:
DocuSign Envelope ID: 7279CA4D-E2A9-40CA-97BF-0AFA9DFE3809
GLOBAL SUPPLIER QUALITY REQUIREMENTS MANUAL
Luminar Supplier Quality Requirements Manual, Rev K QMS-PP-0052
pg. 9
Critical Characteristics
Significant Characteristics
Acceptable process capability
Cpk ≥ 1.67 Cpk ≥ 1.33
Process under statistical control, normally distributed
• Periodic process verification
• On-going SPC • Ppk analysis annually
• Periodic process verification • On-going SPC • Compliance to capability
requirement Process not under statistical control or capability not achieved
• Electronic or automated error-proofing device
• Effectiveness verified once per shift
• Plan for getting process under control and achieve capability
• 100% inspection • Plan for getting process under
control and achieve capability
f. Follow added handling requirements for any pass-through characteristics
while ensuring on a continuous basis that capability requirements are being
met. These may have additional customer-specific requirements on handling.
g. Continue to monitor capability for special characteristics throughout the life
of the product.
h. Conduct and document capability studies annually, as a minimum.
4.7. Capacity
During the R@R, the supplier must demonstrate enough installed capacity to fulfill
Luminar’s product volume and be able to absorb fluctuations in demand. Luminar
requires demonstrated capacity to fulfill up to 120% of demand. The factors involved in
achieving such capacity are:
a. Number of machines, processes, and employees.
b. Demand from other customers on same production line.
c. Available production time from shifts, planned breaks and maintenance.
d. Time restrictions by changeovers, start-up time, scheduled down time.
e. Equipment availability, unscheduled downtime, and rework / scrap.
The supplier is to establish an action plan to meet Luminar’s volume demand and
implement actions prior to the R@R being accepted.
4.8. Packaging and labeling
As part of the PPAP submission, suppliers are required to develop and validate packaging
methods that ensure the quality and integrity of the product. Only PPAP-approved
package may be used. All finished products must also meet the requirements for proper
labeling as approved by Luminar.
DocuSign Envelope ID: 7279CA4D-E2A9-40CA-97BF-0AFA9DFE3809
GLOBAL SUPPLIER QUALITY REQUIREMENTS MANUAL
Luminar Supplier Quality Requirements Manual, Rev K QMS-PP-0052
pg. 10
4.9. Embedded software requirements
For any products with embedded software, the supplier must include and maintain a
complete set of software design documentation in the design record for the product.
Some aspects to consider include, but not limited to
a. Documenting field software updates and tracking over-the-air updates.
b. Management and record version control of software development tools.
c. Use of an automated Commercial Configuration Management Tool.
d. Diagnostic and programming tools under version control.
e. Traceability and version control of safety requirements.
f. Development process been assessed or audited through either ASPICE or CMMI by
a certified assessor.
g. Ability to support factory and service programming and diagnostic capabilities.
h. Conduct or participate in Hazard Analysis and Risk Assessment (HARA) per ISO
26262.
For comprehensive list of requirements, consult with Luminar Supplier Quality Manager.
4.10. Supplier request for drawing change
Suppliers should contact Luminar product engineering to request an Engineering Change
Request (ECR) for any recommended print revisions. Supplier ECRs are to be submitted
as early possible to avoid delays in PPAP schedules, and preferably submitted along with
quotation.
Supplier ECRs are effective immediately upon Luminar approval. Supplier ECRs for
dimensional or tolerance changes submitted post contract must include a capability
study of the characteristic(s) in question indicating what can be achieved, in terms of
Cpk, with the requested change(s).
4.11. Supplier request for process change
Whenever there may be a need for a supplier-initiated change affecting the PPAP –
approved supply chain or manufacturing process, the supplier is required to submit a
request for change. The change may be temporary or permanent. The conditions for
process change submission are identified in the latest AIAG PPAP manual under section
3 – customer notification and submission requirements. Changes include, but may not
be limited to:
a. Changes to the supply chain
b. Equipment layout change
c. Added equipment or tooling
d. Changes of manufacturing location
e. Changes to raw materials
f. Part processing changes
DocuSign Envelope ID: 7279CA4D-E2A9-40CA-97BF-0AFA9DFE3809
GLOBAL SUPPLIER QUALITY REQUIREMENTS MANUAL
Luminar Supplier Quality Requirements Manual, Rev K QMS-PP-0052
pg. 11
Luminar Supplier Quality will review and coordinate the change request with the
appropriate Luminar groups to evaluate the change and obtain complete concurrence.
Changes may not be implemented until fully approved by Luminar. Failure to comply with
this requirement may result in revocation of the existing product PPAP and escalation.
5. PRODUCTION PART APPROVAL PROCESS (PPAP)
5.1. Requirements
In accordance with the Production Part Approval Process Manual published by the
Automotive Industry Action Group (AIAG), Luminar’s part qualification for C-sample and
beyond requires PPAP submission and approval. All tier-1 suppliers are required to
document PPAP deliverables and samples as applicable to request approval, which is
given via the signing of the part submission warrant (PSW). Unless otherwise explicitly
indicated by Luminar, no part shipments can be made for C-sample and beyond unless
they are PPAP – approved.
5.2. Safe Launch Plan (SLP) In accordance with IATF 8.3.4.3, Luminar requires a documented safe launch plan for
prototypes of new parts. This SLP is to heighten the control of potential non-conformities
for A & B samples prior to PPAP and include exit criteria for first shipments after D sample.
All EV samples are to be 100% inspected, labeled, and serialized for proper traceability.
Suppliers are to focus on special characteristics when creating the SLP, so that all critical
and significant characteristics have increased inspection leading up to the
implementation of error-proofing devices. The process should gradually move from
defect detection to error prevention.
Any non-conformities found during the SLP period must be addressed via a documented
corrective action leading up to a more robust manufacturing process. Luminar supplier
quality may define additional SLP requirements based upon quality performance during
the SLP period.
5.3. Team feasibility commitment
Luminar requires Suppliers to conduct and complete a Team Feasibility Commitment prior
to initiating Production Part Approval Process. See Appendix D of AIAG APQP Manual.
5.4. Part conditions requiring PPAP
a. Initial submission
b. Change to optional construction or material
c. Engineering change
d. Sub-supplier or material source change
e. Tooling Transfer, Replacement, or Refurbishment, or additional
f. Change in Part Processing
g. Correction of Discrepancy
DocuSign Envelope ID: 7279CA4D-E2A9-40CA-97BF-0AFA9DFE3809
GLOBAL SUPPLIER QUALITY REQUIREMENTS MANUAL
Luminar Supplier Quality Requirements Manual, Rev K QMS-PP-0052
pg. 12
h. Parts Produced at Additional Location
i. Tooling Inactive > than 1 year
5.5. PPAP submission
Luminar Supplier Quality will request PPAPs via the checklist from our QMS. This will
define the elements and documentation required for submission, as well as the due dates.
PPAP due dates must be met; any delays must be notified to Luminar Supplier Quality
ahead of time along with a committed new submission date. Please refer to the table on
page 12 for PPAP requirements and submission levels.
PPAP is required for all Tier-1 Supplier facilities providing production parts or production
materials. Specific submission requirements are determined by the PPAP level (1-5)
requested and are defined in the AIAG manual. Default submission level is 3, but Luminar
reserves the right to assign PPAP levels as needed.
REQUIREMENTS
SUBMISSION LEVELS
Level 1 Level 2 Level 3 Level 4 Level 5
1
Design Records R S S * R
-For Proprietary Components/Details R R R * R
-For All other Components R S S * R
2 Engineering Change Documents if any R S S * R
3 Customer Engineering Approval, if required R S S * R
4 Design FMEA (If Supplier is responsible for Design R S S * R
5 Process Flow Diagram R S S * R
6 Process FMEA R S S * R
7 Control Plan R S S * R
8 Measurement System Analysis Studies (MSA) R S S * R
9 Dimensional Results S S S * R
10 Material/Performance/Test Results R S S * R
11 Initial Process Study (SPC) R S S * R
12 Qualified Laboratory Documentation R S S * R
13 Appearance Approval Report (AAR) if applicable S S S * R
14 Sample Product R S S * R
15 Master Sample R R R * R
16 Checking Aids R R R * R
17 Records of Compliance Customer Specific Requirements R R S * R
18
Parts Submission Warrant (PSW)-Tier 1/Tier 2 Suppliers S S S S R
Bulk Material Requirement Checklist R R R R R
S= The Supplier shall submit to Luminar and retain a copy of records.
R= The Supplier shall retain at appropriate locations and make readily available to Luminar upon request.
* = The Supplier shall retain at appropriate locations and submit to Luminar upon request.
Other PPAP submission conditions include
a. Supplier to submit samples and dimensional reports for each tool cavity. A CTQ
scorecard is required for critical and significant dimensions.
b. Sample shipments must be clearly identified as “PPAP samples”, to prevent the
samples from being mixed with production material or being otherwise
misdirected. Minimum of 5 pcs per tool/cavity/mold.
DocuSign Envelope ID: 7279CA4D-E2A9-40CA-97BF-0AFA9DFE3809
GLOBAL SUPPLIER QUALITY REQUIREMENTS MANUAL
Luminar Supplier Quality Requirements Manual, Rev K QMS-PP-0052
pg. 13
c. PPAP shall be submitted to the Supplier Quality Manager. Suppliers are expected to
complete and retain all PPAP documentation.
d. Luminar Supplier Quality will establish a PPAP submittal date based on quoted or
otherwise agreed to lead times. The supplier is to submit PPAP complete, accurate,
and on time as part of their quality performance.
5.6. PPAP approval
Luminar will approve PPAP submission via the signing of the part submission warrant.
PPAP evaluation may result in either:
a. Approval. All documents and samples meet requirements. Part is approved for use
in production.
b. Rejection. The submitted documents and/or parts do not meet requirements.
Supplier is to re-submit PPAP altogether.
c. Other / interim approval. Some documents are incorrect or incomplete, or parts
needed further processing before meeting specification. Luminar Supplier Quality
may issue a concession for the requirement for a limited time. The part will be given
an interim approval PPAP status, so that the part is considered acceptable for
production for the duration of the concession or until re-submission. The supplier is
required to correct the non-conformance and resubmit the PPAP prior to expiration
of the concession. The reasons for the interim approval must be noted on the PSW.
The PPAP may be moved to approved status at the end of the concession period with
an accepted re-submission.
PPAP approval first-pass yield (FPY) will be part of the supplier’s scorecard for quality
performance.
6. SUPPLIER QUALITY PERFORMANCE
6.1. Performance evaluation
In alignment with IATF 8.4.2.4, Luminar measures quality performance for each supplier
facility, as defined by a unique supplier code. Performance is evaluated for the following,
as applicable:
a. Non-conforming parts-per million (PPM).
b. Number of NCRs leading to line disruptions.
c. Aging of corrective action request responses.
d. On-time delivery and premium freight.
e. PPAP on-time submission and approval FPY.
DocuSign Envelope ID: 7279CA4D-E2A9-40CA-97BF-0AFA9DFE3809
GLOBAL SUPPLIER QUALITY REQUIREMENTS MANUAL
Luminar Supplier Quality Requirements Manual, Rev K QMS-PP-0052
pg. 14
Luminar Supplier Quality will inform suppliers of their performance on as needed basis
but will engage those whose performance is not up to minimum standards for escalation
and a collaborative improvement plan.
6.2. Supplier Quality Scorecard
Luminar Supplier Quality will track supplier performance as noted on 6.1. This
performance will classify the supplier from outstanding to unsatisfactory and is based on
the requirements of the automotive industry. Luminar Supplier Quality will modify the
quality goals as required by Luminar Management and notify suppliers of the revised
goal.
Please refer to the following table for Luminar supplier rating system. These metrics are
tracked as 12-month rolling.
Metric Outstanding Satisfactory Substandard Unsatisfactory
PPM Zero Less than 100 100 – 500 More than 500
Number of RCAs 0 1 – 3 4 – 5 5 or more
Response time to RCAs
N/A Under 20 days 21 – 30 days More than 30 days
PPAP on-time 100% 99% - 98% 97% - 90% Less than 90%
PPAP FPY 100% 99% - 98% 97% - 90% Less than 90%
OTD 100% 99% - 96% 95% - 90% Less than 90%
Premium freight occurrences
0 1 – 4 5 – 8 9 or more
6.3. Non-Conforming Report (NCR)
All parts supplied to Luminar must meet requirements for fit, form, and function. Quality
requirements also apply to packaging, labels, and shipping documentation. If a part is
found to be non-conforming, Luminar quality will issue a non-conforming report (NCR)
and request disposition from the supplier. The supplier will be given 24 hours for
acknowledgement and containment as needed, and 3 days to provide the RMA to
disposition the failed part(s). The disposition could be
a. Return to vendor (RTV). The supplier issues and RMA and carrier account for Luminar
to ship the failed part(s) back.
b. Scrap. The supplier acknowledges the non-conformity and chooses for Luminar to
scrap the part(s) onsite at supplier’s cost.
DocuSign Envelope ID: 7279CA4D-E2A9-40CA-97BF-0AFA9DFE3809
GLOBAL SUPPLIER QUALITY REQUIREMENTS MANUAL
Luminar Supplier Quality Requirements Manual, Rev K QMS-PP-0052
pg. 15
Any NCR created against a supplier will impact their PPM performance. The supplier is
required to analyze any part non-conformities and provide the results with root cause
and corrective actions back to Luminar Supplier Quality.
6.4. NCR review request
Once the supplier analyzes the returned part(s), if they disagree with the non-conformity,
they may request an NCR review to reverse the PPM impact and remove their liability
from further consequences. This request may be either because the part was found
within specification (fit, form, and function) or because the non-conformity was a
consequence of handling or other factors outside of the supplier’s control.
The supplier is to submit all evidence supporting their analysis results, such as
dimensional reports, material certifications, lot release records, and other applicable
data. Luminar Quality and Supplier Quality will consider the evidence presented and
either accept the review (NCR removed) or reject the review (NCR stands).
6.5. Supplier request for part concession
A concession is a temporary deviation from the approved part or process requirements.
Suppliers are to submit a formal request with a specified number of parts affected. Parts
affected by the concession may not ship until approved and are to have specific
traceability.
6.6. Request for Corrective Action (RCA)
As an escalation to an NCR, Luminar will issue a request for corrective action to the
supplier when non-conformities are identified and any of the conditions below take
place, included but not limited to
• The quality issue caused a safety concern
• The NCR led to a production shutdown
• The non-conformity was reported by a Luminar customer
• The quantity of rejected parts is significant (above 5% of a regular shipment)
• Repeat non-conformity
The supplier is required to document and report on the actions taken via the Luminar
corrective action template (8D) as follows:
a. Containment – Luminar and our customers need to be immediately protected
from the quality concern and their impact. Containment is to be started
immediately. The supplier is responsible for developing and communicating
containment inspection instructions to Luminar, their onsite representatives, or
3rd party. Luminar may need to start containment at supplier cost.
b. If the quality concern is believed to have escaped to Luminar customers’ vehicles,
the supplier must initiate containment at our customer’s facilities within the
DocuSign Envelope ID: 7279CA4D-E2A9-40CA-97BF-0AFA9DFE3809
GLOBAL SUPPLIER QUALITY REQUIREMENTS MANUAL
Luminar Supplier Quality Requirements Manual, Rev K QMS-PP-0052
pg. 16
necessary timeframe indicated by Luminar given the type and risk of issue, but not
to exceed 24 hours.
c. If the quality concern originated at a sub-tier, the supplier must extend their
containment efforts as appropriate.
d. Supplier executes rework/replace of affected parts as required to maintain
production. This rework must be performed by qualified personnel or a third-party
on contract to the supplier that has been approved by Luminar Quality.
e. Clean point identification and execution is expected within 24 hours at supplier
and all Luminar and our customer facilities that may have been affected.
f. Root cause analysis is due within three business days. This applies for occurrence
and non-detection.
g. Corrective Action Plan is expected within ten business days. The plan will need to
be approved by Luminar Supplier Quality so that technical actions are
implemented, and not just behavioral.
h. Implemented corrective actions are expected within 20 business days. This
includes proof of effectiveness via statistical data, revised FMEA, and other
applicable evidence.
Delays on expected RCA responses must be communicated to Luminar Supplier Quality.
Late responses will impact the supplier’s performance scorecard. Supplier is responsible
for all costs associated with validating and implementing corrective actions. Luminar
requires suppliers implement corrective action as required to their sub-tiers.
6.7. Delivery performance
Suppliers are to ship the contracted quantities of quality product so that parts arrive in
Luminar on time according to the delivery schedule. Any premium freight resulting from
late shipments or quality disruptions are the responsibility of the supplier. Luminar will
include OTD and instances / cost of premium freight as part of the suppliers’ scorecard,
as applicable.
6.8. Cost of poor quality
On any instance of a supplier failing meet Luminar’s quality requirements, direct costs
incurred by Luminar that are associated with the will be charged back to the supplier. It
is expected that both parties collaborate to minimize expenses. Upon an NCR
notification, the supplier is responsible for issuing an RMA within three business days or
reject lots may be scrapped and debited to the supplier. Some instances of cost of poor
quality is listed below. This list should not be construed as exhaustive:
a. Sorting, rework, line disruption
DocuSign Envelope ID: 7279CA4D-E2A9-40CA-97BF-0AFA9DFE3809
GLOBAL SUPPLIER QUALITY REQUIREMENTS MANUAL
Luminar Supplier Quality Requirements Manual, Rev K QMS-PP-0052
pg. 17
b. Premium freight
c. Cost of increased inspection
d. Excess inventory
e. Correcting misidentified parts
f. Shipping documentation errors
g. Downtime, overtime, repeat testing
h. Additional manpower
i. Line changes due to material availability
j. Equipment breakage
k. Associated material losses
l. Rework at customer premises, travel, and manpower
m. Replacement of material at customer location
n. Reimbursement of charges from customer, warranty costs.
Suppliers are expected to work directly with Luminar’s approved 3rd-party sorting
company as applicable per 6.6a above.
6.9. Supplier development and escalation
Luminar expects all suppliers to continually improve their quality performance. Luminar
Supplier Quality will recognize outstanding suppliers and collaborate with those suppliers
needing quality performance improvement as needed.
Suppliers are continuously evaluated to ensure performance meets expectations. Per
scorecard on section 6.2, suppliers which fall under “Substandard” category on any
metric will need to provide Luminar Supplier Quality with an improvement plan
containing the following
a. Effective containment plans
b. Root cause analyses
c. Permanent corrective actions and implementation timing
d. Glide path - predicted future performance
The timeframe for the metric to improve to “Satisfactory” is 3 months from the baseline.
Luminar Supplier Quality may extend this period at our discretion based on progress
made by supplier. However, if the supplier fails to improve the quality and/or delivery
performance, Luminar may escalate to a controlled shipping procedure, notification to
ISO/IATF registrar, and up to business hold depending on the criticality of the infractions.
DocuSign Envelope ID: 7279CA4D-E2A9-40CA-97BF-0AFA9DFE3809
GLOBAL SUPPLIER QUALITY REQUIREMENTS MANUAL
Luminar Supplier Quality Requirements Manual, Rev K QMS-PP-0052
pg. 18
Luminar’s Global Supplier Requirements Manual approval:
_________________________________
Pavel Tabares, Supplier Quality Manager
_________________________________
Lonnie Bernardoni, VP of Supply Chain
_________________________________
Mark Southerland, Director of Quality
_________________________________
Scott Faris, Chief Business Officer
_________________________________
Anthony Cooke, VP for Policy and Regulation
Substandard
• RCA
• Supplier's quality management presents glide path
Unsatisfactory
• RCA ineffective / repeat occurrence
• Supplier's plant management presents glide path
Critical
• Failure to improve
• Controlled shipping
• Supplier's executive team meets with Luminar executives
• ISO/IATF Registrars notified
Business hold
•Cancel POs
•Begin supplier business exit
Escalation Process
DocuSign Envelope ID: 7279CA4D-E2A9-40CA-97BF-0AFA9DFE3809
GLOBAL SUPPLIER QUALITY REQUIREMENTS MANUAL
Luminar Supplier Quality Requirements Manual, Rev K QMS-PP-0052
pg. 19
7. GLOSSARY AND REFERENCES
7.1. Glossary
These are some of the acronyms and terms that may be referenced to in this manual.
Please see IATF 16949 section 3.1 for terms and definitions for the automotive industry.
8D 8 Disciplines; a problem-solving method
AIAG Automotive Industry Action Group
APQP Advanced Product Quality Planning
ASPICE Automotive Software Performance Improvement and Capability
dEtermination
Capacity The ability of a production line to meet customer demand
Capability The ability of the produced part to meet all special characteristics
Concession The IATF term for a temporary deviation from previously approve product
or process
Cpk Process Capability Index
CTQ Critical to Quality
DFMEA Design Failure Mode & Effects Analysis
ECR Engineering Change Request
EDI Electronic Data Interchange
ERP Enterprise Resource Planning
FIFO First-In, First-Out
FMEA Failure Mode & Effects Analysis
FPY First-Pass Yield
GR&R Gage Repeatability & Reproducibility
HARA Hazard Analysis and Risk Assessment
IA Interim (PPAP) Approval
IATF International Automotive Task Force
IMDS International Material Data System
ISO International Standards Organization
MSA Measurement System Analysis
Master part A known-good unit with expected testing results
NCR Non-Conforming Report
NIST National Institute of Standards and Technology
NTF No Trouble Found. The failure mode by customer could not be replicated.
OEE Overall Equipment Effectiveness
OSHA Occupational Safety and Health Administration
OTD On-Time Delivery
PFMEA Process Failure Mode & Effects Analysis
PPAP Production Part Approval Process
Ppk Performance Analysis Index
PPM Parts Per Million
DocuSign Envelope ID: 7279CA4D-E2A9-40CA-97BF-0AFA9DFE3809
GLOBAL SUPPLIER QUALITY REQUIREMENTS MANUAL
Luminar Supplier Quality Requirements Manual, Rev K QMS-PP-0052
pg. 20
PSW Part Submission Warrant
QV Quality Validation
R@R Run at Rate
RCA Request for Corrective Action
REACH Registration, Evaluation, Authorization and Restriction of Chemicals
RFQ Request For Quote
RoHS Restriction of Hazardous Substances
RMA Return Material Authorization
RPN Risk Priority Number
RTV Return To Vendor
SLP Safe-Launch Plan
SPC Statistical Process Control
SRR Supplier Readiness Review. Luminar’s on-site supplier risk assessment.
VV Volume Validation
WEEE Waste Electrical and Electronic Equipment
7.2. References
The following documents are intended to support the Luminar Supplier Development
Process. If there are any questions, please contact your respective Purchasing Contact.
All reference material can be purchased through the Automotive Industry Action Group
(AIAG) website at www.aiag.org.
• ISO9001:2015 Quality Management System
• IATF16949:2016 Automotive Quality Management System Standards
• Advanced Product Quality Planning & Control Plan (APQP), Current Edition
• Potential Failure Mode and Effect Analysis (FMEA), Current Edition
• Measurement Systems Analysis (MSA), Current Edition
• Production Part Approval Process (PPAP), Current Edition
• Statistical Process Control (SPC), Current Edition
• GP-9 GM Run @ Rate
• CQIA-19 Sub-Tier Supplier Management Process
Other pertinent information can be found on the following websites:
• AIAG: Automotive Industry Action Group www.aiag.org
• ANSI: American National Standards Institute www.ansi.org
• VDA: Verband der Automobilindustrie e. V. www.vda.de
• IATF: International Automotive Task Force www.iaob.org
DocuSign Envelope ID: 7279CA4D-E2A9-40CA-97BF-0AFA9DFE3809
top related