quality department smp · 2020-03-06 · ppap production part approval process (aiag) ppar...

Quality Department SMP:

Supplier Quality Assurance Manual

SMP Number: PSQ 27.00

Supplier Quality Assurance Manual (SQAM) of 63

FORM QDF01-02 REV 12APR2011

1 Supplier Quality Assurance Manual (SQAM) ................................................................... 5

1.1 Distribution ................................................................................................................................... 5

1.2 Purpose ......................................................................................................................................... 5

1.3 Scope ............................................................................................................................................ 5

1.4 Definitions/Acronyms .................................................................................................................. 6

1.5 Responsibility................................................................................................................................ 9

1.5.1 Roles of Supplier Quality in Q3.0 .............................................................................................. 9

1.5.2 Tasks/Responsibilities ............................................................................................................ 10

1.6 Supplier General Matrix .............................................................................................................. 11

2 Quality Activities Prior to Part and Process Approval (PPA) ........................................ 13

2.1 Sampling Planning ...................................................................................................................... 13

2.2 Supplier Organization ................................................................................................................. 13

2.3 Program Management ................................................................................................................ 14

2.4 VDA-RGA Program ...................................................................................................................... 14

2.5 Supplier Audits ........................................................................................................................... 14

2.5.1 VDA 6.3 Process Audits .......................................................................................................... 14

2.5.2 TRL Audit ................................................................................................................................. 15

2.5.3 PFA Audit ................................................................................................................................ 15

2.6 Key Quality Characteristics ........................................................................................................ 16

2.7 Inspection Gauge Requirements ................................................................................................ 17

2.8 Testing Requirements and Responsibility ................................................................................... 17

2.9 Pre-Launch Control Plan and Launch Containment Plans .......................................................... 18

2.9.1 Plan Requirements .................................................................................................................. 18

2.9.2 Pre-Launch Control Plan ......................................................................................................... 19

2.9.3 The Launch Containment Process .......................................................................................... 19

2.10 Process Flow Chart, Control Plans and FMEA ........................................................................ 19

2.11 Supplier Inspection Standards ................................................................................................ 19

2.12 Part E-Level and Q-Level History Tracking .............................................................................. 20

2.13 Supplier Portal Applications .................................................................................................... 21

3 Production Process and Product Approval (PPA) ......................................................... 22

3.1 Series Production Approvals of Other Daimler Plants ................................................................ 22

3.2 Execution of the PPA Process..................................................................................................... 22

3.3 Identification/Labeling ............................................................................................................... 23

3.3.1 Identification of Parts .............................................................................................................. 23

3.3.2 Shipping Label ......................................................................................................................... 23

3.3.3 Part Specific Labels and/or Bar Codes .................................................................................. 24

3.3.4 IMDS Requirements ................................................................................................................ 24

3.3.5 FDOK Requirements ................................................................................................................ 24

3.4 Trigger for the PPA Process ........................................................................................................ 24

3.5 PPA Documentation Submission Requirements ......................................................................... 25

3.6 Sample Parts............................................................................................................................... 27

3.7 PPAP Sample Part Submission Procedure .................................................................................. 28






3.8 Approval Status .......................................................................................................................... 29

3.9 Part Approval Matrix ................................................................................................................... 30

3.10 Process Approval Matrix ......................................................................................................... 31

3.11 Deviations ............................................................................................................................... 32

3.12 Changes Requiring Re-Submission of PPAP ........................................................................... 33

3.13 Delivery of New or Changed Production Product ................................................................... 33

3.14 Tier Supplier Responsibilities .................................................................................................. 33

3.15 Storage Periods ....................................................................................................................... 34

3.16 Reporting ................................................................................................................................. 34

4 Trial Series Support ........................................................................................................ 35

4.1 Trial Product Measurement Requirements ................................................................................. 35

4.2 Documentation to Accompany Parts .......................................................................................... 36

4.3 Supplier Maturity Vehicle ........................................................................................................... 36

5 Production Launch Support ........................................................................................... 37

5.1 Launch Containment Plan........................................................................................................... 37

5.2 On-Site Supplier Resident Engineers/Supplier Representatives ............................................... 37

5.3 Rework and Sort of Non-Conforming Product ............................................................................ 37

5.3.1 Reworking of Non-Conforming Product .................................................................................. 37

6 Series Production Support ............................................................................................. 38

6.1 Containment of Non-Conforming Product .................................................................................. 38

6.2 Containment ............................................................................................................................... 38

6.3 Part Disposition .......................................................................................................................... 39

6.4 Rework ........................................................................................................................................ 39

7 Corrective Action/Q-H:ELP ............................................................................................ 40

7.1 Corrective Actions ...................................................................................................................... 40

7.1.1 Reporting Tool ......................................................................................................................... 40

7.2 Q-H:ELP ....................................................................................................................................... 40

7.2.1 Basic Approach ....................................................................................................................... 40

8 Gauge Standard .............................................................................................................. 42

8.1 Scope .......................................................................................................................................... 42

8.2 Responsibilities ........................................................................................................................... 42

8.3 Requirements ............................................................................................................................. 42

8.3.1 Kickoff Meeting ....................................................................................................................... 42

8.3.2 Design Approval ...................................................................................................................... 43

8.3.3 Final Approval ......................................................................................................................... 43

8.3.4 Production Implementation ................................................................................................. 43

8.3.5 Engineering Changes and Modification to the Gauge ......................................................... 43

8.3.6 Build Requirements ............................................................................................................. 43

8.3.6.1 General Requirements ..................................................................................................... 43

8.3.6.2 General Design ................................................................................................................ 43

8.3.6.3 Bases ............................................................................................................................... 44






8.3.6.4 Body ................................................................................................................................. 44

8.3.6.5 Datum .............................................................................................................................. 44

8.3.6.6 Clamps ............................................................................................................................. 44

8.3.6.7 Pins .................................................................................................................................. 45

8.3.6.8 Flush and Feeler Checks ................................................................................................. 45

8.3.6.9 SPC Checks ..................................................................................................................... 45

8.3.6.10 Identification ................................................................................................................ 45

8.3.6.11 Build Tolerances ........................................................................................................... 46

8.3.7 Buy-Off Requirements ......................................................................................................... 46

8.3.7.1 CMM Certifications .......................................................................................................... 46

8.3.7.2 Gauge R&R Requirements ............................................................................................... 47

8.3.8 Maintenance Requirements ................................................................................................ 47

8.3.8.1 Storage ............................................................................................................................ 47

8.3.8.2 Repair and Maintenance .................................................................................................. 47

8.3.8.3 Re-Certification ................................................................................................................ 48

9 Supplier Evaluation System ........................................................................................... 49

9.1 Quality Performance Score ......................................................................................................... 49

9.1.1 Distribution of Quality Score ............................................................................................... 49

9.1.2 Calculation of Quality Score ................................................................................................ 50

9.1.2.1 Range Table ..................................................................................................................... 50

9.1.3 Quality Performance Score Categories ............................................................................... 51

9.1.4 Supplier Quality Performance Card Explanation ................................................................. 51

............................................................................................................................................................... 52

9.2 Logistics Performance Score ...................................................................................................... 53

9.2.1 Explanation of each Logistics KPI ....................................................................................... 53

9.2.1.1 On-Time Delivery ............................................................................................................. 53

9.2.1.2 ASN Errors ....................................................................................................................... 53

9.2.1.3 Mislabeled Parts .............................................................................................................. 54

9.2.1.4 Responsiveness ............................................................................................................... 54

9.2.1.5 Blocks in Production ........................................................................................................ 55

9.2.1.6 Expedited Shipment ......................................................................................................... 55

9.2.1.7 Missed at Stations ........................................................................................................... 56

9.2.2 RAN Scorecard Calculation ................................................................................................. 56

9.2.2.1 Logistics Performance Scorecard Explanation – RAN Suppliers ..................................... 57

9.2.3 SEQUENCE Scorecard Calculation ...................................................................................... 58

9.2.3.1 Logistics Performance Scorecard Explanation – SEQ Suppliers ..................................... 59

9.2.4 Logistics Performance Score Categories ............................................................................ 60

10 Documents/References ................................................................................................. 61

11 Records ........................................................................................................................... 62

12 Revision/History ............................................................................................................. 63






1 Supplier Quality Assurance Manual (SQAM)

1.1 Distribution Suppliers of Mercedes-Benz U.S. International, Inc. (MBUSI)

Supplier Communication Guide (SCG) Collaboration Teamplace

Daimler Covisint Portal

1.2 Purpose The purpose of this Supplier Quality Manual (SQAM) is to outline the minimum quality

requirements for the Suppliers of Mercedes-Benz U.S. International, Inc. (MBUSI) in

accordance with ISO/TS 16949. According to ISO/TS 16949, the supplier must carry

out a Production Part Approval (PPA) process for series production. Unless otherwise

specified in the following, the requirements made on this process are oriented towards

the relevant current issue of VDA Volume 2. These requirements are designed to assure

that all products (systems, modules, components, raw materials, etc.) supplied to MBUSI

meet all known drawings, standards, specifications and agreements. Meeting these

minimum requirements helps to assure customer satisfaction. This manual, however, is

not intended to change specific requirements and remedies, if set forth in the body of the

supply agreement or MBUSI Master Terms Direct Purchasing or MBST-13 and/or any

appendix other than this manual, which specific requirements and remedies in case of

inconsistencies shall prevail.

1.3 Scope This manual applies to all Suppliers of MBUSI that supply product for production use.

The manual defines minimum requirements that the Supplier shall meet. It is designed to

be flexible for individual Supplier’s systems; however, there are specific procedures and

forms outlined in the manual which shall be followed by the Supplier. It is the

responsibility of the Supplier to understand and utilize this manual. In addition to the

scope specified in VDA Volume 2, the PPA process must also be carried out for software

and standard parts unless agreed otherwise. Any questions concerning the content of

this document should be directed to the MBUSI Procurement and Supplier Quality (PSQ)

Engineer.






1.4 Definitions/Acronyms

AIAG Automotive Industry Action Group. A Trade association consisting of U.S.

Automobile Manufacturers and Supplier’s established to foster improved

productivity in the customer-supplier relationship. AIAG distributes manuals

and documents.

APQP Advanced Product Quality Planning

AWE Abweicherlaubnis – Deviation Permission

AZF Factor calculated from the number and severity of CPA issues

BAG Sampling Coordination Meeting or “BemusterungsAbstimmungsGespraech”

BPF Sampling Planning Form or BemusterungsPlanungsFormular

“_” Release Blank Release, Production release level of a drawing

CAR Corrective Action Request

CMM Coordinate Measurement Machine

CPA Final Vehicle Audit used to gauge overall vehicle quality and customer

satisfaction

CpK Process Capability Index

<DS> Identification and documentation of “safety-relevance”

<DZ> Identification and documentation of certification relevance including

emission relevance

DAG Daimler Incorporated (Aktiengesellschaft)

DBL Supply Specification (Daimler-Benz Liefervorschrift)

DCI Design Change Information sheet used by MBUSI ECC section of Production

Control Department to gather supplier timing

DIN German Industrial Standard (Deutsche Industrienorm)

DMT Defective Material Tag

ECC Engineering Change Coordination or Control

E-Level Method to track all changes related to a part and its corresponding

production processes before PPAP

EPA U.S. Environmental Protection Agency

Error Proofing Mechanical devices/controls that will not allow defective product to proceed

to the next step in a manufacturing process

ET Engineering Trial, the 1st trial in the pre-launch build process

VE-DOK Vehicle documentation system that maintains a record of as-built data for

each vehicle

FMEA Failure Mode and Effects Analysis (System, Design, or Process)

FMVSS Federal Motor Vehicle Safety Standards






GR&R Gage Repeatability and Reproducibility study as defined in the AIAG

Measurement Systems Analysis Manual (MSA)

IMDS International Material Data System

I-Lot Trial for Initial Release

ISO9000 International Standards Organization quality system

ISO 14001 International Standards Organization environmental management system

KEM Design change notification (Konstruktionseinsatzmeldung)

KQC Key Quality Characteristic

Logistics MBUSI Logistics Department

MBN Mercedes-Benz Standard (Mercedes-Benz Normen)

MBUSI Mercedes-Benz United States International, Incorporated

MRD Material Requirement Date

MQE/MQI Modular Quality Engineer

MSA Measurement Systems Analysis, also referred to as GR&R

Gage Repeatability and Reproducibility Study

NEDS Noise, Emissions, Durability, and Safety

Null Series Trial Builds Conducted to Evaluate Design

PAF Numbering system for KEM’s

PC MBUSI Production Control Department

PDR Part Deviation Request

PE MBUSI Production Engineering Department

P-Lot Trial for Prototype release

PM Preventative Maintenance

PPA Production Process and Product Approval (VDA)

VDA equivalent to PPAP

PPAP Production Part Approval Process (AIAG)

PPAR Production Process and Product Approval Provisional Part Approval Report

VDA equivalent to ISIR (complete PPAP documentation)

PPM Parts per Million Reject Rate

PQE/RQI Part Quality Engineer

PSQ Procurement and Supplier Quality

P-Release Pre-Release or Prototype release of a drawing

Product For the purposes of this manual, used as a generic definition for any

commodity, raw material, part, assembly, module, etc. supplied to MBUSI

from any outside party

PSW Part Submission Warrant






PT1, 2, 3, etc. The production trials in the pre-launch build process

Q-H:ELP Quality CHallenges: REcognition, SoLution and Prevention

Q Level Method to track all changes related to a part and its corresponding

production processes

QS9000 AIAG Quality System 9000 - Modeled after ISO 9000 with additional

sections specific to Automotive Manufacturers requirements

RAN Release Authorization Number

SCG MBUSI Supplier Communication Guide

SES Supplier Evaluation System

Shall / Should In this manual “shall” refers to activities that the Supplier must perform.

“Should” refers to activities that are recommended or the Supplier may be

asked to perform

SIS Supplier Inspection Standard

SPC Statistical Process Control

SPRP Supplier Parts Readiness Program (DAG Central document, VDA based)

SQAM MBUSI Supplier Quality Assurance Manual

SQE/LQI Supplier Quality Engineer

SQO/KTB Supplier Quality Operations

SQMS Supplier Quality Management System

TRL Technical Revision of Supplier

TS16949 Quality Management System that encompasses QS9000, ISO 9000, and

VDA

VDA 6 Verband der Automobilindustrie, quality management system based on

DIN EN ISO 9001 and DIN EN ISO 9004

VDA-RGA Maturity Level Assurance

W-Release Preliminary design release between “_” and P-Release

YAP Numbering system for KEM’s

ZGS Drawing Geometry Status (Zeichnunggeometriestand)






1.5 Responsibility

1.5.1 Roles of Supplier Quality in Q3.0






1.5.2 Tasks/Responsibilities The following table shows the detailed responsibilities of the Modular Quality Engineer

(MQE/MQI), Supplier Quality Engineer (SQE/LQI), and Reclamation/Part Quality

Engineer (PQE/RQI):

K Coordination

V Responsibility

M Collaboration

#

Tasks/Responsibilities

Leading Quality Area

MQE

/MQI

SQE

/LQI

PQE/

RQI

1 Input for Specification Book - (KLH) part related V M M

2 Input for Process Specification Book (PLH) V M M

3 Source Evaluation at HUB region K V

4 Alignment of sourcing matrix for directed parts (N-tier) V M M

5 Offer presentation participate V M

6 ABC Part Classification V M

7 ABC verification K V

8 Q-planning V M

9 Follow up with action items from audits K V

10 Process-FMEA Review K V

11 Maturity Validation Management (VDA-RGA) and Maturity Validation at supplier site K V

12 Process Audit Part 1 VDA 6.3 K V



15 Support PT (production trial) First Line of contact at Mercedes production plant K V M

16 Maturity Validation Part ( Up to QG D: Target date for drawing release) V M

17 Check of Supplier Gauges and Fixture Concepts K V

18 PPAP Alignment meeting (BAG) + planning M V

19 PPAP part, PPAP process, Series Process ( sample report) K V

20 Support B-phase for new projects, series, facelift/ First contact for plant V M

21 Boundary Sample Agreement V M

22 Complaint management to secondary interference (no concept errors) M V

23 Complaint management 3rd level support V M

24 Interface in the case of concept errors V M M

25 Internal Shopfloor reporting M V

26 Q-H:ELP Process K V M

27 Requalification supplier production process V

28 TRL audits at the supplier V

29 PF Team V M M

30 Quality maturity meeting, phase dependent V M






1.6 Supplier General Matrix

Minimum Requirements for Tier One Suppliers Reference / Standard MBUSI, DAG

(Lead Role in Bold Type)

Understand MBUSI expectations for all functions

and processes

SQAM, Supplier

Communication Guide

PSQ, PC, Logistics,

Finance

Have training program for all new associates,

temporary support and personnel changes

TS 16949 PSQ

Have an updated organizational chart /

responsibility matrix for plant and project

personnel

Always have a current copy

at MBUSI

PSQ PC, Logistics,

Finance

Give MBUSI advance notice of union contract

expiration – Including tier 2 & 3 suppliers

6 months prior to

expiration, inform MBUSI

PC, Logistics, Purchasing

Have all norms, specifications and documents

related to the production products and maintain an

archive of these

Shall be current and

checked yearly as part of

the document control

system

PSQ, SQE, PC, Logistics

Have a TS 16949 certified Quality Management

System and an ISO 14001 certified Environmental

Management System

TS 16949 and ISO 14001

certified

PSQ

Check annually whether the deliveries meet

Daimler’s testing specifications (including material,

reliability, legal specifications and the control

plan). These documents shall be made available to

Daimler or MBUSI on request.

ISO/TS 16949 PSQ

Have a continuous improvement program which

includes quality, cost, production, and delivery for

both value and non-value added processes

Per industry accepted

methods addressing entire

business value chain

PSQ

Track PPM for internal and external non-

conforming material , and respond to MBUSI

targets that are not met

Monthly response required

if target set by MBUSI and

Supplier is not met.

PSQ

Maintain all equipment and tools through a

preventative maintenance system

TS 16949 PSQ, Finance, SP

Maintain samples and/or standards for inspection

of product, including painted and molded in color

components.

Per Quality requirements

as established by SQE/LQI

PSQ






Minimum Requirements for Tier One Suppliers Reference / Standard MBUSI, DAG

(Lead Role in Bold Type)

Maintain a system for lot traceability and control

for all product produced

TS 16949, SQAM PSQ

Maintain a contract with an MBUSI approved on-

site sorting company. This company will perform

rework and sorting at the MBUSI plant on an as

needed basis as determined by the SQE/LQI

Keep current

- Daily

- 365 days/year

PSQ

Pay for line shutdown if clearly due to Supplier’s

process or product.

Standard rates as

determined by MBUSI

Purchasing

PSQ PC, Logistics






2 Quality Activities Prior to Part and Process Approval (PPA)

Production and supply capabilities shall be guaranteed for the entire product cycle. To fulfill

this requirement, Supplier Part & Readiness Program (SPRP), according to the VDA standard

or the Advanced Product Quality Planning (APQP), according to the AIAG standard shall be

implemented for all new products, model year changes and changes to current product. The

Supplier shall align the required system within the Supplier Quality group.

2.1 Sampling Planning The supplier is obliged to notify the SQE/LQI of any new parts and any modifications to a

part and/or a process or his purchased parts and their suppliers. In advance of the PPA

procedure, a sampling plan is conducted by the SQE/LQI, who defines the deadlines for

the supplier to submit its PPA report (depending on project deadlines, service scheduling

or demand at After Sales) as well as the submission level and specific documents

required for the sampling scope.

The sampling plan can be done as part of a “Sampling Coordination Meeting” or

“BemusterungsAbstimmungsGespraech”, (BAG) together with the suppliers and the

specialist departments carrying out the inspections and shall be held after the parts are

“W” or “_” Released.

The goal of the BAG meeting is to match the SQE/LQI’s expectations and the supplier’s

sampling plan in regards to the content and quality of the PPA report including any

attachments and sample requirements. The outcome of the BAG meeting shall be

documented in writing using SQMS Attachment #39 (“Sampling Planning Form” or

“Bemusterungsplanungsformular”, BPF), or in an appropriate software solution and

attached to the PPAR document via SQMS.

2.2 Supplier Organization As early as possible in the program the Supplier shall define the individuals responsible

for carrying out the SPRP/APQP. Personnel performing those functions shall have

sufficient, well-defined responsibility, authority, and organizational freedom to identify

and evaluate quality problems. In addition, these individuals shall initiate, recommend,

and/or provide solutions.

Prior to the Engineering Trial (ET) build the Supplier shall have an emergency Quality

Support Contact for support of each shift of the MBUSI manufacturing facility. The

contact shall be responsible for initiating containment and problem solving activities.

This contact information shall be provided to the Supplier Quality group, along with

immediate updates to any changes. The supplier shall submit the information using the

Supplier Contacts and Quality Assurance Representative form (SQMS Attachment#38-A).






2.3 Program Management It is the responsibility of the Supplier to manage its systems and suppliers to meet

MBUSI's requirements. The supplier shall notify MBUSI at the earliest possible time of

those items which affect critical timing paths (Tier 2 supplied parts) or have unusual

requirements (i.e., long lead-times for raw materials, tooling, equipment, gauges or test

completion). This notification is necessary to assure that appropriate steps are taken to

prevent delays in vehicle launch or design change implementation.

Supplier Part History Reports and Gantt Charts shall be provided as required by SQE/LQI

and PC Department. These plans shall consider all fixtures, dies equipment, gauges,

testing, PPAP requirements and program reviews for the product. The Supplier shall

require the same level of documentation from its Tier 2 suppliers to meet

quality/delivery targets. Selected Tier 3 suppliers will also be required to provide this

documentation, based on Supplier Quality requirements.

2.4 VDA-RGA Program The target of VDA-RGA (Maturity Level Assurance) is prevention of risks in supplier

management by employing cross-functional cooperation through the integration of the

external supplier.

Depending on the ABC part-classification, supplier-self assessment or round table

meetings are possible at MBUSI/Daimler or at the supplier location. One VDA-RGA

evaluation will be held for each quality gate. Supplier and customer can highlight issues.

The regular reporting of the cross functional cooperation assures, that project

management and departments are informed quickly.

2.5 Supplier Audits

2.5.1 VDA 6.3 Process Audits VDA 6.3 process audit is an evaluation of the suppliers planning, development, and

realization processes for all product-related activities.

The VDA 6.3 process audits focuses on seven major areas:

• Product Planning

• Product Realization

• Process Planning

• Process Realization

• Sub-supplier Activities

• Final Product and Process

• Customer Satisfaction






For new product launches or new suppliers, an initial Potential Analysis (PA) should take

place at the supplier between “P” and “_” release of the product. The initial PA will cover

all sections of VDA 6.3. Periodic follow-up audits will take place (usually every 3-4

months) until the product is ready for final PPA approval. The evaluation for Section 6:

Product and Process will take place as part of the PPA of the product.

The Supplier Quality will notify the supplier if an audit is required and will coordinate all

pre-audit requirements at that time. Additional audit reviews may be required for

existing production suppliers based on their supplier classification (A, B, C ranking). The

audits should take place on an annual or semiannual basis.

2.5.2 TRL Audit The TRL audit (Technical Revision of Supplier) is used for short notice audits of suppliers

for reasons such as a sudden run of bad parts, degrading Quality scores, or significant

quality concerns where a VDA 6.3 audit might not be the most useful tool.

The TRL focuses on the following points:

• Subcontractor management (Supplier Tier N management)

• Incoming goods and stock (receiving)

• Manufacturing process

• Takt time / Material flow

• Product audits / Process audits / System audits conducted by the supplier

• Annual requalification requirements

• Collection of all variations and deviations found during the audit

2.5.3 PFA Audit The PFA Process Assessment is an additional process audit tool which can be used when

a complete VDA6.3 Process Audit is not necessary.

Below are a few situational examples of when a PFA Process Assessment can be used:

• An established supplier, must implement process corrective actions (a quality

spill)

• An established supplier, must move or replace minor production equipment /

tooling

• An established supplier, has the need to change existing process(es)

• An established supplier, adds additional production line(s)

• An established supplier, adds additional product(s) to existing production line(s)

An established supplier is a known supplier to MBUSI/Daimler and the SQE/LQI has

conducted multiple VDA6.3 Process Audits at the supplier and should be very familiar

with the supplier’s processes and their quality performance history.






2.6 Key Quality Characteristics During the product design stage, as part of the SPRP/APQP process, the supplier shall

begin the identification of Key Quality Characteristics (KQC’s). KQC’s are those

dimensions, features, and requirements that shall be closely controlled or confirmed in

the manufacturing process to assure customer satisfaction, engineering specification

conformance, regulatory compliance, vehicle safety, and/or manufacturability by MBUSI.

KQC’s are further defined as follows:

• Safety/Regulatory Characteristics are critical product specifications that can

affect compliance with government regulations or safe function of the vehicle. As

commodity experts the Supplier shall inform the SQE/LQI of any regulatory

requirements pertaining to their product. These requirements are documented

on the Supplier Inspection Standard, Process Control Plan. Suppliers with

regulatory product (i.e., FMVSS, EPA) are required to maintain applicable data for

this product. For parts with safety-relevant (DS) / certification-relevant (DZ)

features, corresponding identification of the documents created during the

sampling procedure (i.e. sampling plan) must be given.

In deviation from VDA Volume 2, the following requirements apply to the DS/DZ

characteristics specified in the specification documents (e.g. drawings, CAD data

records):

– Short-term process capability Cmk ≥ 2.00

– Long-term process capability Cpk ≥ 1.67

• Product Characteristics are features on the drawing or specification that are

significant for customer satisfaction, reliability, fit, form, or function (i.e., color,

diameter, surface).

• Process Characteristics are those Supplier process parameters for which

variation shall be controlled and monitored on an ongoing basis to assure

conformance to specifications and customer satisfaction (i.e., feed rate,

temperature, pressure).

All KQC’s shall be controlled/confirmed by one of the following methods: mistake

proofing of design; mistake proofing of process with sensors/fixturing; automated 100%

inspection; proven process capability through Statistical Process Control; or in a method

agreed upon by the Supplier and the SQE/LQI. Suppliers may be requested to submit

KQC data to MBUSI on a regular basis.

All Safety and Product Characteristic KQC’s shall be documented on the Supplier

Inspection Standard, SQMS Attachment # 38-D. All KQC’s shall also be identified on the

Process Control Plan. <DS> and <DZ> call out on the DAG drawing or Master Data Sheet

in CATIA shall be documented on the Process Control Plan.






2.7 Inspection Gauge Requirements The Supplier is responsible to manufacture inspection gauges for all products as needed

unless otherwise agreed upon by the SQE/LQI. The inspection gauges will be used to

monitor the dimensional and functional quality of the product being produced. The

inspection gauge shall also assist the supplier in the checking the KQC’s. The SQE/LQI

and the Supplier shall agree upon the type and number of inspection gauges necessary.

All inspection gauges shall be constructed to the requirements of the MBUSI Gauge

Standard. All inspection gauge designs for final shipped product shall be submitted to

and approved by the SQE/LQI prior to manufacture. Some possible types of inspection

gauges are CMM holding fixtures attribute gauges, form gauges, templates, and SPC

gauges capable of line speed. The characteristics to be monitored on the inspection

gauge and their nominal dimensions and applicable tolerances will be listed on the

Supplier Inspection Standard.

If datum and locators are not noted on the drawings, an agreement on datum and

locators shall be reached and documented on the Functional Gauge Plan and Approval

Request (FGAR). Whenever possible, the datum and locators and locators should be

representative of the vehicle application of the product. Tolerances should also be

clarified at this time.

The supplier shall seek approval for gauge design by submitting the FGAR, SQMS

Attachment # 38-E, along with any additional documentation requested by the SQE/LQI.

Gauge Approval is a requirement for PPA. After receiving approval, the supplier shall

proceed with the gauge build process. Prior to using the gauge for series production the

supplier shall perform Measurement Systems Analysis (MSA) and submit the results of

the MSA along with the completed FGAR to the SQE/LQI.

2.8 Testing Requirements and Responsibility The Supplier and MBUSI/Daimler shall define the testing requirements and specifications

required to validate the product, both as a stand-alone component and as a component

of the vehicle system. The Daimler development engineer will have the lead in defining

the testing requirements.

The required testing and estimated timing for both component level and in-vehicle testing

should be documented on the suppliers testing plan or the Testing Requirements

Worksheet, SQMS Attachment #38-F. This activity is not intended to supersede any

contractual obligations of the Supplier, or Supply Agreement, or any regulatory

requirement, such as, Federal Motor Vehicle Safety Standards.

Design Validation testing shall be completed prior to PPA process.

Changes to part or process may require a re-testing of all or part of validation testing. It

is the supplier's responsibility to discuss testing requirements with Daimler development






and SQE/LQI for product changes after initial part approval. SQE/LQI reserves the right

to add additional testing requirements based on past problem history, unique

environmental requirements, etc.

2.9 Pre-Launch Control Plan and Launch Containment Plans The Supplier shall prepare a Pre-Launch Control Plan for all products supplied for pre-

launch trial builds and the production ramp-up phase. This document shall be prepared in

accordance with VDA Volume 2. The Pre-Launch Control Plan shall be submitted to and

approved by the responsible SQE/LQI prior to the supplier commencing the Null Series,

PT1, PT2 and Series Production parts manufacture.

The Pre-Launch Control Plan has two purposes:

1) To outline the process controls for all features this shall be controlled during early

builds when supplied product is not from the final production process or the final

production location

2) To detail the extraordinary process controls and product checks that will occur during

the launch containment phase for the build of the first x# vehicles (number to be aligned

with SQE/LQI.

2.9.1 Plan Requirements 1. Identification of the person responsible for the containment process

2. Pre-Launch control plan details should consist of additional controls, inspection

audits, and testing to identify any non-conformances during the production process.

Depending on the production process and set-up, machinery, fixture, tooling, operator,

material/components, preventative maintenance and climate, additional controls for the

pre-launch control plan should include the following:

• Increased frequency/sample size of receiving process and/or shipping

inspections

• Mandated sub-supplier containment and or sub-supplier support/audits

• Addition of inspection/control items

• Increased verification of label accuracy

• Enhancement of process controls such as error proofing

• Error proofing validation through introduction of known quality sample parts

(Good & Bad Masters)

• Increased involvement and visibility of top management

3. Identification of the measurement equipment and data collection devices to be used

where applicable

4. A reaction plan for any non-conformances that are discovered






2.9.2 Pre-Launch Control Plan Document the Pre-Launch Control Plan, including functional testing and error proofing,

using the Control Plan format referenced in the AIAG Advanced Product Quality Planning

and Control Plan Reference Manual. The development and documentation of the Pre-

Launch Control Plan are expected to occur during the Advanced Product Quality'

Planning process. The Pre-Launch Control Plan is not a substitute for the Production

Control Plan but is over and above the Production Control Plan and is used to validate it.

2.9.3 The Launch Containment Process The Launch Containment Process should be used for all pre-production requirements

(e.g., Null Series, PT trials and selected running changes that require PPAP) and for the

production ship quantity or duration specified by the SQE/LQI or until the Production

Control Plan is validated, whichever occurs later. The specified quantity or the specified

duration is intended to reflect the MBUSI plan to full production rate.

To indicate compliance with the Launch Containment Process, all RAN numbered tags

shall be signed by a designated senior management representative at the supplier,

typically the highest level manager at the production facility.

2.10 Process Flow Chart, Control Plans and FMEA The Supplier shall submit a Process Flowchart, Process Failure Mode and Effects Analysis

(PFEMA) and Control Plan to the responsible SQE/LQI at the dates listed on the

SPRP/APQP Status Report, or other mutually agreed upon dates. These documents shall

be prepared in accordance with the AIAG Failure Mode and Effect Analysis and the

Advanced Product Quality Planning and Control Plan (APQP) reference manual. These

documents shall depict the manufacturing process and inspection points from beginning

to end (incoming material through final shipping) and include all KQC’s (i.e. <DS>, <DZ>).

MBUSI requires the supplier to annually re-validate the aspects of the product that affect

safety and durability. These requirements shall be listed on the last page of the Control

Plan.

The control plan is the main document that defines the manufacturing process. The

Supplier may not change any element of the approved manufacturing process, control

plan or rework processes without receiving prior approval from the responsible SQE/LQI.

The instructions for requesting a change to these documents and processes are outlined

below in the PPAP Requirements and Approval section of this manual.

2.11 Supplier Inspection Standards Supplier Inspection Standard (SIS) shall be submitted by the supplier for every shipping

unit or part family. The Supplier Inspection Standard, SQMS Attachment #38-D, is a

controlled document and shall match the current released engineering level of the

suppliers shipping unit.






The SIS has multiple purposes:

• The first purpose is to document Safety and Product KQC’s (features which

should be checked on the functional inspection gage associated with the part).

• The second purpose of the Supplier Inspection Standard (SIS) is to define actual

tolerances from the general tolerance publication that may be applied to certain

features of the product.

• Thirdly, the SIS is used to document any other important product quality

characteristics as agreed between the Supplier and the SQE/LQI. These may

include characteristics, such as, appearance criteria, gap information, color

requirements, surface finish, and general dimensional and position requirements.

• Finally, the SIS is used to document the data that shall be collected and reported

to the MBUSI Supplier Quality for each engineering and production trial, from Null

Series to PT3.

The SIS shall be submitted to and approved by the SQE/LQI in the timeframe listed in

the SPRP/APQP, or other mutually agreed upon date. This form is to be updated with

each change revision.

2.12 Part E-Level and Q-Level History Tracking For each part, the supplier shall establish a Part E-Level and/or Q-Level History Report,

SQMS Attachment #38-G. The Part E-Level and Q-Level History Report list the change

status of the production process by means of the E-Level or Q-Level.

The E-Level and Q-Level of a product describes the exact drawing and geometry level

(e.g., KEM) and, in addition, all manufacturing engineering conditions and/or process

modifications not associated with an engineering change, such as: changes to raw

material sources, manufacturing locations, PPAP sample iterations, tracking of additional

tooling capacity being brought into production, etc.

E-Level, also known as development level is used to identify parts prior to PPA approval

(i.e. Null Series parts). Q-Level is used to identify the quality level of production parts

during the PPAP approval.

Changes to part geometry or design will be tracked on the ZGS level. The parts

submitted for initial PPAP approval shall be marked as Q1. Each time a PPAP is

submitted for a product the Q-Level will increase.






2.13 Supplier Portal Applications Suppliers Supplier shall request access to the following applications via the Daimler

supplier portal:

• Supplier Quality Management System (SQMS) – an IT system that supports

the sampling, complaint, series test report and requalification process for

purchased parts.

• start Supplier Communication (SC) - with start represents the date

communication between Daimler AG and external or internal suppliers supported

by electronic systems.

• MBUSI Supplier Communication Guide – a web-based communication by

MBUSI departments to suppliers (i.e. SQAM). This is accessible via the

Collaboration Teamplace (CTR) in the DAIMLER supplier portal.

Supplier is responsible for registering for user access to the Daimler supplier portal:

https://daimler.portal.covisint.com/web/portal/home






3 Production Process and Product Approval (PPA)

As per VDA Volume 2 Chapter 4.1, the PPA procedure should "provide evidence before the

production startup that the requirements agreed in the drawings and specifications are

fulfilled. The completed PPA proves that customer demands, specifications and other

requirements (e.g. laws, standards, etc.) have been correctly understood and implemented.

Consequently, the PPA procedure is the final verification of the product, production and

transport planning process, and - in the event of a positive result - will result in release for

series production. The procedure describes the boundary conditions that permit customers

and suppliers to configure the PPA in a practical manner."

In addition to the scope specified in VDA Volume 2, the PPA process must also be carried

out for software and standard parts unless agreed otherwise.

If delivery conditions are described by several item numbers, the corresponding processes

and generated/amended product features of the delivery condition must be presented in the

submission of samples in addition to the component features.

MBUSI can request a PPA report for the components in a delivery scope with Daimler item

numbers.

3.1 Series Production Approvals of Other Daimler Plants If the supplier has already received series production approval from a Daimler location, a

copy of the PPA submission and samples is to be submitted to the new Daimler location

in order to receive plant approval. Supplier needs to coordinate this activity with the

SQE/LQI.

3.2 Execution of the PPA Process If a PPA process trigger caused by the supplier arises, the supplier shall provide

notification of this trigger at least six months prior to planned implementation. In

justified, exceptional cases, deviating regulations may be agreed with SQE/LQI/LQI for

series production approval. Relocation is not permitted in the start-up phase. Notification

of relocation must be issued six months in advance and requires approval from Daimler.

MBUSI specifies a sampling date to the supplier. Even without a separate purchase order,

the supplier shall deliver sample parts by the above mentioned date, unless MBUSI

expressly dispenses with delivery.

Prior to the PPA process, the documents specific to the sampling scope and the number

of samples required are specified in sampling planning, the submission stage. In addition

to the technical sample (Q status), a variant sample (A status) must be provided for parts

distinguished by supplementary code 2 (color, language, etc.).






In the case of tools for parts where the surface structure is integrated in a separate

production step, the PPA process is carried out on the basis of “other samples” with a

development status within the meaning of Chapter 4.5.2 of VDA Volume 2. Approval for

integrating the surface structure is issued by the department responsible for series

production approval.

In the event of deviations, the supplier must obtain advance written approval (deviation

permit) from the responsible Daimler development department and submit it for

sampling. The corrected status must be presented within the scope of subsequent

sampling prior to the expiry of the deviation permit.

The relevant product and process characteristics for which capability studies are to be

carried out are to be coordinated with SQE/LQI. Until the process capability parameters

have been verified, the characteristics are checked 100% by the supplier.

3.3 Identification/Labeling

3.3.1 Identification of Parts For parts which sampling has not yet been performed, they must be identified with their

development status according to the part life record. In consultation with SQE/LQI, these

parts must be presented as “other samples” and serve the exclusive purpose of design

stage validation. Series approval is not granted for “other samples”.

Unless otherwise agreed, a red sticker (Ø approx. 20 mm) specifying Exx (whereby xx is

the sequential index) must be used.

Separate labeling of sample parts and parts for production tests can be demanded by the

respective Daimler location.

For passenger cars, starting with the initial sampling of samples for the PPA, these must

be identified with a white sticker specifying the quality status in accordance with the

quality part life record (Qxx) and stating the color status in accordance with the color

part life record (Fxx) for parts with supplementary code 2 until the completion of the final

Daimler production test/try out.

Coordination with the client Daimler plant is required for body shell parts. In justified

exceptional cases, deviating regulations may additionally be agreed with the client

SQE/LQI for series production approval.

3.3.2 Shipping Label






All MBUSI production part suppliers shall have a process in place at their production

facility and any other location in which parts are shipped to ensure that the shipping

labels on the product container complies with MBUSI “Parts Identification Label –

Barcode Standards”. This system should include at a minimum one-verification loop

before the final product is shipped to MBUSI or any MBUSI part

consolidation/sequencing center.

MBUSI reserves the right to make the ZGS/Q/E level labeling mandatory in certain cases

(i.e. Production Trials).

3.3.3 Part Specific Labels and/or Bar Codes Any product that requires a part specific label or bar code shall meet the label

requirements defined on the production part print or part data. The Development

Engineer, MBUSI Production Control and/or SQE/LQI may provide additional

requirements.

3.3.4 IMDS Requirements The IMDS (International Material Data System) is the automobile industry’s material data

system. IMDS data is strictly needed as a certification document about compliance to

legal substance bans. IMDS number is needed for purchased parts during the

submission of sampling.

The plant code for Plant 1380/ Mercedes-Benz Tuscaloosa is ID 8302.

For more information: https://www.mdsystem.com/imdsnt/startpage/index.jsp

3.3.5 FDOK Requirements Any product that has FDOK requirements shall meet the requirements as defined on the

part print or in the part data.

3.4 Trigger for the PPA Process






The following Matrix shall be used in order to trigger a PPA submission:

Trigger Execution of

PPA

Information to

Purchasing

Information to

Logistics

New Parts X

Product modifications X

Product relocation X X X

Production process modification X

Long-term production stoppage, > 12 months X

Use of new, modified or replacement tools (not

applicable to metal removing tools)

X X X

Change in 2nd tier suppliers (Daimler 2nd Tier). In

the case of parts with special characteristics (DS,

DZ), the above obligation exists up to the supplier

responsible for the characteristics

X X X

Modifications in the supplier’s purchased parts X

Subsequent sampling X

Requalification X

3.5 PPA Documentation Submission Requirements






PPAP requirements will vary depending on product, product change complexity and/or

supplier performance. Unless otherwise agreed between the department responsible for

series production approval and the supplier, documents and sample corresponding to

submittal level 2 will be made available. Specifics of timing, quantity of sample parts and

submission level should be defined during the BAG.

Submission Level Diagram:

No. Trigger

Submission Level

1 2 3

1 PPA report cover sheet � � �

2 Test results (e.g., dimension, function, material (strength, physical

properties), haptics, acoustics, odors, appearance, surface,

reliability, process capability, weight, transport means, EMC/ESD

test)

� �

3 Samples (number per nest: only 2 parts in case of color sampling) 5 5 5

4 Documents (e.g., customer drawing, CAD data, specifications,

approved design modifications)

� �

5 Supplier design and development approvals if responsible for

development

� �

6 System FMEA Product E

7 System FMEA Process E

8 Process Flow Chart (Production and Inspection Steps) � �

9 Production Control Plan (control plan) E E

10 Inspection and equipment list (product-specific) � �

11 Inspection and equipment capability study, as appropriate (result) � �

12 Confirmation of compliance to legal requirements, if agreed with

Daimler (e.g. environmental, safety, recycling) � � �

13 Material date sheet via IMDS (ID No. must be entered on the PPA

report cover sheet) � � �

14 Software test report (Annex 4) � � �

15 List of materials, with drawing if requested by Daimler (Annex 5) � �

16 List of work and test instructions with approval status � �

17 Tools list (with unit numbers/number of nests and statement on tool

quality)

� �

18 Evidence that series production cycle time has been achieved � �






No. Trigger

Submission Level

19 Overview of suppliers purchased and in-house parts and process

approval status

� �

20 Written confirmation that criteria are met in accordance with series

production maturity, part and process assessment matrix

� �

21 Quality/color part life record (Annex 1) � � �

22 Sample card (Annex 5, only at the request of the relevant Daimler

plant) � � �

23 Paint system approval by Daimler according to DBL 7384 � �

E Requirement for the relevant submission level, for perusal only,

documents remain with the supplier

3.6 Sample Parts The supplier shall provide 5 sample parts for PPA approval, unless otherwise specified in

BAG. For new products and model year changes the parts shall come from the same

manufacturing lot as the parts for PV testing and/or shipments for the PT1 build.

For coated parts where a dimensional check of the uncoated part was agreed with the

SQE/LQI, the supplier should submit 3 uncoated parts. For castings, forged or molded

parts, the supplier should provide sectioned pieces in order to demonstrate compliance

with the specified wall thickness, radii, etc. The supplier shall be able to provide

additional samples with agreed upon specifications between SQE/LQI and the supplier

for special purposes (i.e. painted parts). At MBUSI’s request the supplier shall also be

able to supply component part samples previously approved and supplied to the trial

builds.

For sheet metal stamping dies, if the die steel is not coated at the time of the initial

“PPAP” or “Run-at-Rate (VDA Section 6)” review, it shall be noted, and the area affected

on the parts shall be reviewed and approved. If the parts are not acceptable for series

production, the parts cannot be Green.

As described in section 2.12 of this manual, the Sample Parts for the initial PPAP shall

have a Q-Level. Each PPAP Part shall be visibly marked with the Q-Level by putting a

sticker considering the following requirements:

• The diameter of the sticker shall not exceed 20 mm

• The location of the sticker with the Q-Level shall be easily found on the part

• The Q- Level shall be easily readable (recommendation: shape=round; sticker

color=white; font=black).






As previously stated, for current products the Supplier and the SQE/LQI will determine

the PPAP documentation and sample requirements during the BAG meeting for each

specific change.

3.7 PPAP Sample Part Submission Procedure Shipment of sample parts shall be made separate from production shipments. Sample

parts shall be shipped in separate containers and addressed to:

Daimler AG

Werk Sindelfingen

Abladestelle 564 GPEC

D-71059 Sindelfingen

Germany

After initial approval of a part, subsequent PPA samplers can be requested by SQE/LQI

upon request. In addition, the container and the initial samples themselves shall be

identified with a tag. This tag shall be affixed in a manner appropriate for volume

shipments and shall be clearly marked “initial sample” and shall state details of the Q-

Level and the drawing geometry level (ZGS). In addition, a written record of any special

agreements (e.g., deviation approval) shall be included with the initial sample.

If required by the SQE/LQI, any models, gauges or test devices requested by MBUSI and

which the supplier has in its possession shall be delivered along with the submitted initial

samples.

According to the Mercedes-Benz Terms and Conditions, PPA sample parts including

shipping are “Plannable Start Up Costs” and are therefore NOT subject to be paid

(including Running Changes).






3.8 Approval Status The supplier is notified of the general approval status in the form of a test report via

SQMS. For specific plants, the results of the material test may be transferred with a

separate test report. The supplier receives the IMDS data sheet evaluation via IMDS.

In case of any rejections or conditional release, the coordination of measures and the

sampling plan for follow-up sampling including resubmission/forecast date and number

of required samples is accomplished at the same time as the test report is compiled.

(Exception: Part to be discontinued soon (less than 3 months) or part is issued a part

number. In this case, the SQE/LQI is bound to monitor the situation and, where

applicable, has to introduce appropriate measures).

The rating system used for approval of the PPAP/PPA corresponds to the traffic light-

system:

“Green” - Fulfills customer expectations completely

- Fulfills criteria of evaluating department completely

- Meets all design and development requirements / specifications

“Yellow” - Fulfills customer expectations

- Can remain in the vehicle

- Only non-critical specifications are not fulfilled

- New submission for approval necessary

“Red” - Does not fulfill customer expectations

- Cannot remain in vehicle

- Immediate re-submission for approval necessary

“Supplier production tests/try outs” are generally carried out for new launches and

model enhancements, and the department responsible for series production approval

must be notified within good time so that participation by MBUSI is possible. Approval is

granted if full adherence to all part criteria (3.8.1) is verified and the process criteria

(3.8.2) are met.






3.9 Part Approval Matrix

Part Approval GREEN YELLOW RED

Material Production material

DBL requirements met Production material,

differently processed /

DBL not complied with,

deviation approval

Not production material

DBL Requirements not

met/not tested

Function Function fulfilled,

complies with

specification

Slight deviations from

specification, but with

deviation approval

Function n.o.k. or not

proven, specification not

fulfilled

Dimensions Dimensionally o.k.

No rework

Dimensionally o.k. with

rework or deviation

approval, non-critical

values n.o.k.

Dimensionally n.o.k., no

measurement report, no

gauge

Workability Can be used without

additional expenditure

of time or money

Can be used with

additional expenditure

of time or money

Cannot be used

Appearance

(Surface, Structure,

Color/ Grain)

Part Approval

o.k., no depressions, no

undulations, meets

design intent

Just acceptable,

borderline, specimens

available

Significant deviations,

non-conformities, or

cannot be assessed

Main Tools

(Shaping or

Reshaping Tool)

Production tool Production tool, Fulfills

customer requirements,

Slight deviations from


deviation approval

Experimental tool

Machines

Plant Equipment

Production version at

the production location,

accepted by supplier

and capability

demonstrated

Of same design as that

to be used in

production, or no

quality issues expected

in production

Not similar to production

version, quality issues

expected

Sub-supplier Parts Approved Conditionally approved Rejected or no samples

provided yet






3.10 Process Approval Matrix

Process Approval GREEN YELLOW RED

Secondary Tools

(Cutting/Deburring/

etc.)

Production tool Production tool, fulfills

customer requirements,

Slight Deviations from


deviations but with

deviation approval

Experimental tool,

cut by hand

Logistics Chain As for production with

relevant sequencing

effective dates

determined

Not as for production,

but no quality issues

expected in production

Quality issues expected

Cycle Time

Volume (Run at Rate)

Production cycle time

without special

measures


can be achieved on an

on-going basis with

special measures


cannot be achieved even

with special measures

Workforce All production staff

trained, work/test

instructions available

Selected production

staff trained, work/test

instructions available

No production staff, or

work/test instructions

incomplete

Process Capability Agreed capability index

requirements fulfilled

Agreed capability

indices not reached,

100% inspection

introduced

Capability indices

not proven or established,

no 100% inspection

Inspection and Test

Equipment

All present and

accepted, capability

demonstrated

Equipment only partly

available / accepted,

substitute devices

available

Not available or not

accepted

Production Process for

Sub Supplier Parts

Approved Conditionally approved Rejected or not yet

accepted






3.11 Deviations If the Supplier discovers any deviations with the product, production process, or has not

met the SPRP/APQP or PPA requirements prior to the PPA submission date the

SQE/LQI/Development Engineer shall be contacted immediately to determine the

appropriate countermeasure.

A deviation (i.e. PDR, AWE) is a request for a temporary deviation or waiver from a

product requirement. A deviation is defined as a known or planned departure from the

product requirements, approved process, or documentation. A waiver is an unplanned

departure from the product requirements, approved process, or documentation due to an

error or problem. A deviation is not intended to be used for early implementation of

design changes, or any failure of a supplier to plan effectively.

A “Part Deviation Request” (PDR)/ Abweicherlaubnis (AWE) should be requested from

the responsible SQE/LQI/Development Engineer as far in advance as possible of the

anticipated date of implementation. This type request shall only be made when vehicle

production will be affected (i.e., shutting the production line down). The supplier shall

provide the SQE/LQI/Development Engineer with a written explanation for the request.

This explanation shall contain the following: reason for the request, quantity affected and

the countermeasure to bring the product back to the standard and all necessary

supporting information.

Once all the required information is provided, the SQE/LQI/Development Engineer will

initiate the deviation. MBUSI evaluates the request and communicates the response to

the Supplier. The Supplier shall not deliver product to MBUSI until an approved deviation

with an MBUSI tracking number is received. When product is shipped to MBUSI under a

deviation, a copy of the PDR/AWE should be attached to each product container in a

visible location. The supplier should confirm the tagging location with the SQE/LQI or

reach an alternate agreement as to how the product shall be marked or labeled. This

identification procedure shall be used as long as the product is covered by the PDR.

If the PPA submission does not meet the requirements spelled out in this manual or from

the approved tolerances or standards for the dimensional, appearance, material, or

performance requirements, the deviations shall be noted on the PPA submission.

If the PPA samples, production process, or documentation are not acceptable for

production, the product will receive a “red” or unapproved status. The Supplier will not

be given authorization to make shipment, unless a deviation permit is submitted and

approved for the red items. If the reason for failure is supplier’s responsibility, MBUSI

reserves the right to charge back any cost impact.

If the PPA samples, production process, or documentation are accepted for production

but deviations are present, the product will receive a “yellow” or conditionally approved






status. The deviations will be listed as open issues with action items, responsible

parties, and the anticipated date of closure of each action item within the SQMS system.

If the agreed sampling per part status does not lead to success (rejection or conditional

release due to supplier’s fault), the supplier bears all additional costs incurred by Daimler

which are directly related to the sampling process it is responsible for the negative

result. This does in case of any split sampling. If a Deviation Permit exists, cost

allocation can also be waived. In case of software, also called “yellow list” agreed upon

with Development is to be handled as a deviation permit considering the cost allocation.

3.12 Changes Requiring Re-Submission of PPAP All proposed changes to the previously approved part and manufacturing processes of

the supply chain shall be re-evaluated by the SQE/LQI to determine if the change would

invalidate the current approval status. These changes include but are not limited to items

such as: alternate processes, changes to the process control plans, inspection sample

size/frequency changes, process flow alterations, sub-supplier changes, introduction of

new acceptance standards, changes in manufacturing locations, relocation of equipment

inside a facility, and changes to sub-supplier processes. To request a change, the

Supplier shall contact the SQE/LQI and explain the details of the change. Timing and the

PPA approval requirements can then be determined.

Any change of a sub-supplier shall be pre-approved by Procurement and Supplier Quality

(PSQ). A change of sub-suppliers may void previous testing releases, thus requiring

additional vehicle validation testing by Daimler. The supplier shall gain written approval

from Daimler before relocation of any MBUSI assets. The SQE/LQI may, at their

discretion, also require re-validation of any PPAP in part or whole.

3.13 Delivery of New or Changed Production Product The Supplier is not authorized to ship product during series production until it receives

approval from the SQE/LQI via SQMS system. It is the Supplier's responsibility to

request approval 20 business days prior to shipment, regardless if RAN's are issued.

Five days prior to the first production shipment, the Supplier shall fax completed New

Product Delivery Tags to MBUSI Logistics. This notification is required each time a new

design change level is being shipped. A copy of the New Product Delivery Tag shall be

attached to the exterior packaging of the first 5 production shipments. A copy of the

New Product Delivery Tag is in the MBUSI Supplier Communication Guide. Contact

MBUSI Logistics department for original multi-color tags.

3.14 Tier Supplier Responsibilities The Tier I Supplier of product to MBUSI shall be fully responsible for all tier suppliers,

including those chosen by MBUSI. The Tier I supplier of product to MBUSI shall also be






responsible for verifying the quality of all pass through products (whether tier 2 supplier

is selected by Tier 1 supplier or MBUSI).

The Tier I supplier of product to MBUSI shall have a system in place that follows the

same guidelines for the development of new product and processes with their tier

suppliers as is required by MBUSI for the Tier I. This includes tier suppliers of product

from other facilities within the same company.

The Tier I supplier of product to MBUSI shall have a system in place that follows the

same guidelines for the monitoring of current production product and process with their

tier suppliers as is required by MBSUI for the Tier I. This includes tier suppliers of

product from other facilities within the same company.

The Tier 1 supplier of product to MBUSI shall be responsible for the annual requalification

of the parts.

3.15 Storage Periods Storage periods are based on VDA Volume 1. Following the discontinuation of series

production, the PPA process documents must be archived for 15 years by the supplier

and submitted on request.

3.16 Reporting The method and format of the sampling document transfer must be coordinated with the

relevant Daimler plant. For MBUSI, sampling document must be made available via

Supplier Quality Management System (SQMS). If submission takes place in paper form,

the supplier provides the requested number of copies of the documents.






4 Trial Series Support

4.1 Trial Product Measurement Requirements Measurement information and functional test results are required for parts shipped for

Null Series, ET, PT1, 2 and 3 and/or any other sample parts supplied to MBUSI. This

information will allow for dimensional evaluation of the product as well as support in

problem resolution during the trials.

The guidelines for determining the scope of the data collection for the Sample Data

Sheet (SQMS Attachment # 38-K) shall be the items listed in the Supplier Inspection

Standard (SIS) and the Pre-Launch Control Plan. The following are the minimum

dimensional measurement requirements: all KQC points, attachment holes, attachment

surfaces, and/or mating area to other parts. Other dimensions should be available upon

request from the SQE/LQI, MQI, Development or Null Series Engineering. This

measurement information should be acquired by means of CMM-Measurement or other

equivalent device approved by the SQE/LQI. Go/No go evaluation information on a

checking gauge does not qualify as dimensional measurement information, unless

specifically agreed to by the SQE/LQI. The package of information submitted for the trial

builds (Null Series-PT3) should include the following: a copy of the SIS, a drawing clearly

indicating the measured points, dimensional measurement results, and all necessary

functional test results documented on the Sample Data Sheet. The Sample Data Sheet is

the official document to report all measurement data and should be used by the supplier.

Following are the minimum sample sizes for dimensional measurements per trial:

Null Series: The first 5 parts of each lot plus every 10th part after the initial five-part

measurement (i.e., part number 15, 25, 35)

ET and PT1: The first 5 parts plus every 10th part after the initial five-part measurement

(i.e., part number 15, 25, 35)

PT2: The first part plus every 10th part (i.e., part number 1, 10, 20, 30)

PT3: The first part plus every 20th part (i.e., part number 1, 20, 40, 60)

The supplier is required to perform functional checks on 100% of the trial product, unless

otherwise agreed to in writing by the SQE/LQI. The results of those checks shall be

recorded on the Sample Data Sheet. One copy of the Sample Data Sheet shall be

supplied with the product in or attached to the shipping container. One copy of the

Sample Data Sheet shall be supplied to the SQE/LQI as a paper copy or in an electronic

format. The measured parts shall be identified or labeled so they can be easily matched

to the measurement and test results in the Sample Data Sheet.






Trial product not measured per these requirements shall be checked on a go/no go

gauge. These parts shall be identified with a small green sticker on the product in an

area not visible in the vehicle (does not apply to body in white product).

4.2 Documentation to Accompany Parts For Null Series, the supplier is expected to deliver parts to the Null Series receiving

location by the Material Required Date (MRD) communicated by MBUSI. Below is a list of

the minimum documentation required with the parts shipment:

• Supplier Contacts and Quality Assurance Representatives

• Supplier Inspection Standard (Coversheet/Worksheet)

• Part E-level and Q-Level History Report

• Sample Data Sheet (Part Marking/Traceability)

• MBUSI Open Issues Worksheet

• Reference Drawing (at the current part level)

• Sample Part Data and a roadmap for the data

The supplier shall ensure that this documentation is included with all parts shipments.

This requirement is valid for all production locations including build activities at tool

shops. This information is required throughout the Null Series for effective problem

solving and issue resolution. Failure to comply with parts shipment will require expedited

replacement of parts or shipment of documentation at the supplier's expense. Deviation

from the above requirement should be aligned and agreed with the SQE/LQI .

4.3 Supplier Maturity Vehicle During Null Series one or more vehicles will be designated a Supplier Maturity Vehicle.

During this build critical suppliers will be invited to attend and support with the intention

of the supplier being able to see and quickly countermeasure problems. Selected

suppliers will be notified by MBUSI with the planned build schedule. Any changes to the

schedule will be communicated as soon as known. Designated suppliers are expected to

provide a list of attendees to the responsible SQE/LQI or CLT representative one month

prior to the event. Attendees shall comply with all Daimler plant and Null Series

guidelines while attending Null Series.






5 Production Launch Support

5.1 Launch Containment Plan The supplier shall implement a launch containment plan to support new model start up

as outlined in section 2.9.

5.2 On-Site Supplier Resident Engineers/Supplier Representatives Supplier Representatives are welcomed on-site at MBUSI during our Launch and Ramp-

up phase to assist with coordination activities of their respective supplied parts.

MBUSI will not allow the Supplier Representatives to directly rework, sort or perform any

type of repair on their supplied material or the MBUSI vehicles while on-site at MBUSI.

Supplier Representatives will need to observe all safety and mutilation guidelines while

on-site at MBUSI.

Desk space will not be provided by MBUSI for Supplier Representatives. In addition

phone service and data services are the responsibility of the individual supplier. On-site

supplier representation at MBUSI shall be pre-approved by SQE/LQI or PQE/RQI.

Supplier Representatives who do not adhere to MBUSI guidelines will be asked to leave

the facility.

5.3 Rework and Sort of Non-Conforming Product

5.3.1 Reworking of Non-Conforming Product Under no circumstance are suppliers allowed to rework, repair or modify supplied

material on-site at MBUSI. Any activity of this nature shall be conducted off premises.

Removal of supplied material from the MBUSI premises shall be coordinated with MBUSI

Logistics and/or MBUSI PQE/SQO. All Foreign Trade Zone (FTZ) requirements shall be

adhered to when moving material into and out of the MBUSI facility.

It is the supplier’s responsibility to take all necessary steps to ensure that disruptions to

the flow of material into MBUSI are avoided with regards to rework. Suppliers will be

financially liable for any disruptions to the MBUSI operations caused by non-conforming

product.






6 Series Production Support

6.1 Containment of Non-Conforming Product If the Supplier suspects or knows that non-conforming material has been shipped to

MBUSI, the Supplier shall inform MBUSI without delay.

6.2 Containment MBUSI expects that all supplied material meets the agreed upon quality standards and is

free from non-conformances before being shipped to MBUSI. In the event non-

conformances are suspected in supplied material, a specific short term sort may be

required to ensure non-conforming material is contained before reaching the MBUSI

assembly lines. An on-site sort may be initiated by MBUSI Supplier Quality Operations

(SQO) or Part Quality Engineer (PQE). Only MBUSI personnel or MBUSI approved third

party sorting companies may sort material on-site at MBUSI. Sorting of suspect material

by Supplier Representatives on-site at MBUSI is not allowed.

On Vehicle Containment: Upon discovery of nonconforming parts, MBUSI reserves the

right to conduct an inspection of completed and partially completed vehicles with the

appropriate charge back of time to the supplier's account. Whenever possible, MBUSI

will contact the supplier prior to this inspection and allow the opportunity for an

approved 3rd party inspection company to support the vehicle inspection. MBUSI will

provide a vehicle listing to the inspectors and the inspectors will provide the results to

MBUSI at the end of each shift. On vehicle containment will remain in place until all

suspect vehicles are inspected.

In Route Containment: Within 2 hours of notification the supplier will contract, an

approved 3rd party inspection company to initiate containment of all parts in the MBUSI

plant and conduct the receiving inspection until a good shipment is received. The 3rd

party inspection company will report the results of the inspection to the MBUSI PQE

immediately upon establishing a clean point/RAN.

Shipping Containment: If an on-site sort is initiated, in parallel, all efforts shall be taken

to contain suspect non-conforming material prior to its arrival at MBUSI. Any necessary

steps need to be taken so that a clean point can be established from the supplier and the

on-site sort discontinued. Suppliers shall take all necessary steps to improve their

process as needed to avoid having to sort material in the first place.

In some cases, MBUSI PQE may require that an on-site sort be continued even after a

clean point is established for some time period as verification that the material is non-

conformance free. In the event that a clean point is broken, the containment will be

restarted to obtain a new clean point.






MBUSI expects that clean stock be expedited as needed at the supplier’s expense to

avoid a disruption of material flow to MBUSI operations. This should be coordinated with

MBUSI Logistics and PQE as needed.

Suppliers will be financially liable for any disruptions to the MBUSI operations caused by

non-conforming material.

6.3 Part Disposition Non-conforming material will have a Defective Material Tag (DMT) initiated to remove the

product from inventory and charge back the material cost. Unless otherwise arranged,

material will be returned through the normal logistics system. The Supplier shall arrange

for any expedited shipments or additional delivery other than the normal logistics

system. Expedited shipments shall be made within 24 hours of notification or parts will

be returned to logistics for shipment. MBUSI reserves the right to scrap nonconforming

product if return shipping is not arranged. The Supplier is responsible for all costs

associated with shipping/scrapping nonconforming parts. These include but not limited

to material cost, overhead cost, rework cost and shipping cost.

6.4 Rework Non-conforming product will not be reworked in the MBUSI facility. Any rework at the

Supplier's or 3rd party facility will require MBUSI approval by PDR for this out of process

condition. All costs associated with part rework will be the Supplier's responsibility.






7 Corrective Action/Q-H:ELP

7.1 Corrective Actions All nonconforming product shipped to MBUSI requires a countermeasure to ensure no

repeat occurrences. The supplier is responsible for providing information to the

responsible SQE/LQI/PQE representative identifying the root cause and

countermeasure. Repeat occurrences due to ineffective countermeasures are not

acceptable and require a corrective action (i.e. 5-Why, 8-D, 4Q, CAR).

7.1.1 Reporting Tool The method and format of corrective action must be coordinated with the relevant

Daimler plant (i.e. MBUSI CAR System, SQMS Complaint Management).

7.2 Q-H:ELP Q-H:ELP stands for Quality CHallenges: REcognition, SoLution and Prevention.

7.2.1 Basic Approach Q-H:ELP is a standard process for the Mercedes-Benz Cars (MBC) and its suppliers. It is

a useful tool for tracking and solving critical quality and logistics issues with suppliers.

Q-H:ELP does not only offer the possibility to take quick action, it also enables a

committing and effective process optimization. It ensures that all MBC plants exercise

an area wide and consistent process for quality assurance, and that the suppliers to all

production plants will be involved in the same procedure.

With this process, the detection, solution and prevention of repeated nonconformity has

become considerably optimized. In the case of serious quality issues, the problems will

be dealt with in a three-leveled model. In each level the supplier will directly be informed

and involved in the process of solving the issue.

In this way, Q-H:ELP sets committing standards in solving quality issues – standards that

are equally important to the suppliers as to MBC as a whole. Sustained positive

evaluation and negative quality performance will be taken into consideration accordingly

for new vehicle projects. Suppliers that practice the zero nonconformance strategy and

have solid quality issue solving method will not come in contact with Q-H:ELP.

Q-H:ELP follows an objective of highest priority: a cooperation of highest quality between

MBC and its’ suppliers. This is a 3-level process and works for “New Product Project”,

“Quality Series Delivery”, “Logistics Series Delivery” and “Field Quality”.

• Q-H:ELP 1

• Q-H:ELP 2

• Q-H:ELP 3






Individual criteria, depending on the issue, will be defined in every level of the process.

They have to be met in an individual timeframe to get back to the regular cooperation. If

the criteria are not fulfilled, the process leads to the next cooperation level.

Expenses related with processing the nonconformance issue are charged promptly and

will bear all expenses for necessary support activities.






8 Gauge Standard

The purpose of the Supplier Gauge Standard is to outline the minimum quality requirements

for the Suppliers of Mercedes-Benz U.S. International, Inc. (MBUSI). These requirements are

designed to assure that all products (parts, systems, modules, components, raw materials,

etc.) supplied to MBUSI meet all known drawings, standards, specifications and agreements.

Meeting these minimum requirements helps to assure customer satisfaction. This manual,

however, is not intended to change specific requirements and remedies, if set forth in the

body of the supply agreement and/or any appendix other than this manual, which specific

requirements and remedies in case of inconsistencies shall prevail.

8.1 Scope This standard gives the supplier guidance in the requirements for design, build,

inspection and certification of all dimensional control gages built for MBUSI production

parts. This standard applies to all body-in-white, trim and chassis components. These

standards shall be adhered to for all gages, unless approved in writing by the SQE/LQI.

8.2 Responsibilities The Design approval shall not constitute a waiver or guarantee of responsibility for any

gauge produced for MBUSI. An approved gage design does not constitute a certified or

functional gage.

It is the responsibility of the supplier to meet the requirements called out in this

standard. If there are any questions or concerns, contact the SQE/LQI. Any deviations

from this standard must be approved by the SQE/LQI in writing.

8.3 Requirements

8.3.1 Kickoff Meeting

A kick-off meeting will be held between the Supplier and the SQE/LQI to review the

suppliers’ proposed gauging concept for the production part. In this meeting the supplier

will provide a pre-launch Process Control Plan along with a process Flow Chart and a

copy of the latest released production part print or CATIA data file. This Control Plan

should include all process control points with the points where process gauging will be

used, highlighted. These points should also be highlighted on the process flow chart.

The supplier will submit a Functional Gauge and Approval Request (FGAR) and a Supplier

Part Inspection Standard (SIS) for the final shipping unit. These should be provided at

the kick off meeting. A FGAR will also be provided for the other process gauges called

out in the control plan. (A SIS is required for the shipping unit only.) If there is no datum

scheme called out on the production part print or in the CATIA data file, the supplier

should propose a datum scheme and provide that information to the SQE/LQI prior to

this meeting. If there are no significant characteristic (SC) or key quality characteristics






(KQC) points called out on the production part print, the supplier should propose an

SC/KQC plan by listing the points on the SIS form and checking the KQC box and

provide that information to the SQE/LQI prior to this meeting.

The following criteria will be used to determine if the supplier can begin the gauge design

process:

• Review of the production part print and the CATIA data file

• Review of the Process Flow Chart and pre-launch Process Control Plan

• Review the FGAR sub-processes

• Review the FGAR and SIS for the final shipping unit

• Determine if the process control system and proposed gauging will insure that

the production parts will meet the design intent and dimensional requirements

8.3.2 Design Approval

Once the gauge design is complete, the supplier shall submit a copy of the final gauge

design along with the FGAR and SIS to the SQE/LQI for approval, before the hard tooling

build can begin.

8.3.3 Final Approval

The supplier is responsible to perform the final buy-off of the gauge at the gauge

manufacturer per the gauge buy-off requirements listed in section 8.3.7. The supplier

will maintain a copy of the buy-off data at the manufacturing facility where the gauge is

being used.

8.3.4 Production Implementation

The SQE/LQI will perform final production approval of the gauge during the PPA

approval.

8.3.5 Engineering Changes and Modification to the Gauge

All engineering changes that have an effect on the gauge and all modifications to the

gauge will follow the same process and be reviewed with the SQE/LQI.

8.3.6 Build Requirements

8.3.6.1 General Requirements

The purpose of this build requirement section is to insure that there is a uniform build

standard for all MBUSI production part gauges. If the supplier has gauge build standards

that meet or exceeds these general requirements, the supplier standards can replace

sections 8.3.2 through 8.3.6.10, with written approval from the SQE/LQI.

8.3.6.2 General Design

• All gauges shall be designed in metric and built with metric components






• The gauge shall address all tolerances as shown on the production part print/or

in CATIA data file

• The fixture base will be parallel to the X, Y, or Z plane of vehicle unless otherwise

agreed by the SQE/LQI

• Design Considerations:

• Operator and maintenance personnel safety.

• Simplicity in operator part loading without restrictions or interference’s

• Free accessibility to all components for ease of maintenance and replacement.

8.3.6.3 Bases

• All gauges will have a steel or aluminum base unless otherwise agreed by the

SQE/LQI

• The base shall be sized so that all clamps and movable components do not

overhang the edges of the base when in the open position. Also, there shall be

sufficient surface provided on the base for mounting interchangeable tooling,

inspection equipment

• All gauge bases shall have jig feet in the four corners at a minimum

• All CMM alignment features shall be clearly identified on the base

• Color of base to be per Daimler specification

8.3.6.4 Body

• The gauge body shall be constructed of steel, aluminum, or composite material

upon agreement with the SQE/LQI

• All features will be NC machined to the math data

• No shims or adjustability shall be allowed in any gauge

• All units mounted to the base or body of the gauge will be doweled and labeled

8.3.6.5 Datum

• The datum, as indicated on the production part print, CATIA data file, SIS or

FGAR, will be used as locators on the gauge. Any datum that is used other than

primary, secondary, and tertiary (datum 1 – 6) shall be removable.

• All datum points shall be clearly identified on the gauge

• All 2-way and 4-way location pins shall be tapered with an angle of 5° - 10°.

Diamond shaped 2-way location pins must be keyed to prevent rotation

• All datum surfaces shall be the same size called out on the production part print,

CATIA data file, SIS, or FGAR

• All datum surfaces shall be hardened steel and inserted onto the fixture body.

8.3.6.6 Clamps

• The MBUSI SQE/LQI must approve all clamp points.

• Clamps on “A” surface of trim parts should be avoided.






• Clamps shall be mounted to the gauge base not to the body of the gauge.

• All clamps shall be 90° to the part surface.

• Corner clamps shall clamp along the bisecting line of the two corner surfaces

• All clamp contact points on datum surfaces shall be centered on the datum.

8.3.6.7 Pins

• All holes requiring pins checks (position and/or size) will be determined by

agreement between the SQE/LQI and the supplier on the FGAR.

• A hole location pin shall use the nominal hole size minus the hole size tolerance

and location tolerance to determine the gage pin diameter

• A threaded hole location pin shall use the minor diameter of thread minus the

locational tolerance for the pin size.

• All gage pins shall slip fit into standard size bushings. The bushings shall be press

fit in nominal position in the gage.

• A slotted hole size shall be checked by two independent pins – one for each

dimension.

• All gauge pins are to be hardened steel.

• All pins must be attached to the gauge and labeled appropriately.

8.3.6.8 Flush and Feeler Checks

• Feeler clearance gaps to be either a 3mm or 6mm nominal gap, as agreed upon

by the SQE/LQI and the supplier on the FGAR.

• All flush and feeler checks are to be normal to the nominal part surface.

• All stamping and assembly gauges for closure panels shall have complete

periphery gauge bars with all feeler checks being 3.0mm gaps and flush checks

to be zero (nominal).

• Feeler and Flush check requirements for all other parts are to be agreed upon by

the SQE/LQI and the supplier on the FGAR.

8.3.6.9 SPC Checks

• All SPC bushings to be made from hardened steel

• Calibration for SPC indicators to be fixed to the gauge base

• Sections 8.3.2 through 8.3.6.10, with written approval from the SQE/LQI.

8.3.6.10 Identification

• All gauges for MBUSI supplied parts shall be clearly identified with the following

information:

• MBUSI Part Name

• MBUSI Part Number (or part number series)

• KEM Level and ZGS level






• Last certification date and date due for next certification

• This information must be permanently attached to the gauge.

8.3.6.11 Build Tolerances

Feature Location Size

Location Pins ± 0.05 mm ± 0.01 mm

Datum Surface ± 0.05 mm

Flush Surface ± 0.15 mm

Feeler Surface ± 0.15 mm

Stab Pins ± 0.10 mm ± 0.01 mm

SPC Position on Gauge ± 0.50 mm

SPC Location to Check ± 0.05 mm

8.3.7 Buy-Off Requirements

The supplier shall have a documented procedure showing how the gauge verification

process is accomplished. This plan should include a verification plan at the gauge

manufacturer and at the user facility.

8.3.7.1 CMM Certifications

• The gauge shall be verified by CMM inspection to the latest production part data,

not to the gauge data.

• Gauge verification points should, at a minimum, include:

a) Maximum distance between inspection point is not to exceed 100.0mm.

b) Minimum distance from a tangent is 3mm.

c) For curved surfaces reduce point spacing to 15-25mm.

d) For radius up to 20mm generate 3 points - both ends of tangent and at center for

radius.

e) For radius 20 to 40 mm generate 5 points – both ends of tangent and 3 equally

spaced on radius.

f) For radius 40 40mm and larger generate 10 points - both ends of tangent and 8

equally spaced

• When generating CMM inspection data, at a minimum, the following points should

be used:

a) Datum blocks - generate (5) points (1) at each corner and center.






b) Flush and feeler check rails - make rows of points at 5mm and 13mm from hard

corner edge.

c) Template (knife-edge) - make (1) row of data at .75mm from hard corner edge.

d) Template (contour edge) - make (2) rows of data 1mm from each side of blade.

e) Sight checks (irregular shaped hole) - make a row of data 3mm from top surface.

f) Sight checks (round or slot holes) - make a row of data 3mm from top surface to

check size and location, if it's a slot check the angle. Project nominal to part

surface.

g) Plug checks (round or slotted holes) - make 2 depths of cylinder check points to

determine size and location.

• The supplier shall maintain this information on site at the user facility

8.3.7.2 Gauge R&R Requirements

• All gages shall pass an approved Gauge Repeatability and Reproducibility

procedure as outlined in the AIAG Measurement System Analysis manual

• Guidelines for acceptance are as follows:

a) Under 10% error is required for critical product characteristics

b) 10% to 30% may be acceptable based upon the importance of the application. I.e.

non-critical product characteristics, cost of gage, cost of repair, etc. Acceptability

shall be determined by the SQE/LQI

c) Over 30% error, the measurement system needs improvement. The supplier shall

identify the problems and submit proposed corrections to the SQE/LQI.

8.3.8 Maintenance Requirements

8.3.8.1 Storage

• The supplier is responsible to provide proper storage for the gauge.

• Proper storage is considered protection from dirt and damage so that the

environment in which the gauge is stored has on effect on its performance.

8.3.8.2 Repair and Maintenance

• The supplier shall have a gauge repair and maintenance system at the user

facility.

• The repair and maintenance system shall, at a minimum, consist of the following:

a) An individual assigned to be responsible for the system

b) A frequency of inspection assigned to each gauge maintained on a master list

c) A system for repairing or replacing missing or damaged gauge components






8.3.8.3 Re-Certification

• The supplier shall adhere to the requirements for certification and calibration as

stated in Section 7.6, Control of Monitoring and Measuring Devices in the TS

16949 manual.

• A gauge re-certification program with a frequency of no less than once per year

must be in place. This re-certification program shall include verification of the

GR&R, if required by the SQE/LQI






9 Supplier Evaluation System

The Supplier Evaluation System (SES) is a summary of a supplier’s Quality and Logistics

performance. The rating is calculated once per month for the previous month and is based

on different key performance indicators (KPIs) set by Quality and Logistics.

9.1 Quality Performance Score The supplier “Quality Performance Score” is a weighted calculation of the following six

key performance indicators (KPIs):

• “Q-PPM” Quality parts per million = (# defective parts/# delivered parts)*1,000,000

• “CPA” stands for “customer product audit” and is a quality check based on the point of view of a

customer

• “Sorting Hours” How many hours did MBUSI spend sorting at the yard because of a supplier quality

issue

• “Offline” describes a car which has to leave the production line unscheduled because of a supplier

quality issue

• “Responsiveness” how good is the communication between the supplier and the SQE. Possible

values are 1 (very good communication) to 9 (none communication at all)

• “GFP” is a quality audit of a finished car

9.1.1 Distribution of Quality Score

The supplier “Quality Performance Score” has a total of 100 possible points which are

distributed as follows:

KPI-Score Max. Points

Q-PPM-Score 25

CPA-Score 20

Sorting-Score 20

Offline-Score 15

Responsiveness-Score 15

GFP-Score 5






9.1.2 Calculation of Quality Score

The supplier “Quality Performance Score” calculation is shown in the following picture:

9.1.2.1 Range Table

Each supplier has individualized range tables to assign KPI scores to measured KPI values

Q-PPM Value Q-PPM Score

0 – 100 100%

101 – 150 75%

151 – 200 50%

201 – 250 25%

> 250 0%

Weigh each KPI score and add them up to a total quality score

25% * Q-PPM Score + 20% * CPA Score + 20% * Sorting Score + 15% * Offline Score +

15% * Responsiveness Score + 5% * GFP Score

Value Range

Table Score






9.1.3 Quality Performance Score Categories

*Minimum threshold: A value defined by SQE and based on factors like achievable

performance or target performance.

9.1.4 Supplier Quality Performance Card Explanation

The supplier “Quality Performance Card” is a monthly overview over the quality

performance and contains the following figures: • Supplier monthly quality score

• Supplier 12 months average quality score

• Commodity 12 months average quality score

• Best-in-Commodity 12 months average quality score

• KPI values

Commodity: all suppliers which deliver similar parts based on complexity etc. are grouped in one commodity.

Category Description

Green The quality score is 100 and therefore on target

Yellow The quality score is below 100 but greater or equal a minimum tolerance

threshold (supplier specific)*

Red The quality score is below a minimum tolerance threshold.

Overall Status and monthly table headers are immediately on red if the

supplier is on Q-Help.






Minimum tolerance

line:

Border between yellow

and red status

Quality performance

development over the

last 12 months

Limit values for each

KPI. They describe

threshold in order to

receive 100 points per

KPI and refer to

current month

KPIs and their values

over the last 12

months

Status of the reported month aligned with the Q-H:ELP Level.

Can be green (G), yellow (Y) or red (R).

Being in Q-H:ELP sets the overall status automatically on red

Score rank within the

commodity a supplier

is grouped (based on

the 12 months score)

Contact names at MBUSI (Supplier

Quality Engineer and Manager)

Shows if supplier has

been in Q-H:ELP (1, 2

or 3) by end of the

reported month

Score for the

reported month

(0-100 points)

Score over the

last 12 months

(0-100 points)

Score

commodity

average over the

last 12 months

(0-100 points)

Score of the

Best-in-

Commodity

supplier over

the last 12

months






9.2 Logistics Performance Score The supplier “Logistics Performance Score” is based on the following seven key

performance indicators (KPIs):

Table 1: Weighing of the different KPIs

9.2.1 Explanation of each Logistics KPI

The scored points will be multiplied by a weighted percentage and summed up to build

the final score. The time period for evaluation is the 1st day of each month until the last

day of the month. There are 2 separate score cards for RAN and SEQUENCE deliveries.

9.2.1.1 On-Time Delivery

This KPI is calculated by the total number of RANs from the supplier in relation to the

total number of RANs being delayed or received too early.

The calculation method for this KPI is:

TotalRANs − Total(EarlyorLate)RANs

TotalRANs× 100 = %ofRANsonTime

For example:

If a supplier ships a total of 100 RANs in Month X of which 30 RANs are delayed and 70

RANs are on time, 70% of the shipments are on-time. Since this KPI is worth 50% (or 50

points) the supplier scored 0.7 (percentage on time) x 50 points = 35 points.

9.2.1.2 ASN Errors

This KPI is calculated from Inbound ASNs that have one of the following errors:

• Goods receipt quantity does not match the RAN quantity

• ASN errors caused by Supplier error/transmission

Topic RAN Parts

Weight/Points

SEQ Parts

Weight/Points

On-Time Delivery 50% 0%

ASN Errors 15% 0%

Mislabeled Parts 10% 0%

Responsiveness 10% 10%

Blocks in Production 5% 45%

Expedited Shipment 5% 0%

Missed at Stations 5% 45%






The calculation method for this KPI is:

TotalRANs − TotalASNErrors

TotalRANs× 100 = %ofCorrectASNs

The percentage of correct ASN’s multiplied with 15% (the maximum points allowed for

this KPI) equals the score for this KPI.

9.2.1.3 Mislabeled Parts

Scoring is based on the number of mislabeled incidents (see table below):

Table 2: Mislabeled Incidents Matrix

9.2.1.4 Responsiveness

Indicates how quickly Supplier responded to non-conformity and implemented corrective

action.

Table 3: Responsiveness Criteria

Mislabel Incidents Score

0 10

1 7

2 5

3 2

>3 0

Mislabel Incidents Score

Effective containment and communication,

8D/5Y submitted and accepted within 24 hours

10

Containment not completely effective, minimal follow up

required, 8D/5Y partial acceptance

5

Poor/no containment, no follow up,

8D/5Y not submitted

0






9.2.1.5 Blocks in Production

This KPI indicates that cars had to be blocked from assembly start due to parts supply.

Scoring is based on the number of incidents (see table below):

Table4: Blocks Scoring Matrix

9.2.1.6 Expedited Shipment

This indicator measures the number of expedited shipments and puts the absolute

amount of expedites in relation to the total number of shipments/trailers.

1 −TotalExpeditedTrailers

TotalTrailers× 100 = %ofNonExpeditedTrailers

For this particular KPI we would like to emphasize the following information:

The scoring program identifies the delivering trailer SCAC code. If the SCAC code is

different from expected standard, the program considers the shipment expedited.

Please see table below as an example. Even though the shipment was not expedited, the

program recognizes it as an exception because it does not match the expected SCAC

code. Therefore you must enter the SCAC code correctly in order to avoid a scoring

penalty.

Incorrect:

Correct:

Table 2: Comparison between correct and Incorrect Trailer Identification

Blocks Score

0 100

1 90

2 80

3 70

4 60

5 50

X > 5 0

Trailer

Ident.

Expected

SCAC

Trailer

SCAC

Planned Date Ship Date In Yard Date

510482 TCAM 5104 3/4/2013 2/28/2013 3/1/2013

Trailer

Ident.

Expected

SCAC

Trailer

SCAC

Planned Date Ship Date In Yard Date

TCAM510482 TCAM TCAM 3/4/2013 2/28/2013 3/1/2013






9.2.1.7 Missed at Stations

This KPI indicates the total amount of vehicles that passed the defined installation point

due to parts supply:

Table 3: Missed at Station Matrix

9.2.2 RAN Scorecard Calculation

The figure below is a screenshot of the actual program used to generate scores. Each KPI

is calculated separately so that you are able to see your overall score and the specific

scores in each category. In case of discrepancies or for your own internal research

purposes, additional information is available upon request.

Figure 1: RAN Calculation Screen

Missed

Vehicles

Score Missed

Vehicles

Score

0 100 < 26 50

< 6 90 < 31 40

< 11 80 < 36 30

< 16 70 < 41 20

< 21 60 > 41 0






9.2.2.1 Logistics Performance Scorecard Explanation – RAN Suppliers

Figure 2: Detailed Scorecard Explanation (1/2)

Figure3: Detailed Scorecard Explanation (2/2)

Status of the reported month aligned with the Q-H:ELP Level. Can be

green (G), yellow (Y) or red (R).

Being on Q-H:ELP sets the overall status red Contact names at MBUSI (MRP Specialist)

Shows if supplier is on Q-

H:ELP (1, 2 or 3) by end of

the reported month

Score for the

reported month

Average score over

the last 12 months

LOG performance trend

over the last 12 months

Weight of the specific

KPI KPIs and their values







9.2.3 SEQUENCE Scorecard Calculation

The figure below is a screenshot of the actual program used to generate scores. Each KPI

is calculated separately so that you are able to see your overall score and the specific

scores in each category. In case of discrepancies or for your own internal research

purposes, additional information is available upon request.

Figure 4: SEQ Calculation Screen






9.2.3.1 Logistics Performance Scorecard Explanation – SEQ Suppliers

Figure5: Detailed Scorecard Explanation (1/2)

Figure 6: Detailed Scorecard Explanation (2/2)

Status of the reported month aligned with the Q-H:ELP Level.

Can be green (G), yellow (Y) or red (R).

Being on Q-H:ELP sets the overall status red Contact names at MBUSI (MRP Specialist)

Shows if supplier is on Q-

H:ELP (1, 2 or 3) by end of

the reported month

Score for the

reported month

Average score

over the last 12

months

LOG performance trend


Weight of the specific

KPI

KPIs and their values







9.2.4 Logistics Performance Score Categories

Overall status and monthly table headers are immediately red if the supplier is on Q:H-ELP. All

suppliers scoring below 90 will be subject to corrective actions.

Category Description

Green The LOG score is 95 or greater and therefore on target.

Yellow The LOG score is below 95 but greater than or equal to 90.

Red The LOG score is below 90.






10 Documents/References

VDA 6.1 Qualitätsmanagement in der Automobilindustrie, Part 1, System Audit

VDA 6.2 Qualitätsmanagement in der Automobilindustrie, Part 2, Quality Assurance of

Supplies

VDA 6.3 Qualitätsmanagement in der Automobilindustrie, Part 3, Process Audit

TS 16949 Quality Management System Technical Specification

Mercedes-Benz Special Terms (MBST-13)

AIAG Production Part Approval Process Manual

AIAG Advanced Product Quality Planning and Control Plan Manual

AIAG Quality Systems Requirements

AIAG Potential Failure Mode and Effects Analysis Manual

AIAG Statistical Process Control, Copyright 1995

AIAG Measurement Systems Analysis Manual






11 Records

The Supplier and all Sub-suppliers shall maintain accurate records concerning all quality

activities. MBUSI reserves the right to inspect or request records pertaining to product

supplied to MBUSI






12 Revision/History

Revision Description of Changes Revised by Date

00 Supersedes previous version – SQAM 26.03

Section 1:

- Introduce the Roles & Responsibilities of Supplier Quality at Q3.0

(MQI/LQI/RQI)

Section 2: Quality Activities Prior to Part and Process Approval

- Explanation of Sampling Planning/Sampling Coordination Meeting

- Introduction of the VDA-RGA Program, TRL Audit, PFA Audit

- Updated DPA to VDA 6.3 Process Audits

- Requirements of Safety/Regulatory parts (DS/DZ)

- Daimler applications needed by supplier via Supplier Portal

Section 3: Production Process and Product Approval

- Adopted the requirements from MBST-13 regarding the Production Process and

Product Approval (PPA)

- Identification requirements of PPAP samples

- IMDS requirements

- Updated PPAP sample part submission procedure and shipping address

- Revise explanation of approval status based on MBST-13

- Explanation of Deviation Permit and cost allocation, where applicable

Section 4 : Trial Support

- No Changes

-

Section 5: Production Launch Support

- No Changes

Section 6: Series Production Support

- Cost responsibility for non-conforming material

Section 7: Corrective Action/Q-H:ELP

- Updated the reporting tool to include SQMS Complaint Management

- Explanation of Q-H:ELP

Section 8: Gauge Standard

- No Changes

Section 9: Supplier Evaluation System

- Updated the explanation/calculation of the new Logistics Performance Score

D. Reeder 17-Feb-2014