Process name: S3: Supplier Development

Process instruction no.: S3-02

Process instruction name: Supplier Quality Manual

 

CONTENTS

1 INTRODUCTION
1.1 INTRODUCTION
1.2 Partnership with suppliers
1.3 Range and scope
1.4 Business language
1.5 Supplier responsibility
1.6 Environmental protection
2 QUALITY SYSTEM REQUIREMENTS
2.1 Documentation control, archiving
2.2 Packaging and labeling
2.3 Identification and traceability
2.4 Documentation and guarantee parts storage
3 QUALIFICATION OF NEW SUPPLIER / PRODUCTION PLACE
3.1 Production Part Approval Process – PPAP
3.1.1 PPAP requirements
3.1.2 PPAP approval process
3.2 FMEA – Failure Mode and Effects Analysis
3.3 Significant and critical characteristics
3.3.1 SPC – Statistic Process Control
3.4 Control Plan – CP 3.5 MSA – Measurement System Analysis
4 QUALITY ASSURANCE IN PRODUCTION PROCESS
4.1 Assurance of deliveries
4.1.1 Delivery identification
4.1.2 Packaging, guarantee period
4.1.3 Delivery documentation
4.1.4 Buffer stock
4.2 Production process verification
4.2.1 Measurement and testing equipment control
4.2.2 Measurement records
4.2.3 Non-conforming product control
4.3 Change and deviation control
4.3.1 Deviation control
4.3.2 Request for change
4.4 Complaints management
4.4.1 Corrective actions – 8D Report
4.5 Subsuppliers control
4.6 Annual lay out inspection
5 SUPPLIER EVALUATION AND DEVELOPMENT
5.1 Supplier evaluation, delivery evaluation
5.1.1 Deliveries reliability
5.1.2 Quality of delivered goods
5.1.2.1 Defect rate
5.1.2.2 Complaint quota
5.1.3 Supplier ranks
5.1.4 Criteria for groups of suppliers
5.2 Audit at supplier
5.2.1 Supplier facility access
6 DAMAGE COMPENSATION
7 EXCEPTIONS
8 RECOMMENDED FORMS OF RECORDS

1 INTRODUCTION

1.1 Introduction

High quality and product reliability requirements are typical for the automotive industry.

These requirement levels are raised by product features that ensure the protection of the customer's health.

Therefore the company ISS and all its partners must apply exceptional care to guarantee quality in order to fulfil the company mission

1.2 PARTNERSHIP WITH SUPPLIERS

Reliability, high technical level and product quality are conditions for customer satisfaction.
To meet these requirements we expect cooperation from our suppliers in the area of quality assurance.
It is our objective to build and develop mutually beneficial partnerships.

1.3 RANGE AND SCOPE
This manual is applied to all suppliers of parts and materials related directly to final products, including suppliers of packaging material.
The main scope of this manual is to define and introduce to all ISS suppliers the quality requirements of ISS, automotive specific standards according to ISO/TS16949:2009 for the quality management systems and requirements of the environment standard according to ISO14001:2004.
Failure to meet manual requirements may result in the loss of existing and/or future cooperation, in addition to reimbursement of the costs resulting from those failures.
Suppliers are required to ensure that their direct material/service suppliers comply with requirements of ISO/TS 16949.

Links to standards:

ISO/TS 16949:2009 and latest edition = ISO/TS16949

ISO14001:2004 and latest edition = ISO14001

1.4 BUSINESS LANGUAGE

The official business language of ISS is English. All official communication with domestic suppliers will be done in Czech and with foreign suppliers in English.

Documents shall be displayed in Czech and/or English.

1.5 SUPPLIER RESPONSIBILITY FOR QUALITY

By confirming an order the supplier acknowledges that he

agrees with the rules specified in this manual.

The supplier is fully responsible for:

• quality of its products
• quality of its sub supplier's materials
• guarantee of conformity with defined technical specifications
• securing of customer required documentation

The supplier binds himself to this by signing the Order / Frame order and PPAP.

1.6 ENVIRONMENTAL PROTECTION

Suppliers are obliged to perform their activities in such a way that the impact of those activities on the environment is reduced to a minimum. We expect from our suppliers establishment of the environmental management within the law and ISO 14001: 2004 requirements.

Suppliers shall have following documents:

• Environmental management guideline and plans for improvements
• Emergency plans
• Definition of targets including safeguarding of resources ( raw materials, energy, water ), prevention and reduction of environmental pollution, minimization of waste and rejects, reduction of expendable packaging
• Recycling program

2 QUALITY SYSTEM REQUIREMENTS

ISS´s goal for all suppliers of parts, materials and services affecting production material is to demonstrate compliance to ISO/TS 16949: 2002. Suppliers shall also comply with ISS specific requirements.

ISS requires proof of conformity by third party certification according to ISO 9001: 2000 at minimum. Should the supplier not be certified, ISS requires a plan to gain the certification within one year from the start of their cooperation.

The supplier is required to send a copy of the new valid certificate after the expiration of any previous certificate. The supplier is required to inform the customer in case of certification suspension.

Non-certified suppliers are automatically evaluated as a „C“ suppliers – see chapter Supplier Evaluation.

QS-9000 or VDA certification does not replace certification according to ISO 9001: 2000 or ISO/TS 16949: 2002.

 

ISS recommends that all suppliers continue using the latest versions of these AIAG manuals:

• APQP – Advanced Product Quality Planning
• FMEA – Potential Failure Mode and Effects Analysis
• MSA – Measurement System Analysis
• PPAP – Production Part Approval Process
• SPC – Statistical Process Control

2.1 DOCUMENTATION CONTROL, ARCHIVING

All documentation and quality records confirming the customer´s requirements must be controlled.

 

Quality records requirements:

• legible
• easily identifiable
• easily traceable
• approved and updated
• in Czech / English version

These documents have to be stored for a period of 15 years or longer if required by legislation.

The drawing documentation / material specification provided by the customer presents controlled documentation and is the property of the customer. Out-of-date drawings / material specification have to be returned to the customer and replaced by valid documentation. They must not be passed to third parties without written approval.

Supplier´s system of change control has to be applied, i.e. system of designing, negotiating and approving or rejecting of design changes from valid technical documentation.

Change is considered to be each permanent modification, adjustment or addition to documentation against the approved version, further see reasons for PPAP report submission.

 

2.2 PACKAGING AND LABELING

During the preliminary and approval process ISS and suppliers shall agree upon the Packaging plan, as follows :

• There shall be only one part number in a box or packaging unit
• All packaging units shall be accompanied by labels displaying information about part no., quantity, supplier name, lot traceability no., sequence no. of delivery in year and bar code.
• The supplied quantity is stated in the order.
• The supplier provides products in production batches / lots.
  One production batch / lot is defined as one of the following options or their combination:
  - one day production
  - one shift production
  - one raw material batch
  - one production campaign ( necessary to specify )
• The batch size is specified by PPAP.
• Each production batch / lot must be individually wrapped, it is forbidden to pack more than one batch into one package.
• Regarding compliance with EU/ELV legislation: End of Life Vehicles (2005/53/EC, 2002/95/EC, 76/769/EC subsequently amended) the supplier guarantees that material supplied does not contain in any form elements and compounds of lead, mercury, hexavalent chromium and cadmium in concentrations exceeding those specified in the above mentioned directive.

2.3 IDENTIFICATION AND TRACEABILITY

The supplier must use such system which is able to identify the semi-finished products and final products at each level of processability, including incoming materials, used equipment and workers who had participated in the product realization.

The materials, raw materials, semi-products and final products cannot be mixed up during production process. If there are any doubts about identification, the materials cannot be used for further processing. The supplier must be able to ensure the identification and traceability of the product for a minimum of 15 years, unless stated otherwise.

 

2.4 DOCUMENTATION AND GUARANTEE PARTS STORAGE

Suppliers shall retain documents and product samples for the period that the part is in active production ( a part is active as long as it is being supplied to the customer for original or service use ) plus a minimum period of 15 years. Parts used on multiple programs may require an exceptionally long retention period.

 

3 QUALIFICATION OF NEW SUPPLIER / PRODUCTION PLACE

A new supplier who wants to be added to ISS List of approved suppliers shall:

• Demonstrate compliance at a minimum to ISO 9001: 2000. New suppliers, who have not completed their registration process, may conditionally be awarded business, unless otherwise specified by a customer.
• Submit PPAP samples and documentation Level 3 in case of mechanical parts and Level 2 in case of bulk materials.
• Meet all ISS specific requirements
• Succesfully pass ISS supplier audit

3.1 PRODUCTION PART APPROVAL PROCESS – PPAP

Suppliers shall ensure that the PPAP documentation and samples submission meet requirements of the AIAG´s PPAP manual.

The purpose of PPAP is to detect that the supplier understands properly all requirements of specifications and records of the technical plan and that the production process can be accomplished in such a way that all requirements will be fulfilled consistently in the real production volume and within agreed production speed.

 

PPAP submission is required in these cases:

• a new component or a product
• a removal of non-conformity of an earlier submission
• an tool replacement or repair
• a technical change
• re-use of equipment after more than 1 year
• a change of sub-supplier
• a material change
• a change of a production place

The PPAP report is submitted for approval to the Quality Assurance Department / Supplier Development. The report with sample parts has to be approved a minimum of 2 weeks prior to the planned start of serial deliveries.

 

3.1.1 PPAP REQUIREMENTS

Each supplier is responsible for meeting these requirements prior to submission to ISS, including receipt of ISS approval in case of any requests for changes. ISS prescribes the PPAP level:

• The customer decides what PPAP level shall be used. Unless stated otherwise, the PPAP submission level 3 is required from suppliers of parts, level 2 from suppliers of bulk material.
• The supplier accompanies the first produced batch with prescribed documents, if necessary supplemented with specific customer requirements.
• The preliminary page of PPAP report is a completely filled out Part Submission Warrant ( PSW ).
• The supplier is obliged to submit the first produced batch to the customer for approval. Such a batch is considered to have been produced within a minimum of 8 hours or consists of a minimum of 300 consecutive pcs, unless stated otherwise. In case of multiposition / multicavity production equipment minimum 25 lifts are required.
• Reference samples must be inspected according to the dimensions / parameters specified in the drawing / specification. The results of the check must be in conformity with the specified requirements.
• The preliminary capability study is required for all significant / critical characteristics specified by the customer. The criteria for acceptance is the achievment of a capability Cpk / Ppk > 1,67.
• Any deviation from the required parameters must be discussed with the customer prior to submitting parts for approval.
• Regardless of the submission level, the supplier is obligated to keep the records about the part approval for a period of the active life of the part, i.e. 15 years and another 1 year, i.e. 16 years.

3.1.2 PPAP APPROVAL PROCESS

If a submitted part and documentation meet all specifications and requirements, the customer passes this information to the supplier and approves the part for serial production. Deviations from requirements which were not detected during the PPAP process may be subject to complaint or claim afterwards.

Should there be any comments on PPAP the status „others“ is stated and such comments are specified.

Based on specific requirements the customer can ask for different labeling of the first 3 serial deliveries and submission of suplemented measurement protocols for dimensions specified by the customer.

If submitted samples and documentation do not meet specified requirements, PPAP is refused. The supplier must provide repaired product and documentation for approval prior to the start of serial deliveries.

 

3.2 FMEA – FAILURE MODE AND EFFECTS ANALYSIS

FMEA is a method used for detecting possible failures during the proposal phase, assess the risk and proposal for the realization of improvement actions. FMEA allows cost minimization on product testing. This document is updated according to the verification results and product validation, experience gained from the production process and product use.

 

Design-FMEA is carried out in following cases:

• new part‘s design and its modifications
• use of new materials
• change of customer requirements, etc.

Process-FMEA is carried out in following cases:

• before start of production of new or modified products
• change of technological procedure

If the customer requires a review of FMEA, the supplier is obliged to secure it.

 

3.3 SIGNIFICANT AND CRITICAL CHARACTERISTICS, CAPABILITY

Significant characteristic - SC ◊ - is a quality characteristic of a product, for which reasonably expected deviations will probably influence customer satisfaction with the product (fitting, function, assembly, appearance, processibility or ability to create the final product).

Critical characteristic - CC ∇ - is a quality characteristic of a product, for which reasonably expected deviations will probably influence product safety or compliance with government regulations (e.g. flammability, user protection, emissions, noise, ...).

 

SC and CC are stated by the customer in requirements ( drawing, specifications, etc. ) and/or supplier ( FMEA ).

Unless otherwise specified, during approval and production phases the supplier must calculate and track the process capability for both siginificant and critical characteristics. For characteristics showing the Cpk index lower than specified, the supplier must create an Action Plan defining containment and preventive improvements and implement 100% inspection. Process capability can be conducted with both variable and attribute data.

Capability must be evaluated from a minimum of 25 subgroups. In case of multicavity tools, each cavity must be evaluated separately. Criteria for capability index – see below.

 

3.3.1 SPC – STATISTIC PROCESS CONTROL

SPC presents a preventive instrument which allows early detection of significant procedural deviations and based on its identification allows it to perform procedural interventions aimed at long-term maintainance at acceptable and stable levels.

Statistic regulation by means of measurement or comparison and evaluation of process capability are required for critical and significant characteristics of a product. The process capability is acceptable only if the conditions of statistically controlled processs are verified. Preliminary process capability, where required values are Pp, Ppk > 1,67, has to be evaluated prior the start of serial production.

The process is considered to be capable in the long term if the value of Cpk > 1,33, i.e. Cp, Cpk > 1,33 has been achieved after one month of serial production.

 

3.4 CONTROL PLAN – CP

On the basis of FMEA analysis Control plan must be conducted for all produced parts. All performed tests and measurements have to be specified in the Control plan.

 

The Control plan contents:

• general data ( plan no., date of issue, date of revision, name of process, ... )
• controlled mark, special marks
• specification, tolerance
• checking method
• frequency of checks
• quantity of checked pieces
• responsible persons
• method of recording
• plan of actions and corrective steps

Note: See format in Enclosure No. 3

 

3.5 MSA – MEASUREMENT SYSTEM ANALYSIS

The target of Measurement System Analysis is to decide if the chosen method of measurement or measuring equipment is suitable or capable of finding a measurable mark of quality. The supplier is required to perform a study dealing with Measurement System Analysis and analyze the variability of all types of measuring and testing equipment specified in the Control Plan.

 

4 QUALITY ENSURANCE IN PRODUCTION PROCESS

Once the supplier’s manufacturing process for producing a component / material ( PPAP ) is successfully validated, the next phase encountered is serial production. Serial produced parts shall be delivered only after written PPAP approval from the customer.

 

In this phase of quality assurance the supplier‘s attention is focused on:

• deliveries ensurance
• verification during production process
• change and deviation control
• complaints management
• development of subsuppliers
• annual product revalidation ( Layout test )

4.1 ASSURANCE OF DELIVERIES

Quantity of delivered parts / materials and required date of delivery are specified by purchase orders or call-offs. Production batch size is specified in PPAP report.

Should there be any request for change or deviation against approved PPAP report, the supplier is obliged to send this request for approval in written form.

 

4.1.1 DELIVERY IDENTIFICATION

 

Each delivery must be labeled with the following data:

• part number
• specification reference and change index
• delivered quantity
• production date
• production batch number
• supplier´s name
• customer´s name

In cases in which delivered components / materials are produced according to revised drawing documentation, such parts must be labeled accordingly.

 

4.1.2 PACKAGING, GUARANTEE PERIOD

Each production batch must be individually wrapped, unless stated otherwise. Packaging must guarantee protection and quality preservation during transport and storage at customer´s site under specified conditions for the period of at least 2 years.

The supplier is obligated to use bar code labelling or arrange a waiver with customer.

 

4.1.3 DELIVERY DOCUMENTATION

Each delivery must be accompanied by the required documentation agreed in the PPAP:

 

A. Inspection certificate – acc. to DIN EN 10204-3.1 including these data:

• batch no. of used materials and parts
• measured values and capability of prescribed parameters, critical and significant characteristics
• declaration of conformity with specifications

B. Material certificate – within each change of used material batch – including:

• testing instruction and related standards which the material has to meet
• measured values
• declaration of conformity with specifications

C. Deviation control – in case of deviation from the customer´s requirements

D. Delivery Note – including:

• supplier´s name
• customer´s name
• subject of delivery
• production batch no.
• quantity

Formats A. and B. are parts of the PPAP. The supplier has to keep the above mentioned documents for a period of 15 years.

Deviations must be approved by the customer in written form. Uncompleteness or absence of required documents is subject for complaint.

 

4.1.4 BUFFER STOCK

The supplier has to guarantee continuous and troublenessfree deliveries in cases of parts / material rejection. The supplier is obligated to keep stock of parts ( released and

ready for delivery ) at their own costs, in quantity sufficient for replacement of rejected delivery, unless stated otherwise. The buffer stock must be updated according to FIFO system.

 

4.2 PRODUCTION PROCESS VERIFICATION

The supplier must continuously monitor the quality acc. to the approved Control Plan. On behalf of prevention the Statistic Process Control ( SPC ) and capability evaluation are prefered. Records from this monitoring must be kept in such a way that it is possible to detect the time of deviation and implement appropriate corrective actions to avoid other failures in the production process.

Only batches without any defected parts / material are considered as acceptable. If the products are produced in conditions of a non-stable process ( Cpk < 1,33 ), a 100% check must be performed. Such checking must be performed untill the production process is optimized and capability Cpk ≥ 1,33 is achieved.

 

4.2.1 MEASURING AND TESTING EQUIPMENT CONTROL

Only suitable measuring and testing equipment must be used for all measurements and tests. The established system must ensure the use of solely capable gauges and measuring equipment. All gauges must be marked, regularly calibrated and maintained.

 

4.2.2 MEASUREMENT RECORDS

All records from measuring, monitoring and testing during the production process must be kept. This applies also to records from incoming inspection of materials. These records must be submitted to the customer on request.

 

4.2.3 NONCONFORMING PRODUCT CONTROL

The supplier must use and prescribe systems of detection, identification, marking, sorting, storage and keeping of records and products which meet the customer´s requirements.

 

The purpose of this procedure:

• preventing a non-intended product usage
• the elimination of a non-conforming non-repairable product from the production process
• preventing a non-conforming product supply
• an analysis of discovered defect or deviation from requirements
• deciding on further product usage ( rework, repair, exception, ... )
• avoiding a defect occurrence ( 8D Report, corrective and preventive actions, ... )

Non-identified or suspicious product must be kept as a nonconforming product. Immediate corrective actions must be taken in the case of non-conforming products detection during the production process. Parts from the last produced batch must be 100% sorted.

The supplier must keep records about non-conformities and corrective actions, including records about the approved exceptions.

The customer must be immediately informed in case of nonconforming product expedition. The customer must also be informed about all problems related to the product quality.

 

4.3 CHANGE AND DEVIATION CONTROL

4.3.1 DEVIATION CONTROL

The supplier is required to apply a system of deviation control. A Deviation presents a written approval of a deviation from valid technical documentation.

Each deviation from the customer‘s requirements has to be submitted to the supplier for acceptance before launching. Validity of deviation must be specified by the following information:

• date ( from – till )
• quantity
• order no.
• batch no., series no.
• corrective actions

Off-line rework, not included in the original technical documentation, is considered as a process change and the supplier must obtain ISS approval for it. ISS will require special identification and segregation of the reworked product.

The supplier is required to keep records of the deviation validity expiration or released quantity. After deviation expiry, conformity with original or new specifications must be assured. Deliveries concerning the approved deviation must be marked.

 

4.3.2 REQUEST FOR CHANGE

Changes shall not be implemented prior to the receipt of written approval from ISS. Verbal requests will not be accepted.

The supplier is obligated to inform the customer about each change of status during the period of PPAP approval. Proposals of such change must be submitted to the customer as a delta PPAP prior to change realization.

 

Submission of Request for Change is required in these cases:

• Use of other construction or material than was used in the previously approved part or product
• Production from new or modified tools, dies, molds, including tooling replacement
• Production following refurbishment or rearrangement of existing tooling or equipment
• Production from tooling and equipment transferred to a different plant location or an additional plant location
• Change of subcontractor for parts, non-equivalent materials or services ( e.g. heat treating, plating, protective coatings etc. )
• Product produced after the tooling has been inactive for mass production for 12 months or more
• Product and process changes related to components of the product manufactured internally or by subcontractors that has impact on assembly, shape, function, performance and/or durability of the salable product.
• Change in test or inspection method – new technique with no effect on acceptance criteria

4.4 COMPLAINTS MANAGEMENT

If the customer discovers that the purchased material or service does not meet the required specifications, the supplier is informed about it in written form.

Upon receiving an ISS concern for quality or delivery, suppliers shall implement a containment action within 24 hours. Unless otherwise specified, the supplier is obligated to submit within 8 working days a corrective action plan or a reasonable approach to developing one in case of complex issues in the form of an 8D-Report.

 

Handling with non-conforming delivery:

• the whole delivery returned at supplier´s expenses
• the supplier arranges new conforming delivery without limitation of customer´s continuous production
• delivery sorting by the supplier and the non-conforming parts / material replacement
• delivery sorting by the customer at supplier´s expenses and the non-conforming parts / material replacement
• non-conforming parts reworked by the supplier

4.4.1 CORRECTIVE ACTIONS – 8D REPORT

The supplier is required to arrange corrective actions preventing repeated nonconformity and the elimination of their causes. Use of the prescribed form of problem-solving is required, i.e. 8D-Report.

The problem analysis records must be kept and presented at customer request.

The supplier must setup a team to deal with solving complaints, propose immediate actions and prevent repeated appearance in the form of preventive actions, including effectivity evaluation.

 

4.5 SUB-SUPPLIERS MANAGEMENT

Sub-tier suppliers have a tremendous impact on the quality of the final component. Therefore the supplier quality system shall include a function that tracks and reports on their supply base quality and delivery performance. The supplier shall be able to demonstrate that they manage their supplier´s issues through documented corrective actions and verification activities.

 

4.6 ANNUAL LAY OUT INSPECTION

Unless otherwise specified, an annual lay out inspection, including all sub-components, is required for all parts / materials.

All suppliers shall annually revalidate their production components and be able to provide the results to ISS based on request within 24 hours.

 

5 SUPPLIER EVALUATION AND DEVELOPMENT

5.1 SUPPLIER EVALUATION, DELIVERY EVALUATION

Supplier evaluation is a basic instrument of feedback from the customer provided to suppliers, i.e. information about satisfaction with and compitence of the supplier.

Evaluation is performed half-yearly and consists of two basic focused areas, i.e. Reliability of deliveries and Quality of products.

Each supplier is familiarized with the results of evalutation at the end of the year in written form. In the case of an unsatisfactory result, a written statement from the supplier is required.

 

5.1.1 DELIVERIES RELIABILITY

Each individual delivery acc. to the purchase order or the customer requirement is evaluated against the following criteria. Max. score is 20 points per each individual delivery. The result for the evaluated period is then calculated as an average score per one delivery.

 

a) Quantity, i.e. the difference of quantity supplied against the real purchase order

Difference in %	Points achieved
0%	10
Max. 5% below or any quantity above	5
More than 5% below	0

 

b) Timelines, i.e. the fulfillment of the dates specified in the purchase order

Difference in days	Points achieved
0 days	10
Max. 2 days earlier or 1 day later	5
More than 3 days earlier or more than 1 day later	0

 

c) Documentation, i.e. the completeness of the accompanying documents necessary for proper processing at customer

Documentation lack	Points achieved
Causing delay in processing more than 1 day	-10
Causing delay in processing within 1 day	-5

 

5.1.2 QUALITY OF DELIVERED GOODS

Based on ISO 9001:200 principles, it is generally assumed that all processes are ensured and improved in such a way that a failure-free product can always be delivered. The target of each supplier must be a zero defect rate in deliveries, returned parts and complaints. The supplier is obligated to take appropriate actions to improve quality of deliveries and increase the customer´s satisfaction in cases where the specified limit has been exceeded.

The quality of the supplied products is assessed by a combination of two indicators, i.e. Defect rate ( PPM / PPK ) and Complaint quota ( CQ ). Max. score for each indicatior is 10 points.

 

5.1.2.1 DEFECT RATE

The defects taken into consideration are only those that have been detected by the customer and notified to the supplier as defective. The deficiency is defined as a difference from one or more characteristics of drawing ( the latest offical release ), standards, specifications, e.g. the difference in dimensions, materials, labelling, color, function, surface characteristics, packaging and conservation.

Cases in which special authorization has been given by the customer to utilize returned, reworked or wrong units in order to maintain continuous production are taken into consideration.

The sample deliveries or the non-conforming deliveries which the customer was informed about in advance and which will not cause any further failures are not taken into consideration.

For the suppliers of the parts, the PPM calculation is used.

 

PPM ( parts per million ) = non-conforming parts quantity per one milion delivered parts

- the general set limit is PPM 100, unless stated otherwise

 

For the suppliers of the bulk material and packaging, PPK calculation is used. For the suppliers where the main supply unit is weight (g, kg) or volume ( l ), PPK presents either kilograms per ton or grams per kilogram or litre per kilolitre.

 

PPK ( parts per thousand ) = non-conforming units quantity per one thousand delivered units

- the general set limit is PPK 10, unless stated otherwise

 

If the target is not reached, the supplier is obligated to submit an action plan of corrective actions.

 

The scale of defect rate evaluation points:

PPM	Points achieved
0	10
1 ~ 100	7
101 ~ 300	5
301 ~ 500	3
501 ~ 1000	1
1001 ~	0
PPK	Points achieved
0	10
1 ~ 10	7
11 ~ 30	5
31 ~ 50	3
51 ~ 100	1
101 ~	0

 

5.1.2.2 COMPLAINT QUOTA

Each official complaint or claim issued by the customer to the supplier is calculated against the supplied quantity.

 

For the suppliers of the parts, CPM calculation is used:

CPM ( complaints per million ) = complaints quantity per one milion delivered parts

 

For the suppliers of bulk material and packaging, CPK calculation is used:

CPK ( complaints per thousand) = complaints quantity per one thousand delivered units

 

The scale of complaint quota evaluation points:

CPM	Points achieved
0	10
0.1 ~ 0.5	7
0.6 ~ 1	5
1 ~ 1.5	3
1.6 ~ 2	1
2.1 ~	0
CPK	Points achieved
0	10
0.1 ~ 0.5	7
0.6 ~ 1	5
1 ~ 1.5	3
1.6 ~ 2	1
2.1 ~	0

 

5.1.3 SUPPLIER RANKS

 

Based on the above criteria each supplier will fall into one of the following ranks:

A Excellent suppliers

No further actions required. If the A-ranking is retained for 4 consecutive periods, the supplier can be promoted to the rank of Preferred Suppliers with the possibility to negotiate special treatment ( dockto- stock = zero incoming inspection, preference for new projects, etc. ).

B Acceptable suppliers

Actions on how to attain the A must be submitted within 3 weeks from the receipt of the evaluation.

C Poor suppliers

Actions on how to attain at least a B must be submitted within 3 weeks from the receipt of the evaluation. The customer will cooperate with such a supplier closely to upgrade the status. On the other hand, the customer´s Logistics Department will hold such a supplier in quarantine during the sellection of new projects and can replace them with another supplier until such time as ISS Quality Department releases the quarantine.

5.1.4 CRITERIA FOR GROUPS OF SUPLIERS

PUR	QA	Sum	Group
20	20	40	A
15	20	35	A
20	15	35	A
10	20	30	B
15	15	30	B
20	10	30	B
5	20	25	B
10	15	25	B
15	10	25	B
20	5	25	B
0	20	20	C
5	15	20	B
10	10	20	B
15	5	20	B
20	0	20	C
0	15	15	C
5	10	15	B
10	5	15	B
15	0	15	C
0	10	10	C
5	5	10	C
10	0	10	C
0	5	5	C
5	0	5	C
0	0	0	C

5.2 AUDIT AT SUPPLIER

The supplier is required to allow the customer to perform an audit of quality system management at agreed intervales and provide him with all necessary sources.

The supplier is informed about audit results in the audit report.

 

5.2.1 SUPPLIER FACILITY ACCESS

Suppliers shall allow ISS and ISS´s customers access to their facilities and those of their suppliers for the purpose of evaluating parts, processes, documents, methods and systems used in manufacturing of ISS products.

 

6 DAMAGE COMPENSATION

Suppliers are responsible for all costs and damages caused due to any failures of delivered material and ISS will require compensation for such costs from responsible suppliers.

Damage compensation by the supplier will be initiated by ISS when it has been determined that the supplier is responsible for quality or delivery shortcomings.

The damage compensation process includes, but is not limited to, contaminated stock at ISS plant, product in transit, customer´s assembly plant, non-conforming received goods, assembly line downtime due to delivery or quality related issues and warranty returns.

Damage compensation is a significant factor for ISS decisions about new projects for the supplier.

 

7 EXCEPTIONS

All exceptions from this manual must be approved in written form during PPAP proces.

 

8 RECOMMENDED FORMS OF RECORDS

The enclosed documents present recommended forms.

 

Documents with identical contents can be accepted after mutual agreement.

1 – Change / Deviation Application

2 – 8D Report

3 – Control Plan

 

Příloha č.1

 

Příloha č.2

 

Příloha č.3