Advanced Product Quality Planning Status Reporting …

1 AAddvvaanncceedd PPrroodduucctt QQuuaalliittyy PPllaannnniinngg SSttaattuuss RReeppoorrttiinngg GGuuiiddeelliinneess Level 6 Edition December 2010 APQP Status Reporting UNCONTROLLED IF PRINTED Page 1 of 19 Foreword to the Level 6 Edition At Lotus, we strive to deliver products & services that exceed customer expectations. To achieve these high standards, we use an Advance Product Quality Planning (APQP) System. This is a flexible system that promotes a structured approach to suit all Product introductions. This system forms the foundation for continuous improvement & on-time project deliverables. This is a cross-functional team activity that must be supported at all levels to maximise the benefits of APQP. This document is the Level 6 Edition of Lotus Cars Ltd Advanced Product Quality Planning Status Report Expectations. The document was issued to incorporate the new Corporate Identity a number of revisions were made in Level 5 which include: An explanation of the initial Kick Off Meeting detailed in section 2.

2 A revision to the rating system for the four focus element ratings in section An addition of section 7 detailing the use of the program need date guide. The addition of element 12 on the Status Report which considers the Team Feasibility Commitment. Documents used within the Lotus APQP procedure, are added to the Appendix section. The Lotus Cars Ltd APQP Status Report Expectations Level 6 obsoletes the Level 5 Edition effective December 2010 unless otherwise specified by Lotus. APQP Status Reporting UNCONTROLLED IF PRINTED Page 2 of 18 Contents 1. INTRODUCTION ---------------------------------------- ---------------------------------------- 3 APQP Definition 3 Goal 3 Purpose 3 Approach 3 2. APQP FUNDAMENTALS ---------------------------------------- ----------------------------- 3 Teams 3 3. THE APQP Status REPORT ---------------------------------------- ---------------------- 4 Purpose 4 Status Reporting Responsibility 4 Reporting Requirements 4 4.

3 RATINGS AND ASSESSMENT ---------------------------------------- --------------------- 4 GYR Status 4 Focus Element Rating 5 Rating Scale 5 5. APQP Status REPORT FIELD DESCRIPTIONS ------------------------------------ 6 6. APQP ELEMENT DESCRIPTIONS---------------------------- ----------------------------- 7 7. APQP Status REPORT PND GUIDE ---------------------------------------- -------- 15 APPENDIX A, B, C--------------------------------------- ---------------------------------------- - 17 APPENDIX D APQP RASIC MATRIX ---------------------------------------- ------------- 17 APPENDIX F--------------------------------------- ---------------------------------------- --------- 18 APQP Status Reporting UNCONTROLLED IF PRINTED Page 3 of 18 1. Introduction APQP Definition Advanced Product Quality Planning (APQP) is a structured method for defining and executing the actions necessary to ensure a Product satisfies the customer.

4 APQP is supplier-led and required of all system, subsystem and component manufacturing locations. Goal The goal of APQP is to facilitate communication with all persons involved in a program and ensure that all required steps are completed on time, at acceptable cost and Quality levels. Purpose The purpose of this guideline is to establish: Common APQP expectations for the internal and external suppliers to Lotus. Common APQP process metrics A common program Status Reporting format Roles and responsibilities for APQP elements Approach This guideline focuses on 23 key APQP disciplines. Lotus expectations are defined for these key disciplines in definitions and detailed checklists. The Status for these disciplines is summarised on the APQP Status Report. This guideline is written from a supplier standpoint. A supplier is an internal or external supplier of materials, components, subsystems, or systems that will be delivered to a customer.

5 A customer is the recipient of the supplier s Product . Besides customers, every supplier will have subcontractors. A subcontractor is the provider of materials or parts to a supplier. 2. APQP Fundamentals Teams The first step in the Advanced Product Quality Planning Process is to assign responsibility to a cross-functional team. Effective Product Quality Planning requires the involvement of more than just the Quality department. The team should include representatives from engineering, manufacturing, material control, Logistics, purchasing, Quality , sales, field service, subcontractors, and customers (as appropriate). In the majority of cases Lotus SQA will facilitate an 'APQP Kick Off' meeting to formally start the APQP process and communicate the project requirements and expectations. The meeting will be attended by the Lotus Commodity Advisory Group (CAG) along with the Engineering function and any other disciplines key to the Product (s) to be sourced.

6 The Supplier s core team will be expected to attend the kick off meeting. A standard agenda will be used for the kick off meeting. Minutes will be generated and issued by the responsible SQA Engineer (See Appendix F). The frequency of APQP Status Report submission will be agreed during the kick off meeting and noted in the meeting minutes. APQP Status Reporting UNCONTROLLED IF PRINTED Page 4 of 18 The supplier is responsible for submitting against the agreed schedule. Note 1: failure to submit APQP Status Reports to the agreed timing schedule will result in demerits to the Suppliers Quality rating within the Lotus QCD system. Note 2: Where a kick off meeting is not held the supplier will be asked to submit an initial APQP Status report defining the suppliers core team. The APQP Status report submission schedule and ability to meet the project milestones, will be agreed in writing with the responsible SQA Engineer. 3. The APQP Status Report Purpose The APQP Status Report summarises the program Status for the 23 key APQP elements.

7 The Status Report facilitates communication between suppliers and customers, particularly when information, direction or support is required. It also provides a dated record that future programs can reference. Status Reporting Responsibility The supplier has primary responsibility for the Status Report. The supplier must conduct the focus element rating assessments and GYR (Green-Yellow-Red) assessments on the 23 APQP elements. The Status report summarises the results of the assessments. See Appendix D APQP RASIC Matrix for further information on primary responsibilities for each APQP element. Reporting Requirements The Status Report must be submitted to the customer at all major program reviews. Customers or suppliers should conduct more frequent reviews as needed. The customer must provide a list of all scheduled program Status review dates to the supplier.

8 Supporting documentation must be submitted upon customer request. 4. Ratings and Assessment GYR Status Green-Yellow-Red (GYR) Status communicates the progress toward the successful completion of an APQP element by the program need date. Program need date is the last possible date an element can be completed and not adversely affect Quality or timing of the program. The GYR Status column of the report shows the assessment for each element. Definitions for Green, Yellow and Red follow: Green G ratings are given before the program need date to indicate the element will meet program need date and will meet all Quality & cost expectation.

9 G ratings given on the program need date indicate the element is complete and meets all Quality expectations (see section 6 for element expectations). APQP Status Reporting UNCONTROLLED IF PRINTED Page 5 of 18 Yellow Y ratings are given prior to the program need date to indicate an element may not meet the program need date or Quality expectation. To be considered Y a recovery plan must be in place for the element. Y ratings indicate a need for program management attention. A Y rating can only be given to an element prior to the program need date. Red R ratings are given prior to the program need date to indicate an element will not meet the program need date or Quality expectations. R signifies the program is at risk and needs immediate management attention. H & P Status the H column is for indicating the historical review Status of each element.

10 The P column is for the current Status of each element. Focus Element Rating Four focus elements are assessed for Quality of the event using the appropriate Focus Element Rating Checklist (see Appendix C). Expectations Cover the basic requirements for the successful completion of the element. Must be complete by the program need date for the element to be considered closed. Can be waived by the customer Rating Scale The checklists use a 0 to 3 rating scale, with the score of 3 Indicating all customer expectations have been met. An explanation of the scoring follows: 0 - Less than half of the Expectations are completed. A 0 rating is acceptable during early program Status reviews, but signals a need for management action as the program need date approaches.