LINAMAR CORPORATION Supplier Quality Manual

1 LINAMAR . CORPORATION . Supplier Quality Manual Supplier Quality Manual All contents are protected by copyright. The copyright for any material (in any form) created by LINAMAR CORPORATION is reserved. Any duplication or use of content other than for the purposes prescribed in this Supplier Quality Manual ( Manual ) or in any electronic or printed publications is not permitted without the written consent of LINAMAR CORPORATION . This on- line version of the Manual supersedes all other versions (in any form) of the Manual . The information in this Manual is subject to change without notice.

2 XR-12-C03-01-08 Rev ii Supplier Quality Manual Table of Contents Introduction 2. Purpose 3. Applicability/ Scope 3. Responsibility 3. Definitions / 3. Abbreviations Manual 4. Application 4. Quality Management 4. System of the Supplier Quality Management 5. System of Subcontractor Audits 5. Supplier Selection/ 6. Award Process Product/Process 7. Development and Planning (APQP). General Development 7. requirements Design/Process 9. Control Process Approval 10. Prototype Parts 11. Test Equipment and 11. Gauges Planning of Process 12.

3 Equipment/Preventiv e Maintenance Packaging Plan / 13. Product Identification Training 13. Initial PPAP Samples / 13. IMDS. Re-Submission of 14. PPAP. Acceptance Tests / 15. Test Certificates XR-12-C03-01-08 Rev iii Supplier Quality Manual Supply Chain 15. Management Supplier Commitment 15. Supplier 16. Development Controlled Shipping 16. Supplier Rating / 17. Evaluation Evaluation of 17. Approved Suppliers Supplier Charge Back 17. / Debit Product / Supplier 18. Re-Sourcing Non Conforming 19. Material Non Conforming 19. Material Immediate Action Non Conforming 19.

4 Material Corrective Action Reports Informal Non Conforming 19. Material Corrective Action Reports Formal Deviations For Non 19. Conforming Material Reference Documents 20. Revision History 22. Approvals 22. XR-12-C03-01-08 Rev iv Supplier Quality Manual INTRODUCTION. LINAMAR CORPORATION is a diversified global manufacturing company of highly engineered products powering vehicles, motion, work and lives. The company's Powertrain and Driveline focused divisions are world leaders in the collaborative design, development and manufacture of precision metallic components, modules and systems for global vehicle and power generation markets.

5 The company's Industrial division is a world leader in the design and production of innovative mobile industrial equipment, notably its class leading aerial work platforms and telehandlers. LINAMAR CORPORATION is committed to Quality , delivery and service to our customers. Maintaining a high level of customer confidence cannot be sustained without the full cooperation of our Suppliers. In this LINAMAR CORPORATION is dedicated to establishing and maintaining mutually profitable relations with its Suppliers. The cornerstone to any relationship is unambiguous, concise and open communications.

6 In support of this relationship, LINAMAR CORPORATION requires that Suppliers commit to the following objectives: Manage facilities, processes, Quality systems and personnel to consistently and cost effectively produce products and provide services that meet the needs of LINAMAR CORPORATION and its customers. Develop, implement and maintain Quality Planning tools ( APQP, FMEA's and Process Control Plans) to assure that product and service requirements are met. Provide objective evidence, using recognized standards that confirm initial sample requirements have been met, and that acceptable process capabilities for all Special/Control Characteristics have been established and are maintained.

7 Utilize appropriate statistical techniques for ongoing process control and improvement, reduction in part variation and waste through defect prevention. Actively engage in cost reduction / avoidance activities to the benefit of all stakeholders. Meet the expectations of society ( Workplace health and safety, the environment and energy conservation). General The basis for LINAMAR Corporations Supplier Quality System requirements is a combination of the Quality Management System - Requirement ISO 9001 and the AIAG's Quality Core Tools (VDA tools in Europe).

8 LINAMAR CORPORATION prefers third party registration and certification to IATF 16949. These systems complement each other and are the framework for the fundamental Quality system requirements for all Suppliers. These requirements are an integral and legally binding aspect of LINAMAR CORPORATION XR-12-C03-01-08 Rev 2. Supplier Quality Manual Purchase Orders and Contracts. Although this does not alter or reduce any other requirements of the contract, it does provide a concise understanding of LINAMAR CORPORATION 's Quality requirements .

9 Any questions or concerns regarding these Quality tools should be directed towards LINAMAR Supplier Quality . PURPOSE: The purpose of this Manual is to define LINAMAR CORPORATION 's processes and requirements for Suppliers in a clear logical format. The Manual is intended to communicate to all Suppliers, LINAMAR CORPORATION 's requirements and expectations, in an effort to eliminate all ambiguities and enhance communication between LINAMAR CORPORATION and the Supplier community. The common goal is to meet or exceed customer requirements for Quality , cost and delivery.

10 APPLICABILITY / SCOPE. This Manual applies to all Suppliers of direct material to LINAMAR CORPORATION , its companies and subsidiaries. RESPONSIBILITY. LINAMAR CORPORATION Supplier Quality is responsible for the content of this Manual . DEFINITIONS / ABBREVIATIONS. DEFINITIONS. Key Suppliers Suppliers that are critical to the achievement of LINAMAR CORPORATION 's objectives (new technology, long lead time, high volume, high cost). Supplier LINAMAR CORPORATION Tier I. Sub-Contractor LINAMAR CORPORATION Tier II. ABBREVIATIONS. APQP - Advance Product Quality Planning CC - Critical Characteristic CofC - Certificate of Conformance DFMEA - Design Failure Mode Effects Analysis ECAP - Equipment Capability Acceptance Process IMDS - International Material Data System MSA Measurement System Analysis XR-12-C03-01-08 Rev 3.