Quality Department SMP - Daimler AG

1 Quality Department SMP: Supplier Quality Assurance Manual SMP Number: PSQ Supplier Quality Assurance Manual (SQAM) Page 2 of 63 FORM QDF01 02 REV 12 APR2011 1 Supplier Quality Assurance Manual (SQAM) .. 5 Distribution .. 5 Purpose .. 5 Scope .. 5 Definitions/Acronyms .. 6 9 Roles of Supplier Quality in .. 9 Tasks/Responsibilities .. 10 Supplier General Matrix .. 11 2 Quality Activities Prior to Part and Process Approval (PPA) .. 13 Sampling Planning .. 13 Supplier Organization .. 13 Program Management .. 14 VDA RGA Program .. 14 Supplier Audits .. 14 VDA Process Audits .. 14 TRL Audit .. 15 PFA Audit .. 15 Key Quality Characteristics .. 16 Inspection Gauge Requirements .. 17 Testing Requirements and Responsibility.

2 17 Pre Launch Control Plan and Launch Containment Plans .. 18 Plan Requirements .. 18 Pre Launch Control Plan .. 19 The Launch Containment Process .. 19 Process Flow Chart, Control Plans and FMEA .. 19 Supplier Inspection Standards .. 19 Part E Level and Q Level History Tracking .. 20 Supplier Portal Applications .. 21 3 Production Process and Product Approval (PPA) .. 22 Series Production Approvals of Other Daimler Plants .. 22 Execution of the PPA 22 Identification/Labeling .. 23 Identification of Parts .. 23 Shipping Label .. 23 Part Specific Labels and/or Bar Codes .. 24 IMDS Requirements .. 24 FDOK Requirements .. 24 Trigger for the PPA Process .. 24 PPA Documentation Submission Requirements .. 25 Sample 27 PPAP Sample Part Submission Procedure.

3 28 Quality Department SMP: Supplier Quality Assurance Manual SMP Number: PSQ Supplier Quality Assurance Manual (SQAM) Page 3 of 63 FORM QDF01 02 REV 12 APR2011 Approval Status .. 29 Part Approval Matrix .. 30 Process Approval Matrix .. 31 Deviations .. 32 Changes Requiring Re Submission of PPAP .. 33 Delivery of New or Changed Production Product .. 33 Tier Supplier Responsibilities .. 33 Storage Periods .. 34 Reporting .. 34 4 Trial Series Support .. 35 Trial Product Measurement Requirements .. 35 Documentation to Accompany Parts .. 36 Supplier Maturity Vehicle .. 36 5 Production Launch Support .. 37 Launch Containment 37 On Site Supplier Resident Engineers/Supplier Representatives .. 37 Rework and Sort of Non Conforming Product.

4 37 Reworking of Non Conforming Product .. 37 6 Series Production Support .. 38 Containment of Non Conforming Product .. 38 Containment .. 38 Part Disposition .. 39 Rework .. 39 7 Corrective Action/Q H:ELP .. 40 Corrective Actions .. 40 Reporting Tool .. 40 Q H:ELP .. 40 Basic Approach .. 40 8 Gauge Standard .. 42 Scope .. 42 Responsibilities .. 42 Requirements .. 42 Kickoff Meeting .. 42 Design Approval .. 43 Final Approval .. 43 Production Implementation .. 43 Engineering Changes and Modification to the Gauge .. 43 Build Requirements .. 43 General Requirements .. 43 General Design .. 43 Bases .. 44 Quality Department SMP: Supplier Quality Assurance Manual SMP Number: PSQ Supplier Quality Assurance Manual (SQAM) Page 4 of 63 FORM QDF01 02 REV 12 APR2011 Body.

5 44 Datum .. 44 Clamps .. 44 Pins .. 45 Flush and Feeler Checks .. 45 SPC Checks .. 45 Identification .. 45 Build Tolerances .. 46 Buy Off Requirements .. 46 CMM Certifications .. 46 Gauge R&R Requirements .. 47 Maintenance Requirements .. 47 Storage .. 47 Repair and Maintenance .. 47 Re Certification .. 48 9 Supplier Evaluation System .. 49 Quality Performance Score .. 49 Distribution of Quality Score .. 49 Calculation of Quality Score .. 50 Range Table .. 50 Quality Performance Score Categories .. 51 Supplier Quality Performance Card Explanation .. 51 .. 52 Logistics Performance Score .. 53 Explanation of each Logistics KPI .. 53 On Time Delivery .. 53 ASN Errors .. 53 Mislabeled Parts .. 54 Responsiveness.

6 54 Blocks in Production .. 55 Expedited Shipment .. 55 Missed at Stations .. 56 RAN Scorecard Calculation .. 56 Logistics Performance Scorecard Explanation RAN Suppliers .. 57 SEQUENCE Scorecard Calculation .. 58 Logistics Performance Scorecard Explanation SEQ Suppliers .. 59 Logistics Performance Score Categories .. 60 10 Documents/References .. 61 11 Records .. 62 12 Revision/History .. 63 Quality Department SMP: Supplier Quality Assurance Manual SMP Number: PSQ Supplier Quality Assurance Manual (SQAM) Page 5 of 63 FORM QDF01 02 REV 12 APR2011 1 Supplier Quality Assurance Manual (SQAM) Distribution Suppliers of Mercedes Benz International, Inc. (MBUSI) Supplier Communication Guide (SCG) collaboration Teamplace Daimler Covisint Portal Purpose The purpose of this Supplier Quality Manual (SQAM) is to outline the minimum Quality requirements for the Suppliers of Mercedes Benz International, Inc.

7 (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.

8 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. Quality Department SMP: Supplier Quality Assurance Manual SMP Number: PSQ Supplier Quality Assurance Manual (SQAM) Page 6 of 63 FORM QDF01 02 REV 12 APR2011 Definitions/Acronyms AIAG Automotive Industry Action Group.

9 A Trade association consisting of 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)

10 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 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 Quality Department SMP: Supplier Quality Assurance Manual SMP Number: PSQ Supplier Quality Assurance Manual (SQAM) Page 7 of 63 FORM QDF01 02 REV 12 APR2011 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)