Supplier Quality Practice

8/6/2019 Supplier Quality Practice

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TITLE: PAGE OF

SEC. 1.0, TITLE PAGE 1 1

PROCEDURE #

L-PUR-25

REV.

G

DATE:

05/09/06

PREPARED BY:

STEVE FELLOWS

APPROVED BY:

CRAIG BENSON

MANUAL REVISION G

SUPPLIER QUALITY

MANAGEMENT GUIDELINES

Hi-Stat a Stoneridge CompanyLexington Division345 South Mill St.

Lexington, Ohio 44904Phone: (419) 884-1219

Fax: (419) 884-4196



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SEC. 2.0, TABLE OF CONTENTS 2 3

PROCEDURE # REV. DATE: PREPARED BY: APPROVED BY:

L-PUR-25 G 05/09/06 STEVE FELLOWS CRAIG BENSON

Quality System

Requirements

Supplier SelfSurvey

Hi-StatSupplier

Assessment

PPAP

Packaging,Identification,

VisualConditions

Forms

Purchase

OrderTerms

Q.C.Specification

MaintainingApproved

Status

Non-Conforming

Material

Dock to

Point OfUse

ContinuousImprovement

MaterialCertification

Supp lier Q ualityManagem ent Guidelines

Quality System Mgr.Supplier Quality Agent

Quality EngineerAPQP Engineer

Purchasing AgentSupplier Quality Agent

Quality EngineeringAPQP Engineer

Product EngineerManufacturing Operations


APQP Engineer



APQP EngineerQuality Engineer

Supplier

SelectionProcess



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SEC. 3.0, QUALITY SYSTEM REQUIREMENTS 4 7


L-PUR-25 D 06/02/05 STEVE FELLOWS DARREL GEORGE

B) Develop – Supplier’s scoring in the following range will have a

development action plan put in place.

70% -79% “Potential” Business Candidate (Due to moderatedevelopment needs)

The cross-functional team will decide the extent of the developmentand create a plan. Development may be conducted by the SDE or mayrequire the assistance of the Hi-Stat TQM team. This shall bedetermined when considering the extent of development needed andresources available to complete.

The ‘Supplier Selection Approval” form (L-QCP-F41) will be signed bythe cross-functional team as “Denied”.

The supplier’s status on the “ASL” will be “Conditional” untildevelopment is complete.

Once the development is complete the SDE will begin the process withan assessment, which will then have cross-functional team review andsign-off.

C) Re-Source – Supplier’s scoring in the following ranges will be placed ona re-source schedule immediately. The progress towardsre-sourcing will be tracked by the SDE through the“Supplier’s Top 10” list.

70% – 79% “Potential” Business Candidate (Due toextensive Development)

69% – and below “Not Viable” For Business (No systems inplace)

The “Supplier Selection Approval” form (L-QCP-F41) shall be signed bythe cross-functional team as “Denied”.

The supplier shall be placed on “Restricted” status on the “ASL”.

The re-source process shall begin immediately by the purchasingdepartment. The Purchasing Agent must follow the “Supplier SelectionProcess” as outlined in Section 4.0 of this manual.



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2. QUALITY REQUIREMENTS FOR SUPPLIERS OF MATERIALS, COMPONENTS

AND/OR PROCESSES

2.1 Hi-Stat will accept only purchased material, components, or processes whichmeet the agreed upon Hi-Stat drawings and/or specifications. The acceptancecriteria are ZERO defects. (See SEC. 13.0, QC SPECIFICATION QO1-0001).In order to obtain the above it will be mandatory that the supplier attend aAPQP design review meeting at Hi-Stat prior to the making of any tooling andrelease of product. Hi-Stat personnel should consist of Product Engineer,Manufacturing Engineer, Quality Engineer, APQP Engineer, PurchasingRepresentative, and Supplier Development Engineer.

2.2 The supplier is expected to perform the inspections and tests required tosubstantiate conformance to the applicable drawing and/or specifications. Thesupplier shall establish and maintain a system to assure that only the latestapplicable drawings/specifications are used.

2.3 The supplier is expected to use statistical methods to control and evaluateprocess variability and track continual improvement as well as its effectiveness.

2.4 The supplier is expected to submit, upon request, evidence of statistical controlfor all drawings/specifications with designated quality symbols noted on Hi-Stat's drawings. The supplier is expected to contact Hi-Stat’s SupplierDevelopment Engineer in the event of a Cpk value decreasing below the valuereported at time of PPAP as well as submit a documented plan to bring the Cpkvalue back up to PPAP value level or higher.

2.5 The supplier is expected to have documented Control Plans and WorkInstructions that will provide control of quality throughout the manufacturingprocess. Hi-Stat Supplier Development Engineer and APQP Engineer, inconjunction with the supplier, will develop the Control Plans and WorkInstructions. Hi-Stat's Supplier Development Engineer, APQP Engineer and/orQuality Engineer for that specific product are responsible for issuing finalapproval of the Control Plan and Work Instructions.



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2.6 The supplier is expected to maintain 100% on time delivery performance,which will be communicated in writing to them on a quarterly basis. In order tominimize the amount of inventory at Hi-Stat, Suppliers are expected to meetdelivery requirements, reduce lead times and react effectively to schedulechanges. A Purchasing Representative will evaluate shipments for timelydelivery and may issue a Supplier Corrective Action Report (SCAR) as deemednecessary.

NOTE: If the supplier is unable to meet Hi-Stat's delivery requirementsand the production schedules dictate that the product must be expeditedusing alternate transportation, the supplier will have the following

options:

A. Ship the product via expedited transportation at the supplier's expense. B. Immediately reimburse Hi-Stat for the difference in cost between the

original specified method and the expedited method.

2.7 Suppliers who are certified to TS16949, ISO 9001/ISO 9002, or ISO14001 areexpected to submit a copy of the current and appropriate registration certificateto Hi-Stat’s Supplier Development Engineer. Any change in status (loss,updated, new standard, etc.) must be reported to Hi-Stat’s SupplierDevelopment Engineer immediately

2.8 The supplier is expected to be familiar with the Automotive Industry ActionGroup (A.I.A.G.) Production Part Approval Process (PPAP). Included within thisSupplier Quality Management Guidelines are Hi-Stat's PPAP Requirements.

2.9 The supplier is expected to respond to all Supplier Corrective Action Reports(See SEC. 11.0, Non-Conforming Material for response times) submitted for allnon-conforming product or material received by Hi-Stat.

2.10 The supplier has the responsibility of ensuring that its sub-contractors havebeen approved and are under a controlled system of evaluation and review.

2.11 The goal of this Supplier Quality Management Guidelines is to select,development, and maintain our suppliers in accordance with the TS-16949requirements.

2.1.2 The supplier shall submit an “Annual Validation Report”. (per procedure L-QCP-32) This report will be submitted in the form of a PPAP, and follow theguidelines set in section 8 of this manual.



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3. QUALITY REQUIREMENTS FOR SUPPLIERS OF SERVICES

3.1 Suppliers of services include those companies that provide repair andmaintenance parts and/or services, calibration services for inspection,measuring and test equipment, test labs, common carrier transportationservices, consulting services, and tooling and equipment suppliers.

3.2 The specific quality requirements are provided by the requestor for theseservices and will be documented on or attached to the purchase order.

4. RESTRICTED SUBSTANCES / IMDS REQUIREMENTS

4.1 All suppliers of materials, components, processes, and/or services shall have aprocess to assure that governmental and safety constraints on restricted, toxic,and hazardous substances are complied with relative to purchased productsand the manufacturing process.In order for Hi-Stat to develop products whichare compliant to current Regulated/Restricted Substances policies of bothgovernmental agencies and our Customers, the supplier shall submit at thetime of PPAP all data information for reporting all restricted and controlledsubstances. This information shall be submitted through the IMDS system oron form L-ENG-F57 (see forms in section 15.0 of this manual).

5. HI-STAT'S CUSTOMER SPECIFIC REQUIREMENTS

5.1 Hi-Stat's customer specific requirements will be specified in the Production PartApproval Process (PPAP) as it applies to each of Hi-Stat's suppliers.

6. NAFTA REQUIREMENTS

6.1 Where applicable, Suppliers are required to provide the appropriate NAFTAdocumentation.



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SEC. 4.0, SUPPLIER SELECTION PROCESS 2 3


L-PUR-25 B 01/12/05 STEVE FELLOWS DARREL GEORGE

PURPOSE: To define the selection process for placing a Supplier on the "Approved

Supplier List".

SCOPE: This procedure is applicable to all current and potential suppliers of materials,processes, components and/or services used in the manufacture of Hi-Stat'sproducts.

DEFINITIONS: N/A

PROCEDURE:

RASI: Responsible: Purchasing Agent / Supplier Development EngineerAccountable: Purchasing AgentSupport: Director Materials & Logistics Management / Customer Reliability/Quality

Systems ManagerInform: Project Engineering

1. SELECTION PROCESS FOR SUPPLIERS OF MATERIALS, COMPONENTS,

EQUIPMENT, TOOLING, ANDPROCESSES

1.1 Supplier sourcing decisions require cross-functional approval of Purchasing,Supplier Development Engineer, Quality Engineer, APQP Engineer, ProductEngineering, and Manufacturing Operations.

1.2 Purchasing agent will make initial contact with potential suppliers byrequesting the minimum required quotes (2 domestic and 1 global).

1.3 Once the quotes are obtained the Purchasing Agent will request thecompletion of the TS-16949 Self-Survey (L-PUR-F31) from suppliers thatwere not chosen from either the “Approved Supplier List” or the “CorporateApproved Supplier List”. The potential supplier will have five (5) working daysto complete and return. Purchasing will also advise them to review theSupplier Quality Management Guidelines found at www.histat.com.

1.3.1 Minimum requirements must be met for consideration as a newsupplier to Hi-Stat.

• TS-16949 or ISO-9001/2000 Registration

• Ability to meet Hi-Stat’s engineering and quality

requirements



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SEC. 4.0, SUPPLIER SELECTION PROCESS 3 3



1.4 Purchasing will submit the self-survey to Stat’s Supplier Development

Engineer.

1.5 The Supplier Development Engineer will conduct an on-site Quality SystemAssessment at the potential supplier facility providing the supplier hassubmitted an acceptable TS-16949 Self-Survey.

NOTE: On sight surveys are only necessary if there is not a current surveyavailable from another Stoneridge Division. Supplier DevelopmentEngineer may conduct on-site surveys with the APQP or QualityEngineer or the Manager of Customer Reliability and Quality Systems.

1.6 Hi-Stat’s cross-functional team will meet and review all information providedfor final approval. All comments will be documented and all members of theteam will sign-off. (form L-QCP-F41)

1.6.1 The following will be used but not limited to in the decision makingprocess.

• Quality Standards Registration

• Current Supplier to a Stoneridge Division

•

Records of previously demonstrated capability andperformance

• Capacity limitations

• Financial stability

• Decreasing rating trend

• Ability to meet on time delivery requirements

• Ability to meet Hi-Stat engineering and qualityrequirements

• TS-16949 Self-Survey

• On-site Quality System Assessment

• Supplier attitude and market place reputation

1.7 The supplier will be notified within thirty (30) days of the results of the cross-functional team meeting by the Supplier Development Engineer. At this timethe Purchasing agent may or may not place the supplier on the ApprovedSupplier List.



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SEC. 5.0, SUPPLIER SELF SURVEY 2 2



PURPOSE: To define Hi-Stat's Supplier Self Survey process.

SCOPE: This procedure is applicable to suppliers of materials, components and/orprocesses used in the manufacture of Hi-Stat's products.

DEFINITIONS: N/A

PROCEDURE:

RASI: Responsible: Purchasing AgentAccountable: Director Materials & Logistics ManagementSupport: Supplier Development EngineerInform: Supplier Development Engineer

1. GENERAL

1.1 Hi-Stat requires each supplier to complete and submit a self-survey. Thisself-survey is comprised of the TS-16949 Supplier Self-Survey. The TS-16949 Supplier Self-Survey is required to be returned within 5 days of

request to Hi-Stat's Purchasing Department. Failure to return within the timelimit will result in a five point reduction on the onsite assessment.

2. TS-16949 SUPPLIER SELF-SURVEY

2.1 The TS-16949 Supplier Self-Survey (See SEC. 15.0, Forms) will be sent tothe supplier by a purchasing Agent. This survey allows Hi-Stat to evaluateand understand the suppliers current position and intentions in complyingwith the TS-16949 quality standard.

2.2 The completed survey will be reviewed by Hi-Stats Supplier DevelopmentEngineer.

2.3 If the survey is acceptable then the Supplier Development Engineer willcontact the potential supplier to set-up a date and time for the on-siteassessment.



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SEC. 6.0, SUPPLIER ON-SITE QUALITY SYSTEMASSESSMENT BY HI-STAT

1 3


L-PUR-25 C 06/02/05 STEVE FELLOWS DARREL GEORGE

S u p p l i e rD e v e l o p m e n t

E n g i n e e r c o n t a c t st h e s u p p l i e r t o

a r r a n g e t h ea s s e s s m e n t d a t e .

S u p p l i e r D e v e l o p m e n tE n g i n e e r a n d s e l e c t e d

t e a m m e m b e r w i lla s s e s s t h e s u p p l i e r

S u p p l i e rD e v e l o p m e n t

E n g i n e e rc o m p i l e s d a t a .

I s t h e s c o r i n g i n t h e“ A c c e p t a b l e ” a n d / o r

“ P r e f e r r e d ” l e v e l ?

1

Y E S

NOI s t h e s c o r i n g i n t h e

“ P o t e n t i a l ” l e v e l ?

2

Y E

S

N O

S u p p l i e rD e v e l o p m e n tE n g i n e e r w i ll

a r r a n g e c r o s s -f u n c t i o n a l t e a m

m e e t i n g

1

S u p p l ie r h a s as c o r e f r o m 3 4 8 t o

5 8 0 p o i n t s .

Re q u i r i n g l i t t l e ton o d e v e l o p m e n t

2

S u p p l ie r h a s as c o r e 2 3 3 t o 3 4 7

p o i n t s .

R e q u i r i n gm o d e r a t e to

e x t e n s i v ed e v e l o p m e n t .

Q u a l ity S y s te m A s s e s s m e n t

I s t h e s c o r i n g i nt h e “ N o t V i a b l e ”

l e v e l ?

3

Y E S

3

S u p p l ie r h a s as c o r e 2 3 2 o r

b e l o w .

N o tr e c o m m e n d e d fo r

b u s i n e s sc a n d i d a t e .

C r o s s -F u n c t i o n a l

t e a mr e v i e w s

d a t a .

A p p r o v e t o a d d a s as u p p l i e r t o H i - S t a t?

4

N O

Y E S

S u p p l i e rD e v e l o p m e n tE n g i n e e r w i ll

n o t i f y s u p p l i e ro f r e s u l t s

S u p p l ie r D e v e lo p m e n tE n g i n e e r w i l l n o t i fy

s u p p l i e r o f a s s e s s m e n tr e s u l t s

4

Q u a l i t y S t a n d a r dRe g i s t r a t i o n

C u r r e n t S u p p l ie rt o S t o n e r i d g e

C a p a b i l it y a n dP e r fo r m a n c e

F i n a n c i a l S t a b i l i t y

D e c r e a s i n g r a t in gt r e n d

A b i l i ty t o m e e t o nt im e d e l i v e ry

A b i l i ty t o m e e te n g i n e e r i n g a n d

q u a l i t yr e q u i r e m e n t s

S e l f S u r v e y

A s s e s s m e n ts c o r e

A t t i tu d e a n dM a r k e t P l a c e

S u p p l i er s u b m i ts m o r ee v id e n c e a n d / o r m a k e sc o r r e c t iv e a c t i o n s , a n d

s u b m i ts t o H i - S t a t’ sS u p p l i e r D e v e l o p m e n t

E n g i n e e r



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SEC. 7.0, MAINTAINING APPROVED STATUS 1 6


L-PUR-25 D 05/09/06 STEVE FELLOWS CRAIG BENSON

S u p p l ie r is o n t h e “ A p p r o v e dS u p p l ie r L i s t”

S u p p l ie r m u s tm a i n t a in t h e i r

q u a l i ty s y s t e m

P r o d u c ts p e c i f i c

r e q u i r e m e n t sm u s t b e

m a i n t a in e d

P a s s o n s i tes p o t a u d i ts

1 0 0 % o n t im ed e l i v e ry , a ta g r e e d p r i c e s

N o P l a n t d is r u p t i o n s

R a t in g m u s t

n o t f a l l b e l o w8 0 %

S u p p l i e rs a r e n o t if ie dq u a r t e r l y , u n l e s s

d e f i c i e n t t h e nm o n t h l y

P e r f o rm a n c e b a s e o n : P P M . O T D , P r o c e s s C o n t r o l,P P A P / P S W T i m e l i n e s s , P l a n t D i s r u p t i o n s / C o r r e c t iv e

A c t i o n s , IS O / T S C e r t i fi c a ti o n , L e a d T i m e R e d u c t i o n ,a n d C o s t Im p r o v e m e n t P a r t ic i p a t io n

S u p p l ie r s o f

s e r v ic e s m u s ta d h e r e t o

r e q u i r e m e n t s

o n P O

M a in ta in in g A p p r o v e dS t a t u s



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PURPOSE: To define the level of performance the Supplier must maintain for anapproved status.

SCOPE: This procedure is applicable to Hi-Stat's suppliers of materials, processes,components and/or services used in the manufacture of Hi-Stat's products.

DEFINITIONS: MDR - Material Discrepancy ReportSCAR - Supplier Corrective Action ReportPPAP – Production Part Approval Process

PPM – Parts Per MillionSREA – Supplier Request for Engineering Approval

PROCEDURE:

RASI: Responsible: Buyer/Supplier Quality AgentAccountable: Strategic Supply Chain ManagerSupport: Purchasing Agents, Director of Operations & Order Fulfillment,Inform: Director of Operations & Order Fulfillment

1. SUPPLIERS OF MATERIALS, COMPONENTS AND/OR PROCESSES

1.1 Once the approved Supplier begins supplying goods to Hi-Stat, they mustadhere to the following requirements to remain on Hi-Stat's ApprovedSupplier List with an "Approved" status:

a. Maintain their quality system to the fundamentals of the TS-16949Quality System requirements.

b. At the Supplier's facility, product specific requirements must beimplemented and maintained as approved during the PPAP.

c. Pass on-site spot audits by Hi-Stat auditors.d. 100% on-time delivery is expected. Delivery performance is based on

the due date +3/-0 days.e. No more than two Supplier SCAR’s and/or Supplier Concerns per

monthf. Material delivered at agreed upon prices.g. The Supplier’s Performance Rating cannot drop below 80% for three

consecutive months of shipments.



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2. SUPPLIERS OF SERVICES

2.1 For Suppliers of services to maintain their approved status they must adhereto the requirements specified on the purchase order.

3. PERFORMANCE REPORT

3.1 Hi-Stat maintains performance records for each active Supplier of productionmaterials, which includes the following information:

a. PPM Data

b. Deliveryc. Process Controld. PPAP/PSW Timelinesse. Plant Disruptions/Corrective Actionsf. ISO9000/TS16949 Certificationg. Lead Time Reductionsh. Cost Improvement Participation.

3.2 Suppliers will be advised of their performance scores on the Hi-StatSupplier Performance Rating Form, L-PUR-F29 (See SEC. 15.0, FORMS),at the end of each calendar quarter. Suppliers that fall into the unacceptable

threshold (below 80%) will be notified in the month of their deficiency.Suppliers are expected to use this document as a performance metric instriving for continual improvement.

4. Performance Scoring

4.1 PPM

a. This value is calculated using incoming supplier data from customerkey characteristics as defined on Hi-Stat drawings generating adefect per million value.

1 = > 5000 for the current month2 = < 5000 for the current month or 0 for less than 3 months running3 = 0 for running 3 month period4 = 0 for running 6 month period5 = 0 for running 12 month period



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4.2 On Time Delivery

a. On time delivery is calculated using a +3 / -0 days.

1 = < 100% OTD for 2 or more consecutive months2 = < 100% OTD for current month of 100% OTD for < 3 months3 = 100% OTD for running 3 month period4 = 100% OTD for running 6 month period5 = 100% OTD for running 12 month period

4.3 Process Control

a. Process Control is evaluated by comparing the received Cpk valueagainst the PPAP Cpk level for each component received for themonth.

1 = < 100% of critical product characteristics meet PPAP Cpk with noapproved SREA

2 = < 100% of critical product characteristics meet PPAP Cpk with aapproved SREA

3 = Critical product characteristics meet PPAP Cpk for running 6month period

4 = Critical product characteristics meet PPAP Cpk for running 12

month period5 = Critical product characteristics exceed PPAP Cpk for running 12

month period

4.4 PPAP / PSW Timeliness

a. Timeliness is evaluated on all PPAP submission for the currentmonth. If no PPAP submitted default is a 3.

1 = YTD < 100% on time and < 100% accepted2 = YTD 100% on time but < 100% accepted

3 = No PPAP or PSW submitted YTD4 = YTD < 100% on time but 100% accepted5 = YTD 100% on time and accepted



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4.8 Cost Improvement Participation

1 = No cost improvement plans submitted2 = Cost improvement plans rejected3 = Cost improvement plans submitted, to be realized within the next

six months4 = Cost improvement plans submitted, to be realized within the next

three months5 = Cost improvement plans submitted and realized within the

current month

5. REGAINING APPROVED STATUS

5.1 Once a Supplier is removed from the Approved Supplier List, they mustbecome re-qualified per the Supplier Selection Process (See SEC. 4.0,SUPPLIER SELECTION PROCESS).

STATUS DESIGNATIONS

5.2 Status A (Preferred & Approved) – Supplier’s who have earned aperformance rating of > 80% or received an assessment score > 348.Suppliers with this status are the only sources considered for Dock-To-Stockshipments.

5.3 Status C (Conditional) – Supplier’s who earned a performance ratingbetween 70% and 80% or an assessment score of 233 to 347. If a supplierearns this status, a corrective action and/or a development plan will beinitiated. These supplier’s are considered to be on new business hold.

5.4 Status R (Restricted) – These suppliers have earned a performance rating <

70% or an assessment score < 347. A re-sourcing plan will be considered ifappropriate.

NOTE: STATUS DESIGNATIONS ARE COLORED CODED FOR EASYREFERNCE ON THE APPROVED SUPPLIER LIST.



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b. Packaging Issues – deduction of one point for each

damaged shipment resulting from the Supplier’s packaging.

c. Premium Freight – deduction of one point for each shipmentresulting in premium charges that are Supplier related.

If a supplier knows in advance that they are unable to meet the requesteddue date, a call shall be placed to the appropriate Hi-Stat PurchasingAgent advising him/her of a new delivery date. The Purchasing Agentmay approve the new due date provided that the production schedule isunaffected by the change. If approved, the shipment may not beconsidered an early/late delivery.

SERVICE PERFORMANCE:

a. Responsiveness − Purchasing/Quality Issues:(Purchasing issues include: RFQ’s, P.O.’s, contracts, pricing,expediting, and paperwork).(Quality issues include: MDR’s, SCAR/Concerns, problemresolution, submission of IMDS data, and continual improvement).

NOTE: SUPPLIERS THAT ELECT NOT TO RESPOND TO QUALITYISSUES WITHIN THE TIME PERIOD GIVEN WILL RESULT INAN AUTOMATIC DOWNGRADE TO CONDITIONAL STATUSAND A LOSS OF 25 POINTS FROM THE CURRENTMONTHLY SUPPLIER RATING.

b. The Service Performance Rating is based on a scale of 0-10(0 = No response; 10 = Excellent response) with a number beingassigned by each contact Purchasing Agent and Expediter. If morethan one person has communication with a Supplier, the averageof the numbers assigned will be the rating.

3.4 Overall Performance Levels:

90 - 100% PREFERRED85 - 89% ACCEPTABLE80 - 84% NEEDS IMPROVEMENT0 - 79% UNACCEPTABLE



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4. REGAINING APPROVED STATUS

4.1 Once a Supplier is removed from the Approved Supplier List, they mustbecome re-qualified per the Supplier Selection Process (See SEC. 4.0,SUPPLIER SELECTION PROCESS).

STATUS DESIGNATIONS

5.1 Status A (Preferred & Approved) – Supplier’s who have earned aperformance rating of > 85% or received an assessment score > 348.Suppliers with this status are the only sources considered for Dock-To-

Stock shipments.

5.2 Status C (Conditional) – Supplier’s who earned a performance ratingbetween 79% and 84% or an assessment score of 233 to 347. If a supplierearns this status, a corrective action and/or a development plan will beinitiated. These supplier’s are considered to be on new business hold.

5.3 Status R (Restricted) – These suppliers have earned a performance rating <79% or an assessment score < 347. A re-sourcing plan will be considered ifappropriate.

NOTE: STATUS DESIGNATIONS ARE COLORED CODED FOREASY REFERNCE ON THE APPROVED SUPPLIER LIST.

6. Dock-To-Stock Reporting6.1 Dock-To-Stock (DTS) is reported as percentage of total shipments received.



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SEC. 8.0, PRODUCTION PART APPROVAL PROCESS 1 5



Supplier is“Production”

ready

Samples runin the

productionsetting

Samples forPPAP pulledfrom this run

Submission

Toolingcompleted

Samemachinery,equipment,

environmentsetting, etc.

Processshould run ata minimum ofone hour to

one shift

Samplesselected

randomly

Samples shouldbe representativeto each position

of a multiplecavity die, mold,tool, or pattern

Supplier tocomplete

dimensionallayout on

abovesamples

Supplier

submits PPAPto Supplier

DevelopmentEngineer

Quality /APQP

Engineer“Approves”

PPAP

Production Part Approval Process

SupplierDevelopment

Engineerreviews PPAP

for

completeness



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PURPOSE: To define Hi-Stat's Production Part Approval Process (PPAP) for

Suppliers.

SCOPE: This procedure is applicable to all suppliers of materials, components and/orprocesses used in the manufacture of Hi-Stat's products.

DEFINITIONS: PPAP - Production Part Approval Process

PROCEDURE:

RASI: Responsible: Purchasing AgentAccountable: Director Materials & Logistics ManagementSupport: Supplier Development EngineerInform: Quality or APQP Engineer

1. GENERAL

1.1 The PPAP is used to determine if all Hi-Stat drawings and/or specificationsare properly understood by the Supplier; and that the process has the

potential to produce product meeting these requirements during an actualproduction run at the quoted production rate.

2. DEFINITION

2.1 Production parts are manufactured at the production site using the productiontooling, gauging, process, materials, operators, environment, and processsettings, e.g., feeds/speeds/cycle times/pressures/temperatures.

2.2 Parts for PPAP must be taken from a significant production run. This runwould typically be from one hour to one shifts production. Parts from eachposition of a multiple cavity die, mold, tool or pattern are to be measured andrepresentative parts tested.

2.3 Production part review and approval are required for each part prior to thefirst production shipment.



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6. MASTER SAMPLES RETENTION

6.1 Master samples are to be retained for the same period as the production partapproval records or until a new master sample is produced for the same partnumber for the purpose of Hi-Stat's approval. Master samples are to beidentified as such and are to show Hi-Stat's approval date.

7. PARTS SUBMISSION STATUS

7.1 Suppliers will be notified by Hi-Stat's Supplier Development Engineer as tothe disposition of the submission. The appropriate Hi-Stat Quality Engineer isresponsible for disposition. If the Part Submission Warrant is rejected, the

Quality Engineer must indicate the reason for rejection. After sampleapproval, suppliers are responsible for assuring that future productioncontinues to meet all of Hi-Stat's requirements.

7.2 Suppliers must NEVER ship production quantities of their products beforereceiving Hi-Stat's approval.



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SEC. 9.0, PACKAGING, IDENTIFICATION, AND VISUALCONDITIONS 2 8



PURPOSE: To define Hi-Stat's requirements for packaging, identification and the visualcondition of material shipped by our suppliers.

SCOPE: This procedure is applicable to suppliers of materials, components, and/orprocesses used in the manufacture of Hi-Stat's products.

DEFINITIONS: N/A

PROCEDURE:

RASI: Responsible: Purchasing AgentAccountable: Director Materials & Logistics ManagementSupport: Process EngineeringInform: Sustaining Business Unit Manager

1. PROPER PACKAGING

NOTE: ALL INFORMATION LISTED IN THIS PROCEDURE MUST BE

IDENTIFIED AND ADDRESSED DURING THE APQP DESIGNREVIEW.

1.1 Materials must contain proper preservatives applicable to the materialcomposition, (ie: desiccants, vanishing oil, PAVCO treatment, sealed plasticbags, etc.).

1.2 Containers must be adequately sealed.

1.3 Containers must be placed so identification is easily located and readable.

1.4 Containers must not overhang pallets.

1.5 Containers must be secure to limit shifting in transit.

1.6 A 40-pound maximum weight limit must be observed. This limit includes thecombined weight of the containers and their contents. Larger packaging,such as tri-wall containers, metal tubs, etc., requires pre-approval fromHi-Stat's Purchasing Department.



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1.7 Pallets must be in good repair and not broken.

1.8 Pallets must not exceed 48" in length or width unless approved by theappropriate Hi-Stat personnel. Preferred sizes are 30" X 30" or 45" X 45".

2. PROPER IDENTIFICATION

2.1 Containers must be clearly identified with a bar code label (See Hi-Stat BarCode Label Questionnaire in SEC. 15.0, FORMS).

2.2 Labels should be a minimum of 4 inches by 6 inches in size and exposed onthe outside of each container (Figure 1).

Figure 1



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2.3 Labels must be formatted as shown on the examples in figure 1, and containthe following information:

a. Hi-Stat part numberb. Revision levelc. Lot quantityd. Hi-Stat purchase order numbere. Supplier Codef. Mfg. Date

2.4 Bar coding must comply with A.I.A.G. specifications and as required by Hi-Stat.

Bar Code Label Specifications:

1. Data Area Characters

The part number, quantity, purchase order number, supplier code,revision, serial number, and mfg. date shall be included on eachlabel in the designated areas and shall be displayed in both bar codesymbols and human readable characters.

2. Bar Code Symbology

The bar codes shall be of the 3-of-9 type (Code 39) and shallconform to the AIAG “Bar Code Symbology Standard for 3-of-9Codes.” The bar heights shall be a minimum of 0.5 inches and theaverage width of the narrow elements shall be within a range of0.013 to 0.017 inches. The ratio of the average width of the wideelements to the average width of the narrow elements shall be 3:1(2.8:1 to 3.2:1 allowable). A minimum 0.25 inches of leading andtrailing quiet zone shall be provided for each symbol.

The four characters ($, /, +, %) of the 3-of-9 symbology shall not beused on the shipping /parts identification label. Check digits shall notbe used in the bar codes.



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3. Titles

Titles should be 0.1 inches high and are to be shown as follows:PART NO., QUANTITY, PURCHASE ORDER NO., SUPPLIER,SERIAL, REVISION, and MFG. DATE.

4. Data Identifier Codes

An identifier code starting in the first position following the start codesymbol shall be used to identify the information to follow. This

character is not to be included in the human readable line, but isshown in human readable characters under the title for theappropriate data field. The identifier codes are assigned as follows:

(P) – Part Number(Q) – Quantity(V) – Supplier(K) – Purchase Order Number(E) – Revision(S) – Unique Serial Number – Individual Label(4S) – Unique Serial Number – Master Label

(D) – Mfg. Date

5. Part Number Area

The human readable part number shall be bold and a minimum of0.5 inches high. The bar code symbol for the part number shall bedirectly below the human readable characters. It shall be a minimumof 0.5 inches high and shall contain the data identifier (P forcustomer part number). The part number (in both human readablecharacters and bar code symbols) shall be printed exactly as itappears on the purchase order.

6. Quantity Field

The human readable quantity characters shall be a minimum of 0.5inches high. The bar code symbol for the quantity shall be directlybelow the human readable characters. This bar code shall be aminimum of 0.5 inches high and shall contain the data identifier (Qfor quantity). The maximum length for the quantity field is sixnumeric characters plus the data identifier (Q).



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11. Revision Level

The human readable revision level shall be a minimum of 0.2 incheshigh. The bar code symbol shall be directly below the humanreadable characters. This bar code shall be a minimum of 0.5 incheshigh and shall contain the data identifier (E). The maximum lengthfor the revision level is four alphanumeric characters.

12. Manufacture Date

The human readable manufacture date is shown in this field asMMDDYY with a minimum height of 0.2 inches. The bar codesymbol for the manufacture date shall be directly below the humanreadable characters. This bar code shall be a minimum of 0.5 incheshigh and shall contain the data identifier (D). The maximum lengthfor the manufacture date is nine numeric characters plus the dataidentifier (D).

13. Extra Fields

If extra fields are available, they may be used by the supplier for anytype of information necessary providing there are no bar codes.

14. MASTER LABEL

A master label shall be used when the pack contains multiple sub-packs of the same part number and purchase order number. Eachsub-pack of the multiple pack should be identified with an IndividualLabel. The total contents of a common, multiple, item pack shall beidentified with a master label.

At the top of this label, the heading MASTER LABEL should beprinted in bold 1.0 inch letters. The balance of the label shouldconform to the specifications for the individual label except that thedata identifier for the serial number shall be 4S instead of S. Theserial number, preceded by a 4S in the bar coded form only, shall bea unique number, not to be repeated over the course of a year. Thequantity on the master label shall be the total in all of the sub-packs.



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SEC. 10.0, MATERIAL CERTIFICATION 2 2



PURPOSE: To define Hi-Stat's Material Certification requirements.

SCOPE: This procedure is applicable to all new and current Suppliers of materials,components, and/or processes used in the manufacture of Hi-Stat's products.

DEFINITIONS: Material Certification: Contains actual readings of material properties.MDR – Material Discrepancy Report

PROCEDURE:

RASI: Responsible: Supplier Development EngineerAccountable: Customer Reliability / Quality Systems ManagerSupport: Purchasing AgentInform: Director Materials & Logistics Management

1. MATERIAL CERTIFICATION

1.1 When a Material Certification is required, a sample must be obtained from eachshipment of raw material received, and used for analyzing the property

composition of the material. Material certifications must be identify with a lotnumber and include the actual readings of the properties (chemical composition,physical properties, hardness, etc.) of the raw material. A copy of the MaterialCertification from the raw material supplier is sufficient.

1.2 Material Certification requirements are determined by the Product Engineer anddesignated on the drawing with the appropriate symbol. If the certification isrequired to be sent with each shipment, it may be stated on the Purchase Orderor communicated at design review. Material Certifications are required to be onfile at the Supplier's location at all times and subject to review or recall (in theform of a copy) as needed or demanded by Hi-Stat or its Customers. WhenMaterial Certifications are requested, a copy of the most recent lot processed isrequired.

1.3 Shipments received without the required material certification are considered anon-conformance requiring a MDR be processed.



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SEC. 11.0, NON-CONFORMING MATERIAL 2 5



PURPOSE: To define what Hi-Stat considers to be non-conforming material and the

method to be used to disposition the non-conforming material.

SCOPE: This procedure is applicable to all Suppliers of materials, components,services and/or processes used in the manufacture of Hi-Stat's products.

DEFINITIONS: SREA – Supplier Request for Engineering ApprovalSDE – Supplier Development Engineer

PROCEDURE:

RASI: Responsible: Supplier Development Engineer, Quality EngineerAccountable: Customer Reliability / Quality Systems Manager, Sustaining Business

Unit ManagerSupport: Purchasing AgentsInform: Director of Operations & Order Fulfillment, Director Materials & Logistics

Management.

1. GENERAL

1.1 Hi-Stat defines non-conforming material as the following:

a. Parts that are not to drawing specifications (physical, visual, ordimensional).

b. Mixed parts.c. Contamination (i.e. plastic runners, metal blanks, cleanliness, etc.).d. Lack of required Quality Control Documentation.e. Damaged parts.f. Parts that are not delivered on time.g. Not meeting purchase order requirements.

1.2 If a Supplier has a known non-conformance in a lot that is ready forshipment to Hi-Stat, they must receive documented approval from Hi-Stat'sPurchasing Department prior to shipment. The Supplier must obtain fromHi-Stat or from the Hi-Stat web site a "Supplier Request for EngineeringApproval" form (See SEC. 15.0 FORMS). This form must be completed andreturned to Hi-Stat for disposition. An approved SREA will serve as a recordof Hi-Stat's authorization for the Supplier to ship the specified non-conforming lot or to implement the requested change(s).



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1.3 If a minor non-conformance is found at Hi-Stat and the lot could be used

"AS IS," a small sample will be returned with a copy of Hi-Stat's "MaterialDiscrepancy Report" (MDR) or Supplier Concern form to the Supplier (SeeSEC. 15.0 FORMS). This is to prompt the Supplier's awareness of thenon-conformance in order for them to take appropriate action. A minornon-conformance is defined as a non-conformance that did not increasethe percentage of line scrap, cause un-necessary rework, and/or affect apass through characteristic. Supplier’s ratings are affected even thoughit’s a minor non-conformance.

1.4 If the non-conforming lot is discovered by Hi-Stat’s Metrology Lab and isdetermined to be not useable, it will be necessary for the Supplier to take

appropriate corrective action. Hi-Stat, in conjunction with the Supplier, willchoose one of the following actions to address the problem:

a. The Supplier can sort/rework the lot at Hi-Stat.b. The Supplier may have the lot returned at Supplier cost, if replacement

stock is available.c. The Supplier may choose to contact and hire at their cost, a sorting firm

to sort/rework the lot at Hi-Stat. (See approved sources below)d. The Supplier may choose to have Hi-Stat scrap the lot at Supplier cost.

Approved Sorting Firm:

• Spherion, 2282 Village Mall Drive Suite #2, Mansfeild, OH 44906Phone – 419-747-7479, Fax – 419-747-3874. Contact person willbe Beth Delaney

1.5 If the non-conforming lot is found on Hi-Stat’s production line (See Note 1below) and is determined to be unusable (See Note 2 below), the Supplierwill have three possible options. Those options (listed in order of Hi-Stat’spreference) are:

1. Expedite “certified” product to Hi-Stat.

2. Provide “qualified” personnel to sort at Hi-Stat.3. Supplier compensates Hi-Stat to sort. This is not an elective for the

supplier. This is to keep production flowing until otherarrangements are made.

Note 1: All time accumulated by Hi-Stat per this procedure will bedocumented on Form L-PUR-F30, Supplier Sort Charges (See SEC.15.0, FORMS).



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Note 2: If there are no other acceptable lots available in Hi-Stat’s

inventory, the Supplier will be required to act immediately in order toallow Hi-Stat to maintain production requirements and minimize thecosts associated with non-conforming product for both parties.

1.6 In order to prevent the problem from recurring, Hi-Stat's SupplierDevelopment Engineer will send the Supplier a "Supplier Corrective ActionReport" (SCAR). This form (See SEC. 15.0, FORMS) will be attached to acopy of the "MDR", which is required to be completed by the Supplier andreturned to Hi-Stat's Supplier Development Engineer within 10 working daysof the origination date. Initial response must be given within 24 hours. Thiswill serve as a written record to Hi-Stat showing how the Supplier corrected

the problem to prevent future recurrences. Consequences for failure torespond see section 7.0 Maintaining Approved Status.

NOTE: THE FOLLOWING IS WHEN A SCAR SHALL BE ISSUED, BUTNOT LIMITED TO:

A) If the disposition of the MDR creates a line shutdown.B) If the disposition of the MDR creates an increase in the

percentage of line scrap.C) If there is an addition of rework or a secondary operation

in order to use the components.

D) If the product is to be sorted prior to use.E) Supplier Concerns have previously been issued withinthe last 30 days for this non-conformance.

NOTE: THE FOLLOWING IS WHEN A QUALITY OF SERVICE CHARGESHALL BE APPLIED TO A MDR, BUT NOT LIMITED TO:

A) Anytime the Quality Engineer has issued a SCAR.B) Anytime the on time delivery date is not met.

1.7 In the event of a product problem discovered at Hi-Stat, the Supplier will be

responsible for taking the appropriate immediate containment action on theircurrent inventory to prevent further shipments of non-conforming product.Maintaining containment of in transit shipments will be the responsibility ofthe supplier. Containment action should be reported to Hi-Stat within 24hours. All shipments to Hi-Stat until corrective action is obtained must be100% sorted and labeled as certified product.



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2. RECOVERY COSTS ASSOCIATED WITH UNACCEPTABLE QUALITY

2.1 Hi-Stat’s Suppliers are expected to be responsible for costs incurred byHi-Stat as a result of supplier quality related issues. These costs include:added production costs (i.e., sorting, rework, scrap, etc.) and freight costs.The recovery process for the incurred costs will be through the issuance ofdebits.

Hi-Stat’s intent is to be fair in the settlement of costs associated withsupplier quality problems. The assessment of accountability andevaluation of costs will be based on justifiable reasoning in order to

establish mutual consideration.

Any questions and/or concerns related to the associated costs should bedirected to the appropriate Purchasing Agent or the Director Materials &Logistics Management.



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SEC. 12.0, CONTINUAL IMPROVEMENT 4 4



4.0 SUPPLIER COST REDUCTION EFFORT

4.1 Hi-Stat's Suppliers are expected to evaluate and submit for approval,proposals that reduce cost, eliminate waste, and improve quality. A welldefined total cost reduction program shall be implemented at the Supplier'sfacility so that component costs are reduced as the component maturesalong the learning curve. Any cost savings realized would be shared betweenHi-Stat and the Supplier.



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SEC. 13.0, Q.C. SPECIFICATION Q01-0001 1 5


L-PUR-25 C 03/24/06 STEVE FELLOWS CRAIG BENSON

C r i t i c a lC h a r a c t e r i s t i c s

U n - M a r k e dC h a r a c t e r i s t i c s

P a s s - T h r o u g hC h a r a c t e r i s t i c s

D e s i g n a t e d o nd r a w i n g s w i th

a f la g s y m b o lc o n t a i n i n g C p kl e v e l r e q u i r e d

D e t e r m i n e d b y H i - S t a t ’s

A P Q P a n d / o r Q u a l i tyE n g i n e e r d u r i n g d e s i g n

r e v i e w

S u p p l ie r a d d st o P F M E A a n d

C o n t r o l P l a n

S u p p l i e r s u b m i tsd a t a t o H i - S t a t w i th

s h i p m e n t s p e r

r e q u i r e m e n t s i np r o c e d u r e

I s t h e d a t a a c c e p t a b l e

t o p r i n t r e q u i re m e n t sa n d t o c r i t e r i a i n

p r o c e d u r e ?

N O

Y E S

C o m p o n e n t sa r e a p p r o v e d

fo rp r o d u c t i o n

M a t e r ia l

D i s c r e p a n c yR e p o r t F i le d

M D R

p r o c e d u r ef o l lo w e d a n d

C o r r e c t i v ea c t i o n i s s u e d

S u p p l i e rC o r r e c t s

P r o c e s s

S u p p l i e ra n s w e r s

c o r r e c t i v ea c t i o n

H i - S t a t ’ sS u p p l i e r Q u a l i tyA g e n t f o l lo w s -

u p o nc o r r e c t i v e

a c t i o n

Q C S p e c if ic a t io n s

S u p p l i e r m o n i t o rs

a n d c o l le c t s d a t af o r e a c h d e s i g n a t e d

c h a r a c t e r i s t ic p e r

t h e p a r a m e t e r s o nt h e p r o c e d u r e

M a r k e dC h a r a c t e r i s t i c s



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PURPOSE: To define the application of Q.C. Specification QO1-0001 noted on Hi-Stat

drawings.

SCOPE: Use of this procedure applies to Suppliers and all internal Hi-Stat functionsverifying conformance of component parts, materials or processes to drawingspecifications.

DEFINITIONS: Cpk: Capability Index for a stable process.

PROCEDURE:

RASI: Responsible: Project Engineer Accountable: Business Unit Manager Support: Purchasing AgentInform: Buyer/Supplier Quality Agent

Any parameter or dimension not meeting specified requirements on the drawing isconsidered a non-conformance. Parameters and/or dimensions (characteristics) shown onHi-Stat drawings are classified according to their seriousness by application of theappropriate Cpk level requirement inside the flag symbol.

Suppliers of materials, components and/or processes are required to produce components

which are centered about the target or nominal value. Documentation (ie: control charts,Cpk, etc.) must be maintained by the supplier demonstrating statistical control of theprocess for the appropriate Cpk level noted on Hi-Stat's drawing.

1. CRITICAL CHARACTERISTICS

a. Critical characteristics are designated on Hi-Stat drawings by the flag symbol( ), which will be located next to the dimension with the requirement. Inside thissymbol will be the Cpk level requirement for that dimension. The Supplier'smanufacturing process is required to produce a normal curve per the designation

equal to a minimum of +/- 4 sigma (8 standard deviations) within specification which isequal to a 1.33 Cpk, or a normal curve of +/- 3 sigma within specification, which isequal to a 1.00 Cpk. Appropriate control charts (Xbar-R) must be used with aminimum of 100 samples to prove stability.

⌂



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NOTE: Cpk provides a combined measure of the amount of part-to-part variability within a

process and the relationship of process average to the specification limits. A Cpk value iscalculated when variable data are used to evaluate product quality. The process must bestable or in "statistical control" before a valid Cpk value can be determined.

Cpk = distance from process average to nearest spec limit3 (process standard deviation)

The higher the Cpk value the more capable a process is to repeatedly produce parts thatare within specifications.

b. A critical characteristic is one that judgement and experience indicate can affect:

- safe vehicle/product function.- product life.- meeting customer specifications.- assembly.- use requiring additional operations to make the part operational or functional.- compliance with government regulations.

2. MARKED CHARACTERISTICS

a. Marked characteristics are designated on Hi-Stat drawings by the flag symbol

( ) with the letter “M” inside, this symbol will be located next to the dimension withthe requirement. All marked characteristics are declared as “Zero Defects” TheSupplier must use "Zero Defects" sampling methods for marked characteristics.

⌂ b. Marked characteristics on Hi-Stat drawings are designated as requiring ongoing

process monitoring after an approved First Piece Dimensional Layout. Hi-Stat'sControl Plan and/or Work Instruction to the Supplier will dictate the ongoing processcontrol requirements for marked characteristics.

3. UNMARKED CHARACTERISTICS

a. All unmarked characteristics are declared as “Zero Defects” The Supplier must use"Zero Defects" sampling methods for unmarked characteristics.

b. Unmarked characteristics on Hi-Stat drawings are not designated as requiringongoing process monitoring after an approved First Piece Dimensional Layout



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4. PASS THROUGH CHARACTERISTICS

4.1 Pass through characteristics are those that will have potential fit and/or functionalissues that will not be detected within the customer’s manufacturing process. Proper fit assures the mating part(s) will assemble properly. Functionality assures the part(s)are 100% functional over the entire operating range.

4.2 Pre-Production

a. Pass through characteristics will be developed from the customer’s top levelprint and documented during the design review process. This will be done bythe APQP or Quality Engineer.

b. The supplier shall submit evidence of an acceptable capability process for each pass through characteristic identified at the time of PPAP. Failure to doso or submitting an unacceptable Cpk level will result in rejection of the PPAP.

c. The supplier will be required to add the pass through characteristics to their PFMEA and control plan.

d. 100% in-process inspection (go/no go gages, vision system, etc.) prior toshipping may be required for any process that is not controlled and stable.

e. The supplier is required to submit data with every shipment to comply with Hi-Stat’s Dock-to-Point-of-Use program. This data will be monitored by Hi-Stat’sMetrology Lab and any non-conformances will result in the processing of aMaterial Discrepancy Report.

f. The supplier will be notified by Hi-Stat’s Supplier Quality Agent of the non-conformance and a Supplier Corrective Action will be issued.

5. POST PPAP

a. Supplier will be required to submit data as required by the APQP Engineer.

This data may be reviewed by Hi-Stat’s Metrology Lab or the APQP Engineer,and any non-conformance will result in a material discrepancy report beingfiled.

b. Supplier Corrective Action will be issued by the Supplier Quality Agent. Thesupplier will then have to submit data with every shipment until processstability is regained and corrective action is closed.



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6. LOT SAMPLING USED AT HI-STAT'S RECEIVING INSPECTION DEPARTMENT

All Hi-Stat Customers expect their product to be delivered with zero defects. Conformanceto drawing specifications will be evaluated by Hi-Stat using the following plan andprocedures.

a. In support of this Customer expectation, Hi-Stat's Metrology Lab utilizes the followingsample size:

Diamond Symbol: n=30Square Symbol: n=30Circle Symbol: n=30

No Symbol: n=10

b. Selection of the sample from the lot received from the Supplier must be a randomselection where each part in the shipment has equal opportunity in being selected.The acceptance number in all cases is zero. The Metrologist only accepts theshipment if zero non-conformances are found in the sample.

c. Sample sizes for variables/attribute data collected by Hi-Stat's Metrology Lab may bereduced to 10 parts per shipment after 5 consecutive manufacturing production lotshave been received with no non-conformances found and all stated Cpk requirementson the drawing (evaluated as Ppk) were met or exceeded. This reduced sampling

does not require the Supplier to have an "Approved" rating or be qualified for "Dock toPoint of Use" status.



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SEC. 14.0, DOCK TO POINT OF USE 1 3



Storeroom M aterialCoordinator receives

components

StoreroomMaterial

Coordinatorverifies

inspection datawas de livered

with the shipment

Was datadelivered?

NO

Y E S

NotifyMetrology to

begin theMDR process

and placeshipment on

hold

Storeroom M aterialCoordinator will not re-

label with Hi-Stat barcode labels

Metrology w illenter the data

into the

Infinityprogram

Y E S

Storeroom

MaterialCoordinator

will stampand place onemaster label

on each palletof material

StoreroomMaterial

Coordinatorwill move the

ma terial tothe line

Metrology w illprocess MD Rfor any non-

conformances

Dock to Point of Use



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PURPOSE: To define the "Dock to Point of Use" procedure and its application.

SCOPE: This procedure is applicable to Suppliers of materials, processes, andcomponents and Hi-Stat's Metrology Lab Process.

DEFINITION: PPAP - Production Part Approval ProcessDPU – Dock to Point of Use

PROCEDURE:

RASI: Responsible; Buyer/Supplier Quality AgentAccountable: Strategic Supply Chain ManagerSupport: Purchasing AgentInform: Director of Operations

Hi-Stat's goal in developing its Suppliers is for every Supplier with an "Approved" statusto also meet the "Dock to Point of Use" requirements for each part number they supply.

Dock to Point of Use (DPU) is a status that is applied on a per part basis that allows Hi-Stat's Metrology Department to only verify the certification and data provided by the

supplier for the shipment while sending the components to stock (Dock to Point of Use).Variables/attribute data collection is not required by Hi-Stat's Metrology Department withthis status.

1. DPU status for each part number is earned by achieving the following items:

a. "Approved" Supplier status.

b. Maintaining "Approved" Supplier status.

c. Approved PPAP (where required) on file for the part number.

NOTE: See SEC. 3.0 (Quality System Expectations) and SEC. 8.0 (ProductionPart Approval Process) that define PPAP requirements.



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d. Required inspection data as defined on the Work Instruction for 5 shipments or until

sufficient evidence of a stable process can be proven. Then required data / certification is received from the Supplier or evidence that the Supplier is retainingrequired inspection data for the part number.

e. Five (5) consecutive shipments received for the part number without any Supplierfault non-conformances found during inspection and/or during the assemblyprocess.

f. The Metrology Lab Supervisor will maintain a list for the Receiving Dock of allsuppliers that DO NOT have DPU Status

2. The DPU status for a part number is removed if any items in paragraph 1 above are notmet and requires returning to full inspection as described in the work instruction for thatpart number.

3. If DPU status for a part number is lost, it can be obtained again by achieving the itemsoutlined in paragraph 1 above.

4. If a part number loses Dock to Point of Use status (for quality related issues only) morethan two (2) times within a 12 month period, it will require a new PPAP submission from theSupplier to regain the DPU status. Once the new PPAP is approved, the DPU status canonce again be obtained providing all requirements in paragraph 1 have been met.

5. Hi-Stat's Metrology personnel are required to accurately record Supplier performance toassure Dock to Point of Use requirements are met and utilized as much as possible.

6. Hi-Stat’s Metrology Lab personnel are required to enter supplier data (until full DPU statusis obtained) into the infinity system and notify the Buyer/Supplier Quality Agent of anytrends in the data that could potentially move to a non-conformance.

7. A shipment received without certification and data as required will be considered a non-conformance and a MDR will be processed. Supplier will lose DPU status.

8. Any non-conformance found on the line will result in the components being returned to theMet lab for a MDR to be processed. Supplier will lose DPU status.



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SEC. 15.0, FORMS 1 1



PURPOSE: To define form(s) disclaimer.

SCOPE: This procedure is applicable to all Suppliers of materials, components, servicesand/or processes used in the manufacture of Hi-Stat's products.

DEFINITIONS: N/A

PROCEDURE:

1.0 FORMS

All forms outlined in each section of the Supplier Quality ManagementGuidelines can be obtained using the “FORMS” link located at www.histat.com.To assure proper form and current revision level is used, be sure to check the“FORMS” link at www.histat.com for any updates. If you have any questions,please contact the Supplier Development Engineer.



Supplier: If you are IMDS registered, do not fill out this form.

Contact Name: Please use the Hi-Stat ordered part number and descr

Phone Number: E-Mail:

Component

Part Number

(Hi-Stat)

Part Name /

Description

Part

Rev.

Level

Piece

Gram

Weight

Weight

Tolerance

(%)Material Name

Material

Number

Material

Trade Name &

Supplier

Classification

Polymeric

part(s)

marked?

Yes / No /

Not Applicable

Does Material

contain

Recyclate?

Amount?

Norms /

Standards

% of

Component

* IF MATERIAL USED IN A COMPONENT IS A STANDARD MATERIAL (i.e. : 12L14 STEEL, 1010 STEEL, 260 BRASS, etc.), SUBSTANCES DO NOT NEED TO BE LISTED. PLEASE PLACE IN SUBSTA

If not IMDS registered, please provide the following information for each product you supply to Hi-Stat Mfg., Lexington Division

DISCLAIMER OR REMARKS TO ADD TO THE IMDS DATA:

Component Data Material Data

Hi-Stat

A Stoneridge Company

Material Data Information for the Reporting of Restricted and Controlled Substances

To be provided to Hi-Stat Manufacturing

If you have any questions, please contact:

Darrel D. George, Quality Systems Manager, at 419-884-4176 or [email protected]

Jen Conover, IMDS Coordinator, at 419-884-4179 or [email protected]



QUALITY MANAGEMENT SYSTEMSELF-SURVEY

PAGE: 1 OF: 5

L-PUR-F31 REV.

DESCRIPTION OF REQUIREMENT YES NO EVIDENCE EXAMINED-REMARKS

QUALITY MANAGEMENT SYSTEM1) Is there evidence of an implemented

advanced product quality planningprocess?

2) Do process FMEA's consider allSpecial Characteristics?

3) Are control plans developed, inaccordance with the AIAG PPAPManual by a multidisciplinaryapproach to the system, subsystem,

component, and/or material level,and list all controls used for processcontrol?

4) Does the supplier utilize a partapproval process forsubcontractors?

5) Is there evidence of continuousimprovement in quality (extending toproduct characteristics), service(timing and delivery) and price thatbenefit all customers?

6) Are methods developed forevaluating the effectiveness ofexisting operations and processeswhich consider the overall workplan, appropriate automation,ergonomics and human factors,operator and line balance, storageand buffer inventory levels, andvalue added labor content?




PAGE: 2 OF: 5

L-PUR-F31 REV.


7) Has the supplier established andimplemented a system for toolmanagement that includesmaintenance and repair facilitiesand personnel, storage andrecovery, set-up and tool changeprograms for perishable tools, toolmodification including tool designmodification?

8) Are appropriate technical resources

available for tool and gage design,fabrication and full dimensionalinspection or if tooling activities aresubcontracted, is there a system totrack and follow-up these activities?

PROCESS CONTROL

9) Does the supplier have contingencyplans to reasonably protect thecustomer's supply of product in theevent of emergency?

10) Do controlled conditions include themonitoring and control of suitableprocess parameters and productcharacteristics, includingdesignation and documentation ofSpecial Characteristics?




PAGE: 3 OF: 5

L-PUR-F31 REV.


11) Have documented processmonitoring and operator instructionsderived from the sources listed inthe Advanced Product QualityPlanning and Control Plan referencemanual, or equivalent sources, beenprepared for all employees havingresponsibilities for operation ofprocesses and are they accessibleat the workstation?

12) Do process monitoring and operatorinstructions include or reference, asappropriate:

• Operation name and number keyedto process flow diagram?

• Part name and part number?

• Current engineering level/date?

• Required tools, gages and otherequipment?

•

Material identification anddisposition instructions?

• Customer and supplier designatedSpecial Characteristics?

• SPC requirements?

• Relevant engineering andmanufacturing standards?

• Inspections and test instructions?

• Reaction plan

• Revision date and approvals?

• Visual aids?• Tool change intervals and set-up

instructions?




PAGE: 4 OF: 5

L-PUR-F31 REV.


12) Does the supplier maintain orexceed the process capability orperformance as approved by PPAPthrough the implementation andadherence to the Control Plan,Process Flow Diagram,measurement technique, samplingplans, and reaction plans whenacceptance criteria is not met?

INSPECTION & TESTING

13) Does the supplier ensure thatincoming product is not used orprocessed (except for urgentproduction purposes), until it hasbeen inspected or otherwise verifiedas conforming to specifiedrequirements in accordance with thequality plan and/or documentedprocedures?

14) Does the quality plan (Control Plan)mandate that all specifiedinspections and tests, incoming, inprocess, and final, must beperformed and that they meetspecified requirements?

15) Does the supplier maintain recordswhich provide evidence that theproduct has been inspected and/ortested clearly showing whether theproduct has passed or failedinspection based on the defined

acceptance criteria, and identifyingthe authority responsible for theproduct release?




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L-PUR-F31 REV.


16) When the supplier usesindependent/commerciallaboratories are they accredited?

CONTROL OF NONCONFORMING PRODUCT

17) Does the control of nonconformingproduct and suspect material orproduct provide for identification,documentation, evaluation,segregation (when practical),disposition, and for notification of all

appropriate functions?18) Does the supplier quantify and

analyze nonconforming product,establish a prioritized reduction planand track progress?

19) Does the supplier obtain customerauthorization prior to shipmentwhenever product or process isdifferent from the current PPAPapproval?

CORRECTIVE & PREVENTIVE ACTION

20) Does the supplier use a disciplinedproblem solving method to addressinternal or externalnonconformances?



Assessment Date:

Supplier Address:

Supplier Phone/Fax:Supplier Contact:

Supplier Quality System Assessment

Supplier Name:

Supplier Commodity:

Hi-Stat


President:

Vice President Sales:

V.P. Manufacturing:

Sales Manager:

Q.A. Manager:

Engineering Manager:

NAME OF PRINCIPLE OFFICERS

Page 2 L-PUR-F15 Rev. B



Assessment Date:

Supplier Address:



Supplier Name:

Supplier Commodity:

Hi-Stat


Yes or No:

2003: 2001:

2002: 2000:

Sales To Stoneridge Last 4 Years:

2003: 2001:

2002: 2000:

Estimated Sales: 2004: 2005:

If yes, describe below (e.g.; ethnicity,

sex, disabled, veteran, etc…):

FINANCIAL INFORMATION

Ownership:

Sales – Last 4 Years:

Do you have Minority Owned

Business Enterprise Status?

Publicly Held Privately Held




Assessment Date:

Supplier Address:



Supplier Name:

Supplier Commodity:

Hi-Stat


f the financial data requested is not available to Stoneridge please explain:

Yes No

Rating

Financial Statement Available? Yes No

Any Outward Sign of Financial Weakness? Yes No

Financial Statement Attached? Yes No

Additional Comments:

s company rated by Dunn and

Bradstreet?




Assessment Date:

Supplier Address:



Supplier Name:

Supplier Commodity:

Hi-Stat


Screw Machine Thread Coating Connectors

Metal Stamping Precious Metal Plating Fasteners

Metal Drawing PC Boards IPC training/Level

Welding Cables & Wire Electro-Plating

Molding Sorting Annealing

Plastics Cleaning Ryton

Polyimide Extrusion RTD

Teflon Castings Thermocouples

Tooling Inspection Services Heaters

Kapton Film Engineering Testing

COMPETENCIES




Assessment Date:

Supplier Address:



Supplier Name:

Supplier Commodity:

Hi-Stat


Facilities List:




Assessment Date:

Supplier Address:



Supplier Name:

Supplier Commodity:

Hi-Stat





Assessment Date:

Supplier Address:



Supplier Name:

Supplier Commodity:

Hi-Stat


5. What is the RFQ Capture Ratio?

6. Is a Facility List Attached?

4. Square Footage of Facilities:

5. Number of Employees:

6. Number of Shifts:

3. What is the PPAP First Pass % ?

4. What is the RFQ Response Time?

1. What is the On-Time Delivery % ?

2. What is the PPAP On-Time % ?

7. Manufacturing Capacity:

Manufacturing:

8. In-House Tooling Capabilities:

Direct Labor:

Office:

9. Organizational Chart Attached:0. What % of Stoneridge Business Would Make

he Business Un-Comfortable?

MISCELLANEOUS

Indirect Labor:

. Other Automotive Customers:

2. Other Major Customers:

3. Awards Received:




Supplier Name: 0 Assessment Date:

Category Requirements Results (Evidence Obtained) Weight

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Quality 1. Parts Per Million External PPM’s < 100 PPM 4.4 0

Internal PPM’s < 1000 PPM

How are internal PPM’s

addressed for continuous

improvement?

Are customer PPM’s

monitored and if so is the

trend positive. Is there a

metric to reduce PPM levelplant wide?

Are supplier PPM’s

monitored?

Is there a formal review

process with the entire

management team that

includes the PPM metric?

2. Corrective Action Disciplined Corrective action

implemented & verified

effectively. (Internal &

External)

4.4 0

Few/No repeats.

Are repeats tracked and

addressed in a formal

fashion using the Pareto

principle to prioritize

activities.


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0

0

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2. Corrective Action Continued

Are all actions tracked fortimeliness, is there a formal

tacking mechanism to

monitor and report out

performance?

Are there performance

expectations with respect to

timing?

Do all customer complaints

have management review?

3. QS-9000 / ISO 14001 /

TS16949 / ISO 9001 2000

QS-9000/TS16949

Alignment/Certification, ISO14001 certification or

implementation plan.

4.4 0

Knowledge of industry

specific standards that are

being developed or are

developed that will replace

the current standards such

as TS 16949 and IS0 9001

2000.

Does the organization have

an AIAG membership or anequivalent system for getting

the latest information on

available standards and

updates?

Are there plans in place to

get certification to the latest

industry standards if not

currently in compliance?






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0

0

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0

0

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4. Lean Manufacturing / Six Sigma

Lean ManufacturingKnowledge and

implementation of basic

tools. (Inventory levels, visual

factory, P.M., Employee

Involvement)

4.4 0

Are P.M. systems linked to a

database for tracking?

Are P.M.s effective (planned

vs. unplanned)?

Is OEE , Takt time FTT,

being measured?Is the Lean program linked to

Six Sigma or cost reduction

activities?

Six Sigma methodologies

understood and practiced

throughout the facility.

Is the infrastructure in place

to support a Lean/Sigma

activity?

Though not formalized is

there an understanding of theconcepts with some

implementation?

5. Continuous

Improvement

Is there evidence available to

support a formal continuous

improvement program?

4.4 0

Is the Management team

involved in the program?






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5. Continuous Improvement Continued

Is the program inclusive ofthe entire organization?

Are projects or continual

improvement items derived

from a corporate perspective

or independently established

by teams, section, or product

etc?

Is there evidence of

organizational improvementgoals?

Are there ramifications for

not meeting improvement

goals?

Is the improvement program

tied to employee

performance, compensation,

gain sharing, profit sharing

etc?

6. PPAP Methodology Control Plan Methodology

actively deployed andunderstood. (FMEA’s,

GR&R’s, SPC, Process Flow

with Controls etc.)

4.4 0

Is the PPAP process a

standard part of the business

process.

Are AIAG guides (PPAP,

MSA, SPC etc.) available

and to the latest revision?






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6. PPAP Methodology Continued

Is there a industry specificAPQP package available to

produce PPAP

documentation, or is home

grown software being used.

Is there a formal system in

place with respect to record

& sample retention?

Has the supplier

demonstrated the capability

to produce a PPAP package

capable of meeting the AIAGand Stoneridge

requirements?

Is the evidence available to

support the capability to

produce a PPAP package.

Is the entire process defined

and is it a team approach?

7. Measurement

Capability

Can the sub-contractor

demonstrate the ability anddoes the equipment exist to

meet AIAG & Stoneridge

requirements.

4.4 0

Is there a sound

understanding of GD&T as

well as basic dimensioning

techniques?






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7. Measurement Capability Continued

Is the Equipment (CMM,Vision Systems, Comparator)

available to support the

measurement requirements?

List all equipment.

Does the organization have

qualified resources to

support the measurement

requirements and

organizational needs?

Does the organization havethe ability to perform GR&R’s

to the AIAG MSA guide?

Is the latest MSA guide

available and is there

evidence available to support

the claim?

Does the measurement

competency support the

technology requirements,

and if not is an approvedcertified outside source

available?

Does the organization have a

measurement capability or

competency that they would

consider a competitive

advantage in their industry?






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8. Calibration What is the currentcalibration software being

used?

4.4 0

Are calibrations done in-

house or outsourced?

Were there any devices

observed to be past due forcalibration?

If outsourced, are only

certifed labes used?

Are all personnel trained for

technician status?

9. APQP/PPAP Output Is there a formal process

defining the APQP process?

4.4 0

Does the process meet the

AIAG requirements?

Is the process cross-functional?

Does the process take the

cradle to grave approach?

Is there a tracking system

available to monitor the

stages of the process?






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If the deadlines are not beingmet are there recovery plans

or corrective action plans in

place?






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9. APQP/PPAP Output Continued

Is this a standard part of thebusiness or automotive

specific?

Who is the process owner?

Is the APQP process visible

on a set interval to senior

management?

Is there evidence of the

process deliverables

available to support the

execution of the APQP

process?10. Supply Management Is there a system in place to

select, develop, monitor and

improve the key production

supply base?

4.4 0

Does the supplier selection

process include

benchmarking or is it

exclusively system surveys.

Does the selection process

include a system forcorrective action in areas that

are not meeting

requirements?

Are these actions tracked

and implemented prior to

new business award?


place to track supplier

performance?






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10. Supply Management Continued

Are performanceexpectations communicated

and acted on?

Does the supplier do any

form of development and if

so is it formalized?

Has the supplier conducted

on-site workshops?


place for tracking a suppliers

status (Qualified SupplierList)

Is there a formal supplier

requirements manual.

Who is responsible for

supplier selection?

11. Process Control Is there evidence of process

monitoring?

4.4 0

Are operator instructions,

special characteristics

posted?

Is a process change systemwith a process change

procedure and tracking

available?

Is a 1st

piece set-up

procedure in effect?

Is the process control

element linked to initiatives

such as lean/six sigma?






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11. Process Control Continued

Are process controls derivedfrom the APQP process

(Process Flow, PFMEA,

Control Plan etc.)?

Are the appropriate

resources in place to execute

all process control

requirements?

Is evidence available to

confirm out of control

conditions are addressed

real time and that allpersonnel are capable of

shutting down out of control

processes?

Is there any evidence of real

time data collection systems

designed to present

immediate feedback to

operations with respect to

key process control

elements?

If these systems exist, arethey designed to

automatically control line flow

and process output?

Are control plan elements

studied for Gage repeatability

& reproducibility and are

special operations qualified

with masters or standards?






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12. Document Control Is there evidence of anengineering change control

system for internal & external

purposes?

4.4 0

Does the system include a

recall process for all obsolete

documentation?

Does the change process

include provisions to assure

that financial, regulatory,contractual & customer

requirements are addressed

at the appropriate levels?

Is the change process linked

to a database for

performance tracking

purposes and if so are there

performance measurables

associated with the system?

Total this section. 0

264Points Possible this section






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Delivery 1. Delivery Performance Is there a system to monitor

delivery for all elements of

the business (supplier,

customer)?

4.29 0

What is the delivery number

for incoming and outgoing?

Is 100% on-time delivery the

goal?

Is delivery part of the plant

core measurable system?Does the supplier have

access to the customer

reporting systems or reports?

Does delivery information get

reported back to the

management team?

Is production order driven?Does the supplier have

access to systems such as

EDI & ASN

acknowledgement?

Are actual numbers readily

available and to world class

criteria?






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2. Dock to Stock Does a formal Dock to stockor skip lot inspection program

exist?

4.29 0

Is criteria identified to

support the program?

How is product removed from

Dock To Stock?

Who is responsible for the

designation of DTS and is

the system electronic or

linked to the ERP system?

Is Dock to Stock percentagetracked?

Are other programs designed

at reducing non value added

activities being utilized in

place of DTS?

3. Premium Shipments Are premium shipments

tracked on both ends of the

business?

4.29 0

What percentage of

shipments is related to

premium deliveries (shouldbe below 5%)?

Who is responsible for

tracking, reporting and

correcting issues related t

premium shipments?






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4. Line Shutdowns Continued

Are line shutdowns related tocomponent parts or process

downtime?

Is there a visual inventory

system or Kan Ban system in

place to highlight potential

issues?

Does the organization have a

formal planning department

responsible for incoming

component and outgoing

components?Is end of line yields in line

with industry standards or

can they potentially impact

shipping schedules?

Has the supplier identified

qualified sources (land, sea

and air) to expedite freight

when necessary?

5. Production Systems Shipping capabilities and

understanding of common

systems (JIT, LevelScheduling, Kanban etc.)

4.29 0

Does the supplier ship daily,

weekly, monthly etc?

Is the production schedule

forecast driven?






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6. Electronic Planning &Scheduling

Is production building todemand using concepts such

as one-piece flow, Dock to

Dock time and optimum

inventory to meet the

schedule?

4.29 0

Does the supplier have a

computerized system for

executing the order

fulfillment process?

What system is used forproduction planning and

scheduling?

Is the system still supported

by the manufacturer or the

internal IT function?

Do scheduling capabilities

include current systems such

as EDI using ERP systems?

Are ASN’s used if not is the

system capable of generating

ASN’s?

7. Barcoding Does the supplier utilize Bar-

coding throughout the order

fulfillment process?

4.29 0

What type of equipment is

available?






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7. Barcoding Continued Are ample back-up units inplace and is technology

current?

Is there a system in place

and is it capable of verifying

content vs. label?

Are AIAG standard label

formats in use or available?

Is the barcode system

verified using the ERP

system to confirm the ordermatches the printed code?








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Capabilities 1. Computer Aided

Design

CAD systems available such

as: Pro-Engineering, Catia,

IDEAS, SDRC, Autocad

3.75 0

2. Electronic

Communication

Electronic Communication

available such as: FTP site, e

mail, high speed modem,

EDI, Internet access, Web

site, barcode, Y2K

compliance.

3.75 0

3. Analytical Capabilities

Laboratory/Analyticalservices available internally

or externally. Capable of

providing the necessary

scientific independent

evaluation required for the

specific industry. (egs.

include but are not limited to,

mold flow analysis, x-ray

technology, IR analysis,

material composition etc.)

3.75 0

4. Tooling/Fixturing/ Development

Capabilities

Capabilities such as: In-house prototyping, tool

design, tool machining, EDM,

tool maintenance programs,

rapid prototyping, soft

tooling, tooling with

automation, gauging etc.

3.75 0






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5. Material Experience /Intellectual Property

Materials used to support thecommodity being provided.

Does the supplying facility

have experience with many

different types of alternative

materials that have similar

properties and multiple

application opportunities.

Can the supplier

demonstrate a competency

in material experience that

may differentiate them andprovide competitive

advantage over the

competition. Has the supplier

developed a niche

application, material or

product that provides a

competitive advantage in the

supplying industry.

3.75 0

6. Cost Reduction Cost reduction programs

including full organizationalparticipation, management

driven, % of business goals,

measured and monitored for

performance.

3.75 0






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4. Strategic Alliances Continued

Can the supplierdemonstrate strategic

advantage do to material

volume agreements?

Can the supplier

demonstrate technical

advantages based on

strategic posturing with key

resources?

Can the supplier

demonstrate a strategic

advantage based onalliances and posturing with

key resources?

5. Cost Drivers Review of cost drivers vs.

cost structures, try to

determine reasonable level

of profit margin with respect

to Stoneridge cost structures.

0.34 0

Are cost models in line with

Stoneridge models? List cost

drivers.What are the marketing/sales

cost models for bid activity?

6. Capture Rate Is capture rate tracked? 0.34 0






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6. Capture Rate Continued

Review of competitivepricing, capture rate, lead

times, quote responsiveness

etc.








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Training 1. Training Schedule &

Planning

Is training part of the

business planning process?

0.4 0

Is there a formal training plan

in place for all personnel?

Does the organization

provide for internal training

as part of a compensation

program?Is a master training schedule

available for all disciplines?

Does the entire organization

have input in identify the

individual training needs?

How are the training needs

identified if not part of the

planning process?

How is training effectivenessevaluated?

2. Continuing Education Is tuition reimbursement

offered?

0.4 0






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2. Continuing Education Continued

Do training activities coincidewith specific industry

recognized programs such

as (Lean Manufacturing, Six

Sigma, GD&T, CAD/CAE

etc.)?

Are employees encouraged

to participate in training

programs internal &

external?

Are employees compensated

and promoted based onacquired knowledge?

3. Operator Training Is there a formal training

schedule for all operators?

0.4 0

Is training tied to

advancements in position

and or salary?

Is operator training geared

toward procedural issues on

day to day functions?

Are operators cross-trainedon multiple

product/processes?

Are records available as

evidence to support the

training activities?

Are new employees trained

prior to actual job

assignment?






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3. Operator Training Continued

Does training includeprovisions for systems,

safety and housekeeping

(5S)?

4. Cross Training Is there a formal cross

training program?

0.4 0

Are all operators part of the

cross training program?

Is cross training limited to the

operators?

How are non Englishspeaking people trained?

5. Customer Workshops Has the supplier benefited

from customer workshops or

specific customer driven

programs?

0.4 0

Is there evidence available to

support a good strong

supplier/customer

information sharing process?

Are certificates of completionor records of attendance

available to support

attendance at the

workshops?

6. Workshops Has the supplier held any

workshops on site with their

supply base to trickle down

the acquired knowledge?

0.4 0






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6. Workshops Continued Are certificates of completionor records of attendance

available to support

attendance at the

workshops?

Is course or topic material

available and are other

workshops planned?








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Facility 1. Facility Planning Is a facility layout available? 0.48 0

Does the layout include the

entire facility?

Is evidence available to

support the use of these

layouts for planning of new &

future business?

Do facility plans take into

account lean principles?

Are efforts made to minimize

wasted space & travel?

Is the facility well organized

and does material flow fluidly

throughout?

Does the facility show sign of

decay or neglect internally

and externally?

2. Facility Expansion The facility layout should

include provisions for growth

and should not be at or over

capacity.

0.48 0

Is the property owned or

leased?

Can the current site be

expanded without the need

to purchase properties from

abutting owners?

Has expansion been

considered and if so is a

suggested layout available?






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2. Facility Expansion Continued

Is the current property asingle site location?

3. Safety Environmental Look for any visible signs of

neglect and or safety related

issues that may jeopardize

worker/ building preservation

which could directly affect

material flow and operating

costs (workman’s comp, lost

days etc.)

0.48 0

Does the supplier haveprograms and policies

geared to an environmentally

friendly facility, modeled or

certified to ISO 14001.

Are lost work days tracked?

Does the facility handle any

materials that would be

considered hazardous?Are there provisions to

properly handle the

hazardous materials

internally and externally?

Is there an active safety

committee or program?

Who oversees the

committee?






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0

Supplier Commodity:

Supplier Contact:

0

0

Hi-Stat


4. Contingency Planning Contingency planning shouldbe included in the operating

systems and should include

provisions for key

equipment/resources

necessary to ensure

uninterrupted product flow in

cases where reasonable

emergency planning is

required.

0.48 0

Is a contingency planningprocedure available?

Does the plan cover items

such as utilities, labor & key

equipment?

5. Location Is the facility located in an

area that allows for easy

access to all modes of

transportation?

0.48 0

List the closest airports and

railway in terms of general

proximity to the facility.Is the facility located in a

community that enables the

organization to attract

employees with the

background & education

necessary to run the

business effectively?






Value

Scoring Tota

Scor


01/00/00

0Supplier Address:

Supplier Phone/Fax:

0

0

Supplier Commodity:

Supplier Contact:

0

0

Hi-Stat


5. Location Continued Are there any inherentdangers related to the

location of the site, either

environmental or climatic.


12

TOTAL 0

Points Possible this section





Weighting

Quality

Delivery

Capabilities

Commercial

Training

Facility

Scoring

1

2

3

4

5

Overall Rating

232 – Under (400

under 69% - under)

Systems not Evolved at this time

Extensive Development Required

233 – 347 (406 -

458 70% - 79%)

Systems are in Evolutionary Stages

Moderate to Extensive Development Required

“Potential” Future Business Candidate

348 – 464 (464 -

545 80%-94%)

System Evidence Apparent

Minor Development Required

“Acceptable” Business Candidate

There is enough evidence available to meet the minimum requirements.

This requirement is implemented and understood at some levels of the

organization, additional training and education would help to engrain this

This requirement is part of the organizational culture, this facility could train othe

on this requirement.

465 – 580 (551 -580 95%- 100%)

World Class SystemsBest in Class Practices

“Preferred” Business Candidate

25% of the total points possible are within the Delivery Category

25% of the total points possible are within the Capabilties Category

There is no evidence of this requirement at this time, corrective action is required

There is little evidence of this requirement, further documentation is required,corrective action is required.

2% of the total points possible are within the Commercial Category

2% of the total points possible are within the Training Category

2% of the total points possible are within the Facility Category

44% of the total points possible are within the Quality Category

0

0


01/00/00

0

Supplier Address:

Supplier Phone/Fax:

0

0

Supplier Commodity:

Supplier Contact:

Hi-Stat






0

0


01/00/00

0

Supplier Address:

Supplier Phone/Fax:

0

0

Supplier Commodity:

Supplier Contact:

Hi-Stat


“Not Viable” Business Candidate at this time




TITLE: PAGE OF

SEC. 16.0, PURCHASE ORDER TERMS, CONDITIONS ANDTOOLING NOTES 1 3



PurchasingAgent informs

suppliers ofterms and

conditions forpurchase order

Is the purchase ordera blanket order? YES

N O

Is the purchaseorder for tooling?

Note on the PO that the order qty.

is for reference only and thatobligation is limited to release qty.

YES

N O

Note on purchase order terms of toolingincluding: tool maintenance, PPAPsubmission, and tool identification.

No additionalnotes required onpurchase order.

ReleasePurchase Order

Purchase Order Terms& Conditions



TITLE: PAGE OF




PURPOSE: To inform Hi-Stat Suppliers of our Purchase Order terms and conditions and toolingnotes that may or may not appear in the body of a Purchase Order.

SCOPE: Use of this procedure applies to Suppliers of component parts, materials orprocesses to Hi-Stat.

DEFINITIONS: N/A

PROCEDURE:

RASI: Responsible: Purchasing AgentAccountable: Director Materials & Logistics ManagementSupport: Director of Operations & Order FulfillmentInform: Business Unit Manager

1. PURCHASE ORDER TERMS & CONDITIONS

The terms and conditions attached to this section obligates the Supplier whenaccepting the Purchase Order to agree to the terms stated. See succeeding pagesof this section.

1.1 Blanket Purchase Order Note

The total quantity stated on this Blanket Purchase Order is for referenceonly. The Buyer intends to purchase the quantity shown, but the Buyer’sobligation is limited to ONLY the quantity specified in each individualauthorized release.

1.2 Price Increase Justification

Any Supplier requesting a price increase must provide detailed, itemizeddata verifying the requested increase. Only material increases accompaniedwith the appropriate justification will be considered. Labor and overheadincreases are excluded from consideration since these areas should beoffset with productivity improvements.

All requested price increases by a Supplier must be submitted and approvedby the respective Hi-Stat Purchasing Agent sixty days prior to becomingeffective. Any price increases may warrant re-quoting of the affected part(s)with competitive sources.



TITLE: PAGE OF




2. TOOLING NOTES

Included in this section are examples of notes that may be printed in the body ofpurchase orders (when applicable) for production tooling, dies, and molds.

Notes:1. Any / all maintenance / replacement charge(s) for this tooling during the

life of this program is the complete responsibility of the supplier.

2. Please refer to the Supplier Quality Management Guidelines, Sec. 8.0,Supplier Production Part Approval Process (PPAP) for part submission.

3. Obtain the proper tooling identification number from the purchasing agentand stamp this number on the base of the subject die/mold.



L-PUR-F32

REV. A

ADDITIONAL TERMS AND CONDITIONS WHEN QUOTING OR

ACCEPTING A TOOLING PURCHASE ORDER FROM HI-STAT MFG.

1. To supply a complete set of drawings to Hi-Stat Mfg. which accurately convey the

details of the tool(s) built. Hi-Stat will not send the final payment until the drawingsare received.

2. Upon Production Part Approval (PPAP) and full payment of tooling, tool(s) becomesole property of Hi-Stat Mfg. and can be removed from the supplier at Hi-Stat’srequest.

3. The tool(s) are to be permanently marked “Property of Hi-Stat Mfg. Co.”followed with Hi-Stat’s part number and tool identification number.

4. Supplier agrees to use the tool(s) exclusively to produce parts for Hi-Stat Mfg. unless

given written authorization to indicate otherwise.

5. Supplier agrees to submit parts per Sec. 8.0, Production Part Approval Process (PPAP)of the Hi-Stat Supplier Quality Management Guidelines. (Note: If there are anyexceptions to Sec. 8.0, they must be documented on the PPAP.)

6. The supplier will provide material certifications as specified in the Hi-Stat SupplierQuality Management Guidelines, Sec. 10.0, Material Certification.

I have read the above statements and agree to comply with all of the listed terms andconditions.

Name of Company Authorized Signature Date

Hi-Stat PartNumber:

Request for Quotation Number:

Return completed form to:Hi-Stat Manufacturing CompanyLexington Division345 South Mill StreetLexington, OH 44904

Attn:



TITLE: PAGE OF

SEC. 17.0, REVISION HISTORY 1 1


L-PUR-25 G 05/09/06 STEVE FELLOWS CRAIG BENSON

REVISION HISTORY

REV. DATE CHANGE PREPARED REVIEWED ANDBY: APPROVED BY:

G 05/09/06 S. Fellows C. BensonRewrite section 7.0 to show new evaluation criteria, change section 14.0 from Dock to Stockto Dock to Point of Use.

F 03/24/06 S. Fellows C. BensonIn section 13.0 removed symbols and added symbol with Cpk level requirement. ChangedSupplier Development Engineer to Buyer/Supplier Quality Agent.

E 07/29/05 S. Fellows D. GeorgeChanged sort firm in section 11.0; updated title page and table of contents.

D 06/02/05 S. Fellows D. GeorgeRevised section 3 and 6 to reflect the assessment score as a percentage. Updated titlepage and table of contents.

C 03/31/05 S. Fellows D. GeorgeUpdated Title Page and Table of Contents to reflect changes within the manual. Sec. 3.0 – Added the process for certifying, developing and re-sourcing non-certified suppliers

(paragraphs 1.2 – 1.7); updated flowchart. Sec. 7.0 – Re-write of paragraphs 5.1 – 5.3.Sec. 11.0 – Re-write of paragraph 1.4.

Supplier Quality Practice

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