Supplier Handbook Issue 12 September 2011

Transcription

1 Supplier Handbook Issue 12 September 2011

2 Foreword to Issue 12 The Lotus Supplier Handbook Issue 12 was issued with revisions to the following sections: Foreword, page PPAP Requirements, page PPAP Level, page 13 It is the objective of Lotus to secure the highest quality, cost effective components and materials, consistently delivered on time. This objective can only be achieved by establishing long term, close working relationships with suppliers, who adopt the Lotus quality philosophy. The Handbook is issued to the current and potential suppliers of prototype, production and service parts for use on Lotus Products and Client Products built by Lotus. The purpose of the Handbook is to ensure that Tier 1 suppliers fully understand, and comply with, Lotus Product Quality requirements and our commitment to Total Quality management including continual improvement. It is the responsibility of Tier 1 suppliers to communicate the relevant details of this Handbook to their Tier 2 suppliers, and to ensure their compliance with its requirements. The Lotus Supplier Handbook Issue 12 supersedes Issue 11, effective 8 th September 2011 unless otherwise specified by Lotus. Page 1 of 34

3 Contents 2. PRODUCT CONTROL Key Characteristics (With Safety or Legal Considerations) Requirements Requirements Process Document and Data Control Document Control Document Changes Control of Records Document Retention Key Characteristic and Batch Control Requirements 8 3. APPROVAL REQUIREMENTS Supplier Responsibility Documentation Prototype / Pre-production Part Approval Production Part Approval (PPAP Submissions) Significant Production Run Initial Process Studies General Acceptance Criteria for Initial Study PPAP Requirements PPAP Level Retention/Submission Requirements Table Design Records of Saleable Product Engineering Change Documents, if any Customer Engineering approval, if required Design Failure Mode Effects Analysis (Design Responsible Suppliers) Process Flow Diagrams Process Failure Mode Effects Analysis Dimensional Results Material/Performance Test Results 17 Material Test Results 17 Performance Test Results Initial Process Study Measurement System Analysis Studies Qualified Laboratory Documentation Control Plan Part Submission Warrant (PSW) Appearance Approval Report, (AAR) if applicable Sample Product Master Sample Checking Aids Records of Compliance with Specific Lotus Cars Requirements Packaging Approval ELV/RRR Data Sheet Tooling Records Parts Approval Checklist Approval Status (PPAP Submissions) Full Approval Interim Approval Rejection Periodic Re-submission CHANGE REQUESTS Supplier Request for Process Change (SRPC) Completion Criteria 21 Page 2 of 34

4 st White Section nd White Section Grey Section Sign Off: rd White Section Supplier Request for Concession (SRC) Completion Criteria White Section Grey Section Sign Off NON-CONFORMING PRODUCT Supplier Corrective Action Request (SCAR) Concern Rating Completion Criteria White Section (page 1) Grey Section Returns Process for Supplied Product SCAR Concern Rating Reject/Returns Procedure Despatch/Collection Supplier Queries Debit Notes Disputed Returns/Debit Notes Replacement Product SUPPLIER ASSESSMENT New Supplier Evaluation Questionnaire Sourcing Audit Supplier Nomination Supplier Corrective Action Supplier Sourcing re-audit Key Characteristic (with Safety or Legal Consideration) / Parts and Process Audits Supplier Corrective Action Key Characteristic (with Safety or Legal Consideration) / Parts and Process re-audit Process Sign Off Audits (PSO) Supplier Feedback MATERIAL HANDLING REQUIREMENTS Lotus Logistics Vendor Packaging Method (LVPM) Packaging Allocation Repair and Maintenance Labelling Packaging Exchange GLOSSARY APPENDIX Page 3 of 34

5 1. Lotus Supplier Requirements The aim of Lotus Supplier Management Philosophy is to select suppliers who are registered to one of the following: ISO/TS16949:2009 ISO 9001:2008 Under certain circumstances and/or to achieve specific objectives this criteria may be waived if the product or process supplied is key to project requirements. This waiver shall only be granted with the agreement of the Lotus SQA Department and demonstration of adequate process control. Lotus operates Advanced Product Quality Planning (APQP) and Production Part Approval Process (PPAP) and expects the supplier to be conversant with both of these systems. Suppliers may be subject to audits at various stages of Project and Production programs. These audits are used to encourage a culture of continuous improvement within the supplier base. The following sections in this guide are requirements that suppliers shall follow when supplying Lotus or their Clients. Authority to deviate from these must be obtained in writing before supply of product. Page 4 of 34

6 2. Product Control 2.1 Key Characteristics (With Safety or Legal Considerations) Requirements Introduction Suppliers and their personnel must be aware of a component with safety or legal considerations and process they are using to manufacture. They must ensure the appropriate levels of control are applied Requirements The Key Characteristics (with safety or legal considerations) symbol shall be shown on the relevant Design Concept Sheet (DCS), Failure Mode & Effects Analysis (FMEA s), Control Plans and Drawings (where applicable). The details of Key Characteristics (with safety or legal considerations) shall be transferred onto all relevant documentation: Drawings Specifications Process Control Plan Process FMEA Material Certificate of Conformity Inspection Standard Work Instruction Training Matrix Test Equipment Total Preventative Maintenance (TPM) Plan Sub-supplier related documents Process Lotus requires suppliers of components with these key characteristics to demonstrate that they control all aspects of the manufacturing process. The following requirements shall be implemented: a) When assigning personnel to the production of a key characteristic component with safety or legal considerations the supplier shall: Ensure that all personnel involved in the manufacture and testing of these components are assigned employees who have completed designated training programmes and are able to demonstrate the required level of skill and knowledge Maintain training records for all employees responsible for performing Operations and Testing with these key characteristic considerations. b) All test equipment used to verify a component with safety or legal consideration shall be clearly identified with the Key Characteristics (with safety or legal considerations) symbol. c) All machines and test equipment used in the manufacture of the component shall receive special attention in the TPM/Maintenance schedule. Page 5 of 34

7 d) No alterations to the manufacturing process are permitted without written approval from Lotus or their Client(s). This approval shall be attained prior to shipment of new level parts as per procedure for process change (see section 4.1). e) The supplier shall implement a programme of internal documented audits. These shall verify that all process parameters are effectively controlled. Any follow up actions shall be monitored to confirm their effectiveness, and where necessary become formally adopted countermeasure(s). f) Where Key Characteristics (with safety or legal considerations) are subject to the controls of sub-supplier s processes, Lotus or their Clients requirements shall also be applied to the sub-supplier. g) The supplier shall be able to demonstrate assurance of all components considered with this key characteristic. Each characteristic must have a process capability (Cpk) > 1.67 or documented inspection and/or verification data. h) If any rework is required to return a component with a safety or legal consideration to specification, approval by the supplier s senior quality representative and relevant Lotus SQA Engineer shall be obtained prior to commencement of rework process. The process shall be documented and controlled. Indelible marking shall identify reworked parts (where practicable) and the characteristic(s) affected shall be 100% verified to the Process Control Plan. All records relating to the rework shall be retained for part identification. i) Key Characteristic (with safety or legal considerations) components shall have a batch control and/or traceability procedure (see section 2.3) to allow accurate batch traceability, this should include: Component/Batch identification Date, shift, process assembly and delivery Full traceability back to raw material Testing Identification 2.2 Document and Data Control Introduction Documents required by the quality management system shall be controlled in line with a recognised quality system e.g. ISO 9001:2008, ISO/TS16949:2009 and registered to an accredited certification body (see section 1) Document Control Documents and data may be in the form of hard copy, electronic or other media. A documented procedure shall be established to define the controls needed to: Approve documents prior to issue Review and update as necessary and re-approve documents Ensure that changes and the current revision status of documents are identified Ensure that relevant versions of applicable documents are available at points of use Ensure that documents of external origin are identified and their distribution controlled Page 6 of 34

8 Prevent the unintended use of obsolete documents and to suitably identify them if they are to be retained for any purpose Document Changes Changes to documents shall be reviewed and approved by the same functions or organisations that performed the original review and approval, unless specifically designated otherwise. The nature of the change shall be identified in the document or the appropriate attachments Control of Records Records shall be established and maintained to provide evidence of conformity to requirements and of the effective operation of the quality management system. Records shall remain legible, readily identifiable and retrievable. A documented procedure shall be established to define the controls needed for the identification, storage, protection, retrieval, retention time and disposition of records Document Retention The supplier shall retain documents for a period appropriate to the nature of content from the date of manufacture. Documents with a safety and/or legislative consideration shall be retained for a period of 15 years. All other documents shall be retained for a minimum of 12 months. Page 7 of 34

9 2.3 Key Characteristic and Batch Control Requirements Below are the definitions and symbols that are to be used to identify the characteristics on any Lotus drawing from this issue forward, along with batch control definitions. Key Characteristics are those defined by Lotus or their Client in addition to those selected by the supplier through knowledge of the product and process. The quantity of key characteristics and the batch control requirements will differ from one component to another. In some cases there will be no need to define key characteristics or batch control marking. Nomenclature Definition Symbol Non-Key Characteristic Standard A product characteristic for which reasonably anticipated variation is unlikely to cause non-conformity with government regulations, safety compliance or component fit & functions. None Key Characteristic (Not Relating to Safety or Legal Considerations) Fit / Function (TS16949 Special Characteristic) A product characteristic for which reasonably anticipated variation is likely to significantly affect customer satisfaction with a product (other than Safety / Regulatory compliance) such as its fit, function, mounting or appearance, or the ability to process or build the product. These identified characteristics must be included on the Control Plan. * See note Key Characteristic (With Regulatory Considerations) Regulatory Compliance (TS16949 Special Characteristic) A product characteristic for which reasonably anticipated variation could significantly affect the product / vehicle compliance with government regulations (such as occupant protection, flammability, braking, emissions, noise etc. These identified characteristics must be included on the Control Plan. * See note Key Characteristic (With Safety or Legal Considerations) Safety Compliance (TS16949 Special Characteristic) A product characteristic for which reasonably anticipated variation could significantly affect the product / vehicle safety with or without warning (such as steering, braking, etc.) These identified characteristics must be included on the Control Plan. * See note * Note: Customer specific symbols may be used for client projects. Definition of Batch Control: Batch Control Batch Control Batch Control is the means by which a component fitted to a vehicle or sub system production history can be traced, including date of manufacture, raw materials, and process controls. This should ideally take the form of a permanent mark on the component in an agreed area. The grade of the batch control will determine the level of part marking and traceability required. * See note Page 8 of 34

10 Definition of Batch Control cont d A Grade Batch Control Each individual component identified with a unique number that is traceable to its raw material and manufacturing processes etc. A grade batch control will be typically used for components that have been designated with key characteristics with safety considerations. EXAMPLE Wk No./ Year / Unique Serial No. 45 / 02 / 0001 B Grade Batch Control Part batch will be traceable to its raw material and manufacturing processes etc. to an agreed period of time, e.g. Month, week, day, or shift. Typically each individual part will be identified with the manufacturing period or a batch serial number which allows traceability to the date of manufacture. EXAMPLE Wk No. / Year 45 / 02 C Grade Batch Control Batch Size to be agreed between Supplier and Lotus. This will be used when it is not feasible or necessary to mark a component. Traceability to raw material and manufacturing processes etc. can be identified up to point of fit onto the vehicle or sub-system. Batch details will typically be marked on part packaging. In the event that the supplier has their own identification method, it may be used if it meets the batch control requirements laid out in this procedure and is agreed with the suppliers Lotus SQA contact. Page 9 of 34

11 3. Approval Requirements Introduction The requirements listed below form a basis for the Lotus part approval process. Where deemed necessary, the timing and the development of the Production Part Approval Process (PPAP) submission will be managed by the Lotus Advanced Product Quality Planning (APQP) system. Please refer to the Lotus APQP Status Reporting Guidelines (A3-A-6.48). Suppliers must adhere to the Lotus part approval process and quality documentation requirements for each stage of the project. It is the responsibility of the Supplier to ensure that all quality targets are met in line with the project timing requirements. Processes must be developed to meet ALL drawing tolerances and requirements. Any waiver or concession, if required, must be obtained before the supply of any documentation or product. It is the responsibility of the supplier to prepare the part approval submission for each part according to the standard and timing required by the Lotus SQA Engineer. The Supplier s Quality Manager (or senior quality representative) must approve all documents and records prior to submission. Documents must be legible and readily identifiable. Documents must be submitted in English unless the Lotus SQA Engineer authorises a concession. All documents must be dated and reference the relevant customer part number and engineering drawing change level. Documents cannot be accepted for review unless they are identified with the part number and engineering drawing change level. The Lotus part approval process defines generic standards for Prototype, Pre-production and Production part approval to ensure parts conform to design/drawing requirements prior to supply. The following sections provide guidelines to the part approval processes. 3.1 Supplier Responsibility It is the supplier s responsibility to submit approval paperwork with every change. The supplier shall complete the relevant sections of the documents as required in reference table These shall then be submitted to Lotus SQA department with sample part(s) clearly marked with sample part label and the Parts Approval Checksheet (see Appendix) as a front page with all relevant sections completed. 3.2 Documentation With the production component order Lotus Purchasing will request a PPAP submission and provide: 3 copies of the current released drawing Blank Sample Part Label(s) Page 10 of 34

12 3.3 Prototype / Pre-production Part Approval Prior to a full production part approval submission, a limited submission will be required for parts supplied for trial build purposes (i.e. EP builds). This allows Lotus to determine the pedigree of the components used for trial builds / testing. The following documentation shall be submitted: 1) Design Record of Product; 2) Design FMEA (where supplier has design responsibility); 3) Process Flow Diagrams; 4) Dimensional results; 5) Material, performance results; 6) Component testing standards (where applicable); 7) Component Test Results (where applicable); 8) Sample Product. See Section for submission requirements for each of the above elements. 3.4 Production Part Approval (PPAP Submissions) Introduction The supplier shall obtain full approval from the customer product approval activity for: Initial submission for production part(s); Routine Re-submissions; Engineering changes; Tooling: transfer, replacement or refurbishment or additional; Correction of discrepancy; Changes to optional construction or material; Sub-supplier or Material source change; Parts produced at additional location; Tool inactive > 1 year. Note: If there are any questions concerning the need for production part approval, contact the responsible Lotus SQA Engineer. This list is not exhaustive and all changes must be communicated to Lotus SQA. (See section 4.1) Any interim submissions must be clearly identified on the Part Submission Warrant (PSW) and Parts Approval Checklist with details in the explanation/comments section. Page 11 of 34

13 3.4.1 Significant Production Run The purpose of the production trial run is to ensure the effectiveness of the manufacturing process by running production products off production tools, materials, equipment, cycle times, and environments while using production operators, gauges, and other production methods. It is imperative that adequate quantities of parts to be manufactured during this run to sufficiently sample, test, and thoroughly try out the production process (at rate) prior to full production. It is also mandatory to ensure that sufficient quantities of parts are run for preliminary process capability studies and for validation testing. Since production trial runs for Lotus components are typically small, it is recommended that a maximum number of production parts be run during the trial run to ensure production has ample time to prove out the process, while yielding sufficient quantities of parts to perform process capability studies. It is recognised that sample sizes such as 30 pieces may be utilised for preliminary process capability studies. Sample sizes must be discussed and agreed to early in the APQP process. If projected volumes are so low that 30 samples are not attainable prior to production, interim PPAP approval may be granted. A dimensional report with 100% inspection on special characteristics is required during the interim period. Once the 30 production samples are produced, measured and the quality index calculated and accepted, then the interim approval will be changed to full approval Initial Process Studies General Due to the fact that small production trial runs are common with Lotus, the supplier shall use the guidelines described in below to maximise the number of parts run during the production trial run in order to have as many parts as possible available to inspect for capability studies. Lotus requires a minimum of 30 production pieces be studied for preliminary process capability. When Lotus specifies key characteristics and the estimated annual usage is less than 500 pieces, the supplier shall document their control plan that they will either: perform 100% inspection and record the results; OR conduct an initial process capability study with a minimum of 30 production pieces and maintain SPC control charts of the characteristics during production. For key characteristics that can be studied using variable data, the supplier shall utilise one of the following techniques to study the stability of the process: X-Bar and R Charts, n = 5, plot minimum 6 subgroups; OR Individual X Moving Range, plot minimum 30 data points. When performing the initial short term study, data shall be plotted from consecutive parts taken from the production trial run. These studies could be augmented or replaced by long term results from the same or similar process run on the same equipment with prior customer concurrence Acceptance Criteria for Initial Study For initial process capability studies using 30 to 300 parts, the supplier shall use the following as acceptance criteria for evaluating initial process study results for processes that appear stable. Page 12 of 34

14 For attribute features contact Lotus SQA for appropriate sample size and statistical method. The Process Potential (30 Piece P Where Lotus has an ongoing Minimum C pk pk Capability Study) Minimum Acceptance Capability Requirement of: Criteria is: Unstable processes Depending on the nature of the instability, an unstable process may not meet Lotus requirements. The supplier shall identify, evaluate and, wherever possible, eliminate special causes of variation prior to the PPAP submission. The supplier shall notify Lotus of any unstable processes that exist and shall submit a corrective action plan to Lotus prior to any submission PPAP Requirements The supplier shall meet all specified requirements. Any results that are outside specification are cause for the supplier not to submit the parts, documentation and/or records. Every effort shall be made to correct the process so that all design record requirements are met. If the supplier is unable to meet any of these requirements, Lotus SQA shall be contacted for determination of appropriate corrective action. The supplier shall have the applicable items and records (see Retention/Submission Requirements Table) for each part, or family of parts, regardless of the part submission level. These records shall be in a PPAP part file, or referenced in such file and be readily available. These items in the Retention/Submission Table shall be readily available for Lotus use in PPAP. All PPAP Submissions are to be sent in electronically to the relevant SQA Engineer. Tier 1 suppliers are responsible for obtaining PPAP submissions from their Tier 2 suppliers and including this information in their own PPAP submissions to Lotus. The supplier shall obtain prior approval from the Lotus SQA Engineer for exceptions or deviations to PPAP requirements. NOTE: All items or records may not necessarily apply to every Lotus part number from every supplier. For example, some parts do not have appearance requirements, and others do not have colour requirements. In order to determine with certainty which items must be included, consult the design record, e.g. part print, the relevant Engineering documents or specifications, and your responsible Lotus SQA Engineer PPAP Level PPAP submission levels will be defined as part of the Lotus APQP system. Unless otherwise advised by Lotus SQA, PPAP will default to level 3. See Retention/Submission Requirements Table overleaf for exact submission/retention requirements for each of the five submission levels. Any concerns with the supplier s ability to submit to the required level should be directed to the responsible Lotus SQA Engineer prior to submission. For all future models the following criteria will dictate the APQP/PPAP Level. Page 13 of 34

15 EXISTING SUPPLIER NEW SUPPLIER A B C A B C COMPLEX/ SAFETY CRITICAL A.P.Q.P.5 P.P.A.P.3 A.P.Q.P.5 P.P.A.P.5 A.P.Q.P.5 P.P.A.P.5 A.P.Q.P.5 P.P.A.P.3 A.P.Q.P.5 P.P.A.P.5 A.P.Q.P.5 P.P.A.P.5 NON COMPLEX/ NON SAFETY CRITICAL A.P.Q.P.1 P.P.A.P.3 A.P.Q.P.3 P.P.A.P.3 A.P.Q.P.5 P.P.A.P.3 A.P.Q.P.1 P.P.A.P.3 A.P.Q.P.3 P.P.A.P.3 A.P.Q.P.5 P.P.A.P.3 PROPRIETRY PART/OFF SHELF A.P.Q.P.1 P.P.A.P.1 A.P.Q.P.1 P.P.A.P.2 PPAP5 is phased PPAP see A3-A-6.06 Phased PPAP Process Page 14 of 34

16 3.4.5 Retention/Submission Requirements Table Submission Level Requirement Level 1 Level 2 Level 3 Level 4 Level 5 1 Design Records of Saleable Product R S S * R a) for proprietary components/details R R R * R b) for all other components/details R S S * R 2 Engineering Change Documents, if any R S S * R 3 Customer Engineering approval, if required R R S * R 4 Design FMEA R R S * R 5 Process Flow Diagrams R R S * R 6 Process FMEA R R S * R 7 Dimensional Results (ISIR) R S S * R 8 Material, Performance Test Results R S S * R 9 Initial Process Study R R S * R 10 Measurement System Analysis Studies R R S * R 11 Qualified Laboratory Documentation R S S * R 12 Control Plan R R S * R 13 Part Submission Warrant (PSW) S S S S R 14 Appearance Approval Report, (AAR) if applicable S S S * R 15 Sample Product R S S * R 16 Master Sample R R R * R 17 Checking Aids R R R * R Records of Compliance with Specific Lotus Cars 18 Requirements R R S * R 19 Rate study data R R S * R 20 Packaging Approval R R S * R 21 ELV Data Sheet S S S S R 22 Tooling Records S S S S R 23 Parts Approval Checklist S S S S R S = The supplier shall submit to designated Lotus Cars product approval activity and retain a copy of documentation items at appropriate locations, including manufacturing. R = The supplier shall retain at appropriate locations, including manufacturing, and make readily available to the Lotus Cars representative upon request. * = The supplier shall retain at appropriate locations, and submit to Lotus Cars upon request. Page 15 of 34

17 Design Records of Saleable Product The supplier shall have all design records for the saleable product, including design records for components or details of the saleable product. Where the design record, e.g. CAD /CAM maths data, part drawings, specifications, is in an electronic format, the supplier shall produce a hard copy (e.g. pictorial, geometric dimensioning & tolerancing (GD&T) sheets, drawing) to identify measurements taken. Note: For any saleable product, part or component, there will be only one design record, regardless of who has design responsibility. The design record may reference other documents making them part of the design record Engineering Change Documents, if any The supplier shall have any authorised engineering change documents not yet recorded in the design record but incorporated in the product, part or tooling Customer Engineering approval, if required Where specified by the design record, the supplier shall have evidence of customer engineering approval Design Failure Mode Effects Analysis (Design Responsible Suppliers) The supplier shall have a Design FMEA for parts or materials for which they are design responsible Process Flow Diagrams The supplier shall have a process flow diagram that clearly describes the complete production process steps and sequence, as appropriate and meets Lotus needs, requirements and expectations. Note: Generic process flow diagrams for families of similar parts are acceptable if the parts have been reviewed for commonality Process Failure Mode Effects Analysis The supplier shall have a Process FMEA for all any saleable product, part or component Dimensional Results The supplier shall indicate the date of the design record, change level, and any authorised engineering change document not yet incorporated in the design record to which the part was made. All measurement facilities must be contained within a controlled and traceable calibration system in-line with an internationally recognised standard. A full dimensional result report is required for one product sample that must include 100% of drawing dimensions and specifications. Additionally, each product supplied must have all key characteristics measured. A dimensional result report for sub component(s) must be provided when requested. The results must be recorded and submitted on the Lotus Part Approval Dimensional Report (see Appendix). Each individual part must be clearly identifiable so that relevant inspection reports cavities/material batch etc. can be traced. The method and position of marking must be Page 16 of 34

18 agreed with Lotus SQA. All results must be referenced against the drawing tolerance. Any deviations to the drawing specification should be highlighted on the inspection report. Key characteristics must be clearly identified as such on the dimensional report. Measurements must be made using equipment with suitable discrimination and sensitivity. The instrument discrimination must divide the tolerance (or process variation) into ten parts or more. Example: Specification of 10 +/- 0.5 must be measured using equipment with discrimination of a minimum of two decimal places. Specification of 10 +/ must be measured using equipment with discrimination of a minimum of three decimal places. All measuring equipment used must be calibrated. Gauges and test equipment used must be accurate, discriminate, repeatable and reproducible. Lotus SQA agreement is required to use gauges with a percentage gauge repeatability and reproducibility (% Gauge R&R) greater than 10%. Go/No Go information is not acceptable in lieu of measured dimensions. Any deviations to the above requirements must be agreed in writing with Lotus SQA prior to submission Material/Performance Test Results The supplier shall have records of material and/or performance test results for tests specified on the design record or Control Plan. These results must be recorded on the Lotus Part Approval Material/Performance Test Report (see Appendix). Material Test Results The supplier shall perform tests for all part(s) and product material(s) when chemical, physical, or metallurgical requirements are specified by the design record or Control Plan. All tests required by the design record and related specifications should be listed in a convenient format along with the actual results of each test. Also indicate any authorised engineering change documents that have not yet been incorporated in the design record. The material test results shall indicate the: design record change level of the parts tested, and the number, date, and change level of the specifications to which the part was tested; date on which the testing took place; material subcontractor s name and, when required by your customer, their supplier code number for the material from the customer-approved subcontractor list. For products with customer-developed material specifications and a customer-approved subcontractor list, the supplier shall procure materials and/or services (e.g. painting, plating, and heat-treating) from subcontractors on that list. Performance Test Results The supplier shall perform tests for all part(s) or product material(s) when performance or functional requirements are specified by the design record or Control Plan. Page 17 of 34

19 The test results shall indicate: the design record change level of the parts tested, the number, date, and change level of the specifications to which the part was tested; any authorised engineering change documents that have not yet been incorporated in the design record; the date on which the testing took place. NOTE: Results for all tests required by the design record or related specifications should be listed in an understandable format and include the quantity tested Initial Process Study The level of initial process capability or performance shall be determined to be acceptable prior to submission for all Key Characteristics designated by the customer or supplier. The purpose of this requirement is to determine if the production process is likely to produce product that will meet the customer s requirements. The initial process study is focused on variables not attributes data. Assembly errors, test failures, surface defects, are examples of count time data, which is important to understand, but is not covered in this initial study. To understand the performance of characteristics monitored by attribute data will require more data collected over time. For those characteristics to be studied using X-bar R charts, a short term study should ideally be based on a minimum of 25 sub groups containing at least 100 readings from consecutive parts of the significant production run. However due to the typically small batch sizes for Lotus product, alternative quantities and capability requirements can be applied as detailed in section Measurement System Analysis Studies The supplier shall have applicable Measurement System Analysis studies, e.g. Gauge R&R, bias, linearity, stability studies, for all equipment used for new or modified gauges, and test equipment Qualified Laboratory Documentation The supplier shall have the scope and documentation for all laboratories utilised for the saleable product Control Plan The supplier shall have a control plan that defines all controls used for process control. Note: Generic control plans for families of similar parts are acceptable if the parts have been reviewed for commonality Part Submission Warrant (PSW) Upon satisfactory completion of all required measurements and tests, the supplier shall record the required information on the Part Submission Warrant (PSW). The supplier shall ensure that the correct information is entered onto the PSW regarding the Note: DOES THIS PART CONTAIN ANY RESTRICTED OR REPORTABLE ITEMS. If the part/assembly contains any such substance, even if the amount is within the allowable limits identified within the European Directive, then the YES box on the PSW MUST be ticked. Page 18 of 34

20 A separate PSW shall be completed for each customer part number unless otherwise agreed with Lotus SQA. If production parts will be produced from more than one cavity, mould, tool, die, pattern, or production process, e.g. line or cell, the supplier shall complete a dimensional evaluation on one part from each. The specific cavities, moulds, line etc, shall then be identified in the Mould/Cavity/Production Process line on the PSW, or in a PSW attachment. The supplier shall verify that all of the measurements and test results show conformance with the Lotus requirements and that all required documentation is available (or, for level 2, 3, and 4, is included in the submission). A responsible supplier official shall approve the PSW and provide date, title, and telephone number. Note 1: One warrant per customer part number can be used to summarise many changes providing that the changes are adequately documented, and the submission is in compliance with Lotus program timing requirements. Note 2: PSW s may be submitted electronically where required (document must be signed) Appearance Approval Report, (AAR) if applicable A separate Appearance Approval Report (AAR) shall be completed for each part or series of parts for which a submission is required if the product / part has appearance requirements on the design record. Upon satisfactory completion of all required criteria, the supplier shall record the required information on the AAR. The completed AAR and representative production products/parts shall be submitted to the location by Lotus to receive disposition. AARs (complete with part disposition and Lotus signature) shall then accompany the PSW at the time of the final submission based upon the submission level requested. Note 1: The AAR typically applies only for parts with colour, grain, or surface appearance requirements Sample Product The supplier shall provide sample product (typically 1 part) as requested by Lotus and as defined by the submission request Master Sample The supplier shall retain a master sample for the same period as the production part approval records, or a) until a new master sample is produced for the same customer part number for customer approval, b) where a master sample is required by the design record, Control Plan or inspection criteria, as a reference or standard to be used. The master sample shall be identified as such, and shall show the Lotus approval date on the sample. The supplier shall retain the master sample for each position of a multi-cavity die, mould, tool or pattern, or production process unless otherwise specified by Lotus. Note 1: When part size, sheer volume of part, etc makes storage of a master sample difficult, the sample retention requirements may be modified or waived in writing by the responsible Lotus SQA Engineer. The purpose of the master sample is to assist in defining the production standard, especially where data is ambiguous or in insufficient detail to fully replicate the part to its original approval state. Page 19 of 34

21 Checking Aids If requested by Lotus the supplier shall submit with the PPAP submission any part specific assembly or component checking aids. The supplier shall certify that all aspects of the checking aid agree with part dimensional requirements. The supplier shall document all released engineering design changes that heave been incorporated in the checking aid at the time of submission. The supplier shall provide preventative maintenance of any checking aid for the life of the part. Note: Checking aids can include fixtures, gauges, models, and templates, specific to the product being submitted Records of Compliance with Specific Lotus Cars Requirements The supplier shall have records of compliance with all applicable customer specific requirements Packaging Approval The suplier shall submit a copy of the approved Lotus Vendor Packaging Method (LVPM) form where required by the submission level ELV/RRR Data Sheet The supplier shall submit a fully completed signed copy of the Lotus ELV/RRR Data Sheet where required by the submission level. This data sheet requires the supplier to self-certify a detailed breakdown of the material specifications and weights of all component parts Tooling Records The supplier shall submit the fully completed tooling record detailing information for all Lotus owned tooling used for the production of the products / parts. This consists of all documents within the Lotus Supplier Tooling Record (A4-A-6921) Parts Approval Checklist A Parts Approval Checklist shall be completed and submitted as a covering document for the PPAP submission. The checklist is used to show that the documentation submission requirements have been met and are provided for review. Any reasons for exceptions from the requirements should be detailed on the checklist. All exceptions should have been discussed prior to submission with the relevant Lotus SQA Engineer. 3.5 Approval Status (PPAP Submissions) Authorised personnel within Lotus shall evaluate the PPAP submission and either grant Full Approval, Interim Approval, or Reject accordingly Full Approval A signed copy of PSW along with the Dimensional / Material Results where applicable will be returned to the supplier. Parts can then be supplied in line with the customer requirements. On approval of the PPAP submission the final payment of any tooling / development monies can be made to the supplier Interim Approval Page 20 of 34

22 A signed copy of the PSW detailing that Interim Approval has been granted along with any other applicable documents will be returned to the supplier. The details of the deviations from the Lotus requirements will be included. Corrective actions and re-submission shall be required. Agreement on the batch quantity and or the duration of the Interim Approval must be agreed in writing by Lotus SQA along with the timing of the resubmission Rejection A signed copy of PSW along with the Dimensional / Material Results where applicable will be returned to the supplier. The details of the deviations from the Lotus requirements will be included. Corrective actions and re-submission will be required. Further parts cannot be supplied to Lotus without corrective action and resubmission. Any parts supplied with the rejected submission will be returned to the supplier. 3.6 Periodic Re-submission As part of our ongoing commitment to supplier quality improvement, Lotus SQA may request re-submissions periodically. The level of resubmission will be agreed with the Lotus SQA Engineer. 4. Change Requests 4.1 Supplier Request for Process Change (SRPC) Introduction The following section provides a guide for the completion of the Supplier Request for Process Change (SRPC) document. This is a formal request by an existing supplier for a proposed change to the manufacturing process, new or relocation of equipment, change of sub-supplier or supplied component or design changes (where supplier holds design responsibility) that may affect product quality or specification. The SRPC form is used to communicate the reason for and detail of the change Completion Criteria The document is divided into one grey and three white sections. The supplier shall complete the white sections; Lotus SQA shall complete the grey section. The supplier shall complete in full the first and second white sections prior to submission of the SRPC. The request shall be submitted at least twenty working days before the date of the proposed change st White Section Supplier Name: Supplier Address: Telephone Number: Address: Name by which the supplier is known to Lotus The address of the requesting supplier The contact telephone number of the person requesting the process change The address of the person requesting the process change Page 21 of 34

23 Purchase Order Number: Part Number: Part Description: Drawing No./ Issue Level: Affected Program: Full order number must be quoted on SRPC and delivery paperwork this will ensure parts are intercepted on arrival at Lotus The Lotus part number(s) to which the SRPC relates The description of the part(s) the concession relates to as detailed on Lotus drawing(s) The drawing number and issue level as detailed on the Lotus drawing(s) of the part(s) to which the SRPC relates The project(s) and/or model(s) to which the part(s) affected by the process change are fitted nd White Section Date of Proposed Change: Reason for Change: Explanation of Change: The date that the first product will be produced following the implementation of the proposed change Details the reason for the change, stating any benefit to Lotus Details the changes involved considering process, material, methods, personnel, location, equipment etc that are to be changed Timing Plan Details: Details timing of the change. A comprehensive timing plan shall be developed to show all aspects of the change to include stock build & PPAP Quality Assurance & Capacity Requirements: Details risk analysis and any contingency plans developed to ensure quality and delivery requirements are met throughout the change period Sign Off: Signature of a supplier representative responsible for the change including name, position and date of request Upon completion of white sections one and two the supplier shall send the request to the Lotus SQA department Grey Section Lotus SQA department shall review the SRPC. Approval to Proceed with Process Change: If the change is deemed unsatisfactory, the request shall be denied Not Approved. If the request is deemed to be beneficial, Lotus SQA shall complete the section detailing the submission requirement for documentation/samples prior to any change. Page 22 of 34

24 Other Requirements: Lotus SQA will detail any additional requirements that need to be conducted prior to shipment. This may include a requirement for Lotus SQA to conduct an audit at the supplier site to assess the change Sign Off: Signatures: Lotus SQA, Material Control, Purchasing and Engineering. Upon completion of the grey section the SRPC shall be returned to the supplier defining Lotus requirements rd White Section Notification of Completion: Upon completion of the change the supplier representative in charge shall complete the third white section. This shall include the date of the first shipment of product to Lotus or their client following the change to allow traceability. Upon completion of the third white section the supplier shall return the form to Lotus SQA department. 4.2 Supplier Request for Concession (SRC) Introduction The following section provides a guide for the completion of the Supplier Request for Concession (SRC) document. This is a formal request by an existing supplier for a proposed acceptance of a specified number of components that deviate outside the tolerances or specifications stated on the drawing, approved master sample or deviate from the approved manufacturing process. Any long-term or permanent deviation from the approved part or process should follow the standard Production Part Approval Process documented in section 3.5. The supplier shall complete in full the white sections prior to submission of the SRC. The request shall be submitted before any affected product is supplied Completion Criteria The document is divided into one white and one grey section. The supplier shall complete the white section; the grey section shall be completed by Lotus SQA White Section Part Number: Part Description: Drawing No./Issue Level: Quantity affected: The Lotus part number(s) to which the SRC relates The description of the part(s) the concession relates to as detailed on Lotus drawing(s). The drawing number and issue level as detailed on the Lotus drawing(s) of the part(s) to which the SRC relates Total number of parts included in the concession Page 23 of 34

25 Purchase Order Number: Supplier: Supplier Address: Fax & Telephone Numbers: Address: Details: Date: Full order number must be quoted on SRC and delivery paperwork this will ensure parts are intercepted on arrival at Lotus Name by which the supplier is known to Lotus The address of the requesting supplier. The fax & telephone numbers of the person requesting a concession The address of the person requesting a concession Full details including specification and deviations, include marked up drawings or sketch if appropriate Date delivery scheduled to arrive at Lotus (not despatch date) Grey Section The SRC shall be reviewed by Lotus SQA department. Non Approval to Proceed with Concession: If the change is deemed unsatisfactory, the request shall be denied Not Approved. Approval to Proceed with Concession: If the request is deemed to have no detrimental effect to product quality Lotus SQA shall complete the section detailing the submission requirement for documentation/samples prior to supply of affected product. Other Requirements: Lotus SQA will detail any additional requirements that need to be conducted prior to shipment. This may include a requirement for Lotus SQA to carry out a visit to the supplier site to assess the product Sign Off Signatures: Release Engineer, Manufacturing, Purchasing, Material Control and Lotus SQA. Upon completion of the grey section the SRC shall be returned to the supplier defining Lotus requirements. Page 24 of 34

26 5. Non-Conforming Product 5.1 Supplier Corrective Action Request (SCAR) Introduction The following section provides a guide to the completion of the Supplier Corrective Action Request (SCAR) document. The SCAR form is in a report format and should not limit the use of any other quality tools in concern investigation or resolution Concern Rating Each concern raised will be issued with a rating depending on the severity of the problem / criticality of the part. The following list, although not exhaustive, is a guide to severity ratings: A Rating: Safety related /Legislation compliance/re-issued. 10 points B Rating: General concerns not covered by A or C. 5 points C Rating: Containment required but no formal response required. 2 points W Rating: Warranty 5 points The points system above may be used in the calculation of monthly quality performance Completion Criteria The document is divided into grey and white sections. The white section shall be completed by Lotus SQA and the supplier shall complete the grey sections White Section (page 1) This shall be completed to detail concern / failure information in addition sketches and/or photographs will be included on page 3 of the document where possible to assist with understanding the failure mode Grey Section Containment Action: Define and implement containment actions to isolate defective or potentially defective non-conforming material until Corrective Action is implemented. The effectiveness of Containment Actions must be verified. Containment Actions should be listed in chronological order. Include a narrative of what took place, who took the action, when it occurred and how actions were coordinated with the customer where necessary. These actions collectively must completely isolate the concern from the customer, first at customer locations with continuing actions at the Supplier s manufacturing locations. Note: Interim Containment Actions may involve reworking parts. Reworking of material must be Page 25 of 34

27 documented, verified and approved by customer prior to any product being shipped. Define Root Cause: This shall include details of the established root cause of the failure mode, and shall outline the investigations undertaken to determine the root cause of the concern. In addition the reason for non-detection of the failure at inspection stage(s) should be detailed. By definition, root cause is the reason, which, if eliminated or corrected, would have prevented a problem from existing, or occurring. It is not a restatement of the most obvious symptom, but the result of a systematic analysis of the problem, leading to the principal cause. The use of a suitable problem solving technique should be used at this stage. Permanent Corrective Action: Details of the steps taken to ensure that the non conformance does not reoccur. These are details of actions taken to eliminate the cause(s) of a nonconformity. Details of the date of implementation shall be included. Permanent corrective action can not be implemented until the root cause has been determined and verified. Before implementing any actions, their effectiveness must be verified. Verified Chosen Corrective Action: Details of the verification of the permanent corrective actions shall be recorded. This verification should take place under controlled production conditions, and be based on statistically significant sample sizes. No permanent corrective action should be implemented without testing. Once the team determines the corrective actions, they must develop an implementation plan. As actions are implemented, they are recorded as verified. Note: Do not discontinue Containment Actions until the corrective action(s) are in place and verified. Actions to Prevent Reoccurrence: Completed By: Details of actions taken to determine, verify and implement preventive actions to prevent the systemic root cause from recurring. Typically actions can include - Modify the management systems, operating systems, practices and procedures as required to prevent recurrence of this and all similar problems Completed at a senior quality representative level noting position and date to confirm the supplier has completed sections with an implementation date entered. Page 26 of 34

28 Supporting Documents: Details of updates to management systems, operating systems, practices and procedures etc. Completed SCARS shall be returned by or Fax to: Fax: +44 (0) Containment action is required within 2 hours of notification and a formal response within 24 hours and before any further deliveries. A response for the root cause is required within a 14 day period. Failure to respond could result in future deliveries being rejected and any subsequent interruption to build being charged back to the supplier accordingly. On receipt of SCAR response, Lotus SQA personnel shall analyse the supplier response and either agree or reject the content. If rejected, the SCAR will be returned to the supplier for review stating reason for rejection. If the SCAR document has not been fully completed it will be rejected. An extension request may be granted but must be agreed in writing with the relevant SQA personnel. Note: A late SCAR response will result in an affected QCD or Supplier Feedback performance for the relevant month. Completed SCAR s may be subject to a formal SCAR confirmation audit by Lotus SQA personnel conducted at the supplier or sub-supplier s premises. 5.2 Returns Process for Supplied Product Introduction The reject/returns process provides a generic process for the return of defective parts to the supplier. The following section provides a guide for the method used to return concern parts and the documentation involved SCAR Concern Rating All reject notes should be treated as a C rated Supplier Corrective Action Report (SCAR see 7.1) although a higher-rated SCAR may be raised on some rejects Reject/Returns Procedure Once a reject note has been raised, details are ed to the supplier, who then has 10 working days to investigate the details of the rejection and to either accept or reject liability. During this time parts will be held in the RTV area for review by the supplier. Any queries regarding the rejection, including requests for further details etc. must be directed to the individual SQA Inspector who issued the notifying the supplier of the rejection. It is the responsibility of the supplier to provide conclusive evidence to support nonacceptance of a rejection. Once liability has been accepted the supplier shall notify the RTV Inspector on how to dispose of the parts in question. Page 27 of 34

29 The supplier can:- 1. Authorise Lotus to scrap the parts in question at the supplier s cost. 2. Authorise Lotus to ship the parts in question back to them, although this will incur the additional cost of carriage chargeable to the supplier see Despatch/Collection. 3. Alternatively the supplier can elect to collect the parts in question, at their own cost. Note: If the parts have not been collected within 1 week of notification of reject product, a nominal charge for storage will be applied. No response from the supplier within the 10 working day limit will be interpreted as acceptance of liability, and the parts in question will be scrapped at the supplier s cost. A standard charge of will be levied on the supplier for processing a Reject Note through the Lotus sytem Despatch/Collection The despatch procedure is to return parts on standard distribution routes, which may incur a small carriage charge. Alternatively, suppliers may collect or arrange their own transport; this is to be arranged in advance and confirmed in writing. Special cases, urgent returns and nonreturns/scrap on site must be agreed in writing prior to any action being taken. Storage: When the supplier is responsible for collection, a nominal charge per week may be added if the parts have not been collected within one week of notification of reject product Supplier Queries Any supplier query regarding reject notification is to be reported back to Lotus SQA Inspection within one working day of receipt of reject note, or fax document. This may include requests to scrap parts on site without returning parts, or request for a supplier visit to Lotus to view parts Debit Notes A debit note will be raised in line with the suppliers agreed payment terms. The Supplier will raise a credit note to the value of the debit and submit to Lotus Accounts Payable Department within one month of receipt. Any deviation from this process requires prior written agreement with the Lotus Accounts Payable Supervisor Disputed Returns/Debit Notes All disputed reject/debit notes must be put in writing to Lotus Accounts Payable Supervisor within 14 days from receipt of the debit note Replacement Product Any returned goods shall be accompanied by a new, numbered delivery note, order number and re-invoiced. No free of charge, re-worked or replacement goods shall be accepted. Failure to adhere to this procedure will result in non-payment. Page 28 of 34

30 6. Supplier Assessment Introduction The following is a guideline to the requirements for supplier evaluations including the use of the Lotus sourcing, safety critical/parts and process audits, process sign off audits and supplier feedback. 6.1 New Supplier Evaluation The purpose of this section is to establish: Clear guidelines for supplier evaluation and when the sourcing audit is used; Sourcing audit input to Supplier nomination; Supplier corrective actions following the sourcing audit; Re-Audit following corrective action Questionnaire The Lotus purchasing department will send all potential suppliers a Supplier Assessment Form (A4-A-6022) Sourcing Audit Dependent upon the answers given by the supplier in the Supplier Assessment Form and the parts to be sourced, a sourcing audit may be conducted. Lotus will contact the supplier to arrange a date for the audit Supplier Nomination The result of the sourcing audit will be considered during the supplier nomination process. This will also be used to determine whether the supplier is suitable to supply parts that are designated as having safety critical features Supplier Corrective Action When a supplier is nominated, an action plan will be requested from the supplier for any elements of the sourcing audit the Lotus SQA Engineer identifies as non-conformances. The supplier shall issue a corrective action plan to the Lotus SQA Engineer within 14 days of notification, stating clearly the corrective actions to be taken and indicate the planned implementation date of each corrective action. The supplier shall, at regular intervals and planned implementation dates, update the Lotus SQA Engineer with corrective action progress. The supplier shall notify the Lotus SQA Engineer when all corrective actions have been implemented Supplier Sourcing re-audit The Lotus SQA Engineer may decide to re-audit the supplier s manufacturing facility once the corrective action implementation is complete or may decide to review corrective actions during subsequent parts and process or safety critical audits. Page 29 of 34

31 6.2 Key Characteristic (with Safety or Legal Consideration) / Parts and Process Audits The Lotus SQA department will carry out safety critical/parts and process audits at intervals deemed necessary by Lotus SQA management at suppliers manufacturing facilities. It may be necessary to increase frequency of audits depending on supplier performance Supplier Corrective Action Following the safety critical/parts and process audit, the supplier will be issued with an audit report. Where non-conformance(s) are identified the supplier shall develop a corrective action plan and submit to the Lotus SQA Engineer within 14 days of the audit. The supplier shall give regular updates on corrective action implementation and inform the Lotus SQA Engineer when all corrective actions have been implemented Key Characteristic (with Safety or Legal Consideration) / Parts and Process re-audit The Lotus SQA Engineer may decide to re-audit the supplier once all corrective actions have been implemented, or may at the engineers discretion, re-assess the non conformance(s) at the next scheduled audit. 6.3 Process Sign Off Audits (PSO) During new product introduction or modification, the Lotus SQA Engineer may decide to carry out a PSO audit (A4-A-6592). This audit covers both documentation and process implementation and will be carried out at a suitable point in the launch ramp plan. PSO re-audit The Lotus SQA Engineer may decide to re-audit the supplier once all corrective actions have been implemented, or may at the engineer s discretion, re-assess the non-conformances at the next scheduled audit. 6.4 Supplier Feedback Strategically important suppliers may be issued with feedback on their quality performance on a monthly basis. This will be in the form of parts per million rejects (PPM) and any other information that Lotus deems necessary. Rejected parts reworked by the supplier at Lotus, and incorrectly labelled parts will be included in the PPM figure. The supplier shall use the feedback data to develop improvement plans and activities to reduce their rejection rate (PPM). Lotus Supply Chain Management will set a maximum PPM rejection target for the supply base. Suppliers who do not meet the PPM target and who fail to improve their quality performance may be requested to attend supplier improvement meetings at Lotus. Note: Quality performance will be taken into account when sourcing decisions are made for new projects, re-sourcing and supplier rationalisation activities. Page 30 of 34

32 7. Material Handling Requirements Introduction As part of the preparation for new parts introduction, Lotus s policy is to minimise handling effort and improve efficiency of parts feed to the assembly lines. In order to achieve this, all packaging and transportation methods must be agreed with Group Lotus Logistics department before supply commences. It is essential that sufficient attention be paid to establishing acceptable solutions as early as possible in the production preparation process. As a policy, Group Lotus advocates the use of returnable containers (where efficient) for the delivery of production parts. For trial production evaluation, Group Lotus plans to utilise at least one of each of the start of production (SOP) component packaging solutions. Subsequent production trials to be fully supported with the planned/agreed SOP style packaging. All relevant paperwork should accompany all trial parts and packaging should be labelled as per Vendor Packaging Method (VPM) specification. Listed below are some of the key elements within production preparation management relating to material handling, which should be considered at the outset of any project. 7.1 Lotus Logistics Vendor Packaging Method (LVPM) The VPM (A4-A-6211) is used by Lotus to define and agree packaging method to be used by each supplier for each component. This is used to maintain and improve material handling efficiency by ensuring that all components delivered through the Milk Run and kanban process reach the production line/storage areas in an as despatched condition. A VPM document must be raised and submitted to the business by the Logistics function. This document should be raised allowing adequate time for prototype and production packaging sign-off and manufacture to achieve SOP packaging for VP production. A VPM submission may be required for a carry over component part if that new part has a cross-model application. Different points of fit may dictate different packaging solution. 7.2 Packaging Allocation Packaging allocation for each part number will be determined by Group Lotus Logistics only, through calculations relating to Standard Number of Parts (SNP) and delivery frequency. Suppliers must review their own internal supply chain requirements and determine if any additional packaging is required to support their own internal requirements: e.g. batch builds, sub-contract relationships, external storage locations or extended production cycles. Packaging over and above the Group Lotus Logistics supplier cycle requirements will be 100% funded by the supplier. Additional packaging will remain supplier owned. 7.3 Repair and Maintenance Repair and maintenance of Group Lotus Supplier cycle packaging will be periodically reviewed. Replacement and repair decisions will be made by Group Lotus only. Suppliers must be able to support production requirements through an agreed contingency packaging Page 31 of 34

33 solution during any periods when containers are removed from the supply chain. The cost of the contingency packaging will only be supported by Group Lotus whilst containers are removed from the supply chain. The supplier must make Group Lotus Logistics aware of packaging received in a damaged state immediately and await a decision regarding future shipments from Lotus Logistics. 7.4 Labelling It is Group Lotus responsibility to ensure that each container is labelled and maintained in line with LVPM. Suppliers must guarantee that part recognition is mistake-proof to ensure correct parts are placed in the correct kanban container prior to shipment. Due to the low levels of stock held at Group Lotus, parts placed in the incorrect container could have a significant impact on production. All pre-production shipments of stillages must be accompanied by clear identification that the stillage is not for production use. The attached label (see Prototype Part Approval Process Submission Label in appendix) is to be used unless a specific label is supplied with the purchase order. 7.5 Packaging Exchange It is the supplier s responsibility to ensure they have the systems in place to monitor packaging exchanges/collections. This is essential in supporting the Group Lotus supply chain: Avoid packaging and in turn parts shortages Identify responsibility for loss Monitor the location for packaging Highlight inadequacies in logistics solution The supplier must be able to track packaging. Audits will be carried out at Group Lotus defined intervals. Page 32 of 34

34 8. GLOSSARY APQP Cpk DCS DFMEA ELV IR LVPM PFMEA PPAP Ppk PPM PSO PSW R&R SCAR SNP SOP SQA SRC SRPC TPM UKAS Advanced Product Quality Planning Capability Indices Design Concept Sheets Design Failure Mode and Effects Analysis End-of-Life Vehicles Inspection Report Lotus Vendor Packaging Method Process Failure Mode and Effects Analysis Production Part Approval Process Capability Indices Parts Per Million Process Sign Off Part Submission Warrant Repeatability and Reproducibility Supplier Corrective Action Request Standard Number of Parts Start Of Production Supplier Quality Assurance Supplier Request Concession Supplier Request for Process Change Total Preventative Maintenance United Kingdom Accreditation Service Page 33 of 34

35 Appendix See following documents: A3-A-6.06 Phases PPAP Process A3-A-6.48 APQP Status Reporting Guidelines A4-A-6394 Part Approval Check Sheet A4-A-6391 Part Approval Dimensional Results A4-A-6393 Part Approval Material and Performance Test Results Page 34 of 34