NEW BUSINESS HOLD. (Ex-standard FGA 07172)

Transcription

1 Date: 12/15/2014 PROCEDURE N 16 (rev. 6) Page 1 of 13 TITLE CSL TPSL (Ex-standard FGA 07172) UPDATES Rev Effective from Description of changes Amended pages 1 12/09/2008 First release All 2 03/04/2010 Modified approval responsibilities 1, 3, 8, 11, 12, /13/2012 Modified par. 1 and 2; all annexes updated All 4 03/19/2014 Inserted new chapter about TPSL; modified par. 6.2 & , /01/2014 Procedure update due to CNHi demerging All 6 12/15/2014 Procedure update: FGC replaced with FCA All DRAWN UP CHECKED BY OWNED BY Marco BOVO Giovanni M. DE SANTIS Vittorio RUGGIERI Melchiorre SALVO Business Process Business Process Supplier Quality APPROVALS This document consists of 13 pages If printed, the copy should be considered to be uncontrolled, so it is necessary to check for updates on the FGP Intranet site, Procedures section.

2 Date: 12/15/2014 PROCEDURE N 16 (rev. 6) Page 2 of 13 SUMMARY 1 PURPOSE AND FIELD OF APPLICATION CONTENT OF CSL S CSL STEPS Initial assessment Process start Actuation of CSL Actuation of CSL2/CSL Conclusion OPENING, MANAGEMENT AND CLOSING PROCEDURE OF CSL AT A POLE ON BEHALF OF ANOTHER POLE TOP PROBLEM SUPPLIER LOCATION LIST TPSL Operation of the TPSL NBH Assessment on the start of an NBH NBH opening NBH closing LIST OF ANNEXES 1 CSL1, CSL2, CSL3 Opening 2 NBH Opening 3 CSL1, CSL2, CSL3, NBH Closing request 4 Statement of Commitment CSL 2 form 5 Statement of Commitment CSL 3 form C1 CSL Instruction sheet C2 CSL Report sheet 6 CSL1, CSL2 and CSL3 Correct application check list 7 Business Case Quad Report 8 TPSL Opening 9 TPSL Closing

3 Date: 12/15/2014 PROCEDURE N 16 (rev. 6) Page 3 of 13 MARKS, ABBREVIATIONS AND SYMBOLS UTILIZED IN THE TEXT CSL Controlled Shipping Level FGP Fiat Group Purchasing ICP Initial Customer Perception NBH New Business Hold SQ Supplier Quality of Fiat Purchasing SQE Supplier Quality Engineer SQ CMS Supplier Quality Sector Commodity Manager SQ TL Supplier Quality Team Leader TOC Customer-oriented tests PA Process Audit PDR Production Demonstration Run FRV Forever Requirement Violation TPSL Top Problem Supplier Location List REFERENCED DOCUMENTS FGA Product Quality and Conformity Certificate (C.Q.C.) FGA Product Data Sheet (S.I.P.) FGA Quality monitoring of direct materials supplies at production factories and spare parts warehouses

4 Date: 12/15/2014 PROCEDURE N 16 (rev. 6) Page 4 of 13 1 PURPOSE AND FIELD OF APPLICATION This Standard - that cancels and replaces the preceding standard FGA 07172, has a twofold purpose: providing the Customer Plant with a supply complying with what agreed upon; Supporting the Supplier in the solution of the quality problems that caused a nonconforming supply. These targets are achieved applying the Restraint Processes called CSL (Controlled Shipping Levels) that are articulated in three different levels: CSL1, CSL2, Enhanced CSL2 (CSL3). These levels differentiate according to the gravity and repetitions of non-conformities detected in the supplies. According to what stated in this Procedure, the occurrences of CSL2/CSL3 require the Supplier to appoint a qualified third-party Certifying Body (Approved Company). This Body shall be included in a list provided by the Supplier and validated by Fiat Purchasing. In particular, in this Procedure: CSL3 is utilized as synonym of Enhanced CSL2; Generally, use is made of term CSL when referring to properties common to the three levels, excepted when the specific aspect of the single level are specified: CSL1, CSL2 or CSL3; Approved Companies, are those companies selected by FGP to carry out CSL2/3 and NBH activities; these Companies obtained the accreditation for the activity of control for Controlled Shipping Level 2 / 3 and NBH, as specified in the specific "Frame Agreement. Geographical Area where applied: worldwide Company Area where applied: All the Companies, in the name and behalf of which FGP acts as purchasing agent of direct materials. 2 CONTENT OF CSL S The CSL s bind the Supplier to deliver the Product Quality and Conformity Certificate, completed with the indications of the characteristics on which non-conformities have been detected (CQC: see Proc. Spec ), and flagged the CQC cause: CSL1 / CSL2 / CSL3, the on all the lots that include drawing numbers or Family Sectors to which the CSL applies. Please note that the CSL s are to be extended to all the parts that make use of the same processes / work stations on which the non-conformity originated. For the whole duration of the CSL, the self-certification status is lost and therefore the AQP mark, when foreseen, is cancelled from the Product Data Sheet (see Proc. Spec ).

5 Date: 12/15/2014 PROCEDURE N 16 (rev. 6) Page 5 of 13 During the period in which the CSL is applied and as concerns the properties submitted to the restraint, the Supplier must carry out an additional 100% check on the manufactured parts, making use of additional and specially-intended control stations and with appropriately trained personnel. In case 100% checks cannot be carried out (e.g.: destructive tests or checks requiring much time), a reinforced frequency for these checks must be agreed upon with the concerned SQE. Supplier shall certificate the controls by means of appropriate identification markings, those markings ( Paint points, sticks..) shall be positioned in the single components and in the packaging (To the plant quality attention..). The form in the Annex 6 shall be used to verbalize the identification modalities agreed. The Customer plant can control the Supplier s shipments, with the appropriate sampling rate and size, and also check the congruence between the shipments and the annex documentation (C.Q.C). The absence of non conformities will be a necessary condition to close the CSL. If plant quality notices non conformities or the documentation isn t congruent with the shipments delivered, Supplier Quality shall be immediately informed for a fast action toward the supplier. ( 3.3) Additional measures are foreseen in case of CSL2 and CSL3. In case of CSL2 the Supplier must appoint a qualified third-party Certifying Body that must carry out the 100% checks on the lots to be delivered to the Customer Plant. In this case the Supplier must provide the Approved Company with an area on which the latter will carry out the additional checks on 100% of parts. In case of CSL3, after confirming the systematic inadequacy of the production and/or control system and the subsequent incompetence of the Supplier at solving the original causes of nonconformities charged to him, the Supplier must appoint a qualified third-party Certifying Body, which, besides all the activities required in a CSL2, will provide the necessary support for a guided development of the process and of the Control Plan of the Supplier and, therefore, he will help the Supplier in eliminating the original causes that generated the detected nonconformities. For the entry to CSL2/CSL3 status, considering the obligation of the Supplier to appoint a qualified third-party Certifying Body temporarily, the same Supplier must accept the activity formally by signing an Statement of Commitment for CSL form (annex 4 for CSL2 and Annex 5 for CSL3) to the supply contract. Missing this sharing, the CSL2/CSL3 cannot take place. The supplier must anyway be informed of the most serious consequences that will occur in case he refuses to accept the CSL. NOTE: Please note that, in case of CSL2/CSL3, the supplier shall make a 100% control before to deliver the material in the Approved Company area, in the interest of both Supplier and FGA. In fact, from the moment at which the material is inside the area delimited by the Approved Company, it is no more available for the Supplier and, should any non-conformity be detected on the properties concerned in the CSL, these non-conformities cannot be recovered and must be stated by the Approved Company in his report, in this way extending the period of application of the measure, at the discretion of SQE (see 3.3). This obligation is clearly indicated on the CSL1_CSL2_CSL3 opening (Annex 1). Against the Supplier, the coming in force of a CSL will involve the issue, on the SQP information system, of a Bill of Item 08, Weight 70 on the Supplier s Code / Family Sector involved in the measure; this Bill will be reiterated every month for the whole duration of the CSL (see Procedure 08018). As concerns

6 Date: 12/15/2014 PROCEDURE N 16 (rev. 6) Page 6 of 13 problems affecting different parts belonging to the same Family Sector, the Bill of Item 08, Weight 70 will be unique, as well as in case more Customer Factories are involved in a single critical aspect. In case the detected non-conformities can be charged objectively to the second-level Supplier, the firstlevel Supplier is responsible for applying and controlling the restraint actions at the production site of the second-level Supplier. 3 CSL STEPS The CSL process can be subdivided into a few time steps: initial assessment; process start; conclusion. 3.1 Initial assessment The SQE analyzes the non-conformity notices coming from the Plant Factory or Sales Network as concerns the products that showed quality problems that can be charged to the Supplier; then the SQE explains the occurrence to the person in charge. The non-conformities that can originate a CSL can be indicatively the following ones, without being limited to them: Supply quality problems detected in the Customer Plant; Supply quality problems detected in the Sales Network; Serious lacks that can affect the product quality level, detected by SQE at the Supplier s production site; Unsatisfying values of ICP, TOC, Yard Holds, that can be ascribed to non-conformity of supplies. The FGP Management assigns the level to the CSL taking the following criteria in consideration: The evidence of one or more product key properties out of tolerance, that can be ascribed to the Supplier s process out of capability, involves the immediate opening of a CSL1 in order to protect the Customer Plant. The detection, at the Customer Plant, of non-conformities on a characteristic already in CSL1 status generates the opening of a CSL2/CSL3, according to the seriousness, for the concerned properties. In the event of a proved non-compliance of procedures concerning quality and/or of the Control Plans on key properties of the Supplier s production process, a CSL2 or CSL3 is assigned, according to the seriousness. In case the Supplier is not able to solve the causes that generated the non-conformities, a CSL3 is applied. Variance renewals, repeated due to causes that can be ascribed to the Supplier, lead to the opening of a CSL whose level shall match the seriousness of the problem.

7 Date: 12/15/2014 PROCEDURE N 16 (rev. 6) Page 7 of Process start The actuation of the CSLs is different according to the level of the CSL that is to be opened. The CSL shall be opened for one or more Family Sectors and for a supply code Actuation of CSL1 SQE sends to the Supplier: the CSL1, CSL2, CSL3 opening form (Annex 1), signed alternatively by SQE or SQ TL. This form shall be sent also to Business Process (SQ), that records the CSL opening in SQP, and to all the addresses indicated at the foot of the form, among which the plant supplies Audit quality, that is warned about the start of the CSL. The CSL1/CSL2/CSL3/NBH closing request form (Annex 3). The Supplier contacts/meets SQE in order to define what follow: Individuation of the corrective measures aimed at avoiding that the problem can occur again or at preventing the occurrence of the non-conformity in an absolute way; Possible revision of the production/logistic flow-chart of the Supplier; Definition of the details of the restraint action actuation modalities (by filling in and sharing a check instruction sheet, as shown in Annex C1); Definition of the criteria to be followed to close the restraint action; Definition of the acceptability criteria and validation of control stations (see check list in Annex 6); Definition of what information shall be distributed and by what forms. Information must include at least the three following indications: corrective measures, results of their application (e.g.: Problem Solving form - Proc ) and result of checks (e.g.: form in Annex C2) Definition of the person, representing the Supplier, in charge of distributing the information. CSL1 is considered to be in force since the date on which the communication has been sent Actuation of CSL2/CSL3 SQE sends to the Supplier: The CSL1/CSL2/CSL3 opening form (Annex 1) signed, alternatively, by SQ CMS, and by the Purchasing Commodity Manager. This form shall be sent, in addition to all the addresses indicated at the foot of the form, also to Business Process (SQ), that files it, to record the CSL opening in SQP. The list of the Approved Companies acknowledged by FGP; The measure closing request form (Annex 3).

8 Date: 12/15/2014 PROCEDURE N 16 (rev. 6) Page 8 of 13 The Supplier must inform his Quality System Certifying Body of the application of the CSL2/CSL3, within 5 working days from the reception of the measure start communication. This information must be sent in copy also to his own SQE of reference. The Supplier must communicate to Supplier Quality the name of the chosen Service Provider, within and not after 24 hours from the reception of the CSL1, CSL2, CSL3 opening form (Annex 1); moreover, within 5 calendar days, he must propose date, place and time for the execution of the kick-off meeting which will define the details of the control process and will start the activity. This meeting shall be attended by: Supplier, representatives of Supplier Quality, qualified thirdparty Certifying Body and, if necessary, representative of the Customer Plant, besides any other person whose presence is considered to be absolutely necessary for a correct definition of the restraint activities that will be defined and implemented. As an indication and in addition to the ones already indicated as regards CSL1 (see 3.2.1) the following matters will be discussed in the kick-off meeting: Description of anomalies that caused the CSL; Definition of tasks and responsibilities of all the involved parties; Filling-in Statement of Commitment CSL form (Annex 4 for CSL2 and Annex 5 for CSL3), signed by Supplier and SQE. As far as concerns CSL2 and CSL3, information shall be sent and managed toward SQ by the Service Provider appointed to carry out the activity. This module (Annex 3) shall be sent also to Business Process (S.Q. Purchasing Dept.) that records the CSL2/CSL3 opening in SQP, and to all the addresses indicated at the foot of the form. CSL2/CSL3 are considered to be in force since the date on which the Statement of Commitment form as been signed. This form has the same distribution list than the CSL1, CSL2, CSL3 opening form (Annex 1) and must be sent, among the others, to Plant Supplies Audit Quality, who is worned about the start of the provision. 3.3 Conclusion A CSL has a minimum duration of 5 weeks. This period of time can be modified by Supplier Quality according to the seriousness of the reasons that led to the application of the measure and to the effectiveness of the corrective actions put into effect by the Supplier. The CSL can be concluded only if the Supplier proves that, in this period, his production process has been restored to conformity, that is, it being understood that the responsibilities for closing a CSL is up to Supplier Quality, when the following criteria are met: Written confirmation by Customer Plant Quality of the results obtained by parts in CSL: in particular the Customer Plant must have no rejects among the checked components. If this written confirmation does not arrive within 10 working days from the transmission of the closing request by SQE, it will be considered as implicitly accepted; According to frequencies and agreed distribution list, the Supplier (CSL1) or Approved Company (CSL2 /CSL3) must send the results of the checks (see Annex C2);

9 Date: 12/15/2014 PROCEDURE N 16 (rev. 6) Page 9 of 13 Before the date on which the revision of the results of the restraint actions in force shall be carried out, SQE will carry out a Process Audit (PCPA) and, then, will check the implementation of the corrective measures communicated by the Supplier. The result of this PCPA must be positive ( 3). Compliance to the output criteria agreed upon in the kick-off meeting. In case during the CSL period customer plant receives components with non conformity in the characteristics under CSL control, or, non conformity keep on being noticed by the CSL controls, SQE will extend at his own discretion the CSL period. If, new non conformities, different from the nonconformities already under CSL, will be noticed during the CSL period, it is possible to add these non conformity to the same CSL already active, modifying the CSL s controls and duration. In case the revision PCPA has a negative result, the following indications can be taken in consideration: in case of first negative revision: further extension of the CSL for a period of time to be defined; In case of second negative revision, in a CSL1: passage to the CSL2 status; In case of second negative revision, in a CSL2: passage to the CSL3 status; In case of second negative revision, in a CSL3: inclusion of the Supplier in NBH (New Business Hold) see 8. Finally, if the Supplier proves to have carried out what agreed upon during the kick-off meeting, he shall send the CSL1/CSL2/CSL3/NBH closing request (Annex 3), submitting it to the approval of FIAT Purchasing. This form shall be approved by: SQE (or alternatively by SQ TL), if concerning the closing of a CSL1; SQE (or alternatively by SQ TL) and SQ CMS, if concerning the closing of a CSL2/CSL3. The approved closing request form (Annex 3) shall be sent also to Business Process (SQ), that records the opening of CSL2/CSL3 in SQP, and to all the addresses indicated at the foot of the form, among which, to Plant Supplies Audit Quality, who is worned about the end of the CSL. Business Process (S.Q.) shall update the SQP database, recording the measure closing, thus interrupting the monthly issue of the Bills of Item 08, Weight 70 against the Supplier 4 OPENING, MANAGEMENT AND CLOSING PROCEDURE OF CSL AT A POLE ON BEHALF OF ANOTHER POLE The Supplier Quality of every Pole is responsible for the opening, management, recording in SQP and closing of the CSL, according to this Procedure, for the supplied parts of direct management/competence.

10 Date: 12/15/2014 PROCEDURE N 16 (rev. 6) Page 10 of 13 To carry out the kick-off activities and Process Audit, every Pole can make use of the support of the Supplier Quality of the Pole to which the Supplier belongs. The results of these activities will be transmitted by the Supplier Quality of the Pole to which the Supplier belongs, to the competent Pole. 5 TOP PROBLEM SUPPLIER LOCATION LIST TPSL The TPSL is a measure of containment that has to be applied to suppliers generally defined as "Global" with one or more "Poor Performing Supplier Locations" or to suppliers with one or more units creating quality problems not properly addressed. With this kind of suppliers is possible to escalate until startup a NBH. The NBH has to be handled as usual (as expected and described in Chapter NBH). If the exit criteria from the TPSL status, defined from SQE at the time of its opening, are respected the process closes. The TPSL process is a tool used to identify, monitor and improve the Suppliers quality performance chronically missing or significantly poor. The aim of the TPSL process is to: 1. Identify Suppliers with poor quality performance; 2. Develop a shared mitigation/improvement plan to improve the quality of supplies 3. Strengthen communication between the Supplier Quality, Purchasing and Suppliers. The selection criteria include, but are not limited to: 1. Serious violation of process / procedures 2. False statements regarding the implementation of specific quality requirements of the customer (FRV - Forever Requirement Violation); 3. Significant quality issues during the Product Development (APQP Management) accompanied by an action plan agreed but not respected by the Supplier; 4. Any product changes (shape, material) from the supplier not previously approved by the customer (FRV - Forever Requirement Violation); 5. Changing the place of production of the supplier without the customer approval (FRV - Forever Requirement Violation); 6. Quality performance unusually low (as demonstrated by inadequacy of ordinary indicators) with quality issues that indicate a quality system systemic unreliable or unstable; 7. Significant Quality problems in the field that justify one or more recall campaigns or more yard-hold; 8. Not acceptable progress of the process of improving / Control of Shipping Level (s) (CSL) (see Chapter 3 - CSL STEPS).

11 Date: 12/15/2014 PROCEDURE N 16 (rev. 6) Page 11 of Operation of the TPSL The functions / persons involved in the TPSL process are: Supplier Quality Engineer, Commodity manager, Team Leader and Supplier. The process is divided into the following seven steps: 1. Start; 2. The TPSL Review; 3. Measure approval; 4. Notification of TPSL Status to the supplier and the operative line (buyer) (See the TPSL opening letter, Annex 8); 5. Assessment of progress in achieving the exit criteria; 6. Monitoring of the open TPSL status; 7. Closure of TPSLs who have met the exit criteria (by sending the TPSL closure letter, Annex 9). If the exiting criteria are not respected: a. It is the responsibility of the SQE check and discuss with the supplier if it s necessary to extend the duration of the measure so that the agreed exit criteria can be achieved. b. If the request of extension made by the supplier is accepted, this will extend the duration of the measure of containment and the achievement of the required criteria will be analyzed in the due date. c. If the request of extension made by the supplier is refused and the Supplier didn t reach the agreed exit criteria, it is possible proceed with the escalation process in the following way: For suppliers present in all or in most of the regions, referred as "Global", customer must start the process of "Escalation to Parent CEO"; The suppliers regional must be placed in New Business Hold (see next chapter). 6 NBH In the most serious cases involved in the supply quality, Fiat Group Purchasing can decide to apply to the Supplier the New Business Hold (NBH) status. This condition involves the failed assignment of Business to the Supplier for the whole duration of the measure.

12 Date: 12/15/2014 PROCEDURE N 16 (rev. 6) Page 12 of Assessment on the start of an NBH Supplier Quality reserves the right to propose a supplier for the NBH at every occurrence of conditions that are deemed to be very serious. As an indication, these conditions are the following ones, without being limited to them: 1. Escalation CSL1 CSL2 CSL3; 2. Change of production location of the Supplier or of a 2nd level Supplier or of material, not approved by the Customer; 3. Quality problems on the field that can justify a readjustment campaign (particularly important for problems involving the safety of passengers) or Yard Blocks; 4. Fro product in development (see also Standard 08090): Action Plans not met by the Supplier in the terms of both actions and times; 5. Diffused quality problems, with frequent changes of status (unsteadiness of Supplier s quality). This unsteadiness can be measured by means of the trends of indicators (PIQ, PPM, etc.); 6. Misstatement by the Supplier to the Customer Plant (see Procedure 08018, Ann. 2, point B); 7. Excessive saturation of the supplier s lines (possibly evidenced by adequate PDR) Above-said information, concerning problems that can be ascribed to the Supplier and including a proposal of immediate restraint actions and the criteria to be released from the measure, are collected by SQE, that fills in the Quad Report (Annex 7) and shares it with SQ CMS. Then, this document is shown, for sharing, to the competent Purchase Operating Line management. If the Quad Report is shared by the Purchase Operating Line, it is submitted to the Business Process (S.Q.) who sign the NBH opening letter (Annex 2) containing the expected duration of the NBH. The measure of NBH applies to all products delivered by the supplier's plant concerned by the measure, to all sectors of the Fiat Group and Chrysler. If the NBH involves more than one Sector, in addition to the above mentioned signatures, it is required the signatures of SQ Vice President. 6.2 NBH opening SQEM will set a meeting with the Supplier, during which the NBH opening letter is delivered together with the Quad Report (Annex 7). During this meeting, the plan of the actions to be carried out to be released from the NBH status is shared. The NBH opening letter (Annex 2) shall be sent also to Business Process, that records the NBH opening in SQP, and to all the addresses indicated at the bottom of the form. Business Process, with the aim to share the information with all sectors of Fiat Group and Chrysler, will load the NBH opening data into the FGP Portal filling in a specific form. The NBH is considered to be active from the date indicated in the letter. The NBH shall be opened on a Supply code. Should the Supply code correspond to more than one Supplier s Plant, the letter shall indicate which of these factories is involved in the measure. The supply quality monitoring by SQP shall penalize (see Procedure and SQP system) all the factories corresponding to the Supply

13 Date: 12/15/2014 PROCEDURE N 16 (rev. 6) Page 13 of 13 code; therefore the Supplier Quality shall carry out an additional management of the Bid lists, in order not to apply the penalization to the factories not involved in the measure. 6.3 NBH closing At the end of the preset period, the NBH can be closed if the Supplier proves to fulfill the release criteria set in the Quad Report (Annex 7). Before the NBH period is over, the SQE shall carry out a positive PCPA ( 3) in order to certify the improvement. Finally, if the Supplier proves to have fulfilled the release criteria, he shall send the CSL1/CSL2/CSL3/NBH closing request (Annex 3) submitting it to the approval of FIAT Purchasing. The approved closing request form (Annex 3) shall be sent also to System & Data Management and to all the addresses indicated at the foot of the form. Business Process updates the SQP database, recording the closing of the measure and in this way eliminating the red status in the Bid Lists concerning the involved codes; unless other critical aspects are present, from this moment the development of new products can be assigned to the Supplier s Code. Business Process, with the aim to notify the closure of the NBH to all sectors of Fiat Group and Chrysler, will update the information into the FGP Portal. Should the release criteria be not fulfilled, the NBH period can be extended and the Quad Report can be revised at the discretion of Fiat Group Purchasing.