Supplier Quality Assurance Manual SQA-1000

Transcription

1 Supplier Quality Assurance Manual SQA-1000 SQA-1000 Revision 10 Page 1 of 41

2 TABLE OF CONTENTS 0.1 MGM Brakes Facilities and Contacts Introduction 5 - MGM Brakes Quality Policy - Goal - Purpose - Metrics 1.0 Quality System Requirements 1.1 General Requirements Quality Planning Process Design & Specification Review Process Flow Diagram Process Failure Mode and Effects Analysis (PFMEA) Control Plan Manufacturing Process Control Lot Control & Traceability Tooling Control & Records Nonconforming Product & Deviation Control Supplier Responsibility for Notification of Changes Manufacturing Process Data & Record Retention Req mt Cost Reduction & Continuous Improvement Customer Order Management & Production Scheduling On-Time Delivery Annual Re-Verification Supplier Selection & Assessment 2.1 Supplier Selection Potential Supplier Evaluation & Assessment Current Suppliers Assisting Suppliers with Quality Improvement Initial Sample Inspection Report (ISIR) Process SQA-1000 Revision 10 Page 2 of 41

3 3.1 General Conditions Requiring ISIR Submittals Document Requirements Sample Requirements Release of First Production Shipment Payment of Tooling Dimensional Layout & Material/Finish Report (Form A) Manufacturing Functional Report (Form C) ISIR Summary Report (Form D) Nonconforming Product 4.1 Nonconforming Quality Report (NCQR) Eight Discipline Procedure Engineering Deviation Request MGM Brakes Electronic Data Exchange (EDI) Requirements 5.1 General Supplier Implementation Guidelines EDI Supplier Information Sheet Packaging and Labeling Instructions Packaging Instructions Label Standards Label Format PDF4172D Barcode Barcode with Code 39 Symbology Data Characteristics Label Location Other Related Documents 39 SQA-1000 Revision 10 Page 3 of 41

4 7.0 Supplier Web Portal General ASN s Forms File transfer 40 Form Appendix Rev. Date ISIR Dim. Layout & Material/Finish Report, Form A, QF 3850 Rev. 5 09/16 ISIR Dim. Form A, Sheet 2 QF 3851 Rev 4 09/16 ISIR Manufacturing Functional Report, Form C QF 3855 Rev. 3 07/98 ISIR Summary Report, Form D QF 3860 Rev. 3 07/98 Engineering Deviation Request Form EF 3870 Rev. 9 02/11 Nonconforming Quality Report, NCQR QF 3880 Rev. 5 03/07 Eight Discipline Problem Report, 8D QF 3890 Rev. 4 06/14 SQA-1000 Revision 10 Page 4 of 41

5 MGM Brakes Facilities and Contacts FACILITIES CONTACTS MGM Brakes (Corporate) Joe Daniels, Quality Assurance 6200 Harris Technology Blvd Bill Umberhocker, Purchasing Charlotte, NC Annie Bratton, Purchasing Telephone: Steve Lepard, Engineering Fax: Casey Zella, Metrology Lab Ronnie Willis, IS Dept., EDI Coordinator MGM Brakes Bob Stutsman, Plant Manager PO Box 249 Phil Watt, Quality Assurance 1184 S. Cloverdale Blvd. Dave Carrillo, Material Control Cloverdale, CA Telephone: Fax: MGM Brakes Beverly Allen, Plant Manager PO Box 70 Larry Hall, Material Control 229 Park Avenue Mike Carter, Quality Assurance Murphy, NC John McCoy, Engineering Test Lab Telephone: Fax: SQA-1000 Revision 10 Page 5 of 41

6 INTRODUCTION MGM BRAKES QUALITY POLICY It is MGM Brakes policy to design, manufacture, and market products that consistently meet customer expectations for quality, performance, delivery, service, product safety, and value. A Quality Management System is in place and a strategic plan has been executed to support this commitment to our customers. A framework for setting quality objectives and continually improving upon them has been established and implemented. MGM Brakes Environmental Policy MGM Brakes recognizes that responsible environmental management is in the best interest of the company, the community and for the protection of the environment. MGM Brakes is therefore committed to following sound environmental management practices. We will pursue opportunities for continual improvement and prevention of pollution. We will comply with all applicable environmental laws, government regulations and other legal environmental requirements. MGM Brakes will commit all necessary resources to fulfill our compliance obligations. We will develop systems to ensure that internal standards and systems related to environmental management are followed. We will identify and assess significant environmental impacts and continually strive to properly manage them. We will communicate to our employees, those working on our behalf, visitors and other interested parties this Environmental Policy, so that they will have knowledge of appropriate environmental management practices when on our property. SQA-1000 Revision 10 Page 6 of 41

7 Goal: MGM Brakes Supplier Quality Assurance Manual, SQA-1000, is provided to define quality responsibilities and requirements for all of our suppliers. Purpose: The SQA-1000 manual defines the responsibilities that a supplier is expected to accept when entering into a business agreement with MGM Brakes. The manual also outlines fundamental quality requirements that are important to a disciplined approach to quality, the management of processes, the management of costs, and the continual drive towards improving the product and service that is being offered. The specifications in this manual are a supplement to the MGM Brakes purchase order. Questions concerning the manual should be directed to MGM Purchasing. Metrics: MGM Brakes measures supplier performance in these areas: Quality - Technology - Delivery - Cost We expect our suppliers to participate in our efforts to meet our customers 50 PPM quality goal. SQA-1000 Revision 10 Page 7 of 41

8 SECTION ONE: QUALITY SYSTEM REQUIREMENTS 1.1 General Requirements Present and potential suppliers to MGM Brakes must operate within an effective quality system. Unless waived in writing by the MGM sourcing team, Suppliers must be certified to an active version of ISO 9001 or ISO/TS It is highly recommended that the supplier shall follow the requirements of the current version of the Production Part Approval Process (PPAP) manual and meet the intent of the requirements specified in the following AIAG Reference Manuals: Advanced Product Quality Planning and Control Plan (APQP), Potential Failure Mode and Effects Analysis (FMEA), Measurement Systems Analysis (MSA), and Statistical Process Control (SPC). Additional MGM Brakes specific requirements are noted in this manual. Comments or questions regarding the MGM Brakes Supplier Quality System Requirements may be directed to MGM Brakes Corporate Quality. 1.2 Quality Planning Process Perform Quality Planning Review Product Design Create Process Flow Chart Create Process FMEA * Write Control Plans to Cover PFMEA * Plan Qualification of Measuring Equipment * Define Inspection Methods * Define Sampling Plans * Define SPC * Write Quality Instructions * Examine Tolerances * Note Key Characteristics * Assess Manufacturability * Identify Quality Control Points * Identify Process Control Points * Create Floor PLan Layout Perform Mfg Planning * Write Control Plans to Cover PFMEA * Plan Selection of Equipment * Plan Equipment Capability Study * Write Set-Up Instructions * Prepare for Special Processes * Write Manufacturing Instructions * Define SPC * Plan Selection, Training Of Employees SQA-1000 Revision 10 Page 8 of 41

9 1.3 Design & Specification Review It is the supplier s responsibility to have a clear understanding of the requirements set forth in the MGM Brakes engineering drawings & specifications prior to accepting the job. MGM Brakes Engineering & Quality at their discretion will have design review with the suppliers during the product development phase, with regard to the design intent. This responsibility extends to the award or agreement to pursue any outsourced processes. An outsourced process is defined as: any process performed on materials or components once in possession of MGM Brakes, then sent to another supplier/vendor for value added operation(s), and finally sent back to MGM Brakes under a different item number and/or an increased value. To the extent possible, all outsourced processes need to be reviewed by MGM Brakes and/or the appropriate supplier/vendor personnel to insure that any impacts to the environment have been considered and possible improvements or actions related to those environmental impacts have been discussed and/or implemented. 1.4 Process Flow Diagram The supplier must develop a process flow diagram that reflects all aspects of the manufacturing processes, from receiving of raw material to shipping of finished product, including outsourced processes. 1.5 Process Failure Mode and Effects Analysis (PFMEA) Suppliers of medium to high-risk materials or components are expected to perform a Process Failure Mode and Effects Analysis (PFMEA). The Automotive Industry Action Group (AIAG) has published a reference manual, Potential Failure Mode and Effects Analysis, to assist in the preparation of this document. PFMEA should be utilized in assuring manufacturability of new as well as existing processes. SQA-1000 Revision 10 Page 9 of 41

10 1.6 Control Plans Suppliers are to develop and utilize AIAG-style control plans meeting MGM Brakes requirements for all key control characteristics that are identified in material and component drawings. The drawing symbol for these characteristics is a hexagon with either a K or ST in the center. The control plan must include some form of statistical control on processes with variability. Key control characteristics are any product or process characteristics determined by MGM Brakes Engineering to be critical and could affect form, fit, or function. On components that require heat treatment and surface coating, detailed control plans for these processes must also be submitted. Suppliers are also responsible for ensuring that their sub-suppliers understand the requirements for these key characteristics. 1.7 Manufacturing Process Control The supplier is expected to utilize statistical concepts and methods in the manufacture of key control characteristics that are identified in MGM Brakes material and component drawings. Statistical data may be required to demonstrate the control and monitoring of essential processes. It may be either in the form of ongoing SPC (Statistical Process Control), or periodic process capability studies with ongoing sampling inspection. The control plan should clearly define the monitoring methods for all key control characteristics identified in MGM Brakes Engineering drawings. Additional control characteristics may be required as deemed necessary by the supplier to ensure process control. A process with a CpK of less than 1.33 should be considered in need of process improvement. SQA-1000 Revision 10 Page 10 of 41

11 1.8 Lot Control & Traceability Suppliers are expected to have lot identification control procedures in effect on materials provided to MGM Brakes. The method of control must allow for the traceability and segregation of questionable product at the supplier s facility, MGM Brakes facility and MGM Brakes customer locations. A lot is defined as a quantity of product produced under similar conditions using the same heat or batch of new material, and/or process parameters/setup. The lot is expected to be homogenous and have all significant attributes. Provisions must be made to maintain lot traceability after undergoing secondary processes, such as heat treatment, or surface finishing. 1.9 Tooling Control & Records All tooling and/or equipment used in the manufacture of products for MGM Brakes shall be maintained in a condition that will assure quality parts with reasonable tooling life. Any MGM Brakes-owned tooling found not to be able to produce parts to MGM Brakes design requirements must be reported to the Corporate Purchasing. All tooling owned by MGM Brakes must be permanently identified as the property of MGM Brakes along with the proper tool number. Tooling must be updated to the latest blueprint revision released by MGM Brakes unless otherwise agreed upon. This tooling modification must be documented and traceable. ISIR samples are to be submitted for approval. All obsolete tooling must not be scrapped without written authorization from MGM Brakes Purchasing. The supplier must have a documented maintenance program for all tools and dies. SQA-1000 Revision 10 Page 11 of 41

12 Traceable control records are to be maintained. Upon request, the supplier will submit a report which includes the following: 1) tool description 2) tool present condition (cost of rework, if required) 3) date tool was built or transferred 4) revision level tool was built to 5) revision level tool was modified to 6) and date last maintenance was performed. The supplier shall maintain formal procedures addressing tool handling, storage, and maintenance Nonconforming Product & Deviation Control The supplier is responsible for the control, segregation, and reporting of nonconforming product. When product in this category is detected at MGM Brakes, the supplier is responsible for costs related to sorting, rework, or return shipment of material. The supplier is also responsible for providing responsive feedback as to corrective actions being taken in regards to the nonconformity. Non-responsiveness may result in administrative costs being charged to the supplier as described in the Nonconforming Product section (Section 4) in this manual. A deviation is a document issued by MGM Brakes authorizing a departure from engineering specifications and is approved by corporate Engineering, Quality, Purchasing, and plant Quality. A deviation request (use MGM Brakes Engineering Form EF 3870) must be made in writing by the supplier to the Quality Assurance department representative at the receiving location or corporate office. Refer to the Nonconforming Product section of this manual for instructions on what actions need to take place and how to complete and process this form. SQA-1000 Revision 10 Page 12 of 41

13 1.11 Supplier Responsibility for Notification of Changes Subsequent to the initial ISIR approval, any changes in materials, processes (including parts such as bosses, or processes such as heat treat, which may be sub-contracted by the supplier), tooling (including new molds or dies), or location of manufacture, have to be approved by MGM Brakes. Shipments incorporating such changes may not be made on those parts until an ISIR has been submitted and approved by MGM Brakes. Refer to the Initial Sample Inspection Report (Section 3) in this manual Manufacturing Process Data & Record Retention Requirements The supplier shall keep on file all records of process control data and certifications associated with production lots, including those from its sub-suppliers, and available to MGM Brakes upon request. Unless otherwise specified, supplier shall retain all records of certifications, inspection, test results, and traceability for a minimum of 10 years from the date of shipment to MGM Brakes Cost Reduction & Continuous Improvement Ongoing cost reduction activities are to be part of the management s business strategy. These activities need to be planned and evidenced by the reduction of material costs. MGM encourages joint value analysis programs with MGM Engineering and Manufacturing to make continuous improvements in the areas of cost, performance, and the ease of manufacturing and assembly Customer Order Management & Production Scheduling There must be a customer order management and production scheduling function within the supplier s organization that is responsible for incoming orders and the SQA-1000 Revision 10 Page 13 of 41

14 scheduling of material into the supplier s facility and through the production department. A system must be in place for the timely coordination and communication of original and revised customer orders. These orders should be translated into a production schedule. Information must be accessible regarding the availability of raw materials. This function needs to identify potential production or shipment disruptions and resolve and take actions on missed schedules On-Time Delivery All suppliers receive a release from the MGM Brakes assembly plant stating the part number, quantity and due date for each component. This information is critical in assuring that the assembly plants can continue to operate without interruption. MGM requires all supplier to adhere to these releases and advise the material control personnel within the MGM Brakes plant if the quantities or due dates are unable to be achieved. MGM requires that the goods be received within 5 business days of the due date on the release to be considered on-time. MGM has a goal of 100 % on-time delivery for all suppliers. This metric is monitored on a monthly basis Annual Re-Verification Unless waived in writing by MGM Brakes, the supplier shall verify annually each part or each family of parts to assure conformance to all specified requirements, including dimensional, material, heat treat, plating, and performance. Annual validation documentation shall be kept at the supplier and available to MGM Brakes upon request. Any nonconformance found during the annual verification must be reported to MGM Brakes Purchasing. This annual re-verification requirement shall be included in the supplier s production control plan. SQA-1000 Revision 10 Page 14 of 41

15 SECTION TWO: SUPPLIER SELECTION & ASSESSMENT 2.1 Supplier Selection MGM Brakes Purchasing Department interviews potential new suppliers. Information is sought on the source s quality reputation and ability, capacity, and technical knowledge to produce the product or service being sought. Suppliers are provided copies of drawings and specifications to be used in their quotation process. Those with competitive quotations are to be considered for the next step, which is an assessment of their quality system. 2.2 Potential Supplier Evaluation & Assessment Potential new suppliers of medium to high-risk materials or components; or of high volume products, are assessed by an MGM Brakes representative prior to placement of a purchase order for tooling or product. Potential new suppliers of low-risk materials or components; or of low volume products, can perform a self-assessment by completing the MGM Brakes Supplier Assessment Form, QF 3800S, and submitting this to MGM Brakes Corporate QA Department. The decision to perform an assessment or allow a self-assessment is made jointly by Corporate Purchasing and Corporate Quality. An assessment is generally not required by MGM Brakes if the supplier is already registered to either ISO 9001 or TS SQA-1000 Revision 10 Page 15 of 41

16 2.3 Current Suppliers Assessments to establish or update capability ratings of current suppliers may be initiated prior to placement of significant new business, as a result of current quality performance records, when supplier changes manufacturing facilities, or if a new order for product differs significantly from the previously purchased product. This decision to perform an assessment is made jointly by Corporate Purchasing and Corporate Quality. An assessment is generally not required by MGM Brakes if the supplier is already registered to either ISO 9001 or TS Assisting Suppliers with Quality Improvement In certain cases, the system assessment may disclose conditions which indicate that the supplier needs MGM Brakes assistance. Accordingly, when warranted, Corporate Quality Assurance will contact appropriate personnel in Purchasing, Engineering, or Manufacturing to arrange for the necessary technical assistance to be provided to the supplier. SQA-1000 Revision 10 Page 16 of 41

17 SECTION THREE: INITIAL SAMPLE INSPECTION REPORT (ISIR) PROCESS 3.1 General The ISIR process is the completion of documents that describe the actual condition of a small sample of parts that are produced using production tooling, processes, materials, and methods. No production parts are to be shipped unless written Form D approval has been issued by MGM Brakes Purchasing. For suppliers whose quality system utilizes the AIAG-style Production Part Approval Process (PPAP), it is acceptable to use this format and submit to level 3. MGM Brakes forms A, C, and D must also be included. 3.2 Conditions Requiring ISIR Submittals Suppliers shall submit an initial sample inspection report for the following reasons. New MGM Brakes supplier New parts Changes in materials, including those produced by the sub-contractor Changes in processes, including the secondary processes performed by the sub-contractor (revised Control Plan required) Changes in tooling, including new molds or dies of existing design revision level, or location of manufacture (revised Control Plan required, if affected) Any part undergoing an engineering change in configuration or material (revised Control Plan required, if affected) Update of tooling to latest blueprint revision level If temporary tooling or handmade tool room operations are required to meet initial production schedules; the supplier must notify MGM Brakes with the initial samples and submit a second set of samples upon completion. SQA-1000 Revision 10 Page 17 of 41

18 3.3 Document Requirements The supplier shall include with an Initial Sample Inspection Report (ISIR) package the applicable parts and documentation before a part can be approved for production. These shall include, in addition to MGM Brakes forms A, C, and D: a) A marked print and part samples b) Complete dimensional layout report c) Certifications & MSDS material, plating, heat treat as applicable d) Required testing records e) An AIAG-style control plan f) Process capability report showing all dimensions designated as K or ST must have a CpK of at least 1.33 using a sampling size of no less than 30. All non capable processes must have action plans to improve and containment action steps to minimize nonconforming parts shipped to MGM Brakes. Process capability data to be kept on file and available to MGM Brakes upon request g) Records of gage R & R studies to be kept on file, and available to MGM Brakes upon request. 3.4 Sample Requirements Samples shall be randomly selected from a representative production run. Handmade or toolroom parts are not acceptable. The production run shall consist of a minimum of 105 pieces unless otherwise agreed upon. Initial sample parts and documents shall be submitted on or before delivery date agreed upon with MGM Brakes Purchasing. Ship a minimum of 5 parts and all documents to: MGM Brakes Engineering Lab* or MGM Brakes Technology Center 229 Park Avenue 6200 Harris Technology Blvd Murphy, NC Charlotte, NC SQA-1000 Revision 10 Page 18 of 41

19 Attn: Lab Supervisor Attn: Metrology Lab * only power springs & return springs are to be sent to Murphy Engineering Lab Ship 25 parts to the MGM Brakes user manufacturing plant or plants that will be using the part, as instructed by MGM Brakes Purchasing, along with a copy of a Form C "Manufacturing Functional Report". Ship parts and ISIR documents to: MGM Brakes and/or MGM Brakes 229 Park Avenue 1184 S. Cloverdale Blvd. Murphy, NC Cloverdale, CA Attn: Quality Assurance Attn: Quality Assurance Note: Each container shall be marked "ISIR Samples". Diaphragms require a Form C sample submission of 100 parts. MGM may request larger sample sizes for these and other parts on a case by case basis. 3.5 Release of First Production Shipment Only after an approved Form D has been issued can the supplier ship production. The first production shipment must state First Production Run in the color green on all containers. This will alert MGM s receiving inspection department that this first production shipment needs to be inspected per MGM Brake s normal sampling plan. 3.6 Payment of Tooling Tooling invoices will be paid after MGM Brakes approves supplier's production samples. 3.7 Dimensional Layout & Material/Finish Report - (Form A) A minimum of five (5) parts are to be inspected for all characteristics that are on the MGM Brakes drawing and Engineering Specifications. This also includes inspection for appearance, casting heat checks, diaphragm blisters, fastener surface discontinuities, etc. All test data must be recorded on Form A Initial Sample Inspection Report - SQA-1000 Revision 10 Page 19 of 41

20 Dimensional Layout & Material/Finish Report (see appendix). If tooling involves duplicate fixtures or multiple cavity molds, dies, etc., one dimensionally inspected part from each is required as a minimum. For example: if two cavities, provide two from one cavity and three from the other. If nine cavities, provide one from each cavity. Any scribed layout lines or reference marks used to perform the layout inspection must be visible on the submitted sample parts. The supplier shall provide a representative material sample, as required by Quality Assurance, to the MGM Brakes Technology Center, attention Metrology Lab, when the dimensional samples cannot also serve as the material test sample, or when chemical products such as fluids, compounds, etc. are being submitted. The supplier must also provide prepared sections of castings, forgings, weldments, heat-treated parts, plated parts, etc. used to prove product integrity and compliance with drawing specifications. All data must be recorded on Form A (see appendix). Attach all required certifications and independent test lab reports, if applicable. 3.8 Manufacturing Functional Report - (Form C) The MGM Brakes user facility plant s Quality Assurance Department shall complete this form, if applicable. The purpose of this function is to be assured that the part is completely functional. 3.9 ISIR Summary Report - (Form D) This "Initial Sample Inspection Report" document summarizes the completed ISIR part submission. The supplier shall complete this document, except for the section to be completed by MGM Brakes only, and attach all other required documents. MGM Corporate Purchasing will send back the completed Form D to the supplier with the approval or rejection of the submission. SQA-1000 Revision 10 Page 20 of 41

21 Reasons for an ISIR submission: New Tool If sample was produced from new tooling or a new mold/die for an existing revision. Tool Rework If sample represents first production after incorporating a change in the manufacturing process. Process Change - If sample represents first production after incorporating a change in the manufacturing process. New Part / New Supplier - If sample represents suppliers initial production of the part or if the location supplying the part is not a current supplier to the ordering MGM operation. Transferred Tool - Indicate if part was transferred from a different location to your facility to manufacture product. Engineering Change - If sample represents first production after incorporating a change in design or specification. Resubmission - If the submission of the parts is not the first. Time Lapse - MGM may request a verification of a part after a 1 year time lapse since part was originally approved. Deviation Request - If the supplier requests a deviation on a sample a Deviation Request Form (EF 3870) should accompany the sample paperwork. All deviation requests should be first submitted to the MGM manufacturing facility using the parts, since the plant QA Dept. makes the first comment on the disposition of deviation requests. This is because with any functional problems, further consideration of the deviation request may be inconsequential. Corrective Action - If samples are submitted with dimensions out-of-spec. supplier may submit corrective action with timing for implementation. This should accompany sample paperwork. SQA-1000 Revision 10 Page 21 of 41

22 SECTION FOUR: NONCONFORMING PRODUCT 4.1 Nonconforming Quality Report ( NCQR ) When nonconforming product is detected at a receiving MGM Brakes location, the Quality Assurance department will promptly notify the supplier and arrange for material disposition. An Nonconforming Quality Report form, NCQR, QF 3880, is generated by MGM Brakes Quality Assurance and issued to the supplier. It is the supplier s responsibility to complete an Eight Discipline Problem Report Form, QF 3890, which describes actions that are being taken to prevent the problem from recurring. A copy of the Eight Discipline Problem Report form is provided in the Forms Appendix of this manual. Costs incurred for sorting and reworking at an MGM Brakes facility and/or for returning material shipments are the responsibility of the supplier. These costs can include material, handling, labor, freight, and an administration fee. The supplier's concurrence must be requested prior to reworking material that is needed to meet MGM Brakes production schedules. NCQR copies will be distributed to the MGM Brakes Plant Manager, Plant Material Control, corporate Quality Assurance, corporate Purchasing, and to the supplier. 4.2 Eight Discipline Procedure The supplier shall complete and return the Eight Discipline Problem Report to the Quality Assurance Department at the MGM Brakes receiving location. The report requires the supplier to determine the root cause of the problem. The supplier must also give considerable thought as to the actions that will be taken for the elimination or reduction of the problem. MGM Brakes will examine these reports for effectiveness and SQA-1000 Revision 10 Page 22 of 41

23 if deemed inadequate, the report will be rejected and returned to the supplier for further action. The plant QA Department will contact the supplier if no response is received within 14 working days. If the supplier is unable to correct the nonconforming characteristic, they will be instructed to contact corporate QA. If the supplier has not submitted a completed Eight Discipline Problem Report response within 20 working days, an administrative fee may be charged to the supplier. This fee will be used to recoup the administrative costs that are over and above the normal routine of requesting timely and effective responses. The plant QA Department may also request that corporate QA or Corporate Purchasing contact the supplier to discuss the tardiness of specific responses. When MGM Brakes technical assistance is required, place a check mark in the "yes" box on the Eight Discipline Problem Report form. Attach a full description of the reason for the request. Send copies to the MGM Brakes user plant QA Department and to corporate Purchasing. 4.3 Engineering Deviation Request MGM Brakes views deviation requests as the end result of a break down in the supplier s quality planning process, system, practices, or manufacturing process capabilities. The administration of analysis and verification related to deviations are a cost that adds no value to our product. When the supplier deems that it is necessary to submit a request for deviation, their management must take certain actions. The supplier is responsible for the segregation and non-shipment of nonconforming product until a deviation is granted. Upon receiving approval, the supplier must abide by the conditions specifically stated within the deviation. SQA-1000 Revision 10 Page 23 of 41

24 Determine the root cause of what occurred to create the condition whereby a deviation is necessary. Take immediate actions that are certain to address the root cause and prevent a recurrence. On the deviation form, clearly define the condition that exists and to what extent. Attach a marked up MGM Brakes drawing to further explain the request. Submit the Engineering Deviation Request form along with the above attachments to the QA Department at the MGM Brakes location that is receiving the material. MGM Brakes plant QA Department reviews the request. If there are no concerns and all information has been provided, it will be forwarded to the Engineering Department for consideration. When Engineering finishes their review, analysis or qualification testing, corporate QA and Purchasing signs off to complete the request, which is then routed back to the plant QA Department. Disposition will be noted and all appropriate information is forwarded to the supplier. A supplier may not knowingly ship nonconforming material to an MGM Brakes facility without advance deviation authority. Deviated material must be clearly identified on the shipping container with the deviation number prior to shipment from the supplier's facility. In the event that nonconforming material has been mistakenly shipped to an MGM Brakes location, the supplier must immediately notify the QA Department at that location. SQA-1000 Revision 10 Page 24 of 41

25 SECTION FIVE: MGM BRAKES ELECTRONIC DATA EXCHANGE (EDI) REQUIREMENTS 5.1 General Compliance with MGM Brakes EDI requirements is a core condition of doing business with MGM Brakes. MGM Brakes specifies that all EDI transactions with trading partners will be communicated utilizing ANSI X12 standards and AIAG implementation guidelines. The EDI documents supported at this time are the 830 Planning Schedule, 856 Advanced Ship Notice, and 997 Functional Acknowledgement. Detailed EDI specifications can be obtained by contacting MGM s EDI Coordinator at , or at EDI@mgmbrakes.com. New suppliers should review the following guidelines, and fill out the Supplier Information Sheet and fax to our EDI Coordinator, at , to EDI@mgmbrakes.com. Suppliers shall adhere to the following guidelines; Implement all MGM Brakes required EDI transactions within 30 days of first contact by MGM Brakes or its designated enabling service. (See note 1 and 2 below). Access EDI mailboxes minimum daily to retrieve 830 and 997 transaction sets. Send 856 Advanced Ship Notice within 1 hour of material leaving your facility. Send 997 transactions to acknowledge all transactions received from MGM Brakes. Review all 997 transactions received from MGM Brakes to correct errors related to the 856 transaction in a timely manner. Note: MGM Brakes, in certain cases, may make an exception to the above EDI requirement for small, low-volume suppliers. This exception is solely the decision of MGM Brakes. Even with this EDI exception, ASNs are still required to be sent via fax or . At a minimum, suppliers shall provide part number(s) and quantity(s) shipped. We also prefer information on the number of containers (cartons, skids,etc.), quantity SQA-1000 Revision 10 Page 25 of 41

26 per container, lot and/or serial numbers, method of shipment, and the carrier's PRO number. Chargebacks may be issued in response to the following, but not necessarily limited to: Missing or incorrect ASN information transmitted via EDI No ASN transmitted via EDI prior to material arriving at receiving dock (includes late ASN s) Shipments received which do not match EDI ASN s No or incorrect part identification label. 5.2 Supplier Implementation Guidelines SCOPE This guideline is written to facilitate the transmission of common business documents, or transactions, between MGM Brakes and its suppliers using Electronic Data Interchange (EDI). It outlines guidelines and practices, which are commonly accepted in our industry today. This document refers to issues and information that are required only for the EDI relationship. Any existing guideline or contact between MGM Brakes and its suppliers is not affected. * It does NOT replace any signed purchase order or agreement currently in place. Upon acceptance of this document, the supplier agrees to the conditions and guidelines set forth for an EDI relationship with MGM Brakes. TRANSACTION SETS AND STANDARDS The transaction sets used by MGM Brakes are defined according to the American National Standards Institute (ANSI) ASC X12 EDI standards. In addition, MGM Brakes SQA-1000 Revision 10 Page 26 of 41

27 has agreed to use the Automotive Industry Action Group (AIAG) subset and implementation guides of the ASC X12 Transactions. We are implementing against Version of the ISA Interchange record. The version used in each transaction set is documented in the implementation guide for each transaction. THIRD PARTY NETWORKS MGM Brakes will transmit all ASC X12 standard transactions through a third party communications network. An electronic mailbox to which documents can be sent or received will be maintained by MGM Brakes on the Global exchange Services (GXS) network. If at anytime MGM Brakes changes its network of choice, we will provide at least thirty (30) days notice. EXPENSES Each supplier will be responsible for the costs of maintaining their own electronic mailbox on their respective network. This includes minimum use charges, archiving, data translation, conformance, and other services each trading partner uses. If both MGM Brakes and the supplier use the same network, the sender will pay all sending-related charges imposed by the network, and the receiver will pay all the receiving-related charges. This is a commonly known as a split of charges. If MGM Brakes and the supplier are on different networks, each will be responsible for any interconnect charges of their own network. SECURITY Each supplier will implement security measures to protect the EDI documents against unauthorized or unintended transmissions. This includes data, computer, facility, and networking access user ID s and passwords. Each supplier will consider the EDI document as confidential and proprietary to their relationship, and each supplier will SQA-1000 Revision 10 Page 27 of 41

28 implement security measures to ensure the data contents will not become available to third parties unless agreed to by both MGM Brakes and the supplier. ACCEPTANCE OF MAILBOX CONTENTS Upon the receipt of the entire contents of an EDI document, which includes header, data, trailer, and other control information as it was sent and without modification; the document will be considered written for purposes of any statute of fraud or similar law. An EDI document will be considered received when the network has delivered it to the receiver s electronic mailbox. MGM Brakes and the supplier will retrieve contents of their electronic mailboxes based upon a schedule agreed upon by both parties. FAILURE TO COMMUNICATE EDI DOCUMENTS Neither MGM Brakes or the supplier will be liable to the other for failure to transmit EDI documents in a timely manner due to computer down time; power outage; inappropriate design of hardware or software; error of, or nonperformance by, a network; or any other cause beyond their control. If such failures occur at the sender, it is their responsibility to notify the receiver as soon as the problem is known, and to provide a non-edi transmission or an electronic retransmission in a timely, reasonable, and appropriate to the circumstances manner. DATA COMPLIANCE AND LOST DATA The supplier will use reasonable automated procedures to check each EDI document for compliance with the ANSI ASC X12 EDI standards. If they discover the document is not intended for them, they will immediately notify MGM Brakes of the error, and delete the information from the supplier s system. SQA-1000 Revision 10 Page 28 of 41

29 5.3 EDI Supplier Information Sheet 1. Company Name: Address: City, State, Zip: 2. EDI Contact: Phone: Address: 2 nd EDI Contact: Phone: Address: 3. Envelope ISA Qualifier and Identification. Supplier Qualifier: Identification: Van: MGM Brakes Qualifier 01 Identification: Van: GXS (Global exchange Services) 4. EDI software utilized: 5. Documents supported: Other 6. MGM Brakes Contact: EDI Coordinator Phone: EDI@MGMBrakes.com Please complete and fax form to EDI Coordinator at or EDI@mgmbrakes.com SQA-1000 Revision 10 Page 29 of 41

30 SECTION SIX: PACKAGING AND LABELING INSTRUCTIONS 6.1 Packaging Instructions 1. Choice of packaging can have an effect on product quality. Suppliers are responsible for using appropriate packaging considering the various transport methods and routes that may be employed. Products must arrive at the point of usage without damage or deterioration. Containers must allow products to be transported, stored, unpacked, and used efficiently. The MGM Brakes user plants will approve the supplier s proposed packaging. 2. Environmental Considerations. Material that contains stamping fluids or rust preventative fluids must be contained in a plastic liner to prevent leakage and environmental impact. Cardboard divider at the bottom of the plastic liner should not be used as it will be soaked and saturated with fluids, and difficult to dispose of in an environmental-friendly manner. To be in compliance with ISO Environmental Standard, suppliers must provide updated MSDS of such fluids to the MGM user plant QA, prior to using or making any changes. 6.2 Label Standards The following label standards are to provide a uniform implementation and integration of material management: 1. The minimum size of the standard MGM Brakes part identification label shall be 4" high by 6" wide. (See Figures 1a and 1b) 2. Label paper shall be in a color in contrast with black printing, white preferred. SQA-1000 Revision 10 Page 30 of 41

31 3. Adhesive types can be pressure sensitive or dry gummed as long as adherence to the package substrate is assured and application is wrinkle free. If the specified label cannot be affixed to the package/container, because of container size or design, special arrangements will be required in writing. 4. The following label information is required in human readable and barcode readable format, and must have the proper AIAG approved data identifiers. Element AIAG Identifier MGM Brakes part number. P Quantity in container Q MGM purchase order number K MGM engineering rev. level 2P Supplier lot number (1 per container only) 1T Deviation number Z Tool/Mold number 10S Supplier name and address Human readable only 5. Other identifying information may be required depending on the type part being supplied. This data should be traceable through lot number. Please contact the Director of Quality Assurance if you have questions. 6.3 Label Format Our preferred label format contains a PDF417 2D barcode containing all the above required elements. For suppliers not capable of producing a PDF417 barcode, we will accept an alternative label format with barcode symbology code 39. SQA-1000 Revision 10 Page 31 of 41

32 6.4 PDF417 2D Barcode Label Sample 2d label 4 Figure 1a 6 1. The PDF417 barcode consists of a Message Header, Format Header, all the part data elements including AIAG prefix identified in section 6.2 above, and Message Trailer. Each data element is separated by an At Sign ) delimiter. 2. The X dimension is.020 inch (20 mils), the row height is 2x, there are 3 data columns, and the error correction level is 5. Sample PDF417 encoded data string [)> R S06@P @Q10000@K @2P123@1T @Z08-999@10S R S E OT SQA-1000 Revision 10 Page 32 of 41

33 Description of PDF417 data [)> R S Message Header 06 Format Delimiter P AIAG Prefix for part number Part Delimiter Q AIAG Prefix for Quantity Delimiter K AIAG Prefix for PO Number PO Delimiter 2P AIAG Prefix for Rev 123 Delimiter 1T AIAG Prefix for Lot Number Lot Delimiter Z AIAG Prefix for Deviation Number Deviation Delimiter 10S AIAG Prefix for Tool Number Tool Number R E S O T Message Trailer SQA-1000 Revision 10 Page 33 of 41

34 Decimal / Hex value for special characters SQA-1000 Revision 10 Page 34 of 41

35 6.5 Barcode Label with Code 39 Symbology Sample label 4 Figure 1b 6 1. Bar code symbology is code 39, (also known as 3 of 9). The barcode symbol height shall be a minimum of 0.5 inch (13mm). The range of the width of the narrow element (smallest space or bar) shall be from to inches. The ratio of the nominal width of the wide elements to the nominal width or the narrow elements shall be 3:1 with an allowable range of 2.8:1 to 3.2:1. SQA-1000 Revision 10 Page 35 of 41

36 6.6 Data Area Characteristics MGM part number, quantity, purchase order number, revision number, lot number, tool number (if applicable), must be included on each label in the designated data area. If a part is under a deviation then the deviation number must be included on the label. All data may vary in the number of characters. 1. Part Number Area: PART NUMBER (P). The length of the part number is variable plus the data identifier (P). The part number shall be the designated number assigned by MGM Brakes. 2. Quantity Area: QUANTITY (Q). The maximum length of the quantity is 5 numeric characters plus the data identifier (Q). When unit of measure is pieces, no notation is required. When the unit of measure is not pieces (e.g., pounds), it shall be noted in human readable form only. When used, the unit of measure shall be directly to the right of the human readable quantity. The unit of measure shall not be bar coded. 3. Purchase Order Number Area: PO Number (K). The maximum length of the purchase order number is 7 characters plus the data identifier (K). The purchase order shall be the designated number assigned by MGM Brakes. 4. Revision Number Area: REV NUMBER (2P). The maximum length of the revision number is 3 numeric characters plus the data identifier (2P). The revision number shall be the designated number assigned by MGM Brakes. Revision level will usually be the current level on the MGM engineering production release drawing. However, the revision level must reflect the latest approved tooling modification. This situation typically applies, but is not limited to, aluminum die cast parts. SQA-1000 Revision 10 Page 36 of 41

37 5. Lot Number Area: LOT Number SPLR (1T). The maximum length of the lot number is 10 characters plus the data identifier (1T). Supplier is responsible for assigning a lot number, (reference section 1.8). If parts are serialized, a lot number of N/A must be provided. 6. Deviation Number Area: DEV NUMBER (Z). The maximum length of the deviation number is 6 characters plus data identifier (Z). The deviation number shall be the designated number assigned by MGM Brakes. If you have no deviation then field value should be N/A. If you have multiple deviations, then print the latest or most current one. 7. Tool/Mold Number Area: Tool No: (10S). The maximum length of the tool number is 8 characters plus the data identifier (10S). Supplier is responsible for assigning a tool number, (reference section 1.9). Tool/Mold number information is valuable when containment action is needed at MGM or supplier, especially when supplier uses multiple tools/molds to produce a part number. Tool/Mold number is required for, but not limited to, aluminum die cast parts, rubber diaphragms, and when the approved revision level of the tool is different than the current revision level. All suppliers are encouraged to provide this information when a multiple tools/molds condition applies; when it does not apply, provide N/A. SQA-1000 Revision 10 Page 37 of 41

38 6.7 Label Location 1. Illustrations of the most common shipping packs and recommended label locations are show in figures 2 through 4. All cartons and pallets should have two identical labels and label should face outward. Pallet labels should be placed on two adjacent sides, in the upper right hand corner. Carton labels should be placed on two adjacent sides. 2. If different parts are mixed on the same pallet, a Mixed Pallet label (example shown below) should be located on two adjacent sides. (Wrap around label acceptable) 4 Figure 5 6 SQA-1000 Revision 10 Page 38 of 41

39 6.8 Other Related Documents 1. Packing List. The packing list will be included with each shipment for each destination, showing Shipment Identification Number, MGM Brakes purchase order number, part numbers, and quantity per part number. One copy of the packing list is to be attached to the last container loaded of every shipment so that is readily available when the trailer is opened. The packing list is to be inserted in an envelope marked clearly: Packing List. 2. Advanced Shipment Notification (ASN). The data contained on the shipment identification label shall be consistent with data transmitted in the advanced shipment notifications. (Reference section 5.1). 3. Invoices. The Shipment Identification Number (SID) will be included on all invoices. The SID number enables MGM Brakes to speedily process all invoices and, if problems arise, facilitates communication to suppliers. SQA-1000 Revision 10 Page 39 of 41

40 SECTION SEVEN: SUPPLIER WEB PORTAL 7.1 General MGM Brakes offers a supplier web portal at Functions available on the portal are viewing announcements, downloading and uploading of various documents, and sending ASNs. Some functions require you to have an account, and others are available to anyone. If you access a section that requires an account you will be asked to register. Your registration request will be reviewed within 24 hours (except on weekends and holidays), and if approved you will receive an indicating how to create a password. 7.2 ASN s Click on the Submit ASN Form link to send Advance Ship Notifications. The ASN should be sent within one hour of the carrier leaving your dock. Requires account registration. 7.3 Forms Forms that may be downloaded or uploaded are; 1. This Supplier Quality manual. 2. ISIR Form A. 3. ISIR Form C and D. 4. 8D Form. 5. Deviation Request form. 6. NCQR Form. 7. EDI Supplier Information sheet. Click on the form link to download a copy. Fill in the required information and save the document on your computer. To upload forms, click on the FILE UPLOAD link within the SUBMIT FORMS section. Fill in the required contact SQA-1000 Revision 10 Page 40 of 41