QE310-C-19 North America Packaging Guidelines for Suppliers

Transcription

1 Page: 1 of 24 Table of Contents Page No. 1. Introduction 2 2. Scope 2 3. Purpose 2 4. Supplier Responsibilities 2 5. Requirements 4 5.A General Requirements 4 5.B Packaging and Shipping Requirements 5 5.C Packaging Validation Requirements 5 6. Supplier Packaging Approval Request Form (SPPF) 6 7. Expendable Packaging 6 7.A Pallet Specifications 6 7.B Container Specifications 7 7.C Dimensional and Load Limits 8 7.D Palletizing 8 8. Returnable Packaging 9 8.A Returnable Container Systems 10 8.B Returnable Load Heights 10 8.C Modular Returnable Containers 11 8.D Removal of Exterior Identification from Returnable 11 8.E Removal of Interior Dunnage 11 8.F Returnable Washing/Cleaning 11 8.G Returnable Container Storage 11 8.H Load Stability Packaging of Prototypes and Pre-Production Parts Packaging Requirements outside of A Pallet Specifications B Container Specifications C Approved Pallet and Carton Sizes for International Suppliers D Dimensional and Load Limits E Palletizing F Preparation for Shipment Packaging problem & Reporting debating process Definitions 17 Exhibit 1 18 Exhibit 2 19 Exhibit 3 20 Exhibit Change History 23

2 Page: 2 of INTRODUCTION This document contains guidelines and specifications for the development, approval and use of packaging for product(s) being shipped to ZF Automotive, Steering Plants from suppliers and inter-company sources. The following guidelines will provide Suppliers with an overall awareness of the Packaging and Labeling Requirements at ZF and will guide them in developing a packaging concept and final package design that will meet the needs within the supply chain for safe, efficient and effective handling of the materials being transported from the Supplier to ZF Automotive (From now on ZF Steering Plants). 2. SCOPE These guidelines apply to all products being shipped to ZF NAS Steering Division (NAS). 3. PURPOSE I. The purpose of this document is to provide for the development, approval and implementation of a packaging strategy to be used in the transportation and handling process for product shipped to ZF NAS plants and inter-company sources worldwide. I IV. This guideline is designed to improve ZF NAS Facilities and trading partner productivity by providing effective and efficient development guidelines for packaging used for product protection during transport and storage while optimizing efficient and safe product handling throughout the supply chain. Our supplier s packaging standardization is essential to ZF NAS commitment to provide a cost effective high quality product to its automotive customers. The condition in which products arrive at our assembly facilities is a critical extension of your company s overall commitment to quality and performance. Therefore, it is essential that every supplier adhere to the Packaging and Identification Requirements defined in these guidelines. Adherence to these specifications will reduce labor and transportation costs, enhance product integrity, improve data accuracy, increase overall supply chain value, and support ZF NAS safety programs. These guidelines are intended to be used in conjunction with the ZF Automotive North American bar code label specification WA.D SUPPLIER RESPONSIBILITIES The following are basic requirements that a supplier must adhere to: I. The responsibility for ensuring that the goods are packed in such a way as to arrive in good condition lies with the supplier. It is the supplier s responsibility to design a safety packaging concept, adequate a package to protect their product and assure defect-free products when shipping to ZF NAS Facilities I The supplier is responsible for the selection, design and construction of all packaging materials. The supplier must propose the packaging concepts in the quotation phase. In case of returnable packaging the supplier must propose also an expendable back-up.

3 Page: 3 of 24 IV. For returnable concepts, the supplier s proposals must conform to these packaging guidelines and must ensure minimized costs. ZF NAS commodity buyer will review the proposal for quoting purposes, and will approve the packaging source to use. V. The supplier shall work with ZF NAS Packaging contact to insure maximum space utilization within the package while optimizing the density of transportation in all conveyance modes VI. V VI IX. The supplier is responsible for ensuring that the packaging validation testing can be completed within the planned start of supplier s production. A packaging validation test report shall be provided once the packaging validation testing is concluded. For domestic and overseas shipments, the supplier must take into consideration legal recycling and environmental requirements aspects. The supplier is responsible for ensuring that correct labeling is provided for all packaging (internal and external packs). Suppliers will label all packages and containers with only current labels/tags. The contents of the labels/tags must comply with the regional industrial standard and are to be coordinated with the ZF plant. The labels should be affixed so that they are visible and electronically readable without having to rearrange the packing units. The attachment of the labels/tags must be carried out on the pouches, clamping plates, card pockets or other devices provided on the container X. The supplier is obliged to complete all the packaging shipping documents in accordance with this. XI. Especially in the case of returnable packaging systems the following requirements must be considered by the supplier: i. The supplier must agree with a ZF NAS minimum and maximum stock of returnable packaging. ii. iii. iv. The supplier is responsible for managing the packaging stock and ensuring that any lack of packaging is escalated timely before impacting a shipment to ZF. The supplier must count the physical inventory annually and report the results to ZF NAS warehouse, logistic and packaging contact within the third week of November. The supplier is responsible for offering and designing an alternative packaging when a returnable system is used (of same size and equal to returnable standard pack quantity) which may be required for premium shipments, production run out programs, returnable containers outages, etc. v. The supplier must plan and maintain sufficient supply of suitable one-way alternative packaging. Alternate pricing for one-way packaging costs must be prearranged with receiving ZF NAS plant. vi. The supplier shall declare in their invoice the quantity of returnable (including the packaging code) shipped every time it s arriving at ZF NAS plant

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5 Page: 5 of REQUIREMENTS A) General Requirements X XI XIV. XV. XVI. XV XVI XIX. XX. XXI. XX XXI XXIV. Following are guidelines and specifications for the packaging of all materials to be supplied to ZF NAS facilities from internal and external suppliers. Included are specifications for standardized pallets and containers, packaging approval process and guidelines for suppliers out of North America. Compliance with these requirements is mandatory. Failure to comply with these requirements could result in a negative impact to the suppliers performance ratings as well as a chargeback to the supplier. The ZF Automotive buyer SHALL be responsible to enforce these requirements on the supplier. Deviations from this guideline are subject to approval by ZF NAS Packaging Contact. Deviations must be formally submitted to ZF NAS Packaging Contact and ZF buyer, and shall require written approval. Any questions or concerns regarding this specification should be directed to ZF NAS Packaging Contact or purchasing representative. In this document the word SHALL indicates a requirement and the word SHOULD indicates a recommendation. Additional packaging requirements may also be specified either on the individual part drawing documentation or provided directly by ZF packaging contact. It is the supplier s responsibility to familiarize themselves with these requirements. The Packaging and Identification Requirements Standards are available through the ZF Automotive VIN Web site. The packaging and shipping guidelines in this specification apply to ZF NAS Facilities. All labeling shall be in compliance with ZF NA Labeling Requirements WA.D A Supplier Packaging Proposal Form QE310-R19-01 (Section 6) must be submitted, and approved as a requirement of the PPAP Process. The package must deliver the part to the point of use, in a production ready and damage-free condition, assuming normal handling in transportation, storage and in-plant movement. Safety is our priority; unsafe packaging (disregarding any damage-free condition) is subject to changes at supplier s cost. Small parts, which are provided in an amount exceeding 1,000 parts per box, must have its total amount for Packaging Unit subdivided into groups of no more than 1,000 pieces (in plastic bags). Ex: screws, washers, nuts, plastic rings, etc.

6 Page: 6 of 24 B) Packaging and Shipping Requirements I. Standardization and consistency are keys in the development of packaging. Standard containers identified in this document are to be used. Once a standard is established and approved it is not to be changed without the written authorization of ZF NAS Packaging Contact. I IV. Only a single part number will be packaged into a given container at one time. A container is defined as the smallest possible shipping unit: i.e., carton, box, etc. Only a single lot number will be packaged into a given container at one time. Any reusable containers will be cleaned of all previous labels and miscellaneous debris prior to shipping to ZF NAS Facilities V. All incoming material will be palletized. VI. V VI IX. Suppliers will meet all applicable State, Federal, and International regulations regarding the packaging, marking, labeling and transportation of hazardous materials. All containers will be adequately sealed or covered to protect the contents during transit. Containers will not be filled beyond the weight or height capacity of the container, and must be readily stackable. Every single container shall use a single carton label. If internal packs, then the internal label shall be used in addition to the single carton label. See label specifications WA.D X. Palletized loads shall display master labels. See label specifications WA.D XI. X XI XIV. Mixed pallets will display mixed load labels. See label specifications WA.D The choice of packaging must take into consideration product characteristics, ergonomics, safety cost impacts, volume of production, delivery frequency, transport conditions and supplemental local ZF NAS Facilities requirements. Unique packaging dictated by a part (i.e., excessive oil, rust prevention, weight or fragility) not covered by these specifications are the responsibility of the part suppliers and must be qualified/approved by receiving ZF NAS manufacturing location. Packaging materials must be readily disposable. Dunnage should be held to a minimum. Natural occurring materials such as Kraft, fiber, corrugated and pulp dunnage are encouraged. C) Packaging validation Requirements I. Pre-shipment testing in a laboratory is the best way to determine if a freight package item is adequately protected against hazards encountered during shipping and handling. Shock, vibration and compression are major reoccurring forces present in all shipping modes, including the freight environment; damage will occur unless items are properly packaged to protect against these forces, but drop, incline impact, random vibration are also necessary. Temperature and humidity extremes are naturally occurring conditions that will also contribute to package failure

7 Page: 7 of 24 in the freight environment. At a minimum, lab tests should assess all of these potential causes of damage. I IV. ASTM International (American Society for Testing and Materials), and ISTA (International Safe Transit Association) are the principal sources for freight methods of laboratory testing. All Packaging must take into consideration the temperature and humidity extremes throughout North America. Humidity can range from 5% to 95% while temperatures can vary from 30 F to over 130 F, and shall consider temperature and humidity factors naturally occurring during overseas shipments Notes: Trial shipments via the freight carrier(s) of choice are strongly recommended following successful laboratory testing. Laboratory test results might be required for special good (electronics, expensive or heavy) 6. SUPPLIER PACKAGING APPROVAL REQUEST FORM I. The supplier must submit to ZF the Supplier Packaging Proposal Form (SPPF) QE310-R for each production part he intends to supply to ZF NAS Facilities. I IV. The SPPF must be submitted to ZF NAS receiving plant Packaging Contact prior to PPAP sign off. The SPPF must be completed in its entirety with part and packaging details, dimensions, photographs, drawings, material specifications, etc. The SPPF is subject to approval by the receiving ZF NAS Facilities Plant Packaging Contact. V. Test Validation Report, and Trial shipments may be required by ZF NAS Facilities Packaging Contact prior to production phase. VI. V VI IX. An approved and signed off SPPF must be kept on file at the supplier s location and is a requirement for the successful completion of the PPAP Process. Preproduction shipments shall be made to ZF NAS Facilities in production representative packaging. Hazardous material package testing and recertification are the responsibility of the supplier. Contact your ZF Purchasing Representative or ZF NAS Plant Packaging Contact with any questions regarding this process. 7. EXPENDABLE PACKAGING A) Pallet Specifications I. International suppliers refer to section 10 for expendable packaging

8 Page: 8 of 24 All shipments to ZF NAS Facilities, originating within, are to be made on a 48 x 45 or 32 x 30 pallets, part size permitting. I Pallets are to be notched to allow four-way entry (see Exhibit 2). IV. The 32 x 30 pallet requires that the 9 x 2 fork lift openings be 16 on center (see Exhibit 2). V. Four-way entry Perimeter Base Pallet are to be used for expendable packaging concepts VI. V VI All lumber used in wooden pallets construction should be treated and free of cracks or other defects that could result in failure in route to or at ZF NAS Facilities. Pallets are to be of sound construction, capable of withstanding the rigors of transportation and capable of supporting their load to, and until emptied at ZF NAS Facilities. All wood used in packaging and the construction of pallets must meet the requirements of the International Standards for Phytosanitary Measures #15 as set forth by the Food and Agricultural Organization or the United Nations. See web site listed below for current revisions: IX. Packaging failure is often attributed to poorly constructed pallets. It is the supplier s responsibility to purchase and use pallets suitable for his product. Part damage as the result of the use of unsuitable pallets will result in a charge back to the supplier. X. Returnable pallet bases (i.e., plastic) may be used in place of wooden pallets when shipping expendable cartons. Wooden pallets cannot be used in combination with returnable hand held totes. B) Container Specifications I. Following is a list of suggested container sizes cross-referenced with an appropriate pallet size: Pallet Size Carton/Layer Length With Height , 14, , 9, x , 9, , 7, , x Note: These modular container sizes have been rounded to the nearest whole number for example purposes. The containers used must be sized to fully utilize the length and width of the pallet but must never overhang the pallet. Cartons may have a stitched or glued manufacturer s joint of 1 ¼ in.

9 Page: 9 of 24 I IV. All cartons will display a box maker s certificate Various forms of interior dunnage may be required to protect the product. Such dunnage should be readily recyclable. V. Containers must be adequately sealed to ensure failure does not occur during handling and storage. VI. V VI Closures shall be made by gluing, taping, or proper equivalent. Use of staples for closure is not permitted. The design of the container should allow for easy disassembly of the carton after the product has been removed. Containers shall arrive in satisfactory condition at the point of use C) Dimensional and Load Limits I. For domestic shipments, the maximum stack height of a single unit load of packaging shall be 50. A 50 stack height optimizes trailer density. Loads stacked higher than this effect the trailer density negatively resulting in higher shipping and transportation costs for ZF. I IV. Gross weight of palletized loads shall not exceed 2160 pounds (980 kg). Cartons and containers to be individually handled will not exceed 30.8 pounds (14 Kg) individually. The maximum external dimensions for a handling container shall be 24 X 22 X 15 in (1067 X 559 x 381 mm). For containers above the height of 9 in (229 mm), handles or handle cutouts shall be integrated for adequate lifting D) Palletizing I. Domestic loads can either be stretch wrapped or banded to the pallet. Metal banding is not permitted with the exception of ZF NAS specific applications. Banding shall not interfere with the barcode readability. I IV. Banded pallets shall have two bands in the length and two bands in the width. Stretch wrapped loads require a wing type pallet. (See Exhibit 2). Stretch wrap will secure the load to the pallet as well as binding the individual containers together as a load. Containers shall fit within the pallet footprint. V. Cartons / containers shall never overhang the pallet. VI. External edge or corner protectors may be required for domestic shipments on some loads to protect the container and the contents. Protectors shall not extend beyond the palletized load.

10 Page: 10 of 24 V VI IX. When necessary, uniform packages containing different part numbers/lot numbers may be packed on a common pallet providing a Mixed Load label is used to identify it as such. Palletized loads shall have flush upper surfaces suitable for stacking. Pyramid stacking is not allowed. Palletized loads that are showing gaps or misalignment are not allowed (See Exhibit 4). If load can t be stackable, and upon plant approval, it shall be identified as non-stackable X. If releases do not result in full, flush pallet surfaces please bring this to the attention of ZF NAS receiving materials group. XI. X Palletized loads SHALL be capable of being stacked to 100 (2.54 meters) in height during transit. If load can t be stackable, and upon plant approval, it shall be identified as non-stackable Palletized loads shall be capable of being stacked 2 high (floor + 1 level) as minimum in warehouse and transportation or 4 high in storage or to a height of 10.5 (3.2 meters) whichever is greater as maximum. If load can t be stackable, and upon plant approval, it shall be identified as nonstackable 8. RETURNABLE PACKAGING I. The applicability of returnable containers is largely based upon geographic proximity of the supply base along with part, volume and cost considerations that drive the feasibility and use of returnable containers. The financial responsibility and management of the returnable container system and expendable backup packaging must be defined and agreed upon by the ZF Automotive Purchasing Representative, ZF NAS Plant Packaging Contact and the supplier prior to implementation and program launch. I Returnable packaging footprints are either 48 x 45 or 32 x 30. IV. Returnable containers shall be properly sealed and/or covered to protect the material during transit and storage. V. Returnable containers shall be properly palletized to protect material in transit. Returnable containers, pallet and top cap or lid are to be designed as a unit load to afford part protection and container optimization. Note: The pallet should have a positive interlock to containers that forms a secure load. VI. V Containers shall not overhang the pallet. Returnable bulk containers shall be molded in black color. Returnable handling containers shall be on gray color. Returnable pallet system (pallet and top cap) shall be molded in black color. VI All returnable hand held containers property of ZF shall be hot stamped and shall have 2 label placards on opposite sides (short sides). Bulk containers and returnable pallet system should have

11 Page: 11 of 24 ID plates. 2 more labels shall identify containers and pallets with a PKG code assigned by ZF NAS packaging contact IX. For more details related to the art work, containers type and specific guidelines of all returnable systems, please contact ZF NAS Plant Packaging Contact A) Returnable Container Systems The returnable container system may include bulk containers, modular (handling) containers, and palletized loads. Bulk Containers Modular Containers Palletized Loads B) Returnable Load Heights X. Recommended load heights, including pallet, shall be: 34 overall height (knockdown container) 50 overall height (knockdown and modular containers) XI. X XI Bulk container systems shall be sized to maximize cube-space in various modes of transportation to minimize freight costs. The returnable container shall be nestable, collapsible, or of the knockdown type in order to optimize the use of space while in storage and on return routes. The following are examples of acceptable cubing: Length x Width x Height 48 x 45 x x 45 x x 30 x 34 Returnable bulk plastic containers unless otherwise specified, the container must be collapsible and be provided with two drop down gates in the 48 or 32 side to provide easy access to the interior of the container. The color to use for bilk plastic containers shall be black

12 Page: 12 of 24 C) Modular Returnable Containers I. All containers shall be sized to fully utilize length and width of pallet or bulk container. Modular containers shall not overhang the length or width and shall not exceed the maximum overall height of 50. D) Removal of Exterior Identification from Returnable I. To avoid confusion or misidentification, the Supplier shall remove all previous exterior barcode labels, shipping tags, etc before return shipment to ZF NAS Facilities. E) Removal of Interior Dunnage I. ZF NAS Facilities will make every effort to remove interior dunnage / trash prior to collapsing /nesting of container. However, it is the responsibility of the Supplier to ensure that containers are clean prior to use. F) Returnable Washing / Cleaning I. Under certain conditions the Supplier may find it necessary to wash / clean containers. The Supplier shall provide containers free from dirt, oil, or other residue / debris which could jeopardize the quality of parts received at ZF NAS Facilities. G) Returnable Container Storage I. The supplier shall provide adequate storage to protect the containers from environmental elements to insure container integrity. ZF NAS prefers that returnable containers are not to be stored outside. H) Load Stability I. Palletized loads / bulk containers shall be adequately secured by stretch-wrap or banding. When banding is used, non-metallic banding is mandated. Metal banding is strictly prohibited. Horizontal or Belly banding modular containers, in order to achieve load stability is prohibited. Under these circumstances, it is recommended that there be an upgrade of materials used or additional corner posts should be used.

13 Page: 13 of 24 Shrink-wrapped skid Banded skid When a palletized load dictates weight greater than 2160 pounds (980 kg) prior approval from the ZF NAS Facilities Plant Packaging Contact shall be secured. 9. PACKAGING OF PROTOTYPES AND PRE-PRODUCTION PARTS I. Extra care must be given to the packaging and labeling of these parts. The package must totally encapsulate the product and provide protection from shock, vibration, impact and the elements. When prototype samples, and if final label is not implemented, packages of prototype parts should be marked clearly to the attention of a specific individual at ZF NAS Facilities: i. Minimum information shall include: Part number (if available), Part description, Quantity, P.O. (if applicable), Supplier name, Deviation no. if applicable. Attention to: Program or project reference. ii. The words Prototype or Pre-Production should be bold, black and 2 or 42 mm high so not to be missed. 10. PACKAGING REQUIREMENTS FOR SUPPLIERS OUTSIDE OF NORTH AMERICA I. Shipments originating outside of will most likely be moving by sea. As ocean container dimensions are different than over the road trailers, the pallet and container dimensions must maximize the available cube space available within the ocean container.

14 Page: 14 of 24 A) Pallet specifications I. Pallets are to be of sound construction, capable of withstanding the rigors of transportation and capable of supporting their load to and until emptied at ZF NAS Facilities/ Broken pallets jeopardize our safety programs, and delay our operations. All lumber used in pallet construction is to be treated and free of cracks or other defects that could result in failure in ZF NAS Facilities. I Pallet dimensions permitted to ZF NAS (all facilities) is 1000 x 1200 mm preferred, but there are 3 more sizes permitted for NAS facilities: Dimensions, mm (W L) Dimensions, in (W L) 1140 x x x x x 42 IV. All wood used in the construction of pallets is to be kiln-dried and pallets are to be marked and stamped according to ISPM#15 international spec. V. Pallets shall be: Hard wood made preferred Block Style pallet Always 4-way Block pallet preferred Perimeter based preferred Assure a minimum of 980 kg lift (or the one required by the load) Note: 2-way plywood or soft pallets are subject to be approved under packaging validation test report provided by the supplier. Test requirements according distribution cycle, and overall weight of load. Cracked or broken pallets are not allowable. B) Container Specifications I. All containers must be capable of withstanding the transportation environment and capable of handling and supporting their load to, and until emptied at ZF NAS Facilities. I IV. Corrugated made of double wall as minimum, is required. Triple wall is highly recommended. Mullen burst or ECT grade has to be selected to attain a minimum level of crush resistance that relates to good stacking strength in the finished box, must retain and protect its contents during both manual and mechanical handling For handling corrugated containers, regular slotted container type (RSC) is required. Carton sizes are to be modular to the pallet so as not to waste any space. V. Inner cartons are to be modular to the bulk container. VI. Cartons may have a stitched or glued manufacturer s joint, as minimum of 1 ¼ in

15 Page: 15 of 24 V VI IX. Bulk containers are recommended as over packs (sleeve). Corrugated used in over packs should be made of double or triple wall. Under no circumstances will wooden crates, wooden boxes, or the like be used as a substitute for corrugate based packaging; however, it is not limited and will be considered, as long as the nature of the good, the origin point and distribution cycle might require. Interior packaging materials should provide adequate protection based on the fragility of package contents and be of sufficient strength to maintain any required clearance between contents and all six-container walls (top, bottom, and four sides), and also to prevent contents from puncturing through the container walls. All materials used should be readily recyclable. X. Containers will be packed to eliminate any void within the container and to optimize package density. XI. X Single carton shipments shall have an integrated to a pallet, but if occasional good are freight package Other shipping containers: Bundled shipments should be adequately compressed and reinforced to contain the contents within the bundle. Unitized packages should be adequately bundled together and secured to a pallet or other platform which can be handled with a forklift or pallet jack to prevent shifting and movement during loading, unloading, sorting, and transportation activities. C) Approved Pallet and Carton Sizes for International Suppliers I. Cartons must be modular to the pallet. Due to the conditions of ocean transportation over packs are strongly recommended. The height of the overall pallet with cartons should not exceed 980 mm. D) Dimensional and Load Limits I. Palletized loads will not exceed 1000 mm x 1200 mm x 980 mm. I Gross weight of palletized loads will not exceed 800 kg. (1,764 Pounds). Individual cartons will not exceed 14 kg. (30.8 Pounds). E) Palletizing I. Loads shall be adequately closed, reinforced and provide the desired level of protection from the normal hazards of distribution I Banding will not be less than 12 mm in width. Banding shall not interfere with the barcode readability. Loads must be stretch wrapped using plastic banding. Four bands, two in each direction should be applied. This is a must comply requirement. (See Exhibit 3).

16 Page: 16 of 24 IV. Containers will be within the perimeter of the pallet. That is, the container will never overhang the pallet. V. Four (4) Edge or corner protectors shall be used to protect the container and the contents. Eight (8) may be required to insure the correct alignment. VI. V VI IX. All containers shall be capable of withstanding the transportation environment and capable of handling and supporting their load to, and until emptied at, ZF NAS Facilities. Containers shall arrive in satisfactory condition at the point of use. If releases do not result in full, flush pallet surfaces please bring this to the attention of your receiving ZF NAS Facilities packaging and materials group. When necessary, uniform packages containing different part numbers may be packed on a common pallet provided a mixed load label is used. Palletized loads shall have flush upper surfaces suitable for stacking (one floor + one level) for dynamic and static load. Pyramid stacking is not allowed, interlock stacking is allowable if sacking capacity is not compromised. (See Exhibit 4). If load can t be stackable, and upon plant approval, it shall be identified as non-stackable X. When enclosing several items within a freight package system, special care should be taken to protect them from contact with each other as well as external forces. Heavy freight items should not be packaged with fragile items unless extreme care is taken to separate these items from each other. F) Preparation for Shipment I. Ocean transport is subject to a harsher environment than over the road transportation the ship and its cargo can be subject to forces not typically experienced in over the road transportation. Ocean transportation can subject its freight to a very corrosive environment. Metal components may require: i. Physical corrosion protection: Transport packaging in the form of PE-bag usually in combination with desiccants Aluminium foil in combination with desiccants Vacuum packaging ii. Chemical corrosion protection Oils and fluids Acids and bases Washing emulsions Volatile Corrosive Inhibitor (VCI films, VCI papers, VCI cardboards etc.) Varnishing Zinc coating Synthetic coating Protective gases (oxygen scavenging and ethylene absorbing)

17 Page: 17 of 24 I ZF NAS Facilities expects that its global suppliers be cognizant of the forces of ocean transportation and package and prepare their shipments accordingly such that their product will be received at our facilities in perfect condition Labeling. Each container either if they are single, handling, bulk, internal or external, shall be properly labeled according our Labeling Standards document (WA.D20.001), posted in the Vendor Information Network (VIN) 11. PACKAGING PROBLEM REPORTING AND DEBATING PROCESS I. When production parts are delivered in packages, which do not correspond to this Packaging Guidelines or Packaging Instruction, the supplier will be informed by and trough VIN according the Global Supplier Quality Manual (GSQM) with a QCCAR or DCCAR number. Those will remain opened until the issue reported is solved and upon the ZF representative validates the correct implementation The process then mandates that the supplier responds with a problem resolution plan (8D s). The problem reporting and resolution process closes when ZF NAS Packaging contact verifies and agrees with supplier s response and evidence.

18 Page: 18 of DEFINITIONS Bulk container: A moderate to large container in which large quantities of a commodity/parts can be transported. (i.e. knockdown container). Collapsible container: A container which when empty, may be collapsed (broken down) or folded without disassembling its components parts. Container Identification: The means by which containers are identified or coded either visually, numerically, or alpha numerically. Container System: The aggregate of components which containers and protects parts during handling, transportation, and storage. (i.e., totes, pallets, caps, dunnage, etc.). Gross Weight: Total weight of container and its components. Knockdown Container (KD): A container which, when empty, can be broken down by disassembling its component parts. Modular container: A subset of a footprint. In a palletized load, those smaller containers which, when fitted together, form a unit load (i.e., tote). Nestable Container: A container which fits compactly within a second container of the same type. Package: The smallest shippable unit, a box, tote or container on a pallet. Returnable Container: A reusable container, which by design and function, permit it to be used more than once. Unit Load: The composite of pallet, totes, dunnage, top enclosure, and components making a single skid load. Tare Weight: Weight of the container and dunnage only. Stackable Container: A container or container system having features which allow each container to support another independent of the contents therein. Validation: Testing process followed with the intention to verify and confirm that the packaging design proposed will assure the integrity of the parts being shipped to ZF NAS Facilities

19 Page: 19 of 24 Exhibit 1: Supplier Packaging Proposal Form QE310-R Complete all sections following the filling instructions provided in the form. 2. Name the.xls file as: ZF part number SPPF. Example: A SPPF.xls 3. Send the form in the original.xls format to your ZF NAS Packaging contact. The next image is an example of the correct filling of the format Supplier Packing Proposal Form

20 Page: 20 of 24 Exhibit 2: Four-way Entry Full Perimeter Base Pallets 32 x 30 Pallet

21 Page: 21 of 24 Exhibit 3: Palletized Load, Strapped for Shipment Strapping 50 Maximum palletized dimensions are 48 x 45 x 50

22 Page: 22 of 24 Exhibit 4: Examples of Properly Palletized Loads ACCEPTABLE PALLETIZED LOADS UNACCEPTABLE PALLETIZED LOADS

23 Page: 23 of 24 Pyramid stacking is not allowed. Examples of layout to complete last layer Full Box Full Box Full Box Full Box Full Box Full Box Full Box Full Box Full Box Full Box Full Box Full Box

24 Page: 24 of Change History REVISION DATE CHANGE Revised by: 0 07/12/2016 Initial release Lorena Figueroa Delbert Kane, David Rosas 1 07/15/2016 Logo change Lorena Figueroa Juan Carlos Meade 2 04/10/2017 Overseas requirements changed for pallet size 3 08/07/2017 Logo change Supplier Packaging Proposal Form update Packaging validation and test report required Lorena Figueroa Lorena Figueroa Juan Carlos Meade Juan Carlos Meade