Betim, July 27 th, 2012. CUSTOMER SPECIFIC REQUIREMENTS FOR ISO/TS 16949 APPLICABLE TO FIASA/POWERTRAIN SUPPLIERS Updates and replaces, from 08/06/2012, the "LETTER OF SPECIFIC REQUIREMENTS" from FIASA / Powertrain dated 03/25/2011. The correlation between the requirements of this letter and ISO / TS 16949 is indicated after each item. Texts, tools, standards or forms that were changed or added are highlighted with a sidebar on the left. This statement is just a reference, because all the requirements must be analyzed and implemented by suppliers. This letter, and the annexes, including the document FAQs (Frequently Asked Questions) can be accessed at FIAT Portal FGPS (http://www.fgps.com.br) and the IAOB website (http://www.iatfglobaloversight.org). The supplier is responsible for updating the versions before use. All standards and technical specifications FIAT contained in this letter are available at FIAT Portal FGPS, link Orange. The supplier has the responsibility to keep updated all FIASA / Powertrain standards applicable to their products, processes and quality management systems. FIASA / Powertrain uses the APQP Management FIAT for yours developments and will accept, when necessary, the AIAG manuals (APQP, SPC, MSA, PPAP, FMEA). In case of Powertrain these manuals are mandatory. All FIASA / Powertrain suppliers must have their Quality Management System (QMS) certified by a 3rd part certification body according to ISO/TS16949. FIASA / Powertrain have no general list of approved sub-suppliers. The choice of sub-suppliers is a supplier responsibility, except when the sub-supplier is specified by FIASA / Powertrain. For raw materials suppliers, provided procedures mentioned on item 1 of this letter are not applicable, except to FIAT 08018 Standards, 9.01102 and 9.01107 1) Additional procedures (ISO/TS 16949, it. 4.2.3) 1.1) Applicable standards Specification FIAT 9.01102 (Suppliers Quality); Specification FIAT 07171 (Containments Tools) Standard FIAT 07471 (Provisions Qualification) 1.2) Common procedures and forms between FIASA and Powertrain Test plan Annex 1; Features for development, modification and maintenance of tooling Annex 3 Waivers approval Annex 4; Program Review Annex 5; PA Process Audit (PCPA) Annex 6; PDR Production Demonstration Run (1DP) Annex 7; QSB Manual and Checklist Annex 8; Development schedule - Annex 9; Master Dot Annex 10; Management Report Annex 11; Procedure CSL_NBH FGP 16 Annex 12 Pág. 1 / 6
FIAT Management APQP Strategies Annex 13 FAQs, rev. 04 - Frequently asked questions about specific requirements FIASA / Powertrain - Annex 14 Human Skill Annex 21 Check List Shut Down Start up Annex 23 1.3) FIASA specific procedures and forms Certificate of Quality and Compliance (CQC) Annex 2 Test report Annex 15 Cover of Certificate of Prototype Quality and Compliance Annex 16 Deviations Management Procedure Annex 17 Manual of export packing FIASA - Annex 22 1.4) Powertrain specific procedures and forms Deviations Management Procedure Annex 17 Customer Requirement (CR-001, CR-003 to CR-005) Annex 18 Key Characteristics Definition System KCDS FPT.IFN053 Annex 19 Approval Process of Externally Purchased Production Products FPT.IFP059 Annex 20 2) Features for development, changes and preservation of tools (ISO/TS 16949, it. 7.5.4.1) Criteria for development, changes and preservation of tools are available to the supplier park of FIASA/Powertrain through commodatum contract, they must according to the requirements set out in Annex 3 (stamping and plastic injection molds). 3) Process of products approval (ISO/TS 16949, it. 7.3.6.3) The supplier must use the development process of parts, according to FIAT Standard 07740 and Program Review (annex 5). The process during sample production phase must be evaluated according to the PA (annex 6) and if there are items with Report characteristics, they must also be evaluated according to Management REPORT (annex 11) The samples delivered to FIASA must be followed by a Certificate of Quality and Conformance CQC (annex 2) and associated documentation according to FIAT specification 9.01103. The samples delivered to Powertrain must be followed to PSW and associated documentation according to PFT.IFP059 standard (annex 20). All products supplied to FIASA/Powertrain must be duly approved by customer. Exceptions must also be approved according to the Deviations Management procedure (annex 17 - FIASA). Extensions of self-qualification, when applicable, must be previously arranged and approved by the FIAT/Powertrain SQE analyst, at the moment of the Test Plan approval. Supplier must enter the data related to all products sent to FIASA/Powertrain in MDS system, according to the specification 9.01107 and PPAP Manual (AIAG). Such information must be included in the PPAP Book for Powertrain and in the CQC for FIASA. Only Test Plans will be submitted by supplier for the FIASA/Powertrain approval through SQE Analyst. Control Plan; FMEA; dimensional, materials and test reports are validated during CQC (FIASA) and PPAP (Powertrain) approval. Suppliers must use the Production Parts Approval Process (AIAG PPAP Manual latest edition) for all subcontractors of direct material, level 5, for parts approval. The decision about the application of PPAP on Pág. 2 / 6
raw material, indirect material and bulk material subcontractors (except fasteners and associated parts) is the supplier itself. Supplier must have all part numbers management (in practice and in development), including the history showing all changes implemented and under implementation, and their respective final (CCQ or PSW) or interim (deviation or IRW) approval record by FIASA/Powertrain. A listing with this information must be available and sent monthly to SQE in charge, highlighting the changes from the last version submitted. The suppliers must complete / implement the Check List Shut Down / Start-up - Annex 23, in cases of prolonged stop lines, return Collective holidays, even if it will keep all their productive activities, as specification FIAT 07171. 4) Requalification - FIASA / Re-submission PPAP - Powertrain (ISO/TS 16949, it. 8.2.4) System / product self-qualification, including sub-components, must be done within 2 years frequency, unless otherwise agreed with the SQE, and the results must be presented for review and approval. Lay out inspection (dimensional check) and raw material inspection must be done at least once a year. 5) Customer Quality Problems Special Notifications (ISO/TS 16949, it. 8.2.1.1) The Supplier must notify its respective Certification Body within 5 working days if there are quality issues pointed in BID LIST: Supplier in NBH (New Business Hold); Supplier with Controlled Shipping Level 2 open; Supplier with Controlled Shipping Level 1 open which exceeds 90 days; Supplier with the responsibility on Recall or field interventions. Supplier with QSB certification suspended or canceled by FIAT/Powertrain. 5.1) Process and product changes previously approved by FIASA/Powertrain Suppliers and sub-suppliers must not perform any unauthorized changes on the product, process, raw material source and tooling used for production which has already the FIASA/Powertrain approval. Any intention to product and process changes, throughout the supply chain must be informed prior to the SQE. In breach of this requirement, supplier must inform its respective Certification Body within 5 working days. All the communications to the Certification Body regarding to 5 and 5.1 must be sent also for the SQE. 6) Report Characteristics (ISO/TS 16949, it. 7.3.2.3) The Supplier must conduct an audit in the production processes of products with characteristic (s) Report pilot batch (Qualifying Product.) These audits must be performed by a Qualified Auditor and have a frequency half-yearly or immediately after any customer complaint or significant process variations, as Management Report (Annex 11) A list containing all Report characteristics defined in the drawings and FIASA/Powertrain standards, as well as its division into supplier components characteristics, materials, etc., must be available and updated according to annex 11. Audits must consider requirements and criteria of Report Management Checklist score and be registered as annex 11. Corrective actions of these audits must be entered and continuously updated on the observations worksheet from of the same annex. Audit results, Report characteristics list and action plans must be submitted to respective FIASA/Powertrain SQE each six months and/or with each updating. Supplier can use its own symbolism for special characteristics identification. However, a table of correlation must be established in the supplier documentation system. Pág. 3 / 6
Supplier must extend the same management criteria to their suppliers that have safety characteristics. For Powertrain, complied with the above provisions, you must still consider the procedure FPT.IFN053 See Annex 19 Key Characteristics Designation System KCDS. 7) Specials Processes (ISO/TS16949, it. 7.5.2 e 8.2.2.2) The Supplier must perform process audits with a minimum frequency each six months in all the special processes. At a minimum, must be considered special processes: heat treat, plating, coating, soldering and welding. Immediately after any customer complaint linked to special processes, the audit must also be performed, focusing on items and processes related to the complaint. The Master Dot with the results of audits of special processes (checklist / audit guide used) must be submitted by email to the analyst respective FIASA / Powertrain each update. 7.1) Requirements to be audited The Audits must consider technological aspects (reply to specific technical requirements of each type of process) and management aspects (management requirements common to all special processes). At a minimum, must be audited the conformity in relation to tables parameterization and monitoring of processes validated during the development of product/process. Also must be audited management requirements common to all special processes: Must have an employee with specific knowledge in the process; Procedures clearly defining what can be or not reworked, how and when the material was reworked; Contingency plans for equipment failures, including lack of energy, as well as training of operators in these plans; Training of those involved in the basic aim of processes, including consequences of failure and the importance of process controls; Order and cleanliness, safety, care with environment, cleaning containers, segregation restricted nonconforming items, clear identification of the specific stage of the product and special care with products remaining in equipment and processes, especially those continuous; Regular review of process and products for the prevention of failures. The special processes performed in the automotive supply chain outside the Tier 1, must meet the same requirements to the supplier. The supplier can be evaluate the result of requirements with the supply chain, plan and implement an action plan with all requirements not met. This plan must include actions to improve the chain (prevention at source) and containment actions within the supplier. It is recommended to use the manuals the evaluation of special processes AIAG: CQI 9 = Heat treat system; CQI 11 = Plating system; CQI 12 = Coating system; CQI 15 = Welding system; CQI 17 = Soldering system. 8) Management Review (ISO/TS 16949, it. 5.6) Supplier Management must carry out monthly reviews, which include at least: Quality Performance Results (BID LIST, Quality 9Pack and Service 6Pack); Non-quality costs, including scraps, reworks, containment actions, special freight, customer downtimes due to quality problems (internal failures), customer and warranty returns, including fines and penalties imposed by FIASA/Powertrain; Result of the Report Characteristics Management Audit; Result of QSB Audit and Human Skill Audit; Special notifications to certification body provided according to item 5 of this letter; Product approval process status (item 3 of this letter) related to meeting deadlines previously established by FIASA/Powertrain. Pág. 4 / 6
Final results of this monthly analysis must be a management strategic Master Dot (Annex 10) action plan and be available when requested by the SQE and the third part certification body. 9) QSB (Quality System Basics) Supplier must be certified in the QSB (annex 8), with one leader auditor trained and approved by a company approved by FIASA/Powertrain. Supplier must implement the requirements of QSB Manual (Annex 8) and have to achieve results that demonstrate the fulfillment of each key strategy. The QSB must be applied to all production processes used to manufacture products supplied to FIASA/Powertrain, being integrated into the quality management system of the organization. The supplier must maintain compliance with the requirements of QSB, doing internal audits conducted by a FIAT QSB leader auditor and recorded on the check list (annex 8). Minimum frequency requirement is six months. The Corrective actions of these audits must be entered and continuously updated in Master Dot (Annex 10). The Master Dot and the results of the audits must be submitted to SQE each updated and each management review. To keep the QSB certification is needed have a good Quality performance assessed by FIASA/Powertrain. (ex.: BID LIST, 9Pack of quality, 6P of service, etc.) and to have the self-evaluation approved each 6 months. 10) Methodologies for new developments management (Ref. ISO/TS 16949 it. 7.3.4.1) Program Review FIAT methodologies (Annex 05), PA (Annex 06) and PDR (Annex 07), must be used by the supplier to continuously monitor new products development. An action plan for each pending (open issues) must be established and agreed with the SQE. Supplier must have a Program Manager for any development that ensures the application of FIAT Methodologies and ensures at least the application of the FIAT Management APQP Strategies (annex 13), considering the consistent integration with the 07740 (FIASA) and FTP.IFP059 (Powertrain) standards requirements Annex 20. 11) World Class Manufacturing It is recommended the adoption of a production system that aims at systematic identification of losses and waste in the production and disposal of them by carrying out improvement projects (e.g. PDCA/Kaizen) according to the best practices worldwide. 12) Field Problem Management (Ref. ISO/TS 16949 it. 8.5.2.4) Supplier must review parts returned from field according to requirements of SCP (Parts Control System) website: https://scp.fiat.com.br. ECA (Effect, Cause and Action) report must be used via web, containing the corrective actions deployed to eliminate each failure occurred, as well as the management of their cut-off points. 13) Human Skill Supplier must carry out self-assessment of Human Skill (annex 21) each six months and submit the results to SQE analyst. Pág. 5 / 6
14) Use of commercial / external testing laboratory and calibration services. (Ref. ISO/TS 16949 it. 7.6.3.2) Supplier must use testing and calibration laboratories belonging to RBLE (Brazilian Network of Testing Laboratories) and RBC (Brazilian Network of Calibration) and / or that are certified by ISO / IEC 17025. 15) Bulk material Suppliers must use the Production Parts Approval Process (PPAP Manual of AIAG last edited) for bulk products and the following processes are waived: Certificate of quality and compliance (CQC) Annex 2; Characteristics for tooling development, modification and maintenance Annex 3 Program Review Annex 5; PDR Production Demonstration Run Annex 7; QSB Manual and Checklist Annex 8; Cover of the certificate of prototype quality and conformity Annex 16; Deviation management procedure Annex 17; Lay-out inspection. 16) Waives Waives requested must be directed to the FIASA/Powertrain SQE as form (annex 4), supported by required documentation for technical analysis, as well as details for suitability requirement (action plan, due dates and responsible in charge). Waives will only be granted in compliance with the following criteria: Request with minimum antecedence of (01) a month from 3rd party audit of suppliers quality system. Waive maximum duration is 1 (one) year. Average time of analysis is 5 days, after received and validation of SQE. The waive analysis is done by the SQE, approved by the respective Supervisor and approved by the Business Process Supervisor. THE ITEMS PRESENTED IN THIS LETTER ARE VALID UNTIL THE SENDING OF A NEW LETTER TO FIASA/POWERTRAIN SUPPLIER PARK AND UPLOADED ON THE IATF SITE. Marco Aurélio Speziali Supplier Quality LATAM Purchasing FIAT CHRYSLER Pág. 6 / 6