Supplier Development

Manual

Supplier Development Guide

April 30, 2015

Revision 5

1.0Quality Policy

“Key Plastics, North America is committed to comply with our customers’ requirements while fostering a constant air of continuous improvement. This commitment is supported by the provision to supply and expend the resources required to ensure customer satisfaction while fulfilling the needs of our employees, shareholders, and suppliers.

1.1Introduction

The purpose of this manual is to establish a clear understanding of Key Plastics requirements regarding supplier product quality and reliability. This manual has been developed by utilizing the intent, and in some cases the language of ISO 9001 / TS 16949 and/or VDA. It is the intention of Key Plastics to follow the lead and direction of our customer base in embracing the quality philosophies and practices contained in ISO 9001, ISO/TS 16949 and/or VDA expect that our supply base will do the same.

Engineering, quality and purchasing professionals from Key Plastics collaboratively worked to develop this document. If you find yourself in need of help in interpreting the requirements of this document, please discuss with your purchasing contact at:

Key Plastics L.L.C.

19575 Victor Parkway

Suite 400

Livonia, MI 48152

Phone: 248.449.6100

1.2Purpose

This manual defines the quality guidelines to be used by all suppliers to Key Plastics, LLC. It describes the minimum quality assurance requirements for all supplier production materials whether directly provided by the supplier or indirectly provided through a sub-supplier.

The requirements defined in this manual are provided as a supplement to, and do not replace or alter other terms and conditions set forth in purchasing documents or included as requirements of engineering drawings or specifications. Acceptance of this agreement is recognized with the receipt of a Key Plastics, LLC Purchase Order.

1.3Reference documents

The following documents are available through AIAG ( and shall be used to develop the quality system. At all times the most recent version of each of the below documents is to be used:

  • Production Part Approval Process
  • Statistical Process Control
  • Potential Failure Modes Effects and Analysis
  • Measurement Systems Analysis
  • Advanced Product Quality Planning
  • MMOG

2.0 QUALITY SYSTEM REQUIREMENTS

2.1QUALITY MANUAL

The quality policy and management system shall be documented in an accessible form, such as a quality manual or series of manuals that is updated at appropriate intervals.

  • A quality policy that reflects both the philosophy and goals of the supplier and the commitment of management to attain these goals.
  • A current organizational chart indicating the reporting relationship of the quality assurance personnel, including the management level employee designated to have the responsibility and authority for ensuring that the quality policy is implemented, effectively documented and carried out.
  • A description of the quality system procedures and documents used to monitor and evaluate the process.
  • A revision section documenting amendments to the quality system and manual.
  • A table of contents indicating page numbers of the manual on which specific areas are discussed.

2.2QUALITY COSTS

Suppliers are required to establish and maintain a documented system of tracking cost of poor quality.

2.3QUALITY PLANNING

Suppliers must establish and implement an advanced product quality planning process that utilizes internal cross-functional teams. These teams should use appropriate techniques identified in the Advanced Product Quality Planning and Control Plan reference manual and the Potential Failure Mode and Effects reference manual.

The supplier must give consideration to the following activities, as appropriate, in meeting the specified requirements for products, projects or contracts:

  • The preparation of Control Plans.
  • The identification and acquisition of any controls, processes, equipment, fixtures, resources and skills that may be needed to achieve the required quality.
  • Ensuring the compatibility of the design, production process, inspection and test procedures and the applicable documentation.
  • The updating, as necessary, of quality control, inspection and testing techniques or equipment.
  • The identification of any measurement requirement that exceeds the supplier’s current capability, in sufficient time for the capability to be developed.
  • The identification of suitable verification at appropriate stages in the manufacture of the product.
  • The clarification of standards of acceptability for all features and requirements, including those, which contain a subjective element.
  • The identification and preparation of appropriate quality records.
  • The development and review of FMEA’s
  • The development or finalization of special characteristics.
  • The establishment of actions to reduce the potential failure modes with high-risk priority numbers.

2.4Contract Review

  • The supplier must establish and maintain documented procedures for the review of contracts and/or contract amendments.

2.5Design Control

(Applicable only where design responsibility is a requirement of the contract)

The supplier must establish and maintain documented procedures to control and verify the design of the product to ensure that the specified requirements are met. The supplier’s design activity must be qualified in the following skills as appropriate:

  • Geometric Dimensioning and Tolerancing (GD&T)
  • Quality Function Deployment (QFD)
  • Design for Manufacturing (DFM) and Design for Assembly (DFA)
  • Value Engineering (VE)
  • Design of Experiments (DOE)
  • Failure Mode and Effects Analysis (FMEA)
  • Finite Element Analysis (FEA)
  • Solid Modeling
  • Simulation techniques
  • Computer Aided Design (CAD) and Computer Aided Engineering (CAE)
  • Reliability Engineering Plans

Organizational and technical interfaces between different groups with input to the design process must be defined and the necessary information documented, transmitted and regularly reviewed. Design reviews must be documented.

2.5.1Design Input Requirements

Design input requirements relating to the product, including applicable statutory and regulatory requirements, must be identified, documented and their selection reviewed by the supplier for adequacy.

2.5.2Design Output Requirements

Design output must be documented and expressed in terms that can be verified and validated against design input requirements. The design output must:

  • Meet the design input requirements.
  • Contain or reference acceptance criteria.
  • Identify those characteristics of the design that are crucial to the safe and proper functioning of the product (e.g., operating, storage, handling, maintenance and disposal requirements)

Design output documents must be reviewed prior to design release.

2.6Document Control

The supplier must establish and maintain (change control) documented procedures to control and approve for use all documents of internal and external origin.

2.7Purchasing and Sub-Supplier Control

Suppliers are required to establish and maintain documented procedures to ensure that purchased product and materials conform to specified requirements. Only Key Plastics purchasing department is authorized to make purchase commitments on behalf of Key Plastics. Key Plastics corporate engineering staff or plant personnel are not authorized to instruct suppliers to proceed with new work or changes to existing orders. Instruction to suppliers for billable work will only come from the Corporate Purchasing department. Any supplier work done without a purchase order and prior approval from Corporate Purchasing will not be paid.

2.7.1Subcontractor Evaluation, Approval and Development

The supplier is required to evaluate, approve and develop subcontractors based on their ability to meet the product requirements including the quality system and any specific quality assurance requirements. It is left to the discretion of the supplier to define the type and extent of control exercised over subcontractors, depending on the type of product, the impact of the subcontracted product on the quality of the final product and, where applicable, on the quality audit reports and/or quality records of the previously demonstrated capability and performance of sub-contractors. Assessments of subcontractors should occur at an appropriate supplier-specified frequency. The supplier will recognize sub-contractor assessments to ISO 9001, TS 16949 and/or VDA by Key Plastics, an approved OEM second party, or an accredited third party registrar in lieu of audits. Suppliers are further required to establish and maintain quality records of acceptable subcontractors.

All suppliers to Key Plastics are required to be third-party registered to ISO/TS 16949. Registration to ISO 9001 along with the capability of applying the AIAG Core Tools (FMEA, APQP, Control Plan, etc.) is considered equivalent to ISO/TS 16949. All existing suppliers that are not ISO/TS 16949 certified will be placed on New Business Hold and will not sourced future business unless directed by Key Plastics’ customer.

It is the organization’s responsibility to ensure Key Plastics Corporate Purchasing has a copy of the current quality certificate at all times.

For further details regarding the Key Plastics purchasing process, please see the most recent version of the Terms and Conditions located at

Key Plastics reserves the right to audit the organization’s sub-suppliers.

2.8Product Identification and Traceability

The supplier must establish and maintain documented procedures to provide for the identification of Key Plastics parts and assemblies from receipt of raw material to delivery to Key Plastics.

2.9Control of Key Plastics Supplied Product

The supplier must establish and maintain documented procedures for the control of verification, storage and maintenance of Key Plastics supplied product provided for incorporation into the product or for related activities. Any such product that is lost, damaged or is otherwise unusable must be recorded and reported to Key Plastics.

2.10Preliminary Process Capability Requirements

Preliminary process capability studies are required for each supplier or Key Plastics designated special characteristic for new processes.

2.11Process Monitoring and Operator Instructions

The supplier must prepare documented process monitoring and operator instructions for all employees having responsibilities for operation of processes.

2.12Ongoing Process Performance Requirements

Ongoing process performance requirements are defined by Key Plastics. If no such drawing specific requirements are established, the following default values apply: For stable processes and normally distributed data, the target is Cpk > 1.67 for chronically unstable processes with output meeting specifications and a predictable pattern, the target is Ppk > 1.67. If applicable, a supplier’s corrective action plan must then be completed indicating specific timing and assigned responsibilities to assure that the process becomes stable and capable.

2.13Verification of Job Set-Up (First / Last Pieces Inspection)

Job set-ups must be verified as producing parts that meet all requirements.

2.14Government Safety and Environmental Regulations

A supplier must have a process to ensure compliance with all applicable government safety and environmental regulations, including those concerning handling, recycling, eliminating or disposing of hazardous materials.

2.15Preventative and Predictive Maintenance

Suppliers must identify key process equipment and provide appropriate resources for machine equipment maintenance and develop an effective planned total preventative maintenance system. At a minimum this system must include:

  • A procedure that describes planned maintenance activities.
  • Scheduled maintenance activities.
  • Predictive maintenance methods.

2.16Inspection and Testing

The supplier must establish and maintain documented procedures for inspection and testing activities in order to verify that the specified requirements for the product are met. The required inspection and testing, and the records to be established, must be detailed in the control plan or documented procedures.

2.16.1Receiving Inspection and Testing

The supplier must ensure that incoming product is not used or processed until it has been inspected or otherwise verified as conforming to specified requirements.

2.16.2In-process Inspection and Testing

The supplier must inspect and test the product as required by the control plan and/or documented procedures.

2.16.3Final Inspection and Testing

The supplier must carry out all final inspection and testing in accordance with the control plan and/or documented procedures to complete the evidence of the finished product to the specified requirements.

2.16.4Layout Inspection and Functional Testing

A full layout of all print dimensions shall be performed on an annual basis. All cavities shall have one sample each with layout data. The results of this inspection are to be submitted on an annual basis, along with a new warrant, to the Quality Manager or designate assigned by Plant Manager at each Key Plastics plant that consumes the part number. Results must be available to Key Plastics for verification upon request.

2.16.5Inspection and Test Records

The supplier must establish and maintain records, which provide evidence that the product has been inspected and/or tested.

2.17Control of Inspection, Measuring and Test Equipment

The supplier must establish and maintain documented procedures to control, calibrate and maintain inspection, measuring and test equipment used by the supplier to demonstrate the conformance of product to the specified requirements.

2.18 Measurement System Analysis

Evidence is required that appropriate statistical studies have been conducted to analyze the variation present in the results of each type of measuring and test equipment system.

2.19Inspection and Test Status

The inspection and test status of product must be identified by a suitable means, which indicates the conformance or nonconformance of product with regard to inspections and tests performed.

2.20Control of Nonconforming Product

It is the responsibility of each supplier to Key Plastics to supply parts that comply with all print requirements. The supplier must establish and maintain documented procedures to ensure that product that is either suspect or does not conform to specified requirements is prevented from unintended use. If any parts are found by Key Plastics, customers plant or in warranty that do not comply with all requirements, the organization shall initiate and track to completion a corrective action plan and Key Plastics manufacturing will start the Supplier Quality Concern Notice (SQCN) Process. If a part is supplied to more than one Key Plastics facility, it is the responsibility of the organization to notify each facility of the potential issue within one business day.

The responsibility for review and authority for the disposition of non-conforming product must be defined. Disposition may include:

  • Reworked to meet the specification.
  • Accepted with or without repair by concession.
  • Scrapped.

The proposed use or repair of product, which does not conform to specified requirements, must be reported to Key Plastics for concession. The description of nonconformity that has been accepted, and of repairs (if any), must be recorded to denote the actual condition. The supplier must also maintain a record of the quantities authorized or the expiration date of the concession. The supplier must also ensure compliance with the original or superseding specifications and requirements when the authorization expires. Material shipped on an authorization must be properly identified on each shipping container. Repaired and /or reworked product must be re-inspected in accordance with the control plan.

All costs associated with non-conforming product are solely the responsibility of the supplier per the Key Plastics Charge back schedule (See table below):

SUPPLIER CHARGE BACK SCHEDULE
ITEM / COST (USD)
Admin Fee (Separate Issue) / $ 50 per issue
Admin Fee (Repetitive Issue) / $ 100 per issue
Sort / Rework / Material Handling / $ 30 per hour
Rework / Sorting
(3rd Party) / $ 100 per day
Overtime charges due to hours worked as a result of Non-Conforming material required to meet Customer releases / $ 25 per hour (Double on Weekend and Holidays) in addition to the basic rate of $ 30
Late PPAP / $ 150 per occurrence
Rejected PPAP / $ 150 per occurrence
Review and Disposition of Accumulative Non-Conforming materials / $ 150 per month (Additional to the cost of material)
Downtime due to material shortages / Actual Cost
Premium Freight / Actual Cost
Costs incurrent as Key Plastics customers due to a supplier issue / Actual Cost
Additional costs (Traveling, Supplies, etc.) / Actual Cost

2.21Corrective and Preventative Action

The supplier must establish and maintain documented procedures for implementing corrective and preventative action.

2.22Handling, Storage, Packaging, Preservation and Delivery

The supplier must establish and maintain documented procedures for handling, storage, packaging, preservation and delivery of product to Key Plastics.

2.22.1Handling

The supplier must provide methods of handling product that prevent damage or deterioration.

2.22.2Storage

The supplier must use designated storage areas to prevent damage or deterioration of product, pending use or delivery.

2.22.3Packaging

The supplier must control packing, packaging and marking processes to the extent necessary to ensure conformance to specified requirements.

2.22.4Preservation

The supplier must apply appropriate methods for the preservation and segregation of the product when the product is under the supplier’s control by arranging for the protection of the quality of the product after final inspection and test. Where contractually specified, this protection must be extended to include delivery to Key Plastics.

2.22.5Delivery

The supplier must establish a goal of 100% on time shipments to meet Key Plastics production and service requirements. If this goal is not met, the supplier must implement a system to improve delivery performance, including communication of delivery problem information to Key Plastics.

2.23Control of Quality Records

Tooling records, purchase orders and amendments shall be maintained for the length of the time that the part (or family of parts) is active plus one year. A part is to be considered “active” so long as Key Plastics orders 100 or more pieces in the course of a given calendar year.

The following records are to be maintained for one calendar year after the year of creation: lot traceability, production inspection, test records and all control charts (if applicable). If the product supplied to Key Plastics is deemed a safety item (or part of an assembled safety item) for Key Plastics’ customer, the above-mentioned records shall be maintained for 25 years after the year in which they were created

2.24Internal Quality Audits

The supplier must establish and maintain documented procedures for planning and implementing internal quality audits to verify whether quality activities and related results comply with planned arrangements and to determine the effectiveness of the quality system.