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Global Supplier Quality Requirements Manual

For use with current editions of

IATF: 16949:2016 & ISO 9001:2015

Index

Global Corporate Supplier Quality Requirements Manual CSQRM Letter...... 4

Quality Management System...... 5

  1. Quality System Registration...... 5
  2. Required References...... 6
  3. Request for Quotation...... 6
  4. Pre-Award Survey...... 6
  5. Supplier Quality Assessments...... 6
  6. Transportation...... 7
  7. PPAP Requirements...... 7

A.Submission Criteria...... 7

B.Pre-Production Build Control………………………………………………….8

  1. Annual Part Verification/Validation...... 8
  2. Raw Material Certifications...... 9

A.Resin...... 9

B.Metals...... 9

C.Qualification of Personnel...... 10

D.IMDS...... 10

E.Suppliers of Special Processes...... 10

  1. Tooling...... 11
  2. Containment / Non-Conforming Material ...... 12

A.Corrective Action Requests...... 12

B.Preventive Action Requests...... 14

C.Escalation Process...... 14

D.Continual Improvement...... 14

  1. General...... 14
  2. Expectation-Improvement Factor...... 14
  1. Controlled Shipping...... 14
  2. Supplier Charge Back...... 15

A.General...... 15

B.Unauthorized Changes...... 15

C.Charge Back Debit...... 15

Material Requirements...... 16

  1. Material Management Operation Guideline (MMOG)...... 16
  2. Material Releasing and Authorization...... 16
  3. Just-In-Time (J.I.T.) Delivery...... 17
  4. Missed Shipments- Expedites...... 17
  5. Safety Stock & Change Responsiveness...... 17
  6. Supplier Bank Build Requirements...... 18
  7. Packaging/ Labeling...... 18

A.Labeling...... 18

B.Packaging...... 18

  1. Supplier Communication...... 19
  2. Contingency Plans...... 19

Supplier Performance and Development...... 19

  1. Review Frequency...... 19
  2. Parts Per Million...... 20
  3. Supplier Development...... 20

Warranty ……………………………………………………………………………………....21

Addendums

A FNG Check Fixture Standard - Design & Build Approval Checklist...... 22, 23

BCost Recovery...... 24

CExtended Material Authorization and Justification...... 25

DLabel Requirements Standard...... 26, 27

ESupplier Evaluation Record ...... 28

F.Supplier Escalation Process...... 29, 30

G.Discrepant Material Report (SQCN)...... 31, 32

HCS1 Letter & Supplier Confirmation Reply...... 33, 34

I.CS2 Letter & Supplier Confirmation & Reply...... 35, 36

J.CS2/1 ExitRequest-Letter...... 37

K.Corrective Action Form ...... 38

L.Supplier Change Notice Request ...... 39

M. Required Pre-Production Builds forms: First Off- Last Off

Pre-Production Identification Tag & Pre-Production Sheet……………….....40

Revision Table …………………………………………………………………………..41, 42

Dear Flex-n Gate Supplier,

Enclosed is the current release of Flex-N-Gate Global Supplier Quality Requirements Manual.

All Suppliers to Flex-N-Gate facilities are required to be third party registered to current edition of IATF: 16949:2016 or at a minimum of ISO 9001 and ISO 14001 in accordance with customer specific requirementsunless otherwise directed by our FNG Purchasing team with the approval of our customer. Starting October 2017 suppliers must have begun their transition from TS 16949 to IATF 16949: 2016 & ISO 9001: 2015. By September 14, 2018 transition must be complete when all TS 16949 certificates will no longer be valid.

If a supplier is sourced that does not have certification to the aforementioned requirements the supplier will be subject to heightened assessments and additional testing requirements not limited to certified 3rd party laboratories. For said suppliers the MAQMSR (Minimum Automotive Quality Management System Requirements) for Sub-Tier Suppliers is urged.

The revised manualalso addresses specifics for Flex-N-Gate and as such, compliance to all is required. Flex-N-Gate requires their suppliers to recognize the customer specific requirements as they apply of our customers that include but not limited to the following: Ford, General Motors, FCA, Audi, BMW, Volkswagen, Toyota, Peugeot, Renault and Nissan.

It is the supplier’s responsibility to ensure they are working with the most recent revision of the Global Supplier Quality Requirements Manual. Verification must be obtained by visiting the Flex-N-Gate website under Departments-Purchasing Codes and Terms. Please contact your Flex-N-Gate Buyer or plant Quality representativeshould you require additional clarification.

Regards,

Flex-N-Gate Purchasing

QUALITY MANAGEMENT SYSTEM

  1. Quality System Registration

This manual contains and defines the procedures and requirements that involve our suppliers and sub-suppliers. All suppliers are required, or as otherwise directed by our FNG Purchasing team to be third party registered to current edition IATF 16949: 2016 or at a minimum ISO 9001:2015 and ISO 14001(refer to current versions available through AIAG).All suppliers must meet the Quality System Requirements; including any applicable customer-specific requirements as documented in this manual(see Required Referencesbelow and Suppliersof Special Processes).

This manual applies to all suppliers (externally provided processes, products and services) that do business with Flex-N-Gate (referred to as FNG), globally. This manual does not alter or reduce any other contractual requirements covered by purchasing documents or requirements of engineering drawings or specifications. This manual describes the minimum requirements expected and is applicable to suppliers whether the products and/or services are provided directly or indirectly through sub-suppliers.

Potential suppliers who currently are not registered to a Quality standard; such as, small job shops, may be scheduled for a second or third party audit to assess compliance to the required standards. Suppliers who do not meet this criteria are required, or as otherwise directed by the FNG Purchasing team to begin the registration process to ISO/IATF 16949 current version immediately (refer to first paragraph above). The supplier must provide Flex-N-Gate Purchasing & the Flex-N-Gate Plant level Quality Manager with an action plan, for review and approval. The approved action plan must reflect detailed timing of the registration process. Please contact the specified Flex-N-Gate facility if this is applicable.

Where certification to Federal Regulations; such as, the Federal Motor Vehicle Safety Standards published under Public Law,are applicable; the supplier is required to certify compliance of the product with such standards prior to initial production shipments and as required thereafter. The written certification, with supporting test data, shall be directed to the Quality Manager, at the appropriate FNG facility, and is in addition to original compliance documentation.

Suppliers are responsible for ensuring that all materials and processes used in sale and manufacturing of products to FNGare in compliance with all Federal, State & Local requirements regarding environmental, toxic and hazardous waste, mechanical, electrical and electro-magnetic devices. This applies in the country of manufacture and sale.

Suppliers are required to upload all pertinent information relating to the material used in their product per IMDS and Reach Regulations30 days prior to PPAP (reference PPAP section).

  1. Required References

Suppliers are responsible for obtaining and maintaining copies of the latest revised/current versions of all associated and referenced publications in consideration to the receiving OEM, (copies of someapplicable publications can be obtained from the Automotive Industry Action Group) such as;

□Advanced Product Quality Planning (APQP)

□Statistical Process Control (SPC),

□Measurement System Analysis (MSA),

□Failure Mode and Effects Analysis (FMEA),

□Product Part Approval Process (PPAP),

□IATF 16949: 2016 and/orISO 9001: 2015 and ISO 14001 : 2015

□Customer-specific Requirements (available through the IATF website)

□Sanctioned Interpretations (available through the IATF website)

□FNG Facility-specific standards/specifications

□CQI-Special Process Assessments; i.e., Plating, Coating, Welding, Heat-Treat, etc. (seeSuppliers of Special Assessments)

At times, FNG facilities may reference industrial or international references that are required. These could be specifications, procedures, test methods, etc. that may have to be purchased by the supplier from third party document sources.

Additionally, all of our suppliers are required to obtain and adhere to customer specific requirements and assessment criteria via onsite or self-monitoring as defined in the scope of work. These can include: BIQS, QMS, PPA, CQI and any identified special process audits provided by the customer.

  1. Request for Quotation

Prior to award of any business, the supplier will be expected to complete the FNGRFQ with complete detailed cost breakdown. Should a discrepancy between the supplier’s layout and our layout occur, then our layout is to be followed.

  1. Pre-Award Survey

A Pre-Award Survey shall be completed with new suppliers under consideration for award of business. All potential suppliers must complete the initial Pre-Award survey and return to the respective FNG facility. Subsequent surveys and risk assessments may be conducted at FNG’s discretion.

  1. Supplier Quality Assessments

FNG will require suppliers to assist in conducting self-assessments(Supplier Quality Assessment) and/or audits to ensure the quality of the product or process being provided FNG.

Frequency and type of assessment will be dependent on supplier risk assessments that are conducted during the supplier selection process and/or during the APQP process. Key supplier performance indicators tracked by the receiving Flex-N-Gate plant will also determine frequency and type of assessment where potential for additional testing and inspection measurement can be required.

  1. Transportation

Along with the most current version of the FNG Global Supplier Quality Requirements Manual the Flex-n-Gate Companies Transportation Policy is posted on the Flex-n-Gate website under Departments- Purchasing Codes and Terms. This policy is published supplemental to the Terms and Conditions document, and is not intended to supersede any provisions thereof.

Suppliers are responsible to ensure that shipments are made in accordance with the current version of The FNG Companies Transportation Policy as of the date of shipment.

  1. PPAP Requirements

A.Submission Criteria

FNG requires a full PPAP submission unless otherwise detailed in the Purchase Order or specified and defined by the OEM. Level 3 is the default level for all PPAPs; however, the receiving FNG plant may require at its discretion a level 4 or 5 based upon priority and assessed risks. Any deviation to the Level III default will be provided to the supplier in writing.

PPAPs must conform to the latest final customer specific requirements (i.e. PPA for FCA). If the supplier is unaware of the final customer or the customer specific requirements, it is the responsibility of the supplier to contact the receiving FNG plant for clarification.

AIAG and AIAG International Initiatives provides manuals including PPAP, FMEA, Control Plans, MSA, etc. that may be used as reference for PPAP submissions. Customer Specific Requirements take precedent. It will be the responsibility of the supplier to ensure that the PPAP reflects the latest revision level of the controlled drawing used by FNG.

It is the responsibility of the supplier to adhere to and incorporate into their systems any appearance items, critical characteristics or special characteristicsas directed by either the OEM print or FNG to achieve overall customer satisfaction. Pass-through characteristics must be documented on the PFD, PFMEA and Control Plan and validated with adequate controls under the oversight of the FNG Plant. The supplier is responsible for providing resources and managing it’s sub-suppliers to ensure that appearance parts are provided to FNG for approval by FNG customers and in a timely manner. This applies to AAR submissions for initial PPAP approval, and any further AAR submissions required by FNG and its customers.

FNG requires early notification and consent from all suppliers prior to any process, product or material changes.Furthermore, the supplier shall ensure all sub-tier suppliers adhere to the same requirement resulting in full notification and approval from FNG. Refer to Addendum L in the back of this manualfor an approved Supplier Change Notice Request form.

It is the supplier’s responsibility to notify FNG and submit for part approval prior to the first production shipment. This applies to all situations identified in Table 3.1 and Table 3.2 of the current version of the AIAG PPAP Manual. In some cases, FNG may waive this requirement; when this happens, the supplier must review all items in the PPAP file and update them as necessary to reflect the current process.

Suppliers are expected to submit PPAP packages, in their entirety, to the appropriate plant Quality Manager or designee before the agreed-upon date unless otherwise detailed in the Purchase Order or specified and defined by the OEM. All PPAPs must contain a process flow format approved by the FNG receiving plant that clearly identifies all sub-tier components with all sub-tier supplier names and matching key contact information. Submitted PPAPs missing this information may result in rejecting PPAP. FNG will review the submission and give one of three statuses:

  1. Full approval indicates that the part or material meets all specifications and requirements. The supplier is authorized to ship product. Unless otherwise agreed on, supplier can only invoice for tooling when they achieve full PPAP approval.
  2. Interim approval permits shipment of production for production requirements on a limited time or piece quantity basis. The supplier must submit, at the time of PPAP, an action plan to address the issues preventing the PPAP from obtaining full approval.
  3. Rejected means, that the submission, does not meet the specifications and requirements. FNG will state the reasons the submission was rejected on the PPAP warrant and return the warrant to the supplier. A corrected PPAP must be submit and approved before the supplier can ship product.

Tier-2 suppliers are responsible for the PPAP submission and approval of subsequent tier suppliers. At a minimum your sub-tier suppliers shall meet the same PPAP requirements as FNG requires of their suppliers, detailed within. For initial PPAP, Tier-2 suppliers shall conduct an on-site Process Audit (or equivalent) at their sub tier that includes, but not limited to Control Plan compliance. The FNG supplier shall inform FNG of any non-conformance found during this audit. If the FNG receiving plant metrics indicate poor performance at the sub tier then the FNG supplier shall continue to conduct on-site Process Audits at a minimum annually.

Pre-Production Build Control

FNG plantsensure that all pre-production parts meet customer expectations. The supply base is critical to our success and must adhere to the Pre-Production Build Control Procedure (CQAP.00011) that will be communicated by the FNG receiving plant. This is required or as applicable with only documented exemptions given to select external service providers i.e. bulk material suppliers, trucking and logistics companies. This procedure outlines all the steps to be followed, including inspection, identification, and control of parts from external sources for pre-production builds. This will provide FNG with useful data, for parts built by our external service providers, in order to better understand the quality level of the parts and their influence in the end item assembly.

The Pre-Production Build, Walk-Through Procedure (CQAP.00009) shall also be communicated by the FNG receiving plant. This procedure will assist the supplier in understanding the Pre-Production Build Control Procedure by illustrating the usage of required documentation and product identification as found with CQAF.00024 First Off- Last Off, CQAF.00025 Pre-Production Identification Tag and CQAF.00026 Pre-Production Sheet (see Addendum M for example of forms).

All gauges owned by FNG must be built in accordance to Flex-N-Gate Check Fixture Standard (see AddendumAfor the link to the standard for the Design & Build Approval checklist).

All submissions, except annual revalidations, must include IMDS number and NAFTA Certificates (Certificate of Origin), as applicable. The NAFTA or Certificate of Origin must be supplied prior to shipping parts per PPAP Requirements.

All test results must be conducted by an accredited test facility. An internal laboratory facility shall have a defined scope that includes its capability to perform the required inspection, test or calibration services. This laboratory scope shall be included in the quality management system documentation. The laboratory shall meet the requirements as stated in 7.1.5.3 of the IATF current standard.

External/commercial/independent laboratory facilities used for inspection, test or calibration services shall have a defined laboratory scope that includes the capability to perform the required inspection, test or calibration, and either accredited to ISO/IEC 17025 or national equivalent or approval designated by the customer.

1)Annual Part Verification/Validation

Suppliers are to complete a layout for every year of production (Level 3 submission minimum or as specified by the plant PPAP requirements). This applies for all FNG released parts or components as detailed in customer-specific requirements. In addition to this layout, suppliers are responsible for retaining and supplying upon request documentation as listed below (as applicable to service or product being provided):

  • IATF 16949: 2016 and/or ISO 14001 or required Certificates (i.e. ISO 17025)
  • CQI Special Assessments including Tier Suppliers supporting FNG Programs
  • Self-Assessment (Supplier Quality Assessment form)
  • Pre-Award Survey, with at a minimum key contact list and section 2 updatedannually, as well as, and any updates in other pertinent sections.
  • Updated NAFTA / Certificate of Origin
  • Customer–Specific Assessments (i.e., PPA, Q1, MMOG, BIQS, etc.)
  • FNG-specific Forms as indicated during the initial PPAP

For suppliers that fail to comply with a Corrective Action request will be issued and with the expectation of closing within 5 days. Administrative fee will apply (Addendum B).

2)RawMaterial Certifications

A completed Certificate of Analysis (COA), which includes the engineering specification number, must be provided prior to the shipment for each lot. The COA must contain the actual physical or testing measurements per the specified OEM customer engineering specification for the key parameters as detailed on the contract or amendments to the contract. SPC data, when required must be provided with each shipment. A copy of the actual physical or testing measurements detailed in the OEM specification must be maintained on file at the production location and available upon request. Reference examples:

A.RESIN

  • Customer Specification materials was tested
  • Min/Max Specifications and Values
  • Lot/ Batch Number for Traceability
  • Estimated Quantity Shipped
  • Melt Flow Rate
  • Ash Content
  • Density
  • Flexural Modulus
  • Notched Izod Impact

B METALS