Version 2.4

9/5/03

GMNA Production Control & Logistics (PC&L) Vehicle Supply Operation’s (VSO) RequirementsNAME OF YOUR COMMODITY

GM 17001700A

Order to Delivery (OTD)

Standard Supply Chain Requirements

General Motors North American Operations

Version 2.4

GMNA Production Control & Logistics Vehicle Supply Operation’s Requirements

It is the intent of this publication to establish uniform Supplier Shipping and Delivery Performance Requirements.

  1. GENERAL INFORMATION------4
  2. CAPACITY MANAGEMENT------4
  3. CAPACITY MANAGEMENT SYSTEM (CAMAS)------4
  4. COMMUNICATION------5
  5. PROTECTION OF SUPPLY ------5
  6. MATERIAL DISCREPANCIES------5
  7. REPAIR/REPLACEMENT ISSUES------5
  8. PROBLEM REPORTING AND RESOLUTION (GENERAL PROCEDURE GP-5)----5
  9. COMPONENT VERIFICATION AND TRACEABILITY (GP-7)------5
  10. SUPPLIER COMPLIANCE TO SHIPPING SCHEDULES------5
  11. SUPPLIER’S UNION CONTRACT------5
  12. CONTRACT TIMING------5
  13. NEW CONTRACT CONTENT------6
  14. DELIVERY STRATEGY REQUIREMENTS ------6
  15. SUB-ASSEMBLY AND SEQUENCE SUPPLIER OPTIONS------6
  16. SEQUENCE SUPPLIER (S) RECOVERY PLAN------6
  17. SHIPPING REQUIRMENTS AND TRANSPORTATION------6
  18. SHIPPING REQUIRMENTS------7
  19. DOCUMENT REQUIREMENTS------7
  20. SHIPMENT IDENTIFICATION (SID)------7
  21. SHIPPING AND DELIVERY AT SCHEDULED RATE------7
  22. SERVICE PARTS OPERATIONS PERFORMANCE------7
  23. TRANSPORTATION (TERMS OF FREIGHT, DELIVERY AND SALE)------7
  24. NORTH AMERICAN SHIPMENTS ------7

(DOMESTIC SHIPMENTS AND SUPPLIER (S) LOCATED IN MEXICO)

5.2.2.GLOBAL LOGISTICS AND TRANSPORTATION ------8

5.2.3.PREMIUM FREIGHT------10

5.2.4.TIER 2 SHIPMENTS------10

5.2.5.HIGHWAY EQUIPMENT SAFETY REQUIREMENTS------10

  1. CONTAINERIZATION, PACKAGING AND LABELS------11
  2. GM CONTAINERIZATION RESPONSIBILITY------11
  3. SUPPLIER CONTAINERIZATION RESPONSIBILITY------11
  4. SUPPLIERS SHIPPING TO MEXICAN ASSEMBLY PLANTS------11
  5. SUPPLIERS LOCATED IN MEXICO, SHIPPING TO THE US------11
  6. REPACK ------12
  7. CONTAINER DEVELOPMENT AND VALIDATION------12
  8. RETURNABLE – GM DESIGNED ------12
  9. RETURNABLE – SUPPLIER DESIGNED ------12
  10. EXPENDABLE------12
  11. LABELS------12
  12. PRODUCTION PART CONTAINER LABEL------12
  13. SEQUENCED MATERIAL------13
  14. ELECTRONIC COMMUNICATIONS------13
  15. ADVANCED SHIPMENT NOTIFICATION (ASN)------14
  16. RECORDS------14
  17. SHIP DIRECT SUPPLIERS------15
  18. INVENTORY CONTROL------15
  19. ENGINEERING CHANGES ------15
  20. OBSOLESCENCE------15
  21. MATERIAL HANDLING/MANAGEMENT PROCESS------15
  22. KEY QUESTIONS------15
  23. CHANGE LOG ------16
  24. ATTACHMENT------17

1.GENERAL INFORMATION424

1.1Lean Capacity Rate (LCR)4244

2.supplier responsibility424

2.1Lean Capacity Rate (LCR)…………………………………………………………………….. 3

2.1.2 Contracted Capacity42544

2.23Global Capacity Analysis and Planning System (GCAPS)425

2.34Supplier Initiated Communications525

2.54Problem Reporting and Resolution (General Procedure GP-5)625

2.56Component Verification and Traceability (GP-7)62656

2.76Supplier(s) Ship Compliance to Overtime/Downtime Schedules626

2.87Supplier’s Union Contract626

2.87.1Contract Timing726

2.87.2New Contract Content726

2.89Sub-assembly and Sequence Supplier Options726

2.9Subassembly and Sequence Supplier Options(s)72767

2.9.1Sequence Supplier(s) Recovery Plan8727

3.transportation827

3.1Shipment Identification (SID)927

3.2Terms of Freight, Delivery and Sale92988

3.2.1Domestic Shipments102988

3.2.2International Shipments102988

3.2.3Supplier(s) Located in Mexico1021099

3.3Premium Freight1021099

3.4Buffer Inventory Location1021099

3.5Highway Equipment Safety Requirements1021099

4.containerization122111010

4.1GM Responsibility122111010

4.2Supplier Responsibility122111010

4.2.13rd Party Supplier122111010

4.2.2Repack122111010

4.3Container Development and Validation122111010

4.3.1Returnable – GM Designed122111010

4.3.2Returnable – Supplier Designed122111010

4.3.3Expendable122111010

5.labels132121111

5.1Production Part Container Label132121111

5.2Sequenced Material132121111

6.material delivery at rate142131212

7.electronic communications142131212

7.1Advanced Shipment Notification (ASN)152141313

7.2Records152141313

7.3Obsolescence162141313

8.Engineering Changes162141313

9.supplier Facility requirements162161514

9.1Supplier Lease Agreement172161514

9.2If Supplier is required to co-locate, the following shall apply:172161514

10.Supplier Disaster Recovery Plan172171615

1GENERAL INFORMATION

The following PC&LOTD requirements are part of the terms and conditions of a Supplier’s purchase order with General Motors (GM) United States, Mexico and Canada facilities. Any exceptions to any of the terms and/or requirements discussed in this document are required to be approved by the General Motors Buyer. Unless otherwise specified, the term “GM Location” shall include GM-specified 3rd Party Suppliers. Be prepared to answer questions relating to this document during the Technical Review Meetings. Complete details with regard to these requirements are contained in the following GM Standard Documents:

GM 1708 Supplier Installed Capacity Survey

GM 1724 Shipping & Parts Identification Standard (A, B, & C)

GM 1737 Specifications for Parts and Component Bar Codes ECV/VCVS

GM 1738 Packaging and Identification Requirements for Production Parts

To download documents go to Quality/GP Procedures Listing & Others/GM9000 Reference Documents.

These documents are also available from Boise Cascade 1.800.472.6473. Request Section III- GM specific requirements referenced in QS-9000.

Important note: Throughout this document GM refers to GM, Vector or GM/Vector contracted Logistics Service Providers

Lean Capacity Rate (LCR)

For tooling purposes, the World Wide Purchasing (WWP) buyer shall provide supplier a daily LCR. The LCR is the daily straight time level of capacity required to support GM Location’s operating plans. Program volume information may also be provided for business planning purposes and could include Vehicle Line; Model/Program; and Option Penetration.

2Capacity mANAGEMENT

For Capacity requirements, refer to the RFQ.

2.1 supplier responsibility

Supplier shipment(s) shall be made per the GM Location shipping requirements. The quantities indicated shall be shipped on the day(s) and time(s) specified by the GM Location. Schedule requirements may include shipping 2 shifts, 3 shifts, 3 crews/2 shifts, on any Saturday, Sunday, local/international holiday and/or any other Supplier downtime.

Supplier cannot move their FOB shipping location without prior arrangements and approval from Purchasing and Supply Chain Planner. Any move without prior agreement will result in the supplier paying additional transportation charges and containerization costs.

Unless otherwise specified by GMNA PC&L, VSO TTier 1 Supplier shall contract, manage and pay transportation from Tier 2 Supplier(s) to Tier 1 Supplier Location. Tier 1 Supplier shall ensure Tier 2 Supplier(s) has the capability and necessary equipment, training and resources to effectively communicate with the Tier 1 Supplier.

Supplier shall have sufficient rail/truck docks and ramps to receive and ship scheduled material and containers in specified types of specialized equipment. (ie – drop deck trailers, automated trailers etc. )In addition, the supplier must be capable to dock, load, and unload automated trailers where applicable.

Supplier shall furnish all documents in English, (e.g., Bills of Lading, Packing Lists, Manifests, Invoices, Certificates of Origin, etc.). Documents shall indicate the following:

specific part number(s)

specific quantity of each part(s)

number of container(s) for each part number(s)

Lean Capacity Rate (LCR)

For tooling purposes, the World Wide Purchasing (WWP) buyer shall provide supplier a daily LCR. The LCR is the daily straight time level of capacity required to support GM Location’s operating plans. Program volume information may also be provided for business planning purposes and could include Vehicle Line; Model/Program; and Option Penetration.

Contracted2.2 Contracted Capacity

Supplier’s manufacturing system (Supplier Installed Capacity) shall achieve a level of throughput, which is equal to or greater than contracted capacity while producing all other committed customer requirements (Total Utilized Capacity). Supplier’s manufacturing system(s) shall be contracted and capacitatedapacitized to the “lowest practical level” to meet the daily LCR. Supplier’s manufacturing system shall be capable of sustaining increases in schedules, including Service Parts Operations (SPO), up to 15% above contracted capacity on a maximum sustainable basis with no additional investment.

Supplier shall obtain approval from WWP prior to making any modifications to the manufacturing system that shall impact the contracted capacity. Supplier shall ensure that regular pproduction and and GMSPO service requirements shall continue to be produced.

2Global Capacity Analysis and Planning System (GCAPS)

2.4GCAPS is a global system designed to manage and align supplier capacity to GM requirements. Suppliers will be required to complete and submit GM 17088, Supplier Installed Capacity Survey. Suppliers will be contacted by the GCAPS Center of Expertise after production schedule availability to complete the survey(s). Survey data shall enable GM to compare current production schedules to Supplier Installed Capacity to identify potential capacity shortfalls from the start of production throughout the vehicle lifecycle.

2.1 Capacity Management System (CAMAS)

CAMAS (Capacity Management System) is a global system designed to manage and align supplier capacity to GM requirements. This system allows GM to compare current production schedules to Supplier Installed Capacity, as a method of determining potential capacity shortfalls throughout the vehicle lifecycle. Suppliers will be required to:

  • Complete and submit GM 1708 Supplier Installed Capacity Assessment on a quarterly basis.
  • Run monthly shortfall reports on the first Tuesday of each month.
  • Fill out a Shortfall Response Form to address any shortfalls detected by the following Friday.
  • Complete any other tasks related to this process.

After production schedules are available, suppliers will be contacted by a CAMAS analyst. It is critical that the proper supplier personnel be made available to complete the GM 1708 Supplier Installed Capacity Assessment. The supplier contact must be familiar with the manufacturing process (i.e., capacity planner, production manager, or plant manager) of the facility producing the parts. To advise the CAMAS team of the appropriate contact, please send an e-mail to .

GM will provide a mandatory training class, available through Supply Power, to ensure that the assessment is filled out correctly. After completing the training, each supplier contact is required to obtain a GM SupplyPower ID. The GM 1708 Supplier Installed Capacity Assessment is located on the GM SupplyPower website at: This site must be accessed monthly to run shortfall reports and update capacity information as necessary.

3.

3COMMUNICATIonNG SUPPLY CHAIN ISSUES

Supplier shall have real time, interactive communications with GM Location.

3.1 Protection of Supply

In the event of unforeseen circumstances that have the potential of impacting the supply chain, the Supplier shall contact the GM Buyer. The supplier will be responsible for developing a protection of supply strategy. Examples of unforeseen circumstances could include, but are not limited to, issues with tier 2 or component suppliers, potential carrier issues or tier 2 through tier N labor disputes.

Supplier Initiated Communications

Supplier shall have real time, interactive communications with GM Location.

3.1

1Material Flow Discrepencies

3.2 Material Discrepancies Supplier shall identify and communicate material flow plan discrepancies to the GM Location. Timing of the communication shall allow for corrective action and continuous improvement. Examples of areas for communication are as follows:

Quantity d

Container shortage(s)

Shipping expendable containers

Transportation Issue(s)Discrepancies in for shipment quantities

Timing concerns for shipment(s)

Container shortage(s)

Transportation Issue(s)

3.2 3 Repair/Replacement Issues

When necessary, the sSupplier shall provide a plan to repair and/or replace components for the a part for the product to be supplied or for the complete assembly to be supplied. Plan shall include “Repair Reaction Time” for the following:

Shortage – example, “Ship Iimmediate to within 1 Hour”

Bank Replenishment – example, “Ship wWithin 4 Hours”

In Plant Repair – example, “As Required”

3.4 Supplier shall obtain approval from WWP prior to making any modifications to the manufacturing system that shall impact the contracted capacity. Supplier shall ensure production and service requirements shall continue to be produced.

Problem Reporting and Resolution (General Procedure GP-5)

Supplier shall report and document problems per GP-5 of GM Supplier Quality Improvement Process. Complete details with regard to this requirement are contained in Supplier Quality Processes and Measurements Procedure GP-5. This document is available on Quality/GP Procedures Listing & Others/GM9000 Reference Documents

Component3.5 Component Verification and Traceability (GP-7)

Supplier shall verify and trace selected parts or components per GP-7 of GM Supplier Quality Improvement Process. Complete details with regard to this requirement are contained in Component Verification & Traceability Procedure GP-7. This document is available on Quality/GP Procedures Listing & Others/GM9000 Reference Documents

Supplier3.6 Supplier(s) Ship Compliance to Overtime/DowntimShipping e Schedules

Supplier shall communicate any event that affects the ability to comply with GM’s shipping schedule requirements. Scheduled shutdowns, fFloods, fires, machine breakdowns, insufficient tooling, quality holds, capacity problems, holiday schedules that differ from GM Location, and any other extenuating circumstances shall be communicated immediately to the GM Location and WWP buyer.

Supplier shall ship to GM loc Location shipping schedule during any Supplier shutdown. Supplier shall provide GM Location a contact name and number for emergency coverage during shutdown.

Supplier’s3.7 Supplier’s Union Contract

3.7.1 4.1Contract Timing

Three (3) months prior to the Supplier’s union contract expiration, Supplier shall provide the contract expiration date to WWP buyer and PC&LOTD. PC&LOTD shall issue the “Strike Bank Protection Letter”, with the requested bank quantities by part number to each Supplier identified. Supplier shall respond on a weekly basis, the strike bank status.

3.7.2 4.2New Contract Content

Supplier shall communicate new union contract information immediately to the specified GM Location and service customer contact(s).

Sub-assembly and Sequence Supplier Options Perhaps this section should be reflected under 2.9

Supplier shall provide parts to the GM Location in Vehicle Build Sequence utilizing one of the following options:

Option 1 - Supplier shall directly provide the product in Vehicle Build Sequence.

Option 2 - Supplier shall contract with GM-approved Sequencing and Sub-Assembly Suppliers. Supplier shall contract and manage the appropriate “Level of Service” to ensure proper sequencing and/or sub-assembly and delivery to the GM Location.

With either option, day to day management of the components, all product cost, quality and warranty requirements shall be the responsibility of the Supplier. Responsibilities shall include expertise in Material Handling, Material Flow, and Competitive Manufacturing Processes.

If more than one (1) Supplier is supplying the same commodity and if line side delivery requires one (1) container, the Supplier shall either sequence for the other Tier 1 Supplier(s) or sequence through GM-approved Sequencing and Sub-Assembly Suppliers.

FOB point for either option shall be the final Sub-assembly/Sequencing Center shipping to the GM Location, and located close enough to the GM Location to comply with broadcast window(s) identified in the Appendix H Statement of Requirements Document.

.

5.0Sequence Supplier(s)

Sequencing information will be provided in the Appendix H. If Tier 1 sequencing is required, an Appendix H will be provided with the SOR.

Supplier shall support the GM Location Lean Material System.

Supplier shall provide part(s) to a scheduled dock window. Scheduled dock window is a specific dock schedule allocating days and times for pick-up and/or delivery within GM Location’s specified broadcast window. Broadcast window is the total elapsed time from when part broadcast information is available until the part is required at the installation point.

Containers shall be full standard packs. The supplier cannot wait until a full container of sequence parts are released in all cases. This statement does not apply to low volume optional parts that are required early in Trim.(such as cargo door’s garnish). The plant must establish a set number of jobs (for example 30) on the pick sheet; reflecting the total number of jobs required this part for those 30 jobs. The total number may be only 5 pieces. This number will vary throughout the day. If the plant did not establish the pick sheet in this format, the plant would continually run out of parts because the supplier is waiting for enough parts to be released to fill the container. Containers between the Supplier and the GM Location shall be returnable, with no disposable dunnage. Rack retention devices shall be integrated to the rack. What does this mean?

Supplier shall track shipping performance and line side consumption through the Material Tracking System (MTS) database for production parts. Does this apply just to sequence parts?

Suppliers shall track shipping performance for GM Service Parts Operations (GMSPO) using Service Parts Delivery Index (SPDI) and Shipping Performance Reports. How does this apply to Sequence Suppliers?

Sequence Supplier(s) Recovery Plan

Tier 1 Supplier and/or 3rd Party Supplier shall define an effective delivery recovery plan for any missed or rejected sequenced part (e.g., van for special delivery)

4 DELIVERY STRATEGY REQUIREMENTS

Sequencing requirements will be provided in the Appendix H. If Tier 1 sequencing is required, an Appendix H will be provided with the SOR.

4.1 Sub-assembly and Sequence Supplier Options

Supplier shall provide parts to the GM Location in Vehicle Build Sequence utilizing one of the following options:

Option 1 - Supplier shall directly provide the product in Vehicle Build Sequence.

Option 2 - Supplier shall contract with GM-approved Sequencing and Sub-Assembly Suppliers. Supplier shall contract and manage the appropriate “Level of Service” to ensure proper sequencing and/or sub-assembly and delivery to the GM Location.

With either option, day-to-day management of the components, all product cost, quality and warranty requirements shall be the responsibility of the Supplier. Responsibilities shall include expertise in Material Handling, Material Flow, and Competitive Manufacturing Processes.

If more than one (1) Supplier is supplying the same commodity and if line side delivery requires one (1) container, the Supplier shall either sequence for the other Tier 1 Supplier(s) or sequence through GM-approved Sequencing and Sub-Assembly Suppliers.

FOB point for either option shall be the final Sub-assembly/Sequencing Center shipping to the GM Location, identified in the Appendix H Statement of Requirements Document.

4.2 Sequence Supplier(s) Recovery Plan

Supplier shall define an effective delivery recovery plan for any missed or rejected sequenced part (e.g., van for special delivery)

5 .

2.10 Service Parts Operations Performance

Suppliers shall track shipping performance for GM Service Parts Operations (GMSPO) using Service Parts Delivery Index (SPDI) and Shipping Performance Reports. SHIPPING REQUIRMENTS AND TRANSPORTATION

Refer to Supply Chain Management Roles & Responsibilities for further details. (Located in GM Supply Power, at Power/Library/Policies & Procedures/North America

Supplier shipment(s) shall be made per the GM Location shipping requirements. The quantities indicated shall be shipped on the day(s) and time(s) specified by the GM Location. Schedule requirements may include shipping 2 shifts, 3 shifts, 3 crews/2 shifts, Saturday, Sunday, local/international holiday and/or any other Supplier downtime.

Supplier shall have sufficient rail/truck docks and ramps to receive and ship scheduled material and containers in specialized equipment. (ie – drop deck trailers, automated trailers etc. )

55.1 Document. 1 Shipping Requirements

5.1.1 Document Requirements

Supplier shall furnish all documents in English, (e.g., Bills of Lading, Packing Lists, Manifests, Invoices, Certificates of Origin, etc.). Documents shall indicate the following: