RUN at RATE

1.Purpose

The purpose of the Run at Rateis to verify that a Supplier’s actual manufacturing process:

  1. Iscapable of producing quality components, systems, or modules, as stated in the Production Part Approval Process (PPAP), and
  1. Includes adequate tooling and is capable of producing the daily Supplier Capacity Rate (SCR)in one production day (including scrap and machine downtime).

2.Scope

This procedure applies to all manufacturing, assembly, testing, and inspection contracted to Allison Transmission Inc. (ATI):

  1. To produce new components/systems or modules,

B.To increase existing capacity on previously contracted volume, or

  1. Related to tool and equipment moves to new locations.

The application of this procedure may be required for changes to existing processes where it is deemed that the capability or capacity of the system have been altered.

Note: An exemption from this process can only be granted with the approval of an Allison Supplier Quality Engineer (ATI SQE). Approval is to be documented on AT 1960-A.

3.Type of Run at Rate

Allison Supplier Quality will confirm the type of Run at Rate. The Supplier will be notified of the need to perform a "Customer Monitored" or "Supplier Monitored" Run at Rate at the APQP kickoff meeting.The decision will be documented on AT 1960-A.

RUN AT RATE PROCESS

1.General Information

  1. Duration of Run at Rate

The duration of the Run at Rate will be sufficient to verify that the process can meet the SCR. The default length of the Run at Rate will be equal to the Supplier’sstandard daily work hours. However, the authorized ATI SQEmay deviate from the default duration after taking into consideration the following factors:

  • Product Complexity
  • Shelf Life
  • Storage & Packaging
  • Cost
  • Production Day Length
  1. Timing of Run at Rate

The Run at Rate should be performed after the supplier has attained a PPAP status of“Full” or “Interim” and will be scheduled by the ATI SQE.

  1. Supplier Preparation for Run at Rate

To ensure readiness before the formal Run at Rate is performed, the Supplier will conduct a practice Run at Rate and communicate the results to ATI SQE.

Submit to ATI upon request:

  • AT-1810
  • AT-1960-A (Run at Rate Summary)
  • Process Flow Diagram reflecting all internal assembly and sub component lines
  • AT-1960-C3 (Capacity Analysis Worksheets)
  1. Required Run at Rate Participation and Coverage
  1. Supplier Monitored

The lead Supplier representative is responsible for ensuring that the Run at Rate is performed as detailed in this Procedure. The lead Supplier representative or their designee must be present during the entire Run at Rate.

Within 24 hours of completing the formal Run at Rate, the Supplier must complete the Run at Rate Summary sheet (AT-1960-A) and the Capacity Analysis Worksheets (AT-1960-C3) and forward them to the ATI SQE.

Equipment suppliers or subcontractors may be asked to participate in either Customer or Supplier Monitored Run at Rates.

Supplier will not be deemed ready for a Customer Monitored Run at Rate until all required documentation has been properly filled out and forwarded in advance to the ATI SQE.

  1. Customer Monitored

Unless agreed to in advance by the ATI SQE, a representative from Allison Transmission is to be present for the entire Run at Rate. The authorized ATI SQEmay agree in advance to accept the results of a portion of the Run at Rate without being present. Any authorization for other than full day Run at Rate is to be documented with rationale on AT 1960-A.

  1. Subcontractor/Tier 2 Requirement

Suppliers are required to ensure the Run at Rate of their sub-tier suppliers. Written confirmation of daily contracted requirements, as well as actual system performance for quality, capacity, and delivery, must be provided to the ATI SQE prior to the Run at Rate.

Where an on-site study is conducted at a sub-tier supplier, this Run at Rate process should be utilized.

  1. Inventory

Finished parts inventory resulting from production runs to prepare for or complete a Run at Rate will be the responsibility of the Supplier. This inventory will be held until scheduled for shipment by Allison.

2.Approval

During the Run at Rate, the Supplier’s actual manufacturing process will be assessed to verify its ability to meet the quality and capacity requirements as contracted and detailed in the Process Control Plan Audit(AT-1927-16) and AT-1960- C3.

The Run at Rate will be assessed with one of the following five results:

A.Pass

A status of “Pass” indicates that all Run at Rate requirements have been met and that the demonstrated capacity is equal to or greater than the LCR in the Scheduling Agreement. The AT-1927-16 and AT-1960-C3have passed. Subcontractors’ abilities to meet the capacity and quality requirements have been confirmed in writing by the Supplier, and all parts produced meet Allison Transmission’s quality and packaging requirements.

B.Staged

A status of “Staged” indicates that the supplier is meeting the approved plan for the gradual introduction of tooling, machinery, or shifts required to meet the LCR.

C.Customer Fail

A status of “Customer Fail” indicates that the Supplier passed all Run at Rate requirements based on the SCR. However,LCRis greater thanSCR.

D.Pending PPAP

A status of “Pending” PPAP indicates that all capacity related elements have been met and the status “Pass” is pending due tothe PPAP status being set at ”Interim”.

Upon satisfactory correction of the above conditions and assurance the capacity has not been affected, the status can be changed to “Pass”.

E.Fail

A Status of“Fail” indicates that a nonconformance exists in AT-1927-16 or the AT-1960-C3 that requires action by the Supplier to correct, or if Supplier fails to provide written confirmation of the subcontractor’s abilities to meet the quality, capacity, and delivery requirements.

3.Corrective Actions

Should the Run at Rate results fail to meet the requirements of this procedure for quality or capacity, a corrective action plan (AT1927-5) must be submitted to and approved by the authorized ATI SQE within two days following the completion of the Run at Rate.

Upon full implementation of the corrective action plan, the ATI SQE will determine the method of verification, which may require an on-site review or a new Run at Rate study.

Following verification of successful implementation, the Run at Rate status will be changed to a “Pass” or other appropriate level.

  1. Required Documentation for Submission and Retention
  1. Supplier should retain original version of AT-1960-A and AT-1960-C3 and submit copy to the ATI SQE.
  1. The ATI SQE will upload AT-1960-A, AT-1960-C3, and AT1927-5 (if required) into the Run @ Ratefolder in iPPAP.
  1. The ATISQE will enter the demonstrated capacity number into the “Supplier Demonstrated Capacity” field in the iPPAPmain screen.
  1. The ATI SQE will enter the Supplier’s planned work schedule into the “Supplier Planned Work Hours/Day” and “Supplier Planned Work Days/Week” fields in the iPPAP main screen.
  1. The ATI SQE will forward AT-1960-A and AT-1960-C3 to the appropriate Commodity Manager, ATI Tooling Group, and ASQE Supervisor.

Rev 8/18/14Page 1 AT-1960-1