Escalation Process by ruj15698

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									                                                        Quality Assurance Agreement with Production Material Suppliers


Escalation Process
The customer’s escalation process for suppliers of production material and corresponding services,
such as coating or heat treatment, is described below.

                  E0                      E1                     E2                      E3                   E4
         Standard process         Intensified process           Warning         New Business Hold        Disqualification



                       100% inspection / sorting CSL 1
                       - internally
                       - by supplier

                                   Quality review
                                   - in house
                                   - on site

                                                  100% inspection / sorting CSL 2
                                                  - by external service provider

                                                                Corrective action plan


                                                                          Process audit


                                                                                              Temporary block for
                                                                                              new orders

                                                                                                          Block for new
                                                                                                          business


1 Escalation Levels

1.1    Escalation level E 0 – Standard process

In day-to-day business (escalation level E 0), deliveries are checked by the customer using
standard dynamic sampling and rejected in the event of deviations from the specification.
Following a rejection, the relevant quality assurance department at the customer’s recipient plant
can ask the supplier to carry out a special inspection for individual deliveries, e. g. check the next
three deliveries in full, by means of a formless inspection report. This request applies to the
rejected characteristic and the rejected product.

1.2    Escalation level E 1 – Intensified process

In the event of cumulative quality problems caused by the supplier, the customer can place
increased requirements on the inspection of the goods. Therefore the relevant purchasing
department at the customer’s recipient plant imposes escalation level E 1 and notifies the
supplier’s Executive Board formally by a Status Report (QAA part 3, Appendix 1).
If, as a result of introducing suitable corrective measures, the supplier has not been the cause of
any further rejections during the period defined by the customer, a formal Status Report is issued
by the customer to downgrade the escalation level from E 1 to E 0.




S 296001 Part 6                                             Page 1 of 3                                Revision: November 2008
                                           Quality Assurance Agreement with Production Material Suppliers


1.3    Escalation level E 2 – Warning

If the supplier causes further quality problems during the time that he is assigned to escalation
level E 1, the customer can escalate this further. Therefore the customer’s purchasing department
imposes escalation level E 2 and notifies the supplier’s Executive Board formally by a Status
Report.
In the event of particularly critical defects, escalation level E 2 can be imposed without prior E 1
classification.
If, as a result of introducing suitable corrective measures, the supplier has not been the cause of
any further rejections during the period defined by the customer and any additional conditions
stipulated by the customer have been met, a formal notice is issued by the customer to downgrade
the escalation level from E 2 to E 1.

1.4    Escalation level E 3 – New Business Hold (NBH)

If there is no significant improvement in quality upon completing all of the activities, or if the time
period in escalation level E 2 is too long, the status New Business Hold (NBH) is assigned to
temporarily block the supplier for orders involving new projects. The supplier is notified of this in a
formal Status Report letter from the customer’s purchasing department, which also defines the
criteria that must be met in order before the New Business Hold status can be lifted.
Other reasons for issuing the New Business Hold status include:
 Certification of the quality management system expired more than six months ago or is invalid
 Insufficient cooperation from the supplier as regards taking the necessary corrective measures
 Inadequate supply reliability
The New Business Hold status is only withdrawn once the effectiveness of the defined measures
has been checked by the customer. This is announced by the customer’s purchasing department
with a formal Status Report.

1.5    Escalation level E 4 – Disqualification

If, in spite of support from the customer, there is no significant improvement in quality and
conditions are not met, the supplier is permanently excluded from any new business and the
supplier is replaced as soon as possible.

2 Conditions

2.1    Controlled Shipping Level 1 (CSL 1)

Controlled Shipping Level 1 (CSL 1) means that, in addition to the standard inspection scopes, the
supplier must carry out a further 100% inspection of the material numbers and features defined by
the customer prior to each delivery to the customer. This information, together with the demands
on documentation, is included in the customer's Status Report to the supplier.
The inspected products and the packaging must be specifically marked. The type and content of
this marking must be agreed with the customer.




S 296001 Part 6                                  Page 2 of 3                          Revision: November 2008
                                          Quality Assurance Agreement with Production Material Suppliers




2.2    Controlled Shipping Level 2 (CSL 2)

Controlled Shipping Level 2 (CSL 2) means that, in addition to the standard inspection scopes, the
supplier must arrange a further 100% inspection, by an external service provider, of the material
numbers and features defined by the customer prior to each delivery to the customer. This
information, together with the demands on documentation, is included in the customer's letter to
the supplier.
The supplier must prepare a sorting instruction for the external service provider, which must be
approved by the customer beforehand. He is responsible for ensuring that sorting work is carried
out properly, results are documented and the delivered products are of the required quality.
The inspected products and the packaging must be specifically marked. The type and content of
this marking must be agreed with the customer.

3        Applicable documents

Applicable appendix to S 296001 Part 6
(see www.Schaeffler.de / Suppliers / Quality / Production Material)
Appendix 1                Escalation Process – Status Report




S 296001 Part 6                               Page 3 of 3                            Revision: November 2008

								
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