Parts Supplier Agreement - PDF

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					                              QUALITY
                    AGREEMENT

                                   Change Log

Revision
 Level
                                Comments                           Responsible        Date

  03       - General Review                                        B. Booth       Sep 22,
                                                                                  2004
  04       - Introduction of Change Log                            R. Perscheid   May 03,
           - 14.2. Deleted “PPAP, APQP, IMDS, etc.” from                          2005
           documents required
           - 15.1 Added Documentation Performance to Quality
           Objectives
  05       - SOC/PTC Requirements and activities added.            B. Booth       Mar 15,
           - AIAG added to list of APQP/PPAP references.                          2006




Document number: YELK-S-F28                                    Revision No.: 05
                                                               Prepared by B. Booth
Contents                                                                                                                            Page

1.    Glossary ................................................................................................................................3

2.    Scope.....................................................................................................................................4

3.    Purpose .................................................................................................................................4

4.    Third Party Certification ......................................................................................................4

5.    New Parts ..............................................................................................................................5

6.    Modified Parts.......................................................................................................................6

7.    Deviations / Concessions....................................................................................................7

8.    Delivery..................................................................................................................................8

9.    Packaging..............................................................................................................................8

10.   Treatment of Quality Complaints / Rejections ..................................................................9

11.   Customer Line Returns and Warranty Returns to YEL / YWT ...................................... 11

12.   Repetitive Problems.......................................................................................................... 11

13.   Long Term Action Plan / Improvement Plan................................................................... 11

14.   Evaluation of Quality Performance ................................................................................. 12

15.   Quality Objectives ............................................................................................................. 13

16.   Cost of Non-Quality........................................................................................................... 14

17.   Confidential Disclosure Agreement ................................................................................ 14




YELK-S-F28                                                                                                               March 15, 2006
Quality Agreement Rev. 05                                        2 of 14                                                        YEL SD
1. Glossary

    APQP:             Advanced Product Quality Planning

    BOS:              Business Operating System

    EDI:              Electronic Data Interchange

    EH&S:             Environmental Health and Safety

    GQRS-C:           Global Quality Reporting System-Components

    IMDS:             International Material Data System

    IS:               Initial Sample

    MDS:              Material Data Sheet

    OEM:              Original Equipment Manufacturer

    PO:               Purchase Order

    PTC:              Porto Technical Centre

    PPAP:             Production Part Approval Process

    PPM:              Parts Per Million

    PSW:              Part Submission Warrant

    SBD:              Supply Base Development

    SOC:              Substance of Concern

    SQA:              Supplier Quality Assurance

    SQD:              Supplier Quality Development

    TDC:              Technical Documentation Center

    YEL:              Yazaki Europe Limited

    YWT:              Yazaki Wiring Technologies




YELK-S-F28                                                         March 15, 2006
Quality Agreement Rev. 05                 3 of 14                         YEL SD
2.     Scope

       The requirements of this agreement apply to all Suppliers of production
       parts / materials and / or services to YEL / YWT manufacturing or service
       centre locations.


3.     Purpose

3.1.   To clearly define the Quality System processes and disciplines required by
       YEL / YWT in order to ensure and maintain a successful and professional
       relationship between the YEL / YWT Purchasing function and Suppliers.

3.2.   This agreement is based upon and refers to the following International /
       Global Quality System Standards:
       ISO 9001 (2000), QS9000 (3rd Edition), AIAG PPAP/APQP (latest
       edition), ISO/TS16949 (2002), ISO 14001, EEC Directive 2000/53/EC on
       End of Life Vehicles


4.     Third Party Certification

4.1.   YEL / YWT purchase policy is wherever possible to only purchase product
       / services from Suppliers who hold third party accreditation for their Quality
       and Environmental Management Systems. Ultimately, all Suppliers will be
       required to hold third party certification to ISO/TS 16949 (2002), and ISO
       14001, the target dates for these will be communicated by the YEL / YWT
       Purchasing function when dates are finalised. Until such time the following
       requirements are mandatory:

       QS 9000 (3rd Edition), or EAQF (latest edition), or VDA 6.1 (latest edition),
       or AVSQ (latest edition), or ISO 9001 (2000).

       The only acceptable exceptions to the above are:

       - Suppliers specifically nominated and approved by OEM, which must be
         supported with a copy of the latest survey / approval report.
       - Suppliers who are committed to third party certification and who have
         undergone a satisfactory second party audit carried out by YEL / YWT
         qualified auditor(s), in accordance with Customer Specific audit / auditor
         requirements.
       - All Suppliers shall maintain or obtain third party certification as
         mentioned above, (unless above exceptions are agreed). YEL / YWT
         reserves the right, whenever deemed necessary, to carry out its own
         assessments on Suppliers and / or their Subcontractors (by agreement
         with the Supplier).


YELK-S-F28                                                             March 15, 2006
Quality Agreement Rev. 05              4 of 14                                YEL SD
5.     New Parts

5.1.   For each new part / product, the Supplier must submit Initial Samples (I.S.)
       with a complete report and supporting documents in accordance with
       requirements of QS9000, AIAG / PPAP latest requirements or any other
       specific OEM requirements agreed during contract release. The report
       must contain the YEL / YWT part number, technical engineering level and
       clear and complete supplier identification data. PSWs must be complete,
       accurate and up to date for the parts in question at all times.
       The Suppliers of proprietary or other parts must provide documented
       evidence of formal OEM / customer approval of Initial Samples, which
       clearly demonstrates conformance to YEL / YWT requirements, including a
       signed off PSW.
       PSWs must be updated on a regular annual basis (OEM requirements),
       even if nothing changes with the part(s) supplied (Suppliers will be notified
       accordingly and PSW update request from Yazaki TDC).
       Initial Samples must be sent as scheduled and always before the start of
       volume production. Samples must be identified with “Initial Sample” labels
       and accompanied by appropriate documentation. YEL / YWT Core
       Purchasing may also request that samples be sent to the relevant YEL /
       YWT “Pilot Plant”.

5.2.   For all Yazaki designed parts and upon request of YEL / YWT the APQP
       procedure has to be applied. Additionally a process or full system audit
       may be carried out by SQD before initial sample submission, in order to
       validate the process / product (in accordance with QS9000, AIAG / APQP
       Product / Process latest requirements).

5.3.   The I.S. and SOC samples, (see 5.5 below), should be correct / in
       compliance with requirements at the first submission to YEL / YWT. If it is
       not, YEL / YWT will request corrective actions, and a re-submission using
       the same process. Also, a process audit may be carried out at the
       Suppliers manufacturing plant.

5.4.   In the case of an incomplete report, the I.S. will be rejected.

5.5.   For each new part a MDS according to IMDS requirements shall be
       submitted to TDC, and when required included in PPAP documentation.
       The Supplier must also submit 4 pieces to the PTC for SOC compliance
       testing, this will be co-ordinated by YEL/YWT SQP/SQD and is
       mandatory.

5.6.   SQP / SQD will notify the Supplier with written approval or rejection of the
       I.S. submission. In the event of rejection, the Core Purchasing department
       will also be notified by SQP / SQD, in case project timings are threatened
       and further action is necessary.


YELK-S-F28                                                               March 15, 2006
Quality Agreement Rev. 05              5 of 14                                  YEL SD
5.7.   In addition to demonstrating that performance and specification /
       engineering requirements are met, I.S. documents must also prove / state
       conformance to EH&S, Environmental, Directive 2000/53/EC on end-of life
       vehicles, and local / national and customer requirements. (See also 5.5
       above reference SOC testing.)

5.8.   YEL / YWT will respect Suppliers confidentiality / expertise concerning
       data covering proprietary parts, and it is accepted that in these
       circumstances Suppliers cannot share all information / data with YEL /
       YWT. However, if problems or concerns arise, the Suppliers must be
       prepared to supply YEL / YWT with the minimum amount of information in
       order to review and eliminate such concerns.


6.     Modified Parts

6.1.   For YEL / YWT nominated parts, no modifications will be accepted without
       YEL / YWT written approval. This applies to all modifications suggested or
       requested by SUPPLIER, YEL / YWT and OEM. For non YEL / YWT
       nominated parts, Supplier must inform YEL / YWT in writing with
       appropriate documentation, of any modification, prior to first shipment of
       parts. In all cases a new PSW must be submitted. If the modification is
       to the material or is material related, 4 samples must also be sent to the
       PTC (see 5.5 above) for SOC testing.

6.2.   A modification may be due to any of the following which could affect fit,
       form or function:

       A.   Part modifications:
       -    Dimensions
       -    Raw material (see 6.1 above)
       -    Technical specification (performance / test method)

       B. Change of supplier (Material or service)

       C.   Process change:
       -    New tool
       -    Tool modification
       -    Process modification
       -    New process / technology

       D. Plant change:
       - Production transfer to a different plant

6.3.   The Supplier is responsible for any modification (originating from the
       Supplier or YEL / YWT) affecting the product they supply.


YELK-S-F28                                                         March 15, 2006
Quality Agreement Rev. 05              6 of 14                            YEL SD
6.4.   YEL / YWT shall be informed when parts are manufactured by
       Subcontractors and also when a modification (refer 6.3.) is proposed in
       response to a Subcontractor request.

6.5.   Supplier procedure is as follows:

       A. Provide YEL / YWT with written details of the proposed modification
          (reason, objectives, drawings, cost implications, and effect on form, fit
          and function).

       B. Request YEL / YWT written approval.

       C. Provide YEL / YWT with a schedule for implementation of the
          modification.

       D. Provide a security stock during the modification and the time for
          balance out. In the event of irreversible modifications, the security
          stock must be validated prior to implementation of the modification,
          and records kept and made available to YEL / YWT (if required), in the
          supplier facility.

       E. Provide identification of new / changed part level.


7.     Deviations / Concessions

7.1.   Deviations / Concessions will only be considered for a specific quantity of
       parts or a specific time frame, and must always be in writing.

7.2.   Deviation: Is the written request from a Supplier to knowingly manufacture
       parts which in some way, do not conform exactly to specification (i.e.
       supplier cannot produce parts exactly to specification and requests to
       deviate).
       Concession: Is the written request from a Supplier to ask YEL / YWT to
       accept and use parts already made / in transit, which do not conform
       exactly to specification, and which the supplier has only become aware of
       after manufacture.

7.3.   Deviations / Concession elements
       - Supplier name, location, phone / fax contact numbers
       - Supplier personnel (name / position) responsible for handling deviation
          / concession
       - YEL / YWT part number and engineering level
       - Description of non-conformity with Suppliers opinion of the effect on fit,
          form, function, etc. (OK / NOK)
       - Parts quantity / time frame


YELK-S-F28                                                           March 15, 2006
Quality Agreement Rev. 05             7 of 14                               YEL SD
7.4.   The YEL / YWT position on a Deviation / Concession will be given in
       writing at all times.

7.5.   Representative samples and the written request must be sent as soon as
       possible to the SQA function of the YEL / YWT user plant.

7.6.   If YEL / YWT accepts the Deviations / Concessions, each delivery must be
       identified with a label “Deviation / Concession ‘X’”.


8.     Delivery

8.1.   The products shall be delivered in line with documentation, quantities, timing
       and locations specified in the Purchase Order (P.O.) and in accordance with
       the shipping schedule instructions. Suppliers must ensure that delivery
       invoice is in accordance with that specified by the YEL / YWT Buyer.

8.2.   The Suppliers shall only deliver according to schedule, any costs
       related to early or late shipment (i.e. special freight costs), over or under
       shipment will be charged to the supplier.

8.3.   In any case of delivery concerns the Supplier shall inform the buyer and
       take appropriate actions to avoid material shortages at YEL / YWT plants.

8.4.    Wherever possible EDI shall be used.


9.     Packaging

9.1.   All products shall be shipped in accordance with the packaging / labeling
       and handling specifications agreed upon by both parties. If there is no
       special agreement between YEL / YWT and the Supplier, standard
       packaging procedures of the supplier shall be applied. The supplier has to
       assure the avoidance of any damaging of products and a convenient
       packaging for handling.

9.2.   Whenever an engineering change occurs the next three consecutive
       deliveries into YEL / YWT have to be identified with an orange / otherwise
       agreed label.

9.3.   Whenever a quality concern has occurred, the next three separate O.K.
       deliveries must be identified with an extra green label.

9.4.   After mutual agreement returnable containers shall be introduced in order
       to achieve cost reductions, and to save natural resources contributing for a
       better environment.


YELK-S-F28                                                             March 15, 2006
Quality Agreement Rev. 05              8 of 14                                YEL SD
10.    Treatment of Quality Complaints / Rejections

10.1. The Supplier is responsible for the quality of parts delivered at all times.
      He is also responsible for delivery of the correct parts, to the correct YEL /
      YWT user location at the correct time, with the correct quantities. The
      supplier’s responsibility is not only for his individual part, but also for any
      concerns / rejections / recalls etc. with YEL / YWT products which have
      been produced using Suppliers defect / suspect product and are related to
      those defect / suspect product.

10.2. MANAGEMENT OF QUALITY COMPLAINTS / REJECTIONS

       The Supplier shall apply the Eight Disciplines (8D) root cause analysis
       problem solving methodology and have evidence of official training on
       problem solving techniques.
       The Supplier will provide to YEL / YWT facilities an 8D report which must
       be in the English language, and which upon closure, clearly defines and
       verifies corrective actions implemented to eliminate the root cause.
       This process must be carried by the Supplier using the YEL web based
       interactive Complaints Management System. Guidance and advice on the
       correct use of this system can be obtained from the relevant SQD
       Engineer.

10.3. RESPONSIVENESS / PRO-ACTIVENESS

       Suppliers are selected because of their know-how, competence and
       commodity knowledge / experience.

       Suppliers must be responsive and proactive for the entire life of the
       product.

       Design and development phase
       Suppliers must assist YEL / YWT project teams to find the best technical
       solutions at the most competitive prices, whilst maintaining the required
       level of quality.

       Production phase
       Suppliers must be committed to providing the means / resource to
       resolving quality concerns as a top priority.

       Post production phase
       Suppliers must be committed to support and take responsibility for any
       concerns occurring after production phase i.e. field claims, warranty
       concerns.




YELK-S-F28                                                             March 15, 2006
Quality Agreement Rev. 05              9 of 14                                YEL SD
10.4. IMMEDIATE CORRECTIVE ACTION

10.4.1.   The Supplier shall name a “champion” for each manufacturing location.
          When YEL / YWT receives products from more than one European
          manufacturing location, the Supplier shall name a European coordinator
          to assist communication.

10.4.2.   Production flow interruption:
          In the event of non-conformities, the Supplier must provide corrective
          actions necessary to ensure production flow without interruption. These
          actions may include sorting, rework, containment, immediate
          replacement of defectives, and identification of “OK” parts / materials,
          and the presence of the Supplier / Suppliers personnel in the YEL /
          YWT user facilities affected. Suppliers must respond within 24 working
          hours (maximum) when notified of a concern.

10.4.3.   Agreed containment action may include visits of specific Supplier
          personnel to YEL / YWT user facilities to review / analyze the concerns.
          This is in addition to Supplier personnel in 10.4.2. who may be carrying
          out sort / rework etc.

10.4.4.   Suppliers shall provide YEL /   YWT with an initial 8D report, using the
          Yazaki GQRS-C web based         system, identifying containment actions
          within 24 working hours. The    appropriate YEL / YWT SQA personnel
          responsible for handling the    concern must review and approve the
          proposed Supplier actions.


10.5. PERMANENT CORRECTIVE ACTION.

10.5.1.   Suppliers must provide YEL / YWT with initial 8D root cause analysis
          report within 72 working hours, using the Yazaki GQRS-C web based
          system and follow this up within 10 working days (maximum) with 8D
          report detailing complete corrective action.

10.5.2.   A corrective action-timing plan (in conjunction with 10.5.1 above), must
          be submitted to the appropriate SQA personnel, who must approve the
          proposed plan / actions.




YELK-S-F28                                                           March 15, 2006
Quality Agreement Rev. 05            10 of 14                               YEL SD
11.    Customer Line Returns and Warranty Returns to YEL / YWT

11.1. If Supplier responsibility is clearly identified, customer line returns and
      warranty returns will be managed as quality incidents.

11.2. Field analysis may be organized in a YEL / YWT plant to analyze defective
      parts.

11.3. Warranty terms, conditions and reimbursement will be the same as applied
      by YEL / YWT customers.


12.    Repetitive Problems

12.1. A repetitive problem indicates that the corrective actions according to 8D
      report were not effective or not implemented. Moreover the effectiveness
      of the corrective actions was not verified, as required by the 8D process.

12.2. In the case of repetitive problems YEL / YWT may request Suppliers
      senior management to visit the YEL / YWT plant to propose and commit to
      a complete business action plan.

12.3. Supplier must provide 100% inspection and identification of purchased
      parts until the problem is eliminated, and if requested by YEL / YWT, must
      agree to a process audit at the relevant Supplier facility.


13.    Long Term Action Plan / Improvement Plan

13.1. On a yearly basis (minimum), the Supplier must present to YEL / YWT, a
      detailed plan for continuous improvement of their system, organization,
      etc., showing how quality, cost and delivery objectives are to be achieved.

13.2. Depending on the results of the Supplier’s performance evaluation and the
      current level of the Supplier, short and middle term action plans will be
      requested by SQD.




YELK-S-F28                                                         March 15, 2006
Quality Agreement Rev. 05            11 of 14                             YEL SD
14.    Evaluation of Quality Performance

14.1. Supplier Quality Performance will be measured monthly using 5
      KPIs (Key Performance Indicators), these are:

       1. Defective parts per million delivered to Yazaki
       2. Reactivity response to rejections & complaints raised by Yazaki
       3. Rejection Performance
       4. Delivery Performance
       5. Documentation Performance

       Based upon a combination of all or some of the above KPI’s, (as relevant /
       applicable), a monthly Supplier Status Level will be calculated and where
       necessary the Supplier will be informed, and also appropriate Yazaki
       personnel. Supplier Status Levels are shown in the table below:

          SCORE             LEVEL       STATUS
         > 85 – 100           A     Preferred
         > 60 – 85            B     Acceptable
         > 40 – 60            C     Probationary
            0 – 40            D     Unacceptable

14.2. KPI Measurables and Weighting

       Each of the 5 KPI’s can account for a maximum of 20 points towards the
       overall Score used to allocate Supplier Level and Status. If a KPI is not
       used / applicable the score is calculated using only those which are
       applicable, and converted into the final percentage score.
       Measurables and weightings are as follows:

       - Defective P.P.M.
         Total number of defective parts in relation to the total number of parts
         received, converted to a base of 1 million.
       - Reactivity
         Percentage of responses received at 3D level within 1 working day
         (70% weighting).
         Percentage of responses received at 8D CLOSED level within agreed
         time frame (30% weighting).
       - Rejections
         Number of rejections per million parts delivered (50% weighting).
         Total number of rejections (50% weighting).
       - Delivery Performance
         Not yet finalised or included.
       - Documentation Performance
         Percentage of requested / required documents (drawings,
         specifications, PSWs) received.

YELK-S-F28                                                          March 15, 2006
Quality Agreement Rev. 05            12 of 14                              YEL SD
14.3. Score Table




14.4. Quality Improvement Monitoring

       When required (due to poor performance), the Supplier must use the
       Business Operating System (B.O.S.) format to submit a monthly quality
       performance report, (measured in PPM) and the actions taken for
       improvement, to the SQD. This PPM data is part of the monthly Supplier
       evaluation score card that is submitted upon agreement to the Supplier by
       the SQD.


15.    Quality Objectives

15.1. The Quality objectives are:
      - PPM as close to zero as possible with 0 as the ultimate target (yearly
        objective to be determined by SQD)
      - 100% delivery performance
      - 100% reactivity in 8D response / containment actions (3D)
      - 100% submitted documentation (drawings, specifications, PSWs)

15.2. The quality objective on parts used on future new projects (i.e. projects in
      ramp up prior to volume production) will be negotiated between SQD /
      Supplier at the relevant time, but the ultimate target / objective will still be
      0 PPM (unless otherwise specified by YEL / YWT / OEM).


YELK-S-F28                                                              March 15, 2006
Quality Agreement Rev. 05              13 of 14                                YEL SD
16.    Cost of Non-Quality

16.1. In the case of quality and supply concerns caused by Suppliers and
      accepted as justified by the Supplier, all costs incurred by YEL / YWT for
      time, labour, materials, additional freight, lack of output, plus any other
      associated costs will be fully charged back to the delinquent Supplier. This
      will be based upon the data collected via the GQRS-C system related to
      the length/magnitude of the concern/rejection

16.2. For each justified concern / rejection that arises an administration fee of
      100 Euros may be charged to the Supplier.


17.    Confidential Disclosure Agreement

       If for any reason during the approval / requalification process, YEL / YWT
       requires the Supplier to disclose proprietary or confidential information
       (see 5.8), YEL / YWT will request this in writing from the Supplier who may
       submit a Confidential Disclosure Agreement to YEL / YWT for official YEL /
       YWT signature.




YELK-S-F28                                                          March 15, 2006
Quality Agreement Rev. 05            14 of 14                              YEL SD

				
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Description: Parts Supplier Agreement document sample