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					MUSASHI SOUTH CAROLINA               AMENDMENTS                                    DOC NO:MSC-QM1
                                        Page 45 of 2                            SECTION: AMENDMTS

 TS Manual Amendment Record


         REVISION REVISION                                                                APPROVED
           DATE   NUMBER       CLAUSE                            CHANGE                      BY
          7/30/03    1     5- Mgmt. Resp.      Updated for organization changes              RSS
           7/6/04    2     5- Mgmt. Resp.      Updated for organization changes              RSS
          9/13/04    1     Forward             Distribution list revised to post on "S"      RSS
           3/1/05    3     5- Mgmt. Resp.      Updated for organization changes              RSS
           5/3/05    1     1-Scope             Revised scope statement, & expanded           RSS
                                               7.3 Product design exclusion detail
          8/31/05      4      5- Mgmt. Resp.   Updated for organization changes              RSS
                                               of responsibilities




                                                                                             Edition: 01
                                  Issued by: Ralph Sulser                                 Date: 04/02/03
                                Approved by: Keith Shepard                                        Rev. 0
MUSASHI SOUTH CAROLINA                                                INTRODUCTION                                                            DOC NO.:MSC-QM1
                                                                             Page 3 of 45                                                         SECTION#: 00



                                                                                                              CL.     REVISION             NO. OF
          SECTION NO.                                           TITLE                                         REF.      NO.                PAGES
                      0                  Introduction                                                                         0              5
                                     -    Table of Contents                        0.1
                                     -    Foreword                                 0.2
                                     -    Structure of the Manual                  0.3
                                     -    Manual Issue Procedure                   0.4
                                                                                   0.5
                                     -Manual Revision, Updating & Amendment Procedure
                                     -    Company Profile
                                     -    Distribution List +                      0.6 -0.7                                   1

                      1              Scope                                                              1                     0              1
                                     -         General                                                  1.1
                                     -         Application (Exclusions, if any)                         1.2


                      3              Terms and Definitions                                              3                     0              1


                      4              Quality Management System                                          4                     0              3
                                          -     General Requirement                                     4.1
                                     -         Documentation requirement                                4.2
                                     -        General                                                      4.2.1
                                     -        Quality Manual                                               4.2.2
                                     -        Control of Documents                                         4.2.3
                                     -        Control of Records                                           4.2.4

                                     +May not be part of the "Uncontrolled Copy”
                                     of this Manual which is meant for distribution to External Agencies.



                                                                                                              CL.     REVISION             NO. OF
          SECTION NO.                                            TITLE                                        REF.      NO.                PAGES


                                                                                                                     3 Updated positions
                      5              Management Responsibility                                          5            resp. 3/01/05           7
                                     - Management Commitment                                            5.1
                                     - Customer Focus                                                   5.2
                                     - Quality Policy                                                   5.3
                                     -     Planning                                                     5.4
                                     -    Quality Objectives                                               5.4.1
                                     -    Quality Management System Planning                               5.4.2
                                     - Responsibility, Authority & Communication                        5.5
                                     -    Responsibility & Authority of Managers                        5.5.1
                                     -    Management Representative                                         5.5.2
                                     -    Internal Communication                                            5.5.3
                                     -   Management Review                                              5.6
                                     -    General                                                           5.6.1
                                     -    Review Inputs                                                     5.6.2
                                     - Review Outputs                                                       5.6.3


                      6              Resource Management                                                6                     0              2
                                     -         Provision of Resources                                   6.1
                                     -         Human Resources                                          6.2
                                     -          General                                                    6.2.1
                                     -          Competence, Awareness & Training                           6.2.2
                                     -         Infrastructure                                           6.3
                                     -         Working Environment                                      6.4
         Note: Printed documents are not controlled copies-check master computer files for latest revisions                                           Edition : 01
                                                                 Issued by: Ralph Sulser                                                            Date: 09/13/04
                                                               Approved by: Keith Shepard                                                                   Rev. 1
MUSASHI SOUTH CAROLINA                                                INTRODUCTION                                                  DOC NO.:MSC-QM1
                                                                             Page 4 of 45                                               SECTION#: 00


                                                                                                              CL.     REVISION   NO. OF
          SECTION NO.                                            TITLE                                        REF.      NO.      PAGES
                                                                                                                          0        7
                      7              Product Realization                                  7
                                     - Planning of Product Realization                    7.1
                                     - Customer Related Processes                         7.2
                                     - Determination of requirements related to the product 7.2.1
                                     -Review of Requirements related to the product       7.2.2
                                     - Customer Communication                             7.2.3
                                     -     Design & Development                           7.3
                                     -      Purchasing                                    7.4
                                     -     Purchasing Process                             7.4.1
                                     -     Purchasing Information                         7.4.2
                                     -     Verification of Purchased Product              7.4.3
                                     -      Production & Service Provision                7.5
                                     -     Control of production and service provision    7.5.1
                                     *Validation of processes for                         7.5.2
                                          production and service provision
                                     -     Identification & Traceability                  7.5.3
                                     -     Customer Property                              7.5.4
                                     -     Preservation of product                        7.5.5
                                     -Control of Monitoring and Measuring Devices         7.6
                                     -     Measurement system analysis                    7.6.1
                                     -     Calibration/verification records               7.6.2
                                     -     Laboratory requirements                        7.6.3
                                     -     Internal Laboratory                            7.6.3.1



                                                                                                        CL.           REVISION NO. OF
          SECTION NO.                                                TITLE                              REF.          NO.      PAGES
                     8               Measurement, Analysis and                                                 8          0        3
                                     Improvement
                                           -     General                                                       8.1
                                           -     Monitoring & Measurement                                      8.2
                                           -     Customer Satisfaction                                        8.2.1
                                           -     Internal Audit                                               8.2.2
                                           -     Monitoring & Measurement of                                  8.2.3
                                           Processes
                                           -     Monitoring & Measurement of Products                         8.2.4

                                           -        Control of Non-conforming Product                          8.3
                                           -        Analysis of Data                                           8.4
                                           -        Improvement                                                8.5
                                           -        Continual Improvement                                     8.5.1
                                           -        Corrective Action                                         8.5.2
                                           -        Preventive Action                                         8.5.3




                      9              Section 2- Customer Specific requirements                                                     1
                     10              Amendment Record                                                                              1

         Annex                       Product Process Flow Chart , Process Approach                                        0        4
                                     Charts
         Annex                       Organization Chart                                                                   0        1
         Note: Printed documents are not controlled copies-check master computer files for latest revisions                        36




                                                                                                                                            Edition : 01
                                                                 Issued by: Ralph Sulser                                                  Date: 09/13/04
                                                               Approved by: Keith Shepard                                                         Rev. 1
MUSASHI SOUTH CAROLINA                                                INTRODUCTION                                         DOC NO.:MSC-QM1
                                                                             Page 5 of 45                                      SECTION#: 00



         Introduction
         0.2                         FOREWORD


         This Quality Manual describes the Quality Management System – Requirements adopted by Musashi South Carolina.
         The Manual lists the Procedures and measures stipulated for ensuring the quality of products manufactured by this unit.


         The Quality Management System has been formulated on the basis of ISO/TS 16949:2002(E) for MSC. This Section
         titled "Introduction" explains the Structure, Issue and Updating procedure of the Quality System Manual. This Manual
         and the information incorporated herein are the property of Musashi South Carolina. It must not be reproduced in whole
         or in part or otherwise disclosed without prior consent in writing from MSC.

         0.3                         STRUCTURE OF THE MANUAL



         This Quality Manual is structured as shown in the content pages of the Manual. Different sections are arranged
         sequentialy as per clause number of ISO/TS 16949:2002(E) and ISO 9001: 2000 (herein after called QMS Standard).
         The main clause number of QMS Standard has also been indicated along with title of each Section. For all Sections,
         relevant sub-clause numbers under the main clause of QMS Standard have been indicated in the text. Quality System
         Manual pages are numbered serially with page number indication. All pages of the Master Copy of each Section of the
         manual contain electronic signature(s) of the Issuing and Approving Authority of the manual. The current revision
         numbers and edition numbers on each page is also indicated. Revision no. ”0” has been given to first issue of the
         Section. This master manual is available in English Language only, and copies may be available in Japanese if required

         0.4                         MANUAL ISSUE PROCEDURE


         The TS16949 Coordinator/Management Representative is authorized by the Quality Control Manager, and the President
         to carry out the activities of preparing, issuing, maintaining and updating of this Quality System Manual.

         The distribution of the Manual and the amendment(s) are con-trolled and the TS16949 Coordinator/ Management
         Representative carries out this activity.


         The Master Copy contains the electronic signature of the approving and issuing authority in original. The Master files
         are in the controlled in the TS16949 Coordinator’s computer files, with restricted access. Printed Controlled Copies are
         red stamped "Controlled Document" on the first page. Uncontrolled copies issued to designated individual s (as per
         distribution list) are legibly photocopied from the Master Copy.
         Printed documents are not controlled copies-check master computer files for latest
         revisions.


         Additional copies of the Manual, required by external agencies, if any, are issued by the TS16949
         Coordinator/Management Representative and such copies of the Manual issued are not stamped in red. This indicates
         that the copies are not controlled by virtue of the non-red stamp due to the copy process. These uncon-trolled copies do
         not come under the control of the document amen-dment procedure, and are used for reference only, and are not used
         within the Company.



         The TS16949 Coordinator / Management Representative maintains a record of the distribu-tion list of the Quality
         System Manual. This list is used as reference for updating of the respective controlled copies.
         Note: Printed documents are not controlled copies-check master computer files for latest revisions




                                                                                                                                      Edition : 01
                                                                 Issued by: Ralph Sulser                                            Date: 09/13/04
                                                               Approved by: Keith Shepard                                                   Rev. 1
MUSASHI SOUTH CAROLINA                                                INTRODUCTION                                            DOC NO.:MSC-QM1
                                                                             Page 6 of 45                                         SECTION#: 00



         0.5 MANUAL REVISION, UPDATING AND AMENDMENT PROCEDURE

         The TS16949 Coordinator/ Management Representative in consultation with the related departments reviews the
         Quality System Manual periodically. No revision is implemented unless it has been approved by the Senior Manager
         Quality Control, then formally issued.

         Each revision is introduced formally by the TS16949Coordinator/ Management Represen-tative by issue of revised
         section(s) for each of the copies as per the Distribution List.


         When revisions take place, the revisions are indicated by the revision number in each of the revised sections and
         recorded in the Amendment Sheet (Refer Amendment Sheet) supplied with the controlled copies of the Manual. If there
         are more than 20 revisions, the complete manual is revised to the next edition number.


         The insertion of the additional/amended sections and the removal of the old sections in the individual controlled copies
         as per the distribution list of the Manual are the responsibility of the person holding the individual copy. All old sections
         so removed are crossed with an inscription of the marking "OBSOLETE" and returned to the TS16949 Coordinator/
         Management Representative who ensures that the same are destroyed.

          The TS16949 Coordinator/Management Representative retains one copy of the
          earlier version of the Section(s) in archives for Five Years.

         0.6                         COMPANY PROFILE

         In 1938, Musashi Seimitsu Industry Co. LTD, Toyohashi, Japan started its first
         Manufacturing operation in Musashino City, Tokyo. Business flourished and
         they soon became a major supplier of precision automotive components worldwide.

         Musashi Seimitsu has grown to include facilities in the United States, Thailand,
         United Kingdom, Brazil, Indonesia and Canada.


         Musashi South Carolina, Inc. was established on October 25th, 1999, and started production in 2001. The 120,000
         square foot main plant and 10,000 square foot assembly plant were built on 40.4 acres of land near Bennettsville, South
         Carolina. MSC produces ATV gears and assemblies and automotive differential gears.

         MSC is dedicated to the Team Philosophy. Teamwork is essential, and open communication is the cornerstone of all our
         processes.
         MSC's production areas are supported by several departments, including General Administration, Human Resources,
         Purchasing, Engineering, E/H/S, Quality Control, Maintenance and Tool and Die.


         QUALITY, CUSTOMER FOCUS, AND CUSTOMER SATISFACTION is a way of life at Musashi South
         Carolina. Our products are sold in the international automotive and ATV markets. Musashi products have an established
         reputation in the world market for excellence in quality, and customer focus.

         Musashi continually upgrades technology and customer focus for quality, to optimize product performance, superior in
         international world-class quality expectations.
         Note: Printed documents are not controlled copies-check master computer files for latest revisions




                                                                                                                                           Edition : 01
                                                                 Issued by: Ralph Sulser                                                 Date: 09/13/04
                                                               Approved by: Keith Shepard                                                        Rev. 1
MUSASHI SOUTH CAROLINA                                                INTRODUCTION                                     DOC NO.:MSC-QM1
                                                                             Page 7 of 45                                  SECTION#: 00



                                                     DISTRIBUTION LIST
                                     (Distributed uncontrolled copy by electronic e-mail)
                                     Posted on the "shared" computer file




                                     TS16949 Coordinator (Printed Controlled copy)                            Master
                                                                                                              Copy




         Note: Printed documents are not controlled copies-check master computer files for latest revisions




                                                                                                                              Edition : 01
                                                                 Issued by: Ralph Sulser                                    Date: 09/13/04
                                                               Approved by: Keith Shepard                                           Rev. 1
      MUSASHI SOUTH CAROLINA                                                SCOPE                       DOC NO.:MSC-QM1
                                                                               8 of 45                       SECTION# :1
1              SCOPE

1.1            General

MSC has adopted Technical Specification, ISO/TS 16949:2002(E) and Visteon Customer Specific Requirements, which
specifies the requirements for a Quality Management System in order to:


“Manufacture of Gears, and Gear Assemblies for the Automotive Industry”




Application

a)    Demonstrate ability to consistently provide product(s) that meet(s) customers’ standards, and applicable regulatory
requirements, and


b)   Enhance customer satisfaction through the effective application of the system, including the processes for continual
improvement of the system and the assurance of conformity to customer and applicable regulatory requirements.

The established system is applicable to the activities of the company plant located at One Musashi Drive,
Bennettsville, SC. The scope of implementation of this standard is as given below:


1.2

The following ISO/TS16949:2002 requirement is not applicable to MSC QMS, and therefore excluded from our scope:
Clause 7.3 activities related to Product Design and Development.
MSC does not have product design responsibility. All products are manufactured to customer drawings.




Note: Printed documents are not controlled copies-check master computer files for latest revisions
                                                                                                                     Edition: 01
                                                                Issued by: Ralph Sulser                           Date: 05/03/05
                                                              Approved by: Keith Shepard                                  Rev. 1
      MUSASHI SOUTH CAROLINA TERMS and DEFINITIONS                                                                      DOC NO.:-QM1
                                                                               9 of 45                                    SECTION#:3


3.0            TERMS, DEFINITION & ABBREVIATIONS

In this Quality System Manual and related procedures / instructions, following terms / definitions and
abbreviations have been used:

3.1            Terms and definitions:
                         Musashi South Carolina (MSC)
               Organization:

            Supplier: Organizations supplying the materials, parts and /or services to MSC

               Customer: The Customer /end user who buys the MSC products. It is also used for Internal
                         Customers
3.2            Abbreviations:

               QMS             Quality Management System                      NC              Non-conformance
               OPI             Operator Process Instructions                  FMEA            Failure Mode Effect Analysis
               T/L             Team Leaders                                   PPAP            Production Part Approval Process
               PC              Production Control                             APQP            Advanced Product Quality Planning
               MT              Maintenance                                    PH              Purchasing
               PC              Production Control                             PD              Production
               MGT             Management                                     CP              Control Plan
               SP              Standard procedure                             CAR             Corrective Action Request




Note: Printed documents are not controlled copies-check master computer files for latest revisions
                                                                                                                             Edition: 01
                                                                Issued by: Ralph Sulser                                   Date: 04/02/03
                                                              Approved by: Keith Shepard                                          Rev. 0
      MUSASHI SOUTH CAROLINA                              QUALITY MANAGEMENT SYSTEM                       DOC NO.:MSC-QM1
                                                                  Page 10 of 45                                SECTION#: 4




4.0 Quality Management System

4.1            General Requirements

The MSC has established, documented, and implemented a Quality Management System. The company maintains and
continually improves the effectiveness of our QMS in accordance with the requirements of ISO/TS 16949:2002
MSC has therefore:

a)    identified the processes needed for the quality management system, and their application throughout MSC, except for
the exclusion as mentioned at Section 1.0 (Refer 1.2), The outsource processes, if any, that affect product conformity with
requirements, have also been identified. Apart from their identification, the Company has also identified the controls over
their processes in order to ensure product conformity.
b)     determined the sequence and interaction of these processes (QC-PM-001 &001b) , and a typical bevel gear
Process Flow Diagram(s) shown in each part’s PPAP/QAV booklet. (located in the front of manual)
c)    determined the criteria and the methods needed to ensure that both the operation and control of these
processes are effective. This has been done while planning for the processes. (Refer Section 7.1).
d)     ensured the availability of resources and information necessary to support the operation and monitoring of
these processes (Refer Section 6 & 7.1). These have been determined and verified at the time of planning the
e)    decided to monitor, measure and analyze the above identified processes (Refer Section 8), and

f)     implemented actions necessary to achieve the planned results and deciding, the continual improvement of
these processes.
These processes are managed by MSC in accordance with the requirements of the QMS Standard.

4.1.1 MSC assures control over any outsourced processes and responsibility of same conforming to all customer
requirements.




Note: Printed documents are not controlled copies-check master computer files for latest revisions



                                                                                                                    Edition: 01
                                                                Issued by: Ralph Sulser                          Date: 04/02/03
                                                              Approved by: Keith Shepard                                 Rev. 0
      MUSASHI SOUTH CAROLINA                              QUALITY MANAGEMENT SYSTEM                        DOC NO.:MSC-QM1
                                                                  Page 11 of 45                                 SECTION#: 4



4.2            Documentation Requirements

4.2.1       General

The Quality Management System documentation of the MSC includes:



a) Documented statement of Quality Policy and Quality Objectives, (Refer Section 5.3 & 5.4.1 of this Manual)
b) Quality System Manual,
c) Documented procedures wherever required by ISO/TS 16949:2002 and where the absence of these procedures
can affect the quality of the product.
d) Applicable documents needed by the Company to ensure the effective planning, operation and control of its
processes, and
e) Quality Records specified by this standard required for demonstrating the objective evidence of having carried
out the activity.
The Company has developed document structure as given below:

               Level           1- Quality System Manual
               Level           2- Standard Procedures
               Level           3 -Operator Process Instructions
                                    Work Instructions
                                    Process Flow Diagrams
                                    Drawings / Specifications
               Level           4- Checksheets, Charts, Forms, Tags


MSC has established procedures to conform with those specified in the Standard and identified as “Documented
Procedures”. These have been established, documented, implemented and maintained. While planning for the
processes, apart from the required procedures, other procedures and guidelines / work instructions have also
been identified based on the type of the activity, complexity of the processes and the existing competence of the
personnel.




Note: Printed documents are not controlled copies-check master computer files for latest revisions




                                                                                                                       Edition: 01
                                                                Issued by: Ralph Sulser                             Date: 04/02/03
                                                              Approved by: Keith Shepard                                    Rev. 0
     MUSASHI SOUTH CAROLINA                               QUALITY MANAGEMENT SYSTEM                       DOC NO.:MSC-QM1
                                                                  Page 12 of 45                                SECTION#: 4



4.2.2          Quality Manual
MSC has established and maintains a Quality Manual that includes the applicable Scope of the Quality
Management System (Refer Section 1.1) . Procedures established have been referenced in the relevant Sections.
Wherever no procedures are required, the required methodology as adopted and implemented to meet the
requirement of the standard have been explained in the Manual itself. The interaction between the processes(QC-
PM-001) of the Quality Management System have also been described in the Manual and by including the
Process Flow Diagram(s) of the product(s) processed by the Company.

4.2.3          Control of Documents
Documents required by Quality Management Systems (refer documentation structure under 4.2.1) are controlled.
The Company has established a “Documented Procedure” which defines the controls needed to effectively
implement the Quality Management Systems.

The controls defined in the procedure include the methods:

a)    To approve documents for adequacy prior to issue, from designated approving authorities,
b)     To review and update, as necessary, as a part of improvement of the management systems and re-approve
the documents after modifications by the designated approving authorities,
c)    To ensure that changes and the current revision status of documents are identified through establishing
distribution and maintaining revision / issue number.
d)     To ensure that relevant versions of applicable documents are available at the points of use.
e)    To ensure that documents, while distributing and use, remain legible and are readily identifiable by their
document numbers, revision status and/or titles,
f)      To ensure that documents of external origin like customer drawings, international / other national standards are
identified and updated periodically and their distribution controlled.
g)     To prevent the unintended use of obsolete documents by eliminating same and substituting with revised version, and to
apply suitable identification to them if they are retained for any legal / reference purposes.

4.2.3.1 A system has been established and maintained to assure timely review distribution
        and implementation of all customers engineering standards/specifications and
        changes. Timely review shall not exceed two working weeks.
        A record will be maintained of the date each change is implemented, and corresponding document changes

               Procedure No.: QC SP 003 -Document Control


4.2.4          Control of Quality Records
While planning for the processes (Refer Section No. 7.1), the MSC has determined, established and maintained
applicable “Quality Records” which provide evidence of conformity to requirements [including regulatory and
customer requirements] and of the effective operation of the Quality Management System. These quality records
serve as the objective evidence and are part of the Quality Management Systems. Quality records are maintained
in such a manner that these remain legible, readily identifiable and retrievable.
MSC has established a documented procedure which defines the controls needed for identification, storage,
protection, retrieval, retention time, and disposition of records.
4.2.4.1 Records retention controls shall satisfy regulatory, and customer requirements if these differ from MSC
company policies.              Procedure No.: QC SP 004 - Control of Records


Note: Printed documents are not controlled copies-check master computer files for latest revisions


                                                                                                                     Edition: 01
                                                                Issued by: Ralph Sulser                           Date: 04/02/03
                                                              Approved by: Keith Shepard                                  Rev. 0
      MUSASHI SOUTH CAROLINA                                   MANAGEMENT RESPONSIBILITY                         DOC. NO.;MSC-QM1
                                                                               Page 13 of 45                           SECTION #: 5



5.0 Management Responsibility
5.1 Management Commitment
The MSC management is committed to the development and implementation of the quality management system
and continually improve its effectiveness by:

a)    Communicating to all employees of the company: the importance of meeting customer as well as
statutory and regulatory requirements through regular training programs, display of documents and
departmental meetings, communication meetings, and manag
b)    Establishing the quality policy based on the improvement objectives,
c)    Ensuring that quality objectives are established,
d)    Conducting regular management reviews, and
e)    Ensuring the availability of resources for improvements when required.

f)      Product realization process and support processes are reviewed for their effectiveness and efficiency

5.2            Customer Focus
The Top Management of MSC ensures that customer requirements are determined and fulfilled with the aim of enhancing
customer satisfaction. While reviewing the requirements, the implied needs and expectation of the customer are also
identified. These are conveyed to the respective functions for ensuring that they are met. As a part of Management Review
(Refer 5.6 below) , a focus is made for communicating the customer requirements to all functions and ensuring product
conformance.

Methods of determining customer requirements, expectations and satisfactions are defined in the procedures

               MGT SP 001                      Contract Review (Product Requirement Review)
               QC SP 023                       APQP (Planning for product realization)
               QC-SP-007                       Failure Mode And Effect Analysis

5.3            Quality Policy

The Management of the company has defined the quality policy ensuring that the quality policy
a)   is appropriate to the purpose and organizational goals of the company,

b)  includes a commitment to comply with requirements and continually improve the effectiveness of the quality
management system,
c)  provides a framework for establishing and reviewing quality objectives,

d)     is communicated to all employees of the company and is understood at all levels in the company,

e)     is periodically reviewed for continuing suitability.




Note: Printed documents are not controlled copies-check master computer files for latest revisions




                                                                                                                           Edition: 01
                                                                     Issued by: Ralph Sulser                            Date: 08/31/05
                                                                   Approved by: Keith Shepard                                   Rev. 4
     MUSASHI SOUTH CAROLINA                                    MANAGEMENT RESPONSIBILITY                           DOC. NO.;MSC-QM1
                                                                               Page 14 of 45                             SECTION #: 5



The Policy of the company has been displayed at strategic locations and also distributed to all employees. Periodic Training
Programs are held for understanding by all the functions through out the organization. Quality Policy distribution and display
records are maintained.
The policy of Musashi South Carolina is to achieve total customer satisfaction by delivering products and providing services
that meet or exceed customer quality requirements and expectations. Deliver on time, and at the most competitive prices in
domestic and export market for our entire product range.
It is implied that all people at all levels in our organization be committed to comply with requirements and continually
improve the effectiveness of the Quality Management System and their performance. Ultimate goal of working towards
achieving zero defects. Necessary measures are also taken towards product safety, and environmental needs to minimize
potential risks to employees, and subsequent end users.

Our mission is to make Musashi South Carolina a synonym for a world-class organization excelling in gear, and gear
assembly manufacturing.

MSC Senior Management, Department Managers, Assistant Managers, and area Team Leaders shall ensure that this policy is
understood, implemented and maintained by all personnel in their respective division / department / section.



                                  QUALITY POLICY
“MSC will continually strive to produce quality products that meet
or exceed customer expectations, cost competitiveness, and timely
deliveries – QCD (Quality, Cost, Delivery) – through exercise of
continual improvement, employee support, and customer
communication.”




Dated: 03/20/2003                                                             S. Okubo               President




Process interactions of achieving product realization are described on QC-PM-001. Outlined below are
typical duties, and inputs of the department management to focus on objectives, and
 customer satisfaction. Current plant organizational charts are on file in H.R.

Note: Printed documents are not controlled copies-check master computer files for latest revisions




                                                                                                                             Edition: 01
                                                                     Issued by: Ralph Sulser                              Date: 08/31/05
                                                                   Approved by: Keith Shepard                                     Rev. 4
     MUSASHI SOUTH CAROLINA                                    MANAGEMENT RESPONSIBILITY                           DOC. NO.;MSC-QM1
                                                                               Page 15 of 45                             SECTION #: 5




5.4 Planning
5.4.1 Quality objectives
Top management ensures that quality objectives, including those needed to meet requirements for product [see 7.1 a)] are
established at relevant functions and levels within the organization. The quality objectives are measurable and consistent
with the quality policy.

Top management defines quality objectives and measurements that are included in the business plan and used to deploy the
quality policy.
Quality objectives address customer expectations and achievement goals within a defined time period.
5.4.2 Quality management system planning
Top management ensures that
a) the planning of the quality management system is carried out in order to meet the requirements given in 4.1, as well as
the quality objectives, and
b) the integrity of the quality management system is maintained when changes to the quality management system are
planned and implemented.

5.5 Responsibility, authority and communication
5.5.1 Responsibility and authority
Top management ensures that the responsibilities and authorities are defined and communicated within the organization.

1.          President - Musashi South Carolina
 The senior most executive at the plant and designated as President, and has responsibility for the entire operation..
 Approves customer and supplier contract review actives.
 Approves the company's policies and gives directions for managing the objectives, and company activities.
 Approves the MSC's quality policy and objectives.
 Responsible for providing essential resources and personnel for implementation of the quality policy, and quality
management system.
 Responsible for effective implementation of the quality management system.
 Through leadership and actions, the President creates an environment where people are fully involved, and in which a
QMS can operate effectively.
 Reviews customer scorecards for Visteon, and other customers, on their web sites
 Chairman of the Management Review Committee.

2.     Senior Manager Engineering/Maintenance
 Overall responsibility for planning, coordinating & managing activities related to functions of Manufacturing
Engineering, Maintenance, Projects.

 Preventive/Predictive Maintenance, Tool/Die, Mechanical, Electrical, Compressor, pump house and LPG and all utilities
 Manages, and coordinates any modifications to be carried out in the existing operations or enhancing the efficiency of
the plant.
 Responsible for building the required competency level in the employees reporting to him.

 Assisted by Manufacturing Engr. Mgr, Maint. Manager.
 Authorized for approval of production processes in the plant.
 Authorized for taking corrective & preventive action in case of deviations in the operations.
 Authorized to “STOP PRODUCTION” if systems are not being implemented.
 Developing facilities, processes and equipment, and contingency plans.
 Supporting QMS activities including regulatory requirement if any, for the products.

 Reports to the Plant President.

Note: Printed documents are not controlled copies-check master computer files for latest revisions

                                                                                                                                Edition: 01
                                                                     Issued by: Ralph Sulser                                 Date: 08/31/05
                                                                   Approved by: Keith Shepard                                        Rev. 4
     MUSASHI SOUTH CAROLINA                                    MANAGEMENT RESPONSIBILITY                          DOC. NO.;MSC-QM1
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3.      Senior Manager – Quality Control
Responsible for quality systems, procedures, and instructions for the plant
    Monitoring the Process for outputs.
    Providing Test Status on In-coming, In-process and Finished Products
    Documenting trends in quality and current quality levels.
    Controlling of non-conforming products.
    Authorized for dispositioning deviations on Non-conforming products for use at next stages.
    Authorized for release of finished product.
    Obtaining waivers from customer on non-conforming finished products.
    Developing and implementation of plans for customer complaint resolution.
    Assessment of Preliminary (Ppk) and on going process capabilities (Cpk).
    Preparing details for Production Part Approval Process.
    Inspection and testing at incoming, in process and final stages
    Controlling the procedures for In-coming, In-process and Final Inspection Stages
    Calibration of all identified inspection, measuring and test equipment.
    Authorized for providing inspection and test status on all products.
    Identifying and implementing statistical technical techniques for process and product.
    Verifying the effectiveness of corrective and preventing actions.
    Issuing and maintaining originals and withdrawal of obsolete APQP documents, process standards, drawing and
documents of external origin.
    Production Part Approval Process (PPAP&PSW) and liaison with customers for same
    Establishing, and maintaining customer communication channels.
    Monitoring and Measuring Customer Satisfaction metrics.
    Representing the needs of the customer in internal functions in addressing the ISO/TS 16949 requirements.
    Assisted by Quality Control Mgr. QC, QC Technicians, QC Associates, TS16949 Coordinator
    Reviews and maintains scorecards for Visteon, and other customers, weekly on their web sites
    Designated as Customer Representative to ensure customer requirement are met, and contact for quality issues.


·     Representing the needs of the customer in internal functions addressing the product realization planning (APQP) for
ISO/TS 16949 requirements (e.g. selection of special characteristics, setting quality parameters.
     Develops manufacturing process design quality controls including Process Flow Diagram, FMEAs, Control Plans and
Process Standards, and Inspection Standards.
 Authorized to “STOP PRODUCTION” if systems are not being implemented.

      Reports to the Plant President


Note: Printed documents are not controlled copies-check master computer files for latest revisions




                                                                                                                               Edition: 01
                                                                     Issued by: Ralph Sulser                                Date: 08/31/05
                                                                   Approved by: Keith Shepard                                       Rev. 4
     MUSASHI SOUTH CAROLINA                                    MANAGEMENT RESPONSIBILITY                                DOC. NO.;MSC-QM1
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4. Senior Manager Production/Production Control/New Sales
       Overall responsibility for planning, coordinating & managing activities related to functions of Production
      Purchasing of manufacturing materials, and supplier monitoring.
      Production scheduling of all products
      Control of customer-supplied products, and packaging
      Receiving, storage and issue of products, and packaging.
      Reviewing, approving and maintaining effectiveness of the procedures for the above activities.
      Disposal of scrap, and waste.
      Handling storage, preservation, identification and test status of all products during receipt, storage,
      Ensuring 100% on time delivery to customer.
      Inventory management of purchased products, WIP and finished product.
      Checking adequacy of FIFO.
      Supplier performance tracking
      Supporting QMS requirements related to these functional areas.
      Assisted by Production Control Manager, and Coordinators.
      Reviews customer scorecards for Visteon, and other customers, on their web sites
      Preparing and submitting the quotation offer to customers.
      Receipt of order / dispatch schedules from customer.
      Review of customer’s order for correctness.
      Resolving any differences between the inquires and potential orders.
      Communicating customer’s requirement to concerned personnel in the company.
      Interaction with Customer for product development and all contract review activities
       Also responsible for EHS, ISO14001 and assisted by the EHS Administrator
      Assisted by Managers, and Assistant Managers for Forging, Lathing, Heat Treat/Assembly, for these activities.
     Guiding and supporting QMS activities including regulatory requirement if any, for the products.
     Reviews customer scorecards for Visteon, and other customer rating systems
    Authorized for approval of production processes in the plant.
    Authorized for taking corrective & preventive action in case of deviations in the operations.
    Authorized to “STOP PRODUCTION” in his area, if systems are not being implemented.

      Reports to the Plant President
5.    Accounting Manager
      Overall responsibility for all accounting, finance, and supplies purchasing functions in the plant.
      Assists in guiding and supporting QMS related activities in those functions such as purchased supplies, tooling, and
stores.
      Assisted by the, Assistant Manager of Accounting, and the Assistant Manager Purchasing/Buyer, Accounting
Coordinator, and IT Administrator for these activities.
      Reports to the Plant President.

6.       Manager– Human Resources
       Responsible for coordinating with departmental heads to obtain staffing.
       Determine the training needs related to managers, staff, associates, temporaries, probationers, and trainees.
       Identifies, and implements training, and employee motivation needs.
       Also responsible for public affairs, and industrial relations to enhance productivity.
       Assisted by the H.R. Assistant, and Payroll Coordinator.
       Reports to the Plant President.




Note: Printed documents are not controlled copies-check master computer files for latest revisions




                                                                                                                                 Edition: 01
                                                                     Issued by: Ralph Sulser                                  Date: 08/31/05
                                                                   Approved by: Keith Shepard                                         Rev. 4
     MUSASHI SOUTH CAROLINA                                    MANAGEMENT RESPONSIBILITY                          DOC. NO.;MSC-QM1
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7. MSI Engineering- Japan

    Reviewing, recommending and providing guideance for effectiveness of the procedures on Product requirement
Review – Manufacturing Process Designing and Development; Plant Facilities and Equipments Provisioning,
    Developing guidelines of new products planning.
    Reviewing customer engineering specifications and standards.


8.    President - Sales and Marketing-Musashi North America, Detroit, MI
      Receipt of Inquiries from the customers, review, and passes thyrough to Musashi South Carolina
      Coordinating with MSI, MSC President for planning future business
      Assists in assessments of customer satisfaction.
      Reports to President Musahi North America

9.    Management Representative ( Ref. 5.5.2 )

The Management of the company has appointed the TS16949 Coordinator, as Management Representative, who, irrespective
of other responsibilities, has the responsibility and authority that includes:
Management Representative (MR) / TS16949 Coordinator, Quality Controlare responsible for
           Establishing, implementing and maintaining quantity system in accordance with ISO/TS 16949:2002 (E)
           Reporting the performance of the Quality System for Management Review, which forms the basis for
     improvement of Quality System.
           Liaison with internal and external parties on matters relating to Quality System.
           Ensuring timely management review of the Quality System.
           Organizing Audit Summary Report, and summary of the Preventive Actions for Management Review.
           Approving and ensuring effectiveness of procedures on Document Control, Quality Management System Auditing
     and Records Control.
           Preparation and issue of Quality System, and Procedures Manuals
           Maintaining original documents and their master lists and issue of Quality System Manual, all Quality System
     Procedures, all work instructions, and samples of all formats
Identification of training needs for building a team of internal quality auditors




5.5.1.1 Responsibility and authority of managers
Managers with responsibility and authority for corrective action are promptly informed of products or processes that do not
conform to requirements.
Personnel responsible for product quality have the authority to stop production to correct quality problems.
Production operations across all shifts are staffed with personnel in charge of, or delegated responsibility for, ensuring
product quality.

5.5.2 Management representative
Top management has appointed the TS16949 Coordinator-Quality Control who, irrespective of other responsibilities, has the
responsibility and authority that includes:
a) ensuring that processes needed for the quality management system are established, implemented and maintained,
b) reporting to top management on the performance of the quality management system and any need for improvement, and
c) ensuring the promotion of awareness of customer requirements throughout the organization.
d) liaison with external parties on matters relating to the quality management system.
Note: Printed documents are not controlled copies-check master computer files for latest revisions




                                                                                                                             Edition: 01
                                                                     Issued by: Ralph Sulser                              Date: 08/31/05
                                                                   Approved by: Keith Shepard                                     Rev. 4
     MUSASHI SOUTH CAROLINA                                    MANAGEMENT RESPONSIBILITY                      DOC. NO.;MSC-QM1
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5.5.2.1 The Sr. Manager-Quality Control has been designated as Customer Representative to assure customer requirements
are addred within MSC. Visteron will be notified of any changes to customer rep., or senior mgmt.
5.5.3 Internal communication
The Management of the MSC ensures that appropriate communication processes are established within the company and that
communication takes place regarding the effectiveness of the quality management system, and actions to be taken on non-
conformances encountered in the activities including customer communication.

5.6 Management review
5.6.1 General

Top Management of MSC reviews the company’s quality management system, at planned intervals to ensure its continuing
suitability, adequacy and effectiveness. The Quality Management System of the company is reviewed by the Management
Review Team that comprises all Managers of Departments under the Chairmanship of the President.

The review includes assessing opportunities for improvement and the need for changes to the quality management system,
including the quality policy and quality objectives. Management Representative maintains records of management reviews.
5.6.1.1 Quality Management System Performance-Input
-      All requirements of the quality management system, performance, and trends for continual improvement.
-      Monitoring quality objectives
-      Regular reporting and evaluation of cost of poor quality
-      Evidence of achieving: quality objective specified in the business plan
-      Evidence of customer satisfaction with products supplied
5.6.1 Review input

The input to management review in the form of Agenda for Management Review Team meeting includes information for the
period under review on sections of applicable QMS STANDARDS. However, more focus is placed on the following:
a)    Business Plan/Quality objectives
b)    Cost of poor quality
c)    Customer satisfaction, feedback, (Customer perceptions & Complaints)
d)    Analysis of actual and potential field failures and their impact on quality, safety or the environment
e)    Follow-up actions from previous management reviews,
f)     Results of internal/external audits including the trends,
g)     Process performance and product conformity,
h)    Status of preventive and corrective actions,
i)     Planned changes that may affect the quality management system, and
j)     Recommendations for improvement especially for product / process characteristics,
k)     Status and results of Quality objectives and Quality Improvement Programs,
l)     Performance of Suppliers, e.a., monthly ratings for quality, and delivery
5.6.2.1 Additional Review Inputs
a) Management analysis of actual and potential field failures, and their impact on quality, safety, or the environment.
b) Measurements at specified stages of design and development will be defined, analyzed, and reported with summary
results. Items such as quality risks, costs, lead times, critical paths, and others as appropriate.
5.6.3 Review output
The minutes of the management review meeting are recorded and maintained for a specified period. The output from the
management review in the form of minutes of meeting and action plans include any decisions and actions related to:
a) Improvement of the effectiveness of the quality management system and its processes,
b) Improvement of product related to customer requirements, and
c) Resource needs support
                                  Procedure No. QC SP 001 – Management Review
                                   Management Review Form: QC-F-MR418
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                                                                                                                         Edition: 01
                                                                     Issued by: Ralph Sulser                          Date: 08/31/05
                                                                   Approved by: Keith Shepard                                 Rev. 4
      MUSASHI SOUTH CAROLINA                                  RESOURCE MANAGEMENT                           DOC NO.: MSC-QM1
                                                                          Page 20 of 45                          SECTION#: 6


6     Resource Management

6.1            Provision of Resources

MSC determines and provides the resources, such as competent personnel, proper working environment and adequate
infrastructure needed to implement and maintain the Quality Management System and continually improve its effectiveness.
Equipment and instruments needed for work and verification are identified, procured. Procedures are issued to ensure that
these are fit for use in carrying out work and verification activities.

Department Managers identify the resources required for implementing, performing and verification activities related to
MSC’s quality management systems. These are further examined, reviewed and provided as and when required to enhance
customer satisfaction by meeting customer requirements. These resources are identified at the time of planning for product
realization and periodically reviewed (Refer Section No. 7.1 ). Necessary identified resources are planned and provided to
meet the requirements.

6.2            Human Resources

6.2.1          General


MSC has identified the competence level required for the personnel carrying out the activities in different areas of operations
and production departments. The “Job Description (Profiles) for all functions have been defined on the basis of requirements
related to appropriate education, training, skills and experience for the specific jobs. Hence the personnel performing such
work, which affects product quality, are assigned the tasks on the basis of defined competence. The job descriptions are also
used for identifying the training needs of the personnel to ensure they are competent to do their assigned activities.

6.2.2        Competence, Awareness and Training

MSC has established a documented procedure for Training. Through this procedure, the training needs of personnel are
identified to ensure competence for carrying out their activities. The controls exercised for making the personnel competent
are:

a)     To determine the required minimum competence for the personnel performing work affecting product quality in terms
of criticality of the process through defined “Job Description (Profiles) (Refer Section 6.2.1 above),

For process design responsible personnel this includes competence on design tools and techniques
a)    To provide structured / unstructured training (i.e. technical college courses, on job training / coaching under the
supervision of their seniors) to the identified personnel to satisfy and meet their training needs. On the job training is
provided to all the personnel including temporary/contract personnel whenever there is any new or modified job/process
affecting product quality is incorporated. During this training, associates are informed of the consequences to the customer
of non-conformity to quality requirements.
b)    To evaluate, after a defined period, the effectiveness of the structured / unstructured training provided, toward progress
in their achievements:
c)    To ensure that the MSC associates are fully aware of the relevance and the importance of their activities including their
involvement and contribution to the achievement for the identified quality objectives.
d)    To maintain records of education, training, skills and experience of all associates as quality records. These records also
help in determining the need for multi-skill training requirements, if any. (Refer to Skill Maps for each department)
f) A documented procedure has been established and maintained for employee motivation and empowerment for achieving
quality objectives, continual improvement and promote innovation. A process is in place to ensure that personnel are aware
of the relevance and importance of their activities and contribution in achieving quality objectives.
                                   Procedure:         HR SP 001        Training
                                                      HR SP 002        Resource Management
Note: Printed documents are not controlled copies-check master computer files for latest revisions

                                                                                                                       Edition: 01
                                                                Issued by: Ralph Sulser                             Date: 04/02/03
                                                              Approved by: Keith Shepard                                   Rev.: 0
      MUSASHI SOUTH CAROLINA                                  RESOURCE MANAGEMENT                             DOC NO.: MSC-QM1
                                                                          Page 21 of 45                            SECTION#: 6




6.3            Infrastructure
MSC identifies and determines, with a multidisciplinary approach, the required infrastructure at the time of Planning for
Product Realization (Refer Section No. 7.1 ). The infrastructure considered during planning includes:
a)    adequate buildings for storage, processing, inspections
b)    adequate workspace for working and house keeping, processing and storage
c)    required associated utilities like power, compressors, water supply, fuel supply, utilities etc.;
d)    required process equipment / machinery (both hardware and software) which can meet needs for converting the inputs
into required outputs at relevant stages of processing, and can meet the customer requirements.

e)    supporting services, such as transport for movement within and outside of MSC and required means of communication.
f)     Plant layout is developed in such a way so that it optimizes material travel; handling and value added use of floor
space, and facilitates a synchronous flow of material. A system is in place to evaluate and monitor the effectiveness of
existing operation.
g)    A contingency plan is prepared and followed in all manufacturing departments to ensure supply of products in the event
of emergency such as utility interruptions, labor shortage, key equipment failure and field returns.


As per the identified requirements, MSC provides the infrastructure needed to achieve conformity to product requirements.
MSC has also established a documented procedure, and preventative maintenance schedule matrix for maintaining the above
infrastructure by conducting preventive, condition monitoring and break-down maintenance in order to ensure continuing
suitability. The data related to maintenance is analyzed and maintenance objectives are established for continual
improvements.

                               Procedure:                     QC SP 024 Contingency Plan
                                                              MT-SP-001- Procedure for Preventative Maintenance(update-CG)


6.4            Work Environment

MSC determines and manages the required work environment needed to achieve conformity
to product requirements as per documented process. At the time of planning for Product Realization
(Refer Section No. 7.1 ), the requirements of Work Environment are considered and examined and
wherever required, reviewed upgrading. The following applicable work environment factors
 are considered at the time of planning:


     Temperature, humidity, vibration, air quality, noise, lighting, as appropriate to the nature of the work being performed.

6.4.1 Personnel safety to achieve product quality
Product safety and means to minimize potential risks to employees, and customers are addressed by MSC, especially in the
design and development process and in manufacturing process activities.
    Human factors such as ergonomics (space required for effective working), and need for the use of personal protective
equipment (PPE).

6.4.2 Cleanliness of premises
MSC maintains the premises in a state of order, cleanliness, and repair consistent with the product and manufacturing needs.

Cleanliness of premises is maintained using 5S check lists to ensure the premises in a state of order, cleanliness and repair.

The work conditions and environment are continually improved for meeting the product requirements. These requirements
are met by providing the adequate facilities and conducting regular maintenance for their upkeep.
Note: Printed documents are not controlled copies-check master computer files for latest revisions

                                                                                                                          Edition: 01
                                                                Issued by: Ralph Sulser                                Date: 04/02/03
                                                              Approved by: Keith Shepard                                      Rev.: 0
     MUSASHI SOUTH CAROLINA                                    PRODUCT REALIZATION                           DOC NO.:MSC-QM1
                                                                          Page 22 of 45                           SECTION#: 7

7.0 Product Realization
7.1   Planning of Product Realization

MSC uses a multi-disciplinary approach for Planning for the products realization [using advance product quality process].
While Planning for product realization, it is ensured that the requirements of the other processes of the Quality Management
System (see 4.1) are consistent with the anticipated requirements.

Product and process regulatory requirements are also given due consideration during the development and preparation of
relevant Process Control Documents. The resources, infrastructure, work environment and competency of required personnel
are identified.

7.1.1 Customer requirements and references or differences to the specified technical specifications are included in the planning.

The following are considered, as appropriate, at the time of development, updating / modification for improvement in the existing process:
a)    identified quality objectives and requirements for the product; [7.1.2 Acceptance criteria are defined by the company, and approved
by the customer if required. The acceptance level for attribute data sampling is always zero defects.]
b)    the need to establish processes, documents, and provide resources specific to meet the requirements of the product;
c)    required verification, validation, monitoring, inspection and test activities specific to the products processed at relevant stages of
processes and the criteria for the product acceptance; Acceptance criteria for attribute data sampling is zero defects.
d)    7.1.3 Confidentiality of customer contracted product/projects and related product information.
e)    records needed to provide objective evidence that the realization processes and resulting product fulfill requirements.

The business risks, the FMEAs (failure modes), their current status (i.e. Severity, Occurrence, Detection criteria) are studied and the
required controls are identified. If upgrades are required for improvements, then action plans are initiated.
The output of this planning in the form of a Control Plan, FMEA, Operator Process Instructions, or process control standards (PCS),
quality inspection plans are made and provided at the relevant stages of processing for implementation.
7.1.4 A system is in place to control and react to changes that impact product realization. Assessment, verification, validation is done for
the changes including the changes by the supplier.
             Procedure No.              MGT-SP-001               Contract Review
             Procedure No.             QC SP 023        Advanced Product Quality Planning


7.2 Customer Related Processes
7.2.1 Determination of Requirements Related to Product
The organization has established a documented procedure to determine:

-      requirements related to product including those specified by the customer, not stated by the
        customer and statutory and regulatory requirements;
-      conformity to customer requirements for designation, documentation, and control of special
        characteristics;
-      review of requirements related to product prior to supply and resolving any differences;
-      amendments of relevant documents if product requirements are changed;
-      investigating, conforming and documenting the manufacturing feasibility of the proposed product
-      determining and implementing effective arrangements with the customer; and
-      ability to communicate necessary information in customer specified language and format
7.2.1.1 Customer designated special characteristics are identified for conformance according to
customer requirements of the designation, documented and controlled
7.2.2          Review of Requirements Related to Product
MSC reviews the requirements related to the product. This review is conducted via a check list prior to the organization's commitment to
supply products to the customer and ensures that:
a)   Product requirements including delivery schedules, packing requirements are clearly defined. Where the customer provides no
documented requirements, the customer requirements are confirmed before acceptance by: phone calls, e-mails, meetings, letters.
b)   Contract or order requirements differing from those previously expressed are resolved, and
Note: Printed documents are not controlled copies-check master computer files for latest revisions
                                                                                                                       Edition: 01
                                                                Issued by: Ralph Sulser                             Date: 04/02/03
                                                              Approved by: Keith Shepard                                    Rev. 0
     MUSASHI SOUTH CAROLINA                                    PRODUCT REALIZATION                          DOC NO.:MSC-QM1
                                                                          Page 23 of 45                          SECTION#: 7

c)    MSC has the ability to meet the defined requirements.
d)    Manufacturing feasibility including risk analysis is investigated, confirmed and documented before contracting.
e)    In case any formal review of the contract is not applicable, prior authorization from the customer is obtained before proceeding with
the contract.
Records of the results of the review and actions arising from the review as quality records are also maintained.
 If any amendments to product requirements are received from the customer, MSC ensures that these are reviewed for ability to supply,
and the relevant documents are amended accordingly. The modified documents are conveyed to relevant functions for making them aware
of the changed requirements for immediate compliance.
              Procedure No.            MGT-SP-001                 Contract Review
              Procedure No.            QC SP 023                  APQP

7.2.3          Customer communication

MSC has determined and assigned responsibilities for implementing effective arrangements for communicating with customers in relation
to:
a) Product information through customer visits, meetings, letters, e-mails, and web site.
b)    Inquiries, contracts or order handling, including amendments, and
c)    Customer feedback, including resolving customer complaints. Such feedbacks from customer are reviewed and analyzed for root
cause of the problems through problem solving techniques. The decisions taken for corrective and preventive actions including further
improvements in the products / processes.
d)    Where required by the customer, necessary information including data is communicated to customers in their specified language and
format. (web sites, e-mail, electronic data exchange)

               Procedure No.            MGT SP 001 - Procedure for Contract Review
                                        QC SP 019 - Corrective Action (Includes Customer complaint response)
                                        QC SP 011 - Procedure for internal & External Customer Satisfaction

7.3.2        Design and Development Planning

MSC only manufactures products from customer provided designs and specifications, and therefore performs only manufacturing process
design and development activities in conjunction with Planning for product Realization.
Upon receiving a Letter of Intent (LOI) or Purchase Order (PO) from the customer the organization develops a process design and
development plan defining the development stages design review, verification and validation requirements and responsibilities /
authorities for design and development.
7.3.2.1 The organization uses cross-functional teams for manufacturing process design and development. The team carries out feasibility
studies, prepares process flow diagrams, PFMEA, (process failure mode and effective analysis), develops Control Plans and identifies
special characteristics for products giving due care to product safety, utilizing appropriate mistake proofing methodologies with efforts on
defect prevention rather than detection and, creating internal awareness on safety considerations.
7.3.2.2 The design and development inputs are then identified, documented and reviewed based on product and customer requirements
and experience from previous developments.
Control Plans are developed at the system, sub system and component levels for the products supplied at the different phases via
Prototype, Pre-launch and Production as appropriate including listing all controls used for process control.
7.3.2.3 Manufacturing design outputs consist of process control guidelines, i.e., FMEAs, Control Plans, Process Standards and Operator
Process Instructions. These are marked with the customer’s special characteristics symbols, if specified by the customer on the
drawings/documents supplied.
All production processes, which directly affect the quality of products, are considered during quality planning. Control Plans are reviewed
and updated if the product or process changes, or becomes in-capable / unstable. Inspection methods, and frequencies are also revised if
necessary.
Process approval acceptance criteria data for quality, reliability, maintainability and measurability results of error-proofing activities.
Methods of rapid detection and feed back of manufacturing process non conformities are defined, as appropriate as an output, of the
design and development activity in the form of procedures, work instructions or process standards.
Programs of design and development is monitored at defined stages / frequency, analyzed and reported with summary results in the
management reviews.
Note: Printed documents are not controlled copies-check master computer files for latest revisions

                                                                                                                      Edition: 01
                                                                Issued by: Ralph Sulser                            Date: 04/02/03
                                                              Approved by: Keith Shepard                                   Rev. 0
      MUSASHI SOUTH CAROLINA                                   PRODUCT REALIZATION                         DOC NO.:MSC-QM1
                                                                          Page 24 of 45                         SECTION#: 7


7.3.6.3 A procedure has also been established for production part approval process (PPAP) addressing the following activities as
applicable:
  -identification of need for submission / preparation of PPAP
  -decision on submission level
  -Preparation of Part Submission Warrant and submitting a copy of PPAP document / sample to customer, as appropriate
  -Maintaining original PPAP documents / records
  -Maintaining master sample (s)
  -Incorporating changes required by customer in the documents and processes

Part approval process is used for suppliers. The system ensures that the engineering changes are properly validated. Review, verification
and validation of the newly designed and developed manufacturing process is carried out at sample / prototype, production part approval
and pre-launch stages of production respectively. Developed product is reviewed at sample / prototype stage, verified and validated after
production part approval. Records of results of reviews, verification and validation of manufacturing process design and development
activities are maintained.

                               Procedure No.          QC SP 009 – Parts Submission Warrant/PPAP

7.4            Purchasing
7.4.1       Purchasing process


MSC has established a documented procedure to ensure that purchased products conform to specify purchase requirements [including
conformity to applicable regulatory requirements]. The type and extent of control applied to the supplier and the purchased product
depends upon the effect of the purchased product on subsequent product realization or the finished / final product. The Company
evaluates and selects suppliers based on their ability to supply product in accordance with the Company’s requirements [where specified
by the customer, purchasing is done from customer approved sources only unless waived by the customer.
Criteria for selection, evaluation and periodical re-evaluation have been established [monitoring of the supplier is done using documented
process which considers the indicators like quality, delivery schedule performance, premium freight, field return and special status,
customer notification]. Records of the results of evaluations and any necessary actions arising from the evaluation at company or supplier
end are maintained.
                            MGT-SP- 001 Contract Review (Sr. Manager Production Control and President)
                            PH-QP- 4.6 Purchasing – Materials/Components (Production Control Manager)
                            PH-SP- 002 Approved Supplier List
7.4.2          Purchasing information
MSC has established criteria for detailing adequate “Purchasing Information” in the Purchase Documents (in hard copies / through e-
mails ) for the products to be procured. The product and supplier details are described in Purchase Documents or e-mails, including where
applicable:
a)    Requirements for approval of product, procedures, processes, and equipment,
b)    Requirements for qualification of personnel, and
Quality management system requirements.
The authorized Production Control Manager or Purchasing Manager reviews the purchase information to ensure the adequacy of specified
purchase requirements prior to their communication or issue to the suppliers.
                             MGT-SP- 001 Contract Review (Sr. Manager Production Control and President)
                             PH-QP-4.6 Purchasing-Materials/Components (Production Control Manager)
                             PH- SP- 005 – Purchasing Indirect Materials, Tooling, Supplies (Purchasing Manager)




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                                                                                                                     Edition: 01
                                                                Issued by: Ralph Sulser                           Date: 04/02/03
                                                              Approved by: Keith Shepard                                  Rev. 0
      MUSASHI SOUTH CAROLINA                                   PRODUCT REALIZATION                           DOC NO.:MSC-QM1
                                                                          Page 25 of 45                           SECTION#: 7

A goal has been established for quality management system development of suppliers That goal is eventual supplier conformity with
ISO/TS 16949-2002. As a first phase suppliers are encougred to pursue and obtain third party certification to ISO 9001-2000 and finally
to ISO/TS16949-2002 if applicable.
7.4.3        Verification of Purchased Product
a)    MSC has established a documented procedure for implementing the Inspection / Testing or Verification of the products, as
necessary, for ensuring that purchased products meet the specified purchase requirements. The company ensures that through this
procedure for receiving inspection and testing, all material at incoming stage are inspected, tested/verified for conformance to the
specified requirements.
b)    During verification of purchase product one of the methods as given below are followed:
-      Receipt and evaluation of statistical data
-      Receiving inspection and testing on the basis of sampling
-      Assessment of supplier by customer or third party supported through acceptable product quality record.                     (Rec.Insp.)
-      Test Report from accredited laboratory.
-      Other methodology as advised by the customer.
c)    If contractually agreed, the company also allows its customers or their representatives to verify that the purchased materials at
supplier end for ensuring materials conformance to specified requirements. When it is proposed to verify the purchased product at the
supplier's premises by either customer or company’s representatives, the verification arrangements and the method of product release are
specified in the purchase order or its attachments.
                                             Procedure No.        QC SP 014 Receiving Inspection-Bar Stock
                                             Work Instruction PD-WI-017 Receiving Steel Bars
                                             Work Instruction PD-WI-HF-109 Receiving and inspection of ATV Billets
7.5            Production and service provision
 7.5.1 Control of Production and Service Provision
Servicing, and Appearance Items are not currently a contractual part of Musashi South Carolina customer requirements, and not part of
MSC’s current manufacturing operations. If in the future these become a requirement, we will address them in accordance with the
applicable specification, and/or standards.
Production is controlled by way of preparing and implementing Operator Process Instructions, Work Instructions, Check Sheets, and X
bar & R Charts. Suitable equipment, and monitoring and measuring devices are provided and maintained. Release and delivery activities
are implemented.
MSI Engineering Departments during Manufacturing Process Designing and Development process prepares initial FMEAs, Control Plans,
and Operator process Instructions. These are then modified to reflect MSC actual conditions.
7.5.1.1 Controls Plans are developed at the system, subsystem, component and / or material level for the product supplied, for different
stages of process development i.e. prototype pre-launch and production, from the process FMEA output.
Control Plans are reviewed and updated when any change occurs effecting product, manufacturing process, measurement, logistics, supply
source or FMEA.
7.5.1.2 The manufacturing departments carry out production based on the Operator Process Instructions and prepare any additional work
instructions necessary, and checklists for employee responsible for the operation of process including set up personnel, which are
accessible for use at the work station.
7.5.1.3 First piece set up is approved, before allowing mass production by authorized person during each job change of each operation.
7.5.1.4 Detailed checklists developed for each process equipment are used for preventive maintenance and predictive maintenance as per
the maintenance plans developed yearly and reviewed monthly.
Equipment, tooling and gages not likely to be used for a considerable time are packaged and preserved per a checklist.
A system has been established to assure minimum stocks of replacement parts for all key manufacturing equipment.
Maintenance objectives are developed in the beginning of financial year which are evaluated and improved at planned intervals.

7.5.1.5 A system for maintenance of production tooling has been established including maintenance personnel storage and recovery,
setup, tool change program for perishable tools; tool and tool design modification, documentation, tool identification and tool status.
7.5.1.6 The production scheduling is customer order/ forecast driven and supplies are made just in time based on customer
schedules/releases and electronic dispatch instructions (EDI).
7.5.1.7 Customer feedback from service or field performance concerns is transmitted to the company via web customer web site, e-mail,
and phone calls.
7.5.1.8 MSC currently does not have any service agreements with customers. If in the future Service Provisions become a requirement, we
would develop a procedure to incorporate those requirements
Note: Printed documents are not controlled copies-check master computer files for latest revisions

                                                                                                                       Edition: 01
                                                                Issued by: Ralph Sulser                             Date: 04/02/03
                                                              Approved by: Keith Shepard                                    Rev. 0
     MUSASHI SOUTH CAROLINA                                    PRODUCT REALIZATION                               DOC NO.:MSC-QM1
                                                                          Page 26 of 45                               SECTION#: 7

Related procedures/Instructions:

Shear Operations                                              PD-WI- SH-101
Hot Forging Press Start Up                                    PD-WI- HF- 102 &103
Hot Forging Press Die Change                                  PD-WI-HF-105
Heat Treatment                                                PD-WI-HT-100
Shot Blast-Billets and Forged Gears                           PD-WI-FSB-101
Handling, Storage, Packing, Preservation                      PC SP 001
Customer Supplied Parts and Packaging                         PH SP 001
Final Inspection & Packing of Visteon Gears                   PD-WI-HT-109


7.5.2      Validation of Processes for Production
Before starting mass production, validation of processes, equipment and personnel is performed.
A system has been established and maintained for revalidation of the processes. Validation is performed by determining CPks at run rate
on customer designated characteristics, and records are maintained. The validation process is defined by the customer, or PPAP for
specific criteria for review and approval, equipment approval, personnel qualification, methods / procedures, records requirements and
revalidation.
                     Procedure No. QC-SP-009 PSW/PPAP

7.5.3       Identification and Traceability

The Company has established a system for product identification and traceability, which requires that products be identifiable to the
applicable specifications, as appropriate. Incoming materials, WIP, and finished packaging are identified by a lot tag giving details of part
lot numbers, part name, and part number. Identification of all products at different stages of activity in the plant is maintained from the
beginning billet shear operation through finished product to final packaging operation to the customer for all products.
Work In-Process is also identifiable and traceable by part number lot tags. The products lot traceability is also identified through the data
documented on the each part’s check sheets. These sheets become quality records at each operation, and are traceable to date of
production operations, inspection/testing / packing. The traceability lot tags are assigned at each operation and logged in and out, and is
also provided on packaged products sent to the customers.
The inspection and test status of items are identified through lot identification tags, inspection records, designated staging/storage areas
and placards, as applicable. The identification, inspection and test status of incoming items are identified based on supplier’s tags/labels,
and certificate of conformance and / or the inspection and tests performed. These are then stored at designated locations. Separate areas
have been identified and marked for incoming materials, and non-conforming items.

                  Procedure No. QC SP 015 Product Identification & Traceability
                  Procedure No. QC SP 005 Lot Control

7.5.4      Customer Property

MSC takes due care with customer property while under the MSC’s control, or being used by the MSC. MSC may receive products,
samples, drawings and packaging from the customers. A documented procedure identifies, verifies, protects and safeguards the customer
property provided for use or incorporation into the product. If any customer property is lost, damaged or otherwise found to be unsuitable
during verification for further use, it is reported to the customer and the necessary records are maintained.


                                    Procedure No.              PH SP 001 Customer Supplied Parts and Packaging




Note: Printed documents are not controlled copies-check master computer files for latest revisions

                                                                                                                        Edition: 01
                                                                Issued by: Ralph Sulser                              Date: 04/02/03
                                                              Approved by: Keith Shepard                                     Rev. 0
      MUSASHI SOUTH CAROLINA                                   PRODUCT REALIZATION                            DOC NO.:MSC-QM1
                                                                          Page 27 of 45                            SECTION#: 7

7.5.5          Preservation of Product
MSC has established a documented procedures for preserving the product quality from receipt of materials through internal processing up
to the delivery of finished products to the intended destination. This preservation includes the product identification, handling, packaging,
storage and protection of the products.

Every employee is responsible for safe handling of the products at various stages of processing.
Handling, storage and transportation of products is to be controlled to prevent damage, deterioration or loss. When necessary, for
particular items, special instructions are issued and monitoring is carried out to check satisfactory implementation. The appropriate
handling of products is followed to avoid any deterioration of quality of product while in transit.
7.5.5.1 Appropriate storage areas are provided for materials and products for protection, and to prevent damage and deterioration of the
product quality, including suitable preservation wherever necessary. The condition of the products in stock is assessed at appropriate
intervals.
All raw materials are issued on First In-First Out basis. An inventory management system is also used to optimize inventory turns. Work
instructions have been established for inventory management. FIFO is utilized for issuing and using stock. Obsolete products are treated
as non-conforming.
A system for packing, packaging, marking, considering customer packaging standard and labeling / marking requirements have also been
established.
                      PC SP 001 Handling, Storage, Packing, Preservation
                      PC WI 002 Production Planning
                      PC WI 010 Monthly Inventory Corrections in the AS400
                      PC WI 011 Process Count Inventory Adjustment

7.6       Control of monitoring and measuring devices

The range of measurements and required accuracies are determined by the gage control technician. Measuring devices, including test
software if necessary, used for conforming product quality, are selected based the capability of meeting the necessary accuracy and
precision. This ensures that the measurement uncertainty is known and is consistent with the required measurement capability.
The measuring devices that can affect products are identified and calibrated / verified / adjusted / readjusted at prescribed intervals,
against measurement standards traceable to national / international measurement standards.
Where no such standards exist, the basis used for calibration is recorded. If applicable, test software and test hardware used for inspection
purposes are checked at prescribed intervals to assess their capability to verify the acceptability of product.
Master list and calibration records containing necessary details are maintained in a controlled computer "Master file" by the QC Gage
Calibration Technician, for all such devices. They are identified with a suitable indication through use of an engraved code number, a
label, or color coded mark indicating the calibration status, and due dates for re-calibration.
Persons using the calibrated equipment are trained to handle, store and preserve them appropriately to prevent damage and maintain the
accuracy and fitness for use.
Provisions to safeguard the calibrated equipment from adjustments and setting are also made as and where applicable.
The calibration is carried out under controlled conditions as detailed in the relevant procedures.


Any measuring devices that fail during operation, are suspect, known to be outside its designated criteria or show evidence of physical
damage affecting accuracy are removed from the location of use and isolated by the Gage Control Technician. Validity of inspection and
test results of parts checked with measuring devices found to be out of calibration is assessed as applicable. If it has been determined that
suspect material has been shipped, MSC will recall that material from transit, or notify customer if already delivered.
7.6.1 Measurement System Analysis is carried out for each type of measuring and test equipment, referred in the control plan, using
appropriate statistical techniques. The analytical methods and acceptance criteria used conform to those in customer reference MSA
manual.
7.6.2 Records of calibration / verification of all measuring devices include: equipment identification, measurement standard used for
calibration, revisions following engineering changes, any out of specification reading as received for calibration with their assessment of
impact, statement of conformance to specification after calibration and notification to customer if suspect material or product may have
been shipped are maintained as defined in the relevant procedure.

Note: Printed documents are not controlled copies-check master computer files for latest revisions



                                                                                                                        Edition: 01
                                                                Issued by: Ralph Sulser                              Date: 04/02/03
                                                              Approved by: Keith Shepard                                     Rev. 0
     MUSASHI SOUTH CAROLINA                                    PRODUCT REALIZATION                            DOC NO.:MSC-QM1
                                                                          Page 28 of 45                            SECTION#: 7

7.6.3.1 MSC has an established system and procedure for the internal laboratory with a defined scope, which includes the capability to
perform the required inspection, test and calibration services.
The technical requirements for compliance by the laboratory include: adequacy of the laboratory procedures, qualification of the
laboratory personnel conducting test, testing of commodities and capability to perform these test correctly, traceable to relevant process
standard (e.g. ASTM) and review of related records.
7.6.3.2 External laboratories selected for inspection, test or calibration purposes are based on capability to perform the required
inspection/ test / calibration, and its accreditation of ISO / IEC 17025 or national equivalent or its acceptability to customer.

Computer Software, when used in the monitoring and measurement of specified requirements, are validated at the time of installation and
records are maintained. The ability of computer software to satisfy the intended application is confirmed. As and when such software is
updated, the same are again re-validated and the results are re-confirmed. Such software is re-confirmed at specified frequency as referred
in the documented procedure.

               Procedure Nos.                  QC SP 017                      Gage Control
                                               QC SP 026                      Gage Calibration Scope
                                               QC SP 008                      Internal Laboratory Scope
                                               PD-HT-703&705SM                Laboratory System –Skill Maps




Note: Printed documents are not controlled copies-check master computer files for latest revisions


                                                                                                                      Edition: 01
                                                                Issued by: Ralph Sulser                            Date: 04/02/03
                                                              Approved by: Keith Shepard                                   Rev. 0
     MUSASHI SOUTH CAROLINA                          MEASUREMENT, ANALYSIS, IMPROVEMENT                       DOC NO.:MSC-QM1
                                                                Page 29 of 45                                      SECTION#: 8


8.      Measurement, analysis and improvement
8.1 General
Processes have been established for monitoring, measuring, analysis and improvement needed to demonstrate conformity of
product, ensure conformity of the quality management system, and continually improve the effectiveness of the quality
management system, including determination of applicable methods and statistical techniques.

8.1.1    Appropriate statistical techniques are determined during manufacturing process design and included in control
plan.
8.1.2 Training on basic statistical concepts, such as variation, control (stability) process validity and over adjustment is a
competency requirement throughout the organization.

                                               Related Procedures
                                               QC SP 006 Control Plans
                                               QC SP 007 FMEA
                                               HR SP 001 Human Resource – Training
                                               QC SP 013 Statistical Process Control

8.2 Monitoring and measurement
8.2.1- A procedure has been established for evaluation of customer satisfaction, expectations and applications of measures to
enhance customer satisfaction.
Customer satisfaction and expectations are evaluated on both perceptive as well as performance measures.
Information on customer performance measures are obtained from our customers’ electronic web site postings of supplier
rating systems. These measures include quality, delivery, and systems. Sr.Mgr.QC or Asst.Mgr. QC monitors weekly.The
information on perceptive measures are developed by the organization for additional customer feedback, such as phone calls,
e-mail, sales communications, related to customer perceptive/performance measures.
Countermeasures are developed and monitored for any unsatisfactory areas identified from the customer ratings, and
customer satisfaction expectations.
The customer satisfaction ratings are monitored, and maintained continually and evaluated for performance of the product
realization process. Customer web site information is updated monthly for key scoring criteria.
8.2.2- The organization has a procedure for performing internal audits at planned intervals to determine if the quality
management system conforms to the planned arrangements and is effectively implemented, covering all quality management
related process, activities and shifts.
Audit frequency is appropriately increased when internal / external non-conformances or customer complaints occur.
Specific checklists are developed for the audits. Corrective actions are taken on the non-conformance observed, in meeting
the planned results, during the audits. The audits also aim at determining the effectiveness of the manufacturing process, and
products.
8.2.3 Performance monitoring measures are decided for the quality management system processes. Processes performance on
each measure is measured by the concerned process owner, and measured as: Percents /$ /PPM / DPM and results presented
in Management Review Meetings.
Corrective actions are taken as appropriate when planned results are not achieved.
8.2.3.1 Process capability of each new process is studied and verified during production part approval process (PPAP).
Control plans are reviewed and revised for additional control needed, if any, based on the PPAP results. PPAP results are
documented.
The output of the manufacturing process design and development process is in the form of Operator Process Instructions.
OPIs define inspection, standards, frequencies, and methods, and other instructions to provide necessary information as
means of production measurement, test and maintenance instructions. Also includes objectives for manufacturing process
capability, validity, maintainability and availability as well as acceptance criteria.
Process control procedures established within the organization ensures maintaining manufacturing capability or performance
as specified by the customer part approval process requirement by following the manufacturing process design and
development process output documents such as process / inspection / packaging standards and other work instructions.
Significant process events are noted on the control charts and inspection records maintained for controlling the manufacturing
process.
Note: Printed documents are not controlled copies-check master computer files for latest revisions

                                                                                                                        Edition: 01
                                                                Issued by: Ralph Sulser                              Date: 04/02/03
                                                              Approved by: Keith Shepard                                     Rev. 0
     MUSASHI SOUTH CAROLINA                          MEASUREMENT, ANALYSIS, IMPROVEMENT                     DOC NO.:MSC-QM1
                                                                Page 30 of 45                                    SECTION#: 8

Appropriate reaction plans in the Control of Non-Conforming Product, and Corrective Action Procedures have been
developed and are followed for characteristics that are either unstable or non-capable.
The reaction plans include containment, and segregation of product, 100% inspection, and root cause analysis as appropriate.
Corrective actions plans are developed and implemented to assure that the process become stable and capable. The plans are
reviewed and approved by the customer, if required.
8.2.4 Operator Process Instructions, check sheets, and X bar & R charts have been established for monitoring and measuring
the characteristics of the product to verify that product requirements have been met.
Product releases for delivery to customer do not proceed until all the planned operations, inspections and tests have been
satisfactorily completed, unless approved otherwise by a relevant authority or via customer communications.
The O.P.I.s also includes product audit and layout inspections of products at appropriate stages of production and delivery,
and at frequency defined for each product.
Currently MSC does not have any customer requirements for “appearance items”. In the event this becomes a future
requirement the necessary controls, including appropriate lighting, master samples and qualifications of personnel, will be
defined.
                           Related procedures
                           QC SP 023                 APQP
                           QC SP 017&026             Gage Control, and Gage Calibration Scope
                           QC SP 016                 Control of Non Conforming Product
                           QC SP 018                 Internal Quality Auditing
                           QC SP 011                 Customer Satisfaction
                           QC SP 001                 Management Review
                           PD SP 001                 Process Control

8.3 Control of nonconforming product
A procedure for control of nonconforming products has been established, defining a system for identification, control,
evaluation, documentation, disposition, containment, segregation (where practicable), rework / repair and prevention of
unintended use of nonconforming / suspect products at various stages during manufacturing.
According to this procedure nonconforming products are reviewed by authorized personnel for action required to eliminate
cause, determine rework, acceptance without repair by waiver (through deviation from customer, if and where necessary), or
for the rejection / scrap. Reworked / repaired products are re-inspected according to the original specified requirements.
Products with unidentified or suspect status are classified as nonconforming.
Nonconforming / suspect material is placed in designated color-coded product bins at operations, and the products in the bins
containing then are visually identified.
Rework instructions are established, accessible and utilized by appropriate personnel in their work area. Reworked parts are
re-inspected prior to release. Nonconforming products are quantified, analyzed and a prioritized reduction plan instituted as
necessary.

Currently MSC does not have service, or aftermarket provisions required by customers. In the event service applications are
required, products with visible nonconformances detected will not be reworked without prior approval of customers.
Prior written customer approval is obtained whenever the product or process, that affects the final product, is different from
that approved in Production Part Approval Process (PPAP). (Ref. Also SCR-Supplier Change Request)
Quantity/time criteria for this approval is maintained. The system ensures that the product / process conforms to original or
superceding specifications on expiration of this approval. Material shipped after customer approval is appropriately
identified.
When non-conforming product is detected after delivery or use has started, necessary actions, including customer notification
appropriate to the effect, or potential effect, of the non-conformance is taken. Records pertaining to control of nonconforming
products are maintained as per relevant procedures.
8.3.1        Related Procedures
                          QC SP 016            Control of Non Conforming Product




Note: Printed documents are not controlled copies-check master computer files for latest revisions

                                                                                                                     Edition: 01
                                                                Issued by: Ralph Sulser                           Date: 04/02/03
                                                              Approved by: Keith Shepard                                  Rev. 0
      MUSASHI SOUTH CAROLINA                         MEASUREMENT, ANALYSIS, IMPROVEMENT                    DOC NO.:MSC-QM1
                                                                Page 31 of 45                                   SECTION#: 8

8.4     Analysis of Data
The organization prepares and maintains trends in quality, productivity, delivery, cost, safety and other performance
measures. This demonstrates the suitability and effectiveness of the quality management system. The data is used to evaluate /
identify opportunities for continual improvement of the effectiveness / performance of the quality management system. This
includes data relating to customer satisfaction, conformance to product requirements, characteristics and trends of processes
and product and suppliers.
The trends are compared with progress towards overall business objective, and appropriate benchmarks.
Key customer related trends are determined and action plans prepared and prioritized for prompt solutions to customer
related problems. The trends are presented in the Management Review Meeting, where they are reviewed along with actions
plans if necessary.

8.4.1        Related procedure

               QC SP 001 Management Review

8.5              Improvement
A procedure has been established defining a method for controlling the process for continual improvement, and for
continually improving the effectiveness of the quality management system and the performance of the organization.
The continual improvement process also focuses on control, reduction of variation in product characteristics, and
manufacturing parameters. This occurs once manufacturing processes are capable and stable and product characteristics are
predictable and meet customer requirements.
All customer complaints, customer returned products, reports of product non-conformances identified during the process are
analyzed, using disciplined problem solving methods; causes relating to product, process and quality systems are established;
and countermeasures are taken to eliminate the causes.
Non-conformances observed and reported by customer if any, are responded to in manner prescribed by the customer.
The effectiveness of the corrective action is verified from the quality of subsequent product processes, or internal audits.
Wherever applicable the successfully implemented corrective actions and controls are applied to other similar processes and
products to prevent possible non-conformances.
 Mistake proofing methods are used as part of corrective and preventive action process, appropriate to the magnitude of the
problem.

Trends in non-conformances observed in internal quality audits, incoming material, production process, final inspection,
customer complaint, delivery performance, process capability, vendor delivery performance, customer satisfaction index, etc.
are analyzed to determining potential non conformances and preventive action taken to prevent their occurrences.
Effectiveness of the preventive action is reviewed. Changes in quality system / processes are documented and summary of the
preventive action taken are submitted for Management Review.
Records of results of corrective and preventive actions including analysis of customer returned products are maintained.
Documented procedures established for corrective and preventive action are as follows.
8.5.1     Related procedures
            QC SP 019 Corrective Action
            QC SP 020 Preventive Action
            QC-SP 021 Continual Improvement




Note: Printed documents are not controlled copies-check master computer files for latest revisions


                                                                                                                    Edition: 01
                                                                Issued by: Ralph Sulser                          Date: 04/02/03
                                                              Approved by: Keith Shepard                                 Rev. 0
     MUSASHI SOUTH CAROLINA                                     CUSTOMER SPECIFICS                        DOC NO.:MSC-QM1
                                                                          Page 32 of 45                        SECTION#: 9




Section 2:                     Customer Specific Requirements

MSC will adhere to its customer specific requirements in relation to TS16949:2002, or other standards as necessary.

See Visteon Customer Specific requirements. Currently, we do not have any other business with the companies who have
requirements in Section 2. In the future, should business with customers be realized that have these requirements, MSC will
fulfill their specific requirements.




Note: Printed documents are not controlled copies-check master computer files for latest revisions

                                                                                                                   Edition:01
                                                                Issued by: Ralph Sulser                         Date: 04/02/03
                                                              Approved by: Keith Shepard                                Rev. 0
                    MUSASHI SOUTH CAROLINA                                                                                                                                                                                       QC-Flow.Doc.-101
             PROCESS INTERACTION VISTEON BEVEL GEARS                                                                                                                                                                             Rev. 2          8/15/03

                                         OPERATIONS
Quallity Decisions                    Start Bevel Gear                                                        INPUT                                                                                     INPUT
Intructions/Methods                   Manufacturing
                                                                                                                                                                                                                  Customer Inputs
                                                                                                                                                  APQP:                                                           R.F.Q., P.O.
                                                                                                                                               Feasibility, Control Plan,                                         Design Drawings
Work Instruction                        Receive Steel            Steels bars from
                                                                                                                                               FMEA, Process Design,                                              Build Schedules
                           Accept                                approved supplier           Non-conformance
                                                                                                                                               Process Validation(CPk)                                            Delivery Schedules
                                            yes                                                                                                PPAP
                                                                 no            -------------------------->
                                                  C.O.A.


Operator Process                            Cut Billets          Shear cut steel bars
Instruction                                                      into billets
                                            yes
                                              Inspect-                no       --------------------------->           Process Owners            Customer Oriented Process        Support Processes
                                              checksheet                                                              President                 (Key Processes)                  Marketing Sales
                                                                 Deliver to shot blast                                Plant Manager             RFQ Process                      Human Resources
                                                                                                                      Sr. Production Manager    Customer P.O. requirements       Training
Operator Process                             Shot Blast          Shot blast removes                                   Managers:                 (APQP)                           Quallity Control & Calibration
Instruction                                                      rust and scale                                       Forging/Sizing            Design Process                   Engineering
                                                                                                                      Lathing                   Product/Process Validation       Maintenance
                                                                 Deliver to Hot Forging                               Heat Treat & FI           (PPAP)                           E/H/S
Operator Process                             Hot Forge           Forge billetts into gears                            Team Leaders              Mass Production                  Purchasing Material/Supplies
Instruction                                                                                                           Associates                Delivery                         Production Control
                                      yes                                                                                                       Feedback
                                            Inspect-                  no       --------------------------->                                     Management Oriented Process
                                            checksheet                                                                                          Business Planning
                                                                                                                                                Resource Planning
                                                                                                                                                Management Review
Operator Process                            Normalizing /        Gears enter directly inline                                                    Continous improvement
Instruction                                  Annealing           Anneal forged gears                                                            Analysis of Data
                                                                                                                                                Corrective/ Preventive actions
                                                                                                                                                Customer satisfaction feedback
                                      yes                                                                                                       Product/process perfomance
                                             Inspect-
                                                                                             ----------->
                                                                           no -----------------                                                 Internal audit
                                             checksheet,
                                                                 Deliver to shot blast

Operator Process                               Shot Blast        Shot blast cleans residue
Instruction


                                                                 Deliver to Sizing

Operator Process                                    Sizing       Trims & Sizes
Instruction                                                      preliminary dimensions

                                yes         Inspect-                       no -------------------------->
                                            checksheet, +

                                                                 Deliver to Lathing staging area

Operator Process                                    Lathing      CNC precision lathe,
Instruction                                                      dimensions
                                                                                                                       Non-Conforming HOLD Tag, Log Book
                                yes                                                                                    HOLD AREA
                                           Inspect-                        no -------------------------->              Review for Disposition by QC
                                           checksheet, +
                                           X&R



Operator Process                                                 During lathing operations:                           SORT      REWORK
Instruction                            Broach/Champher/          Broach, champher, burnish                                                                  REJECT/SCRAP
                                       Burnish
                                                                                                                      ACCEPT ACCEPT
                                                                 Place gears on racks                                 RETURN TO MANUF.                      DISPOSE BY QC
                                yes         Inspect-                 no     -------------------------->
                                            checksheet, +

                                                                 Deliver to Heat Treat Dept.

Operator Process                               Degrease          Degrease lathing lubricants
Instruction
                                                                 Identify Lot #s, and route thru
                                                                 Heat Treat furnaces

Operator Process                                    Heat Treat   Caborize, harden cycles
Instruction                                                      Time & temp.

                                yes                                   no       -------------------------->
                                            Inspect/Test
                                            checksheet, +
                                            X charts
                                                                 Route thru to shot peen/blast

Operator Process                      Shot Blast/Peen            Removes heat treat resudue
Instruction

                                                                 Route to wash on roller conveyor

Operator Process                        Final Wash               Detergent wash, and dry
Instruction                                                      Time & Temp.




Operator Process                                Final            Final Inspection of dimensions
Instruction                            Inspection/Pack           Apply rust preventative
                                                                 QC selects samples for SPC
                                                                 measurements & documentation
                                yes
                                           QCAudit SPCs
                                                                      no       --------------------------->
                                           checksheet, +

                                                                                                                         Output to Customer :                                                                          Customer
                                                                               OUTPUT                                    Acceptable Finished Gears,                                                                 Satisfaction &
                                               Stage/ Ship                                                               Delivered on time                                                                          Perceptions of
                                                                                                                                                                                                                        M.S.C.




ca0fddd9-ac1c-499a-b578-3d2e24c37747.xls          Bevel Gears                                                                  R. Sulser                                                                                             7/11/2011
External & Internal Process Inputs to Musashi South Carolina Process
                                                                                                                                                                            QC-Flow.Doc.-102
                                                                                                                                                                            Rev. 2      5/26/04
                                                                                                                                         Material/Components Inputs
                                                                                                                                                  Customer
                                                                                                                                                  Designated
                                                                                                                                       Raw Steel /Supplied Honda(Assy.)
                                                                                                                                        Material   Parts/Pkg. Parts& Pkg.


                                     Musashi South Carolina
                                     Customer Process                            Planning Process                     Production Process
                        Musashi      Review Team                                                                                                                                     Feedback
                    North America    President                                                                   - Tooling         Communicate               Review
                     Sales Office    Sr. Mgr. PC/Sales/Proj.                                                     - Engineering     Facility & Equipment Controls
                      Detroit, MI    Sr. Mgr. Prod./Engrg./Maint.                                                - Maintenance




                                                                                                                                                                                                          CUSTOMERS
   Customers




                  RFQ Info-Pass thru Sr. Mgr. QC                                                                   Machine
                   Customer Contact Contracts Review                             Plan      Defines     Establish Data Analysis       Customer Launch         Mass         Ship on
                         Liaison        RFQ     Feasibility Review               Process   Processes   Capability Review             Approval Product        Production   Time
                 Inputs              Order Info Delivery Reqmnts.                                                  Product             PPAP         Monitor      Monitor
                                      Business decisions                                                         - Refine controls     CPks        Analysis      Analysis              Outputs
                      Feedback                                                                                   - Instructions         OPIs
                                                                                                                 - Training        Meas. Equip.
                                                                                                                                   Continual Improvement     Communicate




                                                                                             APQP       FMEAs         Control Plans   Process Info   Parts

                                                                                           Musashi - Japan (MSI) Inputs of Information and Parts
                                                                                           Develops preliminary draft plans input for each new product
                                                                                           MSC takes ownership upon receipt and finalizes to conform to MSC processes
                                                                                           May supply finished, or W.I.P. Parts




               D:\Docstoc\Working\pdf\ca0fddd9-ac1c-499a-b578-3d2e24c37747.xls                            7/11/2011                                                                     External Inputs
                                     Process Map: Interaction and Sequence                                                                                                                 Musashi South Carolina




Management                                                                                                                    QC-SP-021.doc                                    QC SP 013.doc               8.2.1 Customer Satisaction/feedback                           QC-SP-011
                                                                                      5.6
Oriented                             5.2,5.4 Business Planning/ 6.0                                                 8.5.1 Continual improvement                          8.4 Analysis of data                                                                                                             = Key processes
                                                                                      Management
Processes                            Resource Planning                                                                                                                                                                                                                   PD-SP-001.docProcessControl
                                                                                      Review                                                                                                                        7.5.1 Product/process conformance
                                                                                                                                                                                                                                                                         QC-SP-016   Non-Conforming control
                                 MGT-SP-002 BOP 5.4 Management Resp-planning-MSC.xls QC-SP-001                   8.5.2 Corrective & 8.5.3 Preventive actions                   QC-SP-019                        8.2.2 Internal audit
                                                                                                                                                                               QC-SP-020                                                         QC-SP-018

                                                                      Planning                                                                                       APQP                                                                                           Production                                                                    Delivery
                                                                                                                                                              QC-SP-023.doc
                                                                                                                                Delivery        Mat'l cost        Mat'l req.           7.5.1.6 Production Control
Support                                                                                                                                                                                                                                4.6.doc      Purch. Raw Matls./Components
Oriented                                                                                                                                tooling/equi
                                                                                                                           mat'l type                    run rate capability           7.3.2.2Engineering
Processes                                                                                                                                  pment                                                                                                 7.5.1.4
                                                                                                                                              6.2 HR                           HR-SP-001
                                                                                                                                                                                                                                                 Prev. &     MT-SP-001   Prev. Maint.
                                                                                                                                                                                                                                                 Regular
                                                                                                                                                                               HR-SP-002             Process
                                                                                                                                           7.6 Calibration
                                                                                                                 QC-SP-017                                                                          parameters
                                                                                                                 Gage
                                                                                                                 Control
                                                                                                                                     Design/Order/Receive/
                                                                                                                                                                                             7.5.1.5           7.4 Raw
                                                                                                                                       Validate Gaging              Manpower
                                                                                                                                                                                           Tooling P.O.        Mat'l P.O.
                                                                                                                                         requirements


                                                5.2,7.2 MSC
                                               President & Sr,                Contract Review
                                                Mgr.PC/Sales          ..\Procedures\MGT-SP-001.doc

                                    Voice of customer                            No      Review
                                                                                         Cause                                                                QC SP 006.doc           Control Plan
   Customer Oriented Processes




                                                                                                                                                              QC SP 007.doc           FMEA                                                          QC SP 010.doc        OPIs
                                                                                                                     Customers'                               QC-SP-006             (PPAP)       QC-SP-009 PSW/PPAP                                 PD-SP-001.doc        Process Control
                                                          Order/             Accept                    Receive       Product/Order
                                                                                             Yes
                                                         Request             Quote                      P.O.         Requirements
                                                                                                                                                              QC-SP-007
                                                                                                                                                                               7.5.2 Product / QC-SP-002 Cust    Process.flo.xl.xls                 QC-SP-015            ID & Trace
                                                                                                                                                       7.3.2.2,                   Process                                      7.5.1 Mass Production                                                   Stage FG,
                                                                                                                                                        7.3.3.2                                               OK                                                               7.5.5 Packaging                                  7.5.5 Delivery          ASN           Transport
                                                                              MGT-SP-001                                                                                        Verification /                                                                                                         Label
                                       Drawings,                                                                                                       Design                                                                                                                        PC-SP-001
                                                                                                                                                                                 Validation
                                                                            Packaging &                                                                Process                                                                                                                                            QC-SP-025   Dock Audits
                                                   Price, quantity,                                                                                                                                                      Utilities
                                                   delivery,                                                                                                                                                                                                                                                            Specified carrier, etc.
                                                                                                                                                                                      No                                                                     IP          ..\Procedures\QC SP 008.doc      Lab Scope
                                                   requirements                                                                                                                                                                  Schedule              inspection,test
                                                                                                                                                                                                                                                           & Final
                                                                                                                                                                                                                                                                         ..\Procedures\QC SP 010.doc      OPIs
                                                                                                                                                                                                                                     Release
                                                                                                                                                                                  Quanities, specifications, etc.                     Order
                                                                                                                                                                               QC SP 002.doc      Customer Specs.                                            Data        QC-SP-013  SPC/Cpk
                                                                                                                                                                                                                                                           Collection    Insp. Results
                                                                                                                                                                                                                                                                         Scrap



                                                                                                        Regulatory. legal
                                                                                                         requirements                                                               Payroll
   * Additional SOP




                                                                                                   Company culture &                                6.2 HR
                                                                                                   mgmt objectives

                                                                                       comptetancy, skill,         addt'l training
                                                          manpower needs
                                                                                         education, etc.              needs
                                                                                                                                                6.2.2 Training                       Skilled workforce

                                                                                                                                                  HR-SP-001                          ..\Heat Treat.5.20.02\PD-HT-705SM.xls
                                                                                                                                                  HR-SP-002                          QC-TM-41 Training Matrix.xls                                                                                                                             Prepared by: Ralph Sulser
                                                                                                                                                                                                                                                                                                                                              Approved by: Keith Shepard




                                     D:\Docstoc\Working\pdf\ca0fddd9-ac1c-499a-b578-3d2e24c37747.xls Doc No.: QC-PM-001                                                                            Rev. Date: 5/28/04                                                                                                                                            Rev. 1
                                      Process Map: Interaction Sequenced                                                                                                      MSC
                                                                        Internal audit                                                             QC-SP-018
                                                                                                                        Continual improvement                                                   QC-SP-021
Management                                   Business Planning/                      Management
Oriented                                     Resource Planning                       Review                             Customer Satisfaction/feedback                                                           QC-SP-011                                                  Prepared by: Ralph Sulser
Processes                                                  MGT-SP-002              QC-SP-001                                                                                                                                                                                Approved by: Keith Shepard
                                                                                                                        Data analysis
                                                                                                                                                                                                                 QC-SP-019 & QC-SP-020
                                                                                                                       Corrective & preventive actions
                                             President,                                Production                          Engineering -
Support                                                                                                                                                          Maintenance                             Production                                  HR                               Quality
                                             Sr. Mgr. PC/Sales                        Control Mgmt.                        Process design
Oriented                                     Sr. Mgr. Prod/Eng
Processes

                                               Receive RFQ from customer
 Customer Oriented Processes




                                Inquirey/R
                                   FQ        Review all customer requirements
                                              with Contract review team-MSC

                                             MGT-SP-001
                                                                                                                                             Establish major product/component and cost targets.
                                                                                                                                         Review for costs/manufacturing/volumes/ lead times /feasibility
                                                                                      Define material cost              Define tooling and Gage                                                                           Determine cost of labor
                                                                                                                        cost as required
                                             Calculate Plant
                                             Manufacturing cost
                                                                                       Determine timing &                Determine machines &                                                    Determine manufacturing                                                    Determine quality criteria,
                                               Define total manufacturing &                 delivery                          equipment                                                                feasibility,                                                          customer requirements
                                                                                                                                                                                                       availability

                                                 Develop price/cost.                 Determine materials &
                                                ,delivery. Review with                    packaging
                                                      RFQ team

                                              Submit quote to customer



                                                 Follow-up quote and
                                                  review w/customer

                                                                                                                            Receive prototype
                               Planning &                                            Source &         Receive,               tooling if needed                                                                                                 Resources Staffing               Establish Quality
                                                  Receive P.O. for                  Procure Raw       inspect &                                                                                                                                                                  Plans-APQP
                               Prototype                                              Material          store                                                                                           Prototype Build
                                               Prototype build if reqd.                                                                                                                                                                                                            QC-SP-023
                                  Build
                                                                                                                                                                                                                                                                               Determine & procure
                                                                                   PH-SP-002
                                                                                                                                                                                                                                                                             QC-SP-017 Gage Control
                                                                                                                                                                                                                                                                            Control Plans QC-SP-006
                                                 Source tooling and                                                        Order & receive Mass                                                                                                 Establish training          FMEAs 007     OPIs SP010
                                                      timing                                                                production tooling                                                                                                       needs
                                                                                                                                                                                                                                                                            Cpk development

                                                                                                                                                              Tooling set up and production trials                                                                           PPAP/PSW QC-SP-009

                                                                                      Source &         Receive,                                                                                                                Training HR-SP-001 + Department Skill Maps
                                               Receive P.O. for mass                 Procure Raw       inspect &                   OK                                                                 Production scheduled
                                  Mass              production                         Material          store                                                     Equipment                                                                                                Gage calibrations
                               Production
                                                                                   PH-SP-002                                                                 Preventive Maint. Plan                                                                                         QC-SP-017 Gage Control
                                                                                                       NG                                                         Contingencies                      Production operations
                                                                                                                                                                   MT-SP-001                    Process          PD-SP-001
                                                                                                   Handle per                                                      QC-SP-024                    Control
                                                                                                   QC-SP-016                                                                                     Inspections/each process                                                          Inspection
                                                                                                                                                                                                                                                                                                             NG
                                                                                                                                                                                                QC-SP-010        QC-SP-004                                                   Data Collection and
                                                                                                                                                                                                       OPIs         Records                                                   analysis (SPC) for          Handle per
                                                                                             Stage/Store                                                                                                      Packing                                                         improvement and             QC-SP-016
                                                                                                                                                                                                                                                                            monitoring & prevention
                                                                                                                       PC -SP-001                                                                                                                                             of possible errors.

                                Delivery                              Ship to customer-ASN
                                                                                                                                                                                                                                                                                 QC-SP-010,
                                                                                                                                                                                                                                                                                 QC-SP-004


                                Payment           Invoice Customer


                                                                                   Customer feedback and communications -e-mails, Ph. Calls, 8D info--gathered & dispersed to appropriate function(s), countermeasures meeting to close all issues and concerns
                               Customer
                               Feedback           Corrective Action                                                                                                                                  Corrective Action QC-SP-019                                     Corrective/ Preventive Action




                                      Doc No.: QC-PM-001.b                                                                                                             Rev.Date: 5/28/04                                                                                                                               Rev.: 1
MUSASHI SOUTH CAROLINA                                    ORGANIZATIONAL CHART                       DOC NO.:MSC-QM1
                                                                     Page 38 of 45                          APPENDIX



               ORGANIZATIONAL CHART

               The most recent organizational chart is maintainrd by the Human Resources
               department, and is on file.




Note: Printed documents are not controlled copies-check master computer files for latest revisions


                                                                                                            Edition :01
                                                          Issued by:Ralph Sulser                         Date: 04/02/03
                                                        Approved by: Keith Shepard                               Rev. 0
      MUSASHI SOUTH CAROLINA                               MANAGEMENT RESPONSIBILITY                     DOC. NO.;MSC-QM1
                                                                            Page 39 of 45                      SECTION #: 5



5.0 Management Responsibility
5.1 Management Commitment
The MSC management is committed to the development and implementation of the quality management system
and continually improve its effectiveness by:

a)   Communicating to all employees of the company: the importance of meeting customer as well
as statutory and regulatory requirements through regular training programs, display of documents
and departmental meetings, communication meetings, and management meetings.
b)   Establishing the quality policy based on the improvement objectives,
c)   Ensuring that quality objectives are established,
d)   Conducting regular management reviews, and
e)   Ensuring the availability of resources for improvements when required.

f)      Product realization process and support processes are reviewed for their effectiveness and efficiency

5.2             Customer Focus
The Top Management of MSC ensures that customer requirements are determined and fulfilled with the aim of enhancing
customer satisfaction. While reviewing the requirements, the implied needs and expectation of the customer are also
identified. These are conveyed to the respective functions for ensuring that they are met. As a part of Management Review
(Refer 5.6 below) , a focus is made for communicating the customer requirements to all functions and ensuring product
conformance.

Methods of determining customer requirements, expectations and satisfactions are defined in the procedures

               MGT SP 001                      Contract Review (Product Requirement Review)
               QC SP 023                       APQP (Planning for product realization)
               QC SP 023                       APQP (Planning for product realization)

5.3             Quality Policy

The Management of the company has defined the quality policy ensuring that the quality policy
a)   is appropriate to the purpose and organizational goals of the company,

b)  includes a commitment to comply with requirements and continually improve the effectiveness of the quality
management system,
c)  provides a framework for establishing and reviewing quality objectives,

d)     is communicated to all employees of the company and is understood at all levels in the company,

e)     is periodically reviewed for continuing suitability.




Note: Printed documents are not controlled copies-check master computer files for latest revisions


                                                                                                                   Edition: 01
                                                                 Issued by: Ralph Sulser                        Date: 07/30/03
                                                               Approved by: Keith Shepard                               Rev. 1
     MUSASHI SOUTH CAROLINA                                MANAGEMENT RESPONSIBILITY                             DOC. NO.;MSC-QM1
                                                                            Page 40 of 45                              SECTION #: 5



The Policy of the company has been displayed at strategic locations and also distributed to all employees. Periodic Training
Programs are held for understanding by all the functions through out the organization. Quality Policy distribution and
display records are maintained.
The policy of Musashi South Carolina is to achieve total customer satisfaction by delivering products and providing services
that meet or exceed customer quality requirements and expectations. Deliver on time, and at the most competitive prices in
domestic and export market for our entire product range.
It is implied that all people at all levels in our organization be committed to comply with requirements and continually
improve the effectiveness of the Quality Management System and their performance. Ultimate goal of working towards
achieving zero defects. Necessary measures are also taken towards product safety, and environmental needs to minimize
potential risks to employees, and subsequent end users.

Our mission is to make Musashi South Carolina a synonym for a world-class organization excelling in gear, and gear
assembly manufacturing.

MSC Senior Management, Department Managers, Assistant Managers, and area Team Leaders shall ensure that this policy
is understood, implemented and maintained by all personnel in their respective division / department / section.



                                   QUALITY POLICY
“MSC will continually strive to produce quality products that meet or
exceed customer expectations, cost competitiveness, and timely
deliveries – QCD (Quality, Cost, Delivery) – through exercise of
continual improvement, employee support, and customer
communication.”




Dated: 03/20/2003                                                              S. Okubo              President




Process interactions of achieving product realization are described below outlining typical duties, and
inputs of the department management to focus on objectives, and
 customer satisfaction. Current plant organizational charts are on file in H.R.

Note: Printed documents are not controlled copies-check master computer files for latest revisions
                                                                                                                         Edition: 01
                                                                 Issued by: Ralph Sulser                              Date: 07/30/03
                                                               Approved by: Keith Shepard                                     Rev. 1
     MUSASHI SOUTH CAROLINA                                MANAGEMENT RESPONSIBILITY                         DOC. NO.;MSC-QM1
                                                                            Page 41 of 45                          SECTION #: 5




1.           President - Musashi South Carolina
 The senior most executive at the plant and designated as President, and has responsibility for the entire operation..
 Approves customer and supplier contract review actives.
 Approves the company's policies and gives directions for managing the objectives, and company activities.
 Approves the MSC's quality policy and objectives.
 Responsible for providing essential resources and personnel for implementation of the quality policy, and quality
management system.
 Responsible for effective implementation of the quality management system.
 Through leadership and actions, the President creates an environment where people are fully involved, and in which a
QMS can operate effectively.
 Reviews customer scorecards for Visteon, and other customers, on their web sites
 Chairman of the Management Review Committee.

2.     Senior Manager Production
 Overall responsibility for planning, coordinating & managing activities related to functions of Production,
Manufacturing Engineering, Maintenance, Projects.

 Preventive/Predictive Maintenance, Tool/Die, Mechanical, Electrical, Compressor, pump house and LPG and all utilities
 Manages, and coordinates any modifications to be carried out in the existing operations or enhancing the efficiency of
the plant.
 Responsible for building the required competency level in the employees reporting to him.
 Assisted by Managers, and Assistant Managers for Forging, Lathing, Heat Treat/Assembly, for these activities.
 Assisted by Manufacturing Engr. Mgr, Maint. Manager.
 Authorized for approval of production processes in the plant.
 Authorized for taking corrective & preventive action in case of deviations in the operations.
 Authorized to “STOP PRODUCTION” in his area, if systems are not being implemented.
 Developing facilities, processes and equipments.
 Guiding and supporting QMS activities including regulatory requirement if any, for the products.
 Reviews customer scorecards for Visteon, and other customers, on their web sites
 Reports to the Plant President.

3.    Accounting Manager
      Overall responsibility for all accounting, finance, and supplies purchasing functions in the plant.
      Assists in guiding and supporting QMS related activities in those functions such as purchased supplies, tooling, and
stores.
      Assisted by the, Assistant Manager of Accounting, and the Assistant Manager Purchasing/Buyer, Accounting
Coordinator, and IT Administrator for these activities.
      Reports to the Plant President.

4.       Manager– Human Resources
       Responsible for coordinating with departmental heads to obtain staffing.
       Determine the training needs related to managers, staff, associates, temporaries, probationers, and trainees.
       Identifies, and implements training, and employee motivation needs.
       Environmental/Safety/Health.
       Also in charge of public affairs, and industrial relations to enhance productivity.
       Assisted by the Administrator of EHS. ,H.R. Assistant, and Payroll Coordinator.
       Reports to the Plant President.

Note: Printed documents are not controlled copies-check master computer files for latest revisions



                                                                                                                           Edition: 01
                                                                 Issued by: Ralph Sulser                                Date: 07/30/03
                                                               Approved by: Keith Shepard                                       Rev. 1
     MUSASHI SOUTH CAROLINA                                MANAGEMENT RESPONSIBILITY                      DOC. NO.;MSC-QM1
                                                                            Page 42 of 45                       SECTION #: 5




5.      Senior Manager – Quality Control
Responsible for quality systems, procedures, and instructions for the plant
    Monitoring the Process for outputs.
    Providing Test Status on In-coming, In-process and Finished Products
    Documenting trends in quality and current quality levels.
    Controlling of non-conforming products.
    Authorized for dispositioning deviations on Non-conforming products for use at next stages.
    Authorized for release of finished product.
    Obtaining waivers from customer on non-conforming finished products.
    Developing and implementation of plans for customer complaint resolution.
    Assessment of Preliminary (Ppk) and on going process capabilities (Cpk).
    Preparing details for Production Part Approval Process.
    Inspection and testing at incoming, in process and final stages
    Controlling the procedures for In-coming, In-process and Final Inspection Stages
    Calibration of all identified inspection, measuring and test equipment.
    Authorized for providing inspection and test status on all products.
    Identifying and implementing statistical technical techniques for process and product.
    Verifying the effectiveness of corrective and preventing actions.
    Issuing and maintaining originals and withdrawal of obsolete APQP documents, process standards, drawing and
documents of external origin.
    Production Part Approval Process (PPAP&PSW) and liaison with customers for same
    Establishing, and maintaining customer communication channels.
    Monitoring and Measuring Customer Satisfaction metrics.
    Representing the needs of the customer in internal functions in addressing the ISO/TS 16949 requirements.
    Assisted by Asst. Mgr. QC, QC Technicians, QC Associates, TS16949 Coordinator
    Reviews and maintains scorecards for Visteon, and other customers, weekly on their web sites
    Designated as Customer Representative to ensure customer requirement are met, and contact for quality issues.


·     Representing the needs of the customer in internal functions addressing the product realization planning (APQP) for
ISO/TS 16949 requirements (e.g. selection of special characteristics, setting quality parameters.
    Develops manufacturing process design quality controls including Process Flow Diagram, FMEAs, Control Plans and
Process Standards, and Inspection Standards.
    Reports to the Plant President




Note: Printed documents are not controlled copies-check master computer files for latest revisions




                                                                                                                    Edition: 01
                                                                 Issued by: Ralph Sulser                         Date: 07/30/03
                                                               Approved by: Keith Shepard                                Rev. 1
     MUSASHI SOUTH CAROLINA                                MANAGEMENT RESPONSIBILITY                            DOC. NO.;MSC-QM1
                                                                            Page 43 of 45                             SECTION #: 5




6. Senior Manager Sales/Production Control/New Model Projects
     Purchasing of manufacturing materials, and supplier monitoring.
     Production scheduling of all products
     Control of customer-supplied products, and packaging
     Receiving, storage and issue of products, and packaging.
     Reviewing, approving and maintaining effectiveness of the procedures for the above activities.
     Disposal of scrap, and waste.
     Handling storage, preservation, identification and test status of all products during receipt, storage,
work in-process and dispatch to customer.
     Ensuring 100% on time delivery to customer.
     Inventory management of purchased products, WIP and finished product.
     Checking adequacy of FIFO.
     Supplier performance tracking
     Supporting QMS requirements related to these functional areas.
     Assisted by Production Control Manager, and Coordinators.
     Reviews customer scorecards for Visteon, and other customers, on their web sites
     Preparing and submitting the quotation offer to customers.
     Receipt of order / dispatch schedules from customer.
     Review of customer’s order for correctness.
     Resolving any differences between the inquires and potential orders.
     Communicating customer’s requirement to concerned personnel in the company.
     Interaction with Customer for product development and all contract review activities
     Reports to the Plant President


7. MSI Engineering- Japan

    Reviewing, recommending and providing guideance for effectiveness of the procedures on Product requirement
Review – Manufacturing Process Designing and Development; Plant Facilities and Equipments Provisioning,
    Developing guidelines of new products planning.
    Reviewing customer engineering specifications and standards.




8.    President - Sales and Marketing-Musashi North America, Detroit, MI
      Receipt of Inquiries from the customers and passes thyrough to Musashi South Carolina
      Coordinating with MSC President for planning future production
      Assists in assessments of customer satisfaction.
      Reports to President Musahi North America




Note: Printed documents are not controlled copies-check master computer files for latest revisions


                                                                                                                        Edition: 01
                                                                 Issued by: Ralph Sulser                             Date: 07/30/03
                                                               Approved by: Keith Shepard                                    Rev. 1
     MUSASHI SOUTH CAROLINA                                MANAGEMENT RESPONSIBILITY                      DOC. NO.;MSC-QM1
                                                                            Page 44 of 45                       SECTION #: 5




9.    Management Representative ( 5.5.2 )
The Management of the company has appointed the Senior Manager-Quality Control, as Management Representative,
assisted by the TS16949 Coordinator, who, irrespective of other responsibilities, has the responsibility and authority that
includes:
Management Representative (MR) and TS16949 Coordinator are responsible for
          Establishing, implementing and maintaining quantity system in accordance with ISO/TS 16949:2002 (E)
          Reporting the performance of the Quality System for Management Review, which forms the basis for
    improvement of Quality System.
          Liaison with internal and external parties on matters relating to Quality System.
          Ensuring timely management review of the Quality System.
          Organizing Audit Summary Report, and summary of the Preventive Actions for Management Review.
          Approving and ensuring effectiveness of procedures on Document Control, Quality Management System Auditing
    and Records Control.
          Preparation and issue of Quality System, and Procedures Manuals
          Maintaining original documents and their master lists and issue of Quality System Manual, all Quality System
    Procedures, all work instructions, and samples of all formats
Identification of training needs for building a team of internal quality auditors

5.4 Planning
5.4.1 Quality objectives
Top management ensures that quality objectives, including those needed to meet requirements for product [see 7.1 a)] are
established at relevant functions and levels within the organization. The quality objectives are measurable and consistent
with the quality policy.

Top management defines quality objectives and measurements that are included in the business plan and used to deploy the
quality policy.
Quality objectives address customer expectations and achievement goals within a defined time period.
5.4.2 Quality management system planning
Top management ensures that
a) the planning of the quality management system is carried out in order to meet the requirements given in 4.1, as well as
the quality objectives, and
b) the integrity of the quality management system is maintained when changes to the quality management system are
planned and implemented.
5.5 Responsibility, authority and communication
5.5.1 Responsibility and authority
Top management ensures that the responsibilities and authorities are defined and communicated within the organization.
5.5.1.1 Responsibility for quality
Managers with responsibility and authority for corrective action are promptly informed of products or processes that do not
conform to requirements.
Personnel responsible for product quality have the authority to stop production to correct quality problems.
Production operations across all shifts are staffed with personnel in charge of, or delegated responsibility for, ensuring
product quality.

5.5.2 Management representative
Top management has appointed the Senior Manager-Quality Control who, irrespective of other responsibilities, has the
responsibility and authority that includes:
a) ensuring that processes needed for the quality management system are established, implemented and maintained,
b) reporting to top management on the performance of the quality management system and any need for improvement, and
c) ensuring the promotion of awareness of customer requirements throughout the organization.
d) liaison with external parties on matters relating to the quality management system.
Note: Printed documents are not controlled copies-check master computer files for latest revisions
                                                                                                                     Edition: 01
                                                                 Issued by: Ralph Sulser                          Date: 07/30/03
                                                               Approved by: Keith Shepard                                 Rev. 1
     MUSASHI SOUTH CAROLINA                                MANAGEMENT RESPONSIBILITY                  DOC. NO.;MSC-QM1
                                                                            Page 45 of 45                   SECTION #: 5



5.5.2.1 The Sr. Manager-Quality Control has been designated as Customer Representative to assure customer requirements
are addred within MSC. Visteron will be notified of any changes to customer rep., or senior mgmt.
5.5.3 Internal communication
The Management of the MSC ensures that appropriate communication processes are established within the company and
that communication takes place regarding the effectiveness of the quality management system, and actions to be taken on
non-conformances encountered in the activities including customer communication.

5.6 Management review
5.6.1 General

Top Management of MSC reviews the company’s quality management system, at planned intervals to ensure its continuing
suitability, adequacy and effectiveness. The Quality Management System of the company is reviewed by the Management
Review Team that comprises all Managers of Departments under the Chairmanship of the President.

The review includes assessing opportunities for improvement and the need for changes to the quality management system,
including the quality policy and quality objectives. Management Representative maintains records of management reviews.
5.6.1.1 Quality Management System Performance-Input
-      All requirements of the quality management system, performance, and trends for continual improvement.
-      Monitoring quality objectives
-      Regular reporting and evaluation of cost of poor quality
-      Evidence of achieving: quality objective specified in the business plan
-      Evidence of customer satisfaction with products supplied
5.6.1 Review input
The input to management review in the form of Agenda for Management Review in Steering Committee meeting includes
information for the period under review on all elements of QMS STANDARDS. However, more focus is placed on the
following:
a)    Business Plan/Quality objectives
b)    Cost of poor quality
c)    Customer satisfaction, feedback, (Customer perceptions & Complaints)
d)    Analysis of actual and potential field failures and their impact on quality, safety or the environment
e)    Follow-up actions from previous management reviews,
f)     Results of internal/external audits including the trends,
g)     Process performance and product conformity,
h)    Status of preventive and corrective actions,
i)     Planned changes that may affect the quality management system, and
j)     Recommendations for improvement especially for product / process characteristics,
k)     Status and results of Quality objectives and Quality Improvement Programs,
l)     Performance of Suppliers, e.a., monthly ratings for quality, and delivery
5.6.2.1 Additional Review Inputs
a) Management analysis of actual and potential field failures, and their impact on quality, safety, or the environment.
b) Measurements at specified stages of design and development will be defined, analyzed, and reported with summary
results. Items such as quality risks, costs, lead times, critical paths, and others as appropriate.
5.6.3 Review output
The minutes of the management review meeting are recorded and maintained for a specified period. The output from the
management review in the form of minutes of meeting and action plans include any decisions and actions related to:
a) Improvement of the effectiveness of the quality management system and its processes,
b) Improvement of product related to customer requirements, and
c) Resource needs support
                             Procedure No. QC SP 001 – Management Review

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                                                                                                                 Edition: 01
                                                                 Issued by: Ralph Sulser                      Date: 07/30/03
                                                               Approved by: Keith Shepard                             Rev. 1

				
DOCUMENT INFO
Description: Product Quality Management document sample