ELECTROLUX MAJOR APPLIANCES
THE
GLOBAL
SUPPLIER
QUALITY
ASSURANCE SYSTEM
GSQA POLICY and DEFINITIONS
EL 29000
Edition 2007
Revision A
GSQA EL29000 - 2007
1
AB ELECTROLUX VISION
AB Electrolux will be the world leader in our products, which make everyday life more
comfortable, easy and safe.
We will provide products, services and marketing of such excellent value, that customers will
actively choose to do business with us. From this we will create shareholder value.
To reach our goals in providing value to customers and shareholders, we will continue to
develop an AB Electrolux culture, built on the strengths of the multi-cultural organisation, and
embraced by all our team members. Key values are co-operation, people development,
environmental concerns, professionalism and speed.
AB ELECTROLUX VALUES
Co-operation
Trusting
Open-Non-productive
Borderless-International
Responsible
Externally Oriented
Professionalism
Intellectually Sound
Advanced-Simple
Result Oriented
GSQA EL29000 - 2007
People Development
Respect and Encourage
Diversity*
Team Members*
Equal Opportunities
Environmental Concern
Lifecycle Analysis
Strategic-Proactive
Speed
Communicative
Nonbureaucratic-Disciplined
Willingness to Change
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AB ELECTROLUX ENVIRONMENT POLICY
Become a leader and driver in environmentally sound products and processes and to:
Actively develop demand through the use of environmentally sound products.
The responsibility of all business units includes:
Complying with current legislation/regulations
Planning for changes in legislation/regulations
Analysis of environmental consequences of new products/production technology and
capital expenditure
Continuous reduction in the use of energy, chemicals and raw materials
Communication of environmental progress to best commercial advantage
To be correct and open on all environmental matters
Purchasing Policy
Mission
To be world class in managing external resources.
Objectives
Engage pro-active suppliers who will contribute to:
Generating innovation.
Shortening the time to market.
Reducing total product cost.
Improve product quality.
Optimise performance / cost ratio.
GSQA EL29000 - 2007
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Preface
Purchased materials/components constitute a major proportion of the content of products
manufactured by AB Electrolux, and, consequently, the quality of these materials/components
is of utmost importance for the overall quality of our products.
AB Electrolux is committed to put fault-free products on the market. This will be the combined
result of good specifications, standardisation, supplier consolidation and supplier certification.
AB Electrolux shall therefore be very careful in selecting suppliers, using only those that can
demonstrate the full commitment and ability to comply with our requirements.
The basic Supplier Quality Assurance objectives are to assist Purchasing to:
(a) realise the greater combined purchasing opportunity of working through the entire AB
Electrolux organisation,
(b) achieve the optimised supplier base, and
(c) consequently create the most effective network of alliances with the best suppliers in
the industry.
The Global Supplier Quality Assurance System (GSQA) is documented in a series of
procedures and manuals .The purpose of this document, is to communicate to current and
potential suppliers, the structure and contents of AB Electrolux Global Supplier Quality
Assurance System.
This release allies GSQA with the new AB Electrolux Purchasing Process.
Signed
Francois Van Caeyzeele
Senior Vice President
Purchasing
AB Electrolux
GSQA EL29000 - 2007
Dated
Sture Ögren
Senior Vice President
Quality
AB Electrolux
Hans Stråberg
President
and CEO
AB Electrolux
4
Contents.
1. Introduction
1.1 Global Organisation
1.2 Purchasing Strategy
1.3 The Purchasing Process
1.4 Reference documents
2
Global Supplier Quality Assurance Policy The Global SQA Policy consists of the
following parts - Purchasing Documents, Assesment and Monitoring, Classification of
Suppliers, Supplier Selection, Supplier Quality activities and Supplier Responsibility.
2.1 Purchasing Documents
2.1.1 Purchasing Documentation and Commercial Agreements
2.1.1.1 Purchase Contract
2.1.1.2 Purchase Order
2.1.1.3 Special Agreements
2.1.2 Product Specifications
2.1.3 Change Notifications
2.2 Assessment and Monitoring
2.2.1 The process of Assessment and Monitoring
2.2.2 Supplier Profile Questionnaire
(EL29001)
2.2.3 Supplier Management Systems Assessment
(EL29002)
2.2.4 Supplier Process Audit Questionnaire
(EL29002A)
2.2.5 Supplier Preproduction Quality Assurance
(EL29003)
2.2.6 Supplier/Commodity Quality Statusing Process (EL29005)
2.2.7 Supplier/Commodity Purchasing Statusing Implications
Incl. On Hold Process
(EL29005A)
2.2.8 Supplier Self Certification requirements
(EL29006)
2.2.9 Supplier Ongoing Evaluation
(EL3000)
2.3
2.4
2.5
2.6
3
Classification of Suppliers
Supplier Selection
Supplier Quality Activities
Supplier Responsibility
2.6.1 General
2.6.2 Product Liability
2.6.3 Quality Targets
Glossary
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GLOBAL SQA POLICY
1.0 Introduction
1.1 Global Organisation
AB Electrolux - The Global Appliance Company
Electrolux is the world's leading appliance manufacturer. This includes Consumer durables such
as refrigerators, washing machines, and vacuum cleaners, as well as gardening and forestry
equipment such as lawn mowers, garden tractors and chainsaws. It also includes Commercial
appliances for professional cooking, refrigeration and washing.
Within the Corporate Group there are about 50 Product Divisions, spread all over the world.
AB Electrolux consists of such companies as - AEG, Frigidaire and Zanussi, to name just a few.
1.2 Purchasing Strategy
Corporate Purchasing and Supply Strategy is based on a global market outlook, and a long term,
just in time, zero defect and cost oriented co-operation with global suppliers.
Supplier selection will be strategic in that some will be global, some will be regional, some will
be product type dependent, and others may be local. This will depend on many factors which
will be assessed by the Group Purchasing Council.
The objective, however, is to limit our supply base to a manageable few that can meet our
expectations, rather than to focus on special quantity targets for suppliers or commodities.
The intention is to reserve a major part of the total purchasing value for our Preferred
suppliers, and that all suppliers are either Preferred or Active suppliers. (See Classification of
Suppliers)
1.3 The Purchasing Process
The purchasing Process is a documented process which contains a number of different
procedures and tools to give support in the buying decisions. The results given by the GSQA
Process is a vital input into the Purchasing Process.
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1.3 Reference Documents
ISO9001:2000, ISO/TS16949, QS-9000 or equivalent - Quality Systems
ISO9000:2005 - Quality Management Systems --- Fundamentals and Vocabulary
The Global SQA is defined through the following documents:
EL29000 EL29001 EL29002A EL29002P EL29003 EL29005 EL29005A EL29006
EL3000
GSQA Policy and Definitions
Supplier Profile Questionnaire
Supplier Process Audit Questionnaire
Preliminary Supplier Process Audit Questionnaire
Supplier Pre-Production Quality Assurance
Supplier/Commodity Quality Statusing Process
Supplier/Commodity Purchasing Status
Incl. On Hold Process
- Supplier Self Certification Requirements
- Supplier Requirements relating to Ongoing Supply and Evaluation
All these documents can be accessed in the following web site
http://www.electrolux.com/node322.aspx
These documents are supported by:
The Integrated Product Development Process
The Purchasing Process Procedures and Tools
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2.0 Global Supplier Quality Assurance Policy
The Global SQA Policy consists of four parts;
1.
2.
3.
4.
Purchasing Documents
The Assessment and Monitoring Process
Classification of Suppliers
Supplier Responsibility
2.1 Purchasing Documents
2.1.1 Purchasing Documentation & Commercial Agreements
All Purchasing & Commercial Agreements shall be written in English. A translation into a
domestic language is optional.
2.1.1.1 Purchase Contract
Purchase Contracts and Quality Agreements shall be established for all major components and
raw material, through a standard format. The intention is to have a long term agreement for
matters of lasting durability, and with separate enclosures of details that may have to be
changed or re-negotiated at closer intervals. These appendices can be:
Technical specifications
Schedule for timing of purchases and forecasts
Control plans and Quality Limits
2.1.1.2 Purchase Order
While the Purchase Contract states the terms and conditions, the Purchase Order shall be a firm
written order, comprising all relevant information necessary to effect delivery of the
merchandise. It shall refer to price lists, drawings, specifications etc.
2.1.1.3 Special Agreements
Special agreements shall be made for such matters as external product development, consulting
etc.
2.1.2 Product Specifications
The terms "Local" and "Common" Components are used frequently. Local Components are
used only by one Product Division. Common Components are used by two or more Product
Divisions. One Product Division is assigned Design Owner, this Product Division is responsible
for the drawings and all design changes of the Common Component.
All components should have the customer Part Number clearly assigned.
2.1.3 Change Notifications
Suppliers will be notified of any relevant changes to the product which they supply, by an
Electrolux Engineering Change Notice. This may or may not change the Revision Level of the
associated Specification. Suppliers are expected to review and control this information, and
ensure the product is updated in line with this.
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2.2 Assessment and Monitoring
2.2.1 The Assessment and Monitoring Process
The Assessment and Monitoring Process consists of a number of different procedures starting
with the gathering of Supplier Information through to the Self Certification of a well
performing supplier, see table below. The procedures are documented in the EL files which
serves both as a description of the procedures of Assessment and Monitoring, as well as
defining the Electrolux Supplier Quality Assurance Requirements.
Approved
Approved
Approved
Recommended
Compatible
Preferred
Supplier
EL 29006
Ongoing Evaluation
EL3000
Quality Statusing
EL29005
Process Audit
EL 29002A
Failed
On Hold
EL 29005A
Q.A.
Planning
EL 29003
Preliminary
Process Audit
EL29002P
Supplier Profile
EL 29001
GSQA Policy and definitions EL29000
Suppliers Statusing System EL 29005
An unknown
potential
supplier
Planning for
production
start up
Time
Production
start up
Below you will find a short description of the different procedures.
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2.2.2 Supplier Profile Questionnaire (EL 29001)
The Supplier Profile questionnaire is a document which assists in the gathering of general
business information about a supplier. Additionally, it also addresses topics which are
strategically important, such as:
Business Philosophy
Long Range Strategy
Environment and Communications.
This in itself does not constitute a Supplier Profile as defined in the Purchasing Process but
provides much of the information that makes up such a Supplier Profile.
The details of any Suppliers Profile Questionnaire obtained is made available to all AB
Electrolux Supply management personnel.
2.2.3 Supplier Process Audit (EL29002A)
Well structured Management Systems are essential to assure consistent quality. Each supplier
must have a system for ensuring the quality of goods produced. This must provide the most
suitable framework and instrument for guaranteeing that the product conforms to the
specifications defined.
AB Electrolux recognises Third Party Management System Accreditations such as ISO
9001:2000, TS 16949, QS 9000 and various others of a similar nature such as Other company
accreditations and as such will not conduct Management system assessments, but will
concentrate on Process Auditing i.e. concentrating on those processes specific to the parts being
produced for Electrolux as opposed to the whole operation.
Where a supplier is strategically important to AB Electrolux then the supplier can expect to be
visited by either AB Electrolux Supplier Quality Assurance personnel or Agents appointed on
their behalf to have such an assessment conducted.
Under certain circumstances AB Electrolux can allow a supplier to do a Self Assessment using
the above questionnaire. This however will not carry the same weight as any of the above.
The results of an AB Electrolux or Self Assessment are committed to the above questionnaire
format and suppliers are rated accordingly.
The AB Electrolux assessment questionnaire is ISO 9001:2000 Quality system based, and
covers all items which influence the suppliers ability to meet the Management System
requirements.
TS 16949, QS 9000 are regarded as equivalent to ISO 9001:2000 for the purposes of this
assessment.
The details of a Suppliers Management System Assessment status are made available to all AB
Electrolux personnel associated with Supply management.
The Supplier Process Audit is similar in format to the Management System Assessment but
concentrates in more depth on the processes used to produce the parts involved. It can be
regarded as a Partial System Assessment but in fact goes into much more detail in relation to all
areas affecting the manufacturing process.
Its main function is to ensure that the supplier is using capable processes to manufacture the
parts to be delivered to AB Electrolux.
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2.2.4 Preliminary Supplier Process Audit (EL29002P)
This is a shortened version of the procedure in section 2.2.3. This procedure can be used by
Quality and/or Purchasing personnel to do a quick initial assessment of New Potential Suppliers
to get a feel for the supplier process capabilities.
2.2.5 Supplier Preproduction Quality Assurance (EL29003
The final quality of a component or process is due, in great part, to the early planning, and
analysis & testing done prior to switching on production. To avoid non-conformance as much
as possible, accent is placed on the Pre-Production aspects relating to quality.
Supplier Preproduction Quality involves the QA Project Planning sheet which is a document
that allows for the planning of a part or component from conception, through development,
manufacture, qualification and final delivery.
Supplier involvement shall be initiated during the conceptual stage of product development.
The expectation here is that each supplier utilise the various tools for Continuous Improvement
which are described in EL29003, to assure process capability, product quality and reliability.
2.2.6 Supplier Ongoing Evaluation (EL3000)
The evaluation of supplier would not be complete without appraisal of current and past
performance data in relation to the suppliers quality.
Suppliers shall therefore be continuously evaluated on such aspects as rejects from incoming
inspection and assembly lines, field failures, punctuality of deliveries and degree of cooperation between purchaser and supplier. The results of this evaluation shall be sent to the
supplier on a regular basis.
Supplier Ongoing evaluation concentrates on the suppliers quality as seen Internally within our
factories.
The results of the Supplier Ongoing evaluations shall be provided to the supplier on a regular
basis.
Line rejected components and samples of parts replaced by customer field service, shall also be
returned to the supplier whenever it is deemed to be necessary. These faulty or out of
specification components carry a lot of information about the failures.
They must be examined by the supplier in order to find the root causes of the failures.
This must be followed by corrective actions which will eliminate the failures.
2.2.7 Supplier/Commodity Quality Statusing Process (EL29005)
The suppliers performance re Management system and Ongoing Evaluation is scored and the
results aggregated by PD, and if the supplier is used by more than one PD then the PD results
are averaged.
On the basis of this aggregated scoring the supplier is given a Q status, see table below.
These scorings and classifications attained are an integral part of the process used to identify the
most appropriate suppliers for the provision of materials and components. This is referred to as
the Supplier Certification Process which is an important input into the Supplier Classification
according to the Purchasing Process.
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Q Approved
Supplier
Green
Q Limited
Supplier
Yellow
Q Restricted
Supplier
Red
Quality Supplier Classifications
Suppliers who consistently achieve the expected levels of
quality in all that they deliver to whichever of our PDs.
This is the level we want all suppliers to attain.
Suppliers who attain this are candidates for Supplier Self
Certification.
These suppliers generally are also Purchasing Preferred.
Suppliers who having some problem with their quality or
delivery which is affecting any one or more of our PDs.
Suppliers in this category have to take action within a
reasonable time period to improve their status to that of Q
Approved or they may find themselves moved down to the Q
restricted category.
These suppliers are generally regarded as Purchasing Active.
These suppliers are having major problems with either Quality
or Delivery to one or more of our PDs. Suppliers in this
category are effectively On Hold and have to take drastic
action within a reasonable time to improve to their status to
that of Q Limited or Q Approved. These suppliers are
generally regarded as Purchasing Restricted (On Hold) and if
improvement does not happen within a reasonable time frame
then the suppliers are in danger of becoming Purchasing
Disqualified.
Beyond Q Approved suppliers we also recognise Q Self Certificated suppliers.
See section 2.2.9
2.2.8 Supplier/Commodity Purchasing Status incl. On Hold process (EL 29005A)
A supplier can be put ‘‘On Hold’’ if it fails to fulfill the Electrolux purchasing requirements.
One important signal for taking the decision is a low score in the Supplier/Commodity Quality
status.
There are implications relating to whichever Purchasing supplier status is attained.
For various, Purchasing - Commercial reasons, a supplier can ultimately have an entirely
different Purchasing status from that indicated by the Q status.
A Q Approved supplier/commodity could under certain circumstances be downgraded to either
Purchasing - Active or even Restricted.
A Q Limited supplier/commodity could under certain circumstances be upgraded to Purchasing
Preferred or downgraded to Purchasing Restricted.
A Q Restricted supplier/commodity could under certain circumstances be upgraded and
regarded as either Purchasing - Preferred or Active.
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Supplier Self Certification System Requirements (EL29006)
Suppliers who are statused Q Approved suppliers in the above process and who have
consistently shown their ability to retain this status can become Self Certificated.
AB Electrolux is able to award some suppliers a Self Certificated status on the condition they
sign a Declaration of Conformity stating that they will voluntarily, without pressure from AB
Electrolux, continue to take all steps necessary to ensure continued good quality parts.
2.3 Classification of Suppliers according to the Purchasing Process
The classification of a supplier is decided by its ability to support the Electrolux Purchasing
strategy. That means the ability to meet Electrolux targets concerning Quality, Delivery, Cost,
Enviroment, Engineering etc. The classification is communicated internally and is used as a tool
in supply sourcing. The five levels are described in the table below.
Classification
Preferred Supplier
Active supplier
Restricted Supplier
(On Hold)
Disqualified Supplier
Potential Supplier
GSQA EL29000 - 2007
Description
This is the level that each supplier is expected eventually to achieve.
Only suppliers who have made a commitment to meet all the customer
expectations will achieve this classification.
Preferred Suppliers are characterised by financial stability, a
leadership position in Engineering, Quality, Cost and Delivery.
Suppliers classified as "Preferred" will be given first consideration on
all new business.
It is our eventual goal to have all commodities and parts supplied
by Preferred Suppliers.
An Active supplier is used, if the Preferred suppliers cannot be used
for specific reasons, as long as they fulfil AB Electrolux minimum
requirements, e.g. are at least quality useable.
This is for those suppliers who are participating in a project or
negotiation, with the target of becoming a Preferred Supplier.
Minimum expectation for this level, is the completion of Quality Plans
for all parts being purchased. Suppliers in this category may be
considered for new part development work.
This category applies to suppliers who are having major problems
either with quality or delivery or for some other reason. AB Electrolux
will take steps to reduce the supply volume. Commitments will be
limited in time. No new inquiries will be made and the supplier will
not be involved in new projects. Any problem parts will be subjected
to 100% inspection. If there is no improvement in an allotted time then
the supplier could become disqualified.
This supplier does not fulfil AB Electrolux minimum requirement. e.g.
is Quality Restricted. They shall not receive any new business and the
existing business will be phased out.
This supplier is not currently an AB Electrolux supplier, but is
regarded as having the potential to become a preferred or active
supplier and it should therefore be supported by AB Electrolux.
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2.4 Supplier Selection
Supplier selection is based upon a Purchasing Review of various supplier criteria including such
things as quality assurance measures as well as a competitive comparisons of price and cost.
Thus a Supplier's Profile (See GRIP) needs to be reviewed prior to any supplier selection
decision.
This information will be reviewed to determine the most appropriate supplier for the specific
commodity, component, or material involved.
This will provide more security, minimise risks, and ensure that better decisions are made
regarding supplier selection as well as fully documenting the suppliers situation.
The supplier shall be advised of the result of any such Purchasing review.
In accordance to this, the supplier may be expected to have to establish a Supplier
Improvement plan.
2.5 Supplier Quality Activities
AB Electrolux shall have a uniform handling of other quality matters, such as:
Quality improvement activities and programmes
Specific quality problems
Quality target setting
Quality assurance within joint product development projects.
2.6 Supplier Responsibility
2.6.1 General
The supplier will be responsible for, and will ensure
- that a batch that does not meet current quality requirements, will not be delivered;
- that control plan documents will be drawn up for each article number;
- that notified changes on drawings and in other information, are observed, so that the
latest agreed edition of drawings and other documents are used;
- that each division is notified immediately of any suspicion that the quality
requirements are not met by a batch already delivered;
- that routines are established for special handling of parts subject to safety
requirements;
- that notification is made of any plan which could impact the supplier product;
- that there is a system in place which will control the quality of all sub-contractors and
all sub-contracted purchased parts.
All of the above are detailed in the various GSQA System documents.
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2.6.2 Product Liability
All suppliers must take out and keep, such product liability insurance as may be necessary
in
view of the nature of the goods, their use, and the responsibility which is incumbent upon the
supplier.
2.6.3 Quality Targets
AB Electrolux is continuously running Quality Improvement and Cost Reduction programmes.
In the long term co-operation concept, the supplier is expected to conduct corresponding
programmes within quality, reliability, cost reduction and performance improvements.
Quality Targets such as reject levels in incoming inspection, line rejects, field failures and
delivery performance, shall be mutually agreed on a yearly basis for all major components.
Actual performances shall regularly be measured and compared to the targets.
The quality performance shall be used for the ongoing evaluation of the supplier, see EL3000
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3.0 Glossary
Audit / Assessment
The structured activity of examining a system or process and related results, to assure adequacy
to meet planned arrangements and whether these arrangements are implemented effectively and
suitably to achieve objectives. Both terms can be interchanged.
Batch quantity
The collective quantity of a part/material which has been produced using nominally the same
production setup of machine, material and operator.
Commodity
is used as an all-purpose general description for grouping and classification of specific materials
and components.
Common causes
are sources of variation that are always present and are part of the natural (random) variation
inherent in the process itself.
Continuous improvements
is meeting and exceeding customer needs and expectations on an ongoing basis, at a cost that
represents value to the customer. Reducing variability, cost and waste through incremental
improvements in existing processes, systems and products. Innovating new products and
processes that out perform the old ones.
Contract review
Systematic activity carried out before initiating the procurement of a product from a supplier or
subcontractor to assure that requirements for quality are adequately defined and can be realised
by that supplier.
Control Plan
A document setting out the specific quality practices, resources and sequence of activities, and
frequency thereof, relevant to a particular product, project or contract.
Cm
- Machine Process Potential - see Pp
Cmk - Machine Process Capability - see Ppk
Cp (Process Potential) (See also Pp )
is an index which compares the process spread with the width of the specification without
regard to the location of the data. The process spread is taken to be six times the standard
deviation. This can only be calculated after the process is in a state of statistical control.
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Cpk (Process Capability) (See also Ppk )
is an index which considers both process spread, and the proximity of the process spread
to
specification average and limits. This can only be calculated after the process is in a state of
statistical control. The process capability target is Cpk 1.67 (6 Sigma).
Critical characteristics
Those product requirements (dimensions, specifications) or process parameters, which can
affect the product function or reliability. Critical characteristics are identified with [ # ] on the
Common Component drawings and/or specifications.
Critical Process Characteristic
Those characteristics (dimensions or process parameters), which will give early indications
when a process is going out of control. There should only be 3 to 4 of these per part, as one
dimension or parameter can control many others. These are normally defined as a result of
FMEA analysis and Process Capability Studies, and should be defined in agreement with the
supplier.
Customer
Refers to all AB Electrolux divisions (PDs) throughout this EL29000 series of documents,
inclusive of AEG, Frigidaire, WCI, Zanussi, etc.
Declaration of Compliance
is where a supplier agrees to fulfil all the Pre-Production criteria as identified, and agrees to
fulfil the Quality Targets imposed at that particular time. The supplier signifies agreement by
signing the Declaration of Compliance document and supplies a Certificate of Conformity, as
requested.
Delivery Quantity
A delivery quantity of a part made during one supplier visit to one of our factories.
Design Input
any input, received from any source, by the Design Group, which the Design Group convert
into Drawings or Specifications.
Design Output
are typically the Drawings Product Specification, Test Specifications, Parts Lists etc. which
Design generate as a result of input received.
Design Verification
the process of examining the result of a given activity to determine conformity with the stated
requirement for that activity.
Design Validation
The process of examining a product to determine conformity with end users needs.
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EDI
an acronym for Electronic Data Interchange. EDI is a system that allows the exchange of
electronic data freely between computer systems.
FMEA (Failure Mode and Effect Analysis)
is an analytical technique which uses the potential failure modes and the causes to prioritise
improvement activities.
GRIP --- Globally Realised & Integrated Purchasing. The year 2000 Purchasing process.
GSQA --- Global Supplier Quality Assurance
IDCO - Material Identification Code (Commodity Code)
an alpha-numerical code used to group components and materials into commodities.
Initial Samples
are small, statistically significant quantities (30-300) of products taken from a specific
production run, made with production tooling, process data and cycle times. Initial samples are
checked by the supplier for conformance to all the product requirements on the drawings, and/or
specifications.
Inventory Turns
Number of times the manufacturing inventory is replaced (turned over) in a specific time
Total Inventory Value held for last 12 months
Inventory Value held for current month
Letter of Understanding
is a document stating the relationship between Customer and a supplier.
Lot
is a definitive quantity of a part or commodity which can be separated, and regarded as one unit.
This could be due to the packaging used for example.
Normally an Electrolux Lot consists of the quantity used during one production shift.
Lot Reject
a bulk quantity of material rejected due to a perceived percentage of defects, usually arrived at
through epidemic failure or acceptance sampling.
Management System / Quality System
Terms are interchangeable. See "Quality System".
Non-conforming material
are products or lots which do not meet the specifications.
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Non-Verified Quality Material
Material that has not yet received the required quality verification.
Pilot
an analysis of each critical new design or re-design of a component or system that occurs prior
to production use. Engineering pilots are performed to review the fit and function of the
components. Production pilots are preliminary production lots, manufactured by the customer to
assess manufacturability of the finished commodity.
PLUS Programme
a financial programme involving improved terms of payment.
PPM
an acronym for Parts Per Million. Which can be used anywhere that % is currently used. Where
% is consistently above 99%, then PPM is a better terminology to illustrate performance.
PPM Defective
a calculation as follows:(Total Defective Material) x 1 million
Total Material Usage during same period.
Pp - Preliminary Process Potential
is an index similar to Cp, but based on data from early, short term studies of new processes.
This was previously called Cm. - Machine Process Potential
Ppk (Preliminary Process Capability)
is an index similar to Cpk, but based on data from early, short-term studies of new processes.
Data from at least thirty sub-groups minimum, ideally 50 are required for preliminary
assessments. This can only be calculated after the process is in a state of statistical control.
A Preliminary Process is considered Capable if Ppk is 2.00 (6 Sigma)
This was previously called Cmk - Machine Process Capability.
Prevention
is a management system that improves quality, by using "Plan-Do-Check-Act" cycle to
eliminate failure modes and causes of process instability. Prevention is consistent with a
philosophy of continual improvement in quality and productivity.
Process
is a system of people, equipment, methods, materials and environment, that produces a product
or service. A process implies the receipt of some input, action, and output such as creation of
products, ideas, information or service.
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Process Change
is any change in the process which could alter its capability to meet the design requirements or
durability of the product. this includes new, different, relocated, or rehabilitated production
machinery/equipment. Process change also includes change in the sequence of operations.
Product
is any part, component, assembly, or material provided by a supplier to a customer unit.
Quality Assurance
is an overall quality approach, including market surveys, design, manufacturing, service and
field evaluations.
Quality System
the organisational structure, responsibilities, processes and resources needed to implement
quality management.
Receiving / Incoming Inspection
review of raw materials or components prior to assembly or manufacture.
Safety characteristics
are those product requirements (dimensions, specifications, test) or process parameters which
can affect the product safety, and which require specific monitoring action. Safety
characteristics are identified on customer drawings and specifications.
Segregation
separation of material in such a manner that it cannot be inadvertently applied to a use for
which it is not intended, or for which it has been identified as unacceptable.
Servicing
the activity related to supporting a component / product once it has been released to the
customer.
Special causes
Special causes are sources of variation that are intermittent and unpredictable (e.g. broken tools,
interruptions in power, changes in raw material).
SPC (Statistical Process Control)
is the use of statistical techniques to analyse a process or its output, in order to take appropriate
action to achieve and maintain a state of statistical control, and to improve the capability of the
process.
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Special Processes
are those process where quality cannot be monitored immediately during the process, without
compromising the quality of the product, and thus must be measured by alternative methods.
SQA (Supplier Quality Assurance)
is the activity for interface with suppliers on quality matters.
Stable processes
are those processes in which variations in output arise only from common causes.
A process that is in statistical control is stable and predictable.
Statistical control
is the condition describing a process from which all special causes of variation have been
eliminated, and only common causes remain. A synonym for statistical control is "stability"
Sub-Contractor
the organisation that provides a product, material or component, to the supplier.
Supplier
the organisation that provides a product, material, component or service to the customer.
Supplier Assessment
a method of evaluating the suitability of a new supplier, carried out before orders are placed.
Also used to audit currently used suppliers.
Technical Specifications
are documents containing necessary information for suppliers to produce and evaluate parts.
Such information is typically related to function, performance, life and reliability. Both test
methods and required results are included.
Traceability
the ability to trace material from its current stage of manufacture. Most useful as a tool to track
root cause of a condition, or to segregate material with a defect.
Type Approval
is a special approval for functional and safety components which must be tested for life and
reliability in every application. Type approval is a pre-requisite for ordering safety related parts.
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