Global Supplier Management Manual (MN–11.4-01)
Copyright © Futuris Automotive Interiors Holdings
Ltd All Rights Reserved
This document must not be reproduced, transmitted, adapted, distributed, sold, modified or
published in any way, or any of the material used except with the prior written consent of
Futuris Automotive Interiors Holdings (Australia) Pty Ltd.
For more information about this document please contact:
Futuris Automotive Interiors Holdings (Australia) Pty Ltd
80 Turner Street, Port Melbourne, Victoria, 3207 Australia
T +61 3 9644 4222
F +61 3 9645 3292
E supplier@futurisgroup.com
Table of Contents
1. Company profile ........................................................................................................................................................... 4
1.1 Introduction ........................................................................................................................................................... 4
1.2 The Futuris Purpose .............................................................................................................................................. 4
1.3 The Futuris Vision ................................................................................................................................................. 4
1.4 The Futuris Core Values ........................................................................................................................................ 4
2. Global supplier management manual .......................................................................................................................... 5
2.1 Goal ....................................................................................................................................................................... 5
2.2 Approach and Applicability ................................................................................................................................... 5
2.3 Supplier’s Acceptance ........................................................................................................................................... 5
3. Quality .......................................................................................................................................................................... 6
3.1 Quality Certification .............................................................................................................................................. 6
3.2 References ............................................................................................................................................................ 6
3.4 Production Part Approval Process (PPAP) ............................................................................................................ 7
3.4.1 General Requirements .................................................................................................................................... 7
3.4.2 Documentation Requirements ....................................................................................................................... 7
3.4.3
Futuris specific requirements ..................................................................................................................... 8
3.4.4 PPAP approval status ..................................................................................................................................... 9
3.4.5 Subsequent PPAP Submissions ...................................................................................................................... 9
3.4.6 Material reporting.......................................................................................................................................... 9
3.4.7 Control of Critical and Significant Characteristics ........................................................................................ 10
3.5 Manufacturing Feasibility ................................................................................................................................... 11
3.5.1 Purpose ........................................................................................................................................................ 11
3.5.2 Scope, Method and Requirements .............................................................................................................. 11
3.6 Deviation ............................................................................................................................................................. 11
3.7 Traceability ......................................................................................................................................................... 11
3.8 Control of sub-suppliers and out-sourcing the current manufacturing processes ............................................. 12
3.9 Control of Futuris supplied / funded equipment / tooling / fixtures.................................................................. 12
3.10 Notification and control of non-conforming products ....................................................................................... 12
3.11 Additional Product Verification Requirements ................................................................................................... 13
3.12 Record Retention Requirements ...................................................................................................................... 13
4. Delivery ....................................................................................................................................................................... 15
4.1 Capacity Verification ........................................................................................................................................... 15
4.1.1 Purpose ........................................................................................................................................................ 15
4.1.2 Scope ............................................................................................................................................................ 15
4.1.4 Method ........................................................................................................................................................ 15
4.2 Handling, Storage and Packaging........................................................................................................................ 16
4.3 Labelling Standards ............................................................................................................................................. 16
4.3.1 General Requirements ................................................................................................................................. 16
4.3.2 Break-point / Special labelling of shipments ............................................................................................... 16
5. Supplier assessment and monitoring ......................................................................................................................... 18
5.1 Supplier Audits .................................................................................................................................................... 18
5.2 Supplier Performance ......................................................................................................................................... 18
6. Commercial.................................................................................................................................................................. 18
6.1 Recovery of “Cost of Quality – COQ” .................................................................................................................. 18
6.2 Order authorisation ........................................................................................................................................... 19
7. Support ....................................................................................................................................................................... 20
7.1 Product development / Readiness Stage review: ............................................................................................... 20
7.2 Initial Point of contact......................................................................................................................................... 20
7.3 Ongoing Communication Requirements ............................................................................................................ 20
7.4 Monitoring and Improvement of Manufacturing Performance ......................................................................... 20
Appendix - Refer to website : http:\\www.futurisgroup.com
Global Supplier Management Manual: MN–11.4-01
1. Company profile
1.1 Introduction
The management of Futuris Automotive Interiors (Australia) Pty Ltd and its related entities (“Futuris”
or “the Customer”) recognises the “Global Supplier Management Process” as a vital link in our
continual improvement efforts to be competitive in any automotive market.
Futuris believes that working together with our suppliers will result in continual improvements in both
quality and productivity, resulting in Futuris procuring the right product, of the right quality at the
right price.
Futuris recognises the rich source of manufacturing experience, technical ability, and development
ingenuity that resides with our suppliers and as such welcomes constructive suggestions and actively
encourages their early participation in product and service design and development.
1.2
The Futuris Purpose
Delivering innovative solutions.
1.3
The Futuris Vision
Through flexibility, agility and partnership models, we will be a leading global innovator of quality
design and manufacturing solutions.
1.4
The Futuris Core Values






With integrity and teamwork we do what it takes to deliver the best results
Each of us demonstrates leadership in our roles
We strive for continuous business improvement
We are all responsible for providing a safe, clean and fair working environment
We promote the opportunity and environment for people to be the best they can be
We have practical plans for success
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Global Supplier Management Manual: MN–11.4-01
2. Global supplier management manual
2.1
Goal
This manual describes the fundamental requirements for all organisations who supply products to
Futuris sites (“Suppliers”). These requirements are intended to ensure all Suppliers are capable of
satisfying or exceeding the needs of internal and external customers of Futuris relative to:






2.2
Quality
Productivity
Cost
Service
Technology; and
Continual improvement
Approach and Applicability
The “Global Supplier Management Manual”, “Letter of Nomination”, “General Terms and Conditions”
and reference documents listed in section 3.2, define the fundamental quality system requirements
for all Suppliers supplying products to Futuris.
All Suppliers shall demonstrate an effective quality system that satisfies the requirements specified in
this manual. This manual constitutes the Customer Specific Requirements for Futuris as defined in
ISO/TS16949. Where Suppliers are providing sub components which are used in assemblies delivered to
a particular OEM, the Customer Specific Requirements of that OEM shall also be understood and met.
Examples of these are:
GM Customer Specifics – ISO/TS16949
Ford Motor Company Customer Specific Requirements – for use with ISO/TS16949
Toyota 6-S Manual
Tesla -Refer to Tesla portal: https://suppliers.teslamotors.com/
Any additional requirements shall be communicated to the supplier through appropriate approved
business documents as required.
Note:
(a) No verbal or unsigned agreements shall supersede the requirements stated in this manual.
(b) This manual may be updated f r o m t i m e t o t i m e without prior notice. For t h e
latest revision of the manual, please refer to “Global Supplier Management Manual” at
www.futurisgroup.com. We recommend suppliers to visit the website and verify the latest
revision of this manual as required.
2.3
Supplier’s Acceptance
The Supplier can accept that they are bound by the terms of this manual by forwarding a signed copy
of t h e “Letter of Nomination (LON) Form”, or by delivering products to Futuris.
If desired, the Supplier may list all the exclusions/mark up details in the form. The relevant Futuris
Legal/Compliance officer, Purchasing and/or Supplier Development Manager shall review and sanction
the exclusion to that Supplier. A copy of the approved LON form shall be returned to Supplier.
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Global Supplier Management Manual: MN–11.4-01
3. Quality
3.1
Quality Certification
Futuris will restrict the sourcing and purchasing of all direct products to those Suppliers that meet or
exceed the following requirements.


ISO / TS 16949 : 2009 [Development plan to be communicated]
AS/ NZS ISO 9001 : 2008
If required, a Supplier shall raise a Supplier Deviation Request [available from www.futurisgroup.com]
to obtain a waiver for the above quality system requirements for specific parts, materials, projects or
sites.
Additional certification may be requested based on customer, application of the product, legal or
regulatory or specific national requirements.
The Supplier shall be responsible to comply with quality and environmental certifications and labour
law requirements for respective countries in which their manufacturing facilities are based.
In the event of a Suppliers’ quality system certification status change (this may include renewal,
suspension, probation, expiration and termination), the Supplier shall notify the change to the
relevant Supply Quality Development Engineer – SQD within five (5) working days.
3.2
References
The following documents are integral to Futuris requirements and Suppliers shall comply with these
requirements.
Automotive Industry Action Group [AIAG] core tools’ reference manuals:
(a)
(b)
(c)
(d)
(e)
Advance Product Quality Planning [APQP]
Failure Mode and Effect Analysis [FMEA]
Production Part Approval Process [PPAP]
Statistical Process Control [SPC]
Measurement System Analysis [MSA]
Relevant Customers’ specific requirements but not limited to:
(a)
(b)
(c)
(d)
GM Customer specific requirements manual [www.gmsupplypower.com]
FORD Customer specific requirements [www.portal.covisint.com]
Chery Automobile Company Limited
Tesla Customer specific requirements - [https://suppliers.teslamotors.com]
Note:
The Supplier is responsible to refer to the latest editions of above documents from the AIAG.
3.3
Quality Planning
This is an essential part to foster continuous improvement, defect prevention and process
optimisation. It is required during all phases of product and process development starting from
development of product to its production launch.
The Supplier shall adhere to APQP guidelines and capture all elements of APQP process to ensure
effective product quality planning. Refer to Supplier APQP Tracking Sheet
The Supplier shall maintain a timing chart that adequately reflects the timing of the APQP
Project elements and provide a copy to Futuris Product Engineer or SQD on request.
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Suppliers shall ensure that there are adequate resources and skilled people in place to perform
project management activities especially those inherent in the APQP process (including but not
restricted to DFMEA, PFMEA, SPC, PCP, DVP&R, Project Management, PPAP and MSA).
3.4
Production Part Approval Process (PPAP)
3.4.1 General Requirements
The Supplier shall:
(a)
(b)
(c)
(d)
(e)
(f)
Submit “Prototype & Pre-production level” PPAP submission for parts which could be used
for engineering or process validation samples by Futuris as part of the Customer’s specific
requirements. Minimum documents requirements for each submission are specified on the
“Supplier APQP Tracking Sheet”.
Submit and notify the PPAP submission in line with Futuris specific requirements [as
detailed in section 3.4.3] in addition to the standard requirements listed within the PPAP
manual released by AIAG.
Submit PPAP to “Level–3” for all changes (refer to AIAG - PPAP reference manual,
section 2.0), unless otherwise approved by Product Engineer in writing with the signed
Supplier APQP Tracking Sheet, which describes intended documents to be submitted.
Submit results and samples obtained from unique production process, duplicate assembly
line or work cell, each position of multiple cavity die, mould, tool or pattern.
Maintain all applicable PPAP quality records for each part and irrespective of submission
level. These shall be readily available on request.
Not ship production intended parts or materials prior to PPAP approval or approved
“Supplier Deviation Request” from the Product Engineer.
3.4.2 Documentation Requirements
The Supplier shall:
(a)
(b)
(c)
(d)
Ensure all submitted documents were reviewed and related tests were performed within
six (6) months prior to submittal.
Identify each document as a minimum with part no. revision level, cavity no., machine
no., tool no. and assembly line no. as required.
Unless otherwise agreed by SQD Engineer, retain all submission documents together with
completed APQP tracking sheet at the front.
An electronic copy of the complete PPAP along with all attachments shall be submitted to
Futuris – SQD Engineer via. PPAP E-mail addresses provided below or as advised by SQD
Engineer, for example:

FuturisPPAPHolden@futurisautomotive.com

FuturisPPAPFord@Futurisautomotive.com

FuturisPPAPToyota@Futurisautomotive.com

FuturisPPAPWuxi@futurisgroup.com

FuturisPPAPRayong@futurisgroup.com

FuturisPPAPNewark@futurisgroup.com

FuturisPPAPCampbellfield@futurisgroup.com

FuturisPPAPEdinburghpark@futurisgroup.com

FuturisPPAPPortmelbourne@futurisgroup.com
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3.4.3
Futuris specific requirements
Retention / Submission requirements table
PPAP Submission level
Futuris Specific/ Additional PPAP requirements
1
2
3
4
5
APQP timing plan listing all elements of project with R
R
S
R
S
target completion dates
Manufacturing feasibility sign – off [SR-2-037 :
S
S
S
S
S
Available from www.futurisgroup.com
Capacity Verification Status Report [SR-2-082 : S
S
S
S
S
Available www.futurisgroup.com
Pack and ship data form with sample label [SR-3-085 : R
R
S
R
S
Available www.futurisgroup.com
Approved Part Submission Warrant – PSW for Sub- R
R
S
R
S
supplied parts
Ballooned print
R
S
S
S
S
Rework procedures
R
S
S
S
S
PPAP recovery sheet [Where applicable]
R
R
S
S
S
Pre-launch control plan [Refer Section 3.12]
R
R
S
R
S
Control characteristics matrix / List [SR-2-013 : R
R
S
S
S
Available from www.futurisgroup.com
Tooling Progress Report
R
R
S
R
S
“6” PPAP samples per unique production process to R
S
S
S
S
be submitted a l o n g w i t h P P A submission. (This
includes but not limited for each cavity of tool,
mould etc.)
NOTE : Unless otherwise communicated by Product
Engineer in writing.
R : The Supplier shall retain at appropriate location and readily available on customer’s request.
S : The Supplier shall submit to designated customer along with PSW and retain a copy of records and
documents at appropriate locations.
The Supplier shall:
(a)
(b)
(c)
Note:
Include “ballooned print” which assigns sequential numbers to all dimensions, notes and
other requirements. The sequential numbers to be consistent with submitted documented
test plan, where engineering specifications require “product validation testing”. This should
be in line with DVP and R guidelines. It can be obtained on request from the Product
Engineer.
Include all rework, reclaim or salvage procedures with PPAP submission, which are required
to produce intended quality parts. These processes need to be uniquely identified in
process flow and supporting documents to be prepared (PFMEA, PCP and necessary SOPs
and visual aids).
Raise Supplier Deviation Request [Available at www.futurisgroup.com] for any addition or
deletion rework procedures, once the PPAP is approved.
No changes shall occur to supplier’s production process, parts or purchased parts without written
approval from the Product Engineer.
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3.4.4
PPAP approval status
One of the following statuses shall be assigned to the Part Submission Warrant by the SQD Engineer
and communicated to the Supplier via the Supplier APQP Tracking Sheet, which would highlight the
improvements required in PPAP submission.
Approval Status
Potential reason
Actions need to be taken by supplier
Approved
Parts are fully approved and
conform to all Futuris
requirements
Parts are functional. However,
PPAP submission does not
comply with all Futuris
requirements.
Issue breakpoint with next delivery with PPAP
no and drawing revision.
Limited
Rejected
parts submitted do not conform
to Futuris requirements
Pending
Parts are yet to be submitted
for evaluation to Futuris by the
supplier.
3.4.5
(a) Issue breakpoint with next delivery with
PPAP no & drawing revision.
(b) Submit PPAP recovery Action plan
within 3 working days.
(c) Re-submit PPAP before Limited Approval
expires to Futuris.
Ê
(a) Submit PPAP recovery Action plan within 3
working days.
(b) Re-submit PPAP as specified in PPAP
recovery sheet.
Subsequent PPAP Submissions
On an annual basis the Supplier will be required to re-validate PPAP and retain documentation as
evidence. These documents to be available for Supplier audits or as required.
(a)
(b)
(c)
(d)
(e)
(f)
Part submission warrant approved by Supplier’s Quality Manager.
Full dimensional report [all dimensions unless authorised otherwise].
Confirmation of conformity of bulk material to the design specification in writing.
Table of significant characteristics
Nominated Supplier responsible test results
Updated documentation of DFMEA, PFMEA, PCP including all changes associated
with internal or external quality concerns [i.e. 8Ds]
(g) VA/VE opportunities and status of implementation
3.4.6
Material reporting
Declaration of the type and weight of all material composition of components and assemblies in
International Material Data System (IMDS) prior to PSW approval is a mandatory Futuris requirement.
IMDS is maintained by EDS Operations Service GmbH, Germany. This information is required to support
compliance to the End of Life Vehicle (ELV) Directive, now endorsed by the automotive OEMs
worldwide.
Material Data Sheet (MDS) should be forwarded to Futuris Product Engineer via. the IMDS for approval
at the first opportunity when the material content/s and weight composition is established. Futuris’ ID
# is dependent on location and a search should be conducted within IMDS to find the correct Futuris
manufacturing location.
As part of the APQP process suppliers must submit MDS in IMDS submission and obtain Futuris approval.
PSW ‘Material reporting’ section to be completed entering IMDS Material ID no. for the subject part.
To register for IMDS and review details of training available please visit www.mdsystem.com
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3.4.7
Control of Critical and Significant Characteristics
Depending on customer and the age of the design there are a variety of symbols used on drawings to
identify any special characteristics of the feature of the part. The Supplier shall perform following
actions based on the respective symbols/characteristics and project stage.
Symbols
Interpretation
CC
This is termed
as “CRITICAL”
Characteristic,
which would
affect corporate
and/or legal
compliance of
assembly to
regulatory
safety
standards, ADR,
ECE and FMVSS.
YC
AR
C
Prototype / Pre–launch phase
(a) Special launch control
plan
(b) Order quantities ≤ 50
pieces then 100% parts
are inspected
(c) Order quantities > 50
pieces then Variable
data PpK ≥2.0
(d) Attribute data, 100%
inspected.
(e) Measurement/capabili
ty reports supplied to
Futuris.
(f) Heat treatment test
results are supplied
with test samples to
Futuris for each
batch.
(g) Pre shipment check
sheet with all
supporting documents to
PQE.
Copy of approved preshipment check sheet [SR-3089: Available at
www.futurisgroup.com] with
delivery docket prior to
delivery of shipment to
Futuris or Futuris designated
location.
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Start of Production or Ongoing Production
(a) Process capability for short
run/Initial PPAP submission shall
be PpK > 2.0
(b) Process
capability
for
Normal/Standard Production shall
be CpK > 1.67. OR
(c) Ensure adequate process and
controls are in place to assign
Occurrence rating ≤ 2 as per
PFMEA guidelines. [As per AIAG
guidelines] and
(d) Ensure adequate poka yoke and/or
automatic detection is in place to
reflect the assigned detection
rating ≤ 2 as per PFMEA guidelines.
(e) Variable data SPC charts with
control limits on hourly basis.
(f) Supply Monthly capability study
reports to Futuris.
(g) Pre shipment check sheet
with all supporting documents
to PQE.
(h) Copy of approved pre
shipment check sheet [SR-3089: Available at
www.futurisgroup.com with
delivery docket prior to
delivery of shipment to
Futuris or Futuris designated
location.
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Global Supplier Management Manual: MN–11.4-01
This is termed
as
“SIGNIFICANT”
Characteristic,
which would
affect fit
and/or function
of product.
SC
YS A
S
No Symbol
3.5
SAME AS ABOVE EXCEPT
SAME AS ABOVE EXCEPT
Order quantities > 50
pieces Variable data ≥ 1.67
PpK
Non-designated
characteristics
Features may impact on Fit
or function of product.
(a) Process capability for
Short
run/Initial PPAP submission shall
be PpK > 1.67
(b) Process capability for
Normal/Standard Production shall
be CpK > 1.33. OR
(c) Ensure adequate process and
controls are in place to reflect the
assigned Occurrence rating ≤ 3 as
per PFMEA guidelines; and
(d) Ensure adequate poka yoke and/or
automatic detection is in place to
reflect the assigned detection
rating ≤ 3 as per PFMEA guidelines.
(e) Variable data SPC charts with
control limits as specified in
control plan.
Supplier is responsible to ensure that
drawing requirements are met.
Manufacturing Feasibility
3.5.1
Purpose
To provide commitment to Futuris by the Supplier that the proposed part’s design, tooling design and
status and recommended process shall produce parts in line with Futuris quality requirements and at a
consistent rate.
3.5.2
Scope, Method and Requirements
The Supplier shall conduct a feasibility analysis, and update and forward a Manufacturing Feasibility
Assessment Form [SR-2-037: available from www.futurisgroup.com] for submission of initial design
level for each part.
No issue identified in the “status” column means that the Supplier has reviewed all aspects of
manufacturing capability and the Supplier can meet ALL requirements for the program/part.
Customer design ownership does not preclude the Supplier’s obligation to assess the design’s
feasibility and recommend design or process changes.
Note:
3.6
Failure by supplier to identify or document the manufacturing feasibility
concerns/recommendations during the project stage or supplier selection may lead to
legal or economic obligation, once the program is awarded.
Deviation
The Supplier shall raise a Supplier Deviation Request [available from www.futurisgroup.com] with
supporting documents to Product Engineer or SQD Engineer” when supplied parts or materials do not
meet the approved PPAP status or deviate from the approved PPAP.
The Supplier shall break-point the shipment of deviated parts or materials with identification of the
deviation no. on the “Break point Label”.
3.7
Traceability
In general terms, traceability implies product marking and recording inspection of sufficient detail to
permit the recovery of the history of any specific batch of product or part as required.
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The Supplier shall identify each part with production date and all production parts must be
traceable to the shift, cavity, work cell and production line unless otherwise approved by Product
Engineer or SQD Engineer in writing.
3.8
Control of sub-suppliers and out-sourcing the current manufacturing processes
The Supplier shall not move the manufacture of Futuris parts from their premises to that of a
subcontractor without the prior written approval of Futuris – SQD Engineer. A Supplier will require
PPAP approval, prior to the start of production from the subcontractor.
The Supplier shall not move their supply of subcontract components from the PPAP supplier without
the prior written approval of Futuris - SQD Engineer. This is applicable to all parts including black box
items where Suppliers are responsible for their design.
Where a Supplier must use a component or material from a sub-Supplier designated by Futuris, then
the Supplier shall be responsible for the management of every aspect of that sourcing and supply
apart from the actual selection of the Supplier. This includes but is not limited to part quality, price,
delivery, warranty, traceability, record keeping, continuous improvement etc.
3.9
Control of Futuris supplied / funded equipment / tooling / fixtures
The Supplier has total responsibility for assessing, maintaining and adequate storage of all
equipment/tooling/fixtures supplied/funded by Futuris and/or its customers. This includes but is not
limited to, Tooling, Jigs and Fixtures, Packaging and Inspection Gauges.
If the equipment is supplied by Futuris, then the Supplier is responsible for assessing the condition of
the equipment and confirming the equipment is capable of producing in line with Futuris
requirements.
The Supplier shall have a system to monitor and control the equipment against deterioration and
provide feedback to Futuris in the event of loss or damage.
All such equipment shall be identified with a minimum of:
(a) Equipment ID
(b) Owner of the equipment
(c) Description of part produced
This information shall be provided by Purchasing. Tooling and Equipment owned by OEMs must comply
with the OEMs tool marking requirements (eg. GM Holden VTAM).
Any modifications/disposal to the equipment must be formally agreed by Futuris Purchasing prior to
commencing the change. If the modifications have any effect on the parts produced the modification
can only be commenced on receipt of an approved ERN number from Futuris Purchasing. Any resulting
loss to Futuris will be payable by the Supplier.
3.10 Notification and control of non-conforming products
The Supplier shall,
(a)
(b)
(c)
(d)
Notify SQD Engineer / SQA Officer or Plant Quality Engineer as soon as it is discovered or
suspected that the shipment of non-conforming material has been despatched to a Futuris
site.
Determine and implement appropriate actions to cull the suspect material at Futuris sites
for non-conformances notified by supplier or requested by customer.
Provide necessary and adequate resources to cull and/or rework the non-conforming parts
at the respective Futuris manufacturing site.
Identify the next (conforming) shipment clearly with Break point label as described in
Section 4.3.2.
Futuris uses a web based 8D tracking system in Quickbase for some sites, where the relevant plant will
raise an 8D against the supplier for Quality Issues. In this case the supplier representative will receive
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an email notification and the supplier should respond to the 8D directly in Quickbase.
SUPPLIER SHALL UPDATE and SUBMIT “8D REPORT” UP TO
“3D” STATUS
“5D” STATUS
“6D” STATUS”
“8D” STATUS
(i.e.
WITH
EFFECTIVENESS OF
CONTAINMENT
ACTION.)
(i.e. WITH ROOT
CAUSE
IDENTIFICATION
and
CORRECTIVE
ACTIONS’ PLAN)
Within 24 hours
Within 3 working
days
(i.e.
WITH
IMPLEMENTATION
STATUS
OF
CORRECTIVE
and
PREVENTIVE
ACTIONS)
Within 14 working
days
(i.e.
VERIFY
THE
EFFECTIVENESS
OF
CORRECTIVE
and
PREVENTIVE
ACTIONS
and
CONGRATULATE
TEAM.)
Within 30 working days
Note:
(a) All of the above actions are to be agreed and organised in concurrence with the Futuris
SQA Officer/SQD Engineer / Plant Quality.
(b) Where t h e “8D submission guideline” cannot be achieved because of the complexity of
the corrective actions (eg design changes), the Supplier needs to seek agreement in
writing from the respective Futuris SQA Officer/SQD Engineer / Plant Quality. In this
scenario, it may not affect the Supplier’s performance rating.
3.11 Additional Product Verification Requirements
The Supplier shall:
(a)
(b)
(c)
3.12
Implement the "Additional Product Verification" as per the following matrix unless
otherwise authorised by Futuris Product Engineer / SQD Engineer in writing. [Matrix:
indicates the events when a Supplier shall be placed on "Additional Product Verification
and criteria to be satisfied by the Supplier as a part of "Additional Product Verification"].
(a) Organize and supervise all necessary resources to undertake “Additional Product
Verification”.
Be responsible for all expenses incurred for "Additional Product Verification".
Remain on "Additional Product Verification" until all corrective actions are completed and
exit criteria are satisfied. Formal communication shall be forwarded by Futuris – Product
Engineer / SQD Engineer to exit from the "Additional Product Verification".
Record Retention Requirements
The required retention period of records depends on the type of record that is being collected. As a
minimum requirement retention periods are as follows:
(a)
(b)
(c)
(d)
(e)
(f)
(g)
(h)
Machine records shall be kept for the life of the machine.
Equipment/Instrument records shall be kept for the life of the equipment/instrument.
Documents for internal use which do not impact of Product quality shall be kept for 1
year.
Documents for internal use which impact Product Quality shall be kept for minimum of 7
years.
Financial records are to be kept for a minimum of 7 years.
Records of Management meetings shall be kept for a minimum of 3 years.
Records of Plant Operation meetings shall be kept for a minimum of 1 Year.
Other records which are not defined above, to be control as per the individual
organisation’s procedure.
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Criteria's to be satisfied by supplier during
"Additional Product Verification"
a
b
c
d
e
f
g
h
i
j
k
l
m
n
o
Notification to "Top management" of supplier
by Futuris SQD Engineer.
Futuris – SQD Engineer
Implemented
"ON SITE".by Supplier
Implemented "ON-SITE" by recommended
Third party contractor
Implemented "OFF-SITE" by recommended
Third party contractor
"Process layout" approved by Futuris
and implemented by Supplier
All Limit samples are authorised by Futuris
and displayed at the process
Control Plan approved by Futuris and
displayed (It includes what, how, who, when
and frequency of check)
Process Instructions are approved and
displayed (It includes clear description with
clear photos)
All inspectors are identified and trained.
Training matrix to be updated and displayed
Check sheet updated and maintained.
(It includes all check points, recent 8Ds, and
lessons learnt from previous projects)
Each part to be uniquely identified
for “Additional Product Verification”
Daily feedback on status with minimum
(First Time OK rate, Trend on defect, CAR
status for any repetitive concerns) to Futuris
SQD / SQA
Escalation process is defined and
Corrective Action Report raised for
each repetitive occurrences
Notified to "Third party registration agency"
"Parts for New New or current Significant
Project"
with level parts with and/or
repetitive
existing supplier
new supplier
quality concerns
YES
YES
YES
As notified
Futuris - SQD
YES
YES
As notified by As notified by
Futuris - SQD
Futuris - SQD
As
notified
As notified by
by Futuris Futuris - SQD
SQD
As notified
Futuris - SQD
by
by
YES
YES
YES
YES
YES
YES
YES
YES
YES
YES
YES
YES
YES
YES
YES
YES
YES
YES
YES
YES
YES
YES
YES
YES
YES
YES
YES
YES
Not Applicable
Not Applicable
As
notified
by Futuris SQD
Exit criteria :
1. Start of Regular Production + 20 working
YES
days of no quality concern observed at
receiving manufacturing site.
2. For Variable data- to demonstrate "Cpk
of 1.67" for the duration of "20 working YES
days" at receiving manufacturing site.
3. For Attribute data - to provide
evidence of "100% OK parts" for the duration YES
of
20
working
days
at
receiving
manufacturing site.
YES
Not
Applicable
YES
YES
YES
YES
p
Notified to "Third party registration agency"
Not Applicable
Not Applicable
As
notified
by Futuris SQD
q
Audited by "Futuris – SQD / SQA” to witness
the evidence which satisfies the exit criteria.
YES
YES
YES
r
Audited by "Third party registration agency" Not Applicable
to witness the evidence which satisfies the
exit criteria.
Not Applicable
As
notified
by Futuris SQD
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4. Delivery
4.1
Capacity Verification
4.1.1
Purpose
To provide confidence to Futuris that the Supplier’s manufacturing process shall produce the product
which will meet or exceed Futuris quality requirements and quoted capacity consistently.
4.1.2
Scope
To consider the overall capacity of Suppliers, including, worst case scenarios which may have been
experienced, lessons learnt or potential concerns during production.
4.1.3
General Requirements
The Supplier shall perform “Capacity Verification” by conducting “Run at Rate Study” at any time
during the program as requested by Futuris. This may include, but is not limited to, the following:
(a) New projects with current supplier or new supplier [Supplier to perform
capacity verification at “Low Volume and High Volume production”]
(b) Repetitive delivery concerns from the Supplier.
(c) Current projects with potential increase in volume or change in product mix.
(d) Evaluation of new equipment or work cell.
(e) Relocation or rearrangement of equipment, work cell or manufacturing line.
(f) Change in Overall Capacity utilisation at the Supplier’s end.
(g) Change in supply chain.
4.1.4
Method
Capacity Verification shall be performed by the Supplier at the actual manufacturing site; with
tooling, gauging, processes, instructions, material and operators which will be utilised for regular
production during a significant production run.
The Supplier shall ensure that all production processes; duplicate work cells or lines; each cavity of
die, mould, tool or pattern to be utilised as a part of Capacity Verification.
The verification production run quantity and product mix shall be approved by the Futuris – SQD
Engineer. However, the following default levels shall be followed.
EVENTS / STAGES
New part, supplier or project;
repetitive delivery concerns
Current project, minor relocation,
delivery concerns or annual capacity
verification
DEFAULT SIGNIFICANT PRODUCTION RUN QUANTITY AT
OPTIMUM PRODUCT RATE
One day of the Futuris peak daily production requirement to be
defined by PE Including 120% of normal production capacity for all
other parts sharing the same process
One hour of production on each shift
OR
300 parts on each shift, whichever is higher
The Supplier shall use parts from significant production run, to assess process capability for SC / CC
characteristics and other quality requirements specified on drawing In line with AIAG Statistical
Process Control Reference manual.
The default type of “Run @ Rate study” is “Supplier Monitored”. However, the Supplier shall confirm
in writing with Futuris - SQD Engineer prior to performing the Run @ Rate.
Tooling or Machine capacity utilisation for any process step that shows more than 80 % utilisation to
be reviewed and a detailed action plan is to be submitted to Futuris SQD Engineer. This shall ensure
that any process is capable of meeting a potential increase in demand in a timely manner.
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The Supplier shall perform Run @ Rate in line with Run @ Rate study report [available from
www.futurisgroup.com]. However, the Futuris specific requirements are to be followed as stated
above.
The Supplier shall raise internal 8Ds for major non-conformances, observed during Run @ Rate and
ensure effective closure of 8Ds.
The Futuris – SQD Engineer or delegate shall review the status of Run @ Rate with supporting
documents and assign the status of “Pass”, “Fail” or “Limited”. He/She may choose to participate
during another Run @ Rate study with the Supplier.
4.2
Handling, Storage and Packaging
The Supplier shall:
(i)
(j)
(k)
(l)
Submit packaging details for approval with the Production Part Packaging and Shipping
Data Form
[available from www.futurisgroup.com]
Ensure that parts are handled, identified and stored adequately to prevent any damage or
loss of traceability during all stages of manufacturing process.
Package each part in separate container or on pallet, unless otherwise approved in
writing by Futuris Product Engineer.
Ensure that all returnable packaging is free from old identification labels, grease, debris,
and foreign material or damaged. Failure to comply would lead to a rejection of the
material.
Note:
(a)
(b)
4.3
Supplier shall not change packaging material, size or type during any stages of
product realization, without prior approval from Futuris – Product Engineer in writing.
Futuris shall review use of returnable packaging on a case by case basis.
Labelling Standards
4.3.1
General Requirements
The Supplier shall ensure that all shipments are labelled as per AIAG standards and Futuris specific
requirements stated below reference to MN004 Logistics and Packaging Manual.
The Supplies shall communicate the formation of “bar code label” to Futuris – Product Engineer and
seek for written approval prior to its implementation.
Each box, pallet or container must (at the very least) be labelled with the following information in
one “Shipping label”:
(a)
(b)
(c)
(d)
(e)
(f)
Futuris Part no. and description
Quantity
Unique supplier’s batch code
Date code
No. of boxes in a batch
Engineering change level (Indicated as the last alpha Character in the part
number field) [PART NO: available from www.futurisgroup.com].
(g) Supplier Code, Name and Address
4.3.2
Break-point / Special labelling of shipments
The Supplier shall issue the break-point label [available from www.futurisgroup.com] on each
box, pallet or container as follows:
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EVENTS / REASONS
(a) Change in
engineering
Change level.
(b) Confirmation
of a quality
discrepancy.
(c) Approved deviation
(d) Change in PPAP
approval status
BREAK
DURATION
POINT MINIMUM INFORMATION ON
BREAK POINT LABELS
Unless otherwise
stated,
consecutively for
next 3 deliveries to
Futuris
(a) Status of Controlled For all deliveries until
Shipping
the project/
(b) Status of Various controlled shipping
status changed.
stages of project.
[Proto type, pilot
or Pre-production]
(a)
(b)
(c)
(d)
Part description
Part No,
Reason for breakpoint,
Respective Supplier
Quality contact,
(e) Break-point date,
(f) Engineering change
level,
(g) PPAP or
Deviation/approval
number
Project stage description
or controlled shipping
number and effective
date, where applicable.
ADVANCE
BREAKPOINT
NOTIFICATION
To Futuris –
Supplier Quality
Assurance, at
least ONE working
day prior to
shipment of parts
with sample break
point label and
planned shipping
date by email.
Futuris Australia utilizes standard email addresses for Breakpoint Notifications.
These are obtained for each site, example FuturisPPAPEdinburghPark@futurisgroup.com for Futuris’ Edinburgh
Park site.
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5. Supplier assessment and monitoring
5.1
Supplier Audits
Futuris may perform a formal assessment, quality system or process audit as required with prior
notice. The type, frequency and scope of audit will depend on the following aspects:
(a)
(b)
(c)
(d)
(e)
(f)
Selection of new supplier
Supplier’s past performance
Significance of project
Severity of quality or delivery concern
In case of recent mergers, acquisitions, affiliations etc.
Supplier Impact Rating H,M,L refer to section 7.4
Supplier may be required to complete self- assessment of their quality system or manufacturing
processes during various stages of supplier selection and product development.
Futuris shall verify the correctness and effectiveness of above audit forms as required.
5.2
Supplier Performance
Supplier’s performance will be monitored on a regular basis and the following aspects may be
communicated by Futuris to the supplier on a monthly basis:
a) Part quality performance
b) Delivery performance
c) Responsiveness to concerns, Corrective Actions, 8D’s
d) PPAP performance; and
e) Quality system certification.
Note: An example of Monthly performance report [available from www.futurisgroup.com]
In general, if a supplier achieves “C” rating and shows no improvement they will be placed on New
Business Hold.
A revised Supplier Scorecard System is currently being developed in Quickbase to allow the supplier to
access their Performance rating and details of issues on line. This will be progressively rolled out
across the Futuris sites starting with the Futuris Australia plants
6. Commercial
6.1
Recovery of “Cost of Quality – COQ”
Any and all “Cost Of Quality – COQ” incurred by Futuris, that is associated with the failure of supplier to
meet Futuris quality/delivery requirements shall be recovered from the respective Supplier.
Following are examples associated with “Cost of Quality” at various stages but not limited to:
AT RECEIVING
AT OUR MANUFACTURING SITE
Sorting
Down time or overtime
Line disruption
Line speed reduction
Premium Freight
Additional manpower (supervision
etc)
Line changes due to material
availability
Inspection/Rework labour and
tooling
Excess inventory
Incorrect identification
of parts
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CUSTOMER’S MANUFACTURING
SITE
Rework at customer premises,
travel, labour
Replacement of material at
customer
Premium freight
Cost of warranty and product
recall
Cost of internal containment
actions and confirmations
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Shipping
documentation errors
Late delivery
Premium product cost
paid to support
production
Rejection costs of part, sub-assy or
assembly
Equipment breakage
Premium product cost paid to
support production
Premium product cost paid to
support production
Penalty cost for late response
In addition to above events the cost of administration may be recovered from the Supplier.
The Supplier shall be responsible to provide trained personnel, adequate instructions and supervision
to manage the containment actions at the respective Futuris plant and/or in the supply chain.
Where a Supplier is unable to provide their own or arrange labour within a reasonable timeframe at
the required Futuris site, the Supplier shall appoint a suitable “Third Party Contractor”. Details of
preferred “Third Party Contractors” can be obtained from the Futuris SQA Officer / Plant Quality.
The inclusion of any company on this list does not mean that they are endorsed by Futuris,
whether generally or in the area of work nominated. Futuris accepts no responsibility whatsoever
for any representations, expressed or implied, made by these third party contractors or for the
quality of their supply
Note:
(a) The Futuris – SQA Officer shall forward Goods Return Notice.
(b) “Cost Of Quality – COQ” shall be recovered from any invoices which have not yet
been paid after 3 working days of notification.
(c) The Supplier shall ensure that any concerns related to COQ are to be resolved within 3
working days of notification by Futuris - Plant Quality / SQA Officer.
(d) The Supplier is unable to outsource responsibility or liability in relation to the supply.
6.2
Order authorisation
Suppliers are authorised to produce finished goods covering up to 2 weeks of the scheduled
requirement in advance of the despatch date and order a further 2 months of raw material unless
otherwise authorised in writing by Futuris – Purchasing. THIS IS DESCRIBED IN THE LETTER OF
NOMINATION AND VARIES FROM SUPPLIER TO SUPPLIER. THE SUPPLIER IMPOSES THE LEAD TIME
USUALLY. ORDERS MUST SUPPLY THE LON.
Note: Wherever a Supplier believes that the order authorisation is inadequate for continuity of
supply then it is the Supplier’s responsibility to agree an alternative arrangement with Futuris
purchasing in advance.
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7. Support
7.1
Product development / Readiness Stage review:
Suppliers shall provide necessary documents and resources to support effective management of
product development stages with Futuris representatives in line with the Futuris stage gate process.
High impact Suppliers shall be expected to be part of the project launch team and present the status
to the review panel at Futuris as required.
Note: The Supplier is to contact Purchasing for a copy of the presentation template and
guidelines.
7.2
7.3
Initial Point of contact
Subject
Contact Person
Commercial
Production Part Approval Process
Production part quality issues
Deviation pre-production
Deviation production
Delivery Issues
Purchasing
SQD Engineer
SQA Officer/Plant Quality
SQD Engineer
SQA Officer/Plant Quality
Delivery site – Material
representative
Planning
&
Logistics
Ongoing Communication Requirements
Suppliers shall ensure prompt communication/notification to Futuris in the following situations:
Note:
(a) When there are mergers, acquisitions or affiliations associated with the Supplier’s
organisation.
(b) Threat to supply and part quality.
(c)
(d)
(e)
(f)
(g)
(h)
Upcoming Industrial Relations initiatives (e.g. Enterprise Bargaining Agreement)
Threatened industrial action
Stocks are lower than agreed finished stock levels.
Major management changes.
Change in quality system certification’s
status.
Possible quality spills by Supplier,
Note:
(a) The Supplier shall provide a plan and/or raise an 8D internally to handle above
situations, if specifically requested by Futuris -SQD Engineer.
(b) The Supplier shall copy communication in relation to any of the above situations to
the respective Purchasing / SQD Engineer.
7.4
Monitoring and Improvement of Manufacturing Performance
Suppliers shall:
(a) Continually monitor and improve their manufacturing process performance utilising the
latest lean manufacturing tools like ANDON, Direct Run, KANBAN, Work place organisation,
Total Productive Maintenance and Planned Maintenance, standardisation, Poke yoke or Error
proofing etc.
(b) As a minimum Monitor and display the Key Performance Indicators listed in [SR-3-087:
available from www.futurisgroup.com] for Futuris related products. It may be reviewed
routinely by Futuris supplier quality contacts, preferably in the same format. This
requirement is mandatory for all “HIGH” impact suppliers.
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Note: The Following matrix illustrates how Supplier’s impact is evaluated. Contact PE or SCE
for confirmation.
Impact rating scheme
If Overseas and >10 Part Numbers
If direct Safety Parts
If > 25 part Numbers
If Value is Greater than 5% of Total Spend
If indirect Safety parts
If Value is 1- 5% of Total Spend
If More Than 10 part Numbers
All Others
High impact
High Impact
High impact
High impact
Medium Impact
Medium impact
Medium Impact
Low Impact
Direct safety = Airbags, OCS, STPS, Seat Belts, Latches, recliners, tracks
Indirect safety = Frames or frame part or welded parts, Foam, suspension mats, motors, fasteners.
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8. Abbreviations
8D
8 Disciplines – One of the Problem solving methods
AIAG
Automotive Industry Action Group
APQP
Advance Product Quality Planning
AUD
Australian Dollar
CC
Critical Characteristic
CoQ
Cost Of Quality
CpK
Process Capability Index
DFMEA
Design Failure Mode & Effect Analysis
DVP and R
Design Validation Plan & Report
FMEA
Failure Modes & Effect Analysis
GSMM
Global Supplier Management Manual
MSA
Measurement System Analysis
PCP
Process Control Plan
PFMEA
Process Failure Mode & Effect Analysis
PPAP
Product Part Approval Process
PpK
Process Performance Index
PE
Product Engineer
PSW
Part Submission Warrant
R@R
Run at Rate
SC
Significant Characteristic
SDR
Supplier Deviation Request
SOP
Standardized Operation Process
SPC
Statistical Process Control
SQD
Supplier Quality Development Engineer
VA/VE
Value Analysis / Value Engineering
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Revision History
8th
October
2015
Date
Update section 2.3 to specify
LON as means of acceptance to
the GSMM requirements
4.0
Grant Pinkus
Peter
Williams
Revision / Change description
Version
Prepared /
Revised
By
Globa
l
Appr
oval
Version no: 4.0 8th October 2015
MN-11.4-01
Copyright © Futuris All Rights Reserved
N/A
Local
Appro
val
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