VDA Formel Q

VOLKSWAGEN AG

Quality Capability SuppliersAssessment Guidelines

QM-system requirementsPotential analysisProcess audit, product auditVerification audits (D/TLD-parts)

4th completely revised edition Volkswagen AG, April 2000

1st Edition - 19912nd Edition - January 19943rd Completely Revised Edition - January 19974th Completely Revised Edition - April 2000

English translation from the German original edition. If there aredifferent interpretations, the original German edition is to be used.

This brochure will also be available in Spanish, PortugueseCzechoslovakian and Chinese.

All rights especially the right of duplication and distribution as well astranslation are reserved.

Issued by : Volkswagen AGGroup Quality Audit SuppliersP. O. Box 1467/0D - 38436 WolfsburgPhone: 05361-973185, Fax: 972237

1

Foreword

The 4th revised edition of this brochure considers the new qualitystrategy that was agreed upon between the manufacturers and thesuppliers in the VDA and according to which suppliers in the automotiveindustry must prove a quality management system according to VDA 6.1or ISO/TS 16949.

With regard to the QM system requirements, we refer to VDADocument 6 Part 1 or the ISO/TS 16949 as a harmonised qualitymanagement standard. These QM system reference works are nolonger part of this brochure.

According to this strategy, process and product audits are now thepriorities of the car manufacturers and the suppliers, they are thus alsothe priority of this brochure. The requirements in this regard wereformulated more accurately and additions where made in some cases.The potential analysis as a provisional check before a decision is madewhether an order should be placed with unknown suppliers has beennewly integrated.

The brochure “Formel Q-Capability” is a supplement to “Formel QKonkret” with process descriptions for the assessment of the qualitycapability of suppliers of Volkswagen. It is binding for the suppliers ofproduction materials for all the brands of the group as well as for theassociated companies worldwide.

The content of this booklet refers further to the applicable VDAguidelines and booklets. Special requirements of Volkswagen in terms ofthe processes and products as well as the requirements that resultedfrom continuous improvement programs (CIP) and the co-operation withsuppliers with regard to new projects, are described here.

The document specifies the requirements in terms of quality capability tothe suppliers to make it possible for them, also by means of self-audits,to adjust the quality management, the processes and the products tointernational standards and to the special requirements of theVolkswagen group at an early stage and to sustain them effectively.

For the Volkswagen group, the brochure is a regulatory framework withcompulsory requirements for suppliers and forms the basis for auditingthe manufacturing plants of the suppliers.

F. J. Garcia Sanz H. Kreiner

Board member for purchasing Head of Corporate Quality AssuranceBrand Volkswagen VOLKSWAGEN AG

Wolfsburg, April 2000

2

* This brochure describes this component

Quality Management Agreement Purchased Parts

Elements:

Formel Q

Formel Q-KonkretQuality Management Agreement

between Volkswagen-Group and their suppliers

Formel-QCapability *

Quality CapabilitySuppliersAssessment Guideline

Formel-QNew Parts

QualificationProgram

for New Parts

“QPN“

Formel-QProductionReadiness2-Day ProductionPreparation and

Execution

Superior agreementas component of the contract

Result

Annual Q Award

Assessment systemsand

supporting processes

A

B

C

The best chosen from these

Supplier Evaluation

for continuous improvement

Quality, Service, Price and Innovation

3

This brochure describes the component:

Contents

1 Introduction

1.1 Purpose1.2 Requirements for Quality Capability Assessments1.3 Responsibilities1.4 System Structure1.5 Rating Results and Follow-up Activities

2 Quality system audit according to VDA

2.1 General2.2 Recognition of QM System Audit Results / Certificates

3 Potential analysis

3.1 General3.2 Auditing and evaluation process3.3 Total evaluation

4 Process audit

4.1 General4.2 Process audit in the production creation process Part A4.2.1 CAD requirements4.3 Process audit of series production4.4 Individual Assessment of the Questions and Process Elements4.5 Overall evaluation4.5.1 Overall evaluation of the product creation process Part A4.5.2 Total evaluation of series production Part B

Evaluation criteria

° QM system requirements° Potential analysis° Process audit° Verification audits for D/TLD-parts

4

5 Product audit

5.1 General5.2 Execution and actions5.3 Fault classification decisions, actions

6 Overall evaluation of the quality capability, rating

7 Quality verification audit for D/TLD-parts

7.1 General7.2 Audit procedure7.3 Definition of product groups/part selection7.4 Evaluation of individual questions / audit results7.5 Audit report / improvement program7.6 Identification codes for technical documents

8 Audit documents / verification

9 List of requirements for the potential analysis

10 List of requirements for the process audit

Part A Product creation processPart B Series production

11 List of requirements for verification audits (D/TLD-Parts)

Appendices• Product group manual• Supplier self certification• Quality capability forms/results overview• Product audit evaluation sheets/results overview• System and process audit overview of evaluated questions• Process audit evaluation examples• Potential analysis forms/results overview• D/TLD-parts form/checklist

1. Introduction

5

1.1 Purpose

The evaluation system for the quality capability of Volkswagen groupsuppliers is based on a quality standard for the automotive industry thatwas developed by the VDA/ DGQ expert group.

According to this quality standard, the QM system according to VDA 6.1is the basis for suppliers of production material, and the fulfilment of therequirements must be proven to the Volkswagen group by a certificate(3rd party).

In addition to the quality management system certificate, aprocess/product audit that is comparable to VDA 6.3 / 6.5 is used forspecial product groups to assess the quality capability of suppliers. Apartfrom the basic requirements of a QM system, it also considers thespecial product-related requirements of Volkswagen purchased parts,the production process, and special technical inspection requirements.

The process audit facilitates the evaluation of the planning activities inthe product creation process at a very early stage after the decisionregarding the placement of the order was made to ensure that theprocesses and the process sequences are free of defects when seriesproduction starts; the as-delivered quality and the function of theproducts must comply with the customer requirements. Adherence toimportant customer relevant product characteristics and all customerrequirements at the sub-contractors is of particular significance.

Systematic defect analysis and the introduction of measures for thesupplier to improve quality are evaluated; a basic efficiency improvementshould also be achieved, based on process and procedure steps that areto be improved.

While compliance with the basic requirements according to VDA 6 Part 1can be verified through certification (third party), the process/ proceduresteps for Volkswagen products and adherence to important productcharacteristics are audited exclusively by the auditing teams of theVolkswagen group or Volkwagen’s associated companies.

The evaluation result provides information on the quality capability of thesupplier for individual product groups. It suggests to what extent a QMsystem, corresponding to the standards, has been established andeffectively converted into practice and how much the process/ proceduresteps for the Volkswagen products comply with the specific requirementsand specifications of the customer.

1. Introduction

6

The quality capability evaluation is a component of supplier assessment.The effectiveness of the QM system and of the processes is measurableby evaluating the quality performance of delivered products or services(see Fig. 1).

A positive supplier evaluation is a pre-requisite for receiving a purchaseorder.

QM - System certification acc. to VDA 6.1Process AuditProduct Audit

Quality Capability Quality Performance

QualityServicePriceInnovation

Development, Sourcing

Full Scale Production

Further Processing, UsageMarket Competence

S u p p l i e r E v a l u a t i o n

Fig. 1

1.2 Requirement for Quality Capability Assessments

The quality capability of selected suppliers, before the placing of anorder, must always be proven before a purchase order for a new part(forward sourcing) or for a series part (global sourcing) is placed.

The proof can be submitted by self-certification of the suppliers plussupplementary audits to be carried out by the responsible departments inthe VW group, using the potential analyses or the process audit.

If a current series supplier is commissioned with new or altered products,it must be confirmed that the existing evaluation is sufficient or whether,where necessary, previously irrelevant QM elements, or individualrequirements which were not previously evaluated, are now moresignificant and require supplementary evaluation. This is clarified in thecourse of the Qualification Program New Parts (QPN), held between theVW project supervisors and the quality audit supplier group.

1. Introduction

7

Therefore, for example, a supplier without previous product developmentactivity must be audited in the relevant quality management element ofdesign control if such services are to be provided. A supplementary auditis necessary for parts requiring special verification (D/TLD) if supplied forthe first time.

VW purchasing must ensure that the intended supplier has already beeninformed of all criteria and requirements prior to the preparation of aquotation so that these can be introduced into the calculation, asnecessary. If the offer is positively assessed by the purchasingdepartment, the assessment of the quality capability, or of elements thatmust additionally be evaluated, must be initiated from purchasing.

Before the order is placed and the initial sample is ordered, there mustbe a quality capability rating of A or B. Determined improvement actionis to be implemented by the supplier before series production (see Fig. 2)so that all the requirements for an A supplier are complied with by thestart of series production.

(Note: See brochure “Qualification Program New Parts”).

The rating of the quality capability is based on an audit result on acertain date on which the local conditions of the supplier were adjustedto the VW group requirements and were evaluated.

Changes to processes and equipment as well as changes of sub-contractors must be indicated to the purchasing plant and the auditingdepartment. A new assessment of the quality capability and, ifnecessary, a new initial sample order can subsequently be effected (seealso VDA Document 2 “Ensuring the quality of deliveries”).

1. Introduction

8

INQUIRY NOT PURSUED

Release for series deliveries Target: Rating A

C = CUSTOMER RESPONSIBLE

S = SUPPLIER RESPONSIBLE

C

NON QUALIFIEDSUPPLIER

Product- / processdevelopment

corrective action /CIP

QUOTATION

ASSESSMENT

QUALITY

CAPABILITY

C

negative

PPF *) S/C

positive

negative

C

PURCHASE INQUIRY

positive

S

Rating C

AFTER IMPROVEMENT PROGRAM

C

ORDER PLACEMENTC

S

Rating A/B

*) Production process and product release (VDA Volume 2)

Product- / ProcessImprovements

Fig. 2: Activities from parts enquiry to series production

1. Introduction

9

1.3 Responsibilities

The on-site quality capability assessment of applicants and suppliers ofthe Volkswagen group and its subsidiaries is carried out by experiencedauditors. Other experts from development, production departments,quality control for purchased parts of the plants, purchasing and/or otherdepartments of the VW group participate in potential analyses and auditsfor special product and process requirements. However, coordination isalways controlled by Quality audit suppliers Volkswagen group or theauditing departments of the individual brands / affiliated companies.

If the Quality Management System has already been audited/certifiedaccording to VDA volume 6 part 1 or ISO/TS 16949 by third parties or byVDA authorised certification organisations, then a case by case decisionwill be made as to whether the result can wholly or in part be recognisedand considered or whether a renewed re-audit is necessary.

All follow up activities necessary in this context such as pursuit of theimprovement program at the suppliers are the responsibility of theSupplier Quality Audit Group.

1. Introduction

10

1.4 System Structure

The total assessment of the quality capability per product group isdivided into the following audit types for a clear separation of principalrequirements and procedures in the Quality Management Systemaccording to VDA 6 Part 1 and the process-/product-specificrequirements for product development, manufacture and delivery ofVolkswagen products:

– Quality management system audit– Potential analysis or process audit– Product audit

(for interfaces and key points see Fig. 3)

Questions and list of requirements derived from the quality managementelement and the process requirements (see Fig. 4) are used in thequality audit. The individual requirements are co-ordinated with thesupplier during the audit, important product requirements are additionallyconsidered during the product audit.

Quality Management System Audit, Potential Analysis, Process Auditand Product Audit are integrated into the total evaluation of the qualitycapability regarding Volkswagen products. In the case of existing orapplicable certificates/ Quality Management System Audit resultsprepared by third parties, the total assessment is based on the list ofrequirements (potential analysis / process audit) used and thespecifications as well as the defined rating criteria. The assessment isbased on a points system for the individual questions/ requirements anda calculation formula for the accumulation of the individual level ofachievements of quality management elements and process.

Where certificates/ extraneous audit results which can be considered arealready present, a rating according to these results can be given. If asupplementary process or product audit becomes necessary, the ratingcomes from this audit and all requirements audited therein includingsupplementary audit questions from the Quality Management System(see point 6).

Rating of quality capability occurs according to product groups (e.g.tyres, glass, cast parts) with additional production tasks if necessary,such as, for example, heat treatment or painting (see Product Group listattachment).

1. Introduction

Figure 3: Interfaces and priorities of different audits 11

Quality management in the automotive industryCertification and auditing

Certificates DIN EN ISO 9001/9002

Potential analysis / process audit (VDA 6.3)

Certificates VDA 6.1, EAQF, AVSQ, ISO/TS 16949

Product audit (VDA 6.5)

Practice-related additional requirements,product creation / series manufacturecustomer requirements / service

Compliance with allthe important qualitycharacteristics of theproduct

Existence / application of aQM system based on the norms

Existence / application / effectiveness ofautomotive-specific additional requirements

Application and effectivenessprocess requirements against own productsSuitability of process /procedure(customer-, product-specific)

+

+

QM-manual Process / operating instructionsQM – system application

Customer-specific product, process specificationsContinuous improvment

Basic requirementsof the norm and of the automotive

industry

Car manufacturer / supplierVDA authorised certifying authorities

1. Introduction

12

QUALITYCAPABILITY

Product Creation Process

Product Development(Planning and Implementation)

Process Development(Planning and Implementation)

Full scale production

Purchased material / Purchased Parts

Assessment of Suppliers Product, Process Releases

Delivery, Identification, Storage of Products

Non Conformity Analysis, Continuous Improvement Target Agreements

Production (each production stage)

Use of Personnel and Qualification

Operational Equipment / Facility

Transportation / Parts handling Storage / Packaging Non Conformity Analysis

Continual Improvement

Customer Care Customer Satisfaction (Service)

Satisfaction Customer Requirements

Reliability / endurance tests

Non Conformity Analysis Continual Improvement

Regarding specialproduct groups of the VW Group

Certificate: VDA Volume 6 Part 1

OnlyBeforeSOP

Process Audit Product Audit

Quality System Audit

Compliance with importantproduct characteristics

VDA Volume 6.3 Part A

Experience / referencesCompliance with importantcharacteristics

Part complianceQM-systemJIT conceptsInternal audits

Product development

Product planningResponsibilitiesSpecified time framesDevelopment capacitiesSeries releaseCustomer contacts

Quality methods/techniques

Q-analysisTest devicesCIP

Purchased parts

Supplier qualificationProduct releasePart storage

Production

Process installationsProcess capabilitiesProcess specifications/qualityMaterial flowCustomer CareCustomer satisfaction

Product auditFailure analysisCorrective actionCustomer contacts

VDA Volume 6.3 Part B

Potential Analysis

Fig. 4: QM-System, process elements and product quality for the assessment of thequality capability

1. Introduction

13

1.5 Rating results and follow up activities

Improvement measures are agreed and scheduled with the supplier onthe basis of the audit result. It is expected that the supplier introduces thenecessary measures and that the improvement program is quicklyimplemented.

The supplier is obligated to indicate the agreed improvement measuresand their implementation to the auditing department, which then decideswhether a renewed audit of the suppliers’ production area is required. Asupplier can only be released for series deliveries if the shortcomingsthat were pointed out in the respective improvement program have beeneliminated according to the deadlines, the start of production (SOP), andif the relevant requirements are complied with.

A new audit is required for unacceptable quality performance of thesupplier, or for new products / product groups (see Fig. 5)

1. Introduction

14

Implement improvement program

Rating resultsQuality capability

RATING A

Define weak points / corrective actions

Determineimmediate action

Compile improvement programInform customer

Execute new auditNew rating for new product groups,for new projects / changed requirements(if necessary), insufficient quality performance

C = CUSTOMER RESPONSIBLE

S = SUPPLIER RESPONSIBLE

C

C/S

C/S

S

S

S

C

RATING B RATING C

Execute subsequent auditImplement the action and

submit audit results to the customer

Fig. 5: Rating results and follow up activities

2. Quality management system audit acc. to VDA

15

2.1 General

The quality management system requirements of the VW group arebased on agreements between car manufacturers and suppliers, towhich a QM system according to VDA 6 Part 1 or ISO/TS 16949 must beeffective. The requirements for the QM elements correspond to DIN ENISO 9001/9004-1 with specific additional requirements for the automotiveindustry and refer to the basic definitions and requirements for thequality management system and the respective practical application.Structural and functional aspects are analysed; the interaction ofinterface functions and interface tasks is considered in a decisive scope.

In the audit, the presence and effectiveness of installed qualitymanagement systems at the individual production site are determinedand compared with the requirements of the products produced at thesupplier.

The knowledge and the action of the management and the employeesresponsible for the individual quality management elements aresystematically assessed and, if necessary, improvement actions areagreed upon.

The assessment bases for the quality management system audit are thequality management manual of the supplier, quality managementinstructions and procedure guidelines as well as guidelines for companymanagement, order documents and customer and legal requirements.The effective application of the individual QM system requirements mustbe proven.

The remarks and explanations for this can and must be provided by theperson responsible for the relevant quality management element. Thismakes understanding and practical application transparent.

Before or while the QM system or individual elements are evaluated, theauditor must determine the relevant questions in consultation with thesupplier. Questions that are not applicable in the defined qualitymanagement elements are not assessed.

Volkswagen usually does not execute any complete QM system auditsaccording to VDA 6.1 as these are part of the 3rd party requirement(certification). The supplier must ensure that currently valid QMcertificates are sustained.


16

If the supplier has not been certified according to VDA 6.1, the followingVDA 6.1 QM system elements are additionally audited within theframework of a process audit.

• 05 Financial considerations regarding QM systems• 06 Product safety• Z1 Corporate strategy• 08 Design control (product development), if applicable• 09 Process planning (process development)

Other VDA 6.1 QM system elements are included in the evaluation,where necessary, if serious shortcomings with regard to individual VDA6.1 QM system elements are determined during the process audit.

We refer to the respectively valid document VDA 6 Part 1 with regard toindividual requirements, explanations and references to the QM systemas well as the evaluation of individual questions of the QM elements andthe total evaluation of the QM system.

The suppliers are obligated to submit all the results regardingcertifications/auditing, even those that were executed as self-audits, toVolkswagen on request. These documents must be accompanied byimprovement programs that have already been compiled and initiated.

The qualification certificates can be requested before the order is placedas a self-certification of the supplier, using the respective form (seeAppendix “Supplier self-certification”). The self-certification of thesupplier provides the customer with the option to specify specialadditional requirements and to restrict their own audit to the mostessential issues.

(The allocation and over-lapping of the individual audit types are depicted in Figure 3)


17

2.2 Recognition of QM system audit results/certificates

An audit of the quality management system and the process/ proceduresteps is very time-consuming and ties up a host of personnel andrepresents a high cost factor to both the audited company and thecompany performing the audit.

Based on QM system requirements according to VDA 6.1 (comparable toEAQF / AVSQ), it is possible to recognise certificates or audit results ofQM elements that have already been assessed.

The Volkswagen group recognises a certification according toISO/TS 16949 (VDA 6.1, EAQF, AVSQ and QS 9000 harmonised) asequivalent to VDA 6.1; certification according to this standard is,however, not demanded.

Accredited certification authorities that are approved by the VDA mustexecute the certification and all the audit certificates must be available(including deviation reports) so that the certificates can be recognised.

2nd party audits are only recognised for individual elements according toVDA 6.1 – however, not as an overall evaluation – if these were realisedby certified auditors that are registered as “lead auditors VDA 6.1” in theVDA.

The recognition refers to the QM elements according to VDA 6.1 thatmust be audited in addition to the process audit if no certification exists(see Point 2.1). However, not more than 2 years may have passed sincethe execution of the last audit.

In the event of any serious deviations in the process audit and thesupplementary auditing of the QM system elements referred to, thecertificate will not be recognised for QM system elements with less than80% compliance. Volkswagen will request the supplier to arrange for asubsequent auditing by the certifying authority.

3. Potential analysis

18

3.1 General

The quality capability and the development know-how of the applicantmust be assessed when preparing a decision regarding the placement ofan order with an unknown supplier, in particular when orderingtechnically sophisticated products. Technically sophisticated productsare products with special requirements in terms of the manufacturingtechnology, high quality demands, special technological requirementscompared to the competitors and special requirements in terms of thedevelopment performance of the supplier.

Such determination of the quality capability with the aim to prepare forthe purchasing order decision is carried out within the framework of apotential analysis, involving experts of different business areas of theVolkswagen group to determine the technical and organisational facilitieson the production site of the supplier at short notice and with a minimumtime expenditure.

The auditing team is usually composed of experts from the quality auditsupplier group, the development and the purchasing departments as wellas, depending on the individual case, other experts from the relevantdepartments, such as production/logistics and QA purchased parts fromthe purchasing plant.

The potential analysis serves for evaluating the development andprocess potential of the applicant, referring to the parts and theprocesses as indicated and specified by the purchasing department.The experience of the supplier with regard to similar product and thepotential in the core processes of product realisation are assessed.

The potential analysis requirement list is used for the systematic andreproducible analysis. The questions / requirements that are notapplicable at the time when the audit is carried out are not included in theevaluation. The product development potential can also be evaluated bya supplementary requirement list of the development “component-specific evaluation of development partners” in this same context.


19

3.2 Auditing and evaluation process

The “process” potential analysis is the determination and the evaluationof the potential with regard to the offered parts, the suitability ofprocesses and process sequences as well as the capability to fulfil thecustomer requirements/expectations.

The following evaluation elements exist:

• Compliance with important component requirements (importantcharacteristics)

• Experience / references• Process development / project planning potential• Q methods / Q techniques used• Pre-material / purchased parts (sub-contractor qualification)• Customer care / customer satisfaction (service)• Production (all process stages)

with process specifications, process installations, quality controlactivity / test technology, material flow / logistics.

The individual questions and evaluation elements are evaluatedaccording to the following evaluation scale:

Number ofpoints

Evaluation of the compliance with individualrequirements

10 Requirements fully complied with

8 Majority of requirements complied with; minor *)deviations

6 Some of the requirements complied with; seriousdeviations

4 Requirements unsatisfactorily complied with, serious deviations

0 Requirements not met

*) Majority means in this regard that more than approx. ¾ of all the requirements have effectivelybeen proved and that no special risk exists


20

The degree of fulfilment of every individual element (EE) and

the degree of fulfilment of the process (EP)are calculated as follows:

Total of all the points achieved for evaluated requirements Total of all possible points for element

Total of the degrees of fulfilment of all the evaluated elements Number of the evaluated elementsEP [ % ] [ % ]

EE [ % ] X 100 [ %]


21

3.3 Total evaluation

The rating is individually determined for EP and EDE. The overallevaluation according to rating A, B or C is, according to the “obstacle”principle, always the lower individual rating.

Rating scale:

RatingDegr. of fulfilmentEP [%] EDE [%]

Determination regarding thepurchase order decision Determination

A at least at least 90 90 Can be used Without any series individual

weaknesses

B 80 – 89 75 – 89 Can be used w i t hc o n d i t i o n s

Improvement/investmentprogram can be implementedby the start of thedevelopment/SOP

C 0 – 79 0 – 74 C a n n o t be usedImplementation of animprovement/investmentprogram by the start of thedevelopment/SOP cannot beforeseen/cannot be fulfilled

Downgrading

• An evaluated company must be downgraded to rating C if theimprovement/investment program is not foreseeable / not fulfilled forindividual criteria by the start of the development / SOP. This is notedin the audit report.

• Other reasons for a downgrade are described in Chapter 6.

An improvement program that might be necessary is co-ordinated withthe audited company on the date of the audit. The auditing teamspecifies the deadlines for the implementation and deadlines for thefollow-up activities. The Supplier Quality Audit Group or the developmentdepartment monitors the improvement program and the initiation for asubsequent audit, where necessary.

A process/product audit according to Section 4 must always be carriedout by the „Start of Production“ ( SOP ), an A-rating should be aimed at.Even in the event of a rating “cannot be used” (C Rating), the auditedcompany is requested to correct the determined weaknesses and toreport the implementation of improvement action to the evaluation teamso that the improvements can be considered for future purchasing orderdecisions.

4. Process Audit

22

4.1 General

In addition to the quality management system audit, which as a rule iscarried out by certification organisations authorised by the VDA, aprocess audit is carried out for production parts with specialrequirements of the Volkswagen group; the audit considers theserequirements of the Volkswagen group and includes the verification ofsecure processes and process sequences. If necessary, the seriesproduction of applicants will be audited using comparable competitorparts and the currently used processes.

The Process Audit provides the assessment/ measurement of theprocess and procedure quality of the product and process developmentsteps, suppliers/ purchased material (purchased parts) of the individualprocess steps in the parts manufacture as well as the compliance with allcustomer requirements right up to complete customer satisfaction.

Processes, for which this audit is particularly suited as an investigationmethod, can be identified by the following characteristics:

- new products- new processes/ new factories- numerous processing steps- numerous variables- high quantities or volumes- numerous single purpose equipment- enforced long term planning and usage- technological special features compared to the competition

In the Process Audit the co-ordination and adherence of the process andprocedure quality is evaluated in conjunction with job, process, andprocedure instructions, ingredients, technical product/ processspecifications, customer and legal requirements.

Process audits are particularly necessary for:

- projects, new awards, different locations- special customer and legal requirements- differing process and procedure steps- several functions with split responsibility or- arising quality problems/ non compliance with the customerand legal requirements

4. Process Audit

23

The audit is oriented towards the requirements of specially designatedparts and the processes belonging to them. The Process Audit is dividedinto 2 main sections :

A Process Audit of the Product Creation Process withassessment of all tasks for product and process developmentafter order placement of the customer and

B Process Audit of Series Production with assessmentof all process and process sequences in the ongoing production.

A particular key point is the conversion of customer and legalrequirements into practice and the presentation of continuousimprovements.

The key points of the audit are the timely planning and qualification ofproducts and processes of the Volkswagen parts as well as continuousimprovement (CIP) in all process and procedure steps. The qualificationsof the personnel and their responsibility in the process are of particularimportance.

Individual questions with similar content to the Quality System Auditaccording to VDA 6.1 are consciously asked in order to be able toassess the effectiveness of the QM system on the product / process. Theresults provide information about the actual application of theQM System in the Product Creation Process of a product, or a productgroup, in series production and customer care in order to achieve thegreatest customer satisfaction.

Insufficient compliance can raise questions about an existingassessment of the Quality Management System and if necessaryeffect a new Quality Management System Audit.

In the Process Audit all previously known problems of the product andprocess (quality performance) are included and the current processcapability of important/ decisive characteristics assessed (see alsoproduct audit Section 5).

For a systematic and reproducible analysis the list of requirements forthe process audit is used. The questions not applying at the time of theaudit are deleted and not entered into the assessment.

As the audit demands a high level of product and process knowledgefrom the auditor, experts from the organisation may participate in theaudit in agreement with the Supplier Quality Audit Group.

The determined result applies to the total corresponding product group(according to the product group list, see Appendix).

4. Process Audit

24

4.2 Process Audit in Product Creation Process Part A

productdevelopment

planning

strategic orientation

implementation


The Process Audit can be carried out very early or shortly afternomination, even if no series production has occurred, or if new factoriesare planned (green field).

Here the audit is based on requirements and their compliance within theindividual project dates in the product development process and containsthe strategic orientation to supporting processes in the planning andimplementation phases.

The product development process is always an individual audit elementcompared to the process development and is therefore generallycalculated and awarded with an individual level of achievement.

Process development is also assessed as an individual element anddesignated as a separate second element until the start of seriesproduction. Existing/ comparable processes for series production areincluded in the audit. Failures must be traced back to the process plan-ning for the new product and must be improved already at that stage.

Product and process development is important for later customersatisfaction in series production. Therefore the individual requirementsmust be checked at suitable intervals for adherence/ deviations and ifnecessary newly specified in the project.

In all the phases of product development, risk analyses must be carriedout and target agreements must be defined to fulfil all the customerexpectations with suitable action and continuous improvement (see alsoVDA Volume 4 Part 3).

Corrective action / CIP

4. Process Audit

25

4.2.1 CAD requirements

Since technical objects have been designed using computer systems,there has been the problem regarding how to use these designs indifferent computer systems. Whereas during the 1970s, drawings thatrequired a re-entering of the data were exchanged in almost all thecases, today, drawings are mostly transmitted via the interim stage of ajoint and standard external product data model.To ensure an efficient and successful operation of the companies thatare interlinked world-wide, it is not only required that the CAD systemsthat are involved in the process chain are able to communicate on datalevel but also that all the information from the development,measurement and production sequences of a product (“product model”)are exchangeable.The significance of the exchange of data between the different CADsystems has thus strongly increased.Modern industrial concepts, such as simultaneous engineering, would beunthinkable without the exchange of product data. The data are mainlyexchanged via neutral data interfaces.In every-day practice, major problems and thus costs are generatedduring the exchange of CAD data. These are, on the one hand, due tothe insufficient quality of the translation programs, and on the other handdue to the unclear specification of the interface format.The CAD suitability of the supplier will be evaluated with the respectiverequirement in connection with the evaluation of the process/productdevelopment planning in the process audit. When executing a potentialanalysis, the suitability of the CAD is checked, using the questionnaire“Component-specific evaluation of development partners”.During the audit, the “Technical options” (hardware) and the practicalexperience are evaluated. The staff must have a basic techniciantraining (or comparable) and must certify with additional CAD training ofat least 3 months with a refresher course. Furthermore, one year ofpractical experience for the CNC activities is required. The ability to workwith the vehicle co-ordination system must be certified. An examplemust be produced for this purpose, the data must be entered.Software/data transfer must be compatible with VW/ Audi systems (e.g.CATIA or Pro/Engineer), an online data exchange (HyperKVS) must bepossible, where required. (See development brochure “Basic conditionsfor the partners of Volkswagen in the product development process”).

4. Process Audit

26

4.3 Process Audit of Series Production Part B


coreprocesses

customer satisfaction

servicesub-contractors

Process audits performed during the series production require that theproduct generation process (product and process development) iscompleted. They consider to a large degree customer satisfaction andsupporting processes.

The implementation of defined actions after finalisation of the productcreation process is a prerequisite for and a subject of the audit.

Auditing in the series production without process development can beperformed at start of production (SOP) or at any time during the entiremanufacturing process. The result of this process audit can be usedindividually or in conjunction with a quality management system audit orcertification as a measure of the total assessment of the quality capabilityand rating of the supplier.

For process observations and process improvements it is necessary tooperate production non-conformity analysis in-house and to introducecontinuous improvements derived therefrom. Suppliers with their ownprocesses must also be included in the total process chain observationand perform their contribution to continuous improvement.

A further process to be considered is product observation after deliveryand customer care. Rapid recognition of problems and decrease ofcustomer satisfaction must trigger immediate process improvementactivities.


4. Process Audit

27

4.4 Individual Assessment of the Questions and ProcessElements

Each question is rated with regard to the respective requirements andtheir fulfilment for securing the process. This rating may be 0, 4, 6, 8, or10 points with the evidence of the degree of fulfilment being the standardfor the scoring:

Points Assessment

10 requirements fully met

8 requirements mainly met; *)minor deviations present

6 requirements partially met; major deviations present

4 requirements unacceptably met, serious deviationspresent

0 requirements not met

*) “mainly” means that more than ¾ of all requirements are proven effective and that no special risk exists.

The degree of fulfilment EE of an evaluation element is calculated asfollows:

Total of all the points achieved for evaluated requirements Total of all possible points for every evaluated elementEE [ % ] X 100 [%]

4. Process Audit

28

4.5 Overall evaluation of the process audit

4.5.1 Overall evaluation of the product creation process Part A

The evaluation of a product group depends on the respective situationafter the decision regarding a purchase order has been made (seeFigure 6). Thus, for instance, the product development process can onlybe evaluated as long as no manufacturing processes have beeninstalled, i.e. all the planning activities are evaluated.

If series production comprises comparable processes / products, theseare also evaluated according to the requirement list Part B. Deficienciesthat were determined must be considered in the planning processes ofthe supplier, must be proven, and concrete corrective action must beallocated to these.

The rating is only executed after Part A has been evaluated. The degreeof fulfilment in the product creation process ED must be determined fromthe degree of fulfilment of product development (design) EDE and theprocess development EPE.

4.5.2 Total evaluation of series production Part B

With / after the start of series production (SOP), once the productioncreation process has been completed, the evaluation is exclusivelyexecuted according to Part B, and the rating is carried out according tothese requirements. All the required action from the planning /realisation phase must have been implemented by this time.

Owing to the different process steps for the respective product groups inthe production element, the process steps must be summarised for therespective product group (EPG). The elements EZ and EK areindependently evaluated.

It is necessary to audit individual process steps and to summarise theseaccording to product group to ensure a smooth weighting of all theelements. Different degrees of fulfilment might result for the individualproduct groups because of the respectively selected process steps withinthe production element.

EDE + EPE[ %]ED [ %] =

Number of evaluated elements

4. Process Audit

29

The average value EPG of every product group is calculated as follows:

In this context, E1 is the first and En the last process step in theproduction, referring to the respectively indicated product group.

The total evaluation of the degree of fulfilment EP for the process audit iscalculated as follows:

In addition to this process evaluation, the sub-elements with systemreference in the production element can also be represented separatelyand evaluated. These are:

EU1: Personnel / qualification of the staffEU2: Operating resources/ installationsEU3: Transport/ part handling / storage / packagingEU4: Failure analyses/ corrections / continuous improvement

As the evaluation is carried out over various process steps, theinterfaces to the QM system are recorded and deficiencies are indicated.In the event of serious deficiencies repeated auditing for applicableQM elements according to VDA 6.1 might be required. Thesupplementary evaluation of QM elements that might be carried out is ofdecisive significance in the overall rating. (see rating criteria).

E1 + ... + En[ %]EPG [ %] =

Number of evaluated process steps

EZ + EPG + EK[ %]EP [ %] =


4. Process Audit

30

Time of the audit Evaluation contents EvaluationDegree of fulfilment [%]

Individual elements TotalWhen the order is placedbefore SOP, no comparableseries processes exist(green field)

Product creation process Part A 1.)

• Product development (if relevant)• Process development

EDE

EPE ED

When the order is placedbefore SOP, comparableseries processes exist(also series analysis oncompetitor parts, ifnecessary)

Product creation process Part A 1.)

• Product development (if relevant)• Process developmentSeries production Part B 2.)

• Pre-material suppliers• Production (all the existing/required process steps)• Customer care, customer satisfaction

EDE

EPE

EZ

E1 to En EK

ED

EP

With start of series(SOP) or running seriesproduction

Series production Part B 3)

• Pre-material suppliers• Production (all the existing/required process steps)• Customer care, customer satisfaction

EZ

E1 to En EK

EP

Notes:1. All the tasks must be distributed on the time axis. Checkpoints/milestones must be listed (see VDA Volume 4 Part 3). The

auditor must adjust the percentage fulfilment with the supplier; the project plan must correspond to the Volkwagenspecifications. It must be realistically possible to comply with all the requirements by SOP.

2. The auditing of existing parts manufacture may refer to comparable products for other customers or to Volkswagen Groupseries parts, identified defects must be dealt with in the planning activities (Part A). EP is only determined for VolkswagenGroup series parts and a special rating is derived from it.

3. The audit refers exclusively to applied processes of the supplier’s products; processes at sub-contractors can be integrated.

(Only at serialparts for theown coporation)

Evaluation contents and evaluation at different phases

5. Product Audit

31

5.1 General

Process variations and low process capabilities tend to have a directeffect on product quality and, consequently, the compliance withcustomer requirements. In a product audit, it is possible to determinedeviations from the customer requirements and to directly drawconclusions with regard to the influencing processes. Taking thedetected deviations into account, it is possible to investigate and analysethe priorities in terms of the problem processes and to implementcorrective action. The processes can be investigated, analysed in keyareas and continuous improvements achieved.

The supplier is always obliged to carry out product and process audits ontheir own on a regular basis. Volkswagen also carries out product auditsfor certain priorities before the process audits at the supplier to evaluateimportant product characteristics from the point of view of the customerand to identify critical processes.

The task of the product audit is to inspect products that are ready forshipment in terms of their compliance with the specified customer-relevant characteristics, to draw conclusions with regard to the parts / as-delivered quality, to trace deviations back to the defects in the processthat cause them and to initiate corrective action, where necessary.

See VDA Volume 6 Part 5 for details.

5.2 Execution and actions

The product audit can only refer to a few important characteristics thatmust be defined in consultation with the supplier. The characteristics areselected in a risk-oriented manner according to fault category A or B (seetable 5.3); it is not possible to include long-term tests in the audit, thelatest results that the supplier can provide regarding these products canbe used in this regard, if necessary. The most important characteristicscan refer to, for example:

- Characteristics that deviate from the customer requirements(complaints from the past)

- Dimensions (initial measurement, function, assembly)- Material- Function- Visual appearance- Product identificationFaults of fault category “C” that are identified during the inspection areregistered and evaluated.

5. Product audit

32

For the execution of the audit, a production batch that was recentlyproduced or parts thereof must be available so that the quality of thecurrent process can be retraced. The parts for the inspection are takendirectly from the store or before shipment from the original packaging forthe customer.

The quality of the container, cleanliness and packaging are alsoevaluated, however are not included in the product audit evaluation, butare referred back to the process audit and integrated in the respectiveevaluation.

The sample size for parts in the product audit depends on the productcomplexity and previous experience. At least 5 to 10 parts of one partnumber should usually be taken. The target and the actual values arerecorded and evaluated. (See Appendix for form).

Should any deviations from customer requirements be determined,immediate action, such as sorting of the stocks, quarantine of parts,required special action at the customer, is initiated; such action must berealised on short notice.

In the parts inspection, the quality and functional capability of the test,inspection and measurement equipment is also evaluated andconsidered in the process audit. Corrective action must be agreed uponif any deviations from customer requirements are determined. Qualityratings (QKZ) are not calculated, they are subject to the internal productaudits of the supplier (see VDA 6.5)

If any faults are found, these are considered for determining the overallresult for the process audit. A rating can be derived from this (seeSection 6 Overall evaluation).

5. Product Audit

33

5.3 Fault classification, decisions, actions

Faultcate-gory

Fault description / effect Immediate action Follow-up action

Fault will certainly result in customer complaints.

• Safety risk, violation of legal regulations, nostart conditions

• Product cannot be sold/function not fulfilled• Extreme surface complaints

• Continue analysing process/ testactivities

• Develop and implementcorrective action

• Prove process capability andzero defects

• Check effectiveness of initiatedaction

• Arrange for change ofspecifications, if necessary

Annoyance of the customer or complaints can beexpected.

• Foreseeable failure• Reduced serviceability

• Quarantine / sorting out of existingparts

• Information to purchasing plantsand risk assessment

• Corrective action in themanufacturing/ inspection process,full inspection, if necessary

• Intensified test action on theprocess and the finished product

• Full inspection before delivery, ifnecessary

Complaints from demanding customers can beexpected.

• Deviations that do not have an influence onthe use or the operation

• Serviceability not reduced

• Information to purchasing plants tocoordinate actionC

A

B

6. Overall evaluation of the quality capability, rating

34

The overall evaluation for every product group is composed of• QM system evaluation (total degree of fulfilment EGES: according to

VDA 6.1, complete elements or elements that were selected atrandom) or 3rd party certification

• Process evaluation:Degree of fulfilment Ed for product/process development, and / ordegree of fulfilment EP for the series process

• Product audit with representation of the fault frequencies for everyfault category for series suppliers

If only a product and process audit is executed, as the result of a qualitymanagement system audit or the certification is already available or sucha system audit is planned, the rating is based on the result of the processand product audit in consideration of the existing QM system auditresults, or, in the case of new products, sometimes only based on theprocess audit result; (see Point 4.3) in consideration of the downgradingcriteria that are indicated in the following (see below).

Individual elements regarding the QM system, which are included in theaudit according to the selection of the auditor, are not considered for thecalculation of the degree of fulfilment with regard to the process audit.The evaluated QM system elements are, however, considered for therating according to A, B or C within the framework of the downgradingcriteria (see downgrading criteria).

Faults that are determined in the product audit can also result in adowngrading.


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A

Rating scale

An audited company can be rated in the following manner:

Rating

Degree offulfilment

EGES / ED / EP

[%]

Designationof therating

Definitions / requirements

at least qualitycapable

• Customer requirements in terms ofdevelopment/series production arebasically complied with

• No serious individual weaknesses• Corrective action / CIP by supplier

80 – 89 qualitycapable w i t hc o n d i t i o n s

• Deadlines for improvementprogram have been set and can beimplemented within an acceptableperiod of time

• Corrective action• Subsequent audit

0 – 79 n o tqualitycapable

• Determine immediate action• No purchase order for new parts• Implementation of improvement/

investment program• Subsequent audit, if necessary

The “obstacle” principle is applied to the overall evaluation of the rating according to A, B or C, i.e. the lowest degree of fulfilment from Eges, ED, and/or EP determine the rating.

Examples: ED = 92 % and EGES = 81% ð Rating B

EP = 79 % and EGES = 80% ð Rating C

for the same grouping of the degrees of fulfilment, the overall rating is identical to every individual group.

EP = 83 % and EGES = 85% ð Rating B

C

B

90


36

Downgrading criteria:

Reasons for downgrading from A to B despite more than 89% degree offulfilment

• No certification of the QM system according to VDA 6.1 orcomparable (EAQF, AVSQ, ISO/TS 16949).

• One or more evaluation elements of the QM system were evaluatedwith a degree of fulfilment of less than 75%.

• One or more questions of the system audit/ process audit/ verificationD/TLD parts were evaluated with 0 points / no.

• Faults of fault category A or B were determined in the product audit.

Reasons for downgrading to C despite more than 79% degree offulfilment

• Supplier refuses to implement an improvement program or does notimplement it after he was requested to do so.

• Decisive quality targets of Volkswagen are not complied with.

• Target deadlines in project are not tenable orimprovement/investment program cannot be implemented beforethe SOP.

The auditor must always clearly state reasons for the downgrading to Bor C and list them in the audit report.

7. Quality Audit Verification for D/TLD-Parts

37

7.1 General

Car manufacturers are subject to certain stipulations as a result oflegislation, which must be fulfilled as a minimum requirement for allseries vehicles. This means that all suppliers have to maintainverification documentation, which, despite the product liability (liabilityirrespective of responsibility), should protect the suppliers and the carmanufacturer against any subsequent damage, for instance a prohibitionto sell their products and penalties for non-performance.(tortious liability according to BGB § 823)

In order to adequately counteract the manufacturer's liability, theVolkswagen group has gone beyond the normal legislation, and hasimplemented a procedure where parts, which are important to the safetyof human beings, also require verification.

In addition to the general requirements of the quality managementsystem, suppliers must maintain verification for individual D/TLD parts.This data must be kept for a minimum of 15 years. This also includes thefollowing documents that are identified with ”D” or ”TLD”. These caninclude drawings, tables, production release documentation, technicaldelivery specifications, test specifications, sample reports and otherquality records, which can be demanded as proof and which can relievethe party of liability.

Verification documentation also includes information regarding planning-type activities, the selection and qualification of personnel, suitability oftest equipment, as well as process-capability investigations andcorrespondence.

If there is a claim and/or if Volkswagen so requests, the supplier must bein a position to prove that he has done everything in his responsibility, asthe supplying company, to eliminate any faults and defects in hisparticular product.

Volkswagen checks this against defined product features of the productgroups to be supplied, and expects that suppliers apply the appropriateprocedure to every D/TLD part which is supplied. If shortcomings areidentified during the audit, it is assumed that the supplier will, on his ownaccord, implement the required corrective actions as quickly as possible,and will specify the date that he will respond to the audit report. After thesupplier has presented his improvement program, a decision will bemade as to whether a new audit is required.


38

After a positive evaluation, the supplier will be requested, at least once ayear, to check the effectiveness of the verification process by means ofan internal audit ( Self-audit ) according to Sections 7.2 to 7.5, or in acomparable manner, and if required, to implement improvementmeasures. The results of the audit must be archived for at least 15years. The supplier must always be able to prove that he applies thenecessary measures to secure and maintain quality. For the verification,all of the specifications according to VDA Volumes 1 and 6 Part 1 as wellas the Formel Q capability must be taken into account.

7.2 Audit Procedure

When auditing, the “List of requirements for verification audits (D/TLDparts)” (refer to Section 11) must be completely executed andcompleted; non-relevant questions must be removed ( for an evaluationof the individual questions, refer to Point 7.4).

7.3 Definition of Product Group / Part Selection(Form Sheet: quality audit verification for D/TLD parts, overview of the results of the product audit)

For D/TLD parts, the VW group defines the product group during the firstaudit. Generally, it involves the product group where the supplierreceived a positive quality capability evaluation by the VolkswagenGroup (also refer to the product group list in the Attachment).A new audit by Volkswagen is required if new product groups withdifferent D/TLD characteristics are delivered.It must be ensured, that all parts (D/TLD) which must be verified and allof the specified features that require verification, are considered asimportant parts/features. For the system audit, each feature has to bedocumented. During the system audit, sample parts for which thecompliance with the defined requirements must be proven by processand product audits should be selected for every characteristic thatrequires verification proof of the D/TLD parts that are to be delivered.These reference parts are selected from a list of ”parts that have to beverified for the VW Group”. The suppliers must always keep this list up-to-date. The extent of the random check during the product audit shouldbe defined according to the part and the features to be checked; i.e. asan example, a part is selected from the supply list, where all thecharacteristics that have to be verified are taken into account.


39

7.4 Evaluation of Individual Questions/ Audit Results

Every applicable question is evaluated in terms of a consistentcompliance, even when the process is secured.

Situation Evaluation

Requirements completely fulfilled yes

More than about 3/4 of the specified points have beeneffectively proven and there is no specific risk

mainly

Requirements are not or not adequately fulfilled no

All of the applicable questions must be complied with; the supplier mustresolve all of the deviations by implementing an improvement program. Asystem release for the D/TLD verification is possible if all of therequirements have essentially been fulfilled, and there is no special risk.

If deviations are identified, which directly influence the product quality(e.g. missing test unit), immediate measures are defined (e.g. externaltest/check), which guarantees that the product quality is immediatelysecured.

If the supplier is not in a position to fulfil the requirements, the receivingfactory/plant is informed. This supplier is then prohibited from supplyingparts - a procedure which is agreed upon with the responsiblepurchasing department of the Volkswagen Group.


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7.5 Audit Report / Improvement Program

The report includes the following documents and verification:

1. Cover sheet ”Quality audit, verification for D/TLD parts”, specifyingthe part selection, the D/TLD characteristics, results from the productaudit and the fulfilment of characteristics for which verification iscompulsory. Defined immediate actions are required in the event thatcustomer requirements are not complied with. The deadlines for animprovement program that might be required are set (completiondate of the entire action to be implemented).

2. List of requirements, verification audit for D/TLD parts with evaluation

3. Improvement program

An improvement program must be defined if deviations are identified to the questions in the list of requirements (the weaknesses/ measures must be specified, together with the date that theywill be resolved and the responsible personnel).

The identified weaknesses must be corrected by the agreed to date.

4. Overview(s) of the results of the product audit with the test results,including all the characteristics for that verification is compulsory.The D/TLD characteristics must be specially be identified.Volkswagen also checks and evaluates the systematic andconsistent verification procedure for self-audits by the supplier withinthe framework of process audits.


41

7.6 Identification Codes for Technical Documentation

The Volkswagen Group has two identification codes that have the samedegree of importance (D and TLD).

D-Identification Code:

The D identification code is used in technical documentation, such asdrawings, TL-VW specifications, etc., if dimensions, textual informationor section numbers are associated with legislation or internal assemblyspecifications. A D is entered in the basic text field (drawing header, “D-code” or “Safety Doc.” field) to identify the compulsory verification. Thedimensions or other D features in the associated documentation have abar above them, with small vertical demarcation lines as shown in thefollowing ( ).

TLD-Identification Code:

A D is not entered in the basic text field (drawing header) in the ”SafetyDoc.” field; instead, TLD is entered. The particular TLD No. is thenentered in the ”documentation” field. This includes the features that haveto be documented and information regarding any legislation. There is nobar located above features or regulations.

Only the main delivery specifications (TL) are listed in the TLD Volume.If a reference is made in this TL to another TL, compulsory verification isalso applicable to this TL.

8. Audit Documentation / Verification

42

8 Audit Documents / Verification

Once the potential analysis, the process/product audit or the quality auditregarding D/TLD parts in the individual product groups have beencompleted, the required actions are discussed with the supplier and thedeadlines for the documentation of an improvement program and therespective implementation are set.

The information gained from the assessment is summarised in an auditreport. The report must be signed by a representative of the supplier andby the auditor.

The total rating regarding the quality capability, the degrees of fulfilmentfor the evaluated quality management and process elements, processsteps, the number of faults for every fault category regarding the productaudit, as well as the actions with regard to the improvement program areto be documented in the audit report. The releases for the specialrequirements for D parts are separately provided if they are inspectedand for the most part fulfilled.

For problems detected in the audit which directly influence the partsquality and/ or for a C rating, immediate actions must be agreed uponwith the supplier which ensure the delivery quality according to customerrequirements.

The audit results and the audit report as well as the relevantimplementation status of the improvement program are made accessibleto all affected areas in the Volkswagen group.

The supplier is obliged to determine the corrective action of theimprovement program agreed to with the auditor, to complete it and thenpresent it to VW.

For this purpose, the improvement program must be completed withdetailed information on actions carried out/ intended. The individualimplementation dates and responsibilities must be handed in by theagreed date to the auditing department of the Volkswagen group.

The supplier is obliged to check the implementation of the improvementprogram in an internal audit and must inform the auditing department ofVolkswagen about the implementation.

List of requirements

43

List of requirements

• Potential analysis

• Process audit

• Verification audit (D/TLD-parts)

44

9. List of requirements for the potential analysis

45

1. Requirements for the component / compliance with importantcharacteristics

The qualification of the supplier for the specific requested productessentially depends on whether the requirements for this product, asdefined in the specifications (the technical documents) can be compliedwith. The ability to comply with the important characteristics can be seenfrom special processes and quality sequences with regard to productsfor competitors, if necessary.

The following must, for instance, be considered:

– Capability analyses (Cpk values)– Design and process FMEA– Reliability values– Required test, laboratory and measurement systems– Required know-how

2. Experience / references

The experience of the supplier with equivalent products and with thespecific requirements of the automotive industry is an important indicatorfor the qualification of the supplier. This includes the verification of aneffective QM system by a certificate according to VDA 6.1 (orcomparable). The qualification of the staff and their responsibility in thedevelopment and manufacturing processes are of particular importance.

Questions / subjects:

– Experience with equivalent parts

– Main percentage of the added value and influence on importantcharacteristics through the supplier’s manufacturing process

– Realisation of just-in-time concepts (Internally / Externally)– internally: integrated order control, JIT– externally: JIT, warehouse, direct delivery

– Effective and evaluated QM system– VDA 6.1 certificate– Third party audits– Self-audits, evaluation of process quality– VDA 6.3 self and third party audits– Other process audits


46

3. Process development options / project planning

The experience of the supplier with regard to the management ofprojects is of decisive significance for successful project handling. Theevaluation can be carried out, based on past projects that have alreadybeen completed, the standard process plans for the project managementof the supplier and the activities that have already been executed withinthe framework of the quotation for Volkswagen, such as, for instancefeasibility studies.

Questions / subjects

– Nomination of project supervisors and regulations of the interfaces

– Project stages with specified targets– Time schedules determined

– Capacities available– Qualification of personnel– Pre-material– Buildings– Systems, tools, test instruments– CAM– CAQ

– Compliance with the product-specific requirements– Customer requirements / legal requirements– Handling– Packaging– Design of workplace / test site– FMEA– Capability proofs for systems– Tools– Test instruments

– Communication facilities– Translation of documents– Data transfer– Data processing interfaces

– Securing of the above-mentioned points at sub-contractors– Project stages– Targets– Capacities– Product requirements – purchased parts– Communication


47

4. Q methods / Q techniques

Constant improvement of product quality according to the expectationsof the customer is necessary to ensure competitiveness.VOLKSWAGEN suppliers are significantly involved in this continuousimprovement process. The aptitude to be a VOLKSWAGEN supplierthus depends on the supplier’s innovative capacity and his abilityregarding systematic improvement.The application of quality methods and techniques is an importantrequirement in this regard. The technical conditions for component anddamage analyses must also be available.


– Preventive measures– Quality Function Deployment– Test planning, design of experiments– FMEA– Try-out– Fault tree analysis

– Tools to increase efficiency and quality– Continuous improvement process (CIP)– Lean production– Proposal system / Suggestion scheme– Quality committee

– Running quality improvement measures– Quality targets– Quality costs– Problem analyses

– Supplier’s test facilities (laboratory, measurement technology)– Receiving– Production– Customer care / customer satisfaction (service)


48

5. Pre-material / purchased parts

To ensure customer satisfaction, the supplier must not only be able tocontrol their own product. The supplier must also evaluate and qualifythe processes of the sub-contractors according to their responsibility forthe product. The security of supply for the customers and the reliabletraceability of the product can only be ensured if the processes at thesub-contractors are also considered.


– Storage– Integrated storage system– Storage condition that safeguards against any damage– First-in first-out– Storage periods– Order, cleanliness– Identification

– Capability proofs / process optimisation– Cmk, Cpk– Continuous improvement

– Supplier evaluation– Quality capability– Q-performance– Logistical performance


49

6. Customer care / customer satisfaction (service)

Suitable instruments must be used to secure the as-delivered quality.These instruments include, for instance, monitoring of problem resolutionand of initiated corrective action, securing customer supply throughdefined emergency and failure strategies, monitoring of the deliveryquality and of logistical requirements through product inspections andshipping audits.


– Continuous contacts with customers– Development coordination at the customer– Communication facilities– Command of foreign languages– Knowledge regarding the use of the product

– Emergency and failure strategy– Interruptions in the manufacture and during transport– Shipping problems– PPS failures– Failures in the data transfer

– Execution of product audits, supplier’s test facilities– Even for purchased parts– Sub-groups– First off samples– Packaging– Identification

– Execution of reliability tests

– Problem resolution– Failure analyses– Determination of causes– Improvement program– Competent contact persons for problems that occur

– Shipping logistics– Container control and maintenance– Shipping documents– Labels on parts / containers


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7 Production

The ratings with regard to the individual questions of the “7. Production”element represent a summary of all the process stages that are to beconsidered. One single weakness in one single process stage that has,however, a significant influence on the entire product will already resultin a considerably negative evaluation of the respective question/subjectfield.

7.1 Process stages (applied process stages)

The process stages that are relevant to the potential product areevaluated. Audits and action to secure external processing stages mightalso be considered, where necessary.If the manufacture of the potential VW products is to be produced onexisting systems, these must be used for the evaluation. Comparableprocesses, where available, should be evaluated if the supplier plans topurchase new systems. The auditor will additionally inspect thedocuments, such as timing plans or specifications, for the plannedoperating resources, where necessary.


– Suitable machines / systems– Capability studies– Automatic controls– Controls– Securing of parameters– Maintenance condition– Capacity

– Flexibility of the manufacturing / test systems

– Defective units / corrections

– Ergonomic design of the workplaces

– Staff qualification / supplier’s responsibility / allocation of tasks


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7.2 Process specifications / quality

Defined process control is a pre-condition to ensure a constantly highquality of the product. The determination and the compliance with thespecifications for the parameters, the methods, the monitoring and thecontrol of the product characteristics in the processes are considered forthe evaluation.


– Manufacturing and test specifications, reference parts

– Manufacture release

– SPC / fault summary cards / original value cards with identification oftendencies

– Logbook

7.3 Material flow

Possible quality losses of parts caused by internal transport areevaluated. In this regard, parts control to safeguard against incorrectassembly or the use of not O.K. parts as well as the impairment ofquality caused by parts handling or unsuitable means of transport are ofparticular importance.


– Identification / transfer of O. K. parts

– Supply of components– Just in Time– Kanban– Short distances, transport without interruptions (direct flow)

– Quarantine parts store

– Parts handling– Suitable transport facilities / containers– Packaging– Overfilling

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10. List of requirements for the process audit

53

Structure

A Product creation process


productdevelopment planning implementation


- product development/ design (planning and implementation)- process development (planning and implementation)

B Series production


coreprocesses

sub-suppliers

service


- suppliers/ purchased parts- production (each process stage)- customer care/customer satisfaction (service)



10. List of requirements for the process audit

54

Structure of the list of questions

For the process element the general requirements are described in theintroduction and special key areas are highlighted and explained.

Requirements/ Explanations

In the section Requirements/ Explanations, the requirements for theprocess and procedure phases are defined with questions. Individualrequirements are additionally named if necessary and explanations andinstructions given.

These supplements must be understood as examples and not ascomplete requirements. They must be compared to the individual productand process and if necessary supplemented. For particular processesfurther requirements can be of decisive importance.

Note:The auditor assesses each process step based on the requirements ineach process element. For auditing the process steps in productioneach process stage, which is not included in a continuous productionline, enters the total assessment of the production as a stage requiringindividual assessment.

10. List of requirements for the process audit Part A

55

A Product creation process


productdevelopment planning implementation


The product and process development in the product creation process isorientated towards the four steps of the cycle of product quality planning(plan, do, analyse, improve). An interdisciplinary team approach andsingle-minded actions in all steps of the product development areprerequisites for the implementation of all requirements for the start ofthe series production of a product.

At the beginning of the product creation process, all customerrequirements, market development tendencies, standards and laws mustbe known and be properly incorporated in the core process and thesupporting processes with consideration of changes during the productdevelopment.

The adherence to defined phases and set objectives of the productcreation process must be verified by reviews at defined intervals.Deviations and changed requirements often lead to changed objectives.

The correct and proper use of risk analyses and analysis methods in theproduct creation process provides timely information on deviations andnecessary corrective actions. They represent a considerable factor oncost optimisation and cost limitation.

All employees involved in the project must demonstrate a high level ofqualification and performance. Their single-minded actions in all steps ofthe product development is a prerequisite for the satisfaction of allcustomer requirements and a high quality start-up of the seriesproduction.


N.B. : VDA documents Volume 1, 2, 4.1 and 4.2, 4.3 apply equally and should be considered.


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1 Product Development (Design)

1.1 Planning

As early as in the offer stage, planning specifications for a new productmust be defined on the basis of customer requirements, applicable lawsand internal company key requirements. After order acceptance, theplanning specifications must be detailed and incorporated in a productdevelopment plan.All necessary tasks must be defined in the product development planincluding achievable objectives and deadlines.The specific product requirements often exceed the customerrequirements. They must be analysed and specified in detail by thesupplier. A continuous re-examination of all requirements during theplanning phase can lead to changes.

1.1.1 Are the customer requirements available?

1.1.2 Is a product development plan available and are the setobjectives adhered to?

1.1.3 Are all necessary capacities planned for the productdevelopment?

1.1.4 Are the product specifications and requirements determinedand considered?

1.1.5 Has feasibility been determined on the basis of all current requirements?

1.1.6 Are the necessary personnel and technical prerequisites availableor planned for completion of the project?

1.1.7 Have the respective planning activities been established andverified at the sub-contractors?


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1.1.1 Are the customer requirements available?

Requirements/ Explanation

The following must, for example, be considered:

- drawings, standards, specifications, list of customer requirements- logistic concepts- technical supply conditions, inspection and test instructions- quality agreements, agreements on objectives- important product and process characteristics- purchase order documents with item lists and delivery dates- laws/ directives- waste disposal plans/ environmental aspects- transfer of important information to sub-contractors

1.1.2 Is a product development plan available and are the setobjectives adhered to?

Requirements / Explanations

The product development plan is a key component of the project planand correlates with the process development plan. All activities up to andincluding the start of series production including those of the sub-contractors must be defined. The set objectives must be derived from therequirements and must adhere to the defined project steps.


- customer requirements- costs- deadlines: planning release, procurement release, change control,

prototypes, pre-series, start of series production- capacity study- definition and monitoring of objectives- regular information to the company management- Simultaneous Engineering Teams (SET)- development plans of sub-contractors must be considered, where

necessary


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1.1.3 Are all necessary capacities planned for the productdevelopment?


The necessary capacities must be determined and considered as earlyas in the offer phase. After order issue this data must be specified moreprecisely. If necessary an update of the capacity study must beundertaken for changed requirements. The necessary resources must beplanned and made available.


- customer requirements- qualified personnel- downtimes- throughput times- buildings, premises (for test build and prototype construction)- tooling/ equipment- inspection, test and measuring equipment, laboratory equipment- CAD, CAM, CAE

1.1.4 Are the product specifications and requirements determinedand considered?


The product requirements should be established through interdisciplinaryteamwork and benchmarking using such methods as, for example, QFDand DOE. Previous experience and future oriented expectations must beincorporated in the investigation. The product requirements mustcorrespond to the market demands and meet the customer expectations.The product must be competitive.


- customer requirements- corporate objectives- simultaneous engineering- robust design / secure process- regular customer / sub-contractor discussions- important characteristics, legal requirements- functional dimensions- installation dimensions- material


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1.1.5 Has feasibility been determined on the basis of all current requirements?


The known requirements must be checked for feasibility throughinterdisciplinary teamwork with focus on the customer requirements.


- design, construction- quality- process equipment, capacity- special characteristics- corporate objectives- regulations, standards, laws- environmental compatibility- deadlines, time frames, (deadline planning of customer/sub-

contractor to be considered)

1.1.6 Are the necessary personnel and technical prerequisitesavailable or planned for completion of the project?


The personnel qualification and the required resources must beestablished before project start and defined in the project plan.

The following are, for example, to be considered:

- project management, project planning team, responsibilities(involvement of sub-contractors)

- qualified personnel- technical communication (data transfer)- information flow from and to the customer during planning

(regular meetings, conferences)- tooling and facilities- inspection, test and measuring equipment, laboratory equipment- CAD, CAM ,CAE


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1.1.7 Have the respective planning activities been established andverified at the sub-contractors?

Comprehensive project management must also be established forpurchased parts and purchased services. The activities of the supplierand the respective sub-contractors must be coordinated with each other.The project management of the supplier must consider the tasks of thesub-contractors. Responsibilities must be clearly defined. The suppliermust have evaluated the capabilities of the sub-contractors regardingproject processing before the project is started. With the start of theproject, the suppliers will convince themselves that the sub-contractorcarries out the planning activities in a comprehensive manner. Theupdating of the planning must be checked during the project at regularintervals.


- Audit reports- Records of visits- Proof documents, release certificates, project reports of the sub-

contractor- Minutes of coordination meetings, workshops, simultaneous

engineering teams- Milestone reviews, reports of the supplier at the sub-contractor


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1.2 Implementation

During the implementation phase of the product development, all thetasks that were defined in the product planning phase must be carriedout. It is the decisive task of the project supervisor/project managementto involve all the interface departments in all the tasks at an early stageand to inform the management and, if necessary, also the customer ofany problems that might occur. Close cooperation and coordination withthe sub-contractors is also required. The sub-contractors can beinvolved in the “simultaneous engineering teams”.During the implementation reviews must be undertaken at definedintervals. In case of not achieving the set targets, corrective actions mustbe defined, implemented and followed up to ensure their effectiveness.

1.2.1 Has the design FMEA been performed and have improvementactions been defined?

1.2.2 Has the design FMEA been updated during the project andhave the defined actions been implemented?

1.2.3 Has a quality management plan been established?

1.2.4 Are all the necessary releases planned and/ verificationavailable?

1.2.5 Are the required capacities available?

1.2.6 Have the respective activities at sub-contractors been inspectedand have proofs been submitted?


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1.2.1 Has the design FMEA been performed and have theimprovement actions been defined?


The product risks shall be clarified and continually reduced by suitableactions through an interdisciplinary team approach including customersand suppliers. For complex parts or complete function systems, the useof a system FMEA is useful (see VDA volume 4, part 1 and 2). Othercomparable analysis techniques shall be agreed with the customer.


- list of customer requirements (specifications)- function, safety, reliability, maintainability, important

characteristics- environmental aspects- involvement of all affected areas- test resultsproduct specific actions resulting from the process FMEA

(the actions at sub-contractors must also be considered)

1.2.2 Has the design FMEA been updated during the project andhave the defined actions been implemented?


The person responsible for the project must assess product and processchanges. In accordance with the FMEA team a new analysis should beinitiated if necessary. Updating is also necessary after implementation ofactions (design review).


- customer requirements- important parameters and characteristics, legal requirements- function, installation dimensions- material- environmental aspects- transportation (Internal / External)- product specific actions resulting from the process FMEA

(the actions at sub-contractors must also be considered)


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1.2.3 Has a quality management plan been established?


The quality management plan must contain components, modules,subassemblies, parts and materials and include the productionprocesses of the prototype phase and the pre-series phase for therespective product. The quality management plan is a living documentand must be updated for new and modified products. A qualitymanagement plan must normally be drawn up for the following phases:

- Prototype Phase

A description of the dimensional checks and the material and functionalinspections which must be carried out during prototype construction (ifrequired by the customer).

- Pre-Series Phase (interface to the process development)

A description of the dimensional checks and the material and functionalinspections which must be carried out after prototype construction andbefore series production.

It must provide details of, among others:

- definition and identification of significant characteristics- preparation of the inspection sequence plan (control plan)- supply of facilities and equipment- timely proactive supply of inspection, measuring and test

equipment- inspections at functional locations of the product implementation

and during the product process- clarification of acceptance criteria- release activities for purchased parts


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1.2.4 Are all the necessary releases planned and/ verificationavailable?


The releases and verification of suitability are to be verified for allindividual parts, modules and supplied parts.


- product testing (e.g. installation tests, functional tests, life test,environmental simulation)

- status of prototype parts- pre-series sample- production and inspection equipment, inspection and test

equipment for pilot built- release/test status of components of the sub-contractors



The necessary capacities are to be derived from the offer calculation andthe advanced planning. They must be available or planned and madeavailable at the defined time. The required resources must be included inthe project.


- customer requirements- qualified personnel- downtimes- throughput times- buildings, premises- pilot build- prototype build- tooling, facilities- inspection, measuring and test equipment, laboratory equipment- planning (deadline/scope) for purchased services


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1.2.6 Have the respective activities at sub-contractors beeninspected and has the relevant evidence been submitted?

The supplier must convince himself of the progress of the projectrealisation at his sub-contractors at regular intervals. Suitable milestonesand checklists must be established in the project management of thesupplier to ensure that the activities of the sub-contractors are monitoredso that deviations can be determined at an early stage and suitablecounter-action can be initiated.

The following should, for instance, be considered:

- Audit reports- Records of visits- Proof documents, release certificates, project reports of the sub-

contractor- Minutes of the coordination meetings, workshops, simultaneous

engineering teams- Milestone inspections, reports of the supplier at the sub-contractor


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2 Process Development

2.1 Planning

As early as in the offer phase, basic planning for the productmanufacturing must be undertaken based on customer and additionalrequirements which must be detailed after order acceptance and definedin a process development plan. Technical and personnel capacitiesalready available must be considered and expansions planned ahead oftime.In the actualisation of all tasks, set objectives and deadlines for allinterfaced areas must be incorporated by an interdisciplinary teamapproach. All tasks and responsibilities must be clearly defined.During the process planning and implementation phase changes canbecome necessary due to changed customer requirements or speciallegal stipulations. This could also necessitate a re-examination of theplanning approach.

2.1.1 Are the product requirements available?

2.1.2 Is a process development plan available and are the setobjectives adhered to?

2.1.3 Are all capacity requirements planned for seriesproduction?

2.1.4 Have the process specifications and requirements beendetermined and considered?

2.1.5 Are the necessary personnel and technical pre-requisitesavailable or planned for completion of the project?

2.1.6 Has the Process FMEA been prepared and are the improvementactions defined?

2.1.7 Have the respective planning activities been established andproven at the sub-contractor as well?


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2.1.1 Are the product requirements available?


All product requirements must be known and incorporated in theplanning.

The following must, for example, be considered:- customer requirements- laws, standards, regulations- logistics concepts- technical terms of deliveryquality/ target agreements- important characteristics- materials- waste disposal, environmental protection- requirements that are important to the sub-contractors must be

communicated to them

2.1.2 Is a process development plan available and are the setobjectives adhered to?


The process development plan is a key component of the project planand correlates with the product development plan. All activities up to andincluding the start of series production must be defined. The setobjectives must be derived from the requirements and must adhere tothe defined project steps.

To be considered are:

- customer requirements- costs- milestones: planning release, procurement release, prototypes,

pre-series, start of series production- capacity study- availability of facilities, inspection, measuring and test equipment,

software, packaging- safeguarding concept for changes (start-up problems etc.)- logistic and delivery concept- definition and monitoring of objectives- regular information to the company management- development plans of sub-contractors must be considered, where necessary


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2.1.3 Are all capacity requirements planned for series production?


The necessary capacities must be determined and considered as earlyas in the offer phase. After order issue that data must be specified moreprecisely. If necessary an update of the capacity study must beundertaken for changed requirements. The necessary resources must beplanned and made available.


- customer requirements- availability of purchased material- qualified personnel- absence times, downtimes- throughput times, units per facility or equipment- buildings, premises- production equipment, tooling, facilities, inspection, measuring

and test equipment, tooling aids, laboratory equipment- means of transportation, containers, storage- CAM, CAQ

2.1.4 Have the process specifications and requirements beendetermined and considered?

Requirements/ Explanations

The process requirements should be established throughinterdisciplinary teams using such methods as, for example, QFD andDOE. Previous experience and future-oriented expectations must beincorporated in the investigation.


- customer requirements- legal requirements- capability verification- suitability of production equipment, tools, test and inspection

equipment- design of work places and inspection sites- handling, packaging, storage, identification


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2.1.5 Are the necessary personnel and technical pre-requisitesavailable or planned for completion of the project?


Personnel qualification and resources must be established before projectstart and be defined in the project plan.


- project management, project planning team, responsibilities- qualified personnel- production equipment, tooling, facilities, inspection, measuring

and test equipment, tooling aids, laboratory equipment- technical communication (data transfer)- information flow from and to the customer during planning

(regular meetings, conferences)- CAM, CAQ

2.1.6 Has the Process FMEA been prepared and are the improvement actions defined?


The product risks should be clarified and continually reduced by suitableactions through an interdisciplinary team approach including customersand suppliers. For complex parts or complete functional systems, the useof a system FMEA is useful (see VDA volume 4, part 1 and 2).


- all manufacturing steps, also for sub-contractors- customer requirements, function- important parameters and characteristics- traceability, environmental aspects- transportation (internal/external)- incorporation of all affected areas- product specific actions from the design FMEA


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2.1.7 Have the respective planning activities been established andproven at the sub-contractor as well?

A comprehensive project management must also be established forpurchased parts and purchased services. The activities of the supplierand the respective sub-contractors must be coordinated with each other.The project management of the supplier must consider the tasks of thesub-contractors. Responsibilities must be clearly defined. The suppliermust have already evaluated the capabilities of the sub-contractorsregarding project processing before the project is started. With the startof the project, the supplier will convince himself that the sub-contractorcarries out the planning activities in a comprehensive manner. Theupdate of the planning activities must be checked during the project atregular intervals.


- audit reports- records of visits- proof documents, release certificates, project reports of the sub-

contractor- minutes of coordination meetings, workshops, simultaneous

engineering teams- milestone inspections, reports of the supplier at the sub-contractor


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2.2 Implementation

During the implementation phase of the process development all tasksdefined in the process planning phase must be carried out. Possiblechanges must be recognised and taken into consideration. For thepurpose of project management and control a project leader must involveall interfacing areas as early as possible. The project leader must reportproblems as quickly as possible to the management and, if necessary, tothe customer.In the implementation phase reviews have to be undertaken at definedintervals. In case of not achieving the set targets, corrective actions mustbe defined, implemented and followed up to monitor their effectiveness.

2.2.1 Has the process FMEA been updated in case of project changesand have the defined actions been implemented?

2.2.2 Has a Quality Management Plan been established?

2.2.3 Are all necessary releases planned and qualification recordsavailable?

2.2.4 Has a pre-production run been carried out under the conditionsof series production for the release of series production?

2.2.5 Are the production and inspection documents available andcomplete?


2.2.7 Have the respective activities at the sub-contractor been inspectedand has the relevant evidence been submitted?


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2.2.1 Has the process FMEA been updated in case of projectchanges and have the defined actions been implemented?


The person responsible for the project must assess product and processchanges. In accordance with the FMEA team a new analysis should beinitiated if necessary. Updating is also necessary after theimplementation of actions.


- customer requirements- all production steps, also of sub-contractors- important parameters and characteristics, legal requirements- installation dimensions- material- traceability, environmental aspects- transportation (internal/ external)- process relevant actions from the design FMEA

2.2.2 Has a Quality Management Plan been established?


The quality management plan must contain components, modules,subassemblies, parts and materials and include the productionprocesses for the respective product. The quality management plan is aliving document and must be updated for new/changedprocesses/products.

A quality management plan must normally be drawn up for the followingphases:

- Pre-series phase (Interface to product development)

A description of the dimensional checks and the material and functionalinspections which must be carried out before series production.

- Series production phase

A comprehensive documentation of the product and processcharacteristics, the process control measures, the inspections and themeasurement systems that must be considered during seriesproduction.


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It must provide details of (among others):

- definition and identification of significant characteristics- preparation of the inspection sequence plan (also interfaces to

sub-contractors)- supply of facilities and equipment- timely proactive supply of inspection, test and measuring

equipment- inspections at appropriate production stages- clarification of acceptance criteria

2.2.3 Are all necessary releases planned and qualification recordsavailable?


The releases and verification of suitability are to be verified for allindividual parts, modules, subassemblies, supplied parts, productionequipment, and inspection, test and measuring equipment.


- product testing (e.g. installation tests, functional tests,life tests, environmental simulation)

- pre-series and 0-series parts- initial samples- capability records for important product and process

characteristics- logistic concepts (e.g. suitability of packaging through test

distribution and alternatives for special packaging)- tools, machines, equipment, test and inspection equipment- proofs regarding purchased parts / sub-contractors


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2.2.4 Has a pre-production run been carried out under theconditions of series production for the release of seriesproduction?


A pre-production run is necessary to assess all production factors andinfluences in time and if necessary, to correct them. Productionbottlenecks and quality losses should be avoided during seriesproduction.


- customer requirements- definition of minimum quantities- process capability study, capability of measuring instruments- measurement system capability- readiness for series production of facilities and production

equipment (measurement records)- initial sample inspection- handling, packaging, identification, storage- personnel qualification- work and inspection instructions- layout of work places and inspection sites- acceptance of pre-production at sub-contractors

2.2.5 Are the production and inspection documents available and complete?


Process parameters and inspection characteristics must always bespecified with tolerances. The production and inspection documentsmust always be available at the work place and inspection siterespectively. In case of any deviations, corrective action must beintroduced and documented.

Details are, for example:

- process parameters (e.g., pressures, temperatures, times,speeds)

- data for machines, tools, tooling aids- inspection specifications (important characteristics, inspection

and test equipment, inspection and test methods, inspectionfrequencies)

- control limits of statistical process control charts- machine and process capability records- operating instructions- work instructions, inspection instructions- information on current deviations


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The necessary capacities are to be derived from the quotation and thecurrent process development conditions.


- customer requirements- availability of purchased material- qualified personnel- absenteeism, downtimes- throughput times, units per production equipment- buildings, premises- production equipment, tooling, facilities, inspection, test and

measuring equipment, tooling aids, laboratory equipment- means of transportation, containers, storage

2.2.7 Have the respective activities at the sub-contractors beeninspected and has the relevant proofs been submitted?

The supplier must convince himself of the progress of the projectrealisation at his sub-contractors at regular intervals. Suitablemilestones and checklists must be established in the projectmanagement of the supplier to ensure that the activities of the sub-contractors are monitored so that deviations can be determined at anearly stage and suitable counter-action can be initiated.The evaluation of the actual status of the operating resources (systems,tools, gauges) is essential for assessing the progress of the project.

The following should, for instance, be considered:

- audit reports, records of visits- status evaluation of the operating resources, tool acceptances- proof documents, release certificates, project reports of the sub-

contractor- minutes of the coordination meetings, workshops, simultaneous

engineering teams- milestone reviews, reports of the supplier at the sub-contractor

10. List of requirements for the process audit Part B

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B Series production


coreprocesses

sub-contractors

service


The prerequisite of a series production with satisfactory processcapabilities is the strict implementation of all required actions resultingfrom the product development process. Considering the customerrequirements, the processes at the sub-contractors, in their ownproduction, product delivery and utilisation must be evaluated andimproved on a continuous basis.

Customer oriented actions in all processes is the prerequisite forcustomer satisfaction regarding quality, price, service and innovation. It isthe responsibility of the management to provide for the necessarypreconditions in all processes.

The quality performance is determined by man, machine, material,method and environment, and by lean production processes, low stocklevels and highly qualified employees. The responsibility of employeesmust be characterised by independent recognition of product andprocess nonconformities. Improvement actions must be initiated andimplemented under their own initiative.

The processes and process steps must be continually evaluated usingsuitable methods. Nonconformities must be analysed and appropriatecorrective actions carried out to maintain and improve the processcapability and to meet all requirements relating to zero defect demandsof the customer.

The supplier is obliged to observe his products after production in orderto maintain and improve customer satisfaction. Active cooperation withthe customer, and early recognition of concerns and nonconformities arethe basis for a long term trusting relationship.



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1 Sub-contractors / Purchased Material

Reduced supply times to the customer (e.g. just in time) and reducingthe throughput times influence the procurement time and require specialactivities in the individual process steps. A smooth system that is free ofdefects is required in this regard as it is usually not possible tocompensate for failures or delivered defects by using alternative parts ormaterials. If only a small or no temporary stock volume is available,quantitative or logistical interruptions cause direct productioninterruptions.

The supplier and his sub-contractors have the responsibility and the dutyto secure the processes and process sequences and to ensure theprocess capability with regard to all the customer-relevant and importantcharacteristics for the respective products / materials. The supplier’sprocess and product audits after the risk analyses are required in thisregard. The quality capability of sub-contractors can also be proven by a1st or 3rd party audits. The effectiveness of corrective action and ofcontinuous improvement must be proven. If modules are delivered, thesupplier is fully responsible for the quality of all the individualcomponents.

1.1 Are only approved and qualified sub-contractors used?

1.2 Is the quality of purchased parts assured?

1.3 Is the quality performance evaluated and are improvement actionsinitiated in case of nonconformities to the requirements?

1.4 Are continuous improvement activities and objectives for productsand processes agreed with the sub-contractors and implemented?

1.5 Are the necessary releases available for all supplied seriesproducts and are the required improvement actions implemented?

1.6 Are the agreements relating to products supplied by the customeradhered to?

1.7 Are the stock levels of purchased material in line with theproduction requirements?

1.8 Are purchased materials and internal surpluses delivered andstored appropriately

1.9 Is the staff qualified for their individual tasks?


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1.1 Are only approved and qualified sub-contractors used?


Prior to the acceptance of sub-contractors, an assessment of their qualitymanagement system (certification, auditing) must be available. Beforethe start of series production, it must be ensured that only qualified sub-contractors are used. Experience from analysing the quality performanceof the sub-contractors must be considered.


- discussions with the sub-contractors, regular sub-contractor follow-up- assessment of the quality capability, e.g. audit results and certificates- assessment of the quality performance (quality, cost, service)- selection according to ranking of the quality performance (quality/costs/service)- special release for D/TLD sub-contractors

1.2 Is the quality of the purchased parts assured?



- sufficient inspection equipment (laboratory and measurement equipment).

- internal and external inspections- gauges and fixtures supplied by the supplier to the sub-contractors- drawings, order details, specifications- quality assurance agreements- agreements on inspection and test methods, inspection and test

sequences, inspection and test frequencies- analysis of key nonconformities- acceptable capability documentation (in particular for critical

characteristics of products and processes)


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1.3 Is the quality performance evaluated and are improvementactions initiated in case of nonconformities to the requirements?


The capabilities and performance of sub-contractors should be checkedat defined time intervals. The results must be analysed and recorded, bypart number, in a list (sub-contractors list). In case of negative results,qualification programs must be defined and their implementation must beverified. If modules are delivered, the supplier is fully responsible for thequality supervision regarding all the individual components.


- minutes of quality meetings- agreement and follow-up of improvement programs- inspection, test and measurement records of improved parts- analysis of key nonconformities and problem subcontractors- evaluation of the quality performance (quality / costs / service)

1.4 Are continuous improvement activities and objectives forproducts and processes agreed with the sub-contractors andimplemented?


The task is of particular significance to the delivery of modules. Thesupplier is fully responsible for a continuous improvement of the sub-contractor.


- workshops (interdisciplinary work groups)- definition of measurable indicators for quality, cost optimisation

and service, e.g.° reduction of inspection time with simultaneous increase in

process capability.° reduction of rejects (internal/ external)° reduction of excess WIP, stock etc.° increase in customer satisfaction


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1.5 Are the necessary releases available for all supplied seriesproducts and are the required improvement actionsimplemented?


Prior to the series production of new or changed products and processesa release must be approved for all products of sub-contractors. Ifmodules are delivered, the supplier is fully responsible for the qualitysupervision of all the individual components.


- customer information (specifications/standards/test specifications, etc.)- design and test releases- initial sample reports according to VDA- capability records for important characteristics- observation of safety data sheets, EU/US standards- analysis of reliability- re-qualification test reports

1.6 Are the agreements relating to products supplied by thecustomer adhered to?


The requirements for customer-supplied products can be taken from thequality agreements and must be strictly implemented.

Customer-supplied products can be

- services- tools, test and inspection equipment- packaging- products


- control, verification, storage, transportation, maintenance of qualityand characteristics (expiration date)

- information flow for deficiencies or losses.- Q documentation (Q level, Q history)


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1.7 Are the stock levels of purchased material in line with theproduction requirements?


The necessary stock levels must already be determined and consideredin the process planning phase. For changed requirements the analysis ofthe necessary stock levels must be updated if necessary.


- customer requirements- KANBAN, just in time.- storage costs- contingency strategy for purchased material bottlenecks- FIFO (first in first out)

1.8 Are purchased materials and internal surpluses deliveredand stored appropriately


Delivered pre-materials and returned residual quantities from theproduction must be stored according to the release status and in amanner to safeguard against any damage or mix-up. Suspect/defectiveproducts must be transferred to a quarantine storage area.


- packaging- storage administration system- FIFO (first in first out) / batch-related use- order and cleanliness (housekeeping)- climatic conditions- protection from damage, dirt and corrosion- identification (traceability, inspection status, job sequence, use

status)- prevention of mix ups- quarantine storage (arranged and used)


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1.9 Is the staff qualified for their individual tasks?


The staff that is responsible for the following activities must, for example,be considered:

- selection, assessment and qualification of sub-contractors- product inspection- storage and transportation- logistics

Knowledge must be available of e.g.:

- product, specifications, special requirements- special knowledge with regard to the product characteristics and

the manufacturing sequences of the individual parts of modules- standards, laws- packaging- processing- assessment methods (e.g. audits, statistics)- quality techniques (e.g. 8D method, cause and effect diagram)- foreign languages


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2 Production (each process stage)

In the individual process stages for the manufacture of a product, theplanned and implemented technical and personnel procedures andprocess sequences must be maintained, monitored and continuallyimproved under consideration of economic aspects. Key focus areas ofthis element are, employee satisfaction, process capabilities, inspection,test and measuring equipment and their improvement, as well as specifictransportation and storage conditions for the product.

The basis of all the activities are the customer requirements for eachproduct and the related processes. All the changes that areimplemented until the production of the product is stopped must beintegrated. All changes must be recognised early and be incorporated inthe individual processes.The customer requirement for zero defects must be present in allprocess steps and the management of the company must provide thenecessary prerequisites.

The relationship between customer and supplier must also play animportant role in all internal processes. The internal customer / supplierrelationship must be characterised by quality circles and teamwork. Thepersonnel involved in the respective process stage must be givenspecific individual responsibility.

All changes in the manufacture of a product must be relayed to thecustomer who decides to what extent additional qualification actions ornew releases are necessary (see also VDA booklet volume 2).


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2.1 Personnel, Qualification

It is the responsibility of management to select employees according tothe requirements of their job, to maintain their qualification, and todevelop them for further jobs with additional requirements. Thequalification of the employees for their relevant tasks in product andprocess must be traceable.The employees must know the customer requirements and qualityobjectives. The tasks assigned to them must visibly demonstrateindividual responsibility for quality.Based on a capacity analysis, sufficiently qualified personnel must beselected and used for all processes. Necessary replacement personnelmust be determined for the individual processes. Here too, qualifiedpersonnel must be available.

2.1.1 Are responsibilities and authority assigned to the personnel whocontrol the product and process quality?

2.1.2 Are responsibilities and authority assigned to personnel withregard to the production equipment and the productionenvironment?

2.1.3 Are the employees qualified to complete the defined tasks and istheir qualification maintained?

2.1.4 Does a personnel plan exist, which includes replacement guidelines?

2.1.5 Is there a system for employee motivation and is it used effectively?


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2.1.1 Are responsibilities and authority assigned to the personnelwho control the product and process quality?



- initiation of improvement programs- worker self-inspection- process release (equipment release, initial unit inspection/ final

unit inspection)- process control (interpretation of control charts)- quarantine authority

2.1.2 Are responsibilities and authority assigned to personnel withregard to the production equipment and the productionenvironment?


The following must, for example, be considered:- order and cleanliness (housekeeping)- performance or initiation of repairs and maintenance,

total productive maintenance (predictive/preventive)- availability of parts, storage- setting up and calibration of inspection, test and

measurement equipment

2.1.3 Are the employees qualified to complete the defined tasksand is their qualification maintained?


The following must, for example, be considered:- records of induction training, training and qualification regarding

the process- knowledge of the product and possible / occurred product non-

conformance- instruction in occupational health and safety regulations, and

environmental aspects- instruction in handling components requiring documentation- qualification records ( e.g. welding certificate, eye test, drivers

license for factory vehicles)


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2.1.4 Does a personnel plan exist, which includes replacement guidelines?


Personnel planning must consider absences (sick leave, holiday,vacation, training). It must be ensured that the replacement personnelhas the necessary qualification.


- shift plan (contract related)- qualification record (qualification matrix)- work analysis, time studies

2.1.5 Is there a system for employee motivation and is it usedeffectively?


The willingness to perform better and quality awareness must bepromoted through targeted information.


- quality information (target to actual values)- improvement suggestions- special voluntary activities (additional training, quality circles)- low absenteeism levels- contribution to quality improvement- self assessment

Note: This question relates also question 2.4.6


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2.2 Machinery / equipment

The production equipment must be capable of fulfilling the qualityrequirements for the product. The required process capability must beachieved and maintained. Inspection, test and measuring equipmentmust equally meet these requirements.When restarting production, special requirements must be adhered to.Appropriate work and inspection stations must be established. Bothproduct and process must obtain release before start of production.Quality and process data from the previous production run must beknown. All defined improvement actions must be implemented.

2.2.1 Does the available production equipment and tooling ensure thatthe quality requirements for the product are met?

2.2.2 Can the quality requirements be effectively monitored with themeasurement and inspection equipment used?

2.2.3 Are the work and test stations laid out according to the processrequirements?

2.2.4 Are the relevant details fully completed and adhered to in theproduction and inspection documents?

2.2.5 Is the appropriate equipment and tooling available to supportproduct changeover?

2.2.6 Is a release provided for start of series production and are setup data and deviations recorded?


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2.2.1 Does the available production equipment and tooling ensurethat the quality requirements for the product are met?


The process capability of selected important product/processcharacteristics must be determined and continuously be improved. Cmk /Ppk values of at least 1.67 must be reached for the short-term processcapability MCS and the provisional process capability PCS. Theminimum requirement for the long-term process capability Cpk is 1.33with continuous improvement.


- machine and process capability verification for important characteristics and process parameters

- forced control, control of important parameters- warning mechanism to detect deviations from limiting

specifications (e.g., warning lights, alarms, process shut downs)- load and unload fixtures- service and maintenance status of tools, equipment and

machinery (including planned maintenance)

2.2.2 Can the quality requirements be effectively monitored withthe measurement and inspection equipment used?



- reliability, functional, and corrosion resistant tests- measuring accuracy, measurement system capability- data acquisition and potential for data evaluation- calibration records for inspection, test and measuring equipment


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2.2.3 Are the work and test stations laid out according to theprocess requirements?


The working environment (also for rework) must be coordinated with thework content and the products in order to prevent soiling, damages, mixup and misinterpretation.


- ergonomics- lighting- order and cleanliness (housekeeping)- environmental protection- working environment, handling of parts and components- occupational health and safety regulations

2.2.4 Are the relevant details fully completed and adhered to inthe production and inspection documents?


Process parameters and inspection, test and measuring characteristicsmust always be specified with tolerances. The production and inspectiondocuments must always be available at the work place and inspectionstation respectively. Nonconformities and corrective actions must bedocumented.


- process parameters (e.g., pressures, temperatures, time, speed)- data regarding machines / tools / auxiliary equipment- inspection and test specifications (important characteristics, test

and inspection equipment, methods, and frequencies)- control limits of control charts- machine and process capability verification- operating instructions- work instructions- inspection and test instructions- information regarding the latest failure analysis


90

2.2.5 Is the appropriate equipment and tooling available tosupport product changeover?



- set-up plans- set up aids, reference aids- flexible tool change equipment- boundary / reference samples

2.2.6 Is a release provided for start of series production and areset up data and deviations recorded?


"Release for series production" is the order related release for the initialstart of production as well as for a production restart after interruption.The release is necessary for product and process and must be providedby authorised personnel in writing on the basis of defined acceptancecriteria. All known problems from the product and process planningphase, and from previous series production must be eliminated. Therelease inspections must be performed according to clear inspectioninstructions in order to ensure reproducibility. A check list is useful forthis purpose.If production is continued, without the required inspection, the productsmust remain quarantined until the required inspection has beenconducted and the products are found to be acceptable. A release is alsorequired for products that have been reworked.


- new or changed product- stoppage of the equipment, process interruption- repair, tooling change- material change (e.g., batch change)- changed production parameters- first off inspection with documentation- relevancy of parameter data- order and cleanliness of the work site- packaging- release and change status of tooling, and inspection, test and

measuring equipment


91

2.3 Transportation / Parts Handling/ Storage/ Packaging

Production steps must continually be coordinated with each other, withonly the customers required amount being produced. Intermediatestorage of products should be avoided. The production and inspectionstatus of parts must be recognisable by appropriate identification.Assembly parts, rejects and rework parts require special supervision andidentification.Storage and transportation equipment must be coordinated, for the entireprocess chain, with the specific product manufactured for the customer,and may not have a damaging effect on the product.With longer production stoppages, tools, production equipment, andinspection, test and measuring equipment must be suitably preservedand stored in order to prevent damage. Renewed, immediate use withoutlengthy preparation must be ensured.

2.3.1 Are the production volumes planned in accordance withcustomer demand and conveyed as planned to the nextproduction step?

2.3.2 Are products and components appropriately stored and are thetransportation means and packaging equipment coordinated withthe specific characteristics of the products / components?

2.3.3 Are reject, rework, set-up parts and excess materialconscientiously separated and identified?

2.3.4 Is the material and parts flow secured against mixing / confusion and is traceability ensured?

2.3.5 Are tools, facilities, and inspection, test and measuring equipmentstored appropriately?


92

2.3.1 Are the production volumes planned in accordance withcustomer demand and conveyed as planned to the nextproduction step?



- appropriate transportation means- defined storage locations- minimal or no intermediate storage- KANBAN- just in time- first in first out- store management- change status- only conveyance of conforming parts- recording and analysis of the number of units- information flow

Note: If material or parts is directly supplied to production stations, the requirements ofquestion 1.7 are also to be considered.

2.3.2 Are products and components appropriately stored and arethe transportation means and packaging equipment co-ordinated with the specific characteristics of the products andcomponents?



- inventory- protection from damage- parts positioning- order, cleanliness, overstocking (storage areas, container)- control of storage time- environmental influences, air conditioning

Note: If material or parts are directly supplied to the respective production stations, therequirements of questions 1.7 and 1.8 are also to be considered.


93

2.3.3 Are rejects, rework, set-up parts and excess materialconscientiously separated and identified?



- quarantine areas, quarantine storage- labelled containers for scrap, rework and set-up parts- non-conforming products and non-conforming characteristics- release status- defined reject and rework stations in production

2.3.4 Is the material and parts flow secured against mixing / confusion and is traceability ensured?


Considering the product risk, traceability must be ensured over the entireprocess chain from the supplier to the customer.


- parts identification- identification of production, inspection and use status- batch identification- expiration dates- removal of invalid identifications- work documents with parts and production data


94

2.3.5 Are tools, facilities, and inspection, test and measuringequipment stored appropriately?


Tools, facilities, and inspection, test and measuring equipment which isnot in use and not released must be appropriately stored andadministered.


- damage proof storage- order and cleanliness (housekeeping)- defined storage areas- administered issuance- environmental influences- identification- defined release and change status


95

2.4 Failure analysis, corrective actions, continuousimprovement (CIP)

The supplier has the duty to recognise deviations from the customerrequirements using ongoing product and process observations and toeliminate these using suitable actions. Progress towards the zero defectdemand of the customer must be made by continuous improvement andusing preventive methods in all processes, assisted by statisticaltechniques.The prerequisite for any improvement is a detailed failure analysis inorder to be able to identify the true root causes and to initiate appropriatecorrective actions. The effectiveness of corrective actions performedmust be proven in each case.Those people and areas responsible for the process must participate inthe continuous improvement process and nonconformity elimination.Each of them carries the responsibility for customer satisfaction.

2.4.1 Are quality and process data completely recorded and insuch a manner that they can be analysed?

2.4.2 Are quality and process data statistically analysed and areimprovement programs introduced from the analysis?

2.4.3 Are the causes analysed and is corrective action initiated in theevent of any deviations from product and process requirements?

2.4.4 Is the required corrective action implemented according to thedeadlines and is its effectiveness verified?

2.4.5 Are processes and products regularly audited?

2.4.6 Are products and processes continually improved?

2.4.7 Are targets set for the product and process and is theirachievement followed up?


96

2.4.1 Are quality and process data completely recorded and insuch a manner that they can be analysed?


Quality and process data must be completely available for verification ofadherence to requirements. Their potential for analysis must be ensured.Special events must be documented (log book)


- raw data charts- defect concentration charts- control charts- data acquisition- recording equipment for process parameters (e.g., temperature,

time, pressure)- equipment down times- parameter changes- power failure

2.4.2 Are quality and process data statistically analysed and areimprovement programs introduced from the analysis?


Findings and problems must be allocated to the process owner. It is theresponsibility of the process owner to define the improvement programand to implement the improvements.


- process capabilities- defect types, defect frequencies- defect costs (costs of nonconformity)- process parameters- scrap, rework- hold notes, sorting actions- cycle times. throughput times- reliability, failure mode- function

The following can for example be used:

- SPC- Pareto analysis- cause and effect diagrams


97

2.4.3 Are the causes analysed and is corrective action initiated inthe event of any deviations from product and processrequirements?


When process or product nonconformities occur, appropriate actionsmust be taken immediately (e.g., quarantining, sorting, informing) untilthe effectiveness of performed corrections is verified. This procedure isnecessary in order to meet the zero defect requirements.


- Deviations to dimensions, material, functional, and endurance tests- cause and effect diagrams- Taguchi, Shainin- FMEA, failure analysisprocess capability analysis- quality circles- 8D method

2.4.4 Is the required corrective action implemented according tothe deadlines and is its effectiveness verified?

Requirements / explanations

Corrective actions refer to the entire process chain from the pre-materialto the utilisation at the customer. Once corrective actions have beenexecuted, their effectiveness must be verified and must be proven.


- risk analyses (process FMEA) fault analyses- improvement program from audits- findings / action from maintenance / service- information back to person that caused problem- internal / external interface meetings- internal complaints- customer complaints- customer surveys


98

2.4.5 Are processes and products regularly audited?


Audit plans must be available for the product and its manufacturingprocess.

Situations requiring an audit are, for example:

- new projects, new processes, new products- non-compliance with quality requirements (internal, external)- verification of adherence to quality requirements- identification of improvement potential

Nonconformity reports must be passed to the persons responsible andthe improvement actions followed up.


- customer requirements- important characteristics- function- packaging- process capability

2.4.6 Are products and processes continually improved?


The improvement potential must be developed from the presentknowledge about quality, cost and service.


- cost optimisation- reduction of waste (e.g., scrap and rework)- improvement of process stability (analysis of process chain)- optimisation of set-up times, increase in system availability- reduction of throughput times- reduction of stock levels


99

2.4.7 Are targets set for the product and process and is theirachievement followed up?


Target values must be established, they must be achievable, and it mustbe ensured that these target values are up-to-date. Required specialmeasures must be defined and converted if necessary.


- presence and absence of personnel- production quantities- quality indexes (e.g., error rates, audit results)- throughput times- non conformity (non conformity cost)- process indexes (e.g. process capability)


100

3 Customer care / customer satisfaction (service)

The customer demands goods free of non conformities and satisfactionof all requirements for the further processing and use of the product.Included is care (service) after delivery of the product by the supplier inorder to recognise deviations from the customer requirements andexpectations and to maintain or achieve customer satisfaction throughsuitable corrective actions. The function of customer care therefore has akey role in the measurement of customer satisfaction. It must be staffedby qualified personnel and have the possibility to bring improvements toall levels and areas of the supplier.The supplier must ensure quick reactions to quality problems and thatparts supply is ensured according to the quality requirements.The compliance with the logistical requirements of the customer alsocontributes to maintaining customer satisfaction. The entire packagingand delivery process (to the customer) must be considered for thispurpose. The type and the scope of the packaging as well as thetransmission of the logistical data must be defined in specificationsbetween the responsible logistics departments (supplier / customer).

3.1 Are the customer requirements regarding the QM system, productand process complied with?

3.2 Is customer service guaranteed and are complaints recorded andevaluated?

3.3 Are there contingency plans for ongoing supply of parts andimmediate actions taken for problems?

3.4 Are all non conformities analysed and improvement actionsimplemented?

3.5 Are the personnel qualified for their individual tasks?

3.6 Is the verification for D/TLD-parts evaluated by regular internalaudits?

3.7 Does the packaging, the identification of the containers as well asthe data exchange comply with the customer requirements?


101

3.1 Are the customer requirements regarding the QM system,product and process complied with?


All requirements especially those that are entered in the supplierevaluation (e.g. delivery, processing and functional quality) of thecustomer must be considered.


- QM system certification according to VDA 6.1 or equivalent- quality agreements- target agreements on zero defect demand- dock audits for VW products- long term inspection (determination of failure mode)- storage/ processing/ parts availability/ distribution- functional inspections- suitability of inspection and test and measuring equipment- comparative inspection processes- verification of the specification levels

3.2 Is customer service guaranteed and are complaints recordedand evaluated?


The professional person responsible for the different organisationalareas of the customer must always be available. Customer care is also ameasure of product design. The supplier has a duty to observe and ifnecessary improve products in all product development and usage steps.


- records of customer visits, if necessary derived actions- knowledge about product use- knowledge about product problems, transportation complaints- conversion of new requirements- communication of improvement actions- notification of product and process changes/changes of location (also of sub contractors)- initial / repeated sampling (test, full scale )- information for deviation from requirements (also regarding

packaging and transportation)- quality of the logistical data (e.g. statements regarding the

container stocks) at the supplier


102

3.3 Are there contingency plans for ongoing supply of parts andimmediate actions taken for problems?


Concepts for the assurance of parts supply must already be prepared inthe process planning, also in the case of unplanned problems.Applicability must be guaranteed in the full scale phase.


- emergency plans (e.g. for alternative productions, sub-contractors,packaging, transportation)

- capacities and reaction times of sorting actions- change possibilities in the plant, special operating equipment and

tooling- use of outside capacities.

3.4 Are all non conformities analysed and improvement actions implemented?



- essential in-house analytical/test facilities (laboratory, test facilities,staff)

- laboratory according to the ISO / IEC 17025 requirements- PARETO analyses regarding fault characteristics (internal/external)- involvement of all the relevant departments (internal /external)- application of problem elimination methods (e.g. 8-D report)- processing of sampling deviations- revision of the specifications- check of effectiveness


103

3.5 Are the personnel qualified for their individual tasks?


The following must, for example, be considered by those responsible for:

- customer care- product inspection- storage/ transportation- logistics- non conformity analysis

Knowledge must be available for example:

- product / specifications / special customer demands- standards / laws- processing / function- assessment methods (e.g., audits, statistics)- quality techniques (e.g., 8D method, cause effect diagram)- foreign languages

3.6 Is the verification for D/TLD-parts evaluated by regularinternal audits?


During the audit / verification, all of the important features, includingthose specified by the Volkswagen Group, must be included.

For example, the following must be addressed:

- audit plan- complete execution of the list of requirements

Formel Q capability or comparable- definition and tracking of the improvement programs- involvement of sub-contractors- a minimum 15 years archiving


104

3.7 Does the packaging, the identification of the containers aswell as the data exchange comply with the customerrequirements?



- suitability of the packaging, protection- technical condition (closing/locking mechanisms)- damages (occupational safety), cleanliness- identification according to customer specifications

(material card acc. to VDA 4902), plausibility (barcode contents)- position of the identification (card pocket, support)- removal of invalid identification- transfer of data (e.g.: data transfer acc. to VDA Standard 4927)

acc. to “EDI Implementation Guidelines” Volkswagen AG)

11. List of requirements for verification audits(D/TLD-Parts)

105

1 Technical documentation / verification audits

Special documents and verification documentation in all of the productand process development phases as well as the series production of theproduct, are very important for the necessity to submit verification. Thesupplier must completely list, document and archive all of the quality-related documentation. The supplier must be able to prove that they fulfilall of the customer-specific features for which verification audits arecompulsory. The same procedure must be applied to sub-contractors.The supplier is also responsible for ensuring that other importantfeatures, which he has identified as a result of his experience, are alsospecified and included in the verification. It is possible that thesefeatures are not specified as such by customers.

1.1 Are the procedures documented?

1.2 Are the technical documents for D/TLD-parts available with validchange status, identified as D/TLD-parts and the D characteristicsspecially indicated?

1.3 Does the parts manufacturer document those characteristicswhich are not indicated in the VW/Audi documents but whichare regarded as safety relevant, in the context of productresponsibility?

1.4 Does the supplier file the production and technical inspectiondocuments securely and for at least 15 years (30 years fordocuments on Dangerous Substances Ruling § 18 [3])?

1.5 Are all decisive data contained in the documentation?

1.6 Is the archiving performed so that quick access to individualdocuments is possible?

1.7 Are the sub-contractors that influence the characteristics for whichverification documentation is compulsory, obliged to carry outsimilar verification?

1.8 Are the sub-contractors that influence the characteristics for whichverification documentation is compulsory, evaluated and are therequirements verifiably assured?

1.9 Are the latest EU/US safety information publications, chemical legislation, dangerous substances rules, and banned chemicals rules available and has relevant responsibility been delegated?


106

1.1 Are the procedures documented?


Affects all documents with regard to procedures for D/TLD-parts andquality assurancewith verification of initial and change releases (see also VDA Volume 6.1Element 6).

1.2 Are the technical documents for D/TLD-parts available with valid change status, identified as D/TLD parts and the D/TLD characteristics specially indicated?


All the documents (documents and records) with regard to the followingare to be considered:

- delivery components- process planning, control

1.3 Does the parts manufacturer document those characteristics which are not indicated in the VW/Audi documents but which are regarded as safety relevant, in the context of product responsibility?


The following characteristics must, for instance, be considered:

- work material, function,- lifetime, reliability, (see also VDA Volume 1 and Volume 6.1 – Element 6).


107

1.4 Does the supplier file the production and technical inspectiondocuments securely and for at least 15 years (30 years for documents on Dangerous Substances Ruling § 18 [3])?


Archiving must be fire and theft proof. Changes to documents must beprecluded through e.g. by microfilming, CD ROM (see also VDA 1).


- production plans, process parameter documentation, inspection plans- test results, capability documentation- test and inspection equipment monitoring- safety data record sheets- environmental compatibility verification proofs

1.5 Are all decisive data contained in the documentation?



- part origination data (including change status)- inspection characteristics ( set /actual values)- reliability inspections- remarks on deviating results with corrective actions

1.6 Is the archiving performed so that quick access to individual documents is possible?


Archiving must enable allocation to lot / batch No. in the product andinspection documents, throughout the entire manufacturing chainincluding sub-contractor production. This includes documents onDangerous Substances Ruling § 16 [2] or Chemicals Law § 16 c.


108

1.7 Are the sub-contractors that influence the characteristics forwhich verification documentation is compulsory, obliged tocarry out similar verification?



- purchase contract- quality agreement- inspection certificates

1.8 Are the sub-contractors that influence the characteristics forwhich verification documentation is compulsory, evaluatedand are the requirements verifiably assured?


For instance, proof of the correct documentation for every audit report.

1.9 Are the latest EU/US safety information publications,chemical legislation, dangerous substances rules, andbanned chemicals rules available and has relevantresponsibility been delegated?


109

2 Product and Process

The qualification/capability of the various processes and part tests aredecisive when fulfilling the product quality requirements. In this case,verification proofs must be produced. Documentation regarding planningactivities, risk analysis, selection and qualification of personnel, proof ofquality-capable test routines, test equipment and the environmental-compatibility of the materials and process mediums used must also beincluded in the verification documentation. It must be guaranteed thatparts can be traced back to earlier processes and materials

2.1 Are all important production parameters for the D/TLDcharacteristics established in writing and is their regular inspectiondocumented?

2.2 Has the process capability regarding the D/TLD characteristicsbeen proven or is a full inspection carried out if no proof isavailable?

2.3 Are the inspection procedures for D/TLD characteristics suitable touncover defects?

2.4 Is traceability guaranteed as a result of sufficient identification?

2.5 Are all D/TLD characteristics sufficiently taken into consideration?

2.6 Is the scientific evaluation of the materials that are delivered toVolkswagen monitored in terms of their environmental friendlinesseven beyond the time of delivery and is Volkswagen informed ofany critical cases?


2.1 Are all important production parameters for theD/TLD characteristics established in writing and is theirregular inspection documented?

2.2 Has the process capability regarding the D/TLDcharacteristics been proven or is a full inspection carried outif no proof is available?


Cpk = 1.33 for production start and continuous improvementshort term process capability Cmk / Ppk = 1.67.

2.3 Are the inspection procedures for D/TLD characteristicssuitable to uncover defects?


The following must, for example, be considered:- verification of capability for inspection/ measurement systems- precision matched to tolerances- maintenance, calibration

2.4 Is traceability guaranteed as a result of sufficient identification?



- parts source information, production date, batch/ lot no.,- shipping date, delivery note no.

2.5 Are all D/TLD characteristics sufficiently taken intoconsideration?

2.6 Is the scientific evaluation of the materials that are deliveredto Volkswagen monitored in terms of their environmentalfriendliness even beyond the time of delivery and isVolkswagen informed of any critical cases?


Law on environmental liability 8 and 9, product liability.

110


111

3 Personnel

Personnel employed for the production and testing of parts andcomponents must be qualified in-line with their special responsibility.Each employee must be clearly told of the risks involved if importantproduct and process features are deviated from. Foreign employees,who do not have a command of the language of the country in whichthey are a resident, must be qualified and trained in their own mothertongue. Personnel qualifications are to be maintained by continuoustraining and must be documented in a form of proof of suitability. A poolof suitable qualified personnel must be available so that they areavailable when bottlenecks occur.

3.1 Are personnel (operator/inspector) who influence / confirmthe D/TLD characteristics, trained for their particularresponsibility?

3.2 Are the instructions for foreign personnel (operator/inspector) available in their own language?

Alternatively, verification of the command of the language (e.g. by a national school certificate).

3.3 Is the suitability of personnel (operator/inspector) documented to prove that they are qualified for their particular taskor function?

3.4 Are other qualified employees available to replace personnel ifnecessary?


112

3.1 Are personnel (operator/inspector) who influence/confirm theD/TLD characteristics trained for their particularresponsibility?


Personnel must be instructed about the requirement to adhere to laws,effects of deviation/non-compliance, responsibilities, information flow,quarantining, identification (required values, reports, confirmation inwriting)

3.2 Are the instructions for foreign personnel (operator/ inspector) available in their own language?

Alternatively, verification of the command of the language(e.g. by a national school certificate)

3.3 Is the suitability of personnel (operator/inspector) documented to prove that they are qualified for their particular task or function?



- qualification for process- verification through induction and random sample checks thereafter

3.4 Are other qualified employees available to replace personnel if necessary?

Appendices

ElectricalEngine Electrics,Power supply

Lighting, Options

Accessories, Aids/ jigs - materials Switches, Control-,Measurement devices

SoftwareSemi finished products Light metal lost foam process Plastic-, Foam parts, Foils Assy Heating / Ventilation Engine electrics,Hot rolled steel Light metal pressure die cast Plastic injection moulded Steering wheel PowersupplyCold rolled steel Foamed Aluminum parts " with laser marking Airbag Starting BatteryAluminum strip Brass pressure cast Assy plastic injection moulded Gas cartridge Starter MotorSteel rod Assembly of pressure cast " multi component Foil AlternatorRoll form profile Piston " rear injection Foils with insert Ignition CoilExtruded profile Piston rings ( cast ) " high precision Compact foils DistributorHot drawn profile Piston rings ( steel ) Plastic parts deep drawn Foam Foils Cut off contactsDrawn profile Crank shaft housing Plastic profiles Vinyl Throttle body inletRolled wire Alloy wheels cast Assembly plastic profiles Rubber-, Rubberbonded, Throttle body inlet electricalDrawn wire Alloy wheels forged plastic blow mould parts Tyres Control unitsSeamless pipes Alloy - forged parts (AL/MG) Assy plastic blow mould Rubber punch parts Control units SMD - TechnologyWelded pipes NE metal forged parts Plastic fuel tank Rubber form parts Control units Hybrid - TechnologyCoiled pipes ( Bundy) Forged-/ hot flow press parts Duro plastic form parts " with textile inserts Spark plug / GlowplugSemi-finished pre cuts " with controlled cooling GFK - Parts ( SMC / BMC ) Rubber profile Assembly SuppressorWelded plates Inlet- / outlet valves GFK - parts with IMC Assembly rubber profile Central Injection unitLight Metal melted Alloys Sintered parts GFK - parts handlaminated Braided pipes Central ElectricÇast, forged, hot formed, GMT - Parts Assembly braided pipes Fusespress parts, sintered parts Cut foam parts Rubber bonded parts Electrical PumpsCast FE laminated graphite (GGL) Assembly cut foam parts " with load changing Electrical HarnessesCast FE spheroid graphite (GGG) Flake compound foam parts Hydro bearing / support HarnessesTempered Casting ( GTS /GTW ) Form foam parts V- / Poly V belts Battery cableAustantic cast iron Assembly form foam parts Tyres Ground strapsFine cast Assembly Dashboard foil Electrical MotorsIron die cast Assy Dashboard - Printed foil Wiper - MotorLight metal sand cast ( AL / MG ) Assembly Dashboard - IMP Blower MotorLight metal die cast ( AL / MG ) A/C Heating switchesSupplementary production processes (are listed with individual product groups if necessary)e.g. painting, galvanising, surface protection, printing, machining, welding, laminating, assembly, packaging, heat treatment.

PRODUCT GROUP CATALOGUE

Semi -finished, cast-, forged-, hot flow press-, sintered parts, non-springback and springback formed components, assemblies, couplings, joints, springs

Engine, exhaust and A/C conditioning systems, gearbox, powertrain, brake, axle, steering, locking and seat systems, accessories.

Metallic Chemical

Plastic-, Foam parts, Foils, Rubber-, Rubberbonded parts, Tyers, Absorbers, Seals, Filter, Glass, Ceramic, Mirror, Trim parts, Upholstery material, Wooden parts

Page 1 of 3

ElectricalForming, Machining, Engine, Exhaust-/ A/C system Absorbers / Damping Trim, Upholstery, Lighting, OptionalAssembly Turbo charger Damping Fiber - Flies Wooden parts HeadlightCold formed press parts Petrol-/ Diesel engines Damping Bitumen Headlining - Polystyrol carrier Exterior lightsPiston bolt Alloy radiators Damping Heavy Foil Headlining - Cardboard Carrier SBBRPress-/ Punch parts Heavy metal radiators Damping Basalt Stone Wool Headlining - GF - Foam carrier Interior lightBody outer skin panels Assembly fueltank Damping Steel Wool Headlining - Fiber - Flies carrier Lamp fittingsBend wire parts Carburetor Filling foam Headlining - Resin - Jute carrier Glow bulbsPipe-/ Profile form -/ IHU - parts Injector valves Seals, Filters Carpet - Floorcovers RadioRoof railing Injection pump distributor Paper seals Assembly Trim parts SpeakersPermanent magnets pressed Silencer Cork seals assembly Sun visor AerialPermanent magnets injected Catalytic converter Soft material seals Upholstery worked Acoustic Signal unitsPermanent magnets cast Substraight / Monoliths Cylinder head gasket Upholstery knitted TelephonePlain bearing Hydraulic valve tappets PTFE - Seals / gaskets Upholstery woven HooterRoller bearing Pneumatic valves Valve shaft seals Upholstery velour Electro mechanical Indication UnitsBearing Balls/ cones/ etc. Magnetic valves Radial- / Rod sealing rings Upholstery Rubber Hair Electronic Indication UnitsAssembly metal parts ( assembled ) Hydraulic valves Axial Face seal Textile ropes Electrical Central lockingAssembly metal parts ( welded ) Hydraulic pumps Airfilter Assembly Headrest Window LifterAssembly Alloy metal parts ( welded ) Mechanical pumps Oilfilter Assembly Safety Belts Seat heatingAssembly Body outer skin panels (welded) Hydraulic-/ pneumatic cylinder Fuelfilter Safety Belt Locks Heating elementsAssy Body outer skin panel-alloy (welded) Heat exchanger Filter sieve Natural Leather Cigar lighterAssembly metal parts ( glued ) Receiver drier A/C system Glass, Mirror, Ceramic Wooden Parts Switches, Control-,Assembly Tube- / pipes connections A/C System ESG Coated / Laminated wooden parts Measurement devicesBauden cable Assembly ESG Accessories Sender unitsSteel rims Gearbox, powertrain Isolating glass Warning Triangle SensorCouplings, Joints and Springs Assembly Isolating glass First Aid Kit Airflow Measure unitMetal screws Assembly Gearbox VSG Weapons Box SwitchesScrews smaller than class 10.9 Assembly Automatic Gearbox Assembly VSG Stickers / Labels Steering Column SwitchScrews greater than class 10.9 Torque converter IR - Damping glass Mechanical SwitchNuts Clutch surface material Assembly IR - Damping glass Electronically SwitchLocking Nuts Assembly Clutch TVG Mechanical RelaysThread inserts Synchro Clutch Assembly TVG Electrical RelaysWashers / circlips Assembly Visco Clutch Plastic Cups Electro MagnetPull-/press-/ formed springs Velocity joints Sun roof Printed CircuitsCoil springs Drive shaft Exterior mirror mechanical ResistorsValve springs Exterior mirror elcetro/mech CapacitorsLeaf springs Interior mirror ThermostatsStabilizers Ceramic components TELMATICRivets Drum brake lining Software

Disc brake liningSupplementary production processes (are listed with individual product groups if necessary)e.g. painting, galvanising, surface protection, printing, machining, welding, laminating, assembly, packaging, heat treatment.

PRODUCT GROUP CATALOGUEMetallic Chemical

Page 2 of 3

ElectricalBrake, Axle, Steering Locking-, Seat system Aids- / MaterialsAssembly Brake pressure reducer Door-front and rear locks Brakefluid / Hydraulic oilMaster cylinder Lock sets CoolantWheel slave cylinder Ignition lock GreasesDisc brake Central locking Preservatives Drum Brake Lockable lids Long elastic sealsAir pressure - Brake system Seat frame PaintsBrake booster Backrest frame PVC - Underbody coatingsHydraulic absorber Assembled seat Assembly Aids / JigsGas shocks AccessoriesAssembly power steering Vehicle toolsMounting / guide joints Tow ropeTracking rods JackSteering rods StretcherAssembly Steering column Dual function Driving school carsAssembly Steering column Electromech. LM - rear spoiler

Front end Module Vehicle specific harness AssembliesCockpit Module Wheel/Tyre AssembliesDriver/passenger seat Modules Air Damping system AssembliesFuel tank Modules ABSAggregate carrier Module Exhaust system AssembliesFront axle ModuleRear axle Module

Supplementary production processes (are listed with individual product groups if necessary)e.g. painting, galvanising, surface protection, printing, machining, welding, laminating, assembly, packaging, heat treatment.

PRODUCT GROUP CATALOGUEMetallic Chemical

MODULES FUNCTION SYSTEMS

Page 3 of 3

Regarding Purchasing InquiryPart Description : Part No. : Global/Forward Sourcing N. :

1. Supplier information

Company Name Contact person Sales

Name :

Tel. No. :

Fax. No. :

Speak German?

Manufacturing site address : Development site address :

VW Supplier No.

2. General information regarding current supplyProduction deliveries to Volkswagen and other motor manufacturers

Annual volume

3. Rating of quality capability by 3rd party and/or results of self audit(Certification - DIN/ISO 9000 / EN 29000 / VDA 6.1 / QS 9000 / TS 16949

Certificate % Rating

Page 1 of 3

Part / Product Customer / vehicleProduction facility

Parts / Product group Third party / Auditor

Development Quality

Since

Date

SUPPLIER INFORMATION

The returning of the Supplier information is mandatory (with attachments if necessary).All information given must be for the planned production facility.PLEASE RETURN AS SOON AS POSSIBLE!

VOLKSWAGEN AG


SUPPLIER INFORMATIONVOLKSWAGEN AG

4. Drawing/Design system

Does the supplier have common drawing/design method (e.g. drawing board)?

Has the supplier got CAD systems?

If yes, what type?

a)

b)

Is the supplier's CAD system compatible to VW? (VW 01059)

5. Development division

Can the supplier handle all aspects of the development?

If not, what development must take place else where?

Until when :

If not, does the supplier have access to alternatives (Know How partner with License agreement)

6. Innovation

Has the supplier have any Patents and/or unique manufacturing methods?

If yes, for which products and/or processes?

a)

b)

c)

7. Laboratory facility

Does the supplier have their own laboratory facility?

If not, what facilities will be purchased?

a)

b)

c)

Timing :

Is there enough capacity in the above mentioned facility?

If no, has the supplier got access to an alternative?

Page 2 of 3

Yes/No


SUPPLIER INFORMATIONVOLKSWAGEN AG

8. Testing facilities

Functional test facilities :

a)

b)

c)

Endurance test facilities :

a)

b)

c)

Measuring and inspection equipment :

a)

b)

c)

Does the supplier have sufficient capacity with regards to the above facilities/equipment?

If no, has the supplier got access to alternative test facilities/equipment?

What test facilities/equipment will be purchased?

Timing :

9. Sample build

Has the supplier a sample build area?

Is the area sufficiently equipped and independantly organised?

If required, what additional equipment will be purchased?

Timing :

Has the supplier sufficient capacity in the above area?

If no, has the supplier got access to alternative sample build area?

10. Acceptable supply

Manufacture according to process technical requirements.

a) QFD Methods :

b) Design FMEA :

c) DOE Methods :

Can the supplier give targets (timing plans) for project steps?

Page 3 of 3

Yes/No

Report :

Date:

Konzern Qualitätsaudit Lieferanten, Brieffach 1467, 38436 Wolfsburg

Audit Requestor:

Last Audit Results / CertificatesCertificate- / Audit No. Date Issued by Result

Audit Results

A B C

ED = Product Creation Process Grading Scale : A = 90 - 100% Qualified

EP = Series Production B = 80 - 89% Conditionally qualified

C = 0 - 79% Not qualified Downgrading possible (See explanation below)

Statements / Requirements :-

Date for Improvement Program:

Signatures: Auditor/ess:Name Auditor

Supplier:

Manager : Supplier Quality Development

Distribution:

VOLKSWAGEN AG

VDA 6.1E ges [%]

Product Groups

Supplier No.:

Assessment of Quality CapabilityQM-System audit, Process audit, Product audit

GradeProduct

Defect/ClassProcess

ED[%] EP[%]

Reason for Audit :

Overview of Results Report :

VDA-QM-System Audit Page :

Target Minimum requirement

No. of points Ach. 60 70 80 90 100

Elementmax.poss.

achieved

E [%]

Part M: Company Management

1 Management Responsibility 0

2 Quality System 0

3 Internal Audits 0

4 Training : Personnel 0

5 Fin. Considerations of QM System 0

6 Product Safety 0

Z1 Corporate Strategy 0

Eu Average 1-6, Z1

Part P : Product and Process

7 Contract Review, Q. in Marketing 0

8 Design Control (Product Design) 0

9 Process Planning (Proc. Devel.) 0

10 Document and Data Control 0

11 Purchasing 0

12 Control of Customer Supplied Prod 0

13 Prod. Identification & Traceability 0

14 Process Control 0

15 Inspection & Testing (Prod. Verif.) 0

16Control of Inspection, Measuring & Test Equipment 0

17 Control of Nonconforming Product 0

18 Corrective & Preventive Action 0

19Handling, Storage, Packaging, Preservation & Delivery 0

20 Control of Quality Records 0

21Servicing, (After Sales, Post-Production Activities) 0

22 Statistical Methods 0

Ep Average of 7-22

60 70 80 90 100

Level of Achievement Eges = 1/3 Eu + 2/3 Ep

VOLKSWAGEN AG

Overview of Results Report :

Page:

Target

A Product Creation Process Min. requirements

Audit Elements Achieved 60 70 80 90 100[%]

Product Development (Design) EDE

Process Development EPE

B Series Production

Audit Elements / Process Steps Achieved 60 70 80 90 100[%]

Suppliers / Purchased Material EZ 0

Customer Care / Customer Satisfaction EK

E1

E2

E3

E4

E5

E6

E7

E8

E9

E10

QM-System related analyses (Average of steps E1-n)

Audit Elements Achieved 60 70 80 90 100[%]

Personnel / Qualifications EU1

Machinery / Equipment / Test facilities EU2

Transport / Parts handling / Storage EU3

Defect analyses, Corrective actions, CIP EU4

VOLKSWAGEN AGProcess Audit

Report:

Page:

Konzern Qualitätsaudit Lieferanten, Brieffach, 1467, 38436 Wolfsburg

Part Desciption: Batch Quantity :

Part No.: Drawing Date: Production Date :

A B C

Remarks : Decisions

Signatures :

Date Supplier Auditor

VOLKSWAGEN AG Product AuditOverview of Results

Supplier:

Supplier No.:

Pos. Important Characteristics / Specifications Test result Value (min - max)

Defect Quantity / ClassProcess capability Cpk (Cmk)

Sample Size

Total:

Quarantining / Sorting actionsCorrective actions realised / required

Introduce specification change Process change / relocation

Report :

Page :

Supplier:

No. of employees : Tel. : Telefax :

Responsibilities :

Senior Management :

Plant Management :

Quality Management :

Marketing :

Technical Management :

Research/Development :

Logistics :

Connection / link (Techn.) to VW Group:

Cooperation / Joint Venture :

Electronic Data processing PPS/BDE CAD/CAM CAQ EDISystem in use :

Design / Development Tool making

Series production / delivery for other automotive manufacturers :

Product groups Customer Remarks

Other products which could potentially be used by automotive manufacturing(supplementary to the current supply range) :

Product groups Customer Remarks

General InformationVOLKSWAGEN AG

VDA-QM-System Audit Report:

Summary of Evaluated Questions

Supplier: Supplier No. :

Audit Questions.01 .02 .03 .04 .05 .06 .07

010203040506Z1070809

10111213141516171819202122

Note : na

*

Company / Auditor / Date

Reasons for questions not being answered :

= resulsts carried over from :

VOLKSWAGEN AG

= These questions were not answered. For reasons see below.

= Questions with particular relevance for product-,

process and QM-System.

Report :

Evaluated Questions / Level of Achievement

A Product creation processDegree of fulfillment [%]

1 Product Development (Design).1 .2 .3 .4 .5 .6 .7 .1 .2 .3 .4 .5 .6

1. Planning 2. Implementation EDE

2 Process development.1 .2 .3 .4 .5 .6 .7 .1 .2 .3 .4 .5 .6 .7

1. Planning 2. Implementation EPE

B Series production.1 .2 .3 .4 .5 .6 .7 .8 .9

1 Suppliers/purcd. Material EZ

2 Production (evaluation of each process step)Personnel/Qualification Equipment/facilities Transport/Part handling Defect analysis, Corrective actions, KVP1.1 .2 .3 .4 .5 2.1 .2 .3 .4 .5 .6 3.1 .2 .3 .4 .5 4.1 .2 .3 .4 .5 .6 .7

Process step 1: E1

Process step 2: E2

Process step 3: E3

Process step 4: E4

Process step 5: E5

Process step 6: E6

Process step 7: E7

Process step 8: E8

Process step 9: E9

Process step 10: E10

Evaluations of the sub-elements with ref. to the QM system element B2 (average value process step 1 - n)

1.1 .2 .3 .4 .5 2.1 .2 .3 .4 .5 .6 3.1 .2 .3 .4 .5 4.1 .2 .3 .4 .5 .6 .7

EU1 [%] EU2 [%] EU3 [%] EU4 [%]

.1 .2 .3 .4 .5 .6 .7 EK

3 Customer service / customer satisfaction

Degree of fulfillment of EPG [%] acc. to Product group Element B 2 (Average Ex - En)

Product groupsProcess steps

EPG [%]

Total degree of fulfillment ED/EP [%] acc. to Product group Prod. Grp.

Note : Questions not assessed = na

VOLKSWAGEN AG

ED [%] EP [%]

Process Audit

ED [%] =EDE + EPE

Number of evaluated Elements

EZ + EPG + EKEP [%] =Number of evaluated Elements

Report : Example :Attachment

A Product creation processDegree of fulfillment [%]

1 Product Development (Design).1 .2 .3 .4 .5 .6 .7 .1 .2 .3 .4 .5 .6

1. Planning 10 8 10 8 10 10 6 2. Implementation 10 8 6 10 10 6 EDE 86

2 Process Development.1 .2 .3 .4 .5 .6 .7 .1 .2 .3 .4 .5 .6 .7

1. Planning 8 8 10 6 10 6 8 2. Implementation 6 8 6 10 8 10 6 EPE 79

B Series production.1 .2 .3 .4 .5 .6 .7 .8 .9

1 Suppliers/purchd. Material 8 8 10 10 6 nb 8 8 10 EZ 85

2 Production (evaluation of each process step)Personnel/Qualification Equipment/facilities Transport/Parts handling Defect analysis, Corrective actions, KVP1.1 .2 .3 .4 .5 2.1 .2 .3 .4 .5 .6 3.1 .2 .3 .4 .5 4.1 .2 .3 .4 .5 .6 .7

Press/Punch E1

10 10 10 10 8 8 10 8 10 10 6 10 10 10 10 10 10 10 10 8 10 10 10 94CO2 welding E2

10 10 6 10 8 6 10 6 10 10 8 10 10 10 6 10 10 8 8 8 8 8 8 86Spot welding E3

10 10 6 10 8 8 10 8 10 10 8 10 10 10 6 10 10 8 8 8 8 8 8 88Machining E4

10 10 10 10 8 6 10 8 10 8 10 10 10 10 10 6 8 8 8 8 10 10 10 90Painting E5

10 10 8 10 8 10 10 10 10 10 6 10 0 10 8 6 10 8 8 8 10 10 8 86Plastic injection moulding E6

10 10 8 10 6 10 10 10 10 10 6 10 10 10 10 10 10 6 6 4 10 8 8 88Assembly E7

8 8 8 10 6 6 10 4 8 10 6 10 6 10 6 8 10 8 6 4 8 8 8 77 E8

E9

E10

Evaluations of the sub-elements with ref. to the QM system element B2 (average value process step 1-n)1.1 .2 .3 .4 .5 2.1 .2 .3 .4 .5 .6 3.1 .2 .3 .4 .5 4.1 .2 .3 .4 .5 .6 .710 10 8 10 7 8 10 8 10 10 7 10 8 10 8 9 10 8 8 7 9 9 9

EU1 [%] 90 EU2 [%] 88 EU3 [%] 90 EU4 [%] 86

.1 .2 .3 .4 .5 .6 .7 EK

3 Customer service / Customer care 8 8 6 10 10 10 10 89

Degree of fulfillment of EPG [%] acc. to Product group element B2 (average Ex-En)

Product groups A B C D Process steps E1 E1 to E5 E1 to E7 E6

EPG [%] 94 89 87 88

Prod. Grp.Total degree of fulfillment of Ed/Ep [%] acc. to Product group A

BCD

Note : Questions not assessed = na

VOLKSWAGEN AG

83 87

88

Process AuditEvaluated Questions / Level of Achievement

87

ED [%] EP [%]89

sec A Product creation process: Evaluation with new products and processes. If comparable series production is present combine with the block B production. The current realization conditions of the project are evaluated at the audit date, compared with the customer coordinated project plan / QM plan targets and milestones.

sec A1/A2 Product Development/Process Development: The Process Development section can be evaluated without the element Product Development, if this element has already been verified by the customer, or is performed by the customer (e.g. with second tier supplier). Evaluation realization conditions as in A.

sec B Series Production: Evaluation after conclusion of the product/process development (series production). In combination with A at the pre-productionstage, if comparable production processes are present. With the beginning of the series production the measures/controls from product/process development must be converted into practice.

sec Process steps: Each product group (see product group catalog) has its own process steps, which are evaluated individually. Here evaluation of all process steps occurs. The degrees of compliance are found in E1 to E10, as calculated (horizontal evaluation).

sec QM System: These four evaluation blocks can be used for a Quality Management system related analysis (vertical evaluation) over all process steps. EU1-EU4: Average degrees of compliance of the results with QM System related analysis. The result could lead to a re-audit of the QM system if necessary. sec Product groups/Process steps: Degrees of compliance [ EPG ] of product groups with own scopes of supply in each case A = press/punched parts (process step 1) B = Welding of press/punched parts, machining and painting(process steps 1, 2, 3, 4, 5) C = Assembly of metal parts assembled with welding, mechanical processing,painting and plastic injection moulding (process steps 1, 2, 3, 4, 5, 6, 7) D = Plastic Injection Moulded parts (process step 6)

sec Overall degrees of fulfillment[ED=Product Creation Process; EP=Series Production ]: Overall degree of fulfillment of the individual product groups, as calculated from the degrees of fulfillment of the respectively assigned, individually evaluated elements[Average of EDE and EPE (here only for Plastic Injection Moulded parts) , w.r.t. EZ, EPG and EK (for Product groups already with Series Production available).]

EDE + EPE

Number of evaluated elementsED [%] = EZ + EPG + EKEP [%] =


Report :

Date :


Supplier no. : Reason for evaluation :

Source of request :

Project / Product group:

Process evaluation EP [%]

Development evaluation EDE [%]

Evaluation results:Development

Signatures / VW AG participants

Manager : Development

Manager : Supplier Quality Development

Distribution:

Grade

Potential AnalysisVOLKSWAGEN AG

Production

Quality Assurance

Logistics

Other evaluation criteria

Report :

Page :

No. of points Rating 60 70 80 90 100

Evaluated Elementsmax.poss. actual E [%]

Component requirements (characteristics)

Experience/References

Process development / Project planning potentialQ- Methods Q-TechniquesPre-material Purchased partsCustomer Care Customer Satisfaction

Process stages

Process specifications / -quality

Material flow

#NVDegree of fulfillment - Process EP [%]: Degree of fulfillment - Development EDE [%]:

Degree of fulfillment Grade Confirmation /

EP [%] EDE [%] Prerequisites

>= 90 >=90 A Without any serious weaknesses

Improvement/investment programme can be

implemented by SOP/start of development.

Improvement/investment programme cannot be

implemented by SOP/start of development.The overall evaluation according to Rating A,B or C is, according to the "obstacle" principle, always the lowest individual rating.* Downgrade if the improvement/investment programme is not foreseeable/fulfilled for individual criteria by SOP/start of development.

General Information

No. of employees : Tel. : Fax. :

Production Programme :

License agreements :

Customers :

Conditionally

Approved *

Overview of resultsPotential analysis

VOLKSWAGEN AG

Approved

Description

Approved *

0 – 79 0 – 74 C Not

80 – 89 75 – 89 B

Report :

Page :

VOLKSWAGEN AG Remarks

Report:

Page :

Timing / Status / Concerns / Improvement Points Improvement Actions Responsibility

VOLKSWAGEN AG Improvement Program

Report:

Date :

Page :


Supplier No.: Product groups:

Self audit by Supplier: yes no

Audit - ResultsProduct-

D/TLD-Parts (Selection) Defect/class fulfilledPart name, Part No., Drawing Date A B C yes no

Statements / Requirements:

Immediate Actions yes no Improvement Program Date:

Supplier Signature : Signatures VW AG : (not applicable for Self audit)

Approved by: Approved by :Name : Name :

Management : Management :Name/Position : Name :

Distribution :

VOLKSWAGEN AG

D/TLD-Characteristics

Verification of D/TLD-Parts

Quality Audit

D

The system review was conducted on a sample of parts listed above. The supplier provides assurance that the system described is used for all D/TLD-parts supplied (see attachment for current parts supplied). Changes to the stipulated system must be coordinated with and approved by Supplier Assurance.The improvement programme must be completed by the specified date, as above.

Quality Audit Report:

Verification of D/TLD-Parts Date:


Questionnaire for parts which require documentation

1 Technical documents / documentation

1.1

1.2

1.3

1.4

1.5

1.6

1.7

1.8

1.9

VOLKSWAGEN AG

D

Are the procedures documented?Affects all documents on procedure steps to D/TLD parts, quality assurance with verification of initial and change releases (see also VDA vol. 6.1 element 6).

yes / mainly / no

Are the technical documents for D/TLD-parts available with valid change status, identified as D/TLD-parts and the D/TLD-characteristics specially indicated? Concerns all documentation and records for delivery, process planning & process control.

Does the parts manufacturer document those characteristics which are not indicated in the VW / Audi documents but which are regarded as safety related (D/TLD), in the context of product responsibility?To be considered are work materials, function, life-cycle, and reliability (see also VDA vol 1 &vol. 6.1 element 6).

Does the supplier file the production and technical inspection documents securely and for at least 15 years (30 years for documents on Dangerous Substances Ruling § 18 [3])?Archiving must be fire and theft proof. Changes to documents must be precluded through e.g. microfilm, ROM files, etc. (See also VDA Volume 1)To also be considered are for e.g. production plans, process parameter documentation, inspection plans, capability documentation, test & inspection equipment monitoring, safety data record sheets, etc.

Are all decisive data contained in the documentation?

To be considered are for e.g. part origination data (including change status), inspection characteristics (set / actual values), reliability inspections, remarks on deviating results with corrective action.

Is the archiving performed so that quick access to individual documents is possible?Archiving must enable allocation to a lot/batch no. in the product and inspection documents, throughout the entire manufacturing chain, including sub-contractor production.

Are the sub-contractors that influence the characteristics for which verification documentation are compulsory, obliged to carry out similar verification?For e.g. purchase contract, quality agreement, inspection certificates.

Are the sub-contractors that influence the characteristics for which verification documentation are compulsory, evaluated and are the requirements verifiably assured?

Are the latest EU/US safety information publications, chemical legislation, dangerous substances rules and banned chemicals rules available and has relevant responsibility been delegated?

Page 1 of 2

Quality Audit Report:

Verification of D/TLD-Parts Date:


Questionnaire for parts which require documentation

VOLKSWAGEN AG

D2 Product and Process

2.1

2.2

2.3

2.4

2.5

2.6

3 Personnel

3.1

3.2

3.3

3.4

yes / mainly / no

Are all important production parameters for the D/TLD-characteristics established in writing and is their regular inspection documented?

Has the process capability regarding the D/TLD -characteristics been proven or is a full inspection carried out if no proof is available?Required : Cpk = 1,33 for production start ; objective : Cpk = 1,67 six months after production start and continuous improvement.

Are the inspection procedures for D/TLD characteristics suitable to uncover defects?E.g. precision matched to tolerances, maintenance, calibration, verification of inspection capability.

Is traceability guaranteed as a result of sufficient identification?For e.g. parts source information, production date, batch / lot no., despatch date, delivery note no.

Are all D/TLD characteristics sufficiently taken into consideration?

Is the scientific evaluation of the materials that are delivered to Volkswagen monitored in terms of their environmental friendliness even beyond the time of delivery and is Volkswagen informed of any critical cases? (Gazetted in the Environmental Liability Act sect. 8 & 9, Product Liability)

Are personnel (operator/inspector) who influence / confirm the D/TLD characteristics trained for their particular responsibility?

Required value, minutes, confirmation by signatureInstruction about the requirement of adherence to laws, effects of deviation / non-compliance,responsibility, information flow, quarantining, identification.

Are the instructions for foreign personnel (operator / inspector) available in their own language?Alternatively verification of the command of the language (e.g. by a school leaver certificate.)

Is the suitability of personnel (operator / inspector) documented to prove that they are qualified for their particular task or function?For e.g. qualification for process, verification through induction and random sample checks thereafter.

Are other qualified employees available to replace personnel if necessary?

Page 2 of 2

Notes:

Literature

Further details:

- VDA 6 Part 1: Quality management in the automotive industry„ Quality management system audit“

( Based on DIN EN ISO 9001 and DIN EN ISO 9004 - 1)

- ISO / TS 16949

- VDA 6 Part 3: Process audit

- VDA 6 Part 5: Product audit

The respective valid versions of VDA documents Volumes 1 to 7 are alsoapplicable.