D TOYOTA MOTOR ENGINEERING & MANUFACTURING NORTH AMERICA Supplier Quality Assurance Manual PARTS & COMPONENTS (ISSUE 4F, JANUARY 2008) “IMPORTANT DOCUMENT CONTROL INFORMATION"* ‘Any printed copy of this document is considered an uncontrolled version and may not be current. This electronic version located at ‘Toyotasupplier.com is the controlled and current version, © 2006, Toyota Motor Engineering & Manufacturing North AmericaChapter 1 Chapter Il Chapter Ill Chapter IV TABLE OF CONTENTS: Introduction and General Reqt ments Executive Level Expectations Coordinating Manufacturer for Common Parts Inspection Control Responsit Safety, Emission, Regulation and MVSS Parts Identification and Traceability Field Quality Assurance Confidentiality Service Parts Quality Production Preparation 2.0 24 22 23 2.4 2.5 26 27 28 29 2.10 2 2.12 2.13 2.44 Milestone Overview ‘Supplier Parts Master Plan (SPMP) Designated Control Characteristics ([Pc], PpK, CpK) Part Evaluation Plan (PEP) Part Inspection Standard (VS) Boundary Samples Manufacturing Quality Chart (MQC) ‘Checking Fixtures, Gages, & Test Equipment Mating Part / Component Request ‘Sample Part Submission Color and Grain Approval Activities Part Approval (PA) ‘Quality Readiness Checksheet (QRC) > Final Approval (FA) Quality improvement Request (IR) Mass Production 3.0 Mass Production Overview Non-Conformance Handling Quality Tuning Request (QTR) Process Change Request (PCR) Field Quality Improvement Appendix 40 44 42 ‘Acronyms Symbols Definitions SSE a [REVISION Augi 31 2005. Tas oir irgraara TABLE OF CONTENTS ansahng Nh At Fae ott‘SECTION 1,0 — EXECUTIVE LEVEL EXPECTATIONS, INTRODUCTION AND GENERAL INFORMATION ==" PURPOSE: To provide an overview of Toyota's quality assurance expectations to supplier executive management and communicate Toyota's commitment to partnering with our supplier to ensure the highest quality products for our customers. EXPLANATION: 1, Toyota's philosophy is to develop and maintain 2 collaborative relationship with suppliers ‘based on mutual prosperity, excellent communication and joint problem solving. 2, Toyota's Supplier Quality Assurance Manual (SQAM)is the governing quality requirement document for parts and components (includes metalic threaded fastoners, fabric and leather) that expresses Toyota's intemal quality assurance philosophy, rules, ‘and policy to suppliers. The SQAM applies to all suppliers and the suppliers are ‘expected to comply with stated requirements. 3, Toyota provides several directive manuals, documents, etc. to suppliers, but SQAM is the top level policy for supplier quality assurance. 4. As SQAM secretariat and authorizer TMMNA QD will revise SQAM contents as business needs dictate and develop SQAM training and content interpretation. Corresponding revision levels will be noted on appropriate page(s), and a fevision record will be ‘maintained for reference. 5, Each Toyota NAMC Quality Control General Manager is responsible to consistently administer SQAM requirements to Toyola’s North American supply base. 6. Toyota Motor Manufacturing North America recognizes the benefit for suppliers to ‘comply with other domestic or intemational quality standards (.. TS 16949, QS 9000, 1809000, ete.) and to utlize reference manuals andior tools from the Automotive Industry Action Group (AIAG). Toyota encourages all participating suppliers to ensure proper and consistant application of these standards and tools to enhance thelr quality assurance activites and management methods, as long as there is no conflict with the SQAM requirements. REQUIREMENTS: 1. The supplior’s executive management must clearly define, document, and effectively deploy their quality assurance system (e.g. policies, procedures, standardized work, etc.) to achieve Toyota/Lexus qualiy targets from the part development/production preparation stage through mass production, Including customer warranty and service parts. SE RESON Taner aire SECTION ——a. August 2005 andaouina Neth Ave PAGE ToteSECTION 1.0 — EXECUTIVE LEVEL EXPECTATIONS ‘=H INTRODUCTION AND GENERAL INFORMATION ‘A permanent management level position must be established or designated as the executive management representative for overall quality assurance. This postion will be responsible for comprehension, deployment, and ongoing intemal training of SQAM requirements. A succession plan must be in place to insure smooth transition and retention of SQAM knowledge. Approactive approach to quality assurance and improvement inatives (e.g. bull-in- quality, effective communication, response to the customer voica, etc.) aimed to aciieve zero defects and prevent flow-out of non-conformances is required from all supplier. ‘Achiovernent of quality targets prior tothe start of mass production and stable quality through the mass production lfe cycle is required from all suppliers. All suppliers are required to manage nonconforming or suspect parts quality with a ‘system that includes prompt (ime of discovery) notification to Toyota, containment leadership and recurrence prevention ‘The supplier is fully responsible for carrying-out supplemental operations such as. special inspections, product sorts, rework, etc. when quality targets and standards are ‘not being achieved consistently, regardless of location. Printed copies of SQAM must be maintained in a controlled and secure manner and identified as “FOR REFERENCE ONLY". The e-SQAM located on Toyotasupplier.com Is considered the only current version. ‘All suppliers of North American sourced parts must identify and maintain their key quality contacts information through the Toyota Centralized Contact Information (CCl) database via ToyotaSupplier.com. Toyota contact information for each NAMC can also be obtained through CCl. All printed copies should be utilized for reference only, as daily changes to the CCI database may occur. ‘All suppliers must have a document retention policy forall SQAM related information (Le. records, reports, data, etc.) thal complies with Toyota policies and government regulations/requirements. Revo Toate Erareara Ser 70) “agust 2005 Nenare Nat Amerce PAGE Zotz) SECTION 1.1 COORDINATING MANUFACTURER for COMMON PARTS “st INTRODUCTION AND GENERAL INFORMATION = PURPOSE: If more than one NAMC will use a supplied part, one of them will be designated as the Coordinating Manufacturer to help simply and streamline SQAM related communications. EXPLANATION: 1. Common parts are those provided to more than one NAMC (includes Toyota overseas manufacturing locations) by the same supplier, wth the same part number, manufactured at the common facility, and using common tooling. 2. The main role ofthe Coordinating Manufacturer isto provide the supplier witha primary window contact to facitate activites related to SQAM documentation between the other NAMCsS for direction or approval 3, One specific NAMC QC/QE Department will be designated by TMMNA Quality Division 1s the Coordinating Manufacturer and this information will be communicated to the supplier REQUIREMENTS: 1. The supplier must follow the document routing and responsibilities indicated in Table 41.1 -4: Documentation Flow for Common Parts, 2. The supplier may receive communicétions or instructions from either the Coordinating Manufacturer or another NAMC, but al part changes or qualily standard changes must first be approved by the Coordinating Manufacturer. 3. The supplier should provide all information to each using NAMC location. T550E__4_ [REVISION Toysa a Engines ‘SECTION z ‘Rugust 200 Wensecg Nath Ae PAGESECTION 1,2 — INSPECTION CONTROL RESPONSIBILITY "5 INTRODUCTION AND GENERAL INFORMATION == PURPOSE: To describe the supply chain business flow, and identify quality assurance responsibilities therein. EXPLANATION: Self Procured Parts Parts / components sourced and purchased by the tler 1 supplier for use in a level t part. The tier 1 supplier is totally responsible for assuring level 2 and below part quality Controlled Self Procured Parts Toyota specifies the source forthe part / component, but the tier 1 supplier purchases the part for use ina level 1 part. The tier 1 suppliers totally responsible for part quality. Includes all raw materials brokered by Toyota under the Centralized Purchasing System (CPS) Program. Direct Supply Parts Parts components sourced and purchased by Toyota, and provided tothe ter 4 supplier for use ina level 1 part. The NAMC QCIQE Department is primarily responsible for part quailty, with support from the tier 1 supplier to manage dally ‘ualty related items. REQUIREMENTS “The supply chain inspection control responsibilly for suppliers is defined by two basic business. cases; self procured parts and direct supply parts Case A: Solf Procured Parts (includes “controlled” self procured parts) Ter Conia Teta ually {Uore 2 ons bat, “Toyola NAMIC (SUE _—7 [Revision — Tawar arta ‘SECTION ‘August 2005 rene Ra Ars PAGESECTION 1.2 ~ INSPECTION CONTROL RESPONSIBILITY, **7* INTRODUCTION AND GENERAL INFORMATION = 41. The supplier (ier 1) has total responsibility for part quality, and is expected to coordinate and manage activities with their suppliers (tier 2/3) to ensure consistency from production preparation through the mass production life cycle. 2. Activities to assure self procured part quality must be in accordance with SQAM requirements, and the lower tier supplier must have basic QA/QC systems and methods inplace that are consistent with SQAM. 3. Self procured parts must achieve all quality targets and not impact production preparation or mass production launch schedules. 4, The supplier (lier 1) is expected to have a formal policy and system in place to select ‘and periodically evaluate the performance of their suppliers. 5. The supplier (tier 1) has responsibilty to notily thelr suppliers (Tier 2 and below) that Toyota has the authority to participate in any quality audit or visit to ther facility. Case B: Direct Supply Parts Direct Supbly Parts (Level 2 aiid below) Tier 2/3" 4 | Contract Toyota NAMC * Tier 1 controls quality of level 1 part, plus specified tems of Tier 2/8 parts ** Toyota contro quality of level 2 and below parts 1. NAMC QGIQE Department has Inspection Control Function (ICF) responsibilty and ‘assumes primary responsibilty forall quality assurance activities from sourcing SECTION 1.3 - SAFETY(Y), EMISSION (¥), REGULATION (W) and MVSS PARTS ‘INTRODUCTION AND GENERAL INFORMATION “= PURPOSE: All North American sourced parts that have raw materials andor manufacturing ‘methods designated or identified as safety), emission (7), regulatory) andlor MVSS as specified on the drawing or other documents created by Toyota forthe supplier must comply with specific quality assurance raquleements EXPLANATION: The acronym MVSS willbe used throughout this section and the manual to represent the folowing symbols: + © ~ Federal Motor Vehicle Safety Standard for United States stination vehicles + ©= Canadian Motor Vehicle Safety Standard for Canadian cstinaion vehles + ©= Japan Mioisres of Land, Inasirucure and Transportation for Japan destination vehicles REQUIREMENTS: 1. Ata minimum, Design Review Based on Failure Mode (DRBFM) or DFMEA and “Machine/Process Failure Mode Effects and Analysis (PFMEA) or equivalent docurient ‘must be developed forall paris. A PEMEA or equivalent document must include reviews of both the equipment and the process. These actives should be completed prior to drawing release, toolingipracess design, Manufacturing Quality Chart (MGC), paar Inspection Standard, and Inspection Plan development. 2. ‘Significant produc failure items identified through DRBFM or DFMEA development that are not corrected with a design change, must be indicated on the PFMEA or equivalent east Preparation eet rose ont muse Key tatesones (Gates) anc Key Events ‘som Key Requirements Chapter Section 21-2.18 sp Fr cane aes ign 28- sae 829 Sane Pate a ) [a nee | kao a aeSECTION 2.0 - MILESTONE OVERVIEW ‘== PRODUCTION PREPARATION =" ‘COMPLETION EXPECTATION: All requirements as specified in the TPMS and as defined by SQAM, must be achieved per plan in advance of mass production start, but not limited to: ‘+ Part durability / reliability verification Quality assurance verification Process capability verification ‘Sample part submission QA related document completion QA/ QC related requirements DOCUMENT SUBMISSION: All quality related project documents as required by SAM must be completed, maintained, ‘and managed by the supplier in accordance to the TPMS. ‘QUALITY PREPARATION PHASES: ‘Quality assurance preparation has 4 main phases: Phase 1: Planning Phaze 2: Initial Evaluation Phase 3: Final Verification Phase 4: Mass Production Launch Phase 1 ~ Planning A. Main Objective: To assure clear expectation and understanding of quality requirements prior to drawing release and tooling kick-off meeting, B. Supplier Responsibities: ‘The quality planning stage must commence immediately ater sourcing decision through drawing release, SPMP issuance, and tooling K/O meeting. The quality planning phase includes the following key requirements: 41) Studylestablish design quality requirements inciuing ertical quay criteria. 2) Communicate (Pc), Cpk, and boundary sample characteristics and expectations (Reference SQAM Sections 2.2 and 2.5) 3) Establish cca sub-supplier qually conto titra 4) Develop Part Inspection Standard (Reference SQAM Section 2.4) 5) Develop Manufacturing Quality Charts (Reference SQAM Section 2.5) 8) Develop inal Part Evaluation Plan (Reference SQAM Section 2.) 7) Develop too o evaluate potential process fallure moses (e, PFMEA) 8) Suppliers may be requested to join Simutaneous Engineering (SE) Activity (SSE —7_REVSON Toaitoer prac ‘August 2005 Norton No Aree