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SETTING THE STANDARD

Q1 THIRD
EDITION

Go Further
3RD EDITION
Ford W orld Hea d qu a rt e rs
1 A m e ri c a n Road, D e a r b o r n , MI 4 8 1 2 6 U S A

h t t p s : / / w e b . q p r. f o r d . c o m / s t a / Q 1 . h t m l
C O N TE N TS

Introduction 3

Q1 Requirements 7

Q1 Score 13

Benefits of Q1 15

3RD EDITION
Applying for Q1 and Status Codes 16

Appendix A – Quality Performance 19

Appendix B – Capable Systems 27

Appendix C – Warranty Performance 33

Appendix D – Delivery Performance 37

Appendix E – Q1 Status Codes 39

Appendix F 3rd Edition Summary of Changes 40

Ford Motor Company


Supplier Technical Assistance Appendix G – Contacts 42

JUNE 2020

Copyright © Ford Motor Company 2020


INTRODUCTION

Q1 was launched in February 2002 and is delivering results. By


recognizing quality achievement at the manufacturing site level, and
by applying consistent, understandable metrics to drive high quality, Q1
has become the quality Trustmark worldwide.

In today’s dynamic marketplace, companies that don’t improve get left


behind. The expectations and requirements in Q1 have been enhanced
to more accurately and transparently reflect supplier performance in
relation to the total Ford enterprise.

What Is Q1?
It is a set of fundamental quality and manufacturing disciplines which,
when followed, ensure a supplier’s success and drive a supplier’s
continuous improvement. Suppliers are expected to attain a certain
level of performance, to put the tools in place to maintain excellence,
and to improve with each passing year.
Suppliers aren’t expected to achieve Q1 independently – it is a
relationship. Ford stands ready to offer suppliers its expertise,
experience and assistance throughout the Q1 quality journey.

Q1 puts the discipline in place to achieve consistent excellence and


guides cooperation between Ford and its suppliers for superior quality
execution.

3RD EDITION Approach:


Q1 applies a few vital metrics to determine which suppliers qualify for
Q1 – the same measurements will be used to establish who will maintain
Q1. Q1 3rd Edition has a refined scoring method which includes
• Warranty Performance
• APQP launch Performance
• Quality Reject rate metrics.
• Delivery Performance
The Q1 endorsement process has also been streamlined.

Summary of Changes:
The Q1 3rd Edition requirements are effective June 2020.A
summary of the content changes is provided in Appendix F.

2 3
Copyright © Ford Motor Company 2020
Q1 REQUIREMENTS
Any external supplier manufacturing facility which currently supplies
production or service product to Ford and its Joint Ventures is eligible for Q1
consideration. Subcontractors are not eligible for Q1 status.
Q1 means that the supplier facility achieves excellence in these key areas:
Quality Performance, Capable Systems, Warranty Performance, and
Delivery Performance.
Q1 reports these Performance Categories (and associated Metrics) through
the Supplier Improvement Metrics (SIM) system. Suppliers can look up their
Q1 status and their overall Q1 score (updated weekly) in their SIM
performance reports. The Q1 performance metrics are discussed in more
detail in Appendix A.

The Q1 Performance Categories are summarized below:

Quality Performance
What is the supplier’s performance history with Ford?
Q1 uses five key Metrics in determining a supplier’s
Quality Performance Category score:
-Production and Service PPM: Does a supplier consistenly deliver high
quality products when compared against the industry standards?
-Production and Service QR Rate: Does the supplier provide high quality
parts to Ford and JV plants and service depots, minimizing disruptions?
-Stop Shipments: Is vehicle rework, modification or reinspection
necessary due to poor product availability or supplier quality?
3RD EDITION Q1 suppliers are responsible for the total quality of the products they
provide to Ford. This means that Q1 suppliers are responsible not just
for their own sites, but, unless otherwise stated in the Purchase Order
contract, also for the quality of any product which their sub-tier
suppliers manufacture.

Capable Systems
Q1 uses 3 key Metrics to define the capable systems Category:
Industry Standards:
What are the capabilities of a supplier’s processes and systems?
Q1 evaluates this aspect of business management by third party certification to
IATF 16949 quality management standards, and to the ISO 14001
environmental standard. Suppliers must also complete a self-assessment to
MMOG / LE, achieving level A. And fullfill special process requirements.
Compliance to these standards is required to attain and maintain Q1 status.
4 Capable systems are discussed in more detail in Appendix B. 5
Copyright © Ford Motor Company 2020
Q1 REQUIREMENTS continued

Capable Systems continued:


Q1 Manufacturing Site Assessment (Q1MSA):

Does the supplier comply with their own processes, and is there
continuous improvement?
The Q1 Manufacturing Site Assessment determines if the site satisfies
Q1 process requirements, whether the supplier is performing to
customer expectations, and will identify any opportunity for
improvement.
Are systems and processes still operating at the same high level as
when the supplier achieved Q1 status? Have performance or
manufacturing process capabilities advanced in order to meet or
exceed increasing market expectations?
APQP Launch Performance:
How well is the supplier supporting launches as measured by Advanced
Quality Planning (APQP) for Ford manufacturing facilities?
In rating APQP Launch Performance, site engineers use:
- On time Schedule A submissions
- Escalation of open issues
- Providing robust completion evidence for APQP deliverables
- Sub-supplier APQP management
- Maintaining PPAP timing, actions, and documentation
- Management of Supplier Quality AIMS issues
- Service part availability at launch.

3RD EDITION Warranty Performance


Does the supplier support Warranty improvement, including minimal Ford
intervention due to supplier failure?
Field Service Actions: Has Ford had to intervene for the end
customer because of a supplier failure?
Warranty R/1000 Performance (Production only): Does the
supplier show reduction in repairs / 1000 and continuously
improve their manufacturing and supply processes to decrease
warranty?

Delivery Performance
Do products arrive on time, at the correct location, in the proper quantity
and with the correct information?
Delivery rating maintained at 81 points or higher for all ship points
6 associated with the manufacturing location (reported in SUPER-G) 7
Copyright © Ford Motor Company 2020
Q1 REQUIREMENTS continued

Table 1: Q1 Attainment and Maintenance Thresholds Q1 Maintenance and Attainment Thresholds


Q1 Category Requirement Threshold to achieve Q1 Threshold to maintain Q1 Increased levels of performance are expected when suppliers are
Quality Performance Commodity PPM: For 6 month worst commodity PPM less than 6 month worst commodity PPM less than
both Production and 1.5x Industry Commodity PPM (that is 2x Industry Commodity PPM and no more
working toward attaining Q1 Status. The Table on the left defines
Service used for Q1) for both Production and than 2 out of 6 individual months at or the requirements for each Metric in Q1 Attainment and Q1
Service above 2x Individual month commodity Maintenance.
PPM (that is used for Q1) for both
Production and Service Commodity PPM
Metric score >0 points) Q1 Action Recommended Customer Endorsement
QR Rate (6 month) For both Production and Service, QR Rate For both Production and Service, QR
(All Suppliers) Metric score > 8 points. Rate Metric score >0 points. Are the supplier’s customers satisfied?
Stop Shipments None in most recent 6 months with any Not more than one in the most recent 6 Once the Supplier Site has satisfied Q1 requirements in Quality
supplier responsibility months with any supplier responsibility
(Stop Shipment Metric score = 20 points) (Stop Shipment Metric score > 0 points) Performance, Capable Systems, Warranty Performance, and Delivery
Q1 Action Recommended
Performance the Supplier Site will obtain customer endorsements from
Capable Systems Q1 Manufacturing Site Acceptable current Q1 Manufacturing Site Q1MSA Metric score > 0 points [no MSA MP&L (Material Planning & Logistics), FCSD (Ford Customer Service
Assessment (Q1MSA) Assessment or acceptable Corrective is Unacceptable or CAP is Unacceptable Department) for service parts, and Supplier Technical Assistance (STA).
Action Plan. status assigned by the STA site engineer]
Q1 Action Recommended
(Q1MSA Metric score = 15 points)
Each supplier must obtain customer endorsements proving it
APQP Launch “Acceptable” or better APQP Launch Q1 maintained with any Metric score > 0 consistently meets the needs of its Ford customers.
Performance Performance Rating (Metric score >3 points or not applicable.
points) or not applicable
Industry Standards Certifications / assessment requirements Certifications / assessment requirements
(IATF, ISO 14001, met and not expired (Industry Standards met and not expired (Industry Standards Endorsements are not acceptable if more than 6 months old, and
MMOG/LE) Metric score = 10 points) Metric score >0 points) Q1 Action Recommended are only applicable where there are at least 3 months of receipts
See Table 13 below for details
during the most recent 6 mature months for the endorsing
Warranty Field Service Actions None in most recent 6 months with any None in most recent 6 months with any organization.
Performance supplier responsibility supplier responsibility
(FSA Metric score = 15 points) (FSA Metric score = 15 points)
Q1 Action Recommended Continuous Improvement
Warranty R/1000 Warranty R/1000 Performance Metric Q1 maintained with Metric
(Production only) score >3 points or no warranty reported Score > 2 points or no warranty reported Are suppliers getting better each year?
(Warranty Metric score = 05 points)
The ability to drive continuous improvement is built into Q1 and Q1MSA.
Delivery For both Production For every delivery rating, (except those Delivery Performance Metric score > 0 To maintain Q1 status, suppliers must embrace continuous improvement.
Performance and Service all regions identified in SIM as “not considered for points [Either 6 month weighted average, With this in mind, the Q1 thresholds for performance metrics and site
which report delivery Q1”) the 6 month weighted average and or any of the 3 most recent available
ratings to SIM via the 3 most recent available monthly ratings monthly ratings from the last 7 calendar assessment may be raised to encourage overall continuous improvement.
MP&L’s “SUPER G” from the last 7 calendar months (may months (including the immature month) In the final analysis, the automotive customer of tomorrow will demand
system include the immature month) must all be 81 points or higher]
81 points or higher. The site must have at Q1 Action Recommended and accept no less.
least 1 delivery rating 6 or more months
old.
Attainment Only Customer Endorsement must be obtained from STA, Endorsement not required to maintain
Endorsements FCSD and MP&L, as applicable Q1.

Active Site Status Receipts Receipts are required for at least 3 of the Supplier Sites with no receipts for the last
most recent available 6 mature months, 13 consecutive calendar months are
and delivery ratings exist for at least 3 of subject to inactivation and loss of Q1
the most recent available 7 calendar status unless future business is confirmed
months for the supplier to be eligible for by the buyer.
Q1.
Overall Q1 score Must be 80 points or higher Must be 80 points or higher AND have no
0 point Metric scores as noted above. Q1
Action Recommended
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Copyright © Ford Motor Company 2020
Q1 SCORE

Q1 Score = Quality Performance score + Capable Systems score


+ Warranty Performance score + Delivery Performance score
Table 2: Q1 Performance Categories and Metrics How are the Categories tabulated to obtain a final Q1 score?

Q1 Maximum METRICS Maximum Each Q1 Category score is calculated using the equation below:
CATEGORIES Possible Possible METRIC
CATEGORY score (Sum of earned Metric points) x (Q1 Category points)
score (Sum of possible Metric points)

= Total Q1 Category points earned


Note: See Metric points in each Category in Table 2 at left.
Quality Performance Production Commodity PPM 10 points

Service Commodity PPM 10 points The Total Q1 score is calculated by summing the Q1 Category
30 points
scores:
Production QR Rate 10 points Quality Performance Category score + Capable Systems Category
score + Warranty Performance Category score + Delivery Performance
Service QR Rate 10 points Category score = Total Q1 Score earned

Stop Ships 20 points

Capable Systems Q1MSA 15 points Metric Exclusions


Based on the supplier circumstances, certain Metric scores may not
30 points Industry Standards
apply or may be inactive. Only Metrics with active performance will
(IATF 16949, ISO 14001, 10 points
impact the Category Q1 score for Q1 eligibility. Examples include:
MMOG/LE)
• Supplier has only Service parts. Therefore, for example, inactive or
production Metrics are excluded from scoring.
• During Q1 attainment, only Metrics with active
performance are considered.
APQP / Launch Performance 5 points
• For a Supplier that is not launching new parts or material, the APQP
Warranty Performance 20 points Field Service Actions (FSA) 15 points Launch Performance Metric is not active and will not be considered.
• If there are NO active Metrics in an entire Category, the Category
Warranty (R/1000) 5 points will be scored at a default value of 80% of the possible Category
score until the Category has active metrics.
Delivery Performance 20 points Status vs. 81 Rating – 10 points
Production

Status vs. 81 Rating – Service 10 points

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Copyright © Ford Motor Company 2020
BENEFITS OF Q1

Your Q1 status has many benefits, most importantly, membership


among the industry’s elite, with the associated respect and
rewards:

• Recognition: Flying the Q1 flag and displaying the Q1 plaque is a


sign that your facility stands shoulder to shoulder with the best
suppliers in the world.

• Publicity and Advertising Privileges: Q1 status will enable you to


advertise and publicize your company with the additional prestige
of Q1. Suppliers are required to obtain approval from Ford Public
Affairs as a prerequisite of use.

• Self-Certification: As a Q1 supplier, you will be eligible, with STA


concurrence, to self-certify to the PPAP requirements of
IATF 16949

• World Excellence Site Award: Q1 suppliers will be considered for


this award, which acknowledges the best of the best.

• Consideration for additional business: Q1 category will help


identify those suppliers to be considered as the best suppliers for
our new program sourcing.

• Preferred Status with Ford: Only Q1 facilities are preferred for


new product development and sourcing.

If Q1 thresholds are not maintained, a Q1 supplier will be


recommended for Q1 Status Revocation, and if revoked, will
lose all benefits stated above.

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Copyright © Ford Motor Company 2020
APPLYING FOR Q1 Q1 ELIGIBILITY AND STATUS CODES

Q1 Application Q1 Eligibility

Ford Supplier Technical Assistance (STA) will help you through the • Non-manufacturing facilities are not eligible for Q1 status. Examples
Q1 process. First, contact your Ford STA site engineer. They will of non-manufacturing facilities include, but are not limited to:
guide you through the steps necessary before you can make a warehouses, In-Line Vehicle Sequencing Centers (ILVS), P.O. Boxes,
formal Q1 application: accounting offices, sales offices, prototype design facilities, repair
• Is your site eligible for Q1 status? facilities, rework shops, distributors and ship points.
• Manufacturing locations which cannot generate all Q1 metrics,
• What is your classification: a new supplier, a new manufacturing site of
an existing supplier, or a manufacturing site attempting to qualify initially including quality and delivery performance, are not eligible for Q1.
for Q1 status? Note: Q1 metrics managed outside of SIM and approved by STAStrategy may
Your facility will conduct a self-evaluation to ensure that you meet the be used on an exception basis to represent the Q1 required performance
Q1 criteria. Once your facility is ready, based on the site metrics.
performance reported in SIM (against Q1 thresholds), the next step • Supplier Site must show at least one performance rating 6 months old
is to obtain the necessary customer endorsements by contacting the (production and/or Service metrics) and have at least 3 months of
customers for specific Q1 endorsement requirements. Once the metrics (delivery metrics may include the immature month).
required evidence has been approved and the endorsement • Supplier Sites must be STA active in GSDB/SIM with an assigned
Proforma signed, the endorsements are valid for six months from the STA site engineer and STA Organization.
date of the signature on the endorsement documents.
The next step in the Q1 process is formal application to Ford STA. When Q1 Status Codes
your self-evaluation shows your site to be up to Q1 standards (Q1 Q1 Status Codes are used to manage the Q1 process. Reference
Attainment Requirements, Page 7), and you have collected the STA, FCSD Appendix E for full descriptions of each Status Code.
and MP&L endorsements, as applicable, notify your STA site engineer in
writing, along with documentation of your certification to IATF 16949 and
ISO 14001, and compliance with MMOG / LE at Level A. Important Notes:
Next, Ford STA may schedule a Q1 on-site evaluation to review your Q1 is a Ford-exclusive designation. Facilities that no longer ship to Ford
qualifications for Q1. The responsible STA manager will provide a final or our JV partners may not advertise their Q1 status or fly the Q1 flag.
recommendation based on demonstrated site capabilities, performance
For external production suppliers, Ford Purchasing Supplier Technical
metrics, Manufacturing Site Assessment and the overall Q1 score Assistance (STA) administers the Q1 program globally. For suppliers of
maintained during the prior six months of mature data. service products, the responsible FCSD quality activity administers the Q1
STA Site Engineer reviews the Supplier Site data for conformance program globally.
with the Q1 Requirements as stated above and ensures all Access Details Online:
endorsements are obtained, are not expired and are in SIM. This document and information relating to Q1 are accessible to
• If the Supplier Site meets all Q1 Requirements the Q1 status
is updated in SIM and the Supplier Site is notified with a Q1 suppliers on the Ford Supplier Portal (FSP) at:
Letter bearing the required STA and Purchasing signatures. https://web.qpr.ford.com/sta/Q1.html
• The Q1 Plaque and Flag are ordered, and the STA
engineer delivers them to the Supplier Site as appropriate.

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Copyright © Ford Motor Company 2020
APPENDIX A: Quality Performance

Table 3: Quality Performance Metrics


The Quality Performance Category
Quality Performance
(A) (B) (C) (D) (E) Quality Performance for Q1 consists of 5 key metrics, shown in Table 3.
Metric Production Service Production Service QR Stop The supplier’s Metric points earned are used to determine the Quality
Commodity Commodity QR Rate Rate Shipments
PPM PPM Performance Category score.
Maximum Metric 10 10 10 10 20
points
Must have Must have Must have Must have Production
Active Metric Criteria production service production service sites only (A) & (B) – Commodity PPM for Production and Service
receipts receipts receipts within receipts with receipts
within 6 within 6 6 mature within 6 within the (0-10 Metric points Each)
mature mature months mature past 12 A supplier gains Q1 points by outperforming the industry commodity
months months months months
PPM (rated on the percentage above or below the industry commodity
Table 4: Commodity PPM Thresholds PPM). If a site provides multiple commodities, it will only receive points
for the worst performing commodity for production and for service,
6 Month Commodity PPM performance respectively. See Table 4 for the corresponding Metric point criteria.
Performance vs. Q1 Industry Metric points
Commodity PPM (Towards Q1 score in SIM)
(Performance vs. Q1 Level in SIM)
• The industry commodity PPM level is locked for 12 months based on
100% 10 points
75% to 99.99% 9 points the prior 12-month industry commodity PPM for each commodity for
25% to 74.99% 8 points
both production and service and typically updated in the first quarter.
0% to 24.99% 7 points
-.01% to -24.99% 6 points • The supplier must have 3 or more months of receipts in the last 6
-25% to -49.99% 5 points
-50% to -74.99% 4 points mature months for either Production or Service.
-75% to -99.99% 3 points
Worse than -100% 2 points • PPM score and Commodity are determined separately for Production
Worse than -100% with “0 point” Criteria 0 points and Service, and results in two separate PPM Metric scores
Satisfied
The “0 point” criteria are based on the 6 month Commodity PPM and the number of • Industry is defined as all external supplier shipments to Ford of part
individual months out of the 6 mature months in which the commodity performance
exceeds the Q1 industry commodity level as defined below. numbers with the same commodity code.
Currently the “0 point” Criteria are:
For Production and Service: the worst 6 month Commodity PPM for the site “used for Q1” • Raw Material sites are excluded from commodity PPM Metric scoring.
> 2x Q1 Industry Commodity PPM and 3 or more months at the “Worse than -100%” level
(1 point) results in a score of 0. • For any Q1 Metric that is not available (not active), an “Incomplete” icon
The number of months at the “Worse than -100%” level (1 point) is displayed in SIM with
the note “2X Industry Threshold”. will be noted on the total Q1 score and the Metric detail score.

Note that the number of months and multiple of the Q1 industry commodity level can be
altered for all production suppliers and/or all service suppliers based on performance. • Note: examples of Q1 scoring calculations are available through Ford
Notice will be provided prior to implementing any such change.
Supplier Portal on https://web.qpr.ford.com/sta/Q1.html

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Copyright © Ford Motor Company 2020
APPENDIX A: Quality Performance continued

Table 5: Phase In Limits on Commodity PPM


(Lowest Score Allowed)
Phase In Metric
(Completed per Effective Range Q1 Metric score
(A) & (B) – Commodity PPM for Production and Service
Individual (Same for Service Limit (Lowest
continued
Commodity) and Production) score Allowed)
Phase In Limits on commodity PPM (Lowest Score Allowed)
115.1 to 120 2
110.1 to 115 3 (Individual Commodity PPM Phase-In Metrics)
Commodity PPM 105.1 to 110 4
A Phase In Limit strategy has been developed to protect suppliers from
100.1 to 105 5
excessively low Q1 commodity PPM scoring in certain designated
0 to 100 7
situations. These Limits are applied to the base Q1 score to set a floor
12.1 to 15 4
Percentage of Site on scoring for lower levels of PPM, percent volume, and number of
10.1 to 12 5
Volume rejects (shown in Table 5 at left). This results in an Applied PPM score
8.1 to 10 5
for each Commodity.
6.1 to 8 6
0 to 6 Not Used for Q1
• The Commodity with the lowest Applied score will be used to
6 to 7 4
determine the Site Commodity PPM score for Production or Service
Total Pieces 5 to 5 5
Rejected 4 to 4 5
• The Q1 Metric score Limits (far right column Table 5) will raise the
0 to 3 7
Applied Commodity PPM score if the effective range (middle column
115.1 to 120 2
110.1 to 115 3 Table 5) applies and the associated Q1 Metric score Limit is higher
Site Overall PPM 105.1 to 110 4 than the Base Commodity PPM score calculated for the commodity.
100.1 to 105 5
0 to 100 7 • The Site Overall PPM applies at the top site level rather than individual
commodities, and can adjust the site applied score up from the worst
performing commodity score.

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Copyright © Ford Motor Company 2020
APPENDIX A: Quality Performance continued

(C) and (D) – QR Rate for Production and Service


(0-10 Metric points Each)

QR (Quality Reject) Rate is a normalized measure of unique QR


incidents per 100 opportunities for both Production and Service.
Table 6: QR Rate Opportunity Examples
Both Production and Service QR Rate Metrics contribute 10 Metric
points to the total Quality Performance Q1 Category score.

Prior 6 Months Receipt activity • The numerator (a QR Incident) includes QRs with >0 rejected
6M parts affecting PPM or chargebacks >$0.
Receiving Opportunity
site Part location 1 2 3 4 5 6 Denominator
• A unique QR Incident is any QR issued by a single Ford receiving
Multiple Parts - Multiple receiving locations - frequent shipments
locationfor a single supplier site code during one month, regardless
TESTA demo_part_A1 PL01A y y y y y y 6
TESTA demo_part_B2 PL01A y y y y y y 6 of the total quantity of parts rejected in the QR. Each QR counts only
TESTA demo_part_C3 PL01A y y y y y y 6
TESTA demo_part_D4 PL01A y y y y y y 6
once even if multiple part numbers are included in the QR.
TESTA demo_part_C3 PL03A y y 2 Note: For service parts, one QR is written per part number.
TESTA demo_part_D4 PL03A y y 2
TESTA demo_part_D4 PL04A y y y 3 One QR Opportunity exists where there is the following:
Monthly Opportunity
Denominator 5 6 5 4 6 5 31 • One part number received by a Ford or JV Receiving location with at
least one piece shipped to that Receiving location in a single month
Multiple Parts - Multiple receiving locations - infrequent shipments
TESTA demo_part_A1 PL01A y 1
TESTA demo_part_B2 PL01A y 1 Multiple QR Opportunities exist where there are multiple part numbers
TESTA demo_part_C3 PL01A y y 2
TESTA demo_part_D4 PL01A y 1 being received by multiple Ford Receiving locations over multiple
TESTA demo_part_C3 PL03A y 1
months
TESTA demo_part_D4 PL03A y 1
TESTA demo_part_D4 PL04A y 1 See Table 6 at left for examples of determination of the QR Opportunity
Monthly Opportunity
Denominator 2 1 1 1 1 2 8 (known as the “Denominator” in the QR Rate calculation in SIM)
• For production, colored parts are counted under one white part
(body in white)
• Incorporates only Ford receiving locations which are included in Q1
• For Service, receipts from each supplier site at all receiving
locations globally are combined before determining opportunities.
Service does not separate opportunities by receiving location.

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Copyright © Ford Motor Company 2020
APPENDIX A: Quality Performance continued

(C) and (D) – QR Ratefor Production and Service continued

Q1 QR Rate Metric score is determined by the QR Rate per 100


Table 7: QR Rate Scoring Thresholds
Opportunities Value, and the 3 Month vs. 6 Month Trend. If the
QR Rate Status QR Rate Trend Metric score monthly QR Rate is between 10 and 3, then the QR Rate is in the
(6 Month) (3 Month vs. “Trending” range. Within the “Trending” range:
6 Month)
• If the 3 month QR Rate is > 1.2 x 6 Month QR Rate, the trend is
Outstanding <3 N/A 10
(Raw Materials <1.5) Degrading
3 < Rate < 10 Improving 8 • If the 3 month QR Rate is < 0.8 x 6 Month QR Rate, the trend is Improving
Trending (Raw Materials 1.5 < Level 6
• If the trend is neither Degrading nor Improving, the trend is Level.
Rate < 7) Degrading 4
Unacceptable >10 N/A 0 • See Table 7 at left for threshold details.
(Raw Materials >7)
QR Rate thresholds for Raw Material suppliers are different and are shown in
Table 7 at left.

QR Rate calculation (for any given time period):


Table 8: Phase In Limits on QR Rate (Lowest Score Allowed)
= QR Incidents x 100
Effective Range QR Rate Metric QR Opportunities
QR Rate Phase-In Metric (Same for Service and score Limits
Production) (Lowest score Phase In Limits on QR Rate (Lowest Score Allowed)
Allowed)
(Phase-In Metrics)
1 6
Number of QR Incidents 2 4 Similar to PPM, and following similar rules, a limit strategy has been
>3 0 developed to protect suppliers from excessively low QR Rate
Active Months 1 4 scoring at low incident counts or activity levels. These Limits are
(Months with Receipts) 2 4 applied to the base QR Rate score to limit / cap low scoring for low
>3 0
number of QRs and low number of active months. This results in an
Applied QR Rate score.

The QR Rate Metric score Limits (table 8 at left, far right column)
will limit the QR Rate Metric score if the effective range (table 8 at
left, middle column) applies and the associated QR Rate Metric
score Limit is higher than the base QR Rate score calculated

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Copyright © Ford Motor Company 2020
APPENDIX A: Quality Performance continued

(E) –Stop Shipments

(0-20 Metric Points)


A Stop Shipment impacting Q1 is the containment of all affected
vehicles with a potential production vehicle concern, with any supplier
responsibility, already released by the plant but not yet in the hands of
dealers or customers. The Stop Shipment Q1 Metric score rates
Table 09: Stop Shipment Scoring Thresholds suppliers on their quantity of Stop Shipments in the most recent 6
months of production history as reported in SIM.

Stop Shipment Frequency Metric Points


With any Supplier Responsibility If Ford experiences one Stop Shipment in the most recent 6
0 in 6 most recent months 20 points
months, the supplier is not eligible to achieve Q1 status.
1 in most recent 6 months 8 points
2 or more in most recent 6 months 0 points
If Ford experiences two or more Stop Shipments in the most
recent 6 months, the supplier will be recommended to lose
Q1 status.
• Q1 impact may be waived if the supplier demonstrates proactive
intervention, the suspected component has not been used in Ford
production and the underlying root cause is resolved in a timely
manner, as agreed by STA.

• See Table 09 at left for Stop Shipment Metric scoring.

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Copyright © Ford Motor Company 2020
APPENDIX B: Capable Systems

The Capable Systems Category


Table 10: Capable Systems Metrics Before a supplier is considered for Q1, it must demonstrate system
capability through their Manufacturing Site Assessment (Q1MSA),
Capable Systems adherence to industry standards, and APQP Launch Performance.
(F) (G) (H)
Metric Q1 MSA (Q1 Industry Standards APQP Launch These capabilities must be maintained to attain or retain Q1 status
Manufacturing (IATF 16949, MMOG/LE, Performance (Table 10). Note that Table 1 above provides the criteria.
Site ISO 14001) (F) – Q1 Manufacturing Site Assessment (Q1MSA)
Assessment) Bulk material brokers may
be certified to ISO 9001 (0-15 Metric Points)
Maximum The Manufacturing Site Assessment defines Ford quality requirements
Metric 15 10 5
points and is a key component of Q1. The assessment reviews the fundamental
All Sites not in All Sites Except: APQP areas of the supplier quality system by evaluating how well the site has
Active Q1 Status “D”, Assessment planned for and demonstrated manufacturing process capability.
Metric “2”, “N”, “U”, “Z”. Q1 Status “D”, “2”, “N”, “U”, present and not
Criteria “Z”. “N/A” Suppliers must demonstrate these fundamentals based on objective
evidence in order to achieve and keep Q1.
Planned: Q1 status “A” with
Supplier Sites must meet all Q1MSA expectations or implement an
blank or future PE date.
effective corrective action plan. The Supplier Site will use the latest
Q1MSA assessment checklist available on the eQ1MSA and on the Q1
Page of the Ford Supplier Portal (FSP). Many supplier process
compliance requirements (continuous improvement, etc.), not
specifically scored in SIM, can affect the Q1 score through the Q1
Manufacturing SiteAssessment

Web Based Q1MSA:


https://web.sfq.ford.com/sfq/home/msaHome.do
(If the supplier cannot gain access to eQ1MSA, contact your Site STA
Engineer.)

(F) – Q1 Manufacturing Site Assessment (Q1MSA) continued


Supplier Site assessment frequency is Trigger based :

1. New Supplier
2. APQP Element
3. Q1 Metric Issue at Site STA discretion
4. Critical Supplier Process
26 27
Copyright © Ford Motor Company 2020
APPENDIX B: Capable Systems continued

Table 11: Q1MSA Scoring (F) – Q1 Manufacturing Site Assessment (Q1MSA) continued
Q1 Metric scoring for Q1MSA is based on the status of the Q1
Manufacturing Site Assessment or the Q1 Manufacturing Site
Assessment Status Timing Metric
score Assessment Action Plan (if required). Suppliers may earn up to 15
Performed & Acceptable On Time (Per Assessment Due Date) 15 Metric score points toward the Capable Systems Category score.
None MSA Submission Pending 15 Metric point adjustments will occur according to Table 11 at left.
Late Assessment (to due date Overdue (Automatic Deduction) 10
(G)– IndustryStandards
Set by Site STA)
(0-10 Metric points)
Unacceptable Poor Performance/Supplier Denies 0
for submission Suppliers must maintain 3rd party certification to IATF 16949 and ISO
Acceptable 15 14001. Self assessment to MMOG/LE at level A. Scoring is determined
CAP (Corrective Action Plan) If
per Table.12 based on status of supplier certification. 3rd party
Required None 15
certification and MMOG/LE self-assessment results are entered by the
CAP has Significant issues 4
supplier into GSDB Online via Ford Supplier Portal in Covisint.
CAP is Unacceptable 0
ISO 14001 – Environmental Management System
MSA has Significant issues 4
MSA is Unacceptable 0 Q1 suppliers share a key role in our environmental commitment and
efforts toward continuous improvement. All existing production and
service supplier manufacturing sites are to be third-party certified to the
Table 12: Industry Standard Scoring ISO 14001.
Industry Standard Status Time Frame Metric
IATF 16949 – Supplier Quality M a n a g e m e n t System
Score
IATF 16949 provide a framework of fundamental quality management
All Certifications / Assessments Up-to-Date (not expired) 10 systems that enable continuous improvement and emphasize defect
Note: MMOG/LE to be submitted prevention and the reduction of variation and inefficiency within the value
between 1 May and 31 July chain. Q1 suppliers are required to be third-party certified to IATF 16949.

ISO 14001 Expired 7 to 31 Days 4


MMOG / LE Self-Assessment
IATF 16949 Expired 7 to 31 Days 4
(Material Management System Requirements)
MMOG/LE missing / Expired / At ANY Time 0 MMOG / LE was developed to drive the use of fundamental material
Not level A (No Grace Period) management systems and processes that result in outstanding delivery
ISO 14001 Expired / Missing >31 Days 0 performance, exceptional customer satisfaction and continuous
improvement. MMOG/LE is available through http://www.aiag.org
IATF 16949 Expired / Missing >31 Days 0 Q1 suppliers are required to submit an annual self-assessment indicating
compliance to MMOG / LE at Level A. The appropriate self-assessment
result must be entered via GSDB online between May 1st and 31 July of
each year.
On-site reviews of supplier compliance to MMOG/LE will be conducted
at Ford’s discretion. If a supplier is found not to meet MMOG/LE Level A
requirements, and its corrective action plan does not meet MP&L‘s
requirements based on effectiveness and timeliness, Q1 status will be
28 jeopardized. 29
Copyright © Ford Motor Company 2020
APPENDIX B: Capable Systems continued

Table 13: APQP Launch Performance Scoring (H)– APQP Launch Performance
(0-5 Metric points)
Suppliers are expected to have a process in place to manage
The APQP Launch Performance is used to assess how effectively APQP Launch new vehicle program launches with the objective to achieve
activities are executed by the suppliers. flawless launch execution.
These include:
Supplier sites are rated on APQP Launch Performance out of 5
• On time Schedule A submissions
Metric score points per Table 13 at left. The supplier site's launch
• Escalation of open issues
performance is assessed by the Site STA engineer on a cadence
• Providing robust completion evidence for APQP deliverables
determined by Q1 status. Suppliers are assessed as one of four
• Sub-Supplier APQP Management
levels:
• Maintaining PPAP timing, actions and documentation
• Management of Supplier Quality AIMS issues - Outstanding Execution
• Service part availability at launch - Acceptable Execution
• Support of Material Required Dates, In Plant Dates (IPD), and Launch Ramp Up - Poor Execution
volumes - Not Applicable (Excluded)

Note: The supplier can still achieve 30 Category points for


APQP Launch Performance Scoring
Capable Systems in Q1 if Supplier Sites are rated “NotApplicable

Outstanding Execution (5 points): (N/A)” for APQP.


Supplier meets all launch requirements, maintains timing to support launch, and is
responsive and transparent with open issues.
Cadence based on Q1 Status:
Acceptable Execution (3 points): • Q1 MSA is done when there is a performance Gap to the metrics
Supplier manages issues during launch, informs the teams of changes in timing, for Q1 Supplier which requires MSA actions or at Site STA
and responds to open issues within required timing.
discretion. Refer Appendix B (F) for detail
Poor Execution (0 points): • If there is a significant change at any time in the Supplier Site’s
Supplier has chronic issues, does not bring issues forward, does not respond in a APQP Launch Performance, Site STA Engineers may update the
timely manner and may disrupt a launch.
rating accordingly.
Not Applicable No impact on Q1 score (excluded from Q1 scoring):
Supplier has not participated in launch activities in the past 12 months.

30 31
Copyright © Ford Motor Company 2020
APPENDIX C:Warranty Performance

The Warranty Performance Category


Table 14: Warranty Performance Scoring
Warranty Performance for Q1 consists of 2 key metrics, shown in
Table 14 at left. The supplier’s Metric points earned are used to
determine the Warranty Performance Category score.
Warranty Performance
Metric (I) (J) (I) – Field ServiceActions
FSA Warranty R/1000 (0-15 Metric Points)
(Field Service Actions) Performance
Field Service Actions impacting Q1 are those Field Service Actions
Maximum Metric 15 5 approved by Ford, with any supplier responsibility, which involve notification
points of dealers and/or vehicle owners, regarding inspection and/or correction of
a potential production vehicle concern.
Active Metric Must have production Must have warranty If any Field Service Actions with any supplier responsibility exist in
Criteria receipts within the last 48 R/1000 reported for the the most recent 6 full calendar months reported in SIM, 0 points will
months site (Production only) be awarded for the FSA Metric Score.

Note: Q1 impact of a Field Service Action may be waived if the supplier has
been proven not to be responsible for the Field Service Action, including
reassignment of responsibility to a sub-tier supplier, as agreed by a STA
Regional Director.

(J) – Warranty R/1000 Performance (Production only)


Warranty performance is measured by the improvement trend in repairs
per 1000 vehicles. A supplier gains Q1 points for demonstrated
improvement in warranty based on monthly warranty claims relative to
the site’s overall Ford business.
Suppliers must demonstrate knowledge of the warranty’s impact on
their parts to Ford Motor Company vehicles. Warranty metrics should
be integrated in the supplier’s QOS along with roadmap actions to
deliver significant year-over-year improvements. In addition, suppliers
must have plans in place to monitor low time in service warranty to
detect and to correct emerging customer concerns.

The Warranty R/1000 Performance metric score is based on the trend in


R/1000 data at 3 Months in Service (MIS) for the last 12 reported
months for the supplier manufacturing site. To identify the trend, the
R/1000 average is calculated for the 3, 6, and 12 Months of Production
time frames through the formula below.

R/1000 Average Calculation (for the timeframe):


Sum of the R/1000 values reported
32 Count of the number of Months with R/1000 values reported 33
Copyright © Ford Motor Company 2020
APPENDIX C:Warranty Performance

Table 15a: Warranty R/1000 Performance


Trend Thresholds and Scoring

R/1000 Trend Criteria Metric score (Up to 5 points)


(J) – Warranty R/1000 Performance continued
6 Month Average
vs. 6M < 12M +1 point Once the R/1000 performance is calculated for each time period, the 3,
12 Month Average 6, and 12 month averages are compared to determine the R/1000 trend
(positive/level or negative).
3 Month Average
vs. 3M < 6M +1 point
6 Month Average
3 Month Average • Suppliers start with a base score of 2 points
vs. 3M < 12M +1 point
12 Month Average • An additional point is awarded for each additional trend criterion
satisfied (see Table 15a at left)*.
Base score None 2 points
• R/1000 only applies to production parts

Table 15b: Warranty R/1000 Phase In Limits • Lowest score is limited to 4 points where 4 or less repairs are
reported (Table 15b at left)
R/1000 Metric
R/1000 Phase-In Metric Effective Range score Limits
(Lowest score
Allowed) * The scoring criteria in Table 15 are referring to months of
production, for example, 6M = the average of the R/1000 at 3MIS
Number of warranty repairs <=4 4 metric across the last 6 months of production.

34 35
Copyright © Ford Motor Company 2020
APPENDIX D: Delivery Performance

Table 16: Delivery Performance Metric Scoring The Delivery Performance Category
Products must arrive on time, at the correct location, in the proper
Delivery Performance
quantity and with the correct information. This metric drives
Metric (K) (L)
Production Delivery Service Delivery excellence in communication and shipping performance.

Maximum Metric 10 10 (K) and (L) – Delivery Performance for Production and Service
points (0-10 Metric points each)
Active Metric Must have at least one Must have at least one A Supplier earns Q1 Metric points (Table 16 at left) for both
Criteria production delivery rating in service delivery rating in the
the 6 mature months or via 6 mature months or via ship production and service delivery performance based on the weighted
ship point point six-month average delivery rating and monthly ratings. For a Q1
delivery metric score to be active, the supplier must have at least one
Table 17: Delivery Performance Thresholds month with a delivery rating in the prior 6 months. If a site receives

Super G 6 Month Weighted Average Metric points multiple production or service delivery ratings, its delivery metric
99 to 100 10 points score will be based on the worst production and service ratings,
96 to 98.99 9 points respectively.
86 to 95.99 8 points
•Delivery ratings are based on the ship site(s)
81 to 85.99 7 points
70 to 80.99 5 points • A unique ship point is determined by its ship point GSDB code
(not meeting 0 criteria below) • In the Q1 Scoring Detail, The “Incomplete” label indicates that
0 to 69.99 the site is Production or Service STA active, but has no
(not meeting 0 criteria below) 3 points
corresponding delivery ratings in the last 7 months (includes the
Less than 81
(AND ALL of the 3 the most recent 0 points immature month).
available monthly ratings <81, including • Delivery ratings will be assigned directly to a manufacturing
the immature month if reported)
Supplier Site when the mfg Supplier Site code is the same as the
ship point Supplier Site code.
• Delivery ratings assigned directly to the manufacturing Supplier
For all considered ship points*, the Supplier Site receives the “0 point” Metric score if Site (where Mfg Site Code = Ship Point Site code, regardless of
both of the following occur for any ship point: presence of receipts) are always considered (when delivery
• Delivery Rating falls below 81 points for both the six-month weighted average AND ratings exist within the prior 7 month period)
• The last 3 available ratings from the past 7 complete months all are under 81. This
includes the immature month rating if one is available. These ratings do not need to
be in consecutive calendar months.

*Ship sites with < 2 ratings in the past 7 months are not considered.
36 37
Copyright © Ford Motor Company 2020
APPENDIX E: Q1 Status Codes

Q1 StatusCodes
Q1 Status Codes are used to manage the Q1 process, described in
Figure 1 at left and described below.

"D" Disposition Required - New Supplier Site requires a Q1 Manufacturing


Site Assessment

"A" Working Toward Q1 – Supplier Site is expected to achieve Q1 within 12


months of Production Established (PE) Date.

"W" Q1 Waived – Supplier Site must meet Q1 On-going Performance


requirements and it may use an alternate quality management system to
satisfy Q1 Manufacturing Site Assessment (Q1MSA) expectations.

"X" Q1 Approval Denied – Supplier Site does not meet Q1 Requirements


due to timing or non-Q1 Supplier Site does not meet the On-going
performance requirements of Q1

"Y" Q1 Achieved – Supplier Site has been awarded Q1

"R" Q1 Revoked – Supplier Site has lost Q1 status due to performance or


customer satisfaction issue.

“V” Virtual (Contract Manufacturing) site – Identifies Virtual contract


manufacturing sites manufacturing product on behalf of another parent.
These sites may represent a second GSDB site code at a single supplier
site, each site code of a different supplier parent and associated quality
responsibility. The virtual site may be sourced as a responsible
manufacturing location.
Figure 1: Q1 Status Code Flow "2" Tier 2 – STA supported Supplier Site with no products shipped directly
to any Ford facilities. Only if there is a Multi-Party Agreement in place
between the Tier 1, Tier 2 and Ford is there any assigned responsibility for
STA in managing the Tier 2. For all other types of directed Tier 2 (Straight
and Basket), the Tier 1 has full responsibility for the product from the
directed Tier 2 site.

“N" – Bulk/Raw Material non-manufacturing broker sites with


acceptable performance (“Not Eligible for Q1”)

“U" – Bulk/Raw Material non-manufacturing broker sites with


unacceptable performance

"Z" Non-Manufacturing Supplier Site – "Z" Non-Manufacturing Supplier


38
Site – e.g. warehouse, sequencers, sales office, technical center, P.O. 39
Copyright © Ford Motor Company 2020 Box. Temporary indicator flag to identify manufacturing Supplier site.
APPENDIX F Q1 3rd EDITION SUMMARY OF CHANGES APPENDIX F Q1 3rd EDITION SUMMARY OF CHANGES continued

What’s Changed?
1. Q1 Scoring and Performance Categories 2. New Q1 Metrics for Q13rd Edition

The Q1 scoring method and metric grouping have been revised. QR Rate for both production and service, APQP Launch Performance, and
Warranty R/1000 Performance are new Metrics in Q1 3rd Edition.
Q1 will now be scored from 0 to 100 Q1 points. Sites start with 0 points and earn
points in 4 Performance Categories. A site must maintain a total score of 80 Q1 points A) QR Rate:
and maintain / attain certain Metric scores to remain in good standing. Suppliers will QR Rate is a normalized measure of unique QR incidents per 100 opportunities for both
no longer receive negative points or bonus points applied to a base score. Production and Service. Both Categories contribute 10 Metric points to the Quality
The 4 Performance Categories are as follows: Performance Q1 Category score.
Additional detail in Appendix A: Quality Performance.

A) Quality Performance: Contributes 30 Category points, consists of 5 Metrics. B) APQP Launch Performance:
- Production Commodity PPM The supplier site's launch performance is assessed by the Site STA engineer on a cadence
- Service Commodity PPM determined by Q1 status. Suppliers are assessed as one of four levels:
(Overall Site PPM Removed) - Outstanding Execution
- Production QR Rate (New) - Acceptable Execution
- Service QR Rate (New) - Poor Execution
- Stop Shipments - Not Applicable (Excluded)
Additional detail in Appendix B: Capable Systems.
C) Warranty R/1000 Performance:
B) Capable Systems: Contributes 30 Category points, consists of 3 Metrics.
The Warranty R/1000 Performance (Repairs per 1000 vehicles) metric is based on the
- Q1 Manufacturing Site Assessment
improvement trend in R/1000 data at 3 months in service for the last 12 reported months for
1. No Defined assessment Frequency for Q1 Supplier
the supplier manufacturing site. Suppliers earn points for positive trends when comparing
2. Trigger based assessment & at Site STA discretion
the 3, 6, and 12 month R/1000 averages.
- Industry Standards (IATF 16949 ISO 14001, MMOG/LE)
Additional detail in Appendix C: Warranty Performance.
- APQP Launch Performance (New)
.
C) Warranty Performance: Contributes 20 Category points, consists of 2 Metrics.
- Field Service Actions 3. Streamlined Endorsements
- Warranty R/1000 Performance (New – Production only)
A. Plant Endorsement Removal:
Plant endorsement has been removed from Q1 requirements.
D) Delivery Performance: Contributes 20 Category points, consists of 2 Metrics. Q1 3rd Edition now contains QR Rate, Launch Performance, and
- Production Delivery Warranty Performance, eliminating the need for Plant Endorsement.
- Service Delivery
Additional detail in Appendix D: Delivery Performance B. MP&L Lead Region Endorsement Supplier needs to submit
endorsement request only to the region of site location (lead region).
MP&L representative of lead region records endorsement in SIM. Lead
Based on supplier circumstances, certain Metric scores may not apply / may be region representative obtains endorsement from other affected regions
inactive. Only Metrics with active performance will impact the Category Q1 score for without supplier participation.
Q1 eligbility. If there are no active Metrics in an entire Category, the Category will be
scored at a default value of 80% of the possible Category score. Q1 is not attainable C. FCSD Lead Region Endorsement for both quality and delivery:
Supplier needs to submit service endorsement request only to the
without at least one active Metric in each Category. Where all Metrics in Quality or region of site location (lead region). FCSD representative of lead region
Delivery Categories are inactive, the Q1 score and the Category will be identified as records endorsement in SIM. Lead region representative obtains
“Incomplete” in SIM. “Incomplete” does not imply poor performance. The Site endorsement from other affected regions for both service quality and
Engineer and supplier should understand the reason for any missing metric and take delivery without supplier participation
action if it is not expected.
4. Q1 MSA simplification changes

Q1 2nd Edition included all commodities at the site in Q1 attainment PPM scoring. A. Q1 MSA assessment Frequency for both Q1 & Non Q1 Suppliers is eliminated
B. Rating system & respective scoring system for assessment has been changed
5.Warranty Performance Changes : Contributes 20 Category points, consists of 2 Metrics.
Q1 3rdEdition limits the PPM scoring for Q1 attainment to the base PPM score for - Field Service Actions- 15 points
those commodities used for Q1. - Warranty R/1000 Performance -05 Points
6.Delivery Scoring Scale change: Contributes 20 Category points,.
40 Q1 3rd Edition also limits the QR Rate scoring for suppliers with low receipts to - Delivery scoring scale adjusted and additional levels added 41
prevent excessively low QR Rate scores for low volume suppliers and QR incidents. Copyright © Ford Motor Company 2020
APPENDIX G: Contacts

Table 18: Contacts Contacts and Help

What Where Who There are many systems and processes associated with Q1.
General questions about
SIM siminfo@ford.com
SIM Table 19 at left provides a list of key systems or other resources associated
Capable Systems GSDB Online Suppliers with Q1 and their contacts for help or more details.

Supplier CSA If there are any other areas not mentioned in the table where help is
Corporate Security Covisint Help
https://fsp.portal.covisint.com/web/po
Administrator Update Desk
rtal/home Covisint
needed, the first point of contact is the STA Site Engineer identified in SIM
(Supplier Improvement Metrics), available through Ford Supplier Portal in
Delivery Champion name, GSDB Online or Ford Supplier Delivery Analyst
Covisint https://fsp.portal.covisint.com/web/portal/home
phone, fax email CMMS, Super G displayed in SIM
Note: Lead STA Site Engineer is the Production STA Site Engineer, unless
Delivery Dispute Super G SMPG@ford.com the Supplier Site is Service unique or delegated by Production, then the
Service STA is the Lead Site Engineer.
Supplier.
Covisint Help
FSP Access Issues https://fsp.portal.covisint.com/web/po
Desk
rtal/home
Q1 Manufacturing Site
eQ1MSA or SIM Supplier or STA Site Engineer
Assessment
Plant Manager name, GSDB Online or Supplier through GSDB online
phone, fax, email STA Engineer STA Site Engineer, POC
Ford Plant IQ
PPM Production Dispute QR2, CMMS
and/or STA Resident

Covisint,
Applications, Service STA Site Engineer as listed in
“FCSD Supplier SIM
PPM Service Dispute
Quality Note: must complete 3D before
Discrepancy disputing.
Notice Site”

GSDB Online or
QC Manager name, phone, Supplier through GSDB online
STA Site
fax, email STA Site Engineer, POC
Engineer

Covisint Help https://fsp.portal.covisint.com/web/po


SIM Access Issues
Desk rtal/home

GSDB Online Supplier → gsdbol@ford.com →


Supplier Site Name
GSDB Buyer

42 43
Copyright © Ford Motor Company 2020

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