AXIOM GROUP INC.

Advanced Quality Planning (AQP) Page 1 of 4

Process Development AQP - Phase 3

Approved By:

INTRODUCTION

The third phase in a project is Process Development. This phase is designed to ensure the
comprehensive development of an effective manufacturing system and corresponding controls to
achieve customer satisfaction. During this period of time, process methods and flow, and product
features and characteristics, are developed into a feasible and final form. A "feasible" design and
manufacturing process must satisfy production volumes and schedules including fluctuations in
demand, and be consistent with engineering standards and specifications, as well as quality,
reliability, durability, and other external and internal objectives.

The inputs and outputs relevant to this phase may vary depending on the situation, needs and
wants of both the customer and the company.

3.1 PFMEA Complete

The team consisting of the Program Manager, Manufacturing Engineer, and Quality Engineer
shall complete the Process Failure Mode and Effects Analysis (PFMEA). Completing the
PFMEA is the first major step in identifying and/or qualifying characteristics to control in the
manufacturing process.

The PFMEA is a living document and as such, it should continue to be updated throughout the
program, particularly as manufacturing inputs become available. PFMEA document will reflect
all changes identified in an ECN or customer deviation.

Axiom Group Inc.’s policy is to demonstrate RPN reductions in the PFMEA development. The
following criteria have been established to determine the need for action:

1) If severity is 9 or 10 and the RPN is greater than 120.

2) If severity is 7 or 8 and the RPN is greater than 150.
3) If severity is 6 or less and the RPN is greater than 165.

As per the above criteria, the team must demonstrate reductions in the overall RPN total by
completion of the PFMEA by the end of Phase 3 of the program.

3.2 Process Flow Diagram Complete

The process flow is a representation of the total process from receiving inspection through
shipping of the final product. The process flow diagram illustrates how the parts will flow
through the anticipated manufacturing process.

No specific format is required for this diagram since customer requirement vary widely. Check
with the Quality Assurance Manager for the diagram and details of the required format.

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Date Issued: Nov. 16, 2018 Revision Number: 10
 AXIOM GROUP INC. Advanced Quality Planning (AQP) Page 2 of 4
Process Development AQP - Phase 3

3.3 Floor Plan Layout

The Floor Plan Layout should be developed and reviewed to determine the acceptability of
machine layout, product flow efficiency, inspection points, control chart location, visual aids
location, interim repair stations, and storage areas to quarantine defective material.

No specific format is required for this diagram since plant and customer requirements vary
widely. Check with Senior Management for the floor plan layout.

3.4 Production Equipment, Tooling and Facilities Requirements

A list of all equipment, tooling and facilities needed to successfully produce production parts
must be completed (QAR-8.3.8).

If possible and where appropriate, identify preliminary calibration and preventive maintenance
requirements; otherwise, provide this information at a future date.

3.5 Production Release Review

The purpose of Production Release Review is to familiarize the team with the product, as it will
be released for production.

During the design review, tooling (design for manufacturing) considerations must be taken into
account and addressed.

The suggested attendees for design reviews are:

 Board of Directors Member

 Subcontractor
 Program Manager
 Quality Assurance Manager
 Customer

Typical inputs to the Production Level Review include but are not limited to:

 Product design and functional requirements (V.O.C. and internal)

 Vehicle packaging data and/or guidelines.
 Bill of material.
 PFMEA
 Process Flow Diagram
 Floor Plan Layout
 Preliminary Control Plan
 Production Equipment, Tooling and Facilities Requirements
 Program timing requirements
 Risks and opportunities associated with the above items
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Date Issued: Nov. 16, 2018 Revision Number: 10
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Process Development AQP - Phase 3

Reviews might be formal and documented with meeting minutes (QAR-5.0.1).

3.6 Schedule Supplier PPAP’s

As per customer requirements Quality Assurance Manager or designate must schedule supplier
PPAP (QAR-8.3.37) to coincide with the needs of the plant and customer to ensure timing and
requirements are met for our PPAP submission.

3.7 Pre-Launch Control Plan Complete

The team must ensure that pre-launch control plans (QAR-8.5.0) are prepared. These plans are
intended to provide a description of the process controls, dimensional measurements, material
and functional tests that will occur during pre-production builds.

3.8 Inspector & Operation Description Sheets Complete

The date the documented instructions and illustrations for manufacturing and inspecting the
specified product are complete.

The required format and content of these documents may vary depending on the manufacturing
location and customer involved. Check with the quality department for the instructions and/or
the customer-required format.

3.9 Preventative Maintenance Plan Complete

This is the date that Senior Management or designate completes the Preventative Maintenance
Plans for all equipment and tooling associated with the product. A preventative maintenance
plan should exist for machine, tooling, assembly equipment and gages.

3.10 Specialized Training

The team must determine special training needs and develop a training plan. Training plans
should, at a minimum include the following elements:

 Training schedule
 Qualified trainers/instructors (may include members of AQP team)
 Training materials
 Training facilities (if other than on the job)

3.11 Packaging Specification Approved

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Date Issued: Nov. 16, 2018 Revision Number: 10
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Process Development AQP - Phase 3

This is the date that packaging specifications are approved. The purpose is to document the
packaging method and materials agreed upon with the customer. The packaging must provide
sufficient damage protection during shipping and handling from the end of our line to the
customer assembly line. Packaging and label requirements shall be as per customer requirements.

3.12 Safe Launch Plan Complete

If applicable, Program Manager will record the date for safe launch plan completion. Where Safe
Launch Plan is utilized start dates, exit criteria and completion dates to be recorded on the Safe
Launch Plan Log (QAR-8.3.26) and data recorded on I Charts. Once exit criteria is satisfied
change to Production Control Plan. (QAR-8.5.0)

3.13 Upper Management Approval - Phase 3

When all the phase 3 items are closed, management must review the outputs of the team and
approve the completion of the phase or recommend further actions required achieving
completion (QAR-5.0.1). This review must be completed by the end of Phase 3 for any direct
programs with Daimler Chrysler, Ford or General Motors.

UNSIGNED PRINTED COPIES ARE UNCONTROLLED DOCUMENTS

Date Issued: Nov. 16, 2018 Revision Number: 10