SQA Manual 001 - 1-17.07.2009

Supplier Quality Assurance Manual –
1st Edition –
Supplier Quality Assurance Manual
Content
Management Message......................................................................... 5
Introduction .................................................................................... 6
1. Purpose .................................................................................. 6
2. Scope of Application................................................................... 7
3. Responsibility........................................................................... 7
4. Organization ............................................................................ 7
5. Language ................................................................................ 7
6. Terms and abbreviations.............................................................. 8
7. Definitions .............................................................................. 9
8. Advanced Supplier Quality Assurance..............................................10
Phase 1 – Supplier Selection .............................................................. 11

1. Target ..................................................................................11
2. Step 1: Supplier Evaluation..........................................................11
2.1. Scope of application ............................................................11
2.2. Flow chart ........................................................................11
2.3. Certifications.....................................................................12
2.4. Supplier Risk Evaluation ........................................................13
2.5. Pre-Process Audit................................................................13
2.6. Pre-Selection Conditions .......................................................14
3. Step 2: Requirements Definition....................................................15
4. Step 3: Supplier Selection/Nomination ............................................16
Phase 2 – Process and Product Qualification........................................... 17

1. Target ..................................................................................17
2. Step 4: Requirements Review – Specifications and Drawing Review ..........17
3. Step 5: Quality Assurance File Review.............................................18
4. Step 6: Process Audit and Run@Rate...............................................19
5. Step 7: Initial Samples ...............................................................20
Phase 3 – Continuous Performance Improvement .................................... 22

1. Target ..................................................................................22
2. Scope of application..................................................................22
3. Step 8: Special Monitoring Period ..................................................22
4. Step 9:Skip lots........................................................................22
5. Performance measurement..........................................................23
5.1. Quality, Cost and Delivery Indicator .........................................23
5.2. Incidents processing.............................................................25
5.3. Supplier Reactivity ..............................................................26
5.4. Supplier Quality Breakthrough/Top Worst suppliers management .......26
ALH/PU-SQA SQA Manual 001 Issue: 1 Date: 17/07/09 2/60

Author: Laurent BORCH
Requirements ................................................................................ 27
1. General Requirements ............................................................. 30
1.1. Supplier Facility access............................................................30
1.2. Project management ..............................................................30
1.3. Carry-over ...........................................................................30
1.4. Sub- suppliers’ components management and qualification.................31
1.5. Product/Process changes management .........................................31
1.6. Traceability .........................................................................33
1.7. Document and product sample retention.......................................34
1.8. Contingency plan ...................................................................34
1.9. Tools Property ......................................................................34
1.10. Government Regulatory Compliance .........................................34
2. Process Requirements ............................................................. 36
2.1. Process Equipments/Lay out .....................................................36
2.2. Product/Process FMEA & Control Plans .........................................36
2.3. Machinery / Equipment ...........................................................37
2.4. Test Equipments....................................................................37
2.5. Preventive Maintenance...........................................................38
2.6. Manufacturing Start-Up Instructions.............................................38
2.7. Employees Qualification...........................................................38
2.8. Process Audits ......................................................................39
2.9. Production Capacity ...............................................................41
2.10. Run@Rate .........................................................................41
3. Product Requirements ............................................................. 43
3.1. Prototypes...........................................................................43
3.2. Special Characteristics ............................................................43
3.3. Product Audits ......................................................................43
3.4. Annual Revalidation................................................................44
3.5. Aesthetic parts .....................................................................44
3.6. Reliability Tests ....................................................................45
4. Environmental Requirements..................................................... 47
4.1. Environment Protection ...........................................................47
4.2. Banned and Regulated Substances (BRS) .......................................47
4.3. Product End of Life ................................................................47
4.4. End-of-life Vehicle/International Material Data System......................48
5. Logistic Requirements ............................................................. 50
5.1. Packaging and Labeling............................................................50
5.2. Logistic Contract ...................................................................50
5.3. Transportation/Storage ...........................................................50
5.4. Delivery Documents................................................................51
5.5. Safety Stock.........................................................................51
5.6. Consignment / VMI Stock..........................................................51
5.7. Logistic Incident ....................................................................51

6. Non conformity and Incidents management Requirements................. 53

6.1. Quality Targets .....................................................................53
6.2. Incidents & PPM definitions and rules...........................................53
6.3. Problem Solving Method...........................................................56
6.4. Sorting/Rework Rules..............................................................57
6.5. Controlled Shipping ................................................................58
6.6. Non Quality Cost....................................................................59
6.7. Application for Special Release approval .......................................60

Management message
We at Automotive Lighting are committed to producing high quality, reliable, cost
effective products that provide customer value, are shipped on time, and
contribute to a better environment. Our Quality Management System achieves
these objectives and embraces the principles of continuous improvement.
We are dedicated to being quality and technology leader in the design and
manufacturing of head and rear automotive lighting systems. We can only achieve
this goal by expecting the best from our suppliers. Indeed, we believe a strong
supplier base will assist us in providing world class products to our customers.
The purpose of the Supplier Quality Manual is to define the requirements and
procedures for Quality Assurance measures.
It may be confidentially diffused to inform Automotive Lighting Suppliers of the
expectations we have regarding quality systems, manufacturing process controls
and design requirements for the purpose of doing business with us.
Automotive Lighting requires that suppliers establish, document and implement
effective management systems based on the minimum requirements identified
within this manual.
Automotive Lighting management fully supports the activities of quality assurance

and views the supplier development process and advanced SQA as a vital link in our
ongoing continuous improvement efforts.
Gianpiero Poncino
Quality Vice President
Roberto Minella
Purchasing Vice President
Laurent Borch
Corporate SQA Manager

Introduction
1. Purpose
Supplier Quality Assurance is one of the pillars of Automotive Lighting Purchasing Policy.
The present SQA Manual serves to define the requirements and procedures for Quality
Assurance measures.
It defines and sets out the Advanced Supplier Quality Assurance Approach at suppliers’
facilities and in Automotive Lighting which are necessary to assure the Quality of
Purchased parts.
The fundamental responsibility for the Quality of purchased parts lies with the supplier.
Automotive Lighting Advanced SQA is designed to work jointly with its suppliers in order
to reach Automotive Lighting Customer’s Satisfaction by:
• Defining interaction rules and formalities between Automotive Lighting and its
suppliers to guarantee appropriate quality and reliability levels of the purchased
components.
• Defining steps and activities to validate the supplier processes and products.
• Defining Automotive Lighting requirements of purchased parts, production
processes and technical inspections.
• Assessing the quality capability and quality performance of its suppliers.
• Being part of the Automotive Lighting standard Requirements to aware the
suppliers on their responsibilities and duties.
By implementing Advanced SQA, Automotive Lighting Purchasing department aims to:
• Standardize the processes related to suppliers in Automotive Lighting plants.
• Continuously improve Supplier Quality Performance and reduce Non Quality costs.
• Secure SOP of new projects, new suppliers, tools & processes transfers, processes
& parts carry-overs.
• Continuously improve supplier’s production processes.
• Manage all processes and products modifications.
• Adopt a preventive mindset.
6/60
2. Scope of Application
Automotive Lighting Advanced Supplier Quality Assurance applies for all external
purchased production suppliers and parts.
3. Responsibility
Each supplier is requested to meet the Automotive Lighting Advanced Supplier Quality
Assurance requirements. Non achievement of requirements may result in consequences
such as loss of existing/future businesses with Automotive Lighting.
For each business, suppliers and their sub-suppliers shall ensure that they comply with
the requirements of ISO TS/16949, and adopt Zero Defects and 100% on time delivery
approach.
As widely accepted, suppliers shall understand that established Quality targets are not
accepted quality levels.
The requirement to all Automotive Lighting suppliers is the Zero Defect and Zero Rework
mindset and approach in all products, processes and services.
4. Organization
In Automotive Lighting, Supplier Quality Assurance teams are reporting to Purchasing.
In a spirit of efficiency and optimization, 2 specific functions are defined for Automotive
Lighting plants Supplier Quality Assurance teams:
Necessary resources have to be defined taking into account number of suppliers, number
of new components in Projects and the full application of the rules defined in the
present Supplier Quality Assurance manual.
5. Language
Worldwide located company, Automotive Lighting Official Language is English.
Every established communication, documents, electronic Data,…between Automotive
Lighting and its suppliers will be in the Automotive Lighting concerned plant language or
in English.
For documents displaying English and native language in parallel, English is the unique
valid version.

6. Terms and abbreviations
AIAG: Automotive Industry Action Group PPAP: Production Part Approval Process
Advanced Advanced Supplier Quality PA & R@R: Process-Audit & Run@Rate

SQA: Assurance
BRS: Banned and Regulated Substances PPA: Pre-Process Audit
BCC: Best Cost Country PPM: Parts Per Million
Cmk/Cpk: Machine/Process Capabilities PQA: Product Quality Assurance
CPI: Continuous Performance PSM: Problem Solving Method

Improvement
CS: Controlled Shipping QAF: Quality Assurance File
CSL1/CSL2: Controlled Shipping Level 1/2 QCD: Quality Cost Delivery I
ELV: End-of-Life Vehicle QMS: Quality Management System
EDS: Electronic Data System R&R: Reproducibility and Repeatability
FIFO: First In First Out RF: Requirements File
FMEA: Failure Mode Effects Analysis RFQ: Request For Quotation
GADSL: Global Automotive Declarable SDE: Supplier Development Engineer

Substance List
IC1: Incident Category 1 SDRE: Supplier Designer Risk Evaluation
IC2: Incident Category 2 SEDS: Supplier Evaluation Decision Sheet
IC3: Incident Category 3 SPC: Statistical Process Control
IMDS: International Material Data System SOP: Start Of Production
IS: Initial Samples SQA: Supplier Quality Assurance
ISIR: Initial Samples Inspection Report SQE: Supplier Quality Engineer
LLC: Lesson Learn Card SRE: Supplier Risk Evaluation
NC: Non Conformity VMI: Vendor Managed Inventory
NQC: Non Quality Costs
OEM: Original Equipment Manufacturer

7. Definitions
Supplier: Rank 1 for AL
Sub-supplier: Rank 2 or more for AL
Manufacturer: Responsible for the development of a manufacturing process and

the manufacture of a product designed by AL
Designer: Responsible for the design and supply of a function defined by AL.
The integrated supplier-designer participates in the development
and definition of the function with AL
Subcontractor: Responsible for the manufacture of products designed by AL using

manufacturing processes developed by AL

8. Advanced Supplier Quality Assurance
To achieve its supplier quality performance targets, Automotive Lighting divided its
Advanced Supplier Quality Assurance approach into three main phases:
1. Supplier Selection.
2. Process & Product Qualification.
3. Continuous Performance Improvement.
Each phase includes standard steps and activities involving different Automotive Lighting
departments:

Phase 1 – Supplier Selection
1. Target
To support Automotive Lighting in reaching purchasing excellence, Automotive Lighting
Advanced Supplier Quality Assurance procedure targets to:
• Work with suppliers from Automotive Lighting Supplier Target Panel duly
evaluated.
• Identify and submit all requirements to Automotive Lighting suppliers.
• Award new businesses to suppliers able to fulfill Automotive Lighting
requirements.
2. Step 1: Supplier Evaluation

To enter Automotive Lighting Supplier Target Panel, suppliers shall receive a positive
output of the Supplier Evaluation step.
It implies that Certification/SRE/PPA activities are positively validated.
2.1. Scope of application

Supplier Evaluation step applies in following such cases:
Supplier Evaluation
New potential suppliers
Actual supplier with new commodity
Supplier relocating process to new facility, and/or BCC
Certifications, S.R.E., P.A/P.P.A out of validity dates
Sub-suppliers with critical processes
Customer imposed suppliers
2.2. Flow chart

Supplier Evaluation step requires the involvement of resources and use of standard tools
for each activity according to the hereunder process:

R: Responsible
S: Support Input
I: Information
Process Flow - Supplier Evaluation Output
R: Buyer
Check Certifications System Quality Certificates
NOK
OK
AL SRE v1
Perform Supplier Risk
R: Buyer
Evaluation AL SRE v1 fulfilled
OK NOK
PPA ANFIA
Perform Pre-Process Audit
R: SQA
S: Buyer ANFIA PPA ANFIA
NOK
OK
Supplier
Supplier pre-
not pre-
selected
selected
R: Buyer, Purchasing Mngr AL SEDS v1

S: SQA Fulfill SEDS
AL SEDS v1 fulfilled
Integrate
supplier into
panel
Requirements Definition step
2.3. Certifications
As quality products are a requirement to suppliers, an efficient Quality management
system is necessary to:
• Guarantee the reliability of tasks performed.
• Drive continuous improvement.
• Ensure the continuity of the company’s know-how.
It is based on:
• Clearly defining and expressing the quality policy.
• Assuring quality at all stages of product’s life.
• Working in a partnership and progress spirit with AL.
As first activity of Supplier Evaluation step, Automotive Lighting checks Quality
management system certification of supplier and its validity.
Automotive Lighting recognizes Quality management system certifications in accordance
with Automotive Standards and issued by accredited certification body:
• ISO 9001
• ISO TS/16949
Automotive Lighting aims to work with suppliers certified ISO TS/16 949.
Minimum required Certification is ISO 9001.

In this case the target for the supplier should be to get ISO TS/16 949 within a time frame of
maximum 18 months.
In case of obvious discrepancies or customer imposed supplier with missing certification
conducting to doubts about the pertinence of the supplier certification, Automotive Lighting
shall either conduct a system audit or require an audit by accredited certification body .
2.4. Supplier Risk Evaluation

To assess supplier’s risks, Automotive Lighting requires the use of SRE , whose positive
evaluation is necessary to allow a supplier entering Automotive Lighting Supplier Target
Panel.
SRE checks the ability of potential suppliers to fulfill Automotive and Automotive Lighting
general minimum requirements.
SRE is performed by Automotive Lighting Buyer or Project buyer and exclusively at supplier’s
site to check accuracy and reality of Data.
SRE consists in two main parts:
• Supplier data sheet, which summarizes all minimum required general supplier’s
information.
• SRE evaluation, which evaluates supplier’s risks in following areas:
Management
Key data
Financial health
Development product and processes
Production
Quality
Logistics
Competitiveness
To obtain the accepted status of SRE, supplier shall enter Class A or Class B.
Following table shows classification criteria:
Class A Overall score ≥ 80% AND No chapter score < 50%
Class B 70% ≤ Overall score < 80% AND No chapter score < 50%
Out of pre-selection Overall score < 70% OR At least one chapter score < 50%
In case SRE status is “Out of pre-selection”, and Purchasing wish to develop business with a
supplier, an action plan shall be implemented by the supplier to correct all negative points.
After implementation of the action plan, Automotive Lighting shall evaluate improvement by
performing a new evaluation with SRE.
2.5. Pre-Process Audit

Except Customer specific requirement, standard tool for Pre Process Audit in Automotive
Lighting is ANFIA . It aims to:
• Qualify productive processes in order to meet quality and reliability targets of
product shared with the customer.

• Enhance capability and stability of productive processes.
• Qualify processes with target to avoid Incoming Inspection in Automotive Lighting
plants.
• Have a common methodology for the automotive sector.
Pre Process Audit is mandatory before starting any business with a supplier.
In case of subcontracted critical operations, a Pre Process Audit at sub-supplier’s facility
shall be performed.
Scoring rules for positive result: See “Requirements” 2.8 “Process Audits”
If Pre Process Audit status is Class C, and Purchasing wish to develop business with the
supplier, an action plan shall be implemented by the supplier to correct all negative points.
After implementation of the action plan, Automotive Lighting shall evaluate improvement by
performing a new Pre Process Audit.
2.6. Pre-Selection Conditions

Pre-selection of a supplier requires acceptance of the three activities of Supplier Evaluation
step.
Results shall be fulfilled in SEDS (Supplier Evaluation decision Sheet).
SEDS enables Automotive Lighting Purchasing and SQA teams to agree on supplier pre-
selection before entering the Automotive Lighting Supplier Target Panel.

3. Step 2: Requirements Definition
Requirements Definition step is the base before sending any Request For Quotation to
suppliers.
All detailed requirements shall be provided to supplier gathered in the Requirement File,
attached to Request For Quotation.
The supplier shall be informed about the intended use of the part
Requirement File shall content:
• Drawings and BOM (Bill of materials).
• Specifications.
• List of Standards.
• Drawings of subcomponents (for assembled parts).
• Special characteristics.
• Project planning with key milestones.
• Design validation Plan.
• Quality targets.
• PPAP Level submission (standard: PPAP level 3).
• ISIR definition.
• IS requirements.
• Packaging requirements.
• Logistic requirements.
• Contingency plan
• …

4. Step 3: Supplier Selection/Nomination
Supplier Selection/Nomination shall be based on:
• Positive “Supplier evaluation” step.
• Supplier Quotation.
• Supplier Planning.
Validation of the Selection shall be done during sourcing committee based on provided duly
fulfilled and signed Supplier Evaluation Decision Sheet.
Automotive Lighting Supplier Selection/Nomination shall follow hereunder process flow:
R: Responsible
S: Support
Process Flow - Supplier Input
I: Information Selection/Nomination Output
Supplier Evaluation step
R: Buyer • AL SEDS
R: Purchasing manager SEDS fulfillement
• AL SEDS fulfilled and signed
R: Buyer • AL Supplier Panel; AL Requirement File

Selection of Requirements
S: SDE
supplier short list Definition step • Supplier Short List
Requirements File and RFQ • AL RFQ

R: Buyer release • AL RFQ & RF sent to suppliers
Reception of Quotations & • Suppliers' quotations & planning

R: Buyer Supplier Planning
Offers comparison
R: Buyer
R: Buyer • AL SEDS fulfilled and signed

Sourcing Commitee
R: Purchasing manager
S: Corporate SQA manager
• AL nomination letter
Supplier Nomination
R: Purchasing manager • AL nomination letter sent to supplier
S: Buyer
Requirements Review Step
Supplier is requested to give advices or propositions to prevent Automotive Lighting from

potential quality issues or difficult industrialization due to not appropriate design.
Any supplier proposal potentially having a positive impact on quality, productivity, and cost
shall be analyzed by Automotive Lighting Purchasing, SQA, Quality Project and Engineering
Department.

Phase 2 – Process and Product Qualification
1. Target
Advanced SQA phase 2 aims to ensure that purchased parts and components are designed
and produced in compliance to Automotive Lighting quality, quantity, and on time delivery
expectations.
Process and Product Qualification phase consists in the processing of steps and activities, so
as to make sure purchased products are qualified before Automotive Lighting internal
Process Audit and Run at Rate on complete systems (Head Lamp, Rear Lamp, …)
2. Step 4: Requirements Review – Specifications and Drawing Review

Requirements Review step consists in making sure that:
• Supplier has in hands, understood and analyzed Automotive Lighting requirements.
• Supplier quotation is based on all Automotive Lighting requirements.
• Supplier is capable to satisfy Automotive Lighting requirements.
• Supplier agrees with Automotive Lighting requirements and will apply them
accordingly.
Reviews of requirements shall take place until all open issues are solved.
Automotive Lighting and supplier shall review in detail the Requirement File with a special
focus on Supplier Planning , and Quality Assurance File content (see definition of
Requirement File in step 2 Requirements Definition).
Supplier planning shall content the following minimum key milestones:
• Detailed design/drawing preparation
• Internal project reviews
• Product and Process FMEA
• Control plans
• Design validation Plan
• Tools production
• Measurement equipment production
• Tools, Measurement equipments and Processes validations
• Process lay out
• Measurement System Analysis capabilities
• Process capabilities
• Sub suppliers process and product validations
• Supplier Internal Process Audit and Run at Rate
• Supplier Internal Product release
• Automotive lighting Process Audit and Run at Rate
• ISIR preparation
• IS and ISIR delivery
• SOP
• …

Specifications and Drawing Review
Supplier shall deeply analyze technical specifications, drawings, standards,…in order to
confirm feasibility and compliance to Automotive Lighting requirements.
Supplier and Automotive Lighting teams shall meet and review the output of the analysis of
the supplier.
The target of the specifications and drawing review is to have a common understanding and
agreement on all specified characteristics.
Output of the review is the Feasibility Commitment Checklist duly validated and signed by
both sides.
3. Step 5: Quality Assurance File Review

QAF Review
Supplier shall deliver the Quality Assurance File to Automotive Lighting in accordance to the
Quality Assurance File content definition agreed during step 2 Requirements Definition.
Quality Assurance File review is a key activity in preparation to the Process Audit should
take place at the supplier’s plant.
QAF review is performed by SQA with involvement of other departments of Automotive
lighting when necessary (Project Quality, R&D,…).
During the review, Automotive Lighting and Supplier shall analyze and validate QAF content:
• Process Flow Chart and Lay out
• Control plans
• List of special characteristics
• Process and product FMEA
• Process capabilities
• Internal Process Audit
• Measurement equipment list and capabilities
• Definition of limit samples
• Product traceability
• Sub-suppliers validations (ISIR and PA)
• Transport audit
• Contingency plan
• IMDS data release
• …
FMEA
Supplier shall perform and make available process FMEA and product FMEA (for supplier
designers).
All special characteristics shall have:
• Appropriate risk evaluation with defined actions.
• Risk level evaluation done with a Zero Defects target.
Automotive Lighting requires Zero Defects Target for all special characteristics.
Product FMEA shall be evaluated by Automotive Lighting designer and SQA.
Process FMEA shall be evaluated by SQA.
See Chapter “Requirements”, section 2.2 “Product/Process FMEA & Control Plans “.

4. Step 6: Process Audit and Run@Rate
All requirements applicable in this section are defined in the present manual in Chapter
“Requirements”, section 2. “Process Requirements”.
Process Audits & Run@Rate shall validate the implementation of all Automotive Lighting
requirements in terms of quality and capacity.
Unless special Automotive Lighting agreement, supplier shall perform its own internal
process validations by means of Process Audits and Run@Rate.
Supplier shall keep available internal Process Audit and Run@Rate (preferably Automotive
Lighting requires use of ANFIA)
Reports shall be checked by Automotive Lighting SQA dpt in preparation to Automotive
Lighting official Process Audit.
Unless specific Automotive Lighting/Customer requirement, defined Automotive Lighting
standard for all Process Audits is ANFIA.
Supplier remains entirely responsible for consequences which could result of any possible
weaknesses which would not have been raised during Automotive Lighting official Process
Audit and Run@Rate.
For Automotive lighting official Process Audit and Run@Rate, supplier process shall be ready
in fully serial conditions:
• Serial tools
• Serial workstations
• Serial control measurement devices and gauges
• Trained people
• Updated documentation available at the workstations
• …
During this Audit, supplier shall involve necessary responsible people and departments such
as Quality, Project, Production, Maintenance, Logistic,…
Part quantities to be produced and production time for the Run@Rate must be previously
required by Automotive Lighting and agreed with supplier.
See “Requirements” section 2.10 Run@Rate”.
Automotive Lighting shall establish a Run@Rate report to validate supplier process capacity.
Results of Automotive Lighting official Process Audit and Run@Rate shall be presented to
supplier management immediately at the end of the audit.
Automotive Lighting official Process Audit and Run@Rate Report shall be signed by both,
Automotive Lighting and supplier.
In case of high potential risk processes or new supplier, Automotive Lighting should perform
a preliminary audit in order to prepare and train the supplier.
For critical operations/components, supplier shall make possible access to sub-supplier’s
facility in order for Automotive Lighting to conduct a Process Audit.
See “Requirements” section 1.4 “Sub-supplier’s components management and qualification”.

R: Responsible
Process Flow - Process Input
S: Support
I: Information
Audit and Run@Rate Output
QAF Review Step
Supplier Internal Process

R: Supplier • Reports
S/I: SDE/SQE Audit and Run@Rate
R: SDE/SQE Process Audit Preparation • Agenda, R@R quantities

S/I: Project Buyer/Buyer
• Agenda; PPA ANFIA

R: SDE/SQE Process Audit and Run@Rate
S/I: Project Buyer/Buyer • PPA ANFIA completed
Process Audit and Run@Rate

R: SDE/SQE • Reports
S/I: Project Buyer/Buyer Results
Initial Samples/PPAp Step
5. Step 7: Initial Samples/PPAP

Unless otherwise specified, all production parts Initial Samples shall be in accordance with
AIAG PPAP manual requirements.
Unless otherwise specified, required submission level is PPAP level 3.
Initial Samples shall be produced during Automotive Lighting official Process Audit and
Run@Rate, and shall consequently be produced from serial tools and serial processes.
Supplier shall deliver quantity of samples according Automotive Lighting requirements.
Samples shall be delivered in the agreed serial packaging.
In case of non acceptation of the PPAP, the supplier is requested to correct all necessary
items and to proceed to new submission in the defined required Automotive Lighting
deadline.
Supplier is not allowed to deliver any serial production parts before full acceptation of PPAP
except under special release approved by Automotive Lighting.
For multi site delivery, supplier shall get approval from each single plant.

Automotive Lighting systematically informs the supplier about PPAp submission status.
Submission status are as follows:
• FULL APPROVAL: Part and associated documentation meet all the

requirements. Supplier is authorized to deliver production parts.
• INTERIM APPROVAL: Part or associated documentation partially meets
requirements. Supplier is authorized to deliver production parts, for a limited
time or in a limited quantity, by a special release approved by Automotive
Lighting. A new submission is required.
• REJECTED: Part or associated documentation does not meet requirements.
Parts can’t be delivered. A new submission is required.
R: Responsible
Process Flow - Input
S: Support
I: Information
ISIR/PPAP/Samples Output
Process Audit and Run@Rate Step
R: Supplier
Delivery ISIR/PPAP/Samples to • ISIR/PPAP/Samples
S: SDE/SQE/QM* SDE/SQE/QM*
• ISIR/PPAP/Samples conformity
R: SDE/SQE/QM* checking
• Complete Report analysis
• ISIR/PPAP/Samples dispatching to • ISIR/PPAP/Samples
required departments
• Validation on provided Samples • ISIR/PPAP/Samples

R: QMP, Engineering (measurements, assembly tests,
departments customer approval,…)
• ISIR/PPAP pre-approval • Pre approved ISIR/PPAP/Samples
• Pre approved ISIR/PPAP/Samples

• Final approval of ISIR/PPAP
R: SDE/SQE/QM* • Send release to supplier • Release to supplier
• Transmit copy of release and
I: Supplier, Incoming samples to Incoming Inspection • Release and
Inspection samples to Incoming
Inspection
Special Period Monitoring Step

* for Electronic/
Electromechanic parts

Phase 3 – Continuous Performance Improvement
1. Target
After SOP, supplier shall permanently measure its process/product performance, and
implement continuous improvement towards Zero Defect target.
2. Scope of application
Continuous performance Improvement phase applies for serial production parts after SOP.
3. Step 8: Special Monitoring Period

Special Period Monitoring step must apply for new components in serial production.
It aims to assess/evaluate quality and conformity of delivered components against
Automotive Lighting requirements after SOP and during ramp up phase.
This step applies as long as necessary to insure that components have reached the requested
quality targets. See “Requirements” section 6.1 “Quality Targets”.
During this period, Automotive Lighting plants Incoming Inspection can apply a control
procedure on deliveries.
Any non-conformity discovered during special monitoring period will follow Incident
Processing (see section 5.2 Incident Processing).
A new Special Monitoring Period shall be applied after any incidents.
4. Step 9: Skip lots

Skip lots status shall be given to components which match the following requirements:
• Components have passed successfully the Special Monitoring Period.
• Quality performance complies with defined PPM and Incidents targets.
• ISIR/PPAP is fully approved.
• PA result is positive, and both R@R and capacity are confirmed.
Automotive Lighting may not perform Technical incoming inspection for products under Skip
lots status.
In case of any incidents, Skip lots status shall be removed and a new Special Monitoring
Period shall start.

5. Performance measurement
Supplier quality performance measurement Automotive Lighting official indicators are:
• Warranty
• Incidents
• PPM
Category Description
Warranty Customer field claim
IC1 Customer 0km claim
IC2 Incident detected on AL production line
IC3 Incident detected at AL Incoming Inspection
Number of defective parts

PPM PPM level = X 10^6
Number of delivered parts
Automotive Lighting shall define Quality targets for here above items during step 2
Requirements Definition. See “Requirements” Section 6.1 “Quality Targets”.
Any incident during Serial production after SOP shall be immediately notified to the supplier
by an official Non Conformity report clearly indicating the incident category, the problem
description, the requested containment actions, and the request for definitive actions with
dead lines.
For any IC1 and/or Warranty claimed by Automotive Lighting customer, Automotive Lighting
plant shall notify supplier through an official letter, addressed to supplier management.
All non quality costs generated shall be invoiced to the supplier
See Requirement” section 6.6 “Non Conformity and incidents management”.
5.1. Quality, Cost and Delivery performance evaluation

QCD is a part of supplier performance evaluation.
Supplier shall be regularly evaluated through QCD indicators.
• Quarterly QCD Evaluation: Suppliers in Targets.
• Monthly QCD Evaluation: Suppliers out of Targets.
• Yearly QCD Evaluation: All suppliers.
All QCD evaluations shall be commented and signed by Purchasing manager, and responsible
SQE, and sent at a minimum to supplier’s Plant Manager, Quality Manager, and Sales
Manager.
Criteria and rules for evaluation:

QCD Evaluation
Principles
Chapter
Score
Criteria Scoring Resp. Frequency Evaluation
Quality
PPM • Supplier in targets: Green: In targets
See Items definitions Purchasing Quaterly Evaluation
Incidents - Warranty 50 and rules hereunder • Supplier out of targets:
Yellow: Significant improvement but out of targets
SQA
Reactivity on Incidents Monthly Evaluation Red: No improvement and Out of targets
Trend: See Overall Evaluation
Cost
Cost Level/Productivity/ • Supplier in targets: Green: In targets
See Items definitions Quaterly Evaluation
Competitivness 30 and rules hereunder
Purchasing
• Supplier out of targets:
Monthly Evaluation Red: No improvement and Out of targets
Delivery
On Time - Right Qty • Supplier in targets: Green: In targets
See Items definitions Quaterly Evaluation
20 and rules hereunder
Logistic
• Supplier out of targets:
Logistic Incidents
Monthly Evaluation Red: No improvement and Out of targets
Overall Evaluation Rules
Overall Evaluation is on 100 points: Q+C+D = 50+30+20 = 100
If at least 1 of the Items Quality, Cost or Delivery = 0 => RED (ex: Quality = 0/40, Cost 0/30,…)
If at least 1 of the Item Quality, Cost or Delivery < 50% => YELLOW (ex: Quality = 10/40, Delivery = 5/20,…)
0 ≤ Overall Evaluation < 50 => RED (ex: Overall = 45/100) => C
50 ≤ Overall Evaluation < 70 => YELLOW (ex: Overall = 60/100) => B
70 ≤ Overall Evaluation < 80 => GREEN (ex: Overall = 78/100) => AB
80 ≤ Overall Evaluation => GREEN (ex: Overall = 85/100) => A
Trend: Based on last 3 months performance: Improving: Stable: Degradating:
Item Definitions and Rules
Max.
Item Item Scoring rules Definitions Basis
Score
Quality
In targets=Max. score
1 to 20% worse than targets= Half
PPM 20 PPM level = ( Nb of Defective Parts / Nb of Delivered Parts )* 10^6 Monthly
score More than 20% worse than
target=0
No Incidents=Max score
1 to 3 incidents over target=half
score Incidents are reported by category: Warranty, IC1, IC2, IC3
Incidents - Warranty 20 Monthly
More than 3 incidents over If at least 1 IC1 or Warranty => Score = 0
target=0
If at least 1 IC1 or Warranty=0
Containment Actions at suppliers => 24 hours

Always on time=Max.score Rootcause Analysis => 5 days
Reactivity on Incidents 10 Often late=Half score Definitive Actions => 10 days Monthly
Always late=0 Check of Definitive Actions and Lesson Learn => 10 days
Closure of Incident => 1 Month from notification date
Cost
Price ok and produc tivities
given=Max.score
Cost Level/Productivity Price not ok or no productivities Price level compared to market. Given
30 given=Half score
Monthly
plan/Competitivness productivities according to agreed productivity plan
Price not ok and no
productivities=0
Delivery
Always on time/right
Qty=Max.score Often
On Time - Right Qty 10 Number of deliveries delivered on time and right Qty according to AL requirements Monthly
late/wrong qty=Half score
Always late/wrong qty=0
No incidents=Max.score
Logistics Incidents 10 1 incident=Half sco re Number of logistic Incidents (damaged delivery, additionnal special transports,…) Monthly
More than 1 incident=0

5.2. Incidents processing
All requirements applicable in this section are defined in the present manual in Chapter
“Requirements”, section 6. “Non Conformity and incidents management requirements”.
Incidents and warranty solving shall follow the hereunder flow:
R: Responsible
S: Support Process Flow - Incidents Processing Input
I: Information Output
Incident/Warranty Detection • Incident or warranty
R: Inc. Insp., Quality

S: SQE Check of responsability
I: Buyer
Supplier's Automotive Lighting's

responsability responsablity
Warranty IC1 IC2 IC3
R: Inc. Insp.
S: SQE Non conformity report
I: Buyer • NC report
R: Inc. Insp.
Containment actions at AL
S: SQE • Good parts available < 4
facility
hours
R: Supplier
Containment actions at
S: SQE • Good parts delivery < 24
supplier's facility
hours
R: Supplier • Ishikawa, 5Why

S: SQE Rootcause analysis methods
Definitive actions at
R: Supplier
supplier's facility
Check of definitive actions

R: Supplier by supplier
Lesson learned • LLC completed

R: Supplier
R: SQE Audit at supplier's facility

I: Buyer (when necessary) • Visit/Audit reports
R: Supplier / SQE
Closure of incident
Supplier shall provide detailed action plan using adequate problem solving (Automotive
Lighting expects 8D) method in order to eradicate the problem.

5.3. Supplier Reactivity
Unless otherwise specified by customer or Automotive Lighting, expected supplier reactivity
for incidents solving is as following:
Steps Actions Lead time
Problem description and Containment actions

4 hours
D1,D2,D3 at Automotive Lighting D1,D2,D3
Containment actions at supplier’s facility 24 hours
D4 Root cause analysis 2 days
D5 Identification of corrective Actions

10 days
D6 Implementation of corrective actions
D7 Preventive Actions, Lessons learned 10 days
D8 Closure of incident 1 month from notification

date
5.4. Supplier Quality Breakthrough/Top Worst suppliers management

Each Automotive Lighting plant shall identify the regular offending suppliers with bad
performance heavily influencing the overall Supplier quality Performance result.
For each of this supplier a specific follow up shall be established with objective to help
supplier to come back in targets.
Following approach will be applied:
• Notification/kick off meeting with supplier management.
• Definition of realistic step down Targets for PPM, IC1 and IC1+IC2+IC3.
• Establishment of Supplier Improvement/Action plan.
• Monthly follow up/review with supplier.
• Audit of the Improvements/Actions on site.
Supplier shall exit the program after a minimum period of 3 months being in specified
Targets.
Monthly top Worst suppliers shall be displayed in Automotive Lighting plants entrance hall.

Requirements
1. General Requirements ..............................................................30
1.1. Supplier Facility access ................................................ 30
1.2. Project management ................................................... 30
1.3. Carry-over................................................................ 30
1.4. Sub- suppliers’ components management and qualification...... 31
1.5. Product/Process changes management.............................. 31
1.6. Traceability .............................................................. 33
1.7. Document and product sample retention ........................... 34
1.8. Contingency plan........................................................ 34
1.9. Tools Property ........................................................... 34
1.10. Government Regulatory Compliance .............................. 34
2. Process Requirements ..............................................................36
2.1. Process Equipments/Lay out .......................................... 36
2.2. Product/Process FMEA & Control Plans .............................. 36
2.3. Machinery / Equipment ................................................ 37
2.4. Test Equipments ........................................................ 37
2.5. Preventive Maintenance ............................................... 38
2.6. Manufacturing Start-Up Instructions ................................. 38
2.7. Employees Qualification ............................................... 38
2.8. Process Audits ........................................................... 39
2.9. Production Capacity .................................................... 41
2.10. Run@Rate.............................................................. 41
3. Product Requirements ..............................................................43
3.1. Prototypes................................................................ 43
3.2. Critical Characteristics ................................................. 43
3.3. Product Audits........................................................... 43
3.4. Annual Revalidation .................................................... 44
3.5. Aesthetic parts .......................................................... 44
3.6. Reliability Tests ......................................................... 45
4. Environmental Requirements .....................................................47
4.1. Environment Protection................................................ 47
4.2. Banned and Regulated Substances (BRS) ............................ 47
4.3. Product End of Life ..................................................... 47
4.4. End-of-life Vehicle/International Material Data System .......... 48
5. Logistic Requirements ..............................................................50
5.1. Packaging and Labeling ................................................ 50
5.2. Logistic Contract ........................................................ 50
5.3. Transportation/Storage ................................................ 50
5.4. Delivery Documents..................................................... 51
5.5. Safety Stock.............................................................. 51
5.6. Consignment / VMI Stock .............................................. 51
5.7. Logistic Incident......................................................... 51

6. Non conformity and Incidents management Requirements .................53
6.1. Quality Targets .......................................................... 53
6.2. Incidents & PPM definitions and rules ............................... 53
6.3. Problem Solving Method ............................................... 56
6.4. Sorting/Rework Rules .................................................. 57
6.5. Controlled Shipping ..................................................... 58
6.6. Non Quality Cost ........................................................ 59
6.7. Application for Deviation approval ................................... 60

1. General Requirements
1.1. Supplier Facility access ........................................................... 30

1.2. Project management .............................................................. 30
1.3. Carry-over........................................................................... 30
1.4. Sub- suppliers’ components management and qualification................. 31
1.5. Product/Process changes management......................................... 31
1.6. Traceability ......................................................................... 33
1.7. Document and product sample retention ...................................... 34
1.8. Contingency plan................................................................... 34
1.9. Tools Property ................................................................... 34
1.10. Government Regulatory Compliance ......................................... 34

1. General Requirements
1.1. Supplier Facility access

For the purpose of inspecting parts, processes, documents, methodologies and
manufacturing processes influencing Automotive Lighting products quality, supplier shall
grant, Automotive Lighting, its customers, and/or 3rd party auditors, access to its facilities.
When necessary, supplier shall grant access to sub-suppliers facilities.
For Process Audits, access shall be granted 48 hours after notification for urgent matters.
1.2. Project management

Each project of new components in serial shall follow the three phases of Advanced SQA.
Automotive Lighting targets 100% ISIR/PPAP qualified at first time, consequently, supplier is
requested to put in place a project management to assure following:
• Verify that specifications, standards, drawings and project planning are available at
the latest version at each supplier's location.
• Insure that all necessary resources are available and compatible in respect of project
management.
• Verify with the specific Automotive Lighting Requirements File for each project/new
component.
• Build a complete project planning integrating Automotive Lighting project milestones.
• Provide a recovery plan in case of any eventual delay.
• Participate to technical reviews, upon AL request.
• Through systematic Product and Process FMEA that the produced parts fulfill the
intended designed use of the product.
1.3. Carry-over
Carry-over parts shall go through Advanced SQA from step 2 “Requirements Definition” to
step 7 ISIR/PPAP.
As a strict minimum, supplier and Automotive Lighting shall check and state on following
hereunder points:
• Check Tools and Processes lifetime
• New Requirement File including specific customer requirements
• Check Production capacity including sub-supplied parts and raw materials
• Update Process FMEA and Control Plans
• New Process Audit and Run@Rate
• New full ISIR/PPAP
• Update Quality targets
• Update IMDS

1.4. Sub- suppliers’ components management and qualification
Supplier shall manage and insure that sub-suppliers conform to Automotive Lighting and its
customers requirements by:
• Identifying their critical processes.
• Qualifying their processes and components.
• Managing the performance of its supplier panel.
• Keeping information available at any time upon Automotive Lighting request.
Supplier shall insure that critical processes of purchased parts are audited and managed to
prevent Automotive Lighting from being impacted by quality, quantity, or on time delivery
issues.
When necessary, supplier shall make possible for Automotive Lighting to audit critical
processes of sub-suppliers to assure that proper controls are in place throughout the entire
supply chain.
Suppliers shall have a management system that:
• Tracks and reports quality and delivery performances of sub-suppliers.
• Enables solving of quality issues through documented corrective actions and
verification activities.
1.5. Product/Process changes management

Supplier shall submit a written request for change to Automotive Lighting in following cases:
• Product or process changes.
• Changes at sub-suppliers throughout the supply chain.
• Use of different constructions or materials than the ones used in the previously
approved parts or products.
• Request for production from new or modified tools, dies, molds, patterns, etc…
• Request for production following refurbishment or rearrangement of existing tooling
or equipment.
• Introduction of new machines/equipment in the current process.
• Tooling and/or process/equipment transferred to a different location.
• Change of sub-supplier for parts, non-equivalent materials, or services that affect
Automotive Lighting or Customer requirements.
• Change in test or inspection methods and techniques
Product/process changes can be suggested by Automotive Lighting or supplier.
In both cases, the change request shall be tightly managed to make sure it optimizes the
product/process, and does not impact the current process capability and/or product quality.

For every product/process change request, the following process shall be carried out.
It aims to ensure a systematic Automotive Lighting official approval prior to any change:
R: Responsible Process Flow - Product/Process Input
S: Support
I: Information Change Request Output
Supplier Product/Process
Change Request
Std Automotive Lighting

R: Purchasing Internal Change Request • Change Request
Process
Accepted Status:
Rejected
Inform Supplier • ISIR/PPAP request

R: Purchasing and Request Inform Supplier
ISIR/PPAP
ISIR/PPAP/Samples
R: Supplier to Automotive
Lighting
R: SQE/SDE/QM*
ISIR/PPAP for • ISIR/PPAP/Samples
qualification
Rejected
Status:
Accepted
R: Purchasing Inform Supplier by Official way • ISIR/PPAP approved
• Start of Serial Production according to

validated IS
R: Supplier
• Inform concerned AL plants of date of
first deliveries
* for Electronic/ • Mark first delivery with specific label
Electromechanic parts defined by AL and Supplier
Reception of first modified

parts
Supplier is not allowed to launch any product/process change before Automotive Lighting
prior analysis of the requested change and official Automotive Lighting agreement for launch.
Supplier is not allowed to deliver modified products/processes prior to Automotive Lighting
official approval through ISIR/PPAP.
For modifications on components delivered to several Automotive Lighting plants, supplier is
not allowed to deliver prior to receiving official approval through ISIR/PPAP from each plant.
Supplier is requested to inform plant Purchasing/Logistic Department for the date of first
modified parts delivery.
Delivery shall be marked with a specific marking in accordance to Automotive Lighting
concerned plant requirements.

1.6. Traceability
Supplier is requested to archive the complete product traceability, drawings and production
documents during the requested time frame.
Any control operation involving functional test shall be systematically identified and
traceable on the concerned parts, the identification method shall be agreed between
supplier and Automotive Lighting.
Supplier shall establish an effective batch definition and traceability procedure.
Shipping number shall be linked to batch traceability procedure in such way that delivered
product and batches can be traced back to the used raw material.
Batch definition shall reflect all significant processes influencing the component/material,
with the shipping batch number reflecting the last value added operation.
Supplier shall maintain the integrity of the batch traceability system throughout their supply
chain, from the used raw material to the purchased parts.
Usual cases of batch number change:
• There is a shift of production or eight hours are reached.
• The batch number of used raw materials and/or components changes.
• Some parts of the same original batch receive their added value through another
process.
When required the supplier shall implement:
• A standard traceability for all produced batches.
• A unique traceability for specific produced batch
The following shall also be considered by suppliers:
• Parts identification.
• Identification of production, inspection and use status.
• Batch identification.
• Expiration dates.
• Removal of invalid identifications.
• Work documents with parts and production data.
• Reworked parts: Specific traceability shall be defined in agreement with Automotive
Lighting for parts and box labels.

1.7. Document and product sample retention
Supplier is required to maintain ISIR/PPAP packages, annual layout inspection and functional
testing and validation records, tooling records, traceability records, engineering records,
purchase contracts and amendments for the length of time that the part is active for
production and service requirements plus one calendar year or a minimum of 15 years
whichever is longer, unless otherwise specified by Automotive Lighting or its customers.
Corrective Actions records and Quality performance records, such as control charts,
inspection and test results are to be retained for 10 years.
The above time periods are considered “minimum”, All retention times shall meet or exceed
the above requirements and any governmental requirements.
Supplier shall keep a master sample from each cavity, die, and pattern until one year after
serial production stoppage.
Master sample shall refer to last approved ISIR/PPAP documentation.
1.8. Contingency plans

Supplier is required to prepare contingency plans to prevent disrupting product delivery to
Automotive Lighting, in the event of an emergency.
Supplier shall inform Automotive Lighting at the earliest in such case.
In case of an emergency, the supplier shall grant Automotive Lighting access to its tools,
processes and equipments to take them out or replace them.
1.9. Tools Property

Tools, manufacturing, test or inspection equipment which are property of Automotive
Lighting or its customers, shall be permanently marked to clearly identify the owner.
Unless otherwise officially agreed, these equipments shall only be used for Automotive
Lighting production needs.
1.10. Government Regulatory Compliance

Supplier shall keep all applicable governmental regulations related to the worker health and
safety, environment protection, toxic and hazardous materials.
In case governmental regulations are different in the country of manufacture, and the
country of sale, supplier shall conform to both country regulations.

2. Process Requirements
2.1. Process Equipments/Lay out ..................................................... 36

2.2. Product/Process FMEA & Control Plans ......................................... 36
2.3. Machinery / Equipment ........................................................... 37
2.4. Test Equipments ................................................................... 37
2.5. Preventive Maintenance .......................................................... 38
2.6. Manufacturing Start-Up Instructions ............................................ 38
2.7. Employees Qualification .......................................................... 38
2.8. Process Audits ...................................................................... 39
2.9. Production Capacity ............................................................... 41
2.10. Run@Rate......................................................................... 41

2. Process Requirements
2.1. Process Equipments/Lay out

Supplier is responsible to define and set up process equipments which lay out complies with
ergonomics, productive, safety, and quality requirements in order to decrease amount of
handlings, stocks in process, and quality risks.
Supplier shall satisfy order and cleanliness requirements for its processes and their
environments by implementing necessary methods such as 5S methodology.
Flow chart and lay out will be documented in the QAF and the supplier shall make sure they
comply with current environmental standards and regulations.
While long production stoppages, all equipments, processes, tools, test and measuring
equipment must be preserved and stored in order to prevent any damages.
Equipments must be available at any time, without any long preparation time.
2.2. Product/Process FMEA & Control Plans

Supplier shall use FMEA for defect prevention in all phases of product design and use (design,
production, packaging, transportation, assembly, customer use,…).
Supplier shall use FMEA for the product and process development of new parts/products and
for modifications of products and processes.
Product and process FMEA are key activities to achieve PPM and Incidents targets defined by
Automotive Lighting.
All potential Failure causes must be listed and actions must be carried out.
Supplier shall implement necessary control workstations, devices, systems, in the process
lay-out in order to ensure the product/process conformity to Automotive Lighting
requirements.
For all special characteristics, Zero defect mindset is requested with implementation of
automatic control/measuring equipment, Poka yoke, camera, sensors, automatic rejection
systems,…
FMEA shall be systematically reviewed after any Quality incident and Product/Process
change with a Zero defect mindset and a standardization approach.
Agreed important control characteristics of product or process shall be documented in the
control plans.
Control plans shall be established based on FMEA, and shall content:
General data
• Control plan number,
• Issue date, and revision date, if any,
• Customer information (see customer requirements),
• Supplier‘s name/site designation,
• Part number(s),
• Part name/description,
• Engineering change level,
• Phase covered (prototype, pre-launch, production),

• Key contact,
• Part/process step number,
• Process name/operation description.
Product control
• Product-related special characteristics,
• Other characteristics for control (number, product or process),
• Specification/tolerance.
Process control
• Process parameters,
• Process-related special characteristics,
• Machines, jigs, fixtures, tools for manufacturing.
Methods
• Evaluation measurement technique,
• Error-proofing,
• Sample size and frequency,
• Control method.
Reaction plan and corrective actions
• Reaction plan (include or reference),
• Corrective action.
2.3. Machinery / Equipment

All production equipments shall fulfill the product quality requirements.
Required process capability shall be reached and maintained.
As processes shall be capable, all equipments for inspection, measurement, and specific
requirements shall be capable.
Before any start of production, both process and product must be qualified according to
Automotive Lighting requirements.
2.4. Test Equipments

Supplier shall use test equipment assuring requested quality level of parts.
When it applies, test and measuring equipments shall be available at workstations, and the
supplier shall equip its production processes with automated tests.
In case of specific measure and test equipments only available at supplier’s facility, the data
analysis shall be carried out by the supplier.
Supplier shall guarantee that its test equipments and control procedures can be reproduced
and repeated so that they deliver the same accuracy along the process lifetime, and
calibrate its equipments according to Automotive Lighting requirements.
Supplier shall define the suitable calibration intervals depending on type of measuring and
use (legal requirements).
Measuring equipment used for calibration shall be based on official measurement standards.
Following equipments shall be considered for the capability inspection:
• Automatic measurement devices of critical/customer characteristics.

• Warning machines to detect deviations from limiting specifications.
• Tools for sorting and rework operations

Working environment of test equipments shall conform to soiling, damages, mix-up and
misinterpretation requirements.
Following points must be considered during the inspection:
• Ergonomics.
• Lighting.
• Order and cleanliness.
• Environmental protection.
• Working environment, handling of parts and components.
• Occupational health and safety regulations
2.5. Preventive Maintenance

Supplier is requested to develop a system for preventive maintenance of its production
equipments and tools.
Frequency of preventive maintenance procedures shall be defined in order to ensure the
conformance of delivered parts to Automotive Lighting requirements.
Supplier is responsible to define and set up sufficient preventive maintenance procedures in
order to fulfill Automotive Lighting agreed quality Targets. It implies:
• Definition of minimum preventive maintenance equipments.
• Definition of preventive maintenance frequency per equipment.
• Definition and follow-up of a preventive maintenance planning.
Maintenance workers shall be skilled and trained for the installation of new machines and
systems.
2.6. Manufacturing Start-Up Instructions

Supplier has to define instructions to authorize the start of production, including recordings
of the main process parameters validated with tolerances.
Conformity of the start-up and last produced parts must be formally checked.
The measurements shall be recorded and kept available.
Start up procedure shall be applied at least in following cases:
• Start and end of production shift.
• Raw material batch change over.
• Interruption of production (Electricity shut down,…).
• Change of version.
For all temporary process deviations, a formal special release is mandatory based on product
validation.
All events shall be recorded, and available for next shift / production and for Automotive
Lighting.
2.7. Employees Qualification

Supplier shall select employees according to job requirements.
Supplier is responsible to maintain employee’s qualification, and develop them for
additional requirements that could be necessary to meet Automotive Lighting and its
customer’s requirements.
Qualification of employees for their relevant tasks in product and process must be traceable.

Employees shall know Automotive Lighting and its customer requirements and quality
objectives, and shall demonstrate their individual responsibility for quality.
Management and employees dedicated to production and parts testing have to be qualified
regarding their task specificities.
Each employee shall receive information on the risks involved at Automotive Lighting and its
customer’s plants if important product/process deviations would appear.
For Aesthetic parts the supplier shall insure and demonstrate the visual ability of the
concerned people.
Supplier’s employees qualification shall be continuously maintained and trained.
A qualification follow-up of all employees shall be documented and available upon
Automotive Lighting request any time.
2.8. Process Audits

Automotive Lighting shall perform Process Audits in the following cases:
• New components in project.
• New Supplier.
• Tools and Processes transfer:
Automotive Lighting to supplier
Supplier A to Supplier B
Supplier new facility transfer
Supplier BCC location transfer
• Components Carry over.
• Important Process modifications and changes.
• New Testing equipments/station.
• Capacity increase:
Duplication of production lines
Addition of workstations
…
• Degradation of Quality Performance.
• Non compliance with customer or legal requirements.
• Product and Process development.
Unless otherwise specified Automotive Lighting’s Process Audit standard is ANFIA 3rd Edition.

Scoring rules for Process Audit ANFIA :

Process Audits for new and potential suppliers:
Component families: All
Follow up on
GLOBAL CONFORMITY INDEX CLASS Result Action Plan Status
site
85 ≤ IG ≤ 100 A Positive Optionnal Optionnal Potential
80 ≤ IG < 85 B Positive Required Optionnal Potential

Can not be
70 ≤ IG < 80 B Negative Required Necessary
selected
Can not be
IG < 70 C Negative Required Mandatory
selected
Any questions with symbol Can not be
/ Negative Required Mandatory
with a score at "0". selected
Process Audits for Serial Components and New Components in projects:
Component families: All

Follow up on SOP-
GLOBAL CONFORMITY INDEX CLASS Result Action Plan
site Delivery
85 ≤ IG ≤ 100 A Positive Required Optionnal Released
80 ≤ IG < 85 B Positive Required Optionnal Released

Under
70 ≤ IG < 80 B Negative Required Necessary
deviation
Required, must be Only under
IG < 70 C Negative
solved before SOP
Mandatory
deviation
Any questions with symbol Required, must be Only under
/ Negative Mandatory
with a score at "0". solved before SOP deviation

2.9. Production Capacity
Supplier shall insure a sufficient installed process capacity to satisfy Automotive Lighting
needs within established variation limits.
2.10. Run@Rate
Run@Rate should take place during the Process Audit.
Quantities to be produced and production time for Run@Rate shall be representative of
serial conditions, and shall be defined according to part type and Automotive Lighting daily
quantity needs in serial.
As a minimum, unless otherwise agreed, Automotive Lighting standard requirements for
Run@Rate are:
• Production time: 2 to 4 hours without any stops
And/or
• Quantity: minimum 300 parts
• Maximum scrap level in the defined and agreed limits between Automotive Lighting
and supplier.
Quantities to be produced and production time for Run@Rate shall be defined in Automotive
Lighting Requirements File, and shall be reminded in Process Audit agenda sent to the
supplier.
Run@Rate report shall be issued by Automotive Lighting and signed by both AL and supplier.

3. Product Requirements
3.1. Prototypes........................................................................... 43
3.2. Special Characteristics ............................................................ 43
3.3. Product Audits...................................................................... 43
3.4. Annual Revalidation ............................................................... 44
3.5. Aesthetic parts ..................................................................... 44
3.6. Reliability Tests .................................................................... 45

3. Product Requirements
3.1. Prototypes
According to Automotive Lighting defined quantities and delivery times, supplier shall
provide the prototypes with an attached report of:
• Material certificates.
• Dimensional checks.
• Functional inspections.
Supplier shall identify each prototype delivery with a specific marking/ label.
3.2. Special Characteristics

Supplier shall consider all functional and special characteristics, and ensure that they are
taken into account in the product and process FMEA, and identified in the control and
surveillance plans.
Unless otherwise specified by Automotive Lighting or its customers all defined special
characteristic will undergo a capability study ppk ≥ 1.67 on 50 parts minimum per cavity and
Cpk ≥1.33.
For all these characteristics measurement means and methodology shall be defined by the
supplier, in agreement with Automotive Lighting.
During production, all special characteristics will be followed by means of Poka-Yoke, 100%
check , SPC, or gauge control.
Records shall be available upon Automotive Lighting request any time.
3.3. Product Audits

Product audits enable Automotive Lighting and its suppliers to:
• Determine product deviations from customer tolerances.
• Directly take actions regarding to the influencing processes.
Main role of product audit is to make sure that products comply with specified Automotive
Lighting and Automotive Lighting customer requirements, otherwise, a back tracking of the
deviation must be carried out until root causes are determined and efficient corrective
actions are initiated.
In case of deviation detected during product audit, the supplier shall take immediate
actions and inform Automotive Lighting.
If supplier identifies that some parts have been delivered to Automotive Lighting, supplier
shall notify Automotive Lighting and provide clear information about quantity of impacted
parts and corresponding traceability.
Solving of the problem shall go through the standard Incident Processing flow.
Automotive Lighting and supplier shall agree on the part amount for product audits.
At the minimum 5 parts per reference should be taken, otherwise product complexity and
quality history shall be taken into account to define the minimum amount.

3.4. Annual Layout inspection and functional testing
Unless otherwise agreed Automotive Lighting requires its suppliers to perform an annual
Layout inspection and functional testing of the delivered products.
Requalification plan shall be defined together with Automotive Lighting teams during
Requirements Review.
The plan shall take into account:
• Dimensions.
• Specific tests.
• Reliability tests.
• Components.
• Raw material.
• Packaging.
• …
Supplier shall keep available corresponding reports and provide to Automotive Lighting
upon request any time.
In case of deviation from drawings/specifications and/or last approved ISIR/PPAP,
supplier shall immediately inform Automotive Lighting and launch necessary analysis and
corrective actions.
3.5. Aesthetic parts

For all considered aesthetic parts, Automotive Lighting SQA will establish in collaboration
with Automotive Lighting Quality Department and the supplier, the panel of limit samples,
validated by both sides which will be the reference for decision in case of line rejects.
Control conditions and methods are defined in Automotive Lighting Central Procedures
“Directive for assessment and definition of the visible manufacturing quality of headlamps
and lamps” CP577 and “Visual Inspection planning” CP536:
• Definition of normal observation position.
• Definition of assessment zones at the product.
• Ambient conditions / inspection conditions.
• Definition and approval of limit samples.
The panel of limit samples shall be completed after SOP and during ramp up phase, in
order to adjust in the best way acceptation and refusal criteria.

3.6. Reliability Tests
If reliability tests are specified, supplier shall demonstrate its ability to realize the
required reliability tests internally, externally or in collaboration with Automotive
Lighting.
In any case, supplier remains fully responsible for any potential reliability failure.
In order to perform the reliability tests, the supplier shall:
• Make sure reliability tests equipment are capable and qualified.
• Ensure the reliability qualification of the parts supplied to Automotive Lighting.
• Define the reliability test frequency for each reference with Automotive Lighting.
Results of reliability tests shall be documented and analyzed.
In case parts fail during reliability test Automotive Lighting shall be informed immediately.
If the approval of production batches is dependent on series production reliability tests,
the manufactured parts must be kept in their batches until the approval has been carried
out. In any case the possibility of retrospective identification shall be assured.
Supplier is requested to define in the control plan the random sample sizes and test
frequency according to Automotive Lighting specifications.
Conditions and results of the reliability tests shall be documented, analyzed and available
at any time upon Automotive Lighting request.

4. Environmental Requirements
4.1. Environment Protection........................................................... 47

4.2. Banned and Regulated Substances (BRS) ....................................... 47
4.3. Product End of Life ................................................................ 47
4.4. End-of-life Vehicle/International Material Data System ..................... 48

4. Environmental Requirements
4.1. Environment Protection

Supplier shall be certified according to ISO 14001 or shall target to get the certification.
Supplier must develop new products and processes in accordance to ISO 14001
requirements, and comply with all relevant national and international environmental
regulations.
Supplier shall:
• Evaluate environmental impacts through the constant production, supply,
maintenance, and process reviews.
• Anticipate from any environmental risks by creating an emergency plan.
• Comply with automotive regulations regarding materials and substances.
• Have a recycling concept/program.
• Define targets to improve environmental protection and documentation of their
fulfilment, including:
Intelligent safeguarding of resources (raw materials, energy, water)
Prevention and reduction of environmental pollution
Minimization of waste and rejects
Reduction of consumable packaging
Over the entire lifecycle of products and components, energy and raw materials shall be
managed effectively, with a minimum of logistics and transport.
Suppliers shall provide data on environmental performance assessment upon request.
4.2. Banned and Regulated Substances (BRS)

Supplier shall keep following regulations:
• European Directive 2000/53/EC (current valid ANNEX II)
• REACH Regulation EC/1907/2006 “Registration, Evaluation, Authorisation and
restriction of Chemical substances”
• other specific countries legislations if specified.
Supplier shall consider every aspect of the component or assembly or material delivered
to Automotive Lighting, and shall investigate all sub-supplier components, processes, raw
materials, lubricants, coatings, paint and chemical constituents, etc.
4.3. Product End of Life

Supplier shall deliver spare parts to Automotive Lighting during 15 years after OEM End of
Production.
Automotive Lighting formal official authorization is mandatory in following cases:
• Delivery of spare parts to other parties.
• Tools or equipments scrap out.

4.4. End-of-life Vehicle directive/International Material Data System
Supplier shall ensure that all components and materials supplied complies legal
requirements, e.g.:
• End-of-Life Vehicle directive, 2000/53/EC. (current valid ANNEX II)
To ensure compliance with the various legal and customer requirements, AL suppliers
shall report information on materials within their respective components by updating
IMDS data base.
Supplier shall submit the required End-of-Life Vehicle/IMDS data to AL as soon as possible
upon award of new business.
Submission and conformity of required End-of-Life Vehicle /IMDS data is mandatory for
final ISIR/PPAP release.
The supplier must fulfil the prohibitions of the GADSL and declare substances according
the GADSL by sending an IMDS material data sheet with respect of the IMDS
recommendations of the IMDS Steering Committee published on the EDS internet pages.

5. Logistic Requirements
5.1. Packaging and Labeling ........................................................... 50

5.2. Logistic Contract ................................................................... 50
5.3. Transportation/Storage ........................................................... 50
5.4. Delivery Documents................................................................ 51
5.5. Safety Stock......................................................................... 51
5.6. Consignment / VMI Stock ......................................................... 51
5.7. Logistic Incident.................................................................... 51

5. Logistic Requirements
5.1. Packaging and Labeling

Automotive Lighting and supplier shall agree on packaging definition during Process and
Product Qualification phase, including the following requirements:
• There shall be only one part number in a box or packaging unit.
• Unless otherwise specified by Automotive Lighting or its customers all packaging
units Labels shall include:
Automotive Lighting part number/eng. level/part description.
Quantity.
Supplier name and Automotive Lighting supplier code.
Batch traceability number and date.
Raw material number.
Bar coded label applies to each packaging location.
Supplier delivering product from overseas shall work with concerned Automotive Lighting
plant to assure that the packaging is sufficiently robust to withstand shipment by sea,
without damage.
5.2. Logistic Contract

When it applies, and for critical components, a logistic contract shall be established to
formalizes the agreement between Automotive Lighting and the supplier on general
delivery conditions and safety plan by product family in order to achieve following
objectives:
• Clarify responsibilities (ex: Returnable boxes cleaning)
• Optimize stock level.
• Facilitate supplies (delivery conditions, including packaging and frequency).
• Reduce acquisition cost.
• Allow maximum reactivity and flexibility on parts deliveries.
• Prevent deliveries from any kind of logistic risks
5.3. Transportation/Storage
When supplier is in charge of transportation, supplier shall validate the transport
company:
• Transport FMEA is requested, results have to be available upon Automotive
Lighting request.
• Transportation shall be included in contingency plan.
Only required quantities shall be produced, and intermediate storage of products shall be
avoided.
Production and inspection status of parts shall be recognizable by appropriate
identification.
Storage and transportation shall be efficiently coordinated along the entire supply chain,
and shall not damage the products.

5.4. Delivery Documents
Each delivery shall be accompanied by following documents:
• Delivery note.
• Shipping note.
• Packaging list if several references are in the same delivery.
• When applicable: Raw Material certificates (Granulates,…)
5.5. Safety Stock

In order to meet Automotive Lighting demand variability, supplier shall create a
permanent minimum safety stock by product/reference, and manage it according FIFO
rules.
Its level and localization shall be jointly defined, and it shall be refilled as soon as
possible in case of use. For any minimum safety stock level modification, supplier shall
get prior Automotive Lighting authorization.
5.6. Consignment / VMI Stock

To increase logistic performance, a permanent VMI stock on Automotive Lighting site or
nearby can be created.
VMI Stock shall remain supplier’s property. An agreement shall be formalized between
both Automotive Lighting and the supplier to specify minimum and maximum stock levels.
5.7. Logistic Incident

In case of Logistic Incident, supplier is requested to analyze and solve through a standard
quality problem solving approach such as 8D.
Following non conformities shall be considered and solved as logistic incident:
• Out of timing delivery (late/early).
• Missing parts in boxes.
• Missing boxes in delivery.
• Missing identification.
• Unreadable barcode
• Use of wrong labels
• Use of wrong packaging
• Damaged packaging/parts.
• Not clean packaging (When supplier responsible for cleaning).

6. Non conformity and Incidents management Requirements
6.1. Quality Targets ..................................................................... 53

6.2. Incidents & PPM definitions and rules .......................................... 53
6.3. Problem Solving Method .......................................................... 56
6.4. Sorting/Rework Rules ............................................................. 57
6.5. Controlled Shipping ................................................................ 58
6.6. Non Quality Cost ................................................................... 59
6.7. Application for Deviation approval .............................................. 60

6. Non conformity and Incidents management Requirements
6.1. Quality Targets

Quality targets shall be set up at minimum for complete year and shall be transmitted to
all suppliers at the beginning of the year.
Quality targets shall be set up for following indicators:
Category Target
IC1 X
Total IC1+IC2+IC3 Y
PPM Z
Reactivity - Containment Action 24 hours

- 1st level Root cause analysis 2 days
- Deep root cause analysis and actions definition 3 days
- Actions implementation 10 days
- Check of definitive actions and LLC 10 days
- Closure 1 month from notification date
Automotive Lighting requested target for IC1 Customer Incidents is 0.
6.2. Incidents & PPM definitions and rules

Definitions:
Category Definition
Warranty Claim from car maker out of field, detected on car sold to final user, due
to supplier part.
IC1 Claim from car maker, detected in car maker plant during pre-assembly,
assembly or final test, due to supplier part.
IC2 Claim from AL, detected in AL plant during pre-assembly, assembly or final
test, due to supplier part.
IC3 Claim from AL, detected in AL plant during Incoming Inspection, due to
supplier part.
PPM Number of defective parts

PPM level = X 10^6
Number of delivered parts
Rules: Following general rules apply for External supplies:

• Rejected parts are relevant to PPM/Incidents after analysis and confirmation of defect.
• If defect can not be confirmed internally in AL, parts will be considered relevant to
PPM after confirmation of defect through supplier analysis.

• Issues before SOP at Automotive Lighting (Prototypes, Pre-series) are not relevant to
PPM.
• IC1 and Warranty are based on Official customer claims.
Caution: Any Incident and/or parts relevant to PPM detected on Automotive Lighting
production line, Incoming Inspection or claimed by customer, on Month X, shall be
reported on the very same Month X.
Cases PPM relevant Incident

relevant
X parts with identical failure No Yes Nb=1

Warranty
X parts with different failure on each part No Yes Nb=X
1 Customer Claim with multiple parts: 1 No Yes Nb=X

Claim per Supplier if several suppliers concerned.
X parts with identical failure Yes Nb=X Yes Nb=1
X parts with different failure on each part Yes Nb=X Yes Nb=1 or
X, if X
customer
claims
IC1
Non conform labeling on part Yes Nb=X Yes Nb=1
Non conform labeling on packaging / boxes / pallets No Yes Nb=1
1 Customer Claim with multiple parts: 1 Yes Nb=X Yes Nb=X

Claim per Supplier if several suppliers concerned.
Information from Supplier: delivery of non conform No Yes Nb=1

batch, not yet in use on AL production line No Incident
fees
Information from Supplier: delivery of non conform No. Except if part assembled Yes Nb=1
batch, already in use on AL production line in HL/RL, then Nb=X No Incident
IC2 / IC3
assembled. fees
Parts sorted/reworked in AL plant by AL workers or Yes Nb=X Yes Nb=1

external company managed by AL (no reactivity from
Supplier)
Not conform raw materials (granulates, resins,…) No. Except Nb of Yes Nb=1
transformed/involved
parts/semi finished parts.
Parts sorted/reworked in AL plant by Supplier (good No. Except Nb bad Parts Yes Nb=1
reactivity from Supplier: gives in time agreement for detected on line or Inc. Insp.
sorting/rework by ext. company / send people for
IC2 / IC3
rework / …)
Line reject on critical parts (ECU, Bulbs, Harnesses,…) Yes Nb=X Yes Nb=1
with potential customer risk of IC1 or Warranty (No
possible detection on AL line)

Regular Line Rejects: ≥ 5 Consecutive parts * Yes Nb=X Yes Nb=1
Regular Line Rejects: < 5 Consecutive parts * No No
Regular Line Rejects: ≥ 1% NC parts per shift * Yes Nb=X Yes Nb=1
Regular Line Rejects: <1% NC parts per shift * No No
Batch of suspected parts sent back to Supplier for No. Except real qty of def. Yes Nb=1
sorting parts, origin of the claim
AL Stock: Batch of suspected parts sent to external No. Except real qty of Yes Nb=1
sorting company managed by AL defective parts, origin of the
claim + Bad parts out of
Sorting operation
Consignment Stock: Batch of suspected parts sent to No Yes Nb=1

supplier for sorting
Mixed parts No Yes Nb=1
Missing requested specific marking/identification after No Yes Nb=1

sorting/rework.
Logistic Inc. (Resp. Logistic)
Out of timing delivery (late/early) No Yes Nb=1
Missing parts in boxes/Missing boxes in delivery No Yes Nb=1
Missing identification No Yes Nb=1
Unreadable label/barcode No Yes Nb=1
Use of wrong label/Use of wrong packaging No Yes Nb=1
Damaged packaging / parts No Yes Nb=1
Dirty packaging (e.g: plastic boxes if supplier resp. for No Yes Nb=1
dpt)
cleaning)
* Standard rules. Can be adapted depending on production and specificities of

Automotive Lighting plants.
Nb=Number

6.3. Problem Solving Method

Suppliers shall have trained personnel with the ability to quickly and permanently resolve
product and process issues using data driven problem resolution and techniques.
Problem solving must be conducted using a defined structured process including
verification of root cause and validation of corrective action effectiveness.
Automotive Lighting minimum requirement is 8D.
Supplier shall provide full 8D including all Data (Analysis, measurements, detailed actions,
photos,…) in the defined dead lines (see 5.3 Supplier Reactivity).
Hereunder Problem Solving steps shall be followed:
• Problem Detection & First Level Analysis:
Automotive Lighting shall perform a first level analysis using necessary means (Metrology,
Laboratory,...) and involve necessary teams (Quality, SQA, Purchasing,…) in order to
determine supplier’s responsibility in the detected Non conform parts.
Supplier shall give his support and involvement in case of doubts.
• Problem Description:
Automotive Lighting shall provide a incident report containing the minimum problem data.
Problem description shall be made using 5W2H method.
Photos, parts, drawings with defect locations, traceability and anything which can help
for an efficient quick reaction shall be provided to supplier.
• Containment Actions at AL/Customer:
Automotive Lighting and supplier shall define necessary immediate actions
(sorting/rework, batch exchange,..) to be performed in Automotive Lighting and/or
Customer facilities in order to protect production line and customer.
• Containment Actions at Supplier:
Supplier shall contain its non conforming parts implementing immediate actions at its
facility in agreement with Automotive Lighting.
In case of Sorting/Rework, supplier shall agree with Automotive Lighting on specific part
and packaging markings for specific traceability linked to the problem.
• Root causes Analysis:
Supplier shall deeply analyze real problem root causes carrying out brainstorming,
Ishikawa and 5 – Why Methods for both Problem Occurrence and Problem Non Detection.
Each identified real and potential root cause shall be fully documented with necessary
Data (measurements, Laboratory analysis report, Raw material certificates, Reliability
test reports,…) to support final decision making.
• Definitive Actions:
Supplier shall set up actions to solve definitely the problem root causes for all
identified real and potential root causes .
Each action shall be fully implemented with a planning and identified pilot.
All necessary linked documentation shall be reviewed and accordingly updated.
• Check of Definitive Actions:
Supplier shall ensure a follow-up of the effectiveness of taken actions, and shall permit
Automotive Lighting to verify the actions implementation through an Audit.
In case of lack of efficiency, supplier shall carry out a new root causes analysis, define
new actions and provide Automotive Lighting with updated report.

• Lesson Learned:
Based on the acquired knowledge out of the problem solving, supplier shall verify
possibility of potential existing risks in his actual similar Processes/Workstations/Tools
and other production plants/locations.
Standardization of the identified solutions shall be planed for all concerned
Processes/Workstations/Tools and other production plants/locations.
Lesson Learn Card for knowledge capitalization shall be established, updated and
managed with an easy access for all concerned dpts.
FMEAs shall be reviewed and accordingly updated.
All information/data shall be added to the report provided to Automotive Lighting.
PROBLEM
DETECTION
& LESSON LEARN
FIRST LEVEL
ANALYSIS
PROBLEM CHECK OF
DESCRIPTION DEFINITIVE
ACTIONS
CORRECTIVE PREVENTIVE
PHASE PHASE
CONTAINEMENT DEFINITIVE
ACTIONS AT AL ACTIONS
CONTAINMENT
ROOTCAUSES
ACTIONS AT
ANALYSIS
SUPPLIER
6.4. Sorting/Rework Rules

For any Incident generating sorting or Rework operation in Automotive Lighting or
customer plant, supplier is requested by Automotive Lighting plant to give its written and
signed agreement.
As sorting and rework operations are usually carried outside of the standard production
processes, supplier shall ensure that sorted and reworked parts will reintegrate the
original flows with a specific traceability.
Workers shall be specifically trained for each sorting and rework procedures through
visual communication on boards, specific Sorting/Rework instructions and technical
manuals.
Specific dedicated working instructions shall be established for each sorting/rework
specific operation using visual aids.
Working instructions shall be permanently available at each Sorting/Rework station.
Sorting/Rework operations teams shall be managed by a leader experimented in this kind
of service.
Sorting and rework areas and workstations shall be set-up considering the following:
• Lay out: lighting, cleanliness, ergonomics, and safety requirements.
• Limit samples, good parts/bad parts, specifically identified.
• Quarantine areas and storages.
• Labeled containers for scrap, rework, and set-up parts.
• Released status: single product marking, packaging unit specific marking.
Rework:
Automotive Lighting expects “Zero Rework philosophy from its suppliers.
Any rework at supplier’s plant is strictly forbidden without prior official approval by
Automotive Lighting plant.
Rework processes and specific traceability shall be agreed and verified by Automotive
Lighting.
6.5. Controlled Shipping

CSL1 and 2 shall be requested to suppliers by Automotive Lighting when:
• Automotive Lighting has identified weaknesses which could generate non quality at
Automotive Lighting or customers during new project SOP and Ramp Up phase.
• Automotive Lighting observes degradation in the supplier quality performance.
• Automotive Lighting observes potential quality risks at final customers.
CSL1 is initiated by Automotive Lighting and performed at the supplier location by
supplier employees:
• Inspection data have to be registered and provided to Automotive Lighting
receiving plants.
• Inspected product must get certification.
CSL2 implies the same rules as CSL1 with an added 3rd party inspection.
The 3rd party shall be:
• Approved by Automotive Lighting.
• Selected and paid by the supplier.
• Automotive Lighting may require the 3rd party inspection to be performed outside
of the supplier facility.
Based on the severity of the incident, Automotive Lighting may choose to go directly to
CSL2.
Automotive Lighting SQA will review corrective action and authorize removal or renewal
of CSL when appropriate.
CSL1 and 2 shall follow same rules as any Sorting/Rework (see 6.4 Sorting/Rework rules).

6.6. Non Quality Cost
By contracting with Automotive Lighting, supplier commits to satisfying Automotive
Lighting needs in terms of quality, cost, quantity, and on time delivery.
As widely accepted, suppliers shall understand that established Quality targets are not
accepted quality levels, consequently any defective part will be systematically invoiced
to the supplier, as well as any additional cost generated by supplier non quality such as:
• Customer field warranty claim.
• Customer 0km claim.
• AL line and Incoming Inspection claims.
• Sorting/Rework.
• Line stoppage.
• Special transports.
• Additional Incoming Inspection.
• Additional operations/controls on production lines.
• …
For each confirmed incident where supplier recognized its responsibility, Automotive
Lighting shall charge back following standard fees order to recover from administrative
impacts:
IC1 and Warranty 300€*
IC2 and IC3 200€*
Recurring Incidents Cost x 2
The above costs come in addition of the direct costs due to the incident.
* Maximum applicable costs.
Automotive Lighting shall invoice each month to all suppliers all generated non quality
costs.

6.7. Application for Special Release approval
Supplier is not allowed to provide parts presenting any deviations according to
Automotive Lighting specified characteristics.
Any specified Automotive Lighting characteristic which presents a product/process
deviation at suppliers’ or sub-suppliers’ facilities shall be object of an official Special
Release request submitted to Automotive Lighting.
Special Release request shall go through the whole Special Release approval process in
order to define if concerned parts can be approved by Automotive Lighting:
R: Responsible Input
S: Support Process Flow - Deviation Approval Process
I: Information Output
R: Purchasing Request for Special Release to

AL Purchasing
R: Purchasing Inform QM for validation
Accepted Status:
Rejected
Submit Request to Inform Supplier • Deviation Request

R: QM SDE/SQE for final Parts to be
approval scrapped • Deviation Request
Approve Official Special Release • Specific Delivery

R: SDE/SQE
Delivery Marking Marking
R: SDE/SQE/ • Approved Special Release,

Inform Supplier Specific
Incoming Inspection
Delivery Marking
Mark each delivery with defined

R: Supplier marking
R: Supplier Delivery to AL
In case Automotive Lighting approves the Special Release, each delivery must be marked
by the jointly defined marking by Automotive Lighting and supplier.


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Supplier Quality Assurance Manual –

Phase 1 – Supplier Selection .............................................................. 11

Phase 2 – Process and Product Qualification........................................... 17

Phase 3 – Continuous Performance Improvement .................................... 22

ALH/PU-SQA SQA Manual 001 Issue: 1 Date: 17/07/09 2/60

ALH/PU-SQA SQA Manual 001 Issue: 1 Date: 17/07/09 3/60

6. Non conformity and Incidents management Requirements................. 53

ALH/PU-SQA SQA Manual 001 Issue: 1 Date: 17/07/09 4/60

Automotive Lighting management fully supports the activities of quality assurance

ALH/PU-SQA SQA Manual 001 Issue: 1 Date: 17/07/09 5/60

ALH/PU-SQA SQA Manual 001 Issue: 1 Date: 17/07/09 7/60

6. Terms and abbreviations

Advanced Advanced Supplier Quality PA & R@R: Process-Audit & Run@Rate

BRS: Banned and Regulated Substances PPA: Pre-Process Audit

BCC: Best Cost Country PPM: Parts Per Million

Cmk/Cpk: Machine/Process Capabilities PQA: Product Quality Assurance

CPI: Continuous Performance PSM: Problem Solving Method

CS: Controlled Shipping QAF: Quality Assurance File

CSL1/CSL2: Controlled Shipping Level 1/2 QCD: Quality Cost Delivery I

ELV: End-of-Life Vehicle QMS: Quality Management System

EDS: Electronic Data System R&R: Reproducibility and Repeatability

FIFO: First In First Out RF: Requirements File

FMEA: Failure Mode Effects Analysis RFQ: Request For Quotation

GADSL: Global Automotive Declarable SDE: Supplier Development Engineer

IC1: Incident Category 1 SDRE: Supplier Designer Risk Evaluation

IC2: Incident Category 2 SEDS: Supplier Evaluation Decision Sheet

IC3: Incident Category 3 SPC: Statistical Process Control

IMDS: International Material Data System SOP: Start Of Production

IS: Initial Samples SQA: Supplier Quality Assurance

ISIR: Initial Samples Inspection Report SQE: Supplier Quality Engineer

LLC: Lesson Learn Card SRE: Supplier Risk Evaluation

NC: Non Conformity VMI: Vendor Managed Inventory

NQC: Non Quality Costs

OEM: Original Equipment Manufacturer

ALH/PU-SQA SQA Manual 001 Issue: 1 Date: 17/07/09 8/60

Sub-supplier: Rank 2 or more for AL

Manufacturer: Responsible for the development of a manufacturing process and

Subcontractor: Responsible for the manufacture of products designed by AL using

ALH/PU-SQA SQA Manual 001 Issue: 1 Date: 17/07/09 9/60

8. Advanced Supplier Quality Assurance

2. Process & Product Qualification.

3. Continuous Performance Improvement.

ALH/PU-SQA SQA Manual 001 Issue: 1 Date: 17/07/09 10/60

Phase 1 – Supplier Selection

2. Step 1: Supplier Evaluation

2.1. Scope of application

New potential suppliers

Actual supplier with new commodity

Supplier relocating process to new facility, and/or BCC

Certifications, S.R.E., P.A/P.P.A out of validity dates

Sub-suppliers with critical processes

Customer imposed suppliers

2.2. Flow chart

ALH/PU-SQA SQA Manual 001 Issue: 1 Date: 17/07/09 11/60

R: Buyer, Purchasing Mngr AL SEDS v1

Requirements Definition step

ALH/PU-SQA SQA Manual 001 Issue: 1 Date: 17/07/09 12/60

2.4. Supplier Risk Evaluation

Class A Overall score ≥ 80% AND No chapter score < 50%

2.5. Pre-Process Audit

ALH/PU-SQA SQA Manual 001 Issue: 1 Date: 17/07/09 13/60

2.6. Pre-Selection Conditions