Supporting Documentation, Forms or Reference for Section 8.

3:
• www.aiag.org
• APQP and Current Production Cycle Forms – located on Nexteer.com, Suppliers, Quality Processes:
http://www.nexteer.com/quality-processes/
• Global Sample and PPAP Label – Located on Nexteer.com, Suppliers, Quality Processes:
http://www.nexteer.com/shipping-labeling-processes/
• AIAG Production Part Approval Process (PPAP) manual, AIAG Service Production Part Approval Process (Service
PPAP) manual.

8.4 Control of Externally Provided Processes, Products and Services

8.4.1 General

8.4.1.1 General – Supplemental

No Nexteer specific requirements for this section

8.4.1.2 Supplier Selection Process

The supplier shall be responsible for the quality of the parts it produces, their sub-supplier’s quality and
delivery performance, and subcontracted services, including sub-suppliers directed by Nexteer.

When the supplier determines incoming inspection of sub-supplier material is necessary, this activity
shall be consistent with the risk and quality impact of the supplier. These inspections shall include
variable data where appropriate and be used as a key indicator for sub-supplier quality management.
Where high risk has been identified in the sub-contracted process, the supplier shall ensure
containment is in place to protect the customer. For incoming receiving and inspection, the acceptance
level shall be zero defects.

Suppliers are responsible to select sub-suppliers (e. g. Heat Treat, Plating) based on the expectation
of Zero Defects, and on the sub-supplier’s capability to continually maintain robust processes
throughout the life of the product that meet all Nexteer’s product requirements.

The Manufacturing Capability Assessment is available as a tool to assist in the selection and evaluation
of sub-suppliers. The Nexteer Supplier Quality Engineer may elect to participate in sub-supplier on site
visits and/or audits. The AIAG CQI-19, Sub-tier Supplier Management Process Guideline, should be
used as a tool for quality system development of a sub-supplier. The CQI-8, Layered Process Audit
Guideline may also be used for sub tier supplier QMS development.

CQI-9, CQI-11, CQI-12, CQI-14, CQI-15, CQI-17, CQI-23, and CQI-27 shall apply to any sub-tier
suppliers in the value stream. Suppliers are required to review and update their suppliers’ assessments
on an annual basis.

Suppliers should seek any additional expertise that is necessary, based on the particular sub-
processing technology to ensure they are able to select a capable supplier and ensure on-going
performance.

The Supplier shall complete a financial assessment of their supply chain at a minimum annually to
evaluate and mitigate risk in the supply chain. The supplier shall be required to supply evidence of this
evaluation upon request.

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