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Vuteq Rev W SQAM
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Canada
Supplier Quality
Assurance Manual
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Contents Company History .......................................................................................................................................... 4
Quality Policy ................................................................................................................................................ 5
Definitions .................................................................................................................................................... 6
1.0 - Communication Expectations .............................................................................................................. 9
2.0 - Environmental Expectations .............................................................................................................. 10
2.1 - Overview ........................................................................................................................................ 10
2.2 - Conflict Minerals – 3TG .................................................................................................................. 10
2.3 – IMDS ............................................................................................................................................... 11
2.4 - Waste .............................................................................................................................................. 12
3.0 - Terms and Conditions ........................................................................................................................ 12
4.0 – RFQ, Drawings and Documentation ................................................................................................. 12
4.1 – Request for Quote (RFQ) ............................................................................................................... 12
4.2 – Drawings and Engineering Changes .............................................................................................. 13
4.3 – Documentation .............................................................................................................................. 13
5.0 – Production Part Approval Process (PPAP) ........................................................................................ 14
5.1 - General ........................................................................................................................................... 14
5.2 - Requirements ................................................................................................................................. 14
5.3 – PPAP Rejection .............................................................................................................................. 15
5.4 – Pre-Launch Activity ........................................................................................................................ 15
5.5 – CQI Assessments – (Continuous Quality Improvement) .............................................................. 16
5.6 – Process Change Request (PCR) Requirements ............................................................................. 17
6.0 – Supplier Management and Performance ......................................................................................... 17
6.1 – Supplier Selection .......................................................................................................................... 17
6.2 – Supplier Performance Monitoring ................................................................................................ 18
7.0 - Non-Conforming Product Handling ................................................................................................... 19
7.1 - General ........................................................................................................................................... 19
7.2 – Onsite Sorting ................................................................................................................................ 20
7.3 - Cost of Poor Quality (COPQ) .......................................................................................................... 21
7.4 – Return of Material Authorization (RMA) ...................................................................................... 21
8.0 – Corrective Actions ............................................................................................................................. 22
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8.1 - General ........................................................................................................................................... 22
8.2 – Documentation Requirements ..................................................................................................... 22
9.0 = Forecasts, Ordering, Labels and Customs ......................................................................................... 24
9.1 - Weekly Planning Forecasts ............................................................................................................ 24
9.2 – Service Parts .................................................................................................................................. 24
9.3 – Blanket Purchase Orders ............................................................................................................... 25
9.4 – Order Release ................................................................................................................................ 25
9.5 – Backorder Materials ...................................................................................................................... 25
9.6 – Customs Requirements ................................................................................................................. 26
9.7 – US Suppliers ................................................................................................................................... 26
9.8 – Packaging ....................................................................................................................................... 27
9.9 – Logistics Wait Time Charges .......................................................................................................... 27
10.0 - Appendix .......................................................................................................................................... 28
10.1 – Vuteq Canada Inc. – ..................................................................................................................... 28
10.2 – Vuteq Kentucky - ......................................................................................................................... 29
10.3 – DV Mississippi - ............................................................................................................................ 29
10.4 – DV Indiana - ................................................................................................................................. 29
10.5 – Vuteq SLP – Mexico - ................................................................................................................... 30
10.6 – Vuteq Ramos – Mexico - ............................................................................................................. 30
10.7 – Vuteq Brazil - ............................................................................................................................... 30
10.8 – Vuteq GTO - ................................................................................................................................. 30
11.0 - Revision Log ...................................................................................................................................... 31
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Company History
Vuteq Canada specializes in Automotive Interior Trim, injection molding, glass assembly, vacuum
forming and custom assembly. We are TS16949 and ISO14001 Registered.
Vuteq Canada was established in Woodstock, Ontario in 1988 operating out of a 30,000-square
foot facility.
Our company started out as a Tier II glass assembly supplier, and in 25 years grew to become an
indispensable Tier I automotive interior and exterior supplier. We continue to grow and
efficiently meet the needs of our partners.
In order to meet these needs, Vuteq Canada was built on the same guiding principles that helped
to build our parent company, “Developing the future with passion and sincerity.” As a result, we
have grown to become an essential supplier and partner and remain committed to rapidly
adapting and proactively delivering solutions that help our partners succeed.
Of critical importance to the growth of Vuteq are the advances in technology. However, equally
important is ensuring great partnerships with our supplier base. We are dedicated to
establishing long-term, mutually beneficial supply agreements with other companies that share
the same commitment to continuous improvement, integrity and results.
Vuteq Canada has high expectations of all suppliers and will seek to work with those that
demonstrate strong business ethics as well as a commitment to quality, launch, continuous
process improvement and cost savings. By adhering to this recognized belief and system, we
assure our customers and ourselves a level of performance that is consistent with the quality
requirements expected by our customers.
We strive to improve Everyday - for ourselves, our partners,
our customers & our environment.
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Quality Policy
Vuteq’s goal is to be an indispensable Partner to our Customers driven by our Team members and
their Engagement to provide High Quality products and services to promote and enhance
Customer Satisfaction.
We continually improve our system and processes through ongoing evaluation of Company
Objectives that support progress.
Our commitment is to ensure that requirements and
expectations for Quality and Safety are achieved while
continuing to remain competitive.
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Definitions
AIAG - Automotive Industry Action Group. A North American automotive organization, which
publishes standards.
APQP - Advanced Product Quality Planning. A structure activity that plans, tracks and reports the
development of a process to manufacture a component/material/assembly to meet customer
requirements.
3TG – Tungsten, Tin, Tantalum and Gold.
CMRT – Conflict Mineral Reporting Template.
Conflict Minerals (3TG) - Columbite-tantalite, also known as coltan (from which tantalum is
derived); cassiterite (tin); gold; wolframite (tungsten); or their derivatives; or any other mineral
or its derivatives determined by the Secretary of State to be financing conflict in the Democratic
Republic of the Congo or an adjoining country.
CQI – Continuous Quality Improvement.
COPQ - Cost of Poor Quality.
CPPR – Consignment Part Problem Report.
DFMEA - Design Failure Modes Effect Analysis. A document generated during the design phase
that identifies and establishes controls for potential failures in a component/material/assembly.
DV - Design Validation. Testing that assures that a component/ material/ assembly meets the
users’ requirements.
ELV - End-of-Vehicle-Life is a regulatory requirement to eliminate hazardous materials from
current production components.
IATF 16949:2016 – International Automotive Task Force. Technical specification aimed at the
development of a quality management system that provides for continual improvement,
emphasizing defect prevention and the reduction of variation and waste in the automotive
industry supply chain.
IEC 17025:2005 – General requirements for the competence of testing and calibration
laboratories.
IMDS – International Materials Data System used to collect and report on the materials that
make up components and assemblies.
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IS – Inspection Standard.
ISO – International Organization for Standardization. An international standard-setting body
composed of representatives from various national standards. This promotes worldwide
proprietary, industrial and commercial standards.
KPI – Key Performance Indicator. A measurable value that demonstrates how effectively a
company is achieving key business objectives.
KPM – Kanban Per Million.
MRP – Material Requirements Planning.
NAFTA – North American Free Trade Agreement.
NIST – National Institute of Standards and Technology. A unit of the U.S. Commerce Department.
Formerly known as the National Bureau of Standards, NIST promotes and maintains
measurement standards. It also has active programs for encouraging and assisting industry and
science to develop and use these standards.
NONC – Notice of Non-Conformance – Document in which Supplier can notify Customer about
potential outflow of non-conforming product.
OEM - Original Equipment Manufacturer. Applies to automotive corporations, i.e., Toyota, GM,
Ford, FCA, Honda, Nissan etc.
PCR – Process Change Request.
PFMEA - Process Failure Modes Effects Analysis. A team process that identifies and controls
potential failures before the product goes into production.
PFS – Problem Follow-up Sheet.
PO – Purchase Order.
PPAP - Production Part Approval Process. A defined process for the validation of new materials
and subsequent process changes.
PPM – Parts Per Million.
PRCC – Process Readiness Confirmation Check sheet.
PV - Production Validation. Testing that assures that the manufacturing process produces
product that meets the customers’ requirements.
QStrat – Sourcing system used by Vuteq for Purchasing.
RC/CA – Root Cause / Corrective Action.
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RFQ – Request for Quote.
RI – Receiving Inspection.
RMA – Return Material Authorization.
Shall - Use of the word “shall” indicates a mandatory requirement(s).
Should - Use of the word “should” indicates a recommended requirement(s).
SPR – Supplier Problem Report.
Substance of Concern - A chemical substance (or part of a group of chemical substances) for
which it has been proposed that the use within the European Union be subject to authorization
under the REACH Regulation.
SQAM – Supplier Quality Assurance Manual.
SQE – Supplier Quality Engineer. A quality engineer who is primarily responsible for APQP activity
development of a supplier’s systems and quality after the start of production.
Ultriva – An electronic inventory control system.
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1.0 - Communication Expectations
Vuteq has elected to utilize the requirements of the technical specification ISO 9001
/ IATF 16949:2016 for automotive suppliers. We are fully committed to continually
improve our systems during development, planning, product / process validation,
production and delivery of quality products for our customers.
This requires the commitment of both our suppliers and associates to ensure that both these
requirements, and those of our customers, are properly implemented and maintained. By
adhering to this internationally recognized system, we ensure both our Customers and Vuteq
maintains a level of performance that is consistent with the quality requirements throughout the
world.
As a supplier to Vuteq we require, as a minimum that you are third body registered to ISO
9001:2015 and / or are designated by our customer(s) as an approved source. Further
development of your system to meet the requirements of ISO/IATF 16949:2016 is also
required and will be contingent on your company’s performance and the importance of the
product, material or service that you provide.
Laboratory facilities used for inspection, testing or calibration services are shall be accredited to
ISO / IEC 17025 or national equivalent. Laboratory facilities are also required to provide a
defined scope detailing the qualified services including equipment and personnel. Alternatively,
our customers may approve these services.
Vuteq will provide the necessary direction towards meeting these requirements and provide
support for supplier development. Suppliers are required to monitor the performance of both
their manufacturing processes and documentation; as verifying these activities may be
requested through the Quality department.
Suppliers are encouraged to contact the relevant Purchasing and Quality Coordinators with any
questions regarding Vuteq requirements or other issues that may arise. Please see Vuteq
Contact List found in Appendix 10.1
To maintain clear communications, a contact person(s) from each Supplier location must be
provided for use by Vuteq Purchasing and Quality. This person shall be designated as having the
authority and ability to assist, make decisions and able to respond in a timely and efficient
fashion. A Supplier Contact Form is required to be completed and returned to the Purchasing
Department. This shall also include an Emergency contact for off shift use.
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2.0 - Environmental Expectations
2.1 - Overview
Vuteq is required to comply with customer environmental material reporting directives and standards. To comply with these, Vuteq requires our suppliers to report product structure as well as material and substance information for both existing and new products. Our current listed substances of concern are; Lead, Mercury, Cadmium and Hex Chromium. This list is subject to change. Vuteq has the expectation that all suppliers producing component parts; that are being shipped to Vuteq facilities, shall meet the following OEM customer requirements in order to comply with the current European Union’s End of Life Vehicle (ELV) directive:
• If you are a General Motors supplier – GMW3059
• If you are a Honda supplier – HES A3060
• If you are a Toyota supplier – TSZ0001G
Please note that it is the responsibility of the supplier to ensure that they are following
the most up to date revision of the above standards.
Therefore, as per the above requirements, component parts shall not contain the
following Substance of Concern materials:
1. Hexavalent Chromium
2. Lead and Lead Compounds
3. Mercury and Mercury Compounds
4. Cadmium and Cadmium Compounds
2.2 - Conflict Minerals – 3TG
Vuteq is required to maintain 100% compliance with reporting requirements to our Customer. In
order to achieve this, each supplier in the supply chain shall request information from all their
direct suppliers, who in turn shall solicit information from the next Tier of suppliers. This cycle
shall continue until the component is confirmed as not containing any conflict minerals.
3TG – Tantalum, Tin, Tungsten and Gold
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Below is a list of resources in which information should be referenced and utilized to educate
both your company and any sub-tier suppliers about these requirements.
• http://www.aiag.org
• http://www.sec.gov
• http://conflictminerals.aiag.org
• http://www.responsiblemineralsinitiative.org
Vuteq Quality Representative will email all suppliers detailing the required annual due date of
August 31st for the submission of their CMRT. Suppliers will be reminded of this due date as it
approaches. There will be an initial letter shared, detailing the requirements that Vuteq has on
Supplier. A follow-up letter will be issued as a reminder, and where required, a final notification
that the CMRT is due. Any supplier that does not submit their accurate CMRT by the required
due date will be issued a corrective action report to track this lack of response. Additional
administration fees may be applied.
Vuteq utilizes an email distribution to ensure adequate communication of Conflict Minerals
information. See relevant Appendix 10.1 for additional information.
2.3 – IMDS
All Suppliers shall submit IMDS prior to acceptance of PPAP submission. This would include:
1. The complete chemical breakdown of each material (100% disclosure) must be
provided; detailing the CAS number and percentage of each chemical.
2. The composition of the material must represent the composition of the
material after processing.
3. If a miscellaneous, unspecified, or confidential chemical ingredients are used,
the total percentage of such chemicals in the material must not be greater
than 10% of the homogeneous material. In addition, the following statement
must be included:
“This material does not contain any GADSL substances, other than those
specifically identified”.
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2.4 - Waste
Suppliers are required to ship product in returnable containers, where possible. If
expendable packaging is required then the pack must be 100% recyclable including the
interior dunnage, unless approved by a Vuteq representative.
3.0 - Terms and Conditions
To find detailed Vuteq Terms and Conditions please refer to our external web site www.vuteq.ca.
In addition, an electronic copy will be issued to each production supplier who has been issued a
blanket purchase order or tooling purchase order. A link to the Terms and Conditions can also be
found in Appendix 10.1
4.0 – RFQ, Drawings and Documentation
4.1 – Request for Quote (RFQ)
A Request for Quote is initiated through the Purchasing Department at Vuteq and is
issued by the Purchasing Manager or one of the Purchasing Coordinators.
When new items or materials are required for quotation a quotation package will be sent out via
QStrat to the supplier. The RFQ form must be used for filling out the quotations. Submitting costs
in any other format will invalidate the quote. Instructions for completing the form are included,
however if you still require assistance, please contact the person who initiated the quote
request.
A list of assumptions will also be supplied with the quotation package describing Vuteq’s
expectations unless otherwise negotiated. We also encourage the supplier to list your
assumptions for each quotation package submitted to ensure that both of our needs are met.
Drawings, standards, specifications, samples or supporting information supplied with the RFQ are the property of Vuteq or our Customer. They shall not be disclosed, on whole or in part to any third party without prior permission.
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As directed by Vuteq, completion of the Capacity-Loading Worksheet or Capacity
Confirmation Letter will be required to ensure that adequate capacity exists to support the
production needs of Vuteq.
4.2 – Drawings and Engineering Changes
Vuteq’s Purchasing department ensures that each supplier has been provided with the latest
drawing and / or specifications to produce each product, material and service supplied.
Drawings, standards, specifications and master samples are obtained from our customers by the
Engineering Department.
Engineering changes are similarly controlled by the Engineering Department who are responsible
to communicate all required changes to the stakeholder and establish the appropriate
implementation timing. Costs for all tooling changes must be submitted and approved by Vuteq.
Proper identification of new / changed products must be strictly controlled. The Supplier is
responsible to maintain records of all current tooling, drawings, specifications and engineering
changes and ensure that all product, material and services supplied to Vuteq meet the latest
revision level.
4.3 – Documentation
The supplier is expected to establish and maintain procedures to control all documents that
define their quality system, as well as process / product requirements and performance. These
procedures must support:
• Identification and Revision Control
• Review and Approval prior to issue
• Prompt removal of Obsolete documents
• Master list or equivalent to identify the most recent Revision Levels
at all applicable locations
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5.0 – Production Part Approval Process (PPAP)
5.1 - General
Vuteq requires that all Suppliers providing materials or components used directly in
finished product meet the requirements of the AIAG Production Part Approval Process
manual (preferred) and suppliers will ensure that their PPAP submission meets the
requirements set out in the Vuteq Supplier PPAP Checklist as outlined in this SQAM. All
PPAP packages will require an approved Supplier Inspection Standard to be included.
Vuteq requires PPAP submission and approval prior to the first Mass
Production shipment (unless otherwise notified) for the following:
• All new parts or products
• Correction of discrepancies on previously submitted products
• Product modified by engineering change to design, specification or materials
In addition, Vuteq requires notification of a potential PPAP submission and Supplier
requires approval prior to the first production shipment for:
• Use of optional constructions or materials not used in previously approved PPAP’s
• Production from new or modified tools (see PPAP manual for further clarification)
• Production following refurbishment or rearrangement of existing tooling or
equipment
• Production following any change in process or method of manufacture
• Production from tooling and equipment after a plant transfer
• Change of source for subcontracted parts, materials or services
• Tooling has been inactive for twelve months or more
• Following a request to suspend shipment due to quality concerns
5.2 - Requirements
All PPAP packages shall include a Supplier PPAP checklist to be completed and delivered
with the PPAP package. The Level of PPAP submission will dictate which required
documents are included. Failure to submit the checklist, or any required documentation
can lead to the PPAP being formally rejected.
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Level 3 Submission is the default for all submissions to Vuteq unless a written waiver is
granted by the Quality Department.
Dimensional evaluations should be performed on a minimum of three pieces unless
requested otherwise. If multiple cavities are used a minimum of one piece must be
provided from each cavity unless requested otherwise.
Dimensional results, material certifications and performance testing requirements are to
be provided from sources utilizing calibrated equipment traceable to National standards
(NIST)
Process / product capability studies are to be conducted on those characteristics specified
by Vuteq and our customers.
In the event that proper documentation has not been received prior to the requested
date, payment for parts will be withheld and any rework associated will be charged back
to the supplier using our COPQ form.
5.3 – PPAP Rejection
PPAP’s will be rejected either formally or informally. Formal rejection will be given based on
numerous or major AIAG PPAP non-conformances and will result in administration fines of
$200.00 per day until the issues are corrected and the PPAP is approved.
IMDS submissions must be completed by the PPAP requested date. PPAP will not be approved
until IMDS is submitted and approved. Failure to submit IMDS will result in administration fines
of $200.00 per day until submission is completed and received. See Appendix 10.1.
5.4 – Pre-Launch Activity
During the product development phases, the supplier will be required to maintain a
Process Readiness Confirmation Check sheet (PRCC) and supporting documentation
which will be submitted to the Vuteq new program team at each major event; onsite
review and confirmation may be required or requested by the Vuteq team.
For each trial build, the supplier will be required to complete the Trial Build Status Sheet
to capture the process maturation.
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The Supplier will create an Inspection Standard (IS) for the products that they will be
supplying to Vuteq. The IS will capture key/critical points of each product; including
dimensional, material performance and visual requirements. Material performance
testing shall be completed by the supplier on their product unless specified otherwise by
Vuteq. The IS shall be signed and approved prior to PPAP submission.
All prelaunch / prototype materials will be identified with the Breakpoint tag printed on blue
paper. A hard copy of the measurement data should be included with the product and an
electronic copy shall be provided to the appropriate parties at Vuteq.
5.5 – CQI Assessments – (Continuous Quality Improvement)
Suppliers supplying product for GM business shall submit all relevant sections of CQI on an
annual basis as a requirement from our Customer. The sections required will pertain to specific
supplier processes.
Initial submissions shall be provided to the relevant Quality Engineer at time of sourcing business
or as required throughout life of the program.
Suppliers are required to ensure their CQI requirements do not expire and be prepared to have
their annual audit complete and ready to submit to Vuteq by the second week of the expiration
month. Vuteq Supplier Quality representatives will contact Supplier and report the approaching
requirement in the first week of the expiration month.
Suppliers are to ensure only competent/qualified auditors are conducting the CQI audits. An
administration fee of $200 a week will be debited from the account of any Supplier that has
neglected to provide requested CQI audit records by the expiration date. See Appendix 10.1.
If you do not have a copy, or understand the requirements, a copy can be obtained via your
Quality rep. After the yearly submission a visit on site may be required to confirm the audit and
schedule further improvement activity
Where applicable, the current CQI Assessment(s) Audits that are required are:
• CQI-9 Heat Treat System Assessment
• CQI-11 Plating System Assessment
• CQI-12 Coating System Assessment
• CQI-17 Soldering System Assessment
• CQI-23 Molding System Assessment
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5.6 – Process Change Request (PCR) Requirements
If at any point during a program a change point is required to a dimension, process, material,
manufacturing location, packaging etc. the change will require supplier adherence to the Process
Change Request (PCR) process.
The PCR process applies to both Supplier and Vuteq initiated changes to ensure that proper
documentation and project timing is maintained. All PCRs will require at least a project schedule
to be attached with the PCR form.
PCR material will be identified with the Breakpoint tag printed on blue paper. Where applicable,
a hard copy of the measurement data should be included with the product and an electronic
copy shall be provided to the appropriate parties at Vuteq
The PCR stages required will be determined by Vuteq representation at time of the PCR Plan
acceptance. This determination will consider the impact of the change to product and process
risk. Vuteq may elect to utilize only the ‘A and ‘C stages of the PCR requirement.
6.0 – Supplier Management and Performance
6.1 – Supplier Selection
One or more of the following criteria approves new Suppliers placement on the ASL:
(RA) Proof of current ISO based registration
(CA) Customer approval, following product testing
(CS) Supplier specified by the Customer
Vuteq will utilize a Supplier Audit process in order to determine a level of confidence in a
potential supplier. This audit will cover: Organization, Safety, Quality, Process/Production, Supply
Chain, Material Control and Preventative Maintenance,
The Supplier will conduct a self-assessment audit and collect objective evidence to support their
proposed scoring calculations. Following this, Vuteq will arrange an on-site audit at the supplier
location. At this time, Vuteq will score the same sections as the supplier to determine a final
score. In order for a supplier to be sourced, they must obtain a minimum of a ‘B’ ranking. All line
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items scoring below two (2) award points shall be applied to a Problem Follow-up sheet (PFS)
and actions will be documented. Following the closure of the PFS, Vuteq may conduct a follow-
up audit.
6.2 – Supplier Performance Monitoring
Overall Supplier performance is measured based on Quality and Delivery equally
weighted. PPM levels should not exceed 15 and On-time delivery is to be 100%.
Suppliers’ monthly performance is rated by the Materials and Quality departments utilizing the
Suppliers are issued, on a monthly basis, a Supplier Scorecard detailing their performance with
YTD information included.
Action items required are based on the score achieved and by following the chart below. If
improvements are not made, further corrective action is required, or re-sourcing of materials
may occur.
A Problem Follow-Up Sheet (PFS) will be used to track and record improvement initiatives. It is
the responsibility of the Supplier to populate and maintain this PFS as per the scoring criteria.
The PFS shall be shared with Vuteq representatives during conference calls, onsite visits, or via
written request to ensure adequate actions are being taken to resolve concerns. It is expected
that this document will remain current capturing all reportable occurrences.
Rating Description
A Excellent
B Satisfactory
C Minimal Pass
D Improvement Required
F Fail - Immediate improvement action required
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7.0 - Non-Conforming Product Handling
7.1 - General
The Supplier is expected to establish and maintain procedures to control all non-
conforming product. These procedures must provide the following:
• Proper Identification of all Non-conforming product
• Immediate Containment of all suspect product
• Prevention of further inadvertent processing
• Disposition authority and timely response
• Re-inspection of repaired or rework product
• Disclosure of potential outflow with issuance of NONC.
Score Quality Actions Required Delivery Actions Required
A 1) No Corrective Action Needed 2) Continue with Standard Process
1) No Corrective Action Needed
B 1) Improvement Plan to be Submitted 2) Plan must be submitted by end of calendar month
1) Improvement Plan to be submitted 2) Plan must be submitted by end of calendar month
C 1) Improvement Plan to be Submitted by end of current week
2) Initial conference call to discuss Improvement Plan.
3) Monthly conference calls to review progress until items closed
1) Improvement Plan to be submitted by end of current week 2) Initial conference call to discuss Improvement Plan
3) Monthly conference calls to review progress until items
closed
D
1) Improvement Plan to be Submitted by end of current week 2)
Initial conference call to discuss Improvement Plan.
3) Weekly conference calls to review progress until items closed. 4) On site visit may be required to confirm activities
1) Improvement Plan to be submitted by end of current week 2) Initial conference call to discuss Improvement Plan
3) Monthly conference calls to review progress until items
closed
F
1) Improvement Plan to be Submitted by end of current week 2)
Initial conference call to discuss Improvement Plan. 3) On Site visit to review issues and discuss Improvement Plan 4) Weekly Conference calls to monitor Progress of Improvement Plan 5) On site visit required to confirm closure of Improvement Plan
action items
1) Improvement Plan to be submitted by end of current week 2) Initial conference call to discuss Improvement Plan
3) Monthly conference calls to review progress until items
closed
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If non-conforming product is discovered at Vuteq the supplier will be contacted by our Quality or
Purchasing Department. Depending on the impact of the problem, Vuteq will direct appropriate
containment activities, provisions for replacement stock and an investigation is to be initiated
immediately.
The Supplier initial response actions must be completed within 24 hours of the problem
notification. However, at times immediate support may be required if failure mode has
immediate risk to Vuteq production capabilities. Non-conforming product is the supplier’s
responsibility to correct in a timely manner so Vuteq’s production is not adversely affected and
we do not impact our Customer.
7.2 – Onsite Sorting
Vuteq Supplier Quality representatives will determine whether sorting activities are required.
This sorting requirement could be required at the supplier location, within Vuteq, at Vuteq
customer locations, or in some cases all three.
Determination for sorting requirements will be based on the following occurrence criteria:
• Compromise to Fit / Form / Function n = 1 part
• Compromise to Visual Appearance only n = 5 parts
The expectation is Vuteq will receive three (3) clean certified shipments at Vuteq before
the sort/certification is considered complete. The supplier has the following options to
utilize during their containment activities:
• The Supplier can deploy its own trained team members to Vuteq to support
sort/certify activities.
• The Supplier can deploy their DRE, or localized Resident Quality Engineer.
• The Supplier has the option of utilizing a specified Third-Party sorting agency to
perform the work on their behalf. See Appendix 10.1.
The safety of all visitors; whether visiting or working within a Vuteq facility is of
paramount importance to Vuteq. For a detailed instruction sheet which all visitors to
Vuteq must adhere to, please refer to the Supplier -> Forms section on our external
website at www.vuteq.ca
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7.3 - Cost of Poor Quality (COPQ)
The supplier is responsible for the costs associated from sorting efforts. In addition, the
supplier is responsible for making the sorting arrangements with the outside sorting
company. In the event that Vuteq does not receive adequate response from the supplier,
Vuteq representative shall initiate the sorting efforts on the supplier’s behalf. If this
requires Vuteq to arrange an inspection PO, all associated costs will be recuperated via
the COPQ form.
As a result of supplier repeated poor quality, Vuteq supplier quality representative will
issue a COPQ form which will include financial impacts resulting from the sorting, rework,
shipping, line stoppage and administration costs for those situations that impact or
potentially impact Vuteq or our customers.
Some associated costs included on Vuteq COPQ form:
• $40.00 per hour that a Vuteq associate sorts product on behalf of a supplier
concern.
• $50.00 per hour that a Vuteq associate reworks product on behalf of a supplier
concern.
• $350.00 per day for overhead costs; administration, handling, floor space.
See Appendix 10.1.
7.4 – Return of Material Authorization (RMA)
The supplier is required to provide an RMA # within 48 hours of notification
acknowledging product costs and rejection. Payment is expected within 30 days from
receipt of RMA. Due to space restraints within the facility, a quick turnaround of
nonconforming product is essential. For this reason. If an RMA is not received within 48
hours of request, parts will be scrapped and the supplier charged.
On a regular basis; either weekly, bi-weekly, or at least monthly, Vuteq’s Supplier Quality
representative will request an RMA# for the disposition of supplier’s non-conforming
product accumulated from our production areas that does not immediately impact our
ability to provide quality products.
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8.0 – Corrective Actions
8.1 - General
Corrective Actions are required for all issues having major impact on Vuteq’s production
and/or ability to provide quality products to our customers.
Vuteq’s Supplier Quality representative may also initiate Corrective Actions for
accumulated nonconforming products especially to address repeat problems or
worsening defect trends. The supplier is expected to address all defect conditions and
implement continual improvement initiatives for all supplied materials, product and
services. This will also be tracked and monitored using the previously referenced PFS
form.
The Supplier is expected to establish and maintain procedures for dealing with corrective
actions. These procedures must provide the following:
• Investigation of the Root Cause of nonconforming product
• Implementation of Corrective Actions to prevent reoccurrence of problems
• Analysis of processes, concessions, quality records, service reports and customer
complaints to identify & eliminate potential causes of problems
• Application of controls to ensure corrective actions are effective
8.2 – Documentation Requirements
Vuteq’s Supplier Quality representative will issue either one of two forms to Suppliers, the form
received will be determined by the Supplier relationship.
• Consignment Part Problem Report (CPPR) will be issued to suppliers that are under
consignment with Vuteq.
• Supplier Problem Report (SPR) will be issued for all other supplier relationships.
These forms are used to communicate and initiate corrective action requirements to the
Supplier. The reporting formats correspond to our end customers’ requirements and follow their
expectations for thorough investigation, root cause analysis, countermeasure implementation
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and verification. For suppliers providing products used by more than one of our customers,
either form could be issued depending on the end customer program.
The Supplier is responsible to provide their initial response for containment and temporary
countermeasures within 24 hours of the issuance date for all Quality and Delivery problems.
The next three (3) shipments of product will be certified for the concern identified in the SPR.
These three (3) shipments may need to be inspected at Vuteq as detailed in Section 7.2. If
inspection is required at Vuteq facilities, the sort will not be considered complete until all
three (3) certified shipments are found to be clean and free of defects. This sorting activity
would include either 100% inspection, or adequate sampling of the certified stock. If any
defective parts are found within the certified material, the containment, certification and
sorting will be re-initiated. This would include altering the previously used inspection
method. Please note, during the inspection of product, it is the expectation of Vuteq that the
entire part is reviewed for conformance. Not only the highlighted area of concern that
resulted in the sorting requirement.
Certified material shall be clearly identified in order to maintain appropriate containment
within Vuteq facilities. The Vuteq Certification Tag printed on yellow paper is the
preferred method of identification. However, where approved by Vuteq representative,
an alternative clean point identification is acceptable. Clean point identification shall be
applied to each individual product label (left corner of shipping label) but must not cover
any detail on the shipping label to ensure clear identification of all certified product.
The supplier must submit their permanent corrective actions within 14 working days of the
original issuance date. The proposed / implemented C/M’s and targeted completion date(s)
are returned to the originator at Vuteq along with any supporting documentation for approval.
A follow-up investigation may be conducted by Vuteq to ensure that the corrective actions are
in place and effective prior to closing out the CPPR or SPR
The CPPR/SPR are communication tools that allow Vuteq and the supplier to document and
correct issues that may arise during the relationship. Failure to properly respond in accordance
with the timing requirements and ensure corrective actions are effectively implemented to
meet Vuteq’s criteria, may result in an onsite audit from the Purchasing and Quality groups
and may damage relationships for further and / or future business.
Suppliers having difficulty understanding Vuteq’s requirements, or need assistance in
completing any documentation, are encouraged to contact either a Supplier Quality
representative or a Purchasing Coordinator for their support and clarification.
Vuteq strongly believes that solid relationships with our suppliers is essential for our
success. In addition, this solid relationship will support our customers’ success and help
to continually develop all partnerships through effective communication.
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9.0 = Forecasts, Ordering, Labels and Customs
9.1 - Weekly Planning Forecasts
The Material Planners shall provide a Planning Schedule for the parts purchased from the
supplier, using the Ultriva Portal or email. The Planning schedule will reflect a minimum of
12 weeks of our customers planned production. Beyond this 12-week window the
supplier will plan using the expected Annual Volume. As stipulated by Vuteq’s customers,
Firm Orders for finished goods will not exceed a 4-week window. Vuteq does not run an
MRP system and the planning forecast is not a firm order the supplier ships against. The
planning forecast is an estimate of our usage based on our customers’ requirements.
Some weeks may have higher numbers than actual, some weeks may be lower than the
actual numbers required. Vuteq requires the supplier to manage their own inventory to
ensure sufficient finished goods material is available at the supplier’s location at all times,
based on the planning forecast. Failure to have sufficient inventory on hand causing
expedites or delays to Vuteq production will result in charge backs to the supplier for
those expenses incurred.
Once a program is scheduled for build out, the Material Planners will issue a letter with the
planning forecast showing the parts affected. The supplier must acknowledge in writing, the
receipt of the letter and understanding of the requirements for build out. The Material Planners
will communicate to the supplier on a weekly basis of the updated quantities required to satisfy
the customer’s requirements. At the end of the program it is the supplier responsibility to ensure
they are carrying proper inventory levels to ensure ZERO obsolescence.
9.2 – Service Parts
Vuteq may have service parts requirements for the materials or components from the supplier.
These materials or components may be required for a period of 15 years after the end of the
program. The Material Planners will work with the supplier to establish those requirements and
determine how best to supply those parts for the required timeframe.
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9.3 – Blanket Purchase Orders
Once quotations have been submitted to the purchasing group and are agreed upon, that
information will be used to make the Blanket Purchase Order. The blanket order covers
the items quoted and the agreed upon price for as long as Vuteq has a requirement for
the parts or materials from our customer’s.
Vuteq may terminate a blanket order agreement with written notice. When blanket
orders are changed with additional / deleted items, pricing changes etc. the same blanket
order number will be used but the revision level will change. Pricing on blanket orders are
to remain firm for the length of the program and cost downs are required on a yearly
basis in order to support our Customers. If the supplier has any questions or concerns
regarding the blanket order they should contact their Purchasing representative.
9.4 – Order Release
Releases are generated from our Kanban demand and are transmitted by email or Ultriva to the
supplier based on the agreed upon lead times and order schedule. The Release is a firm order to
the supplier with the quantity, part numbers and expected delivery date.
It is the supplier’s responsibility to acknowledge the order by signing the release and fax/email
return or thru the Ultriva portal. This confirms that the order has been received and that the
delivery date is acceptable. If you are unable to meet the delivery date or the quantity you must
contact the Material Planner and advise them of the situation.
9.5 – Backorder Materials
If a shipment will be backordered, it is up to the supplier to contact relevant planner by
phone prior to the shipment. If the contact has not been made after the receipt of the goods,
a copy of the release will be faxed over showing the backordered items.
It is the supplier’s responsibility to update Vuteq on the expected delivery date. If there is a
potential impact on our production line or our customer’s production line, expedites may be
necessary. Vuteq will work with the supplier to minimize the expedite costs but the supplier
is ultimately responsible.
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9.6 – Customs Requirements
All suppliers shipping parts to Vuteq Canada must submit a NAFTA Certificate showing the
country of origin for the parts supplied on a yearly basis.
Any charges incurred by Vuteq because of insufficient paperwork will be charged back to
the supplier. We encourage all suppliers to be familiar with the changing regulations for
Customs Clearance, participation in programs such as FAST, CTPAT is highly
recommended.
9.7 – US Suppliers
To ensure supply of goods across the border in a timely fashion and to ensure that goods
are qualified for NAFTA properly, it is important that suppliers understand their
requirements. On a yearly basis, a competent person who understands NAFTA and customs
regulations must complete a NAFTA Certificate. The Supplier or an outside source such as
Willson’s International may be solicited by Vuteq on our behalf to provide this information.
Each shipment leaving your facility must have a Commercial Invoice, NAFTA Certificate, Bill of
Lading and Packing slip. If you are unsure of what paperwork is required before shipping, please
contact the Vuteq representative for direction and they will be able to assist you.
With the ever-changing directives of border security initiatives on the US and Canada
border crossings, additional requirements for shipping, tracking, verification,
identification, etc. may be requested of the Supplier.
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9.8 – Packaging
When returnable packaging is determined to be appropriate Vuteq will supply packaging for the
program based on delivery frequency and the below calculations:
Delivery
Frequency
Vuteq
Safety
Delivery Returns Supplier
Safety
Overtime
Coverage
Total
Days
Daily 1.5 1 1 2.5 1 7
3 x per Week 2 2 2 2 1 9
2 x per Week 2.5 2.5 2.5 2.5 2 12
Weekly 5 5 5 5 3 23
If the supplier feels they require additional packaging to support bank builds, they will be
responsible for this cost.
9.9 – Logistics Wait Time Charges
Vuteq controls its local logistics internally and utilizes a third-party logistics company for all
international shipments. The Material Planners will work with the supplier to establish pick-up
window times for all shipments. In the event of a delay holding a driver at the supplier’s location
beyond the standard one-hour window time, the supplier will be responsible for covering any
additional costs or charges. Vuteq standard charge is set at $75.00 (CDN) per hour.
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10.0 - Appendix
In addition to all the preceding materials detailed in the body of the Vuteq SQAM, the following
appendices will provide facility specific information that is specific to a location.
Please find information to the specific Vuteq facility you are doing business with and ensure all
requirements are clear and understood.
10.1 – Vuteq Canada Inc. –
The below information is provided to present additional Vuteq Canada specific detail
to support previous sections of this SQAM. Please refer back to the specified
sections when reading below.
CONTACTS:
When attempting to reach out for assistance, or additional information on items related to
Vuteq Canada, please see our Purchasing/Materials and Quality Contacts list which can be found
on our external website – www.vuteq.ca
Section 2.2
For all Conflict Minerals Inquiries, please email the Conflict Minerals Group at:
Section 3.0
Please find detailed Terms and Conditions below
http://www.vuteq.ca/assets/Supplier/Vuteq-Supplier-Terms.pdf
Section 5.3
PPAP will not be approved until IMDS is submitted and approved. Failure to submit IMDS will
result in administration fines of $200.00 per day until completed submission.
Section 5.5
An administration fee of $200 a week will be debited from the account of any Supplier that has
neglected to provide requested audit records by the expiration date.
Section 7.2
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Below is a provided list of Vuteq Canada approved sorting agencies. It is the Suppliers
duty to ensure one of the three provided agencies are on their internal approved
agency list. The approved sorting agencies for use at Vuteq Canada facilities are:
Q2 Management - Website – 1 888 510 0664
Escape Proof - Website – 519 807 3650 or 905 815 2452
The PIC Group - Website – 1 800 263 3735
Regardless of which sorting option is selected, Vuteq also requires the completion of an internal
‘Support Staff Sorting Log’. This is to be completed on a shift to shift basis and provided to a
Vuteq representative at the end of each shift. These representatives are also detailed on the Sort
Log. These sheets will be provided in the sort area selected.
Section 7.3
• $40.00 per hour that a Vuteq associate sorts product on behalf of a supplier
concern.
• $50.00 per hour that a Vuteq associate reworks product on behalf of a supplier
concern.
• $350.00 per day for overhead costs; administration, handling, floor space.
Section 9.6
Any charges incurred by Vuteq because of insufficient paperwork will be charged back to the
supplier.
Section 9.9
In the event of a delay holding a driver at the supplier’s location beyond the standard one-hour
window time, the supplier will be responsible for covering any additional costs or charges. Vuteq
standard charge is set at $75.00 (CDN) per hour.
10.2 – Vuteq Kentucky - FUTURE USE - Add relevant info specific to each facility
10.3 – DV Mississippi - FUTURE USE - Add relevant info specific to each facility
10.4 – DV Indiana - FUTURE USE - Add relevant info specific to each facility
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10.5 – Vuteq SLP – Mexico - FUTURE USE - Add relevant info specific to each facility
10.6 – Vuteq Ramos – Mexico - FUTURE USE - Add relevant info specific to each facility
10.7 – Vuteq Brazil - FUTURE USE - Add relevant info specific to each facility
10.8 – Vuteq GTO - FUTURE USE - Add relevant info specific to each facility
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11.0 - Revision Log DATE
mm.dd.yy DESCRIPTION REVISION
04.03.97 Draft Procedure released for review A
05.30.97 Supplier Rating scores modified. VCR system revised B
05.01.99 Modified to meet QS-9000 requirements C
05.05.00 Supplier Rating scores revised D
07.12.01 Changed descriptions from Vendor to Supplier E
07.21.03 Modified to meet TS 16949:2002 requirements F
02.04.05 Added Material Control documents and revised Supplier Management G
01.04.06 Updated manual, yearly review, sections 1.1, 2.1, 5.2, 6.1, 6.2 H
09.25.07 Updated manual, sections 3.1, 4.1, 4.2, 4.7, 5.2 I
01.02.08 Updated manual, sections 1.1, 5.2 J
01.09.09 Updated manual, contacts K
01.07.10 Updated manual, contacts, sections 4.1, 6.2 L
01.17.11 Updated manual, contacts, added 1.2 Terms and Conditions M
02.07.12 Updated manual, 1.1 Environmental Section, Contact names N
02.19.13 Updated manual, contacts, modified rating system for suppliers O
01.01.14 Updated manual, IMDS, Supplier Ordering P
02.14.15 Updated manual, contacts Q
11.19.15 Updated manual, contacts, added CQI requirements, Qstrat quoting requirements
R
01.20.17 Updated manual, contacts, CQI, PPAP, sorting, added 7.0 for forms S
03.13.17 Updated manual, Vuteq certified tag requirement T
04.04.17 Updated manual, 6.1 Sorting requirements U
04.17.17 Updated manual, 6.1 reinstated hourly Vuteq charges removed in Rev T. Format updates
V
01.19.18
Updated manual, name, format of headings/sub headings, add definitions, add company history, appendix (10.0), update CMRT (2.2), Onsite sorting (7.2), COPQ (7.3), Documentation requirements (8.2), Add Packaging (9.8), Add Logistics (9.9), removed contacts
W
