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I Welcome and Introduction to the Agenda-Patrick Harger

II Supplier Quality Mission/Responsibilities and Organization

III PPAP Playbook-Revision “E”-Phani Vutukuri

IV PQV(Part Quality Verification) Instructions/Importance-Patrick

V PPM(Part Per Million-Defective)–Change in calculations-Patrick

NCR Supplier Webcast Agenda-April 15, 2013

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NCR Global Supplier Quality TeamGlobal Director of Supplier Quality

Patrick S Harger

4-5-13

European Region Manager of Supplier Quality

Norbert Teker

APAC Region Manager of Supplier Quality

YL Chang

Americas Region Manager of Supplier Quality

JD Thieke

PPAP and PQV Manager of Supplier Quality

Phani Vutukuri

India Region Manager of Supplier Quality

Venkatesan Mohan

6/51

NCR Confidential 3• Total H/C – 5

Global Director of Supplier Quality

Patrick S Harger

European Region Manager of Supplier Quality

Norbert Teker

SQE Engineer

Nairn MitchellSQE Engineer

Edina Szujo

SQE Engineer

Open position-UK

SQE Engineer

Open position-BUD

4-5-13

European Region Supplier Quality Team 2

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Asia Pacific Supplier Quality Team

• Total H/C – 7

Global Director of Supplier Quality

Patrick S Harger

Asia Pacific Region Manager of Supplier Quality

YL Chang

SQE

Sally Liu

SQE

Yao Peng

SQE

Nemo Ruan

SQE

Amanda Yang

SQE

Tone Li

4-5-13

SQE

Leo Xu

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Barry KohutSupplier QualitySouthern Region

Global Supplier Quality – Americas

JD ThiekeSupplier QualityAmericas Mgr

South AmericaNorth America

OpenSupplier QualityAuditor

OpenRepair Supplier QualityCentral America Region

Last update: 2013-04-08

Luciano BarrosSupplier QualityManaus Region

Alexandre IartelliSupplier QualitySao Paulo Region (Metals)

Dante ManeschiSupplier QualitySao Paulo Region

Jinwu FanSupplier QualityMidwest Region

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4-5-13

India-Supplier Quality Team6

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India-PPAP & PQV Team

4-5-13

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NCR New Parts Supplier Quality Responsibilities

• Mission: Create processes and infrastructure within NCR and our Supply Base to insure all active parts are consistently, statistically capable going into our factories and field.

• Therefore:

• We perform Supplier Assessments to add/remove from our Approved Supplier List

• We formulate the PPAP policies and procedures and maintain the PPAP (Production Part Approval Process) Playbook on the NCR website for all suppliers.

• We assess risk factors for each part and establish the PPAP Levels

• We schedule and review all PPAP submissions from suppliers

• We schedule and perform either Physical PQV (Part Qualification Verification) audits at suppliers or review Eaudits submitted by suppliers.

• We issue SCARs for PPAP or PQV failures and approve all SCAR responses even if initiated by another part of the organization.

• We manage data to provide PPM and supplier performance data to the suppliers and to the NCR Organization

• We work with suppliers to resolve quality issues and drive Root Cause Corrective Action

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2013 Parts Quality Plan

Services Parts “Usage” Focus Top 10 – Asia, Europe, CLA, Top 20

– NAMER 40 Unique Parts

2013 Volume Part Focus 3200 parts (includes 190 above)

Impact Parts List - 190 parts

Logistics Parts “Spend” Focus - 15

Unique Parts

Mfg Parts Focus85 Parts (PQV only)

Repair Supplier Focus50 Unique Parts

Time to 1st Failure

Improvement

PQV Capability2013 Start

Target Yield= 97%

Time to 2nd Failure

Improvement

OBF%Improvement Target= 3.0%

PQV CapabilityTarget = 3200 parts,

Yield = 97%

NFF%Improvement Target= 23%

PQV Count Achievement

(3200 part/qtr.) = 100%

PQV SCAR AccountabilityResolve Issues Preventatively

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PPAP Playbook Changes

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Document Number: 497-0469479 Revision: E

Date: April 1, 2013

Prepared by: Venkatesan Mohan

Ganesha Pandian S

PPAP PLAYBOOK

Production Part Approval Process (PPAP)

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Major Changes

• Characteristics on the prints & Capability Requirements – Modified

• Mandatory Fields Interlocked with Production Warrant Sign off

• Packaging & Labeling Requirements added

• Improved Clarity & Reporting of Performance Test Requirements

• Guidance provided for Equivalent / Alternate Material documentation

• Added features to guide users to avoid Administrative issues

• User Manual Created to help Users on how to fill the PPAP Playbook and the requirements

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Dimensioning & CpK Standards – Sep 2011

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Dimensioning & CpK Standards – Nov 2012

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Dimensioning & CpK Standards – Feb 2013

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Packaging

Documentation Requirement

• Production Warrant

• Packaging Test Report

Test result format provided in PPAP Playbook

Note – PPAP Request will cover where Packaging Information required for approval

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Labels

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Documentation Requirement

• Production Warrant

• Dimension Report

• Material Test Report

• Appearance Report

• RoHS

PPAP will be Granted “ Interim Approval” with PPAP PSW sign off

Full approval granted after Successful LTO Completion

obtain Signature on label from Plant QA and maintain as Master Samples

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Pop U

p E

rror M

essa

ge

• Pop Up Error Message – for any errors in mandatory fields

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Pop Up Error Message

RFC Number

• Pop Up Error Message for If alternate material is used without RFC approval• Do not allow Production Warrant Sign off

• Once RFC details provided – Production Warrant Sign off is enabled

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NewNew

Separate Tab sheets added for

1. RoHS Compliance Report

2. Salt Spray Test Report

3. Performance Test Report

4. Balloon drawing

5. Sub supplier source

6. Packaging Test ReportNew

New

New

New

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CCD to RCD

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RCD – Require d Closure Date

Request for PPAP

PPAP Commit

Date

Actual Submitted

Date

Review Date

Accepted Update to

Merlin & tracker

Reject Path

Request for PPAP with

RCD

Reject Path

ECC DR Release

Submit PPAP

Review Date

Approved Date

Last Submitted

Date

NPI / ESECC /

B Builds etc.

Parts Availability / AT Builds

• Performance Measured to Suppliers Committed Dates

CCD

• Performance Measured to NCR Requested Dates• Target to achieve >95% for Q4

RCD

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Additional Changes

• PPAP Request shall have

• Engineering Drawing [ OR Print ]

• Drawing from PPAP team – with Critical Dimensions identified where required – in pdf version

• Required Closure Date [ RCD ]

• Contact Information in case of queries / issues

• Blank Playbook Rev E

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PVQ (Part Quality Verification) Process

Objective: To routinely verify that suppliers are providing consistent, statistically compliant parts and assemblies to NCR plants , repair suppliers and customers.

Preparation for NCR SQ Engineer (SQE) and the Supplier1. Review PPAP history and revision level on file. Take copy for comparison.2. Note and take any active Engineering Change Notices to discuss impact and timing of next PPAP.3. Determine status of parts to be measured:

A. Preference is to use parts that are being manufactured at time of PQV orB. Take parts from supplier stock-note date of manufacture and revision level orC. Take parts from NCR stock as last resort.

4. Pull SCARs and PPM/Quality history for reference for continuous improvement.5. Pull past PQV history for follow up and notation of consistency of control.6. The preparation, by the supplier, is critical to be efficient and effective

when the SQE arrives.7. Parts should be gathered, numbered and data should be taken prior to SQE arrival.

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Objective:To routinely verify that suppliers are providing consistent, statistically compliant parts and assemblies to NCR plants, repair suppliers and customers.

On-Site PQV Instructions-II Manufacturing Process/Control Plan Review

A. Review the process flow chart. If it has changed, supplier should resubmit PPAP.B. Review Control Plan & data collection. Note any actions taken when not in control.C. Verify that the operators know how to STOP the process and what they need to do contain product and re-start the process according to their control plan.D. Assign action plans to supplier if not satisfied with controls in place and follow up.E. Review the PFMEA, discuss any additions performed and/or needed.F. Issue SCAR(s) as required to assure documented non- conformances.

PVQ (Part Quality Verification) Process

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PVQ (Part Quality Verification) Process

On-Site PQV Instructions-Data Gathering and AnalysisA. For critical dimensions (CD); review Gage R&R (GRR) and note who were the ‘operators’ and measurement instruments. Assure that the same operators and instruments are used for PQV.B. Witness at least 3 samples (of the 30 samples for Cpk calculation) for all CD when operator is taking data.C. Collect data, review and draw conclusions relative to requirement of Cpk>1.67D. Assign actions items to correct/contain any non conforming

parts from supplier to NCR.E. Select 5 samples for ‘minor’ dimensions that have had SCARs. All measurements must be within print tolerance. F. When there are no critical dimensions for a PQV, review SCARs for verification of effectiveness with documented evidence. G. Assure the Control Plan has been modified and/or the PFMEA modified.

Objective:To routinely verify that suppliers are providing consistent, statistically compliant parts and assemblies to NCR plants , repair suppliers and customers.

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PPM-Defective-The Basic Formula

Supplier PPM = Quantity of “supplier liable parts defects”

Quantity of all parts receipts

Eligible supplier PPM parts will be those received by NCR into our factories and warehouses and on the books of NCR

Parts located inside of supplier locations, their distributors and VMI warehouses are not eligible for PPM defect reporting as they are not received by NCR

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Rejects counted as Supplier PPM

Parts are rejected from the following areas where deemed supplier fault

• Reject from NCR WIP inventory

• Reject from NCR stock purge or screen• Counted regardless of supplier or NCR performing the screen / rework

• Reject from NCR incoming inspection screen or full lot rejection

• Counted regardless of supplier or NCR performing the screen / rework

• Supplier spills/escapes - recall of defective parts or NCR finished goods

• Customer spills/escapes – recall of defective parts that reached customer

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Rejects NOT counted as Supplier PPM

Parts rejected where supplier fault cannot be established or is yet to be established

• Parts returned to supplier for defect analysis – typically electronics

• Typically known as “in process” disposition

• Will not be recorded as supplier PPM at time of disposition

• Will be recorded as PPM once supplier analysis is completed

• In transit parts shipped prior to closure of a reported SCAR

• Parts received at NCR at time of raising a SCAR will be counted

• Parts remaining in transit – not yet received by NCR after the closure of the SCAR will not be counted – will be flagged for quarantine at incoming

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Rejects NOT counted as Supplier PPM (cont’d)

Transit damage parts

• Will not be counted if damage is due to carrier mishandling

• Will not be counted if legacy packaging is deemed to be inadequate and needing improvement – correct action is to raise a SCAR for correction

• Will be counted where supplier did not follow their defined packaging process

• Will be counted where supplier did not follow NCR specified packaging requirements

• No clear specification for the defect

• Will not be counted if the defect is completely within published design specifications, Corporate standards, drawings, or quality criteria of which they have been informed.

• Improved criteria should be negotiated with Engineering / PPAP / QA as required to eliminate ambiguous criteria

• Co-parts rejected

• i.e. when a defective harness damages a motor – the harness supplier is liable for one defect, the motor supplier is not liable for a defect

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Wrap Up and Summary

The revised PPAP Playbook (Rev E) is now in force and will be on the NCR website after 4/18/13 It has been expanded to include items such as packaging and labels

Access to the PPAP Playbook including forms and training is at: http://www.ncr.com/about-ncr/suppliers/manuals-forms-and-templates

The PPM calculation has been expanded beyond receiving inspection to include all supplier-caused rejected parts.

The focus this year is on the 3200 parts we have identified for PPAP and PQV The 190 “Impact Parts List” is included in the 3200 parts list There will be a higher level of PPAP and PQV performed on assemblies and electronics this

year with more emphasis on identifying critical characteristics of the functioning assembly or electronic unit.

Your India PPAP Team, NCR Engineering and your assigned SQE will be in touch with those suppliers who have parts on the 190 Impact Parts List to focus on field usage and/or field failures to improve the MTBF (Mean Time Between Failure).

It is imperative that our suppliers contain issues and drive for sustained, statistical control of their products delivered to NCR.

Expect quarterly PQV Audits (either physical audit or Eaudit) by your NCR Team. Please be prepared!

Thank you for attending. There will be a hard copy of the presentation available soon on the website.

Are there any questions or comments?

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Contact Information

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My contact information is:

Patrickshelby.harger@ncr.comCell phone: 802-310-1691

I look forward to traveling to many of your sites in early 2013 to meet your staff and view your facilities.