MERCEDES - Supplier Quality Assurance Manual (SQAM)

Quality Department SMP: Supplier Quality Assurance Manual
SMP Number: PSQ 27.00
Supplier Quality Assurance Manual (SQAM) Page 2 of 63
1 Supplier Quality Assurance Manual (SQAM) ...................................................................5

1.1 Distribution ................................................................................................................................... 5
1.2 Purpose ......................................................................................................................................... 5
1.3 Scope ............................................................................................................................................ 5
1.4 Definitions/Acronyms .................................................................................................................. 6
1.5 Responsibility................................................................................................................................ 9
1.5.1 Roles of Supplier Quality in Q3.0 .............................................................................................. 9
1.5.2 Tasks/Responsibilities............................................................................................................ 10
1.6 Supplier General Matrix .............................................................................................................. 11
2 Quality Activities Prior to Part and Process Approval (PPA) ........................................ 13
2.1 Sampling Planning ...................................................................................................................... 13
2.2 Supplier Organization ................................................................................................................. 13
2.3 Program Management ................................................................................................................ 14
2.4 VDA-RGA Program ...................................................................................................................... 14
2.5 Supplier Audits ........................................................................................................................... 14
2.5.1 VDA 6.3 Process Audits .......................................................................................................... 14
2.5.2 TRL Audit ................................................................................................................................. 15
2.5.3 PFA Audit ................................................................................................................................ 15
2.6 Key Quality Characteristics ........................................................................................................ 16
2.7 Inspection Gauge Requirements ................................................................................................ 17
2.8 Testing Requirements and Responsibility................................................................................... 17
2.9 Pre-Launch Control Plan and Launch Containment Plans .......................................................... 18
2.9.1 Plan Requirements .................................................................................................................. 18
2.9.2 Pre-Launch Control Plan ......................................................................................................... 19
2.9.3 The Launch Containment Process .......................................................................................... 19
2.10 Process Flow Chart, Control Plans and FMEA ........................................................................ 19
2.11 Supplier Inspection Standards ................................................................................................ 19
2.12 Part E-Level and Q-Level History Tracking .............................................................................. 20
2.13 Supplier Portal Applications .................................................................................................... 21
3 Production Process and Product Approval (PPA) ......................................................... 22
3.1 Series Production Approvals of Other Daimler Plants ................................................................ 22
3.2 Execution of the PPA Process..................................................................................................... 22
3.3 Identification/Labeling ............................................................................................................... 23
3.3.1 Identification of Parts .............................................................................................................. 23
3.3.2 Shipping Label......................................................................................................................... 23
3.3.3 Part Specific Labels and/or Bar Codes .................................................................................. 24
3.3.4 IMDS Requirements ................................................................................................................ 24
3.3.5 FDOK Requirements................................................................................................................ 24
3.4 Trigger for the PPA Process ........................................................................................................ 24
3.5 PPA Documentation Submission Requirements ......................................................................... 25
3.6 Sample Parts............................................................................................................................... 27
3.7 PPAP Sample Part Submission Procedure.................................................................................. 28
FORM QDF01-02 REV 12APR2011
3.8 Approval Status .......................................................................................................................... 29

3.9 Part Approval Matrix ................................................................................................................... 30
3.10 Process Approval Matrix ......................................................................................................... 31
3.11 Deviations ............................................................................................................................... 32
3.12 Changes Requiring Re-Submission of PPAP ........................................................................... 33
3.13 Delivery of New or Changed Production Product ................................................................... 33
3.14 Tier Supplier Responsibilities .................................................................................................. 33
3.15 Storage Periods....................................................................................................................... 34
3.16 Reporting................................................................................................................................. 34
4 Trial Series Support ........................................................................................................ 35
4.1 Trial Product Measurement Requirements ................................................................................. 35
4.2 Documentation to Accompany Parts .......................................................................................... 36
4.3 Supplier Maturity Vehicle ........................................................................................................... 36
5 Production Launch Support ........................................................................................... 37
5.1 Launch Containment Plan........................................................................................................... 37
5.2 On-Site Supplier Resident Engineers/Supplier Representatives ............................................... 37
5.3 Rework and Sort of Non-Conforming Product ............................................................................ 37
5.3.1 Reworking of Non-Conforming Product .................................................................................. 37
6 Series Production Support ............................................................................................. 38
6.1 Containment of Non-Conforming Product .................................................................................. 38
6.2 Containment ............................................................................................................................... 38
6.3 Part Disposition .......................................................................................................................... 39
6.4 Rework ........................................................................................................................................ 39
7 Corrective Action/Q-H:ELP............................................................................................ 40
7.1 Corrective Actions ...................................................................................................................... 40
7.1.1 Reporting Tool ......................................................................................................................... 40
7.2 Q-H:ELP....................................................................................................................................... 40
7.2.1 Basic Approach ....................................................................................................................... 40
8 Gauge Standard .............................................................................................................. 42
8.1 Scope .......................................................................................................................................... 42
8.2 Responsibilities ........................................................................................................................... 42
8.3 Requirements ............................................................................................................................. 42
8.3.1 Kickoff Meeting ....................................................................................................................... 42
8.3.2 Design Approval ...................................................................................................................... 43
8.3.3 Final Approval ......................................................................................................................... 43
8.3.4 Production Implementation ................................................................................................. 43
8.3.5 Engineering Changes and Modification to the Gauge ......................................................... 43
8.3.6 Build Requirements ............................................................................................................. 43
8.3.6.1 General Requirements ..................................................................................................... 43
8.3.6.2 General Design ................................................................................................................ 43
8.3.6.3 Bases ............................................................................................................................... 44

8.3.6.4 Body ................................................................................................................................. 44

8.3.6.5 Datum .............................................................................................................................. 44
8.3.6.6 Clamps ............................................................................................................................. 44
8.3.6.7 Pins .................................................................................................................................. 45
8.3.6.8 Flush and Feeler Checks ................................................................................................. 45
8.3.6.9 SPC Checks ..................................................................................................................... 45
8.3.6.10 Identification ................................................................................................................ 45
8.3.6.11 Build Tolerances ........................................................................................................... 46
8.3.7 Buy-Off Requirements ......................................................................................................... 46
8.3.7.1 CMM Certifications .......................................................................................................... 46
8.3.7.2 Gauge R&R Requirements ............................................................................................... 47
8.3.8 Maintenance Requirements ................................................................................................ 47
8.3.8.1 Storage ............................................................................................................................ 47
8.3.8.2 Repair and Maintenance .................................................................................................. 47
8.3.8.3 Re-Certification ................................................................................................................ 48
9 Supplier Evaluation System ........................................................................................... 49
9.1 Quality Performance Score......................................................................................................... 49
9.1.1 Distribution of Quality Score ............................................................................................... 49
9.1.2 Calculation of Quality Score ................................................................................................ 50
9.1.2.1 Range Table ..................................................................................................................... 50
9.1.3 Quality Performance Score Categories ............................................................................... 51
9.1.4 Supplier Quality Performance Card Explanation ................................................................. 51
............................................................................................................................................................... 52
9.2 Logistics Performance Score ...................................................................................................... 53
9.2.1 Explanation of each Logistics KPI ....................................................................................... 53
9.2.1.1 On-Time Delivery ............................................................................................................. 53
9.2.1.2 ASN Errors ....................................................................................................................... 53
9.2.1.3 Mislabeled Parts .............................................................................................................. 54
9.2.1.4 Responsiveness ............................................................................................................... 54
9.2.1.5 Blocks in Production ........................................................................................................ 55
9.2.1.6 Expedited Shipment......................................................................................................... 55
9.2.1.7 Missed at Stations ........................................................................................................... 56
9.2.2 RAN Scorecard Calculation ................................................................................................. 56
9.2.2.1 Logistics Performance Scorecard Explanation – RAN Suppliers ..................................... 57
9.2.3 SEQUENCE Scorecard Calculation ...................................................................................... 58
9.2.3.1 Logistics Performance Scorecard Explanation – SEQ Suppliers ..................................... 59
9.2.4 Logistics Performance Score Categories ............................................................................ 60
10 Documents/References................................................................................................. 61
11 Records ........................................................................................................................... 62
12 Revision/History............................................................................................................. 63

1 Supplier Quality Assurance Manual (SQAM)
1.1 Distribution
Suppliers of Mercedes-Benz U.S. International, Inc. (MBUSI)
Supplier Communication Guide (SCG) Collaboration Teamplace
Daimler Covisint Portal
1.2 Purpose
The purpose of this Supplier Quality Manual (SQAM) is to outline the minimum quality
requirements for the Suppliers of Mercedes-Benz U.S. International, Inc. (MBUSI) in
accordance with ISO/TS 16949. According to ISO/TS 16949, the supplier must carry
out a Production Part Approval (PPA) process for series production. Unless otherwise
specified in the following, the requirements made on this process are oriented towards
the relevant current issue of VDA Volume 2. These requirements are designed to assure
that all products (systems, modules, components, raw materials, etc.) supplied to MBUSI
meet all known drawings, standards, specifications and agreements. Meeting these
minimum requirements helps to assure customer satisfaction. This manual, however, is
not intended to change specific requirements and remedies, if set forth in the body of the
supply agreement or MBUSI Master Terms Direct Purchasing or MBST-13 and/or any
appendix other than this manual, which specific requirements and remedies in case of
inconsistencies shall prevail.
1.3 Scope
This manual applies to all Suppliers of MBUSI that supply product for production use.
The manual defines minimum requirements that the Supplier shall meet. It is designed to
be flexible for individual Supplier’s systems; however, there are specific procedures and
forms outlined in the manual which shall be followed by the Supplier. It is the
responsibility of the Supplier to understand and utilize this manual. In addition to the
scope specified in VDA Volume 2, the PPA process must also be carried out for software
and standard parts unless agreed otherwise. Any questions concerning the content of
this document should be directed to the MBUSI Procurement and Supplier Quality (PSQ)
Engineer.

1.4 Definitions/Acronyms
AIAG Automotive Industry Action Group. A Trade association consisting of U.S.

Automobile Manufacturers and Supplier’s established to foster improved
productivity in the customer-supplier relationship. AIAG distributes manuals
and documents.
APQP Advanced Product Quality Planning
AWE Abweicherlaubnis – Deviation Permission
AZF Factor calculated from the number and severity of CPA issues
BAG Sampling Coordination Meeting or “BemusterungsAbstimmungsGespraech”
BPF Sampling Planning Form or BemusterungsPlanungsFormular
“_” Release Blank Release, Production release level of a drawing
CAR Corrective Action Request
CMM Coordinate Measurement Machine
CPA Final Vehicle Audit used to gauge overall vehicle quality and customer
satisfaction
CpK Process Capability Index
<DS> Identification and documentation of “safety-relevance”
<DZ> Identification and documentation of certification relevance including
emission relevance
DAG Daimler Incorporated (Aktiengesellschaft)
DBL Supply Specification (Daimler-Benz Liefervorschrift)
DCI Design Change Information sheet used by MBUSI ECC section of Production
Control Department to gather supplier timing
DIN German Industrial Standard (Deutsche Industrienorm)
DMT Defective Material Tag
ECC Engineering Change Coordination or Control
E-Level Method to track all changes related to a part and its corresponding
production processes before PPAP
EPA U.S. Environmental Protection Agency
Error Proofing Mechanical devices/controls that will not allow defective product to proceed
to the next step in a manufacturing process
ET Engineering Trial, the 1st trial in the pre-launch build process
VE-DOK Vehicle documentation system that maintains a record of as-built data for
each vehicle
FMEA Failure Mode and Effects Analysis (System, Design, or Process)
FMVSS Federal Motor Vehicle Safety Standards

GR&R Gage Repeatability and Reproducibility study as defined in the AIAG

Measurement Systems Analysis Manual (MSA)
IMDS International Material Data System
I-Lot Trial for Initial Release
ISO9000 International Standards Organization quality system
ISO 14001 International Standards Organization environmental management system
KEM Design change notification (Konstruktionseinsatzmeldung)
KQC Key Quality Characteristic
Logistics MBUSI Logistics Department
MBN Mercedes-Benz Standard (Mercedes-Benz Normen)
MBUSI Mercedes-Benz United States International, Incorporated
MRD Material Requirement Date
MQE/MQI Modular Quality Engineer
MSA Measurement Systems Analysis, also referred to as GR&R
Gage Repeatability and Reproducibility Study
NEDS Noise, Emissions, Durability, and Safety
Null Series Trial Builds Conducted to Evaluate Design
PAF Numbering system for KEM’s
PC MBUSI Production Control Department
PDR Part Deviation Request
PE MBUSI Production Engineering Department
P-Lot Trial for Prototype release
PM Preventative Maintenance
PPA Production Process and Product Approval (VDA)
VDA equivalent to PPAP
PPAP Production Part Approval Process (AIAG)
PPAR Production Process and Product Approval Provisional Part Approval Report
VDA equivalent to ISIR (complete PPAP documentation)
PPM Parts per Million Reject Rate
PQE/RQI Part Quality Engineer
PSQ Procurement and Supplier Quality
P-Release Pre-Release or Prototype release of a drawing
Product For the purposes of this manual, used as a generic definition for any
commodity, raw material, part, assembly, module, etc. supplied to MBUSI
from any outside party
PSW Part Submission Warrant

PT1, 2, 3, etc. The production trials in the pre-launch build process

Q-H:ELP Quality CHallenges: REcognition, SoLution and Prevention
Q Level Method to track all changes related to a part and its corresponding
production processes
QS9000 AIAG Quality System 9000 - Modeled after ISO 9000 with additional
sections specific to Automotive Manufacturers requirements
RAN Release Authorization Number
SCG MBUSI Supplier Communication Guide
SES Supplier Evaluation System
Shall / Should In this manual “shall” refers to activities that the Supplier must perform.
“Should” refers to activities that are recommended or the Supplier may be
asked to perform
SIS Supplier Inspection Standard
SPC Statistical Process Control
SPRP Supplier Parts Readiness Program (DAG Central document, VDA based)
SQAM MBUSI Supplier Quality Assurance Manual
SQE/LQI Supplier Quality Engineer
SQO/KTB Supplier Quality Operations
SQMS Supplier Quality Management System
TRL Technical Revision of Supplier
TS16949 Quality Management System that encompasses QS9000, ISO 9000, and
VDA
VDA 6 Verband der Automobilindustrie, quality management system based on
DIN EN ISO 9001 and DIN EN ISO 9004
VDA-RGA Maturity Level Assurance
W-Release Preliminary design release between “_” and P-Release
YAP Numbering system for KEM’s
ZGS Drawing Geometry Status (Zeichnunggeometriestand)

1.5 Responsibility
1.5.1 Roles of Supplier Quality in Q3.0

1.5.2 Tasks/Responsibilities
The following table shows the detailed responsibilities of the Modular Quality Engineer
(MQE/MQI), Supplier Quality Engineer (SQE/LQI), and Reclamation/Part Quality
Engineer (PQE/RQI):
Leading Quality Area
# Tasks/Responsibilities MQE SQE PQE/
/MQI /LQI RQI
1 Input for Specification Book - (KLH) part related V M M
2 Input for Process Specification Book (PLH) V M M
3 Source Evaluation at HUB region K V
4 Alignment of sourcing matrix for directed parts (N-tier) V M M
5 Offer presentation participate V M
6 ABC Part Classification V M
7 ABC verification K V
8 Q-planning V M
9 Follow up with action items from audits K V
10 Process-FMEA Review K V
11 Maturity Validation Management (VDA-RGA) and Maturity Validation at supplier site K V
12 Process Audit Part 1 VDA 6.3 K V
15 Support PT (production trial) First Line of contact at Mercedes production plant K V M
16 Maturity Validation Part ( Up to QG D: Target date for drawing release) V M
17 Check of Supplier Gauges and Fixture Concepts K V
18 PPAP Alignment meeting (BAG) + planning M V
19 PPAP part, PPAP process, Series Process ( sample report) K V
20 Support B-phase for new projects, series, facelift/ First contact for plant V M
21 Boundary Sample Agreement V M
22 Complaint management to secondary interference (no concept errors) M V
23 Complaint management 3rd level support V M
24 Interface in the case of concept errors V M M
25 Internal Shopfloor reporting M V
26 Q-H:ELP Process K V M
27 Requalification supplier production process V
28 TRL audits at the supplier V
29 PF Team V M M
30 Quality maturity meeting, phase dependent V M
K Coordination
V Responsibility
M Collaboration

1.6 Supplier General Matrix
MBUSI, DAG
Minimum Requirements for Tier One Suppliers Reference / Standard
(Lead Role in Bold Type)
Understand MBUSI expectations for all functions SQAM, Supplier PSQ, PC, Logistics,
and processes Communication Guide Finance
Have training program for all new associates, TS 16949 PSQ
temporary support and personnel changes
Have an updated organizational chart / Always have a current copy PSQ PC, Logistics,
responsibility matrix for plant and project at MBUSI Finance
personnel
Give MBUSI advance notice of union contract 6 months prior to PC, Logistics, Purchasing
expiration – Including tier 2 & 3 suppliers expiration, inform MBUSI
Have all norms, specifications and documents Shall be current and PSQ, SQE, PC, Logistics
related to the production products and maintain an checked yearly as part of
archive of these the document control
system
Have a TS 16949 certified Quality Management TS 16949 and ISO 14001 PSQ
System and an ISO 14001 certified Environmental certified
Management System
Check annually whether the deliveries meet ISO/TS 16949 PSQ

Daimler’s testing specifications (including material,
reliability, legal specifications and the control
plan). These documents shall be made available to
Daimler or MBUSI on request.
Have a continuous improvement program which Per industry accepted PSQ

includes quality, cost, production, and delivery for methods addressing entire
both value and non-value added processes business value chain
Track PPM for internal and external non- Monthly response required PSQ
conforming material , and respond to MBUSI if target set by MBUSI and
targets that are not met Supplier is not met.
Maintain all equipment and tools through a TS 16949 PSQ, Finance, SP

preventative maintenance system
Maintain samples and/or standards for inspection Per Quality requirements PSQ
of product, including painted and molded in color as established by SQE/LQI
components.

MBUSI, DAG
Minimum Requirements for Tier One Suppliers Reference / Standard
(Lead Role in Bold Type)
Maintain a system for lot traceability and control TS 16949, SQAM PSQ
for all product produced
Maintain a contract with an MBUSI approved on- Keep current PSQ

site sorting company. This company will perform - Daily
rework and sorting at the MBUSI plant on an as - 365 days/year
needed basis as determined by the SQE/LQI
Pay for line shutdown if clearly due to Supplier’s Standard rates as PSQ PC, Logistics
process or product. determined by MBUSI
Purchasing

2 Quality Activities Prior to Part and Process Approval (PPA)

Production and supply capabilities shall be guaranteed for the entire product cycle. To fulfill
this requirement, Supplier Part & Readiness Program (SPRP), according to the VDA standard
or the Advanced Product Quality Planning (APQP), according to the AIAG standard shall be
implemented for all new products, model year changes and changes to current product. The
Supplier shall align the required system within the Supplier Quality group.
2.1 Sampling Planning

The supplier is obliged to notify the SQE/LQI of any new parts and any modifications to a
part and/or a process or his purchased parts and their suppliers. In advance of the PPA
procedure, a sampling plan is conducted by the SQE/LQI, who defines the deadlines for
the supplier to submit its PPA report (depending on project deadlines, service scheduling
or demand at After Sales) as well as the submission level and specific documents
required for the sampling scope.
The sampling plan can be done as part of a “Sampling Coordination Meeting” or

“BemusterungsAbstimmungsGespraech”, (BAG) together with the suppliers and the
specialist departments carrying out the inspections and shall be held after the parts are
“W” or “_” Released.
The goal of the BAG meeting is to match the SQE/LQI’s expectations and the supplier’s
sampling plan in regards to the content and quality of the PPA report including any
attachments and sample requirements. The outcome of the BAG meeting shall be
documented in writing using SQMS Attachment #39 (“Sampling Planning Form” or
“Bemusterungsplanungsformular”, BPF), or in an appropriate software solution and
attached to the PPAR document via SQMS.
2.2 Supplier Organization

As early as possible in the program the Supplier shall define the individuals responsible
for carrying out the SPRP/APQP. Personnel performing those functions shall have
sufficient, well-defined responsibility, authority, and organizational freedom to identify
and evaluate quality problems. In addition, these individuals shall initiate, recommend,
and/or provide solutions.
Prior to the Engineering Trial (ET) build the Supplier shall have an emergency Quality
Support Contact for support of each shift of the MBUSI manufacturing facility. The
contact shall be responsible for initiating containment and problem solving activities.
This contact information shall be provided to the Supplier Quality group, along with
immediate updates to any changes. The supplier shall submit the information using the
Supplier Contacts and Quality Assurance Representative form (SQMS Attachment#38-A).

2.3 Program Management

It is the responsibility of the Supplier to manage its systems and suppliers to meet
MBUSI's requirements. The supplier shall notify MBUSI at the earliest possible time of
those items which affect critical timing paths (Tier 2 supplied parts) or have unusual
requirements (i.e., long lead-times for raw materials, tooling, equipment, gauges or test
completion). This notification is necessary to assure that appropriate steps are taken to
prevent delays in vehicle launch or design change implementation.
Supplier Part History Reports and Gantt Charts shall be provided as required by SQE/LQI
and PC Department. These plans shall consider all fixtures, dies equipment, gauges,
testing, PPAP requirements and program reviews for the product. The Supplier shall
require the same level of documentation from its Tier 2 suppliers to meet
quality/delivery targets. Selected Tier 3 suppliers will also be required to provide this
documentation, based on Supplier Quality requirements.
2.4 VDA-RGA Program

The target of VDA-RGA (Maturity Level Assurance) is prevention of risks in supplier
management by employing cross-functional cooperation through the integration of the
external supplier.
Depending on the ABC part-classification, supplier-self assessment or round table

meetings are possible at MBUSI/Daimler or at the supplier location. One VDA-RGA
evaluation will be held for each quality gate. Supplier and customer can highlight issues.
The regular reporting of the cross functional cooperation assures, that project
management and departments are informed quickly.
2.5 Supplier Audits
2.5.1 VDA 6.3 Process Audits

VDA 6.3 process audit is an evaluation of the suppliers planning, development, and
realization processes for all product-related activities.
The VDA 6.3 process audits focuses on seven major areas:
• Product Planning
• Product Realization
• Process Planning
• Process Realization
• Sub-supplier Activities
• Final Product and Process
• Customer Satisfaction

For new product launches or new suppliers, an initial Potential Analysis (PA) should take
place at the supplier between “P” and “_” release of the product. The initial PA will cover
all sections of VDA 6.3. Periodic follow-up audits will take place (usually every 3-4
months) until the product is ready for final PPA approval. The evaluation for Section 6:
Product and Process will take place as part of the PPA of the product.
The Supplier Quality will notify the supplier if an audit is required and will coordinate all
pre-audit requirements at that time. Additional audit reviews may be required for
existing production suppliers based on their supplier classification (A, B, C ranking). The
audits should take place on an annual or semiannual basis.
2.5.2 TRL Audit

The TRL audit (Technical Revision of Supplier) is used for short notice audits of suppliers
for reasons such as a sudden run of bad parts, degrading Quality scores, or significant
quality concerns where a VDA 6.3 audit might not be the most useful tool.
The TRL focuses on the following points:

• Subcontractor management (Supplier Tier N management)
• Incoming goods and stock (receiving)
• Manufacturing process
• Takt time / Material flow
• Product audits / Process audits / System audits conducted by the supplier
• Annual requalification requirements
• Collection of all variations and deviations found during the audit
2.5.3 PFA Audit

The PFA Process Assessment is an additional process audit tool which can be used when
a complete VDA6.3 Process Audit is not necessary.
Below are a few situational examples of when a PFA Process Assessment can be used:
• An established supplier, must implement process corrective actions (a quality
spill)
• An established supplier, must move or replace minor production equipment /
tooling
• An established supplier, has the need to change existing process(es)
• An established supplier, adds additional production line(s)
• An established supplier, adds additional product(s) to existing production line(s)
An established supplier is a known supplier to MBUSI/Daimler and the SQE/LQI has

conducted multiple VDA6.3 Process Audits at the supplier and should be very familiar
with the supplier’s processes and their quality performance history.

2.6 Key Quality Characteristics

During the product design stage, as part of the SPRP/APQP process, the supplier shall
begin the identification of Key Quality Characteristics (KQC’s). KQC’s are those
dimensions, features, and requirements that shall be closely controlled or confirmed in
the manufacturing process to assure customer satisfaction, engineering specification
conformance, regulatory compliance, vehicle safety, and/or manufacturability by MBUSI.
KQC’s are further defined as follows:
• Safety/Regulatory Characteristics are critical product specifications that can

affect compliance with government regulations or safe function of the vehicle. As
commodity experts the Supplier shall inform the SQE/LQI of any regulatory
requirements pertaining to their product. These requirements are documented
on the Supplier Inspection Standard, Process Control Plan. Suppliers with
regulatory product (i.e., FMVSS, EPA) are required to maintain applicable data for
this product. For parts with safety-relevant (DS) / certification-relevant (DZ)
features, corresponding identification of the documents created during the
sampling procedure (i.e. sampling plan) must be given.
In deviation from VDA Volume 2, the following requirements apply to the DS/DZ
characteristics specified in the specification documents (e.g. drawings, CAD data
records):
– Short-term process capability Cmk ≥ 2.00
– Long-term process capability Cpk ≥ 1.67
• Product Characteristics are features on the drawing or specification that are

significant for customer satisfaction, reliability, fit, form, or function (i.e., color,
diameter, surface).
• Process Characteristics are those Supplier process parameters for which

variation shall be controlled and monitored on an ongoing basis to assure
conformance to specifications and customer satisfaction (i.e., feed rate,
temperature, pressure).
All KQC’s shall be controlled/confirmed by one of the following methods: mistake

proofing of design; mistake proofing of process with sensors/fixturing; automated 100%
inspection; proven process capability through Statistical Process Control; or in a method
agreed upon by the Supplier and the SQE/LQI. Suppliers may be requested to submit
KQC data to MBUSI on a regular basis.
All Safety and Product Characteristic KQC’s shall be documented on the Supplier
Inspection Standard, SQMS Attachment # 38-D. All KQC’s shall also be identified on the
Process Control Plan. <DS> and <DZ> call out on the DAG drawing or Master Data Sheet
in CATIA shall be documented on the Process Control Plan.
2.7 Inspection Gauge Requirements

The Supplier is responsible to manufacture inspection gauges for all products as needed
unless otherwise agreed upon by the SQE/LQI. The inspection gauges will be used to
monitor the dimensional and functional quality of the product being produced. The
inspection gauge shall also assist the supplier in the checking the KQC’s. The SQE/LQI
and the Supplier shall agree upon the type and number of inspection gauges necessary.
All inspection gauges shall be constructed to the requirements of the MBUSI Gauge
Standard. All inspection gauge designs for final shipped product shall be submitted to
and approved by the SQE/LQI prior to manufacture. Some possible types of inspection
gauges are CMM holding fixtures attribute gauges, form gauges, templates, and SPC
gauges capable of line speed. The characteristics to be monitored on the inspection
gauge and their nominal dimensions and applicable tolerances will be listed on the
Supplier Inspection Standard.
If datum and locators are not noted on the drawings, an agreement on datum and
locators shall be reached and documented on the Functional Gauge Plan and Approval
Request (FGAR). Whenever possible, the datum and locators and locators should be
representative of the vehicle application of the product. Tolerances should also be
clarified at this time.
The supplier shall seek approval for gauge design by submitting the FGAR, SQMS
Attachment # 38-E, along with any additional documentation requested by the SQE/LQI.
Gauge Approval is a requirement for PPA. After receiving approval, the supplier shall
proceed with the gauge build process. Prior to using the gauge for series production the
supplier shall perform Measurement Systems Analysis (MSA) and submit the results of
the MSA along with the completed FGAR to the SQE/LQI.
2.8 Testing Requirements and Responsibility

The Supplier and MBUSI/Daimler shall define the testing requirements and specifications
required to validate the product, both as a stand-alone component and as a component
of the vehicle system. The Daimler development engineer will have the lead in defining
the testing requirements.
The required testing and estimated timing for both component level and in-vehicle testing
should be documented on the suppliers testing plan or the Testing Requirements
Worksheet, SQMS Attachment #38-F. This activity is not intended to supersede any
contractual obligations of the Supplier, or Supply Agreement, or any regulatory
requirement, such as, Federal Motor Vehicle Safety Standards.
Design Validation testing shall be completed prior to PPA process.

Changes to part or process may require a re-testing of all or part of validation testing. It
is the supplier's responsibility to discuss testing requirements with Daimler development
and SQE/LQI for product changes after initial part approval. SQE/LQI reserves the right
to add additional testing requirements based on past problem history, unique
environmental requirements, etc.
2.9 Pre-Launch Control Plan and Launch Containment Plans

The Supplier shall prepare a Pre-Launch Control Plan for all products supplied for pre-
launch trial builds and the production ramp-up phase. This document shall be prepared in
accordance with VDA Volume 2. The Pre-Launch Control Plan shall be submitted to and
approved by the responsible SQE/LQI prior to the supplier commencing the Null Series,
PT1, PT2 and Series Production parts manufacture.
The Pre-Launch Control Plan has two purposes:

1) To outline the process controls for all features this shall be controlled during early
builds when supplied product is not from the final production process or the final
production location
2) To detail the extraordinary process controls and product checks that will occur during
the launch containment phase for the build of the first x# vehicles (number to be aligned
with SQE/LQI.
2.9.1 Plan Requirements

1. Identification of the person responsible for the containment process
2. Pre-Launch control plan details should consist of additional controls, inspection

audits, and testing to identify any non-conformances during the production process.
Depending on the production process and set-up, machinery, fixture, tooling, operator,
material/components, preventative maintenance and climate, additional controls for the
pre-launch control plan should include the following:
• Increased frequency/sample size of receiving process and/or shipping
inspections
• Mandated sub-supplier containment and or sub-supplier support/audits
• Addition of inspection/control items
• Increased verification of label accuracy
• Enhancement of process controls such as error proofing
• Error proofing validation through introduction of known quality sample parts
(Good & Bad Masters)
• Increased involvement and visibility of top management
3. Identification of the measurement equipment and data collection devices to be used

where applicable
4. A reaction plan for any non-conformances that are discovered

2.9.2 Pre-Launch Control Plan

Document the Pre-Launch Control Plan, including functional testing and error proofing,
using the Control Plan format referenced in the AIAG Advanced Product Quality Planning
and Control Plan Reference Manual. The development and documentation of the Pre-
Launch Control Plan are expected to occur during the Advanced Product Quality'
Planning process. The Pre-Launch Control Plan is not a substitute for the Production
Control Plan but is over and above the Production Control Plan and is used to validate it.
2.9.3 The Launch Containment Process

The Launch Containment Process should be used for all pre-production requirements
(e.g., Null Series, PT trials and selected running changes that require PPAP) and for the
production ship quantity or duration specified by the SQE/LQI or until the Production
Control Plan is validated, whichever occurs later. The specified quantity or the specified
duration is intended to reflect the MBUSI plan to full production rate.
To indicate compliance with the Launch Containment Process, all RAN numbered tags
shall be signed by a designated senior management representative at the supplier,
typically the highest level manager at the production facility.
2.10 Process Flow Chart, Control Plans and FMEA

The Supplier shall submit a Process Flowchart, Process Failure Mode and Effects Analysis
(PFEMA) and Control Plan to the responsible SQE/LQI at the dates listed on the
SPRP/APQP Status Report, or other mutually agreed upon dates. These documents shall
be prepared in accordance with the AIAG Failure Mode and Effect Analysis and the
Advanced Product Quality Planning and Control Plan (APQP) reference manual. These
documents shall depict the manufacturing process and inspection points from beginning
to end (incoming material through final shipping) and include all KQC’s (i.e. <DS>, <DZ>).
MBUSI requires the supplier to annually re-validate the aspects of the product that affect
safety and durability. These requirements shall be listed on the last page of the Control
Plan.
The control plan is the main document that defines the manufacturing process. The
Supplier may not change any element of the approved manufacturing process, control
plan or rework processes without receiving prior approval from the responsible SQE/LQI.
The instructions for requesting a change to these documents and processes are outlined
below in the PPAP Requirements and Approval section of this manual.
2.11 Supplier Inspection Standards

Supplier Inspection Standard (SIS) shall be submitted by the supplier for every shipping
unit or part family. The Supplier Inspection Standard, SQMS Attachment #38-D, is a
controlled document and shall match the current released engineering level of the
suppliers shipping unit.

The SIS has multiple purposes:

• The first purpose is to document Safety and Product KQC’s (features which
should be checked on the functional inspection gage associated with the part).
• The second purpose of the Supplier Inspection Standard (SIS) is to define actual
tolerances from the general tolerance publication that may be applied to certain
features of the product.
• Thirdly, the SIS is used to document any other important product quality
characteristics as agreed between the Supplier and the SQE/LQI. These may
include characteristics, such as, appearance criteria, gap information, color
requirements, surface finish, and general dimensional and position requirements.
• Finally, the SIS is used to document the data that shall be collected and reported
to the MBUSI Supplier Quality for each engineering and production trial, from Null
Series to PT3.
The SIS shall be submitted to and approved by the SQE/LQI in the timeframe listed in
the SPRP/APQP, or other mutually agreed upon date. This form is to be updated with
each change revision.
2.12 Part E-Level and Q-Level History Tracking

For each part, the supplier shall establish a Part E-Level and/or Q-Level History Report,
SQMS Attachment #38-G. The Part E-Level and Q-Level History Report list the change
status of the production process by means of the E-Level or Q-Level.
The E-Level and Q-Level of a product describes the exact drawing and geometry level
(e.g., KEM) and, in addition, all manufacturing engineering conditions and/or process
modifications not associated with an engineering change, such as: changes to raw
material sources, manufacturing locations, PPAP sample iterations, tracking of additional
tooling capacity being brought into production, etc.
E-Level, also known as development level is used to identify parts prior to PPA approval
(i.e. Null Series parts). Q-Level is used to identify the quality level of production parts
during the PPAP approval.
Changes to part geometry or design will be tracked on the ZGS level. The parts
submitted for initial PPAP approval shall be marked as Q1. Each time a PPAP is
submitted for a product the Q-Level will increase.

2.13 Supplier Portal Applications

Suppliers Supplier shall request access to the following applications via the Daimler
supplier portal:
• Supplier Quality Management System (SQMS) – an IT system that supports

the sampling, complaint, series test report and requalification process for
purchased parts.
• start Supplier Communication (SC) - with start represents the date

communication between Daimler AG and external or internal suppliers supported
by electronic systems.
• MBUSI Supplier Communication Guide – a web-based communication by

MBUSI departments to suppliers (i.e. SQAM). This is accessible via the
Collaboration Teamplace (CTR) in the DAIMLER supplier portal.
Supplier is responsible for registering for user access to the Daimler supplier portal:
https://daimler.portal.covisint.com/web/portal/home

3 Production Process and Product Approval (PPA)

As per VDA Volume 2 Chapter 4.1, the PPA procedure should "provide evidence before the
production startup that the requirements agreed in the drawings and specifications are
fulfilled. The completed PPA proves that customer demands, specifications and other
requirements (e.g. laws, standards, etc.) have been correctly understood and implemented.
Consequently, the PPA procedure is the final verification of the product, production and
transport planning process, and - in the event of a positive result - will result in release for
series production. The procedure describes the boundary conditions that permit customers
and suppliers to configure the PPA in a practical manner."
In addition to the scope specified in VDA Volume 2, the PPA process must also be carried
out for software and standard parts unless agreed otherwise.
If delivery conditions are described by several item numbers, the corresponding processes
and generated/amended product features of the delivery condition must be presented in the
submission of samples in addition to the component features.
MBUSI can request a PPA report for the components in a delivery scope with Daimler item
numbers.
3.1 Series Production Approvals of Other Daimler Plants

If the supplier has already received series production approval from a Daimler location, a
copy of the PPA submission and samples is to be submitted to the new Daimler location
in order to receive plant approval. Supplier needs to coordinate this activity with the
SQE/LQI.
3.2 Execution of the PPA Process

If a PPA process trigger caused by the supplier arises, the supplier shall provide
notification of this trigger at least six months prior to planned implementation. In
justified, exceptional cases, deviating regulations may be agreed with SQE/LQI/LQI for
series production approval. Relocation is not permitted in the start-up phase. Notification
of relocation must be issued six months in advance and requires approval from Daimler.
MBUSI specifies a sampling date to the supplier. Even without a separate purchase order,
the supplier shall deliver sample parts by the above mentioned date, unless MBUSI
expressly dispenses with delivery.
Prior to the PPA process, the documents specific to the sampling scope and the number
of samples required are specified in sampling planning, the submission stage. In addition
to the technical sample (Q status), a variant sample (A status) must be provided for parts
distinguished by supplementary code 2 (color, language, etc.).

In the case of tools for parts where the surface structure is integrated in a separate
production step, the PPA process is carried out on the basis of “other samples” with a
development status within the meaning of Chapter 4.5.2 of VDA Volume 2. Approval for
integrating the surface structure is issued by the department responsible for series
production approval.
In the event of deviations, the supplier must obtain advance written approval (deviation
permit) from the responsible Daimler development department and submit it for
sampling. The corrected status must be presented within the scope of subsequent
sampling prior to the expiry of the deviation permit.
The relevant product and process characteristics for which capability studies are to be
carried out are to be coordinated with SQE/LQI. Until the process capability parameters
have been verified, the characteristics are checked 100% by the supplier.
3.3 Identification/Labeling
3.3.1 Identification of Parts

For parts which sampling has not yet been performed, they must be identified with their
development status according to the part life record. In consultation with SQE/LQI, these
parts must be presented as “other samples” and serve the exclusive purpose of design
stage validation. Series approval is not granted for “other samples”.
Unless otherwise agreed, a red sticker (Ø approx. 20 mm) specifying Exx (whereby xx is
the sequential index) must be used.
Separate labeling of sample parts and parts for production tests can be demanded by the
respective Daimler location.
For passenger cars, starting with the initial sampling of samples for the PPA, these must
be identified with a white sticker specifying the quality status in accordance with the
quality part life record (Qxx) and stating the color status in accordance with the color
part life record (Fxx) for parts with supplementary code 2 until the completion of the final
Daimler production test/try out.
Coordination with the client Daimler plant is required for body shell parts. In justified
exceptional cases, deviating regulations may additionally be agreed with the client
SQE/LQI for series production approval.
3.3.2 Shipping Label

All MBUSI production part suppliers shall have a process in place at their production
facility and any other location in which parts are shipped to ensure that the shipping
labels on the product container complies with MBUSI “Parts Identification Label –
Barcode Standards”. This system should include at a minimum one-verification loop
before the final product is shipped to MBUSI or any MBUSI part
consolidation/sequencing center.
MBUSI reserves the right to make the ZGS/Q/E level labeling mandatory in certain cases
(i.e. Production Trials).
3.3.3 Part Specific Labels and/or Bar Codes

Any product that requires a part specific label or bar code shall meet the label
requirements defined on the production part print or part data. The Development
Engineer, MBUSI Production Control and/or SQE/LQI may provide additional
requirements.
3.3.4 IMDS Requirements

The IMDS (International Material Data System) is the automobile industry’s material data
system. IMDS data is strictly needed as a certification document about compliance to
legal substance bans. IMDS number is needed for purchased parts during the
submission of sampling.
The plant code for Plant 1380/ Mercedes-Benz Tuscaloosa is ID 8302.
For more information: https://www.mdsystem.com/imdsnt/startpage/index.jsp
3.3.5 FDOK Requirements

Any product that has FDOK requirements shall meet the requirements as defined on the
part print or in the part data.
3.4 Trigger for the PPA Process

The following Matrix shall be used in order to trigger a PPA submission:
Execution of Information to Information to

Trigger
PPA Purchasing Logistics
New Parts X
Product modifications X
Product relocation X X X
Production process modification X
Long-term production stoppage, > 12 months X
Use of new, modified or replacement tools (not X X X

applicable to metal removing tools)
Change in 2nd tier suppliers (Daimler 2nd Tier). In X X X
the case of parts with special characteristics (DS,
DZ), the above obligation exists up to the supplier
responsible for the characteristics
Modifications in the supplier’s purchased parts X
Subsequent sampling X
Requalification X
3.5 PPA Documentation Submission Requirements

PPAP requirements will vary depending on product, product change complexity and/or
supplier performance. Unless otherwise agreed between the department responsible for
series production approval and the supplier, documents and sample corresponding to
submittal level 2 will be made available. Specifics of timing, quantity of sample parts and
submission level should be defined during the BAG.
Submission Level Diagram:
Submission Level
No. Trigger
1 2 3
1 PPA report cover sheet

2 Test results (e.g., dimension, function, material (strength, physical
properties), haptics, acoustics, odors, appearance, surface,
reliability, process capability, weight, transport means, EMC/ESD
test)
3 Samples (number per nest: only 2 parts in case of color sampling) 5 5 5
4 Documents (e.g., customer drawing, CAD data, specifications,

approved design modifications)
5 Supplier design and development approvals if responsible for
development
6 System FMEA Product E
7 System FMEA Process E
8 Process Flow Chart (Production and Inspection Steps)

9 Production Control Plan (control plan) E E
10 Inspection and equipment list (product-specific)

11 Inspection and equipment capability study, as appropriate (result)
12 Confirmation of compliance to legal requirements, if agreed with
Daimler (e.g. environmental, safety, recycling)
13 Material date sheet via IMDS (ID No. must be entered on the PPA
report cover sheet)
14 Software test report (Annex 4)
15 List of materials, with drawing if requested by Daimler (Annex 5)
16 List of work and test instructions with approval status
17 Tools list (with unit numbers/number of nests and statement on tool
quality)
18 Evidence that series production cycle time has been achieved

Submission Level
Trigger
No.
19 Overview of suppliers purchased and in-house parts and process

approval status
20 Written confirmation that criteria are met in accordance with series
production maturity, part and process assessment matrix
21 Quality/color part life record (Annex 1)
22 Sample card (Annex 5, only at the request of the relevant Daimler
plant)
23 Paint system approval by Daimler according to DBL 7384
E Requirement for the relevant submission level, for perusal only,
documents remain with the supplier
3.6 Sample Parts

The supplier shall provide 5 sample parts for PPA approval, unless otherwise specified in
BAG. For new products and model year changes the parts shall come from the same
manufacturing lot as the parts for PV testing and/or shipments for the PT1 build.
For coated parts where a dimensional check of the uncoated part was agreed with the
SQE/LQI, the supplier should submit 3 uncoated parts. For castings, forged or molded
parts, the supplier should provide sectioned pieces in order to demonstrate compliance
with the specified wall thickness, radii, etc. The supplier shall be able to provide
additional samples with agreed upon specifications between SQE/LQI and the supplier
for special purposes (i.e. painted parts). At MBUSI’s request the supplier shall also be
able to supply component part samples previously approved and supplied to the trial
builds.
For sheet metal stamping dies, if the die steel is not coated at the time of the initial
“PPAP” or “Run-at-Rate (VDA Section 6)” review, it shall be noted, and the area affected
on the parts shall be reviewed and approved. If the parts are not acceptable for series
production, the parts cannot be Green.
As described in section 2.12 of this manual, the Sample Parts for the initial PPAP shall
have a Q-Level. Each PPAP Part shall be visibly marked with the Q-Level by putting a
sticker considering the following requirements:
• The diameter of the sticker shall not exceed 20 mm
• The location of the sticker with the Q-Level shall be easily found on the part
• The Q- Level shall be easily readable (recommendation: shape=round; sticker
color=white; font=black).

As previously stated, for current products the Supplier and the SQE/LQI will determine
the PPAP documentation and sample requirements during the BAG meeting for each
specific change.
3.7 PPAP Sample Part Submission Procedure

Shipment of sample parts shall be made separate from production shipments. Sample
parts shall be shipped in separate containers and addressed to:
Daimler AG
Werk Sindelfingen
Abladestelle 564 GPEC
D-71059 Sindelfingen
Germany
After initial approval of a part, subsequent PPA samplers can be requested by SQE/LQI
upon request. In addition, the container and the initial samples themselves shall be
identified with a tag. This tag shall be affixed in a manner appropriate for volume
shipments and shall be clearly marked “initial sample” and shall state details of the Q-
Level and the drawing geometry level (ZGS). In addition, a written record of any special
agreements (e.g., deviation approval) shall be included with the initial sample.
If required by the SQE/LQI, any models, gauges or test devices requested by MBUSI and
which the supplier has in its possession shall be delivered along with the submitted initial
samples.
According to the Mercedes-Benz Terms and Conditions, PPA sample parts including
shipping are “Plannable Start Up Costs” and are therefore NOT subject to be paid
(including Running Changes).

3.8 Approval Status

The supplier is notified of the general approval status in the form of a test report via
SQMS. For specific plants, the results of the material test may be transferred with a
separate test report. The supplier receives the IMDS data sheet evaluation via IMDS.
In case of any rejections or conditional release, the coordination of measures and the
sampling plan for follow-up sampling including resubmission/forecast date and number
of required samples is accomplished at the same time as the test report is compiled.
(Exception: Part to be discontinued soon (less than 3 months) or part is issued a part
number. In this case, the SQE/LQI is bound to monitor the situation and, where
applicable, has to introduce appropriate measures).
The rating system used for approval of the PPAP/PPA corresponds to the traffic light-
system:
“Green” - Fulfills customer expectations completely
- Fulfills criteria of evaluating department completely
- Meets all design and development requirements / specifications
“Yellow” - Fulfills customer expectations
- Can remain in the vehicle
- Only non-critical specifications are not fulfilled
- New submission for approval necessary
“Red” - Does not fulfill customer expectations
- Cannot remain in vehicle
- Immediate re-submission for approval necessary
“Supplier production tests/try outs” are generally carried out for new launches and
model enhancements, and the department responsible for series production approval
must be notified within good time so that participation by MBUSI is possible. Approval is
granted if full adherence to all part criteria (3.8.1) is verified and the process criteria
(3.8.2) are met.

3.9 Part Approval Matrix
Part Approval GREEN YELLOW RED
Material Production material Production material, Not production material

DBL requirements met differently processed / DBL Requirements not
DBL not complied with, met/not tested
deviation approval
Function Function fulfilled, Slight deviations from Function n.o.k. or not

complies with specification, but with proven, specification not
specification deviation approval fulfilled
Dimensions Dimensionally o.k. Dimensionally o.k. with Dimensionally n.o.k., no

No rework rework or deviation measurement report, no
approval, non-critical gauge
values n.o.k.
Workability Can be used without Can be used with Cannot be used

additional expenditure additional expenditure
of time or money of time or money
Appearance o.k., no depressions, no Just acceptable, Significant deviations,

(Surface, Structure, undulations, meets borderline, specimens non-conformities, or
Color/ Grain) design intent available cannot be assessed
Part Approval
Main Tools Production tool Production tool, Fulfills Experimental tool

(Shaping or customer requirements,
Reshaping Tool) Slight deviations from
specification, but with
deviation approval
Machines Production version at Of same design as that Not similar to production
Plant Equipment the production location, to be used in version, quality issues
accepted by supplier production, or no expected
and capability quality issues expected
demonstrated in production
Sub-supplier Parts Approved Conditionally approved Rejected or no samples
provided yet

3.10 Process Approval Matrix
Process Approval GREEN YELLOW RED
Secondary Tools Production tool Production tool, fulfills Experimental tool,

(Cutting/Deburring/ customer requirements, cut by hand
etc.) Slight Deviations from
specification, but with
deviations but with
deviation approval
Logistics Chain As for production with Not as for production, Quality issues expected
relevant sequencing but no quality issues
effective dates expected in production
determined
Cycle Time Production cycle time Production cycle time Production cycle time
Volume (Run at Rate) without special can be achieved on an cannot be achieved even
measures on-going basis with with special measures
special measures
Workforce All production staff Selected production No production staff, or
trained, work/test staff trained, work/test work/test instructions
instructions available instructions available incomplete
Process Capability Agreed capability index Agreed capability Capability indices
requirements fulfilled indices not reached, not proven or established,
100% inspection no 100% inspection
introduced
Inspection and Test All present and Equipment only partly Not available or not
Equipment accepted, capability available / accepted, accepted
demonstrated substitute devices
available
Production Process for Approved Conditionally approved Rejected or not yet
Sub Supplier Parts accepted

3.11 Deviations
If the Supplier discovers any deviations with the product, production process, or has not
met the SPRP/APQP or PPA requirements prior to the PPA submission date the
SQE/LQI/Development Engineer shall be contacted immediately to determine the
appropriate countermeasure.
A deviation (i.e. PDR, AWE) is a request for a temporary deviation or waiver from a
product requirement. A deviation is defined as a known or planned departure from the
product requirements, approved process, or documentation. A waiver is an unplanned
departure from the product requirements, approved process, or documentation due to an
error or problem. A deviation is not intended to be used for early implementation of
design changes, or any failure of a supplier to plan effectively.
A “Part Deviation Request” (PDR)/ Abweicherlaubnis (AWE) should be requested from

the responsible SQE/LQI/Development Engineer as far in advance as possible of the
anticipated date of implementation. This type request shall only be made when vehicle
production will be affected (i.e., shutting the production line down). The supplier shall
provide the SQE/LQI/Development Engineer with a written explanation for the request.
This explanation shall contain the following: reason for the request, quantity affected and
the countermeasure to bring the product back to the standard and all necessary
supporting information.
Once all the required information is provided, the SQE/LQI/Development Engineer will
initiate the deviation. MBUSI evaluates the request and communicates the response to
the Supplier. The Supplier shall not deliver product to MBUSI until an approved deviation
with an MBUSI tracking number is received. When product is shipped to MBUSI under a
deviation, a copy of the PDR/AWE should be attached to each product container in a
visible location. The supplier should confirm the tagging location with the SQE/LQI or
reach an alternate agreement as to how the product shall be marked or labeled. This
identification procedure shall be used as long as the product is covered by the PDR.
If the PPA submission does not meet the requirements spelled out in this manual or from
the approved tolerances or standards for the dimensional, appearance, material, or
performance requirements, the deviations shall be noted on the PPA submission.
If the PPA samples, production process, or documentation are not acceptable for
production, the product will receive a “red” or unapproved status. The Supplier will not
be given authorization to make shipment, unless a deviation permit is submitted and
approved for the red items. If the reason for failure is supplier’s responsibility, MBUSI
reserves the right to charge back any cost impact.
If the PPA samples, production process, or documentation are accepted for production
but deviations are present, the product will receive a “yellow” or conditionally approved

status. The deviations will be listed as open issues with action items, responsible
parties, and the anticipated date of closure of each action item within the SQMS system.
If the agreed sampling per part status does not lead to success (rejection or conditional
release due to supplier’s fault), the supplier bears all additional costs incurred by Daimler
which are directly related to the sampling process it is responsible for the negative
result. This does in case of any split sampling. If a Deviation Permit exists, cost
allocation can also be waived. In case of software, also called “yellow list” agreed upon
with Development is to be handled as a deviation permit considering the cost allocation.
3.12 Changes Requiring Re-Submission of PPAP

All proposed changes to the previously approved part and manufacturing processes of
the supply chain shall be re-evaluated by the SQE/LQI to determine if the change would
invalidate the current approval status. These changes include but are not limited to items
such as: alternate processes, changes to the process control plans, inspection sample
size/frequency changes, process flow alterations, sub-supplier changes, introduction of
new acceptance standards, changes in manufacturing locations, relocation of equipment
inside a facility, and changes to sub-supplier processes. To request a change, the
Supplier shall contact the SQE/LQI and explain the details of the change. Timing and the
PPA approval requirements can then be determined.
Any change of a sub-supplier shall be pre-approved by Procurement and Supplier Quality

(PSQ). A change of sub-suppliers may void previous testing releases, thus requiring
additional vehicle validation testing by Daimler. The supplier shall gain written approval
from Daimler before relocation of any MBUSI assets. The SQE/LQI may, at their
discretion, also require re-validation of any PPAP in part or whole.
3.13 Delivery of New or Changed Production Product

The Supplier is not authorized to ship product during series production until it receives
approval from the SQE/LQI via SQMS system. It is the Supplier's responsibility to
request approval 20 business days prior to shipment, regardless if RAN's are issued.
Five days prior to the first production shipment, the Supplier shall fax completed New
Product Delivery Tags to MBUSI Logistics. This notification is required each time a new
design change level is being shipped. A copy of the New Product Delivery Tag shall be
attached to the exterior packaging of the first 5 production shipments. A copy of the
New Product Delivery Tag is in the MBUSI Supplier Communication Guide. Contact
MBUSI Logistics department for original multi-color tags.
3.14 Tier Supplier Responsibilities

The Tier I Supplier of product to MBUSI shall be fully responsible for all tier suppliers,
including those chosen by MBUSI. The Tier I supplier of product to MBUSI shall also be
responsible for verifying the quality of all pass through products (whether tier 2 supplier
is selected by Tier 1 supplier or MBUSI).
The Tier I supplier of product to MBUSI shall have a system in place that follows the
same guidelines for the development of new product and processes with their tier
suppliers as is required by MBUSI for the Tier I. This includes tier suppliers of product
from other facilities within the same company.
The Tier I supplier of product to MBUSI shall have a system in place that follows the
same guidelines for the monitoring of current production product and process with their
tier suppliers as is required by MBSUI for the Tier I. This includes tier suppliers of
product from other facilities within the same company.
The Tier 1 supplier of product to MBUSI shall be responsible for the annual requalification
of the parts.
3.15 Storage Periods

Storage periods are based on VDA Volume 1. Following the discontinuation of series
production, the PPA process documents must be archived for 15 years by the supplier
and submitted on request.
3.16 Reporting
The method and format of the sampling document transfer must be coordinated with the
relevant Daimler plant. For MBUSI, sampling document must be made available via
Supplier Quality Management System (SQMS). If submission takes place in paper form,
the supplier provides the requested number of copies of the documents.

4 Trial Series Support
4.1 Trial Product Measurement Requirements

Measurement information and functional test results are required for parts shipped for
Null Series, ET, PT1, 2 and 3 and/or any other sample parts supplied to MBUSI. This
information will allow for dimensional evaluation of the product as well as support in
problem resolution during the trials.
The guidelines for determining the scope of the data collection for the Sample Data
Sheet (SQMS Attachment # 38-K) shall be the items listed in the Supplier Inspection
Standard (SIS) and the Pre-Launch Control Plan. The following are the minimum
dimensional measurement requirements: all KQC points, attachment holes, attachment
surfaces, and/or mating area to other parts. Other dimensions should be available upon
request from the SQE/LQI, MQI, Development or Null Series Engineering. This
measurement information should be acquired by means of CMM-Measurement or other
equivalent device approved by the SQE/LQI. Go/No go evaluation information on a
checking gauge does not qualify as dimensional measurement information, unless
specifically agreed to by the SQE/LQI. The package of information submitted for the trial
builds (Null Series-PT3) should include the following: a copy of the SIS, a drawing clearly
indicating the measured points, dimensional measurement results, and all necessary
functional test results documented on the Sample Data Sheet. The Sample Data Sheet is
the official document to report all measurement data and should be used by the supplier.
Following are the minimum sample sizes for dimensional measurements per trial:
Null Series: The first 5 parts of each lot plus every 10th part after the initial five-part
measurement (i.e., part number 15, 25, 35)
ET and PT1: The first 5 parts plus every 10th part after the initial five-part measurement
(i.e., part number 15, 25, 35)
PT2: The first part plus every 10th part (i.e., part number 1, 10, 20, 30)
PT3: The first part plus every 20th part (i.e., part number 1, 20, 40, 60)
The supplier is required to perform functional checks on 100% of the trial product, unless
otherwise agreed to in writing by the SQE/LQI. The results of those checks shall be
recorded on the Sample Data Sheet. One copy of the Sample Data Sheet shall be
supplied with the product in or attached to the shipping container. One copy of the
Sample Data Sheet shall be supplied to the SQE/LQI as a paper copy or in an electronic
format. The measured parts shall be identified or labeled so they can be easily matched
to the measurement and test results in the Sample Data Sheet.

Trial product not measured per these requirements shall be checked on a go/no go
gauge. These parts shall be identified with a small green sticker on the product in an
area not visible in the vehicle (does not apply to body in white product).
4.2 Documentation to Accompany Parts

For Null Series, the supplier is expected to deliver parts to the Null Series receiving
location by the Material Required Date (MRD) communicated by MBUSI. Below is a list of
the minimum documentation required with the parts shipment:
• Supplier Contacts and Quality Assurance Representatives
• Supplier Inspection Standard (Coversheet/Worksheet)
• Part E-level and Q-Level History Report
• Sample Data Sheet (Part Marking/Traceability)
• MBUSI Open Issues Worksheet
• Reference Drawing (at the current part level)
• Sample Part Data and a roadmap for the data
The supplier shall ensure that this documentation is included with all parts shipments.
This requirement is valid for all production locations including build activities at tool
shops. This information is required throughout the Null Series for effective problem
solving and issue resolution. Failure to comply with parts shipment will require expedited
replacement of parts or shipment of documentation at the supplier's expense. Deviation
from the above requirement should be aligned and agreed with the SQE/LQI .
4.3 Supplier Maturity Vehicle

During Null Series one or more vehicles will be designated a Supplier Maturity Vehicle.
During this build critical suppliers will be invited to attend and support with the intention
of the supplier being able to see and quickly countermeasure problems. Selected
suppliers will be notified by MBUSI with the planned build schedule. Any changes to the
schedule will be communicated as soon as known. Designated suppliers are expected to
provide a list of attendees to the responsible SQE/LQI or CLT representative one month
prior to the event. Attendees shall comply with all Daimler plant and Null Series
guidelines while attending Null Series.

5 Production Launch Support
5.1 Launch Containment Plan

The supplier shall implement a launch containment plan to support new model start up
as outlined in section 2.9.
5.2 On-Site Supplier Resident Engineers/Supplier Representatives

Supplier Representatives are welcomed on-site at MBUSI during our Launch and Ramp-
up phase to assist with coordination activities of their respective supplied parts.
MBUSI will not allow the Supplier Representatives to directly rework, sort or perform any
type of repair on their supplied material or the MBUSI vehicles while on-site at MBUSI.
Supplier Representatives will need to observe all safety and mutilation guidelines while
on-site at MBUSI.
Desk space will not be provided by MBUSI for Supplier Representatives. In addition
phone service and data services are the responsibility of the individual supplier. On-site
supplier representation at MBUSI shall be pre-approved by SQE/LQI or PQE/RQI.
Supplier Representatives who do not adhere to MBUSI guidelines will be asked to leave
the facility.
5.3 Rework and Sort of Non-Conforming Product
5.3.1 Reworking of Non-Conforming Product

Under no circumstance are suppliers allowed to rework, repair or modify supplied
material on-site at MBUSI. Any activity of this nature shall be conducted off premises.
Removal of supplied material from the MBUSI premises shall be coordinated with MBUSI
Logistics and/or MBUSI PQE/SQO. All Foreign Trade Zone (FTZ) requirements shall be
adhered to when moving material into and out of the MBUSI facility.
It is the supplier’s responsibility to take all necessary steps to ensure that disruptions to
the flow of material into MBUSI are avoided with regards to rework. Suppliers will be
financially liable for any disruptions to the MBUSI operations caused by non-conforming
product.

6 Series Production Support
6.1 Containment of Non-Conforming Product

If the Supplier suspects or knows that non-conforming material has been shipped to
MBUSI, the Supplier shall inform MBUSI without delay.
6.2 Containment
MBUSI expects that all supplied material meets the agreed upon quality standards and is
free from non-conformances before being shipped to MBUSI. In the event non-
conformances are suspected in supplied material, a specific short term sort may be
required to ensure non-conforming material is contained before reaching the MBUSI
assembly lines. An on-site sort may be initiated by MBUSI Supplier Quality Operations
(SQO) or Part Quality Engineer (PQE). Only MBUSI personnel or MBUSI approved third
party sorting companies may sort material on-site at MBUSI. Sorting of suspect material
by Supplier Representatives on-site at MBUSI is not allowed.
On Vehicle Containment: Upon discovery of nonconforming parts, MBUSI reserves the

right to conduct an inspection of completed and partially completed vehicles with the
appropriate charge back of time to the supplier's account. Whenever possible, MBUSI
will contact the supplier prior to this inspection and allow the opportunity for an
approved 3rd party inspection company to support the vehicle inspection. MBUSI will
provide a vehicle listing to the inspectors and the inspectors will provide the results to
MBUSI at the end of each shift. On vehicle containment will remain in place until all
suspect vehicles are inspected.
In Route Containment: Within 2 hours of notification the supplier will contract, an

approved 3rd party inspection company to initiate containment of all parts in the MBUSI
plant and conduct the receiving inspection until a good shipment is received. The 3rd
party inspection company will report the results of the inspection to the MBUSI PQE
immediately upon establishing a clean point/RAN.
Shipping Containment: If an on-site sort is initiated, in parallel, all efforts shall be taken
to contain suspect non-conforming material prior to its arrival at MBUSI. Any necessary
steps need to be taken so that a clean point can be established from the supplier and the
on-site sort discontinued. Suppliers shall take all necessary steps to improve their
process as needed to avoid having to sort material in the first place.
In some cases, MBUSI PQE may require that an on-site sort be continued even after a
clean point is established for some time period as verification that the material is non-
conformance free. In the event that a clean point is broken, the containment will be
restarted to obtain a new clean point.

MBUSI expects that clean stock be expedited as needed at the supplier’s expense to
avoid a disruption of material flow to MBUSI operations. This should be coordinated with
MBUSI Logistics and PQE as needed.
Suppliers will be financially liable for any disruptions to the MBUSI operations caused by
non-conforming material.
6.3 Part Disposition

Non-conforming material will have a Defective Material Tag (DMT) initiated to remove the
product from inventory and charge back the material cost. Unless otherwise arranged,
material will be returned through the normal logistics system. The Supplier shall arrange
for any expedited shipments or additional delivery other than the normal logistics
system. Expedited shipments shall be made within 24 hours of notification or parts will
be returned to logistics for shipment. MBUSI reserves the right to scrap nonconforming
product if return shipping is not arranged. The Supplier is responsible for all costs
associated with shipping/scrapping nonconforming parts. These include but not limited
to material cost, overhead cost, rework cost and shipping cost.
6.4 Rework
Non-conforming product will not be reworked in the MBUSI facility. Any rework at the
Supplier's or 3rd party facility will require MBUSI approval by PDR for this out of process
condition. All costs associated with part rework will be the Supplier's responsibility.

7 Corrective Action/Q-H:ELP
7.1 Corrective Actions

All nonconforming product shipped to MBUSI requires a countermeasure to ensure no
repeat occurrences. The supplier is responsible for providing information to the
responsible SQE/LQI/PQE representative identifying the root cause and
countermeasure. Repeat occurrences due to ineffective countermeasures are not
acceptable and require a corrective action (i.e. 5-Why, 8-D, 4Q, CAR).
7.1.1 Reporting Tool

The method and format of corrective action must be coordinated with the relevant
Daimler plant (i.e. MBUSI CAR System, SQMS Complaint Management).
7.2 Q-H:ELP
Q-H:ELP stands for Quality CHallenges: REcognition, SoLution and Prevention.
7.2.1 Basic Approach

Q-H:ELP is a standard process for the Mercedes-Benz Cars (MBC) and its suppliers. It is
a useful tool for tracking and solving critical quality and logistics issues with suppliers.
Q-H:ELP does not only offer the possibility to take quick action, it also enables a
committing and effective process optimization. It ensures that all MBC plants exercise
an area wide and consistent process for quality assurance, and that the suppliers to all
production plants will be involved in the same procedure.
With this process, the detection, solution and prevention of repeated nonconformity has
become considerably optimized. In the case of serious quality issues, the problems will
be dealt with in a three-leveled model. In each level the supplier will directly be informed
and involved in the process of solving the issue.
In this way, Q-H:ELP sets committing standards in solving quality issues – standards that
are equally important to the suppliers as to MBC as a whole. Sustained positive
evaluation and negative quality performance will be taken into consideration accordingly
for new vehicle projects. Suppliers that practice the zero nonconformance strategy and
have solid quality issue solving method will not come in contact with Q-H:ELP.
Q-H:ELP follows an objective of highest priority: a cooperation of highest quality between

MBC and its’ suppliers. This is a 3-level process and works for “New Product Project”,
“Quality Series Delivery”, “Logistics Series Delivery” and “Field Quality”.
• Q-H:ELP 1
• Q-H:ELP 2
• Q-H:ELP 3

Individual criteria, depending on the issue, will be defined in every level of the process.
They have to be met in an individual timeframe to get back to the regular cooperation. If
the criteria are not fulfilled, the process leads to the next cooperation level.
Expenses related with processing the nonconformance issue are charged promptly and
will bear all expenses for necessary support activities.

8 Gauge Standard
The purpose of the Supplier Gauge Standard is to outline the minimum quality requirements
for the Suppliers of Mercedes-Benz U.S. International, Inc. (MBUSI). These requirements are
designed to assure that all products (parts, systems, modules, components, raw materials,
etc.) supplied to MBUSI meet all known drawings, standards, specifications and agreements.
Meeting these minimum requirements helps to assure customer satisfaction. This manual,
however, is not intended to change specific requirements and remedies, if set forth in the
body of the supply agreement and/or any appendix other than this manual, which specific
requirements and remedies in case of inconsistencies shall prevail.
8.1 Scope
This standard gives the supplier guidance in the requirements for design, build,
inspection and certification of all dimensional control gages built for MBUSI production
parts. This standard applies to all body-in-white, trim and chassis components. These
standards shall be adhered to for all gages, unless approved in writing by the SQE/LQI.
8.2 Responsibilities
The Design approval shall not constitute a waiver or guarantee of responsibility for any
gauge produced for MBUSI. An approved gage design does not constitute a certified or
functional gage.
It is the responsibility of the supplier to meet the requirements called out in this
standard. If there are any questions or concerns, contact the SQE/LQI. Any deviations
from this standard must be approved by the SQE/LQI in writing.
8.3 Requirements
8.3.1 Kickoff Meeting

A kick-off meeting will be held between the Supplier and the SQE/LQI to review the
suppliers’ proposed gauging concept for the production part. In this meeting the supplier
will provide a pre-launch Process Control Plan along with a process Flow Chart and a
copy of the latest released production part print or CATIA data file. This Control Plan
should include all process control points with the points where process gauging will be
used, highlighted. These points should also be highlighted on the process flow chart.
The supplier will submit a Functional Gauge and Approval Request (FGAR) and a Supplier
Part Inspection Standard (SIS) for the final shipping unit. These should be provided at
the kick off meeting. A FGAR will also be provided for the other process gauges called
out in the control plan. (A SIS is required for the shipping unit only.) If there is no datum
scheme called out on the production part print or in the CATIA data file, the supplier
should propose a datum scheme and provide that information to the SQE/LQI prior to
this meeting. If there are no significant characteristic (SC) or key quality characteristics
(KQC) points called out on the production part print, the supplier should propose an
SC/KQC plan by listing the points on the SIS form and checking the KQC box and
provide that information to the SQE/LQI prior to this meeting.
The following criteria will be used to determine if the supplier can begin the gauge design
process:
• Review of the production part print and the CATIA data file
• Review of the Process Flow Chart and pre-launch Process Control Plan
• Review the FGAR sub-processes
• Review the FGAR and SIS for the final shipping unit
• Determine if the process control system and proposed gauging will insure that
the production parts will meet the design intent and dimensional requirements
8.3.2 Design Approval

Once the gauge design is complete, the supplier shall submit a copy of the final gauge
design along with the FGAR and SIS to the SQE/LQI for approval, before the hard tooling
build can begin.
8.3.3 Final Approval

The supplier is responsible to perform the final buy-off of the gauge at the gauge
manufacturer per the gauge buy-off requirements listed in section 8.3.7. The supplier
will maintain a copy of the buy-off data at the manufacturing facility where the gauge is
being used.
8.3.4 Production Implementation

The SQE/LQI will perform final production approval of the gauge during the PPA
approval.
8.3.5 Engineering Changes and Modification to the Gauge

All engineering changes that have an effect on the gauge and all modifications to the
gauge will follow the same process and be reviewed with the SQE/LQI.
8.3.6 Build Requirements
8.3.6.1 General Requirements

The purpose of this build requirement section is to insure that there is a uniform build
standard for all MBUSI production part gauges. If the supplier has gauge build standards
that meet or exceeds these general requirements, the supplier standards can replace
sections 8.3.2 through 8.3.6.10, with written approval from the SQE/LQI.
8.3.6.2 General Design

• All gauges shall be designed in metric and built with metric components
• The gauge shall address all tolerances as shown on the production part print/or
in CATIA data file
• The fixture base will be parallel to the X, Y, or Z plane of vehicle unless otherwise
agreed by the SQE/LQI
• Design Considerations:
• Operator and maintenance personnel safety.
• Simplicity in operator part loading without restrictions or interference’s
• Free accessibility to all components for ease of maintenance and replacement.
8.3.6.3 Bases
• All gauges will have a steel or aluminum base unless otherwise agreed by the
SQE/LQI
• The base shall be sized so that all clamps and movable components do not
overhang the edges of the base when in the open position. Also, there shall be
sufficient surface provided on the base for mounting interchangeable tooling,
inspection equipment
• All gauge bases shall have jig feet in the four corners at a minimum
• All CMM alignment features shall be clearly identified on the base
• Color of base to be per Daimler specification
8.3.6.4 Body
• The gauge body shall be constructed of steel, aluminum, or composite material
upon agreement with the SQE/LQI
• All features will be NC machined to the math data
• No shims or adjustability shall be allowed in any gauge
• All units mounted to the base or body of the gauge will be doweled and labeled
8.3.6.5 Datum
• The datum, as indicated on the production part print, CATIA data file, SIS or
FGAR, will be used as locators on the gauge. Any datum that is used other than
primary, secondary, and tertiary (datum 1 – 6) shall be removable.
• All datum points shall be clearly identified on the gauge
• All 2-way and 4-way location pins shall be tapered with an angle of 5° - 10°.
Diamond shaped 2-way location pins must be keyed to prevent rotation
• All datum surfaces shall be the same size called out on the production part print,
CATIA data file, SIS, or FGAR
• All datum surfaces shall be hardened steel and inserted onto the fixture body.
8.3.6.6 Clamps
• The MBUSI SQE/LQI must approve all clamp points.
• Clamps on “A” surface of trim parts should be avoided.
• Clamps shall be mounted to the gauge base not to the body of the gauge.
• All clamps shall be 90° to the part surface.
• Corner clamps shall clamp along the bisecting line of the two corner surfaces
• All clamp contact points on datum surfaces shall be centered on the datum.
8.3.6.7 Pins
• All holes requiring pins checks (position and/or size) will be determined by
agreement between the SQE/LQI and the supplier on the FGAR.
• A hole location pin shall use the nominal hole size minus the hole size tolerance
and location tolerance to determine the gage pin diameter
• A threaded hole location pin shall use the minor diameter of thread minus the
locational tolerance for the pin size.
• All gage pins shall slip fit into standard size bushings. The bushings shall be press
fit in nominal position in the gage.
• A slotted hole size shall be checked by two independent pins – one for each
dimension.
• All gauge pins are to be hardened steel.
• All pins must be attached to the gauge and labeled appropriately.
8.3.6.8 Flush and Feeler Checks

• Feeler clearance gaps to be either a 3mm or 6mm nominal gap, as agreed upon
by the SQE/LQI and the supplier on the FGAR.
• All flush and feeler checks are to be normal to the nominal part surface.
• All stamping and assembly gauges for closure panels shall have complete
periphery gauge bars with all feeler checks being 3.0mm gaps and flush checks
to be zero (nominal).
• Feeler and Flush check requirements for all other parts are to be agreed upon by
the SQE/LQI and the supplier on the FGAR.
8.3.6.9 SPC Checks

• All SPC bushings to be made from hardened steel
• Calibration for SPC indicators to be fixed to the gauge base
• Sections 8.3.2 through 8.3.6.10, with written approval from the SQE/LQI.
8.3.6.10 Identification
• All gauges for MBUSI supplied parts shall be clearly identified with the following
information:
• MBUSI Part Name
• MBUSI Part Number (or part number series)
• KEM Level and ZGS level
• Last certification date and date due for next certification

• This information must be permanently attached to the gauge.
8.3.6.11 Build Tolerances
Feature Location Size
Location Pins ± 0.05 mm ± 0.01 mm

Datum Surface ± 0.05 mm
Flush Surface ± 0.15 mm
Feeler Surface ± 0.15 mm
Stab Pins ± 0.10 mm ± 0.01 mm
SPC Position on Gauge ± 0.50 mm
SPC Location to Check ± 0.05 mm
8.3.7 Buy-Off Requirements

The supplier shall have a documented procedure showing how the gauge verification
process is accomplished. This plan should include a verification plan at the gauge
manufacturer and at the user facility.
8.3.7.1 CMM Certifications

• The gauge shall be verified by CMM inspection to the latest production part data,
not to the gauge data.
• Gauge verification points should, at a minimum, include:

a) Maximum distance between inspection point is not to exceed 100.0mm.
b) Minimum distance from a tangent is 3mm.
c) For curved surfaces reduce point spacing to 15-25mm.
d) For radius up to 20mm generate 3 points - both ends of tangent and at center for
radius.
e) For radius 20 to 40 mm generate 5 points – both ends of tangent and 3 equally
spaced on radius.
f) For radius 40 40mm and larger generate 10 points - both ends of tangent and 8
equally spaced
• When generating CMM inspection data, at a minimum, the following points should
be used:
a) Datum blocks - generate (5) points (1) at each corner and center.

b) Flush and feeler check rails - make rows of points at 5mm and 13mm from hard
corner edge.
c) Template (knife-edge) - make (1) row of data at .75mm from hard corner edge.
d) Template (contour edge) - make (2) rows of data 1mm from each side of blade.
e) Sight checks (irregular shaped hole) - make a row of data 3mm from top surface.
f) Sight checks (round or slot holes) - make a row of data 3mm from top surface to
check size and location, if it's a slot check the angle. Project nominal to part
surface.
g) Plug checks (round or slotted holes) - make 2 depths of cylinder check points to
determine size and location.
• The supplier shall maintain this information on site at the user facility
8.3.7.2 Gauge R&R Requirements

• All gages shall pass an approved Gauge Repeatability and Reproducibility
procedure as outlined in the AIAG Measurement System Analysis manual
• Guidelines for acceptance are as follows:

a) Under 10% error is required for critical product characteristics
b) 10% to 30% may be acceptable based upon the importance of the application. I.e.
non-critical product characteristics, cost of gage, cost of repair, etc. Acceptability
shall be determined by the SQE/LQI
c) Over 30% error, the measurement system needs improvement. The supplier shall
identify the problems and submit proposed corrections to the SQE/LQI.
8.3.8 Maintenance Requirements
8.3.8.1 Storage
• The supplier is responsible to provide proper storage for the gauge.
• Proper storage is considered protection from dirt and damage so that the
environment in which the gauge is stored has on effect on its performance.
8.3.8.2 Repair and Maintenance

• The supplier shall have a gauge repair and maintenance system at the user
facility.
• The repair and maintenance system shall, at a minimum, consist of the following:
a) An individual assigned to be responsible for the system
b) A frequency of inspection assigned to each gauge maintained on a master list
c) A system for repairing or replacing missing or damaged gauge components

8.3.8.3 Re-Certification
• The supplier shall adhere to the requirements for certification and calibration as
stated in Section 7.6, Control of Monitoring and Measuring Devices in the TS
16949 manual.
• A gauge re-certification program with a frequency of no less than once per year
must be in place. This re-certification program shall include verification of the
GR&R, if required by the SQE/LQI

9 Supplier Evaluation System

The Supplier Evaluation System (SES) is a summary of a supplier’s Quality and Logistics
performance. The rating is calculated once per month for the previous month and is based
on different key performance indicators (KPIs) set by Quality and Logistics.
9.1 Quality Performance Score

The supplier “Quality Performance Score” is a weighted calculation of the following six
key performance indicators (KPIs):
• “Q-PPM” Quality parts per million = (# defective parts/# delivered parts)*1,000,000

• “CPA” stands for “customer product audit” and is a quality check based on the point of view of a
customer
• “Sorting Hours” How many hours did MBUSI spend sorting at the yard because of a supplier quality
issue
• “Offline” describes a car which has to leave the production line unscheduled because of a supplier
quality issue
• “Responsiveness” how good is the communication between the supplier and the SQE. Possible
values are 1 (very good communication) to 9 (none communication at all)
• “GFP” is a quality audit of a finished car
9.1.1 Distribution of Quality Score

The supplier “Quality Performance Score” has a total of 100 possible points which are
distributed as follows:
KPI-Score Max. Points

Q-PPM-Score 25
CPA-Score 20
Sorting-Score 20
Offline-Score 15
Responsiveness-Score 15
GFP-Score 5

9.1.2 Calculation of Quality Score

The supplier “Quality Performance Score” calculation is shown in the following picture:
9.1.2.1 Range Table

Each supplier has individualized range tables to assign KPI scores to measured KPI values
Q-PPM Value Q-PPM Score

0 – 100 100%
101 – 150 75% Value Range Score
151 – 200 50% Table
201 – 250 25%
> 250 0%
Weigh each KPI score and add them up to a total quality score
25% * Q-PPM Score + 20% * CPA Score + 20% * Sorting Score + 15% * Offline Score +
15% * Responsiveness Score + 5% * GFP Score

9.1.3 Quality Performance Score Categories

*Minimum threshold: A value defined by SQE and based on factors like achievable
performance or target performance.
Category Description
Green The quality score is 100 and therefore on target
Yellow The quality score is below 100 but greater or equal a minimum tolerance
threshold (supplier specific)*
Red The quality score is below a minimum tolerance threshold.

Overall Status and monthly table headers are immediately on red if the
supplier is on Q-Help.
9.1.4 Supplier Quality Performance Card Explanation

The supplier “Quality Performance Card” is a monthly overview over the quality
performance and contains the following figures:
• Supplier monthly quality score
• Supplier 12 months average quality score
• Commodity 12 months average quality score
• Best-in-Commodity 12 months average quality score
• KPI values
Commodity: all suppliers which deliver similar parts based on complexity etc. are grouped in one commodity.

Contact names at MBUSI (Supplier Status of the reported month aligned with the Q-H:ELP Level.
Quality Engineer and Manager) Can be green (G), yellow (Y) or red (R).
Being in Q-H:ELP sets the overall status automatically on red
Shows if supplier has

been in Q-H:ELP (1, 2
or 3) by end of the
reported month
Score rank within the

commodity a supplier
is grouped (based on
the 12 months score)
Score for the Score over the Score Score of the

reported month last 12 months commodity Best-in-
(0-100 points) (0-100 points) average over the Commodity
last 12 months supplier over
(0-100 points) the last 12
months Quality performance
development over the
last 12 months
Minimum tolerance
line:
Border between yellow
and red status
Limit values for each

KPI. They describe
threshold in order to
receive 100 points per
KPI and refer to
current month
KPIs and their values

over the last 12
months
9.2 Logistics Performance Score

The supplier “Logistics Performance Score” is based on the following seven key
performance indicators (KPIs):
Topic RAN Parts SEQ Parts
Weight/Points Weight/Points
On-Time Delivery 50% 0%
ASN Errors 15% 0%
Mislabeled Parts 10% 0%
Responsiveness 10% 10%
Blocks in Production 5% 45%
Expedited Shipment 5% 0%
Missed at Stations 5% 45%
Table 1: Weighing of the different KPIs
9.2.1 Explanation of each Logistics KPI

The scored points will be multiplied by a weighted percentage and summed up to build
the final score. The time period for evaluation is the 1st day of each month until the last
day of the month. There are 2 separate score cards for RAN and SEQUENCE deliveries.
9.2.1.1 On-Time Delivery

This KPI is calculated by the total number of RANs from the supplier in relation to the
total number of RANs being delayed or received too early.
The calculation method for this KPI is:
Total RANs − Total (Early or Late) RANs

× 100 = % of RANs on Time
Total RANs
For example:
If a supplier ships a total of 100 RANs in Month X of which 30 RANs are delayed and 70
RANs are on time, 70% of the shipments are on-time. Since this KPI is worth 50% (or 50
points) the supplier scored 0.7 (percentage on time) x 50 points = 35 points.
9.2.1.2 ASN Errors

This KPI is calculated from Inbound ASNs that have one of the following errors:
• Goods receipt quantity does not match the RAN quantity
• ASN errors caused by Supplier error/transmission

The calculation method for this KPI is:
Total RANs − Total ASN Errors

× 100 = % of Correct ASNs
Total RANs
The percentage of correct ASN’s multiplied with 15% (the maximum points allowed for
this KPI) equals the score for this KPI.
9.2.1.3 Mislabeled Parts

Scoring is based on the number of mislabeled incidents (see table below):
Mislabel Incidents Score

0 10
1 7
2 5
3 2
>3 0
Table 2: Mislabeled Incidents Matrix
9.2.1.4 Responsiveness
Indicates how quickly Supplier responded to non-conformity and implemented corrective
action.
Mislabel Incidents Score

Effective containment and communication, 10
8D/5Y submitted and accepted within 24 hours
Containment not completely effective, minimal follow up 5
required, 8D/5Y partial acceptance
Poor/no containment, no follow up, 0
8D/5Y not submitted
Table 3: Responsiveness Criteria

9.2.1.5 Blocks in Production

This KPI indicates that cars had to be blocked from assembly start due to parts supply.
Scoring is based on the number of incidents (see table below):
Blocks Score
0 100
1 90
2 80
3 70
4 60
5 50
X>5 0
Table4: Blocks Scoring Matrix
9.2.1.6 Expedited Shipment

This indicator measures the number of expedited shipments and puts the absolute
amount of expedites in relation to the total number of shipments/trailers.
Total Expedited Trailers

1− × 100 = % of Non Expedited Trailers
Total Trailers
For this particular KPI we would like to emphasize the following information:
The scoring program identifies the delivering trailer SCAC code. If the SCAC code is
different from expected standard, the program considers the shipment expedited.
Please see table below as an example. Even though the shipment was not expedited, the
program recognizes it as an exception because it does not match the expected SCAC
code. Therefore you must enter the SCAC code correctly in order to avoid a scoring
penalty.
Incorrect:
Trailer Expected Trailer Planned Date Ship Date In Yard Date

Ident. SCAC SCAC
510482 TCAM 5104 3/4/2013 2/28/2013 3/1/2013
Correct:
Trailer Expected Trailer Planned Date Ship Date In Yard Date

Ident. SCAC SCAC
TCAM510482 TCAM TCAM 3/4/2013 2/28/2013 3/1/2013
Table 2: Comparison between correct and Incorrect Trailer Identification

9.2.1.7 Missed at Stations

This KPI indicates the total amount of vehicles that passed the defined installation point
due to parts supply:
Missed Score Missed Score
Vehicles Vehicles
0 100 < 26 50
< 6 90 < 31 40
< 11 80 < 36 30
< 16 70 < 41 20
< 21 60 > 41 0
Table 3: Missed at Station Matrix
9.2.2 RAN Scorecard Calculation

The figure below is a screenshot of the actual program used to generate scores. Each KPI
is calculated separately so that you are able to see your overall score and the specific
scores in each category. In case of discrepancies or for your own internal research
purposes, additional information is available upon request.
Figure 1: RAN Calculation Screen

9.2.2.1 Logistics Performance Scorecard Explanation – RAN Suppliers
Status of the reported month aligned with the Q-H:ELP Level. Can be
green (G), yellow (Y) or red (R).
Contact names at MBUSI (MRP Specialist) Being on Q-H:ELP sets the overall status red
Shows if supplier is on Q-
H:ELP (1, 2 or 3) by end of
the reported month
Figure 2: Detailed Scorecard Explanation (1/2)
Score for the Average score over

reported month the last 12 months
LOG performance trend

over the last 12 months
Weight of the specific

Figure3: Detailed Scorecard Explanation (2/2) KPIs and their values KPI
9.2.3 SEQUENCE Scorecard Calculation

The figure below is a screenshot of the actual program used to generate scores. Each KPI
is calculated separately so that you are able to see your overall score and the specific
scores in each category. In case of discrepancies or for your own internal research
purposes, additional information is available upon request.
Figure 4: SEQ Calculation Screen

9.2.3.1 Logistics Performance Scorecard Explanation – SEQ Suppliers

Status of the reported month aligned with the Q-H:ELP Level.
Can be green (G), yellow (Y) or red (R).
Contact names at MBUSI (MRP Specialist) Being on Q-H:ELP sets the overall status red
Shows if supplier is on Q-
H:ELP (1, 2 or 3) by end of
the reported month
Figure5: Detailed Scorecard Explanation (1/2)
Score for the Average score

reported month over the last 12
months
LOG performance trend

Weight of the specific

KPI
Figure 6: Detailed Scorecard Explanation (2/2)
KPIs and their values
9.2.4 Logistics Performance Score Categories
Category Description
Green The LOG score is 95 or greater and therefore on target.
Yellow The LOG score is below 95 but greater than or equal to 90.
Red The LOG score is below 90.
Overall status and monthly table headers are immediately red if the supplier is on Q:H-ELP. All
suppliers scoring below 90 will be subject to corrective actions.

10 Documents/References
VDA 6.1 Qualitätsmanagement in der Automobilindustrie, Part 1, System Audit
VDA 6.2 Qualitätsmanagement in der Automobilindustrie, Part 2, Quality Assurance of
Supplies
VDA 6.3 Qualitätsmanagement in der Automobilindustrie, Part 3, Process Audit
TS 16949 Quality Management System Technical Specification
Mercedes-Benz Special Terms (MBST-13)
AIAG Production Part Approval Process Manual
AIAG Advanced Product Quality Planning and Control Plan Manual
AIAG Quality Systems Requirements
AIAG Potential Failure Mode and Effects Analysis Manual
AIAG Statistical Process Control, Copyright 1995
AIAG Measurement Systems Analysis Manual

11 Records
The Supplier and all Sub-suppliers shall maintain accurate records concerning all quality
activities. MBUSI reserves the right to inspect or request records pertaining to product
supplied to MBUSI

12 Revision/History
Revision Description of Changes Revised by Date
00 Supersedes previous version – SQAM 26.03 D. Reeder 17-Feb-2014
Section 1:
- Introduce the Roles & Responsibilities of Supplier Quality at Q3.0
(MQI/LQI/RQI)
Section 2: Quality Activities Prior to Part and Process Approval

- Explanation of Sampling Planning/Sampling Coordination Meeting
- Introduction of the VDA-RGA Program, TRL Audit, PFA Audit
- Updated DPA to VDA 6.3 Process Audits
- Requirements of Safety/Regulatory parts (DS/DZ)
- Daimler applications needed by supplier via Supplier Portal
Section 3: Production Process and Product Approval

- Adopted the requirements from MBST-13 regarding the Production Process and
Product Approval (PPA)
- Identification requirements of PPAP samples
- IMDS requirements
- Updated PPAP sample part submission procedure and shipping address
- Revise explanation of approval status based on MBST-13
- Explanation of Deviation Permit and cost allocation, where applicable
Section 4 : Trial Support

- No Changes
-
Section 5: Production Launch Support
- No Changes
Section 6: Series Production Support

- Cost responsibility for non-conforming material
Section 7: Corrective Action/Q-H:ELP

- Updated the reporting tool to include SQMS Complaint Management
- Explanation of Q-H:ELP
Section 8: Gauge Standard

- No Changes
Section 9: Supplier Evaluation System

- Updated the explanation/calculation of the new Logistics Performance Score

MERCEDES - Supplier Quality Assurance Manual (SQAM)

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MERCEDES - Supplier Quality Assurance Manual (SQAM)

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Quality Department SMP: Supplier Quality Assurance Manual

SMP Number: PSQ 27.00

Supplier Quality Assurance Manual (SQAM) Page 2 of 63

1 Supplier Quality Assurance Manual (SQAM) ...................................................................5

SMP Number: PSQ 27.00

Supplier Quality Assurance Manual (SQAM) Page 3 of 63

3.8 Approval Status .......................................................................................................................... 29

FORM QDF01-02 REV 12APR2011

SMP Number: PSQ 27.00

Supplier Quality Assurance Manual (SQAM) Page 4 of 63

8.3.6.4 Body ................................................................................................................................. 44

FORM QDF01-02 REV 12APR2011

SMP Number: PSQ 27.00

Supplier Quality Assurance Manual (SQAM) Page 5 of 63

1 Supplier Quality Assurance Manual (SQAM)

FORM QDF01-02 REV 12APR2011

SMP Number: PSQ 27.00

Supplier Quality Assurance Manual (SQAM) Page 6 of 63

AIAG Automotive Industry Action Group. A Trade association consisting of U.S.

FORM QDF01-02 REV 12APR2011

SMP Number: PSQ 27.00

Supplier Quality Assurance Manual (SQAM) Page 7 of 63

GR&R Gage Repeatability and Reproducibility study as defined in the AIAG

FORM QDF01-02 REV 12APR2011

SMP Number: PSQ 27.00

Supplier Quality Assurance Manual (SQAM) Page 8 of 63

PT1, 2, 3, etc. The production trials in the pre-launch build process

FORM QDF01-02 REV 12APR2011

SMP Number: PSQ 27.00

Supplier Quality Assurance Manual (SQAM) Page 9 of 63

1.5.1 Roles of Supplier Quality in Q3.0

FORM QDF01-02 REV 12APR2011

SMP Number: PSQ 27.00

Supplier Quality Assurance Manual (SQAM) Page 10 of 63

FORM QDF01-02 REV 12APR2011

SMP Number: PSQ 27.00

Supplier Quality Assurance Manual (SQAM) Page 11 of 63

1.6 Supplier General Matrix

Check annually whether the deliveries meet ISO/TS 16949 PSQ

Have a continuous improvement program which Per industry accepted PSQ

Maintain all equipment and tools through a TS 16949 PSQ, Finance, SP

FORM QDF01-02 REV 12APR2011

SMP Number: PSQ 27.00

Supplier Quality Assurance Manual (SQAM) Page 12 of 63

Maintain a contract with an MBUSI approved on- Keep current PSQ

FORM QDF01-02 REV 12APR2011

SMP Number: PSQ 27.00

Supplier Quality Assurance Manual (SQAM) Page 13 of 63

2 Quality Activities Prior to Part and Process Approval (PPA)

2.1 Sampling Planning

The sampling plan can be done as part of a “Sampling Coordination Meeting” or

2.2 Supplier Organization

FORM QDF01-02 REV 12APR2011

SMP Number: PSQ 27.00

Supplier Quality Assurance Manual (SQAM) Page 14 of 63

2.3 Program Management

2.4 VDA-RGA Program

Depending on the ABC part-classification, supplier-self assessment or round table

2.5 Supplier Audits

2.5.1 VDA 6.3 Process Audits

FORM QDF01-02 REV 12APR2011

SMP Number: PSQ 27.00

Supplier Quality Assurance Manual (SQAM) Page 15 of 63

2.5.2 TRL Audit