2.2.1 Quality - General

Purpose:

To explain the Veoneer specific quality requirements in addition to the requirements included in the ISO 9001 and IATF 16949.

Input from Veoneer:

• Veoneer Supplier Manual (VSM)
• Veoneer Standards referred to in the VSM

Requirements:

1. Responsibility

The supplier has the full responsibility to set up and maintain an effective, operating quality system ensuring that the supplier, their sub suppliers and outsourced processes/services are under control and capable of developing and manufacturing materials/components and providing services which consistently conform to all Veoneer requirements. This includes assessing what methods and actions are necessary and the effectiveness of those actions to address the risks and opportunities in the supplier's value stream. This also includes the control of externally provided products, processes and services as follows:

• Shall determine type and extent of controls to be applied and verification activities
• Shall determine evaluation, selection, monitoring of performance and re-evaluation
• Retain records
• Provide external providers with requirements including competency/qualification
• Organization shall control and monitor providers performance
• Ensure externally provided processes remain in control of QMS

2. Quality system

Veoneer requires compliance and evidence according to ISO 9001, the AIAG-Manuals PPAP and APQP, the VSM and eventual full compliance to IATF 16949.

Veoneer Suppliers must have third-party certificates to the current version of ISO 9001 or IATF 16949. Suppliers shall have a plan to obtain IATF 16949 certification. Risk analysis shall be used to document the criteria for determining the need, type, frequency and scope of second party audits and retain records of audit reports.

Suppliers should have management reviews to understand and assess the risks of their products and work to improve the risks.

3. Advanced Product Quality Planning (APQP)

The supplier shall follow the APQP process as defined in the AIAG APQP Manual. Veoneer specific APQP requirements are documented on the S-APQP overview (see Training). Each identified activity shall be planned and included in the supplier APQP process.

These activities shall be documented by the supplier in the S-APQP project created by Veoneer SQ and in the supplier project plan. The results from each activity during the project shall be made available to Veoneer on request. The supplier must report progress and the current status of all projects through the application of Advanced Quality Planning techniques and use Veoneer related IT application (references: SQP IT application in VPP (see Training) and the AIAG-Manual APQP).

4. Supplier PFMEA Go, See & Fix

The “Supplier PFMEA Go, See & Fix ” is an activity with the purpose to improve the quality of our products by

• evaluating PFMEA failure modes
• comparing related prevention and detection steps of the PFMEA at the production line and related areas (from incoming material to outgoing product)
• verification of effectiveness all poka-yoke’s and detection sensors in the production line.

A detailed description including questionnaire can be found in the Supplier PFMEA See & Fix Workshop.

5. Production Part Approval Process (PPAP)

The AIAG manual "Production Part Approval Process" (PPAP) defines the requirements for part submissions. To ensure compliance with our customer's requirements, the Veoneer expectations and specific requirements have been established as additional PPAP requirements (references VSM-Quality Requirements/“PPAP" and AIAG-Manual PPAP)

6. Supplier Change Request (SCR) 

The SCR procedure applies to all suppliers. Veoneer engineering approval is required prior to implementing any change.  (references VS007 Appendix J, VS007 Appendix J1)

7. Special Characteristics Classification

The Special Characteristics Classification and resulting actions are defined and explained in the Veoneer Standard VS052.

Results of control and verification of Special Characteristics will be directed by the using Veoneer facility. Special Characteristics passed down to supplier require them to cascade applicable requirements down the supply chain. (references: Appendix A, Appendix B)

8. Product, process and system audit

Suppliers shall audit each manufacturing process to determine its effectiveness and select the types and extent of controls used to verify conformity to internal and customer requirements. Supplier shall have criteria to escalate or reduce their controls based on their performance and assessment of their product of service risk

8.1 General

Veoneer has the right to carry out product, process and system audits at the supplier and their sub suppliers. Veoneer can require that the suppliers carry out and report internal product process and system audit results. Supplier auditors should have the following minimum auditor qualification requirements:

• Automotive process approach to auditing including risk based thinking
• Applicable customer and suppliers specific requirements
• Applicable ISO 9001 and IATF 16949 requirements
• Applicable Manufacturing processes including PFMEA and Control Plan
• Applicable core tool requirements (SPC, MSA, FMEA, APQP, PPAP, etc.)
• Understanding how to plan, conduct, report and close audit findings

8.2 Special Process Assessments

Supplier shall evaluate the effectiveness of each of the applicable special processes listed and described in the associated VS069 manual.

Evaluation of VS069 shall be by self-assessment. The self-assessment shall be conducted annually, but may be repeated as needed. The self-assessment must be conducted as part of the supplier’s internal quality audit.

If required, Veoneer authorized Representative may perform special process audits or review validation at the supplier site according to VS069. Supplier must assure that sub-suppliers have full control of any outsourced processes or services included for VS069 type activities which includes plating, coating, heat treat and other process/services done on supplier's products.

8.3 Sub-Supplier Process Assessments

Suppliers shall:

• Document standards and criteria to evaluate sub-supplier performance in order to ensure externally provided products, processes and services meet all requirements.
• Assure that sub-supplier indicators performance include customer disruptions at the receiving plant, yard holds and stop ships, special status notification & dealer returns, warranty, field actions and recalls.
• Evaluate the effectiveness of sub-supplier's QMS to assure that they are ISO 9001 and IATF 16949 compliant.

8.4 Sub-Supplier Outsourced Services

Suppliers shall:

• Have a process to identify, control and document their sub-supplier's processes for services rendered that can affect the final customer's products and assure they are ISO 9001 and IATF 16949 compliant.
• Examples of some services that can affect customer requirements, may include: sub-assembly, sequencing, sorting, testing, calibration services, warehousing, logistics, etc.

9. Dock Audit

The supplier shall complete a Dock Audit prior to shipping a manufacturing lot of product to Veoneer (reference section “Lot Definition” below).

Dock Audit is heightened inspection to review product/packaging prior to shipment to verify conformance to requirements listed on Dock Audit Report (DAR) supplied and agreed by Veoneer SQ.

A Dock Audit is a product inspection that is performed on product after the manufacturing activity and final inspection is completed (prior to shipment) done by supplier.

Supplier to perform DAR on every delivery and keep paperwork on file unless needed at Veoneer. DAR shall be therefore included in the supplier’s control plan.

Veoneer randomly verifies the supplier DAR and other specified documents by check (physical/document ) to insure that all of the agreed operations are performed in accordance with Veoneer requirements.

A Dock Audit Report (DAR) as a specific Inspection Standard shall be on required format and on file at the supplier’s facility and available upon request by the Veoneer using facility. Dock Audit Report (DAR)

The Dock Audit and DAR requirements will be provided to the supplier by the using facility SQ during the Supplier Quality Project or serial production.

Raw Material Certifications are to be retained by the supplier (reference “Document Control and Records”) and available upon request by Veoneer.

10. Annual Layout Inspections

The supplier shall conduct a one piece, 100% layout inspection of every part number minimum once per year from each manufacturing process and tool. This layout shall include all dimensions / characteristics specified on drawings and specifications, if not otherwise specified. Annual layout inspection and dates shall be included in the supplier’s production control plan. Any characteristics which are enumerated on the production control plan and are measured more frequently than once per year will not require annual layout inspection. The data shall be available on request from the Veoneer using facility. In the event there is a non-conformance, all related data shall be submitted to the product approval authority of the using Veoneer facility.

For multi-cavity tooling, all cavities must be represented.

If a complete new PPAP submission is required, the PPAP will substitute the Annual Layout Inspection.

The above annual layout inspection standard is becoming a global, mandatory requirement for all supplier products where purchase orders is placed after the 31st of December 2004. Before that date Veoneer encourages suppliers to conduct the annual layout on existing and new products.

11. Product Safety, Liability and Warranty

The supplier is responsible for that any and all materials, components, products and services supplied to Veoneer in all respects conform to Veoneer specifications, drawings, quality requirements and that such materials, components, products and services are free from defects in design (to the extent designed by supplier), material and workmanship, are of merchantable quality and comply with all applicable laws.

All non-conforming materials, components, products and services can cause product safety, liability and warranty issues that will be claimed against the supplier.

Therefore all supplier staff members, who are responsible for or working with instructions related to product quality and performance, must be educated and understand the principles of product safety, liability and warranty. Supplier must also consider capabilities of and constraints on existing resources and what is needed from external providers.

The supplier must introduce adequate systems of control, ensuring the following:

• Information and qualification of the affected personnel.
• Legal advice (internal and external).
• Compliance with and use of state-of-the-art technology.
• That the development, production and quality assurance processes and their supervision are according to the latest status of technology (it may not be sufficient only to comply with the standard).
• Limitation of fault consequences by documentation and traceability system.
• Immediate information to Veoneer of any discovered non-conformity.

12. Product Status and Traceability

The supplier systems must ensure that all critical and significant characteristics as indicated on Veoneer drawings and specifications are traceable and recorded from the lot/batch number of the delivered part to the raw material(s) lot(s)/batch(s) from the sub supplier. This is also applicable for all process parameters affecting such characteristics and raw material certificates or analyses.

All records shall be provided to Veoneer immediately, without delay upon request.

The identification of inspection and test status for products shall be maintained at each stage of production. The traceability level of Veoneer parts is specified according to Veoneer Standard VS004.

13. Lot / batch definition

If nothing else is specified, the suppliers manufacturing lot/batch size shall not exceed one (1) day (24 hours) production, with a maximum of 20,000 parts. The definition of the lot/batch size shall be done in consideration of traceability requirements.

(reference: VS004 see appendix 2)

14. Document Control and Records

All documents and records demonstrating product quality conformance and traceability documents, must be stored in safe condition in order to prevent destruction and maintained for minimum 23 years after shipment of items affected by document or longer if required by legislation. In addition to that specified in ISO 9001 or IATF 16949, the following records shall require retention:

• Production conformity test reports
• Critical process parameters as defined in the supplier control plan
• Raw material certificate
• Test procedures and results
• Receiving inspection results
• PPAP submission and response
• Master samples

15. Corrective Action

The Veoneer expectations regarding problem solving are defined and explained the Veoneer Supplier Quality Specification SQPS-063 and in the VSM-Main block "The product Life Cycle with Veoneer"/"Complaint Reporting and Resolution"

16. Continuous Improvement

Veoneer requires a continuous improvement program from their suppliers. Veoneer recommends the tools included in the VES (Veoneer Excellence System). The program shall also include actions to identify and reduce process variations. References: VSM-Main block “The Supplier Life Cycle /Continuous Process and Cost Improvement" and VSM-Main block/ “Supplier Lifecycle"

All electronic component suppliers are required to implement all Methods and Tools described in AEC Q004 as appropriate.  In addition, for semiconductor devices, the zero-defect strategy must include a particle (defectivity/ latent defect) management and improvement strategy using state-of-the-art inspection tools, designed with the resolution most capable for the supplied technology. 

17. Reference documentation

Any document used as a reference document in the VSM, refers to the latest valid revision.

Output from Supplier:

• Acknowledgement of acceptance of VSM (Veoneer Supplier Manual).
• Third party Quality System certification or plan for first time certification to reach ISO 9001 or IATF 16949.

Required Documents:

• VSM Supplier Acknowledgement Letter
• Third party Quality System certificate or documented plan to reach ISO 9001 or IATF 16949 certification.

Reference Documents:

• S-APQP Overview
• VS004 (Product Traceability)
• VS004 Appendix 1b - Traceability Flow chart (Supplier Example)
• VS004 Appendix 2 - Traceability Classification Levels
• VS004 Appendix 3 - Traceability Data Requirements Charts
• VS007 Appendix J - Supplier Change Request Management
• VS007 Appendix J1 - Supplier Change Request template
• VS052 (Product Characteristics Classification)
• QPD052 A - CC/SC Summary
• QPD052 B - CC/SC template
• SQPS-063 (Problem Management & Lessons Learned Process)
• VS069 (Special Processes - Requirements and Assessments)
• VS069 - Heat Treat Assessment File
• VS069 - Plating Assessment File
• VS069 - Coating Assessment File
• VS069 - Welding Assessment File
• VS069 - Soldering Assessment File
• VS069 - Crimping Assessment File
• VS104 - FMEA
• Dock Audit Report template
• IATF 16949 (Quality Management Systems)
• ISO 9001 (Quality Management System)
• AIAG manuals (obtainable e.g. from Carwin Continuous Ltd. Unit 1 Trade Link, Western Ave, West Thurrock, Grays, Essex, England (Tel. +44-1708861333, Fax +44-1708867941) and on internet address www.asq.org/9000 or www.aiag.org):
  • PPAP (Production Part Approval Process)
  • IATF 16949 Automotive Quality Management System 
  • APQP (Advanced Product Quality Planning and Control Plan)
  • SPC (Statistical Process Control)
  • MSA (Measurement Systems Analysis)
  • P-FMEA (Process Failure Mode and Effects Analysis)