1. Presentation of the QIP V2.0 Manufacturing Performance Assessment
May 2013

2. 1 ? 2 3 4 5 Contents INTRODUCTION EVALUATION PROCESS
EVALUATION WORKSHEET
& SCORING MATRIX 4
REQUIREMENTS
OVERVIEW 5
EXAMPLES OF
SCORING 2

3. 1 ?
INTRODUCTION 3

4. Assessment tools – Present Situation
SOP
Serial Phase
Indus Phase
Tool
Kick
Off
Design Phase
Selection Phase
F2, F3 Audits
QIP
One Single Common Referential
QSB
Sourcing Approval Matrix. (PSA / PCPA / …)
PCPA
Process Specific Audits
QIP V2.0
Enterprise Performance
Checklist
& Process audit

5. Main Specifications (1/2) The key principles
One single assessment referential  3 differents tools
Certification
QSB+ Structural audit
76 / 92 Requirements
QIP V2.0
NSA new supplier ass.
59 / 92 Requirements
92 Requirements
PCPA process audit
49 / 92 Requirements

6. Main Specifications (2/2) Common characteristics
Versatile tools which can be used on every manufacturing site & every process
Evaluation covers the entire manufacturing scope (quality / logistics / Industrial efficiency)
Quality
Logistics
What is the difference between ISO/TS and QIP V2.0 ?
ISO/TS is the high level review performed by an independent 3rd party.
QIP V2.0 is a much closer look performed by the Customer.
GM & PSA check on the shop floor how systems are being used whereas ISO/TS checks that there are Quality Systems in place.
Efficiency

7. QSB+ structural audit The new tool to replace the QIP V1.0 Assessment
76 / 92 Requirements
Certification
The new tool to replace the QIP V1.0 Assessment
Certification associated with an impact on Supplier Scoring (BIDLIST)
Scope: A complete supplier plant
Purpose:
Evaluate the overall robustness of processes on site:
Manufacturing System requirements are fully met and work effectively
Drive the continous improvement (identification of weak points & axes of improvement)
Operational Requirements
Maximum duration of the evaluation on site: 2 days
Self-assessment can be done by supplier himself
Updated continously to integrate the impact of the events in the relationship
Project
Manufacturing
System
0 / 7
76 / 76
Part & Process
0 / 9
Nb of Requirements

8. NSA new supplier ass. The new tool to replace the Diagnostic audit
59 / 92 Requirements
Project
Part & Process
Manufacturing
System
The new tool to replace the Diagnostic audit
Scope: A complete supplier plant
Purpose:
Evaluate the manufacturing maturity of a new supplier: Basics are in place
At the beginning of a project, evaluate the effectiveness of operational launch organization on supplier site
Operational Requirements
Maximum duration of the evaluation on site: 1,5  2 days
Self-assessment by supplier before evaluation: Optional
7 / 7
48 / 76
4 / 9
Nb of Requirements

9. PCPA process audit Scope: A complete process in a supplier plant
49 / 92 Requirements
Project
Part & Process
Manufacturing
System
Scope: A complete process in a supplier plant
Purpose:
At the end of a project, Confirm the qualification status
of the process:
Parts & Process controls are in place to ensure final product quality
During mass production phase after major issues, Diagnostic tool to identify weak points
Operational Requirements
Maximum duration of the evaluation on site: 1 days
Self-assessment by supplier before evaluation: Optional
0 / 7
40 / 76
9 / 9
Nb of Requirements

10. Bidlist (supplier plant scoring)
One Single assessment referential
Bidlist (supplier plant scoring)
Certification
NSA
Project
Manufacturing
System
PCPA 76 7
QSB+ 48 40
Part & Process 4 9
Same questionnaire (same requirements) used for all the 3 types of audit
Continous assessment of supplier’s manufacturing system via audits
All the audit results affect to Bidlist performance (supplier plant scoring)

11. BIDLIST Vision (Supplier Plant Scoring) Details of impacts (implemented in 2014)
Points deduction
Certified (QIP v2.0 Green: Score > 85%)
Waiver and Not Applicable
0 pts
Not Certified (QIP v2.0 Yellow: Score 75% - 85%)
 90 days
Forecast: Supplier Self-assessment available & audit planned
 6 months
Temporary
0 pts
-10 pts
Not Certified (not evaluated or QIP v2.0 Red: Score < 75%)
Certification expired (after 3 years)

12. QIP V2.0 Life Cycle continuous Assessment with the same Questionnnaire
NSA
new supplier ass.
PCPA
process audit
QSB+
Structural audit
Verification after Major issue
First self assessment
Annual
Update by supplier
Diagnosis of the supplier plant
Confirmation of the qualification status
Certification Audit
Selection
Phase
Design Phase
Indus Phase
Mass Production Phase
Tool
Kick
Off
SOP
BIDLIST (Supplier Plant Scoring)

13. QIP V2.0 Production Site Assessment Structure of the questionnaire
Key Elements
QSB +
NSA
PCPA 1
Fast Response 6 4 3 2
Control of Non-conforming Product 7 5
Verification Station &
Error proof Verification
Standardized Work
Training
Layered Process Audit
Risk Reduction 8
Contamination Control 9
Supply Chain Management 10
Managing Change 11
Maintenance 12
Material Flow Management 13
External Logistic 14
Strategy & Project management 15
Part & Process Control 76 59 49 15
Key
Elements
92 Requirements
The referential is « self-understandable »
For each Requirement, a list of criteria describes precisely customer expectations
These criteria are used for the scoring

14. 2
QSB+
CERTIFICATION PROCESS 14

15. Complete self-assessment Evaluation of self-assessment
QSB+ Structural audit The main Steps – QSB+ life cycle
Complete self-assessment
Evaluation of self-assessment
Training if needed
Complete action plan
Certification audit
Annual update
Revoke certification
Process
Certification granted for 3 years
Major issue
Monitor performance / PCPA
Supplier
Customer
PSA-GM
Responsibility
15 days
10 days
1 month
max. 6 months
1.5 – 2
days
yearly
Leadtime

16. QSB+ Structural audit – The Main Steps Supplier Self-Assessment
Intent
Supplier awareness of requirements
Gap analysis between requirements and supplier current system
Get status about readiness before customer on-site assessment
In case of revocation: identify why system fails
Process
New Audit presentation (live conversation)
Send « audit package »
15 working days for complete self assessment
Hint
Highlight that is a gap analysis: red result has no any negative affect but help to identify weak points
Obtain a full scoring with all necessary comments (explanations of the supplier are as important as the scoring)

17. QSB+ Structural audit – The Main Steps Evaluation of Supplier Self-Assessment
Intent
Calibrate Supplier’s evaluation criteria
Identify items where training is needed
Identify where action plans must be requested
Process (2 possibilities)
« Theoretical » calibration: self-assessment reviews (meetings or conf-call)
On-site Assessment
Complete audit resulting customer scoring
Crosscheck requirements to validate supplier evaluation
Important: Supplier can be certified at this step if:
Self-certification has been verified on site by customer
Final score > 85% with no red key element
Note: Self-assessment can be refused if the scoring is not robust (important gap between customer evaluation & supplier self-ass.)

18. QSB+ Structural audit – The Main Steps Training & Action plan
Intent
Understand Audit Requirements & expectations
Review & implement examples to supplier system
Process
Supplier self-training based on QIP V2.0 material package
Service provider training (approved 3rd party)  Available in 2014
Complete Action Plan
Cover Gap between supplier current system & QIP V2.0 requirements.
Base for close follow up of implementation
Prepare supplier for Certification audit
Maximum leadtime for full implementation is 6 months
In due dates it needs to be considered that system has to operate, not only implemented
Hint
Verify action plan after receiving (actions definition, due dates are realistic)
Organize regular calls for checking completion of action plan and guide supplier to right direction

19. QSB+ Structural audit – The Main Steps Certification Audit
Intent
On-site customer assessment to verify that all the Requirements are met
Result in Certified status for next 3 years
Process
It can be done only by customer auditor (no exception even for strategic suppliers)
Maximum days assessment
Result is reported out in the Audit Sheet

20. QSB+ Structural audit – The Main Steps Supplier Annual Update
Intent
To ensure that QIP v2.0 system works after audit
To ensure awareness of QIP v2.0 requirement in case of new staff
Process
Supplier need to send self-assessment with associated action plan
Every 12 months after initial certification,
60 days after any key management change (Plant manager, Quality Manager or Operation Manager) or repeat Quality issue.
If self-assessment is missed to submit, certification can be revoked
If PCPA meanwhile performed, not necessarily need to submit self-assessment

21. QSB+ Strcutural audit – The Main Steps Revoke Certification
Intent
To complete all certification process to ensure that QIP V2.0 system is operating and work effectively again
Process
In case of major issue, repetitive failed PCPA or degradation of supplier performance, SD site initiate revoke process with agreement of management
According to vision, audit result will have on-line link with Bidlist

22. 3
EVALUATION WORKSHEET
& SCORING MATRIX 22

23. QIP V2.0 Production Site Assessment QIP Evaluation Worksheets
Instructions
Description of usage of QIP questionnaire.
QSB+ process
Special instruction for QSB+ evaluation.
Glossary
Complete list of abbreviations used in audit list.
Header
Input of basic information and selection of audit scope.
Summary
Result of audit/self assessment calculated automatically.
Audit
Common questionnaire list.
Action plan
Supplier action plan to close gaps identified during self assessment or audit.
Change request
Proposal for changes/suggestions to be considered for next review

24. QIP V2.0 Production Site Assessment An example of requirement
Item
Requirement
Criteria of Requirement
Look for
Fast Response
FR1
Daily leadership meeting held with cross-functional, multilevel attendees to address significant external and internal concerns.
1) There is a daily Fast Response (FR) meeting with cross-functional attendees and led by manufacturing. 2) The FR meeting is a communication meeting and a precise timing is respected. 3) All the significant external and internal issues are addressed. 4) Natural owners are assigned to problems, next report out date is assigned. 5) Take into account the production forecast and the quantity produced. 6) Safety and near miss accident issues are reported out.
Attend FR meeting. Observe: - lead by manufacturing with cross -functional attendees, - how leader controls the FR meeting (keep timing max minutes, focus on subject, not going to the details...), - environment is suitable (everyone can hear and see the meeting), - how issues reported out. - Problem Solving report format is used for report out and document the status of the issue.
General Definition
Summary of the intent of requirement
Detailed deployment of 'Requirement' in bullet points
Supplier has to operate a system to meet listed expectations
Auditor hints and techniques how and what need to be checked besides 'Criteria of Requirement’
Two types of Criteria of the Requirement are identified:
basic criteria are identified with Bold type, cover basic key requirements (must have)
additional criteria are identified with unbold type, cover additional requirements (recommended best practice).
Furthermore it is used for collecting evidences and setting up scoring

25. QIP V2.0 Production Site Assessment The Scoring Principles
Axiom #1: Standardize all your activities & Strictly apply your standards
Axiom #2: Measure your real effectiveness to achieve customer expectations & improve it

26. QIP V2.0 Production Site Assessment Scoring Definition
Quality manuals Procedures
Work Instructions
Guides
flowchart
Principles
Criteria
Main processes
Organization
Operational
Standards
Requirements
QIP
supplier
Implementation scoring
Effectiveness scoring
Deployment
Customer
Satisfaction
Process
Metrics
Result
To evaluate standardization and implementation of requirement
To evaluate
real effectiveness to achieve customer expectation and continous improvement

27. QIP V2.0 Production Site Assessment Scoring Structure & application
Key Element #1
Implementation scoring of each individual requirement
Effectiveness scoring at the end of each key element
Key Element #2

28. IMPLEMENTATION SCORiNG For Each Requirement
Principles
Criteria
Main processes
Organization
Operational
Standards
Implementation scoring
Deployment
Customer
Satisfaction
Each Requirement is scored from 0 to 4 according to the following scoring matrix:
Pts
Element Scoring
No criteria are in place. 1
Several basic criteria are not in place. 2
A majority of basic criteria are in place and followed. At least one basic criteria is not followed.
Or basic criteria are not in place or followed at all areas of company. 3
All basic criteria are in place and followed. Some additional criteria are not in place. Or basic criteria are not followed at each job or all the time. 4
All criteria are in place and followed and most additional criteria are followed at each job or all the time. NR
Not Reviewed: Requirement not audited at this time (Not part of audit scope, Training Required, Follow-Up Required). Plan to review in future. Give future review date in Comment box. NA
Not Applicable: Question does not apply and not calculated to overall result. Note to explain why question is not applicable is needed in Comment box.
Audit Failed

29. EFFECTIVENESS SCORING Introduction
Is system working well when ?
Fast Response fully implemented, but there are several long lasting customer complaints,
Non-conforming materials are controlled, but operating with high scrap rate without any improvement activities,
LPA is performed in all level according to schedule , concerns documented and action defined, but there are lots of repetitive finding on LPA
 System is in place, but not working effectively!

30. eFFEctIvENESS SCORING for a complete section
Principles
Criteria
Main processes
Organization
Operational
Standards
Deployment
Customer
Satisfaction
the Key notions
The customer (internal or external)
The measurement of satisfaction
Metrics shared with customer (target & management)
Effectiveness is evaluated through a specific requirement at the end of each section
A list of relevant metrics related to the evaluated process
Effectiveness scoring
Example of requirement
Pts
Effectiveness Scoring
No metrics are in place to evaluate topic effectiveness 1
Some metrics are in place but basic metrics are not defined 2
Basic metrics are in place and followed with targets however deviations from targets are not managed 3
Basic Metrics are followed and deviations are managed by action plans but most additional metrics are not defined 4
Continuous improvement for key metrics are in place or majority of additional metrics are managed.
LPA effectiveness are continuously monitored and analysed via LPA results
1) Tracking of audit results with visualization to share status on affected area (nb of non conformances per LPA, pareto of non conformances, repetitive findings, nb of customer issues caused by non respect of standardized work - it should have been found by LPA).
2) Tracking of keeping audit schedule & effectiveness of action plan implementation(average time to treat deviations/effectiveness). 30

31. SCORING Thresholds for result calculation
Red / Yellow / Green visualization applied
Thresholds are defined on 2 levels
On each Requirement: score < 2 => Overall result goes Red
On each Key Element: score < 75% => Overall result goes Red
Conditions to be certified
No Red item (Key Element or Requirement)
Overall result ≥ 85%

32. SCORING Equivalencies QIP V2.0  QIP V1.0
QIP V2.0 Requirements  QIP V1.0 Requirements
QIP V1.0 Requirements  QIP V2.0 Requirements
Old Scoring  New Scoring

33. 4
REQUIREMENTS
OVERVIEW 33

34. QIP V2.0 Production Site Assessment 15 Key Elements
Nb Of
Requirements 1 FR
Fast Response 6 2
CNC
Control of Non-conforming Product 7 3
VS & EP
Verification Station & Error proof Verification 4 SW
Standardized Work 5 TR
Training
LPA
Layered Process Audit RR
Risk Reduction 8 CC
Contamination Control 9
SCM
Supply Chain Management 10 MC
Managing Change 11
MAI
Maintenance 12
MMFM
Manufacturing & Material Flow Management 13
ELG
External Logistic 14
SPM
Strategy & Project management 15
PPC
Part & Process Control 9  92

35. QIP V2.0 Production Site Assessment Detailed Content #1: Fast Response (FR)
Detection & Tracking of the internal/external major issues
Daily production meeting
Fast response Board
Problem solving standardize methodology
Used for all type of concerns
6 steps: define, contain, root cause id, correction, validation, institutionalization
System to manage lessons learned
Organization
Procedure / forms

36. QIP V2.0 Production Site Assessment Detailed Content #2: Control of Non-conforming Product (CNC)
Traceability
Compliance to specific customer requirements
Equipments & Organization associated
FIFO Management
Identification mode of the non-conforming or suspect material
Alert issue
Upstream: Tier N
Downstream: Customer
Containment process
Rework process
Management of the deviations (customer “derogations”)

37. QIP V2.0 Production Site Assessment Detailed Content #3: Verification Station & Error Proof Verification (VS)
Final Checking
Organization
Standards
Alarm system
Thresholds definition
Escalation process
Error proofing systems
Management of the EPS
Management of the malfunctionning / failures

38. QIP V2.0 Production Site Assessment Detailed Content #4: Standardized Work (SW)
Workplace organization
Standardize Layout
5S management
Ergonomics & Painfulness concerns
Rules related to ergonomics
Assessment of the workstation
Operator involvement
Working instructions (production process operations & logistics)
Standards
Procedure to validate start of production
Visual & appearance items (boundary samples)
Procedure
Management of the boundary samples
Control devices – Calibration & Capability
Management of the devices (identification)
Capability & Calibration

39. QIP V2.0 Production Site Assessment Detailed Content #5: Training (TR)
Training organization
Needs identification / Organization
Infrastructures & skills for training activity
Training material
Safety Policy
Safety handbook
Training on safety
Employees Qualification / Flexibility Chart
Qualification process / follow up qualification status
Calibration process for the quality control activity
Training refreshment
Motivation of Staff
Process of motivation
Individual interviews

40. QIP V2.0 Production Site Assessment Detailed Content #6: Layered Process Audit (LPA)
Generic layered process audit
Procedure and working standards
Auditors training
LPA on operational activities (under manufacturing dep. responsability)
Master planning
Complete coverage with relevant frequency
Involvement of the different level of management
LPA results follow-up
Deviations record
Action plans associated
Countermeasures sheet
Continuous improvement

41. QIP V2.0 Production Site Assessment Detailed Content #7: Risk Reduction (RR)
PFMEA management
Periodical reviews
Cross-functional approach
Management of the highest risk items
Identification & analysis
Action plans follow-up
Reverse PFMEA
Real and effective risks verification at the workstation
Findings taken into account to improve process
General Risks management to guarantee manufacturing activity
Natural risks (floods, fire,…)
“Supply chain” risks (loss of energy, loss of supply)

42. QIP V2.0 Production Site Assessment Detailed Content #8: Contamination Control (CC)
Main topic: cleanliness of the process
Risk analysis on the complete shopfloor
Compliance to customer specifications when needed
Management of the sensible areas (clean rooms, paintshop,…)
Management of the foreign material in parts
Management of the dirts in parts or paint

43. QIP V2.0 Production Site Assessment Detailed Content #9: Supply Chain Management (SCM)
Management of the Tier N suppliers
Procedures to evaluate & select supplier
Cascading of the customer requirements to the Tier N
CSE tranfer
Traceability requirements
Product change management
Escalation process
Management of the single issues
Audit policy
Target definition and performance review
Bidlist and business hold
Incoming inspection process
Components Control plan
Sampling rules
records

44. QIP V2.0 Production Site Assessment Detailed Content #10: Managing Changes (MC)
All type of changes (planned & unexpected)
Procedure for monitoring product/process changes
Project management
Communication with the customer
Management of the deliverables (documents…)
Risk analysis before any change
Production Trial Run (PTR) process
Banking process
Planning
Stock build-up
Management of the long term storage
Alternative processes / Bypass processes
Identified alternative processes
Authorizing process
Specific countermeasures

45. QIP V2.0 Production Site Assessment Detailed Content #11: Maintenance (MAI)
Maintenance organization & strategy
Perimeter covered
Available ressources & facilities
Communication with manufacturing dep.
TPM strategy & implementation / Standardization Policy
Maintenance activities (planning & tracking)
Preventive maintenance master planning / Corrective maintenance activities
Working standards & technical documentation
Maintenance records (equipments diary)
L1 Maintenance management
Definition of L1 maintenance operations
Planning & follow-up
Spare parts management
Critical spare parts
Stock management & storage conditions
Management of the customer specific tools
Tools identification
Diary sheet and operation records
Storage & handling conditions

46. QIP V2.0 Production Site Assessment Detailed Content #12: Manufacturing & Material Flow Management (MMFM)
Manufacturing scheduling
Business Planning (=> fix the capacity)
Master production schedule (MPS => manage the ressources)
Daily manufacturing program
Constraints management (Bottlenecks)
Identification updated in real time
Equipment level of load permanently followed
Product Packaging
Storage areas & handling conditions
Supply of workstations
Supply organization
Improvement Process

47. QIP V2.0 Production Site Assessment Detailed Content #13: External Logistic (ELG)
Supply process
Master schedule of deliveries
Logistic protocol with TIER N
Service rate of the TIER N Supplier
Securization of the supplies
Identification of the risky supplies
Securing plans
Safety Stocks management
Shipping process
Shipping planning
Preparation process
Bogus truck
EDI & logistic Electronic Protocol

48. QIP V2.0 Production Site Assessment Detailed Content #14: Strategy / Project Management (SPM) => NSA
Used only for new supplier or for a new project
Industrial Strategy & Vision (=> 5 yrs)
Site organization & human ressources management
Site Involvment during project
Quality organization
Job desciptions
New equipments validation process
Qualification process
Project milestones
Deliverables management
Spare parts production
Specific process
“End of life” management
PR storage
Packaging design

49. QIP V2.0 Production Site Assessment Detailed Content #15: Part & Process Control (PPC) => NSA & PCPA
Management of the documents
Identification of the KPC (CSE)
Process flow diagram and link with PFMEA
Process control plan
SPC and records management
Product audits
Customer contractual Safety Stocks (Optional requirement)

50. 5 !
EXAMPLES
OF SCORING 50

51. Example Of Scoring Implementation 1/2 – LPA1
0 - No LPA Procedure / No check sheet defined.
1 - Generic check sheet defined but not covering items related to safety, manufacturing or quality
2 - Generic check sheet established but there’s no auditor training or some key items for safety, quality and manufacturing are not covered
3 - Few auditors are not trained or check sheet not defined for supporting areas
4 – Check sheet covering all items. Evidence that all auditors were trained. Check sheet defined for supporting areas

52. Example Of Scoring Implementation 2/2 – LPA2
0 - No LPA scheduled and performed
1 - LPA not performed but scheduled according to action plan or audits performed occasionally but no shcedule available
2 - LPA conducted in all shifts but no scheduled for all levels following an established frequency
3 - LPA missed for few workstations. Minor concerns related to documentation (e.g.: readability, dates, issues fix immediately are not documented…)
4 - LPA conducted according to schedule by all level (all shifts/workstations) and documented properly

53. Effectiveness 1/2 – LPA Key Element
Example Of Scoring
Effectiveness 1/2 – LPA Key Element
0: No metric in place. Supplier has no global vision of the LPA implementation and LPA results (Eg: number of late LPA,…)
1: Supplier is tracking LPA planning. He is able to know if he is late or not.
There are no metric to track results (Eg: mean nb of deviation by LPA, pareto of deviations,…)
2: Supplier is tracking LPA planning and LPA results.
Some metrics are not correctly managed (no target, heterogeneous situation from a line to another,…). Team leader is free to do or not

54. Effectiveness 2/2 – LPA Key Element
Example Of Scoring
Effectiveness 2/2 – LPA Key Element
3: Supplier is tracking LPA planning and LPA results.
Metrics are well managed (target defined, metrics standardized, action plan to reach the target…). Target not reached on some line & several road blocks (customer issues, repetitive deviation, late action plans,…)
4: Same situation
Cross check activites on the different metrics (Eg: Gap analysis between product line, between hierarchical level,…)
Stabilize Metrics & No open issue.