19-Feb-16 “"Dana Confidential Information - Those having access to this work may not copy it, use it or disclose the information contained within this work without the prior express written authorization of Dana Corporation. Unauthorized use may result in prosecution." Supply Chain Management Group Supplier APQP Training Advanced Product Quality Planning “"Dana Confidential Information - Those having access to this work may not copy it, use it or disclose the information contained within this work without the prior express written authorization of Dana Corporation. Unauthorized use may result in prosecution." GOAL : FLAWLESS LAUNCH !

“"Dana Confidential Information - Those having access to this work may not copy it, use it or disclose the information contained within this work without the prior express written authorization of Dana Corporation. Unauthorized use may result in prosecution." 19-Feb-16 2 Supply Chain Mgmt Group Supplier APQP Overview  APQP is:  A structured method for defining & executing the actions necessary to ensures a product satisfies the customer.  Supplier Led  Required of all designated component manufacturing.  Maximize the opportunity to achieve a defect free product launch and beyond.

“"Dana Confidential Information - Those having access to this work may not copy it, use it or disclose the information contained within this work without the prior express written authorization of Dana Corporation. Unauthorized use may result in prosecution." 19-Feb-16 3 Supply Chain Mgmt Group Supplier APQP Overview  Scope: To define the process through the sourcing decision of a new or modified product by a Supplier to Dana to the approval of the PPAP.  Reasons for APQP –  Cost Avoidance – Scrap, Engineering Changes  Robust Products – Durable / Reliable  Robust Processes – Stable / Capable  Clearly defined & understood launch requirements  Builds solid Supplier relations  Synergy

“"Dana Confidential Information - Those having access to this work may not copy it, use it or disclose the information contained within this work without the prior express written authorization of Dana Corporation. Unauthorized use may result in prosecution." 19-Feb-16 4 Supply Chain Mgmt Group Dana Supplier Quality Manual  5. Supplier Advance Product Quality Planning (APQP)  Suppliers are required to conform to the latest edition of the AIAG Advance Product Quality Planning Manual, located at for the introduction of a new or significantly modified production product to Dana.

“"Dana Confidential Information - Those having access to this work may not copy it, use it or disclose the information contained within this work without the prior express written authorization of Dana Corporation. Unauthorized use may result in prosecution." 19-Feb-16 5 Supply Chain Mgmt Group Supplier APQP  APQP Required  Program Launches & Select Resourcing Actions  Supplier Responsible for complete APQP Supplier Development Engineer validates all APQP Elements through documentation and objective evidence submitted in the APQP Workbook. Supplier Development on-site review only occurs for suppliers who consistently fail to submit objective evidence to the APQP timeline and/or at risk suppliers as identified by the Program Team

“"Dana Confidential Information - Those having access to this work may not copy it, use it or disclose the information contained within this work without the prior express written authorization of Dana Corporation. Unauthorized use may result in prosecution." 19-Feb-16 6 Supply Chain Mgmt Group Supplier APQP Status Report

“"Dana Confidential Information - Those having access to this work may not copy it, use it or disclose the information contained within this work without the prior express written authorization of Dana Corporation. Unauthorized use may result in prosecution." 19-Feb-16 7 Supply Chain Mgmt Group  In order to initiate APQP Activity with a Supplier the following is required –  Date the Dana LOI or Purchase Order Was issued  Date The Dana Tooling Order was or will be issued.  Prototype Sample quantities and timing.  Requested PPAP Date  WITHOUT THIS INFORMATION SUPPLIER DEVELOPMENT CANNOT INITIATE THE APQP ACTIVITY.

19-Feb-16 “"Dana Confidential Information - Those having access to this work may not copy it, use it or disclose the information contained within this work without the prior express written authorization of Dana Corporation. Unauthorized use may result in prosecution." Supply Chain Management Group Supplier APQP Elements What is the requirement?

“"Dana Confidential Information - Those having access to this work may not copy it, use it or disclose the information contained within this work without the prior express written authorization of Dana Corporation. Unauthorized use may result in prosecution." 19-Feb-16 9 Supply Chain Mgmt Group Supplier APQP Status Report Elements

“"Dana Confidential Information - Those having access to this work may not copy it, use it or disclose the information contained within this work without the prior express written authorization of Dana Corporation. Unauthorized use may result in prosecution." 19-Feb Supply Chain Mgmt Group Supplier APQP Status Report Elements

“"Dana Confidential Information - Those having access to this work may not copy it, use it or disclose the information contained within this work without the prior express written authorization of Dana Corporation. Unauthorized use may result in prosecution." 19-Feb Supply Chain Mgmt Group Supplier APQP Status Report Elements

“"Dana Confidential Information - Those having access to this work may not copy it, use it or disclose the information contained within this work without the prior express written authorization of Dana Corporation. Unauthorized use may result in prosecution." 19-Feb Supply Chain Mgmt Group Supplier APQP Status Report Elements

“"Dana Confidential Information - Those having access to this work may not copy it, use it or disclose the information contained within this work without the prior express written authorization of Dana Corporation. Unauthorized use may result in prosecution." 19-Feb Supply Chain Mgmt Group Supplier APQP Status Report Elements

“"Dana Confidential Information - Those having access to this work may not copy it, use it or disclose the information contained within this work without the prior express written authorization of Dana Corporation. Unauthorized use may result in prosecution." 19-Feb Supply Chain Mgmt Group Supplier APQP Status Report Elements

“"Dana Confidential Information - Those having access to this work may not copy it, use it or disclose the information contained within this work without the prior express written authorization of Dana Corporation. Unauthorized use may result in prosecution." 19-Feb Supply Chain Mgmt Group Supplier APQP Status Report Elements

19-Feb-16 “"Dana Confidential Information - Those having access to this work may not copy it, use it or disclose the information contained within this work without the prior express written authorization of Dana Corporation. Unauthorized use may result in prosecution." Supply Chain Management Group Supplier APQP Status Report Elements What are we looking for as Objective Evidence

“"Dana Confidential Information - Those having access to this work may not copy it, use it or disclose the information contained within this work without the prior express written authorization of Dana Corporation. Unauthorized use may result in prosecution." 19-Feb Supply Chain Mgmt Group Objective Evidence Required – Elements 1 - 3

“"Dana Confidential Information - Those having access to this work may not copy it, use it or disclose the information contained within this work without the prior express written authorization of Dana Corporation. Unauthorized use may result in prosecution." 19-Feb Supply Chain Mgmt Group Objective Evidence Required – Elements 4 - 7

“"Dana Confidential Information - Those having access to this work may not copy it, use it or disclose the information contained within this work without the prior express written authorization of Dana Corporation. Unauthorized use may result in prosecution." 19-Feb Supply Chain Mgmt Group Objective Evidence Required – Elements

“"Dana Confidential Information - Those having access to this work may not copy it, use it or disclose the information contained within this work without the prior express written authorization of Dana Corporation. Unauthorized use may result in prosecution." 19-Feb Supply Chain Mgmt Group Prototype Sample Inspection Requirements All prototype samples furnished by suppliers shall conform to the following requirements for their applicable Dana Product Group. Commercial Vehicle & Light Vehicle Driveline Technologies - Each part is to be serialized on a non critical surface (consult with the applicable Engineering Group for non critical surface identification). The preferred identification is Part Number and Consecutive Dash Number. (Example: Part Number -1, -2, etc....). An inspection report is to be furnished for each serialized part for all critical/significant dimensions as designated on either the Dana Drawing or Engineering Specification. At minimum, the inspection report shall include - date inspected, Inspector's signature, part & serial dash number, revision level, part name, purchase order number, part dimension/tolerance/actual dimension & the Gage R&R reports for all inspection tools utilized( for CMM submit a copy of the current Calibration Certificate).

“"Dana Confidential Information - Those having access to this work may not copy it, use it or disclose the information contained within this work without the prior express written authorization of Dana Corporation. Unauthorized use may result in prosecution." 19-Feb Supply Chain Mgmt Group Prototype Sample Inspection Requirements The inspection report shall be in pdf file format and named with the Dana Program, Part Number and Date. (Example: Program Name_Part Number_ Month- Day-Year.pdf). The inspection report shall be shipped with the prototype samples. Prototype samples received without the accompanying inspection report will be rejected. Any Metallurgical/Heat Treat/Physical Test results available for the prototype parts should be included with the inspection report furnished. Any additional inspection requirements, outside of that listed above, will be delineated on the prototype quote request and listed on the prototype purchase order. In all cases prototype samples that do not conform to the Dana Drawing and/or Specifications shall not be shipped prior to receipt of an approved Engineering Change or Deviation. A copy of the approval document shall be included with the prototype part shipment.

“"Dana Confidential Information - Those having access to this work may not copy it, use it or disclose the information contained within this work without the prior express written authorization of Dana Corporation. Unauthorized use may result in prosecution." 19-Feb Supply Chain Mgmt Group Objective Evidence Required – Elements

“"Dana Confidential Information - Those having access to this work may not copy it, use it or disclose the information contained within this work without the prior express written authorization of Dana Corporation. Unauthorized use may result in prosecution." 19-Feb Supply Chain Mgmt Group Objective Evidence Required – Elements

“"Dana Confidential Information - Those having access to this work may not copy it, use it or disclose the information contained within this work without the prior express written authorization of Dana Corporation. Unauthorized use may result in prosecution." 19-Feb Supply Chain Mgmt Group Objective Evidence Required – Elements

“"Dana Confidential Information - Those having access to this work may not copy it, use it or disclose the information contained within this work without the prior express written authorization of Dana Corporation. Unauthorized use may result in prosecution." 19-Feb Supply Chain Mgmt Group Objective Evidence Required – Elements

“"Dana Confidential Information - Those having access to this work may not copy it, use it or disclose the information contained within this work without the prior express written authorization of Dana Corporation. Unauthorized use may result in prosecution." 19-Feb Supply Chain Mgmt Group Additional Dana PPAP Requirements

“"Dana Confidential Information - Those having access to this work may not copy it, use it or disclose the information contained within this work without the prior express written authorization of Dana Corporation. Unauthorized use may result in prosecution." 19-Feb Supply Chain Mgmt Group Safe Launch The purpose of the Safe Launch Plan is to protect Dana Facilities from receiving quality non-conformances during critical new product launch periods and validate the supplier's Production Control Plan during volume production runs. It is in addition to all normal process inspections and evaluations outlined in the Production Control Plan and is a post processing, off-line, separate and independent from the normal manufacturing process check. Use of any in process inspection/containment stations requires the prior approval of Dana. The Safe Launch Plan shall be in effect for a minimum of 90 days or the first 5 supplier production runs, whichever is longer, from the start of PPAP Approved part shipments to the receiving Dana facility. If any discrepant parts are received by a Dana facility during the Safe Launch period it shall be extended for a timeframe to be determined by the receiving Dana facility.

“"Dana Confidential Information - Those having access to this work may not copy it, use it or disclose the information contained within this work without the prior express written authorization of Dana Corporation. Unauthorized use may result in prosecution." 19-Feb Supply Chain Mgmt Group Safe Launch Any non-conformances discovered at a Dana facility during the Safe Launch period require immediate and irreversible corrective action within 72 hours of notification. In addition, any non-conformances discovered at a Dana facility requires supplier, or supplier designated, representation on site at the Dana facility to initiate sorting and containment actions, back through their organization, within 24 hours.

“"Dana Confidential Information - Those having access to this work may not copy it, use it or disclose the information contained within this work without the prior express written authorization of Dana Corporation. Unauthorized use may result in prosecution." 19-Feb Supply Chain Mgmt Group Safe Launch The Safe Launch Plan shall include 100% evaluation of -- All Dana designated Critical and/or Significant Characteristics (Variable) All Customer attachment( pass through) characteristics identified by Dana Engineering (Attribute) All Significant Characteristics to the process identified by the supplier (Variable) Verification that the packaging and labeling conforms to the Supplier Packaging Specification form approved by the receiving Dana facility. (Attribute)

“"Dana Confidential Information - Those having access to this work may not copy it, use it or disclose the information contained within this work without the prior express written authorization of Dana Corporation. Unauthorized use may result in prosecution." 19-Feb Supply Chain Mgmt Group Safe Launch Data from safe launch inspections shall be forwarded to both the Dana Receiving Plant & for each production lot shipped, so it is received prior to the production lot. Product shipped to Dana that has been evaluated in the Safe Launch process shall be identified by means of a Green Sticker, attached to every individual carton, signed by the person accountable to perform this function. Failure to implement a robust Safe Launch Process, containing these requirements as a minimum, will result in a Supplier being placed on Restricted Shipping 2 and other possible consequences.

“"Dana Confidential Information - Those having access to this work may not copy it, use it or disclose the information contained within this work without the prior express written authorization of Dana Corporation. Unauthorized use may result in prosecution." 19-Feb Supply Chain Mgmt Group Customer Attachment Points Customer Attachment Points: Customer Attachment Points will be communicated to suppliers by designation, ( ), on Dana Product Drawings. Customer Attachment Points require Poke-A-Yoke at the source of manufacture. If Poke-A-Yoke cannot be achieved an alternative control plan method must be proposed by the supplier and be approved by Dana.

“"Dana Confidential Information - Those having access to this work may not copy it, use it or disclose the information contained within this work without the prior express written authorization of Dana Corporation. Unauthorized use may result in prosecution." 19-Feb Supply Chain Mgmt Group