Early Production Containment (GP-12)

1.0 SCOPE This procedure applies to all suppliers required to use the Production Part Approval Process (PPAP). It is to be used for all pre-production and production requirement that requires the Production Part Approval Process. GP-12 should not be used for carry over quality concerns; they should be adRemy Inc.essed using the Controlled Shipping Procedure. 2.0 DEFINITIONS and PURPOSE The purpose of GP-12 is to document the suppliers efforts to gain control of its processes during start-up and acceleration, so that any quality issues that may arise are quickly identified and correct at the supplier's location and not at the Remy Inc. customers manufacturing location. GP-12 Early Production Containment requires a Pre-Launch Control Plan, a significant enhancement to the suppliers production control plan, which will raise the confidence level to ensure that all products shipped initially, will meet Remy Inc.s expectations. The pre-launch control plan will also serve to validate the production control plan. The Pre-Launch Control Plan should take into consideration all known critical conditions of the part, as well as potential areas of concern identified during the Production Part Approval Process. GP-12 Early Production Containment serves to proceduralize the Pre-Launch Control Plan referred to in section 3.7 of the Chrysler, Ford, GM Advanced Product Quality Planning and Control Plan Reference Manual. Note: This procedure does not provide authorization to ship nor is it a shipping schedule 3.0 SUPPLIER RESPONSIBILITY The Supplier must do the following: A. Establish a containment process that contains the following elements: 1. Identification of the person responsible for the containment process. 2. Development of a Pre-Launch Control Plan consisting of additional control, inspection audits and testing to identify non-conformances during the production process. Depending on the dominant factor in the production process (set-up, machinery, fixture, tooling, operator, material/components, preventative maintenance, climate) additional controls could include: Increased frequency/sample size of receiving, process, and or shipping inspections Mandated sub-supplier containment and or sup-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 defects Increased involvement and visibility of top management 3. Prompt implementation of containment/correction when non-conformance are discovered 4. Identification of the measurement equipment and data collection devices/activities to be used, where applicable Document the Pre-Launch Control Plan, including functional testing and error proofing, using the Control Plan format referenced in the 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 PreLaunch 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. B. Utilize the Early Production Containment plan for all pre-production requirements (e.g., pilot, lead unit build) and for the production ship quantity or duration specified by the procuring division or until the Production Control Plan is validated, whichever occurs Later. Typically, the specified production quantity or duration is intended to reflect the customers acceleration plan to full production rate. If not specified by the procuring division, the production ship quantity is a minimum of 1200 pieces for each Remy Inc. customer plant, in addition to any pre-production quantities required. To indicate compliance with GP-12 requirements, attach to each shipping label a green dot signed by a designated senior management representative, typically the highest level manager at the production facility. (The green dot should have a diameter of 1.25 to 2 inches.)

C.

Early Production Containment (GP-12)

Page 1 of 2

Early Production Containment (GP-12)

4.0 EXIT CRITERIA Supplier will be eligible to exit Production Containment on its own accord after meeting the criterion listed below. If the supplier is unable to meet the exit criteria, or the suppliers GP-12 plan continues to identify nonconformances, the supplier is expected to continue the necessary containment measures to insulate the Customer Plant up to the time when the quality concerns have been resolved to the satisfaction of both the Supplier and the Customer and the Suppliers Production Control Plan is validated. A. B. C. Ship the number of pieces or for the duration specified by the procuring division with no discrepancies or customer plant PR/Rs, and supplier can self from the Early Production Containment Process If supplier does not meet self exit criteria, then, to exit GP-12, all PR/Rs must be closed by the Customer Plant In the event the self exit criteria has been met, but the GP-12 plan continues to identify nonconformances, the GP-12 plan must be kept in place until process controls and capabilities have proven effective and the Production Control Plan is validated

Early Production Containment (GP-12)

Page 2 of 2