ThyssenKrupp
Metalrgica
Campo
Limpo

SupplierManual

Revision
03

May,
2011

ThyssenKrupp

ThyssenKrupp
Metalrgica
Campo
Limpo

FOREWORD




As
the
global
competition
for
leadership
and
new
markets
becomes
increasingly
tough
companies

are
forced
to
turn
swiftly
to
a
new
businesses
paradigm
consisting
in
offering
world-class
products,prices,deliveryterms,services,andtechnology.




The
companies
of
the
ThyssenKruppMetalrgicaCampoLimpoLtda.Group,
since
they
operate

in
such
a
context,requiretheirsupplierstocomplywithContinuousImprovementpracticesas
a
way
of
ensuring
participation
in
the
industry
and
also
the
development
of
new
business
in
the

whole
production
chain.





These
new
performance
standards
demanded
by
today's
industry
imply
in
as
much
the

development
as
the
improvement
of
a
QualitySystem
which
will
help
our
suppliers
to
attain
their

goals.





There
fore,
we
are
addressing
this
Manual
as
a
basic
guide
line
that
will
orientate
the
future

relationship
between
our
organizations.
Following
these
Instructions
your
company
will
be
ranked
as

one
of
the
preferential
suppliers
for
future
businesses
with
ThyssenKrupp.





Should
any
question
arise
from
the
content
of
this
Manual
please
do
not
hesitate
to
contact
us.

 MARCOSDESF.MACEDO 


MARCIOZILLETTI
Quality
andProduction
Systems
Manager


































Supply
Chain
Manager























ThyssenKrupp Metalrgica Campo Limpo Ltda., Av. Alfried Krupp, 1050, Campo Limpo Paulista SP, 13231-900, Brazil
Phone : (+55 11) 4039-9000 - Fax: (+55 11) 4039-1127 Internet : www.thyssenkrupp-metalurgica.com
CNPJ : 50.942.135/0001-44

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ThyssenKrupp
Metalrgica
Campo
Limpo

TABLEOFCONTENTS


1.
Purpose
...................................................
5

2.
Application...................................................
5

3.
Supplier
requirements
.........................................................................








3.1.
Safety...............................................................................................








3.2.
Environment
......................................................................................








3.3.
Compliance
with
legislated
requirements
...............................................








3.4.
Quality
system
...................................................................................








3.5.
Quality
goals
...........................................................................

6

6

6

6

6

7

4.
Communication
procedures/homologation
of
new
suppliers.............................

4.1.
Consultation/quotation
.........................................................................
4.2.
Requirements
and
clarifications
of
documents
from
TKMCL.......................






4.3.
Ensuring
viability
before
quotation
preparation
..............................






4.4.
Issuing
quotations
...............................................................................

8

8

8

8

8

5.
Approval
of
new
suppliers
..........................................................................








5.1.
Suppliers
pre-defined
by
customers
......................................................








5.2.
Approval
of
new
suppliers....................................................................
















5.2.1.
Suppliers
of
raw
materials
(steel/blocks)
and
components
..............








5.3.
Suppliers
for
the
TKMCL
molding
area
...................................................

9

9

9

9

9

6.
Requirements
for
logistics
and
packaging
....................................................








6.1.
Supplier
logistic
concept
.....................................................................








6.2.
Prompt
response
to
problems
..............................................................








6.3.
Material
delivery
schedules
..............................................................















6.3.1.
Electronic
Data
Interchange
-
EDI
.................................................















6.3.2.
Planning
rules
...........................................................................















6.3.3.
Penalties
..................................................................................















6.3.4.
Production
capacity
increase
.......................................................















6.3.5.
Advanced
Shipping
Notice
-
ASN
.................................................








6.4.
Packaging
.........................................................................................















6.4.1.
General
requirements
.................................................................















6.4.2.
Package
identification
labels
.......................................................


























6.4.2.1.
Specifications
for
labels
..............................................








6.5.
Shipping/
transport
.............................................................................

6.6.
Logistic
system
assessment
.........................................................

10

10

10

10

10

10

11

11

11

11

11

11

11

12

12

6.7.
Warehouse
evaluation
.................................................................
12




7.
Development
of
products
and
processes
(raw
material
and
components)
.........







7.1.
Suppliers
development
in
conjunction
with
the
final
customers
..................







7.2.
Capability
requirements
for
special
characteristics
...................................







7.3.
Requirements
for
traceability
and
document
control
.................................

13

13

13

14

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ThyssenKrupp
Metalrgica
Campo
Limpo

7.4.
Data
entering
in
the
IMDS
-
International
Data
System
..............................








7.5.
Submission
of
samples
.......................................................................
















7.5.1.
Prototypes
...............................................................................
















7.5.2.
Production
Approval
Procedure
-
PPAP
samples
...........................
















7.5.3.
Readiness
audit
.......................................................................
















7.5.4.
Capability
assessment
-
Run
at
Rate
..........................................








7.6.
Audits
of
products
and
processes
.....................................................








7.7.
Inspection
of
lay-outs
and
functional
tests
.............................................








7.8.
Requirements
for
special
processes
......................................................
















7.8.1.
Heat
treat
process
....................................................................
















7.8.2.
Superficial
treatments
process....................................................

14

14

14

14

15

15

15

15

16

16

16

8.
Processes
and
products
changes
................................................................
17



9.
Approving
deviations
/
reworks
....................................................................
17

10.
Assessment
system
for
components
and
raw
materials
suppliers.....................








10.1.
Supplier
assessment
system
goals
.....................................................


















10.1.1.
Quality
Performance
(QP)......................................












10.1.1.1.
QP
calculation
method
for
raw
material
and
component

suppliers..






























10.1.2.
Quality
System
Rate
(QSR)..............................................































10.1.2.1.
VDA-6.3
process
audits
x
(QSR).................................


















10.1.3.
Delivery
Performance
(DP)......................................................


















10.1.4.
Customer
Care
(CC)..................................................


















10.1.5.
Global
Supplier
Performance
(GSP)
..........................................








10.2.
Assessment
of
the
Global
Supplier
Performance
(GSP)...........................

18

18

19



19

21

21

22

23

23

24

11.
Assessment
system
for
suppliers
of
machining,
mounting,
and
mold
heat
treat

services
of
and
forging
accessories
.........................................................







11.1.
Quality
Performance
(QP)
calculation
method
for
molding
area
suppliers







11.2.
Quality
Supply
Documents..................................................................







11.3.
Heat
treatment
assessment.................................................................

25

25

25

25

12.
Supply
problems
.........................................................................
26







12.1.
Containment
plan
..........................................................................
26







12.2
Cost
recovery
....................................................................................
27

13.
Supportive
documents
...............................................................................
27

14.
Attachments
............................................................................................
28

15.
List
of
reviews
..........................................................................................
38

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ThyssenKrupp
Metalrgica
Campo
Limpo

1.Purpose

The
purpose
of
this
Manual
is
to
establish
a
system
for
assessing,
selecting,
and
developing

suppliers.



The
system
must
ensure
both
the
quality
and
the
regularity
of
suppliers
with
respect
to
meeting
our

technical
and
commercial
requirements.





2.Application

The
system
described
in
this
Manual
applies
to
all
companies
supplying
goods
and
services
to

ThyssenKrupp
Metalrgica
Campo
Limpo
Ltda.,
ThyssenKrupp
Metalrgica
Santa
Luzia
Ltda.,
and

ThyssenKrupp
Metalrgica
de
Mxico
S.A.
de
C.V.
in
the
following
areas:




Steel
for
forging
and
manufacturing
die
blocks;


Suppliers
of
components;


Suppliers
of
product-related
services;


Equipment
gauging
service
suppliers;


Suppliers
of
services
of
machining,
assembling
and
heat
treatment
of
dies
and
forging

accessories;


Suppliers
of
services
of
parts
selection,
rework,
and
inspection.

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ThyssenKrupp
Metalrgica
Campo
Limpo

3.Supplierrequirements

The
ratification
of
the
specific
requirements
to
suppliers,
ThyssenKrupp
expectations
and
any

awards
to
suppliers
with
an
emphasis
on
global
performance,
are
presented
and
discussed

periodically,
preferably
every
two
years
through
workshops
suppliers.


3.1.Safety

Suppliers
are
recommended
to
establish
a
safety
program
that
demonstrates
continuous
and

efficient
efforts
towards
the
reduction
of
accident
rates.
Preferably,
suppliers
should
have
in
place
a

system
that
complies
with
OSHAS
18001
standard.


3.2.Environment


Suppliers
are
recommended
to
continuously
and
efficiently
improve
their
environmental
condition

based
on
international
standards
for
environmental
management,
such
as
ISO
14001
standard.



3.3.Compliancewithlegislatedrequirements


Suppliers
must
ensure
compliance
with
all
legislated
requirements
applicable
to
their
respective

countries
as
well
as
the
specific
requirements
set
forth
by
both
the
Brazilian
law
and
ThyssenKrupp

internal
rules
concerning
the
safety
of
products,
environmental
protection,
wage
rates,
working

periods,
ban
of
children
labor,
and
occupational
health
and
safety.


3.4.Qualitysystem


ThyssenKrupp
Group
expects
all
suppliers
to
implement
and
apply
a
quality
management
system

according
to
the
requirements
of
ISO/TS
16949
-
2009
standard.



The
efficiency
of
the
quality
management
system
will
be
evident
from
the
following:

-
Continuous
and
proven
improvement
of
processes,
systems,
and
products;

-
Supply
quality;

-
Supply
fidelity;

-
Efficacy
and
readiness
in
taking
corrective
actions;

-
Communication
in
all
levels;

-
Proper
execution
of
new
and
changed
projects
as
regards
the
project
content
and
deadlines.



By
the
quality
management
system,
actions
must
be
oriented
to
the
common
objective
of
zero

defects.

ThyssenKrupp
reserves
the
right
to
either
audit
the
suppliers
quality
management
system,

system/processes
and
products
by
itself
or
make
arrangements
for
such
audits
to
be
carried
out
by

third
parties
upon
prior
notice
to
the
supplier.

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ThyssenKrupp
Metalrgica
Campo
Limpo

The
minimum
requirements
respecting
the
Quality
System
for
the
supply
of
products
and
services

are
as
follows:



SupplyArea
-
Raw
material
for
forging
and
steel
for
tooling

-
Components
and

Product
service
suppliers

-
Calibration
service
suppliers

-
Mold
service
suppliers

-
Suppliers
of
services
of
part
selection,
rework,and



inspection

Requirements
ISO
9001
and/or

ISO
TS
16949

ISO
IEC
17025

ISO
9001
or
approval
after

assessment

Self-assessment
or

assessment
by
TKMCL

The
supplier
is
responsible
for
complying
with
and
providing
a
certification
that
their
Quality
Systems

meet
all
the
foregoing
requirements.
The
certification
of
the
quality
management
systems
must
be

approved
by
an
accredited
certification
entity.

The
supplier
has
the
responsibility
top
keep
up
dated
the
certification
information
at
ThyssenKrupp

purchase
area.


3.5.Qualitygoals

As
for
the
measurement
and
assessment
of
the
obtained
quality,
the
supplier
must
define
both

internal
and
external
objectives
related
to
quality.
In
this
context,
the
following
minimum

requirements
apply:



-

Establishment
of
internal
and
external
rates
of
nonconformities
expressed
in
PPM;



-
The
ThyssenKrupp
and
the
supplier
will
agree
upon
quality
objectives
annually
through
to
quality

agreement
based
to
the
products
supplied.
The
aim
will
be
to
achieve
zero
defects
in
the
whole

production
chain.



The
objectives
include
logistic,
commercial,
and
quality
requirements.
If
the
established
objectives

are
not
met
then
an
action
plan
must
be
taken
by
the
supplier
whenever
necessary.

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ThyssenKrupp
Metalrgica
Campo
Limpo

4.Communicationprocedures/homologationofnewsuppliers


4.1.Consultation/quotation


The
ThyssenKrupp
Supply
department
is
responsible
for
contacting/requesting
price
quotations

along
with
relevant
documents
and
information
from
the
supplier.



4.2.RequirementsandclarificationsofdocumentsfromTKMCL


Certified
Suppliers
of
raw
materials
or
components
as
per
paragraph
3.4
will,
receive
relevant
data

and
information
(drawings,
chemical
compounds
of
materials,
annual
volume,
etc.)
in
order
to

prepare
the
offers.
If
any
data
and/or
information
need
clarifications
or
adjustments,
the
supplier
will

be
responsible
for
promptly
requesting
clarifications
and/or
adjustments
from
ThyssenKrupp.



All
documents
and
information
provided
by
ThyssenKrupp
is
and
will
continue
to
be
Thyssenkrupp

proprietary
and
must
be
treated
by
suppliers
as
confidential
documents.
Suppliers
are
not

authorized
to
release
such
documents
to
third
parties
without
previous
written
authorization
by

ThyssenKrupp.



4.3.
Ensuringviabilitybeforethequotationpreparation


Suppliers
are
responsible
for
ensuring
the
viability
of
supplying
the
product
offered,
including
the

technical
viability
(if
the
product
is
possible
to
be
produced
in
serial
conditions,
according
to

specifications/standards
to
the
process
capability
required)
as
well
as
the
aspects
involving

packaging,
logistic,
quality,
terms,
costs,
etc.



4.4 .Issuingquotations


Once
a
quotation
is
received
by
ThyssenKrupp
and
after
its
submission
to
analysis
against
the

quotations
from
other
companies
as
for
the
best
offer
to
be
determined,
ThyssenKrupp,
at
its

exclusive
discretion,
may
schedule
a
visit
to
the
prospective
suppliers
plant
to
see
its
production

process.
The
assessment
of
the
conditions
is
performed
by
the
ThyssenKrupp
Quality
and
Supply

areas.

















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ThyssenKrupp
Metalrgica
Campo
Limpo

5.Approvalofnewsuppliers


5.1.Supplierspre-definedbycustomers


Suppliers
defined
by
ThyssenKrupp
customers
must
meet
all
the
requirements
set
forth
by
those

customers
and
are
exempted
from
previous
assessment
since
they
have
already
been
approved
by

a
ThyssenKrupp
customer.
However,
these
suppliers
must
always
comply
with
all
requirements

established
in
this
Manual.

5.2.Approvalofnewsuppliers


Suppliers
evaluated
favorably
by
the
ThyssenKrupp
Quality
and
Supply
areas
are
requested
to

provide
product
samples
so
that
ThyssenKrupp
may
submit
the
final
product
for
approval
to
the

customer.

Such
request
is
submitted
by
the
ThyssenKrupp
Sales
and
Quality
departments.



Purchase
orders
along
with
the
relevant
monthly
schedule
(Delivery
Schedule)
is
only
issued
after

the
customer
has
been
homologated
/
validated
by
ThyssenKrupp
Customer.
If
the
customer
refuses
to
accept
or
validate
a
new
source,
the
development
will
be
immediately
canceled.




5.2.1.Suppliersofrawmaterials(steel/blocks)andcomponents


New
suppliers
may
be
submitted
to
a
new
pre-assessment
through
the
completion
of
the
Supplier

Assessment

Die
shop
in
order
to
obtain
an
authorization
to
start
up
the
supply
activities.
In
this

case,
either
a
new
on-site
assessment
is
carried
out
by
ThyssenKrupp
or
the
supplier
is
requested
to

complete
a
self-assessment
questionnaire,
depending
on
the
complexity
of
the
product
to
be

developed.



The
new
supplier
will
be
considered
apt
to
start
up
the
development
of
the
process
or
product
only

after
having
received
a
favorable
answer
to
its
self-assessment
questionnaire
from
the

ThyssenKrupp
Quality,
Supply
and
Logistic
areas.



The
supplier
must
comply
with
all
requirements
of
the
quality
system
as
per
paragraph
3.4.

Suppliers
of
components
and
raw
materials
that
fail
to
comply
with
the
quality
system
requirements

is
only
authorized
to
proceed
with
the
supply
activities
after
a
new
audit
has
been
carried
out
that

shows
the
appropriate
qualification
rates
according
to
the
VDA
6.3
standards.


5.3.SuppliersfortheTKMCLmoldingarea


The
supplier
is
submitted
to
a
new
pre-assessment
before
receiving
the
authorization
to
supply.
The

assessment
is
carried
out
in
the
prospective
supplier's
plant
with
the
presence
of
representatives
of

the
ThyssenKrupp
Quality,
Mold
Production
and
Supply
departments.




The
supplier
is
considered
approved
to
supply
only
after
such
assessment
and
analysis
have
been

finished
and
a
favorable
answer
has
been
awarded
from
all
such
areas.








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ThyssenKrupp
Metalrgica
Campo
Limpo

6.Requirementsforlogisticsandpackaging


6.1.Supplierlogisticconcept


ThyssenKrupp
tends
to
develop
partnership-like
relationships
with
suppliers
and
does
believe
that

the
key
for
success
of
such
relationship
is
based
on
open
communications,
continuous

improvement,
and
teamwork.
As
to
achieve
such
a
goal,
we
leave
it
to
our
suppliers
the
task
of

creating
and
maintaining
mutual
benefits
and
a
supportive
environment
where
both
the
supplier
and

the
customer
are
able
to
succeed.






6.2.Promptresponsetoproblems


ThyssenKrupp
requires
from
its
partners-suppliers
a
list
of
contacts
including
at
least
the
name
of

the
employee
vested
with
authority
to
deal
with
matters
relative
to
the
ThyssenKrupp
supply
chain

and
that
may
be
located
at
any
time.


6.3.Materialdeliveryschedules


6.3.1.ElectronicDataInterchange-EDI



ThyssenKrupp
follows
the
recommended
business
practices
for
the
electronic
data
interchange

(EDI),
and
has
a
goal
that
the
suppliers
receive
the
material
delivery
schedules
using
this
system.

Therefore
ThyssenKrupp
recommend
theirs
suppliers
to
adequate
theirs
systems
to
achieve
this

common
objective.




6.3.2.Planningrules



ThyssenKrupp
compromise
in
making
its
material
delivery
schedules
available
on
weekly
or

fortnightly
basis
(as
established
according
to
with
each
supplier),
thereby
providing
a
planning
view

of
90
days
in
advance.
All
schedules,
adjustments
and
forecasts
will
be
sent
according
the
material

agreement.
Suppliers
are
responsible
for
notifying
the
ThyssenKrupp
material
planner
on
any

problem
including
the
failure
to
receive
the
material
delivery
schedule
on
the
dates
agreed.


Increase
or
decrease
of
the
quantities
of
deliverable
items
as
per
the
schedules
must
first
be

mutually
agreed
upon
by
ThyssenKrupp
and
the
supplier.


Lot/batch
size
/
minimum
delivery
quantity:
as
established
in
the
material
agreement.



Minimum
Stock
Level:
Suppliers
are
recommended
to
maintain
a
minimum
stock
level;
inventory

levels
must
be
mutually
agreed
by
the
parties
in
the
material
agreement.
Suppliers
are
expected
to

maintain
a
minimum
stock
level
available
in
their
plants
to
meet
any
demand
variations
from

ThyssenKrupp
customers.
Stock
levels
must
be
reviewed
every
6
months
and
adjusted
accordingly.


Fluctuations:
Demands
from
ThyssenKrupp
customers
may
vary
in
short
periods.
Whenever
the

minimum
stock
level
is
improperly
low
to
meet
a
sudden
increase
in
the
planned
quantities,
the

suppliers
must
promptly
contact
the
ThyssenKrupp
material
planner
so
that
the
proper
action
plan

may
be
prepared.


The
Suppliers
compromise
to
delivery
the
orders
firmed
with
the
right
quantity
at
the
scheduled

dates.
If
the
supplier
needs
any
changes,
its
mandatory
a
previous
authorization
from

ThyssenKrupp
material
planning
area.

The
supplying
that
doesnt
match
the
planning
requirements

will
not
be
received
and
the
total
involved
costs
will
be
supplier
responsibility.

10/38

ThyssenKrupp
Metalrgica
Campo
Limpo

6.3.3.Penalties

ThyssenKrupp
will
not
be
responsible
for
covering
any
additional
costs
associated
with
any

suppliers
operational
failures
to
supply
according
to
the
established
schedules.
ThyssenKrupp

reserves
the
right
to
debit
from
the
account
of
the
relevant
supplier
any
costs
connected
with
such

failure
to
supply
as
programmed
as
defined
on
item
12.2.


6.3.4.Productioncapacityincrease


As
the
business
volume
of
ThyssenKrupp
growths
further,
reviews
of
the
production
capacity
of

suppliers
will
be
required.




6.3.5.AdvancedShippingNotice-ASN


ThyssenKrupp
follows
the
recommended
business
practices
for
the
electronic
data
interchange
(ASN

EDIFACT/RND
Standard),
and
has
a
goal
that
the
suppliers
send
the
electronic
notification
using
this

system.
Therefore
ThyssenKrupp
recommend
theirs
suppliers
to
adequate
theirs
systems
to
achieve

this
common
objective.


The
failure
to
send
ASN
or
to
send
it
incorrectly
will
have
a
negative
impact
on
the
supplier's

performance
indicators.



6.4.Packaging


6.4.1.Generalrequirements


Products
must
be
packed
in
such
a
way
as
to
provide
appropriate
product
protection
against

subsequent
degradation
while
the
product
is
still
under
the
suppliers
responsibility
or
is
either
being

transported
to
ThyssenKrupp
or
already
stored
in
the
ThyssenKrupp
premises.

The
completion
of
the
form
"Package
Data
Sheet"
(Attachment
1)
is
mandatory
for
the
approval

process
and
the
completed
form
must
be
submitted
before
its
implementation.
Any
change
required

after
the
approval
awarding
will
cause
the
form
to
be
reviewed
and
a
new
approval
must
be

awarded.

Due
to
environmental
requirements,
all
of
the
ThyssenKrupp
suppliers
must
comply
with

phytosanitary
measures
(NIMF15),
which
bans
the
use
of
any
raw
wood
in
packages
(pallets
or

boxes).

Note:
It
is
the
intention
of
ThyssenKrupp
that
all
its
suppliers
operate
with
packages
according
to

these
determinations.



6.4.2.Packageidentificationlabels


Packages
must
be
identified
with
labels
so
as
to
provide
full
traceability
of
ThyssenKrupp
products

from
the
time
the
product
leaves
the
supplier's
plant
up
to
its
the
delivery
for
manufacturing.


6.4.2.1.Specificationsforlabels


Documents
containing
the
rules
for
the
development,
approval,
and
implementation
of
labels
with

Bar
Code
from
ThyssenKrupp
can
be
requested
to
ThyssenKrupp.

11/38

ThyssenKrupp
Metalrgica
Campo
Limpo

Note:
It
is
the
intention
of
ThyssenKrupp
that
all
its
suppliers
operate
with
labels
according
to
the

applicable
specifications.



6.5.Shipping/transport


All
shipping
procedures
must
be
carried
out
by
shippers
and
the
transport
routes
are
determined
by

ThyssenKrupp.


Shipping
instructions
are
defined
in
the
Material
Agreement.



Transport
terms
will
be
considered
as
per
the
Trade
Agreement.




6.6.Logisticsystemassessment



The
ThyssenKrupp
recommends
that
all
suppliers
of
raw
material
and
components
make
sure
that

their
new
logistic
system
complies
with
the
MMOG-LE
(Master
Global
Material
Management

Operations
Guidelines/Logistics
Evaluation)
system
and
establish
action
plans
for
items
having

direct
impact
on
the
operation
and
the
ThyssenKrupp
specific
requirements.



ThyssenKrupp
reserves
the
right
to
audit
the
suppliers
logistic
processes.


6.7.WarehouseEvaluation
Companies
providing
services
for
storage,
inventory
management
and
dispatch
of
ThyssenKrupp

parts
will
be
audited
every
3
years
to
ratify
the
quality
of
the
processes
and
conditions
of
facilities

and
equipment
used.



For
this
evaluation
will
be
used
the
form
"Warehouse
Processes
Audit"
(Attachment
10).

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ThyssenKrupp
Metalrgica
Campo
Limpo

7.Developmentofproductsandprocesses(rawmaterialandcomponents)


Development
of
products
must
follow
the
requirements
defined
by
AIAG
in
its
manuals,
updated

versions:




Advanced
Product
Quality
Planning
(APQP);


Product
Production
Approval
Process
(PPAP);


Failure
Mode
and
Effect
Analysis
(FMEA),
and
all
other
AIAG
manuals
must
be
used
as
reference.


As
for
steel
suppliers,
the
submission
of
PPAP
is
limited
to
the
manufacturing
process,
material
and

plant,
irrespective
of
the
material
gauge
involved.


As
for
new
or
modified
items,
the
supplier
must
show
the
APQP
schedule
contemplating
the
actions

needed
for
complying
with
the
deadlines,
supplying
samples,
and
starting
up
the
production.

Supplier
must
submit
new
samples
and
relevant
PPAP
documents
for
the
approval
of
both
the

involved
product
and
the
manufacture
process.



Suppliers
are
required
to
submit
PPAP
level
3,
except
if
otherwise
required
by
the
ThyssenKrupp

Suppliers
Quality
Engineering
area.



Documents
such
as
the
Production
Part
Submission
Report
(Attachment
2),
the
Dimensional
Report

(Attachment
3)
and
the
Material
Test
Report
(Attachment
4)
must
be
completed
and
sent
to

ThyssenKrupp
whenever
PPAP
is
requested.
Other
documents
must
follow
the
AIAG
standards.



7.1.Suppliersdevelopmentinconjunctionwiththefinalcustomer


Any
raw
material
or
component
developed
in
conjunction
with
the
final
customer
of
the
product

application
must
be
shared
with
ThyssenKrupp
no
later
than
the
prototype
preparation
phase.
This

directive
aims
at
avoiding
any
project
failures
and
quality
problems.
Above
all,
ThyssenKrupp

reserves
the
right
to
express
its
opinion
on
the
items
that
will
carry
the
ThyssenKrupp
image
to
the

customer.


7.2.Capabilityrequirementsforspecialcharacteristics


Special
characteristics
are
informed
to
suppliers
by
means
of
drawings
and/or
standards.
Some

special
characteristics
may
be
identified
by
the
supplier
himself
during
the
development
of
the

product.



These
characteristics
must
be
incorporated
by
the
supplier
in
his
control
plans
so
that
they
may
be

assessed
by
statistic
methods
according
to
the
requirements
defined
by
AIAG.



Critical
characteristics
must
obtain
ppk
values
above
2.0
at
the
time
of
product
approval
and
a
cpk

value
at
least
above
1.67
during
continued
processes.



Major
or
significant
characteristics
must
have
ppk
values
above
1.67
at
the
time
of
product
approval

and
the
continuous
capability
of
normal
production
process
must
be
higher
than
1.33.

13/38

ThyssenKrupp
Metalrgica
Campo
Limpo

If
the
measurement
of
these
characteristics
is
impossible
(e.g.,
destruction
tests)
the
process

parameters
influencing
the
generation
of
the
characteristic
must
be
statistically
determined.

Such

characteristics
must
be
documented
and
controlled
to
stay
within
the
established
control
limits.
The

capability
of
attributed
characteristics
may
be
demonstrated
by
the
control
of
the
process

parameters.



In
such
cases,
the
attributive
criteria
of
0
ppm
may
also
be
applied.
As
for
samples,
300/0
(to
test

300
with
0
rejection)
method
or
other
rate
as
agreed
with
ThyssenKrupp
is
to
be
used.



As
for
processes
with
instable
or
non-capable
conditions,
a
plan
ensuring
the
compliance
with
the

applicable
specifications
must
be
in
place
(e.g.,
100%
inspection).


7.3.Requirementsfortraceabilityanddocumentcontrol


Supplier
must
have
in
place
a
traceability
and
recording
system
that
includes
subcontractors
and

meets
the
needs
of
ThyssenKrupp.
In
case
of
damages
while
using
final
products,
the
supplier
must

be
able
to
demonstrate
by
means
of
records
that
he
has
met
all
the
predetermined
specifications.



7.4.DataenteringintheIMDS-InternationalDataSystem


ThyssenKrupp,
within
its
own
production
chain,
requires
that
suppliers
enter
the
chemicals
and

quantitative
data
in
the
"mdsystem",
including
the
suppliers
of
raw
materials
and
components
used

in
the
manufacture
of
final
products.



Data
must
be
entered
in
the
website
www.mdsystem.com
and
submitted
to
approval
by

ThyssenKrupp
at
ID
5983,
irrespective
of
the
plant
that
is
using
the
product,
along
with
the

documentation
of
the
product
approval
(PPAP).
The
PPAP
approval
is
conditional to
the IMDS

submission.



Data
may
not
be
entered
in
public
websites
since
it
refers
to
confidential
information.


7.5.Submissionofsamples

7.5.1.Prototypes


Prototypes
must
be
duly
identified
with
the
"Sample
Submission
Label"
(Attachment
5)
along
with

the
relevant
dimensional
and
material
reports
at
the
time
they
are
delivered.



7.5.2.ProductionApprovalProcedurePPAPsamples


Samples
submitted
to
PPAP
approval
must
be
forwarded
with
all
relevant
documents,
reports
and

statistical
analysis
as
defined
in
the
AIAG
manuals
for
the
Automotive
Industry.



ThyssenKrupp
reserves
the
right
to
follow
up
and
approve
all
standard
300-part
lots
in
the
supplier's

plant.
The
quantity
set
for
a
certain
lot/batch
may
be
adjusted
to
the
convenience
of
the
parties

provided
that
such
adjustment
is
settled
by
mutual
agreement
and
upon
written
communication.

14/38

ThyssenKrupp
Metalrgica
Campo
Limpo

At
the
start-up
of
the
production
of
a
new
component
a
differentiate
control
plan
may
be
required
for

the
three
(03)
first
months
of
supply.
If
no
problem
occurs
during
this
trial
period,
the
control
plan

will
return
to
normal
standards.



All
requirements
of
item
7,
"Development
of
Product
and
Process",
and
7.2,
"Requirements
of

capability
for
special
characteristics",
must
be
met.



Samples
must
be
forwarded
duly
documented
and
identified
with
the
"Sample
Submission
Label".



The
samples
that
fail
to
attain
all
stages
of
this
procedure
are
rejected.


7.5.3.Readinessaudit


After
initial
approval
of
PPAP
samples
and
based
on
the
complexity
of
the
product
and
the
process,

as
well
as
the
risks
involved,
ThyssenKrupp
reserves
the
right
to
carry
out
audits
to
verify
the
actual

installed
capacity
for
the
first
lots/batches
of
the
serial
production
of
an
item.



Readiness
Audit
evaluates
whether
the
outcomes
of
the
manufacture
process
have
met
the
quality

requirements
as
established
by
the
PPAP
documentation
approval
and
production
capacity.



When
such
audits
are
not
carried
out
by
ThyssenKrupp
itself,
the
responsibility
to
audit
will
be
of
the

supplier.
Evidences
of
such
audits
will
be
requested
for
any
future
audits.



7.5.4.AssessmentofcapabilityRunatRate


Assessments
of
the
supplier's
supply
capacity
(volume)
may
take
place
in
the
supplier's
plant
in
way

to
identify
bottlenecks
of
each
manufacture
process
operations.
ThyssenKrupp
may
require
an

action
plan
to
be
in
place
to
ensure
that
the
volumes
agreed
will
be
manufactured
as
agreed.



Assessments
are
performed
according
to
the
methodology
as
defined
in
the
"Readiness
Audit"
file,

it
will
be
recommended
by
the
results
of
problems
or
surveys
of
the
process
needs
in
the
monthly

meetings.
The
supplier
is
full
responsible
for
performing
the
process
run-at-rate
analysis.

7.6.Auditofproductsandprocesses


The
supplier
must
establish
a
regular
system
of
audits
of
the
product
and
process
that
include

manufacturing,
inspections
and
tests,
identification,
preservation,
cleanliness,
packaging,
and

shipping
documents.



The
results
of
such
measurements
must
be
documented
and
the
effectiveness
of
the
measurements

must
be
demonstrated.



7.7.Inspectionoflay-outsandfunctionaltests


Suppliers
of
components
must
carry
out
lay-out
inspections
every
2

years,
which
include

inspections
of
the
specifications
set
in
the
product
drawings,
either
dimensional
or
metallurgical,
or

those
referring
to
applicable
tests.
Records
of
these
inspections
must
be
sent
to
ThyssenKrupp.

Parts
which
the
final
application
involve
the
Customers
GM,
Ford,
MIM
e
DaimlerChrysler,
must

submit
the
lay
out
inspection
in
an
annual
basis.

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ThyssenKrupp
Metalrgica
Campo
Limpo

7.8.Requirementsforspecialprocesses


7.8.1.Heattreatmentprocess


Heat
and
surface
treats
must
comply
with
the
CQI-9
standards
(Heat
Treat
System
Assessment).


The
supplier
will
be
the
full
responsible
for
auditing
such
process
on
an
annual
basis
and
to
send
the

audit
with
the
action
plan
to
Thyssenkrupp.
This
requirement
is
extended
to
include
the
services

supplied
by
subcontractors.



ThyssenKrupp
reserves
the
right
to
review
the
audit
documents
whenever
needed.



7.8.2.Superficialtreatmentsprocess

The
superficial
treatments
processes
must
comply
with
the
CQI-11
and
CQI12
standards
(Plating

System
Assessment/Coating
System
Assessment).


The
supplier
will
be
the
full
responsible
for
auditing
such
processes
on
an
annual
basis
and
to
send

the
audit
with
the
action
plan
to
Thyssenkrupp.
This
requirement
is
extended
to
include
the
services

supplied
by
subcontractors.



ThyssenKrupp
reserves
the
right
to
review
the
audit
documents
whenever
needed.

16/38

ThyssenKrupp
Metalrgica
Campo
Limpo

8.Processandproductchanges


Every
process
modification
must
be
communicated
to
ThyssenKrupp
to
consider
whether
new

samples
must
be
submitted.
The
applicable
requirements
in
item
7
must
be
met
in
case
of
process

changes.
The
Supplier
Quality
area
is
responsible
for
informing
the
items
that
are
applicable
to
each

case.




Whenever
products
are
changed
the
supplier
must
submit
new
samples
and
PPAP
documents
for

approval
of
both
the
product
and
the
manufacture
process.


ThyssenKrupp
requests
that
the
communication
of
these
processes
be
done
as
soon
as
possible

since
the
changes
may
imply
the
submission
of
new
samples
to
the
final
customer.





9.Approvingdeviations/rework


The
supply
of
products
with
small
deviations
from
the
specifications
will
only
be
accepted
upon

formal
application
sent
to
ThyssenKrupp
using
the
Concession
Request
Authorization
form

(Attachment
8).
The
document
must
be
prepared
and
forwarded
in
advance
to
the
Supplier
Quality

area
and
must
show
the
following
information:
the
quantity
involved
or
the
period
of
supply,
the

causes
of
the
problem
and
actions
to
be
taken
to
avoid
recurrences.

The
same
procedure
applies
whenever
reworks
not
mentioned
in
the
approved
process
are
to
be

performed,
which
may
cause
damage
to
the
use
of
the
product
or
may
cause
any
lose
to
the

manufacture
process
within
ThyssenKrupp.

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ThyssenKrupp
Metalrgica
Campo
Limpo

10.Assessmentsystemforcomponentsandrawmaterialssuppliers

This
assessment
aims
at
continuously
improving
ThyssenKrupp
suppliers
as
it
allows
the
generation

of
information
that
show
the
actual
performance
of
suppliers
in
a
way
that
orient
improvement

actions
as
much
as
recognize
suppliers
with
better
Technical/Business
potential,
thus
helping
the

development
of
new
businesses.



Suppliers
that
provide
parts
to
more
than
one
Thyssenkrupp
plant
will
have
a
global
assessment.



Suppliers
are
evaluated
on
the
basis
of
Commercial,
Logistics
and
Quality
requirements
by
the

following
rates:



GlobalSupplierPerformance(GSP):
This
rate
expresses
the
global
capacity
of
a
supplier
to
meet

commercial,
logistics,
and
quality
requirements,
describing
the
ThyssenKrupp's
degree
of

satisfaction.



QualityPerformance(QP)
This
rate
expresses
the
Quality
of
the
product
supplied
on
the
basis
of
the
record
of
quality
related
to

the
products
delivered
and
during
the
use
thereof
in
the
manufacture
process.



QualitySystemRate(QSR)
This
rate
expresses
the
status
of
the
certification
of
the
supplier's
Quality
System
as
regards
to

ThyssenKrupp
requirements.



DeliveryPerformance(DP)
This
rate
expresses
the
level
of
the
suppliers
compliance
with
delivery
terms.




CustomerCare(CC)
This
rate
expresses
the
business
behavior
among
companies
against
the
expectations
of

ThyssenKrupp.




10.1.Supplierassessmentsystemgoals

The
goals
set
by
ThyssenKrupp
are
described
as
follows:


Assessment
Rates

Targets

GSP-
Global

Supplier
Performance

>
95

QP-
Quality
Performance

100

QSR-
Quality
System
Rate

>
90

DP-
Delivery
Performance

100

CC-
Customer
Care

>90

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ThyssenKrupp
Metalrgica
Campo
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10.1.1.QualityPerformance(QP)

This
rate
expresses
the
quality
rate
calculated
on
the
basis
of
the
records
of
product
delivery
dates.

The
quality
of
the
lots/batches
supplied
may
be
assessed
either
at
the
time
of
the
delivery
inspection

or
during
the
use
of
the
product
in
the
manufacture
process.




Suppliers
with
supply
problems
directly
affecting
the
ThyssenKrupp
production
lines
must
provide

an
action
plan
to
correct
nonconformities
immediately
after
formal
communication
of
the
problem.

Suppliers
are
rated
on
the
basis
of
the
QP
result
as
per
the
following
table:



Quality
Performance


Classification


100

Excellent

90
to
99.9

Good

80
to
89.9

Satisfactory

60
to
79.9

Insufficient

Below
60

Inadequate

10.1.1.1.QPcalculationmethodforrawmaterialandcomponentsuppliers

QP=
InspectionsResults(IR)
x
0.2
+
SCARS
x
0.5
+
PPM
x
0.3



Where:

Inspections Results (IR)
=
the
score
average
obtained
from
the
product
lots/batches
supplied

based
on
the
inspections
results



AP

=
Approved
lot


















=
100

AL
=
Approved
lot
with
Alert




=


80

AC
=
Conditioned
Approved
lot
=

50

RJ
=
Rejected
lot






















=

20

SCARS
=
Score
based
on
the
number
of
Supplier
Corrective
Action
Request
issued
due
problems

found
at
the
delivery
of
the
product,
during
the
production,
or
on
the
customer's
site.



No#
of
Complains


Score

0

100

1

90

2

80

3
to
4

50

5
or
above

1



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ThyssenKrupp
Metalrgica
Campo
Limpo

PPM
=
A
score
based
on
the
number
of
parts
with
problems
identified
at
the
delivery
inspection
or

during
the
manufacture
process,
with
the
amount
expressed
in
ppm
(part
per
million),
which
is

attributed
as
a
demerit
to
the
supplier
for
the
month.




Criteriaforcomponents:


PPM

Score

0

100

1
to
100

98

101
to
199

95

200
to
399

80

400
to
800

70

>
800

50

Criteriaforrawmaterial:


Forging

PPM

Machining

PPM

Score

100

0

100

200

100

98

400

200

95

800

400

90

1000

800

80

>1000

>800

70

Note:
Maximum
values
per
range.
PPM
calculated
using
a
supply
weight
bases.
The
lower
score

between
machining
and
forging
will
be
given.

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ThyssenKrupp
Metalrgica
Campo
Limpo

10.1.2.QualitySystemRate(QSR)

ThyssenKrupp
requires
from
its
suppliers
that
they
are
certificated
by
external
entities
as
per
table
in

item
3.4
and
reserves
the
right
to
perform
audits
in
the
supplier's
facilities
if
deemed
necessary.



The
supplier
must
show
actions
to
achieve
third
part
certifications
related
to
the
Quality
System,
Safety
and

Environment


ThyssenKrupp
may
purchase
from
non-certificated
suppliers
if
so
authorized
by
its
customers
or

after
a
process
audit
has
performed
pursuant
to
VDA-6.3.


The
score
of
the
QSR
is
based
on
the
supplier
third
party
certifications
as
defined
bellow:

Quality
System
Rate

Certification

requirements

100

ISO/TS
16949

X

X

X

X

ISO
9001

X

ISO
14001

X

X

OHSAS
18001

X

X

VDA-6.3

95

90

85

80

70

X

X

X

X

X

X

X

X

Follow
the
classification:

Quality
System
Rate

Classification

95
to
100

Excellent

90

Great

80
to
85

Good

70

Acceptable

10.1.2.1.VDA-6.3processaudits

Suppliers
of
both
components
and
raw
material
may
be
audited
pursuant
to
the
VDA
6.3
standard
in

the
following
cases:


Suppliers
failed
to
meet
the
Quality
System
requirements.
When
a
score
above
or
equal
to
72
is

obtained
and
a
compatible
action
plan
in
actually
in
place
the
supplier
will
be
consider
approved

to
supply.


Necessity
raised
during
the
supplier
performance
monthly
meeting


Suppliers
with
a
high
level
of
problems
or
with
a
problem
with
a
magnitude
that
may
cause
serious

damages
to
the
ThyssenKrupp
internal
production
processes
or
any
other
type
of
damage
to
the

final
customer.
In
such
cases,
the
QSR
score
that
was
initially
established
may
be
changed
by
the

score
awarded
by
the
audit.

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ThyssenKrupp
Metalrgica
Campo
Limpo

Strategic
suppliers
audited
according
to
the
internal
audit
plan.
The
supplier
must
show
an
action

plan
for
the
problems
found.



The
suppliers
will
be
classified
in
3
categories
according
the
VDA
6.3
adherence.
They
will
be

evaluated
according
the
frequency
interval
described
on
the
table
bellow:



VDA
6.3
Global
attendance
degree
(%)
Classification

Frequency
(years)


92
up
to
100

A

3

82
up
to
91,9

B

2

72
up
to

81,9

C

1

The
Supplier
QSR
which
the
VDA
audit
classification
result
is
B
or
C
will
be
replaced
to
the
VDA
audit

score.



ThyssenKrupp
reserves
the
right
to
evaluate
new
suppliers
before
sending
the
first
purchase
order.



A
VDA
6.3
self
assessment
can
be
performed
instead
of
Thyssenkrupp
audit,
except
when

established
in
the
customer
specific
requirements.
I
such
cases,
the
classification
will
be
maximum

B
no
matter
the
score.
A
new
self
assessment
must
be
performed
each
2
years



10.1.3.DeliveryPerformance(DP)

The
measurement
of
the
supplier's
level
of
compliance
with
the
delivery
terms
expresses
his

commitment
to
the
terms
agreed
(quantity
and
time).
ThyssenKrupp
requires
from
suppliers
an
ontime
delivery
performance
of
100%.


DP=
Weighted
average
of
all
materials
delivered
in
a
month



Suppliers
with
delivery
problems
directly
affecting
the
ThyssenKrupp
production
must
provide
an

action
plan
immediately
after
the
formal
communication
of
the
non-conformities.



Once
a
month
ThyssenKrupp
reviews
the
on-time
delivery
indicators
and
requests
corrective
actions

from
suppliers,
as
needed.



Suppliers
are
ranked
according
to
the
table
below:



Delivery
Performance
(DP)

Classification


100

Excellent

95
to
99.9

Good

90
to
94.9

Satisfactory

bellow
90

Inadequate



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ThyssenKrupp
Metalrgica
Campo
Limpo

10.1.4.CustomerCare(CC)


A
system
that
establishes
on
a
monthly
basis
the
ThyssenKrupp's
satisfaction
level
with
the
factors

mentioned
below
for
the
Customer-Supplier
relationship.
The
scores
are
given
by
the
several

ThyssenKrupp
internal
areas.



A.
Problem-solving
efficiency
in
Logistics
issues


B.
Delivery
conditions
(packages,
identification,
transport
and
documents)

C.
Problem-solving
efficiency
in
Quality
issues

D.
Pro-active
attitude
in
the
commercial
relationship

E.
Price.



Customercare(CC)=
sum
of
the
individuals
items



Suppliers
are
ranked
according
to
the
following
table:



Customer
Care
(CC)

Classification


90
to
100

Excellent

80
to
89.9

Good

70
to
79.9

Satisfactory

below
70

Inadequate

10.1.5.GlobalSupplierPerformance(GSP)


The
Global
Supplier's
Performance
(GSP)
is
found
by
combining
the
Commercial,
Logistic
and

Quality
performance
indicators.
The
score
so
obtained
allows
ThyssenKrupp
to
rank
suppliers

according
to
their
capacities
and
the
ThyssenKrupp
level
of
satisfaction:



GSP=(QPx
0,40+

QSRx
0,20+

DPx
0,20+


CCx
0,20)



Suppliers
are
ranked
for
GSP
according
to
the
table
below:


Global
Supplier
Performance



Classification


95
to
100

Excellent

85
to
94.9

Good

75
to
84.9

Satisfactory

below
75

Inadequate

23/38

ThyssenKrupp
Metalrgica
Campo
Limpo

10.2.AssessmentofGlobalSupplierPerformance(GSP)


Every
month,
suppliers
are
informed
on
their
respective
performance
by
the
"Global
Supplier

Performance
Report"
(Attachment
6),
which
is
forwarded
by
the
ThyssenKrupp
Supply
area.



ThyssenKrupp
reviews
on
a
monthly
basis
each
supplier's
GSP
scores
in
the
supplier
performance

evaluation
meetings.
Suppliers
with
the
GSP
score
below
85
can
be
asked
show
to
ThyssenKrupp

the
performance
improvement
actions
to
be
used
to
cope
with
the
problem.
This
assessment
is

based
as
much
on
the
QP,
DP,
and
CC
indicators
as
on
the
supplier's
relevant
records.




When
the
GSP
score
is
below
85
and
a
decreasing
trend
can
be
noted
within
a
period
of
or
above

three
(3)
consecutive
months,
an
audit
will
be
carried
out
by
the
Quality
area
as
per
VDA-6.3

standards.
The
supplier
must
show
an
official
action
plan
for
correcting
any
nonconformity.



As
for
suppliers
with
GSP
score
below
75
for
a
period
longer
than
three
(3)
consecutive
months
or

for
five
(5)
times
in
the
same
year,
ThyssenKrupp
Purchase
area
will
begin
developing
a
new,

alternative
source.
In
case
that
the
supplier
has
been
indicated
by
a
ThyssenKrupp
customer,
the

customer
will
be
notified
on
the
performance
inappropriately
low
of
the
supplier
and
the
need
for
the

development
of
a
new
source.



Audits
for
additional
processes
may
be
defined
in
the
monthly
supplier
performance
meetings
as
a

result
of
the
quality
problems
found.




24/38

ThyssenKrupp
Metalrgica
Campo
Limpo

11.Assessmentsystemforsuppliersofmachining,mounting,andmoldsheattreatservices
andforgingaccessories


11.1.QualityPerformance(QP)calculationmethodformoldingareasuppliers


Suppliers
of
tooling
services
are
assessed
according
to
the
quality
performance
on
a
monthly
basis.

This
assessment
is
used
to
define
the
suppliers
with
the
best
technical/commercial
potential
and
the

developments
of
future
businesses.


As
for
this
segment,
the
Quality
Performance
(QP)
is
calculated
on
the
basis
of
the
product
delivery

records.
The
quality
of
the
lot/batch
supplied
may
be
assessed
either
at
the
delivery
inspection
or

during
the
use
of
the
product
in
the
manufacture
process.


QP=
the
average
of
the
scores
awarded
to
supplied
batches"



Score
for
each
technical
report:


AP


=
Approved
lot


















=
100

AL

=
Approved
lot
with
Alert





=

80



AC


=
Conditioned
Approved
lot
=

50


RJ


=
Rejected
lot






















=

20



Once
a
month
ThyssenKrupp
releases
the
results
of
the
rank
to
suppliers.



11.2.QualitySupplyDocuments


Suppliers
must
send
a
completed
"Inspection
Report"
along
with
the
product
supplied.
The
report

must
show
the
specifications
and
the
values
found
in
all
measured
characteristics
of
the
items.
This

report
will
be
kept
for
retrieval
at
any
time
and
as
an
instrument
for
comparing
the
measures
found

by
the
supplier
and
those
found
by
ThyssenKrupp.
If
the
report
is
not
sent
to
ThyssenKrupp,
this
will

be
counted
as
a
demerit
to
the
supplier.



11.3.Heattreatmentassessment


Suppliers
of
heat-treated
products
must
carry
out
an
annual
audit
of
the
heat
process
as
per
CQI-9

(Heat
Treat
System
Assessment)
standards.
An
action
plan
must
be
established
for
noncompliant

items.
ThyssenKrupp
reserves
the
right
to
request
the
audit
records
whenever
necessary.

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ThyssenKrupp
Metalrgica
Campo
Limpo

12.Supplyproblems


Actions
will
be
required
to
be
taken
by
the
supplier
whenever
products
fail
to
comply
with
the

ThyssenKrupp
specifications.



When
a
Supplier
Corrective
Action
Request
(Attachment
7)
is
opened,
the
supplier
will
be

responsible
for
identifying
the
cause(s)
of
the
nonconformity
and
officially
communicate
the

corrective
action
to
be
taken
to
eliminate
any
possibility
of
recurrences.



Suppliers
must
provide
a
reply
within
twenty-four
(24)
hours
whereby
the
analysis
and
containment

actions
used
to
limit
the
problem
within
the
ThyssenKrupp
site,
the
parts
in
transit,
and
the
parts

stored
in
the
supplier's
premises
must
be
described.



Suppliers
will
have
a
period
of
five
(5)
working
days
to
communicate
ThyssenKrupp
about
the

corrective
actions
to
be
taken
in
order
to
avoid
recurrences
and
the
terms
and
responsible

individuals
for
each
action.

The
reply
must
be
forwarded
in
the
same
format
as
the
Supplier

Corrective
Action
Request
document
so
as
to
allow
the
reply
content
to
be
entered
into
the

ThyssenKrupp
SAP
system.



After
implementing
the
actions
as
defined
in
the
Supplier
Corrective
Action
Request,
suppliers

must
document
material
evidences
(pictures,
worksheets,
meeting
minutes,
etc.)
that
show
that
the

problem
has
been
contained
so
that
the
action
taken
may
be
verified
and
the
report
closing
analysis

may
be
finished.



ThyssenKrupp
reserves
the
right
to
carry
out
inspections
on
the
supplier's
site
if
judged
necessary.



In
case
of
warranty
problems,
line
stopping
or
any
other
serious
issue,
ThyssenKrupp
reserves
the

right
to
communicate
the
Supplier
Certifications
Body
involved.



12.1.Containmentplan


Should
any
problem
occur
ThyssenKrupp
reserves
the
right
to
apply
the
Level
1
Controlled
Shipment

procedures
(CS1:
Pro-active
Containment)
to
be
performed
by
the
supplier;
Level
2
(CS2:
Reactive

Containment)
to
be
performed
within
ThyssenKrupp
premises
by
outsourced
specialized
companies,

and
any
release
of
products
will
be
ThyssenKrupp
responsibility.



Any
costs
inherent
to
containment
operations
will
be
at
the
expense
of
the
supplier
so
as
to
ensure

the
conformity
of
the
delivered
components.




Suppliers
are
officially
informed
on
the
criteria
for
the
application
of
the
procedures
as
well
as
the

duration
of
them.



If
the
CS1
and
CS2
containment
actions
reveal
insufficient
to
ensure
conformity
of
the
delivered

products
with
ThyssenKrupp
specifications,
the
supplier
will
not
be
considered
for
new
businesses

with
ThyssenKrupp
until
he
has
set
an
efficient
action
plan
is
put
in
place
and
the
non
conformities

aredefinitively
resolved.

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ThyssenKrupp
Metalrgica
Campo
Limpo

Exhausted
all
possibilities,
if
the
supplier
demonstrate
no
been
able
to
resolve
effectively
the

reported
non
conformity,
it
will
be
disqualified
for
supplying
the
product
or
service.



Containment
actions
within
the
customer's
site
or
warehouse
may
be
conducted
by
third
parties

without
previous
evaluation
when
the
third
party
has
been
indicated
by
the
customer
or
its

qualifications
can
be
demonstrated
by
the
results
of
similar
services.
In
these
cases
a
ThyssenKrupp

representative
will
be
designated
to
coordinate
the
involved
work.




12.2.Costsrecovery


The
costs
involved
in
any
line
stopping,
rework,
selections
and
all
other
costs
associated
with

noncompliant
materials
will
be
timely
compensated
by
the
supplier
to
ThyssenKrupp.



The
supplier
will
be
informed
about
the
costs
involved
thought
the
document
Pre
Alert
Debit
Note

(Attachment
9).
Its
supplier
responsibility
to
send
back
the
document
to
Thyssenkrupp
in
5
days.
In

case
Thyssenkrupp
does
not
receive
the
document,
it
will
be
considered
that
the
debit
was

automatically
accepted.



13.Supportivedocuments


Suppliers
are
required
to
use
the
documents
listed
below
as
a
reference
to
implement
the
Quality

System:



-
Quality
System
Requirements
as
per
ISO
TS
16949
and/or
ISO
9001

-
ISO
IEC
for
Suppliers
of
Measurement
Equipment
Gauging
Services

-
Control
Plan
and
Advanced
Product
Quality
Planning
Manual
(APQP/
AIAG)

-
Production
Part
Approval
Process
(PPAP/AIAG)

-
Measurement
System
Analysis
Manual
(MSA/AIAG)

-
Statistical
Process
Control
Manual
(SPC/AIAG)

-
Failure
Mode
and
Effect
Analysis
Manual
(FMEA/AIAG)

-
CQI-9
-
Heat
Treat
System
Assessment

-
CQI-11
-
Plating
System
Assessment


-
CQI-12
-
Coating
System
Assessment


-
MMOG/LE
-
Master
Global
Materials
Management
Operations
Guidelines/Logistics
Evaluation





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14.Attachments.


Attachment
1

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Attachment
2

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Attachment
3

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Attachment
4

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Attachment
5

Attachment
6

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Attachment
7

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Attachment
8

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Attachment
9



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Attachment
10





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15.Listofreviews


REV

DATE

00

Jan/08

New
entire
revision.

All

01

Apr/10

3.4.
Included
supplier
responsibility
for
Certifications
up
dated
information

6

7.4
included
that
PPAP

approval
is
conditional
to
IMDS
submission

13

02

ITEM

10/10.1.3.
Included
Global
assessment
and
quantity
requirements
for

Delivery
indicator

16
/
20

10.1.2.
Changed
the
QSR
evaluation
criteria,
considering
the
third
part

certifications
as
score
parameter

19

12.
Included
the
communication
to
the
Certification
Bodies
in
case
of
serious

problems

24

12.2.
Included
criteria
for
costs
recovery
Pre
Alert
Debit
Note

25

Sept/10
3.4.
Up
dated
information
regarding
ISO
TS16949
revision.

6

7.7.
Redefined
the
layout
inspection
frequency.

14

7.8.2.
Established
requirement
for
superficial
treatments,
plating
and
coating

according
CQI
11
and
CQI12
and
annual
self
assessment.

15

10.1.2.1.
Included
the
VDA
6.3
classification
and
audit
frequency.

03

PAGE

May/11

Including
6.7.
Warehouse
Evaluation

19/20/21

12

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