Sundram Fasteners Limited

Supplier Quality Manual

Of

Sundram Fasteners Limited

Effective from: Jan 2016

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Rev: 05, 15th Sep 2017
Sundram Fasteners Limited

Contents
Page
Introduction 4
Scope 5
Requirements 6
1 Supplier selection and approval 6
2 Control of document 6
3 Control of record 7
4 Leadership 7
4.1 Leadership commitment 7
4.2 Customer representative 7
4.3 Management review 8
5 Resource management 8
5.1 Resources 8
5.2 People 8
5.3 Contingency plan 8
6 Project Management 9
7 Design and development of products & services 9
8 Waiver request 9
9 FMEA 10
10 Control Plan 10
11 Work instruction 10
12 Control of monitoring and measuring equipment 10
13 Layout inspection and functional testing 11
14 Appearance items 11
15 Production Part Approval Process 11
16 Sampling plan and inspection report 12
16.1 Sampling plan 12
16.2 Inspection report 12
17 Material storage and handling equipment 12
17.1 Material storage 12
17.2 Handling equipment 12
17.3 Package 12
18 Part identification and traceability 13
19 Operational/Process control 13
19.1 Setup Approval 13
19.2 In-process monitoring and measurement 14
19.3 Statistical Process Control 14
19.3.1 Initial capability 14
19.3.2 On-going capability 14
19.3.3 Reaction plan, if capability not met 14
19.4 Preventive Maintenance 14
20 Handling the non-conforming parts 14
21 Tooling Management 15
21.1 Customer owned production tooling 15
21.2 Tool maintenance 16

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22 Performance monitoring 16
22.1 Self-Assessment 16
22.2 SFL rating system 16
22.3 Second party supplier audit by SFL 17
22.4 Re-assessment 17
23 Process specific requirement 17
23.1 Machining, copy turning and forging 17
23.2 Centre-less grinding 17
23.3 Thread rolling 17
23.4 Wire drawing / Hot forging 18
23.5 Heat treatment 18
23.6 Plating and coating 18
23.7 Plastic injection moulding 18
23.8 Rubber moulding 19
23.9 Spring manufacturing 19
23.10 Stamping and pressing 19
24 Others 19
25 Restricted and hazardous substance 19
26 Corrective action and preventive action 19
26.1 Response to SFL quality complaint 19
26.2 Warranty Management systems 20
27 Penalty for non-conformance 20
27.1 Parts non-conformance at SFL 20
27.2 Parts non-conformance at customer end 21
Revision history 21

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Introduction
This document “Supplier Quality Manual” defines the fundamental expectations of Sundram
Fasteners Limited (SFL) from its suppliers who are supplying / sub-contracting the parts and providing
services to SFL.

This document is to promote fundamental quality management system that provides outstanding
quality, delivery, customer satisfaction and continual improvement. SFL intends to establish a high
standard, in line with our goal of being the leading global manufacturing company. In order to achieve
these goals, it is vital that our suppliers shall also reach to very high standard.

This manual is made with the following objectives:

 Provide details of SFL requirement for a robust system

 Provide a method of assessing the capabilities of potential new facilities prior to sourcing and
also for revaluation of existing suppliers
 Serve as a basis for recognizing supplier’s facilities with outstanding quality and exceptional
delivery performance

 SFL’s suppliers shall implement and maintain the requirements as defined in this
manual, in addition to the applicable ISO: 9001 or IATF:16949 requirements

 Unit / Division specific requirements related to their parts / processes / customers, will
be given as a supplementary requirements in addition to this manual

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Scope

The requirements specified in this manual are applicable to all the suppliers supplying / sub-
contracting parts and services to SFL. Where the supplier uses multiple facilities / locations, all those
facilities / locations shall also comply with the requirements as specified in this manual.

When the supplier outsources any of the manufacturing activities, the requirements specified in this
manual are also applicable and extended for those outsourced activities. And the supplier is solely
responsible for the all the outsourced activities in the supply chain management and ensure the
compliance to the requirements.

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Requirements

1 Supplier selection and approval process

SFL has a system to select and approve supplier in order to effectively manage the procurement
of materials, parts and services

The suitability of the supplier may be verified by one or more of the following criterions

Customer recommended source

Third party registration to ISO: 9001
Compliance to ISO:9001 Second party assessment and approval by SFL
In that case supplier should have a plan to get third party certification within six months of
awarded business
Third party registration to IATF:16949, is strongly recommended
Third party registration to EMS: 14001 and OHSAS: 18001, is an added advantage
Safe working environment and practices
Award and recognition from customer / OEM / institution
Supplier, who receives an unsatisfactory grade during the assessment process, shall require issuing a
corrective action (or) implementing immediate improvement plan. Supplier shall likely be removed from
the SFL list, if significant improvements are not made.

2 Control of documents

The supplier shall maintain the SFL design documents such as drawing, specification, approved
control plan, inspection report formats, etc., in a manner that the documents are protected to avoid
misuse.

For each document a master list shall be maintained with indication of current revision status
 Invalid and obsolete documents shall be promptly removed from the point of use. If any obsolete
documents retained for legal / knowledge preservation purpose, it shall be properly identified
 The supplier shall ensure that the latest documents are in use, by verifying with SFL at least once
in six months and sign-off shall be made
 Any discrepancy on the documents shall be brought to the notice of SFL within two working days
or before taking any manufacturing activities
 All documents shall be maintained for the length of time that the part is active for production and
service requirement plus one calendar year

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3 Control of records

The records shall be maintained by the supplier to demonstrate conformance to the specified
requirement and effective operation of the quality system. The records shall be stored and retained
properly in such a manner that the records are readily retrievable and prevented from damage and
deterioration.

 Production part approval, tooling records, purchase order and amendments shall be maintained
for the length of time that the part is active for production and service requirement plus one
calendar year
 Records of inspection shall be maintained (Incoming inspection report/In-process inspection
report and Final inspection reports, SPC etc.,) shall be retained for one calendar year after the
year in which they were created
 All corrective action & preventive action reports shall be maintained for five years
 Records of internal quality audit and management review meeting shall be retained for three
years
 Retention periods longer than those specified above may be specified by the supplier in their
procedure / manual
 Any specific retention period apart from those specified in this manual, will be informed by SFL
and the same to be followed
 Upon SFL’s request, the supplier should retrieve the necessary records and documents not
exceeding one working day
 These requirements does not supersede any regulatory requirements

4 Leadership

4.1 Leader ship commitment

The supplier’s top management shall ensure SFL satisfaction by meeting the requirements, by
demonstrating their operations with respect to their quality management system through following

 Objectives based on continual improvement, defect prevention & reduction of variation in process
 Establishing & communicating quality policy
 Organizational roles, responsibilities and authorities
 System for monitoring & measurement of performance should be established
4.2 Customer representative

The supplier shall identify and nominate a customer representative, who should be process owner
for Customer care, Customer satisfaction and service. Who will interact with SFL on any production,
quality, delivery, concerns, training, corrective and preventive actions, and development and
improvement activities

 Any change in management and customer representative shall be informed to SFL within two
working days in writing

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4.3 Management review

The supplier’s top management shall review the product realization process and support process to
evaluate and improve their effectiveness and efficiency.

 The supplier shall conduct management review meeting once every three months
 Top management should analyse ,evaluate & arrive actions for progress with respect to
organizational objectives
 The supplier shall also include the SFL performance rating and metrics as management review
input
 Changes in external and internal issues that are relevant to the quality management system
5 Resource management

5.1 Resources

When considering a Request For Quote (RFQ), the supplier shall account for and be able to apply all
necessary resources to complete the purchase requirements to SFL’s satisfaction
 Personals for operation of process in line with SFL-QMS requirements
 Infrastructure like building, associated utilities
 Equipments including hardware and soft ware including monitoring & measuring resources
 Resources for material handling, storage and transportation
 Information and communication technology
 Environment for the operation of process

5.2 People

The supplier shall ensure that only trained and qualified personnel are involved in all aspects of the
manufacturing of SFL parts.

 People competency requirement level should be defined

 Also competency monitoring and up gradation plan should be available
 All training records shall be maintained for three years from the date of training

5.3 Contingency plan

The supplier shall prepare contingency plans to satisfy requirements in the event of an emergency
such as utility interruptions, labour shortage, key equipment failure and field returns etc.,

 The supplier shall notify SFL plant, within 24 hours of production interruption. The nature of the
problem shall be communicated to SFL and immediate action to be taken to assure supply of
parts to SFL
 If any change which affect controlled operation process (4M Changes) should be communicated
to SFL and get approved as suggested ( eg.PPAP or 4M change approval )

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6 Project Management

Supplier shall have a documented procedure for establishment of product realization and which should
consider

 Project feasibility study

 Project risk analysis and mitigation plans
 Customer product requirements and technical specifications
 Manufacturing feasibility & acceptance criteria
 Change to requirements for products and services
 Control of externally provided process, product & services
Supplier shall ensure the confidentiality of SFL -contracted products and project under development
including related product information’s.

7 Design and development of product & services

Supplier shall establish, implement and maintain a process for design & development of product,
process & services which should consider
 Design & development planning (for example project management tools like APQP)
 Design & development inputs, control, validation
 Product risk analysis (DFMEA) including actions to reduce potential risks (if applicable)
 Process risk analysis (PFMEA) including actions to reduce potential risks
 Special characteristics control & monitoring
 Process flow control plan & standard operating procedures.
Supplier shall ensure the design & development process is able to apply all necessary resources to
complete the purchase requirements to SFL’s satisfaction

8 Waiver request

The supplier shall obtain a written concession (or) deviation permit prior to processing, when the
part (or) manufacturing process is different from the originally approved.

The supplier shall maintain all the records generated during the waiver request for, expiration date (or)
quantity authorized. The supplier shall also ensure compliance to the original requirement when the
authorization expires. Material shipped on waiver request authorization shall be properly identified on
each shipping container.

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9 Failure Mode Effect Analysis (FMEA)

The supplier shall prepare documented process FMEA’s as per AIAG manual for all parts -
manufactured / processed.

The FMEA’s can be prepared for families of parts, the use of family FMEA shall be approved by SFL.
Supplier shall provide copies of FMEA upon SFL request.

 FMEA’s shall be reviewed at least once in six months, be updated whenever any concerns and
quality complaint at internal and external

10 Control plan

The supplier shall develop control plan for part / part family wise, this shall include list of controls
used for manufacturing, includes methods for monitoring of control exercised over the characteristics
and the reaction plan should be addressing the action to be taken when process / part not meeting the
requirements.
 Process parameters control monitoring
 Special characteristics control and monitoring as defined by SFL
 Any change in the control plan shall be informed in writing and approval must be obtained from
SFL

11 Work instruction / SOP

The supplier shall develop work instructions / Standard Operation Procedure (SOP) to support
each operation. These instructions shall be most recent and may also in local language and easily
accessible at each work station.
 The work instruction shall describe each activity to the extent possible in “What to do?” and “How
to do?”

12 Control of monitoring and measuring equipment

 The supplier shall maintain the master list of all the gauges and instruments with description,
ID.no, least count, make, calibration done on & calibration due on information, calibrated by etc.,
are to be mentioned and maintained
 The Calibration status information shall be identified on all instruments and gauges
 An assessment of impact, when of out-of-specification condition to be made, and inform to SFL
not exceeding one working day
 The external calibration agency shall be accredited to ISO/IEC 17025 or national equivalent
 The part shall be measured, which has the least count ≥ 1/10 of the tolerance
 Measurement system analysis (MSA) shall be made for all the monitoring and measurement
equipment as listed in the control plan
 Alternative methods and criterions should be approved by SFL

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13 Layout inspection and functional testing

 The supplier shall carry out lay out inspection, material verification and functional testing once in
six month in addition to PPAP
 Layout and functional testing results shall be made in variable result, not an attribute result. If
variable measurement not possible under some circumstances, it shall be approved by SFL upon
request
 Any non-conformance observed during the layout inspection, material, functional testing shall be
informed to SFL not exceeding one working day

14 Appearance items

Where SFL designate as “appearance items” the supplier shall,

 Provide appropriate resources, are being assessed for availability, adherence and adequacy
once every six month
 Provide applicable masters for colours, grain, gloss, metallic brilliance, texture, distinctness of
image
 Shall establish system for maintenance and control of appearance masters and evaluation
equipment
 Periodic verification of personnel performing appearance evaluations are competent and
qualified to do so

15 Production Part Approval Process (PPAP)

The supplier shall submit PPAP (as per the latest -AIAG PPAP manual) as and when requested by
the SFL. In general, the submission level is ‘3’, any specific level will be informed by SFL on time-to-time.

 Supplier shall conduct “Tech review” before the development of part. The tech review documents
if any, shall be submitted along with PPAP documents
 All FMEA, control plan, gauge plan approvals are required prior to PPAP submission, regardless
of PPAP level
 SFL reserves the right to disclose the PPAP documents to its customer without prior information
to supplier
 The supplier shall allow the SFL’s customer to audit the supplier premises
 In case of change in manufacturing process/SFL drawing revision, the supplier shall re-submit
the PPAP. Any change in the process is not allowed after the PPAP approval
 Supplier shall carry out 100% inspection for the critical parts / critical characteristics as identified
by SFL, for three lots (or) three months dispatches, whichever is longer for bulk production after
PPAP approval
 Supplier shall have to sign-off the 4M (Man, Machine, Material and Method) condition, for each
part or part group wise after the PPAP, not more than fifteen working days
 Supplier shall declare to SFL that no 4M change has been done once every three months
 The PPAP sample parts shall be maintained for the length of time that the part is active for
production and service requirement plus one calendar year
 For the proprietary parts / services, the PPAP requirements shall be mutually agreed between
SFL and supplier

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16 Sampling plan and inspection reports

16.1 Sampling plan

Supplier shall develop and follow the sampling plan on each stage of the process, which can be
derived based on some guideline from national / international standard

 SFL- Acceptance Quality Level (AQL) : Zero

 Supplier shall consider the ”Lot size” (Qty.) shall not exceed one shift production (or) one
production run, whichever is smaller

16.2 Inspection reports

Supplier shall submit applicable Inspection report, material test certificate and outsourced process
report (heat treatment, plating, etc.,) along with the each supply made to SFL. And these reports shall
have the traceability from raw material (or) SFL supplied parts.

 For bought out parts, all the raw material shall be tested with national or international accredited
laboratory for material, physical and mechanical property once in six months and reports are to
be submitted to SFL

17 Material storage and handling equipment

17.1 Material storage

The supplier’s material / product storage system shall ensure identification, contamination and protection
of products. FIFO and batch traceability are to be ensured when material/ product are further processed

The supplier shall designate a storage location for keeping the following materials.
1. Incoming material for processing
2. Work-in-Progress
3. To be delivered to SFL
4. To be reworked & To be scrapped
 Obsolete product is controlled as similar to that of nonconforming product
 Ensure specified storage climate conditions for materials that could be damaged by temperature,
humidity, vibration etc.,

17.2 Handling equipment

 The handling equipment (trays / tote boxes) used in-house as well as used to supply part to SFL
shall be cleaned at least once every three months
 If any cleanliness requirement of the part is a quality characteristic, then the periodicity shall be
agreed between supplier and SFL

17.3 Packaging

Supplier shall follow the recommended packaging and packing material to supply the parts to SFL.

 Packaging sign-off shall be made for each part or part family with respective buyer of SFL,
preferably during the PPAP. No change is permitted after the sign-off.

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18 Part identification and traceability

The supplier shall use suitable means to identify the status of out puts with respect to monitoring and
measuring requirements throughout production.

 It should enable the supplier to identify and segregate nonconforming and/or suspected products
 Ensure the ability to meet SFL / SFL’s customer and/or regulatory traceability requirements for
all the products to SFL
 The supplier shall identify the parts from supplier’s incoming stage till delivery to SFL with
appropriate traceability system. The traceability system shall ensure relevant information are
being captured and linkage established
 When supplier use SFL’s route tag, the supplier shall fill all relevant information in the route tag
against the process carried out at their end
 In case of route card generated by the supplier the minimum information it shall carry such as,
part number, description, RM used, RM heat number, date of operation(s), machine used and
operation completed and operator(s) involved. The part handling shall ensure no mix-up of RM
heat number and heat treatment batch number
 In case of parts to be delivered on 4M change condition after approval, special identification shall
be made to pay attention and detail of changes to be mentioned
 Ensure the identification and traceability requirements are extended to externally provided
products (sub-suppliers & services) with safety/regulatory characteristics.

19 Operations/ Process control

The supplier shall have necessary facilities for manufacturing the parts, this shall include the
availability of necessary measurement gauges as identified in control plan. Wherever possible supplier
shall develop and install an error-proof arrangement

19.1 Set-up approval

The supplier shall practice and first/last piece inspection, and inspection only be done with variable
measurement and process centred.
 The first off pieces shall be retained with the machine until the next change over
 On applicable processes, the last off pieces shall be retained with the machine / tool / mould until
the next change over, These last pieces shall be handled properly in order to avoid mix-up, it is
recommend to scarp those pieces
 On SFL request the first off / last off (or) both shall be preserved with required identification
 First off / last off (or) both shall be kept in lock and key arrangement, and log book should be
maintained upon SFL request
 A separate box with lock and key arrangement shall be provided near the machine for disposition
of setting pieces, if any specific requirement on preserving the setting samples by SFL, that shall
be adhered and demonstrated

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19.2 In-process monitoring and measurement

The supplier shall monitor the product process through effective implementation of SFL control
plan (or) SFL approved supplier control plan.

Operator Quality Assurance (OQA) system is recommended, however any best practice is can also
acceptable and demonstrated to the satisfaction of SFL

 Error-proof arrangement shall be periodically verified for its intended purpose and status shall be
recorded
 The tooling (work holding devices such as jigs, fixtures, chuck, jaws etc.,) shall be designed in
such a way to “prevent / detect” any missing operation from the previous operations / defective
parts
 Material input / output trays shall be provided in each machine for storage of parts
19.3 Statistical Process Control (SPC)

The supplier shall implement statistical tool for monitoring and controlling the process and product
capability for critical, key and major characteristics. These special characteristics are to be marked with
appropriate symbols of, SFL designated symbol (or) customer designated symbol
For unilateral tolerance: Ppk / Cpk shall be taken as Ppu / Cpu or Ppl / Cpl, based on tolerance specified
as minimum or maximum.

E.g: Radius R 0.50 max, So, LSL=0, USL=0.50 in this case Cpu to be taken as Cpk

19.3.1 Initial capability

Significant production run: All process capabilities shall be performed from the significant production run,
A significant production run is an uninterrupted run of 300 samples or four hours, whichever is longer. No
process parameter change is allowed during this run

Sample size requirement: A minimum of 50 samples must be taken for study from each cavity, die, tool
(or) process stream. Samples from different cavities, dies, tools (or) process streams may not be
combined / mixed unless their distribution is normal

Normality: Before a capability study is performed, the randomness and normality must be assessed by
use of histogram (or) normal probability plots

 The Initial capability requirement is, Ppk ≥ 1.67

19.3.2 On-going capability

On-going product capability shall be done on the statistically stable process,

Process Monitoring Chart (PMC) chart is acceptable (on statistically stable process), however the PMC
chart should follow the PMC rules
 On-going process capability requirement is, Cpk ≥ 1.33
 When capability index is not met, supplier shall inform SFL
 Upon SFL’s request supplier shall submit the capability study report
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19.3.3 Reaction plan, if capability not met

 If capability index is not met to the required level, till such time 100% inspection shall be done,
and the rejected parts shall be handled as per “handling of non-conforming parts” requirement
 To improve the capability, an action plan shall be drawn and shared with SFL for approval
19.4 Preventive maintenance

The supplier shall have the documented system of preventive maintenance. This shall include a
timely review of planned maintenance activities and documented action plan to address any backlog.
Action plans are to be included in the management review process.

 Preventive maintenance objectives are defined, monitored and documented

(Example OEE, MTBF, MTTR etc.)
 Records of maintenance are to be maintained at least for one year

20 Handling the non-conforming parts

The non-conforming parts shall be identified with “Rejected tag / colour marking / as per
requirement” and reason for the rejection along with the part information

 All non-conforming parts shall be moved from machine / work station on shift-wise to the
designated location
 Shall be stored in the designated location with closed container / lock and key arrangement and
must be approachable only by the authorized personnel
 The original Identification tag shall be kept along with the rejection tag
 Any containment / rework action carried out on those rejected lot, shall be approved by the
designated authority and same has to informed to SFL
 The Scrap shall be cleared on weekly basis, supplier shall dispose the scrap with proper
accounting with reason-wise and disclose it to SFL
 Corrective and preventive action shall be initiated and closed within seven working days
 Result of action taken shall be reviewed in management review meeting

21 Tooling management

21.1 Customer- owned production tooling

 SFL / SFL’s customer owned tools, moulds, Jigs & fixtures, machines, testing, inspection gauges
and equipments shall be permanently marked for part number, part description, tool number,
purchase order number & date / asset number and logo’s (if required) for identification and
traceability. If size of the tooling does not allow to capture all the information on tooling itself, at
least with tool number the identification shall be established and the link shall documented
 Declaration shall be made on the supplier letter head stating the requirements such as
guaranteed tool life, maintenance liability and authorizing SFL to take back the tooling on
demand

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 Any defects and damaged happened during usage shall be informed to SFL, not exceeding one
working day
 Unless otherwise specified, all related documents and records are to be maintained by the
supplier for the part in active plus one calendar year

21.2 Tool maintenance

The supplier shall establish and monitor the tool life to the appropriate tools. The premature tool
change over system is recommended.

If statistical process control chart is followed, the tool change shall be recorded on chart

22 Performance monitoring

22.1 Self-assessment

The supplier shall measure and monitor organization performance periodically, with some metrics
on a monthly basis for continual improvement.

SFL- recommends the metrics as such Productivity, Quality, Cost, Delivery, Safety and Morale
(PQCDSM) approach for self-assessment.

22.2 SFL rating system

SFL will provide rating for supplier on a monthly basis according to the discretion of division / plant
rating procedure. To understand more about the rating procedure, contact your respective buyer at SFL.
If any metrics found to be below the acceptable level,
 SFL give rating and weightage of the metrics is based on the severity / impact of the concern /
problem
 Supplier shall submit and initiate action plan not exceeding seven working days
 And the actions shall be completed not exceeding fifteen workings days
 Unacceptable and marginal performing suppliers, shall have to show significant improvement in
subsequent months from the month of rating got affected

Performance rating determines these following,

 Excellent performing suppliers are considered as preferred supplier and will be considered for
new business opportunities
 Good to Acceptable performing suppliers are considered for new business but are not given the
same priority as those with excellent performance
 Marginal performing suppliers can only receive purchase order for current parts and are not
eligible for the new business until their overall performance is improved
 Unacceptable performing suppliers are carefully reviewed and their work may be resourced if
they remain in this category for an extended period of time

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22.3 Second party audit by SFL

Supplier will be audited, periodically by SFL as per the schedule with prior intimation

Response to SFL audit non-conformance

 Upon completion of audit by SFL, the supplier shall provide the corrective action plan within five
working days

 Supplier shall close all the non-conformance with objective evidence closed not exceeding
maximum of fifteen working days

22.4 Re-assessment

SFL will re-assess or re-evaluate suppliers once in every three years

 If the supplier is inactive for two consecutive years

 If any change in QMS due to mergers, acquisition or affiliation
 If any consecutive customer complaints due to supplier

23 Process specific requirements

23.1 Machining, Copy turning and Forging

These operations shall be carried out in the error-proofed mechanism such as end stopper, short feed
sensor and limit switch etc.,

Raw Material heat number traceability is essential with each shipment

Appropriate gauges shall be used for monitoring and measuring the part characteristics.

23.2 Centre-less grinding

The monitoring of dressing frequency shall be triggered through the counter mechanism incorporated
with the machine or monitored on the chart.

23.3 Thread rolling

A sensor/system shall be provided for detecting / preventing the crooked thread in flat thread rolling
machine.

The practice of thread laps inspection shall be in place during setting and periodical inspection.

Threads to be protected for any damage during the handling in the machine

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23.4 Wire drawing / Cold forging / Hot forging

1. Raw Material heat number traceability is essential with each shipment coils
2. Annealing batch number traceability is essential with each shipment coils
3. Water quenching after hot forging is strictly restricted

23.5 Heat treatment

The Heat treatment supplier shall carry out the AIAG – CQI – 9: Heat treatment System Self Assessment
(HTSA) annually with latest edition, and comply with the requirement.

Upon request the supplier shall provide the heat treatment process parameters.

Re-heat treatment is not allowed for all parts, if any situation arise prior approval from SFL quality to be
obtained.

Batch wise mould shall be submitted to SFL along with the report.

23.6 Plating & Coating

The Plating supplier shall carry out the AIAG – CQI – 11: Plating System Assessment annually with
latest edition. And comply with the requirement.

The coating supplier shall carry out the AIAG – CQI – 12: Coating System Assessment annually with
latest edition. And comply to the requirement.

Upon request the supplier shall provide the process parameters.

Supplier shall have the system for not skipping any special requirement such as Hydrogen de-
embrittlement relief, lubrication etc.,

Re-Plating is not allowed for all parts, any situation arises prior approval in writing from SFL quality shall
be obtained.

Batch wise report shall be submitted along with the supply.

23.7 Plastic injection moulding

The plastic injection moulding shall carry out the AIAG – CQI – 23: Moulding System Assessment
annually with latest edition. And comply to the requirement.

Only the virgin material to be used for injection moulding of SFL parts, No re-grounded material to be
used unless otherwise specified
No other brand (or) alternate material to be used other than originally approved.

Injection moulding to done with controlled parameter only, any significant change in process parameter
shall be informed and require approval from SFL.

Any post treatment done as per SFL requirement, those shall be certified through in the identification
tags and reports.

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23.8 Rubber moulding

No other brand (or) alternate material to be used other than originally approved.

Rubber moulding to done with controlled parameter only, any process parameter change shall be
informed and require approval from SFL.

Any post treatment done as per SFL requirement, those shall be certified through in the identification
tags and reports.

23.9 Spring manufacturing

No other brand (or) alternate material to be used other than originally approved.

Stress relieving operation shall be audited with AIAG – CQI – 9: Heat treatment System Self-
Assessment (HTSA) annually with latest edition, and comply to the requirement.

23.10 Stamping / Pressing

These operations shall be carried out in the error-proofed mechanism such as end stopper, short feed
sensor and limit switch etc.,

Appropriate gauges shall be used for monitoring and measuring the part characteristics.

Necessary process controls shall be initiated to overcome the sharp edges and burrs to avoid any injury
during handling.

24 Others

Other requirement related part and process should be given on time-to-time basis that shall be followed.
And supplier shall demonstrate those upon SFL requirement / request.

25 Restricted and hazardous substance

Wherever possible supplier shall not use any restricted and hazardous substance, If SFL call for
any requirement on restricted and hazardous substance that shall be handled properly and appropriate
evidence to be provided to SFL, at least once every six months

26 Corrective Action and Preventive Action (CAPA)

26.1 Response to SFL quality complaint

Upon receipt of any SFL quality complaints / concerns / returned part test & analysis, the supplier’s
customer representative (or) any other responsible person shall initiate the following actions.

 Contact SFL team to understand the criticality and nature of concern

 Initiate the interim containment action at SFL and at supplier end
 The interim containment actions shall be completed not exceeding one working day
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 Arrive at appropriate root cause evaluation, and completed not exceeding three working days
 Initiate the corrective action and preventive action through 8D report
 Establish method of communicating within the organization and interested parties
 The complaint shall be closed not exceeding fifteen working days
 Monitor the effectiveness of the action for next three lot (or) next three months dispatches by
100% inspection, whichever is longer from the lot (or) date of complaint

26.2 Warranty Management systems

If SFL specify for the warranty requirement for the product or process, the supplier shall implement a
warranty management process. It shall include the procedure for analysis of the warranty sample and
reporting to SFL with necessary documents/evidences.

27 Penalty for non-conformance

The supplier shall oblige in accordance to the requirements defined below in addition to
requirements defined as “Handling the non-conforming part” & “Corrective and preventive Action” in this
manual

 For any non-conformance on the supplied parts, the supplier shall be carried out sorting within
one working day for the local supplier & for outstation supplier the sorting shall be carried out within
two working days

27.1 Parts non-conformance at SFL

If any non-conformance on the sub-contracted/bought out parts being supplied to SFL and noticed at any
stage, and decided by SFL to carry out sorting. For the first instance the penalty will not be deduced

 If the same non-conformance is repeated for the second time, the supplier shall carry out the
sorting and additionally a penalty of Rs. 1000/- (Rs. One thousand only) shall be deduced from
the supplier account
 If the same non-conformance is repeated for the third time, the supplier shall carry out the
sorting and additionally a penalty of Rs. 2000/- (Rs. Two thousand only) shall be deduced from
the supplier account
 If the same non-conformance is s repeated further, on each instance the supplier shall carry out
the sorting and additionally a penalty of Rs. 5000/- (Rs. Five thousand only) shall be deduced
from the supplier account
 For the sub-contracted parts, In addition to the penalty described above, the cost of part deemed
as scrap shall be deduced as the basis of,
a) For Non- recyclable / Non – reusable parts* = No. of parts X 80% of the sale value of each
part
b) For recyclable / Non – reusable parts* = No. of parts X conversion cost of each part
*- within SFL
 If the manpower is not arranged for carry out the sorting on the non-conformance within the
target time, SFL may deploy the manpower to carry out the sorting at the rate of Rs. 1000/- (Rs.

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One thousand only) per man-day and that shall be changed and deduced from the supplier
account

 For the bought-out parts, after sorting the non-solvable parts shall be send back through return
invoice

27.2 Parts non-conformance at SFL’s customer end

Supplier shall also responsible if any non-conformance at SFL’s customer end, and deemed by SFL that
the non-conformance is in lieu of supplier.

 For each instance of SFL’s customer non-conformance, a penalty of Rs. 5000/- (Rs. Five
thousand only) shall be deducted from supplier account

 If any sorting to be done, the Supplier shall arrange all sorting and other activities for the parts in
pipe line at supplier, at SFL & at SFL’s customer end

 If SFL make arrangement for sorting out the non-conformance at customer end, then cost
incurred transportation, administration, handling and other shall be deducted from supplier
account

 If SFL’s customer made arrangement for sorting out the non-conformance, than the expenses
shall be pass on to supplier plus handling charges as discretion of deciding authority

*********
Revision history
Rev. # Rev. Date Reason Rev. by

00 01st Aug 2013 Initial release Nagarajan.S

15th Sep /19th

01& 02 Revised based on Quality Forum feedback Nagarajan.S
Oct 2015

03 04th Nov 2015 Revised based on SQM awareness program feedback Nagarajan.S

Clause 27, Penalty for non-conformance based on QF

04 08th Dec 2016 @ 11th Nov 2016 outcome(Doc. Prepared by Mr. Nagarajan. S
Loganathan NP) added

Revised with reference to ISO 9001:2015 & IATF:

16949:2016- Revisited all the clauses and re- structured
with Plan-Do-Check-Act approach.
05 15th Sep 2017 Vinil .M .V
Included clauses for Leadership, Project management,
Design & development, Risk analysis, Warranty
management.

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