Automotive Steel Component

Case Study: Automotive Steel Component
Dragon Sourcing - 龙源
Your Tailored Sourcing Approach to emerging markets

© 2015 Dragon Sourcing. Automotive Case Study. 2
Objectives
Context
Client overall objectives
• Identify potential suppliers in China for:
– Deliveries to their European plant in East Europe
– Establishing a supply base in China for potential
future on-site manufacturing
• Supplier requirements:
– Long-term partner with development potential
– Cost savings in initial phase should be given, but
long term savings potential is more important
and should be obtained by supplier development
– Supplier preferably not delivering to competitors
DS Supplier Market analysis
Objectives
• Identify list of potential current and new potential
suppliers based in China to include in the RFI/RFP
process by leveraging, current Dragon Sourcing
suppliers database, the web, external databases and
various networks of experts
• Develop the RFI / RFP – jointly with the client – to
include all key supplier qualification criteria (e.g.:
financial, technology, manufacturing experience for
similar products, capability, tooling, conception and
development, corporate responsibility, quality, language
skills, others to be defined….)
• Administer RFI / RFP process to ensure as high a
return rate as possible
• Analyze responses, prices and use balance score
carding process to rank suppliers and recommend
suppliers per category.
• Provide Client with a profile for all of the recommended
suppliers
• Develop a business case with recommendations to
take advantage of potential opportunities
• Support Client with the Audits and following supplier
development

Project Timeline RFI / RFQ Process
Steps
July August Sep
W1 W2 W3 W4 W5 W6 W7 W8 W9 W10
1
Supply Market analysis: identifying capable
suppliers in China by leveraging all available
databases
2 RFI/RFP and intro letter approval
3 Develop and administer an RFI/RFP process
4 Develop jointly with AGC a balance scorecard
6 Analysis of RFI/RFP responses and ranking
7
Based on RFI, RFP; recommend to AGC
potential suppliers
8 Develop business case with recommendations
MilestonesStarted FinishedNot-started Delayed

© 2015 Dragon Sourcing. Automotive Case Study.
The first step was to develop a comprehensive understanding of the functional
requirements
Product Name Window Channel Steel Product Drawing & Picture
Quantity 300.000 p.a.
　
Current DDP price in EURO XXX
Current annual spend in EURO €XXXXXX
Material JSC270DC
Quality requirement 15ppm
Documentation required PPAP Level 3
Surface finish Plain, greased
Description Steel Channel for use in XXX
Packaging See separate packaging specification
HS Code XXXXX
Customs Duty XXXXX
4

Then, an RFI/RFP process was administered to filter out most capable
suppliers
Product and price
information
Quality Management
To: Jacy (先生）
Email : j acy@dr agonsour ci ng. com
Tel number : 021-6141 3974
Fax number : 021-6141 3966
Supplier Name
Contact Person
Title
Email
Tel
Fax
Mobile phone
Alternative Contact Person
Title
Email
Tel
BUSINESS INFORMATION
Is your company a manufacturer,
Which year was your company founded?
What is the workfloor size (m²)?
How many employees do you have?
Capital in million RMB
General Information
CONTACT INFORMATION
Contact Information & Intend To Respond
公司信息　及　答复意向
Please, complete this "Intent to Respond" page print and fax before December 25, 2009
于12月25日前请填写此答复意向, 打印后传真
Dragon Sourcing Ltd. 龙源有限公司
Contact detail
information
Business
information
Domestic Europe USA Other% of turnover exported to
5

RFI / RFQ response rate
Pre-Selection by
phone
No manufacturing capability /
traders

17 suppliers submitted their offers and will be rated using balance scorecard
Xinjiang
Gansu
Jiangxi
Zhejiang
BEIJING
Jiangsu
Guangxi
Hunan
Hubei
Qinghai
Ningxia
Shaa
nxi
Anhui
Fujian
Neimongu
Shanxi Shandong
Xizang
Sichuan
Yunan
Guizhou
Henan
Jilin
Liaoning
Hebei
Guangdong
Gansu
SHANGHAI
Hong Kong
Taiwan
Heilongjiang
Supplier name Region City
Supplier 1 Jiangsu Changshu
Supplier 2 Chongqing Chongqing
Supplier 3 Guangdong Dongguan
Supplier 4 Guangdong Dongguan
Supplier 5 Zhejiang Ningbo
Supplier 7 Guangdong Shenzhen
Supplier 8 Jiangsu Taicang
Supplier 10 Zhejiang Wenzhou
Supplier 11 Hebei Shijiazhuang
Supplier 12 Jiangsu Wuxi
Supplier 14 Guangdong
Shenzhen
Supplier 16 Shanghai Shanghai
CHONGQING

Part Price 1 (with grease)
DDP Eastern Europe price via sea freight
Current Client DDP price
Lower than current Client DDP price
Competitiveness to improve
Up to 16% Saving on DDP Price in initial RFQ

Company Profile
Supplier 3
GENERAL INFORMATION
Supplier Name Supplier 3
City XXX
Province Guangdong
Contact person Ms. Sunny
Job title Sales Manager
Email XXX
Phone number XXX
Fax number XXX
Mobile XXX
Website XXX
BUSINESS INFORMATION
Found Year 2005
Manufacturer, distributor, or agent Manufacturer
Capital in million RMB 30
Work floor size (m²) 23,500
Number of employees 403
License for self import/export (Yes/No) Yes
Years of export experience 5
CAR WINDOW CHANNEL PRODUCTION
Years of experience in car window channel 5
Production capacity per year in pcs 1,000,000
Do you sell to car manufacturers Yes
TURNOVER IN MILLION RMB
2009 2008 2007
55 45 50
% SALES EXPORT TO MAIN MARKETS IN 2009 = 90%
EU (%) US (%) Japan (%) Rest of the world (%)
10% 30% 30% 20%
CUSTOMER BASE
Customers Country Industry % of sales
1. XXX XXX XXX
2. XXX XXX XXX
3.
4.
5.
QUALITY & ENVIRONMENTAL REGISTRATION
Certificate Yes/No
ISO 9001 No
ISO 14001 Yes
ISO/TS16949 ： 2002 Yes
COMPLIANCE WITH LOCAL LAW
Do you adhere to all rules and regulations in respect to child labour? Y
What is the age of your youngest and older employee? 19 & 60
How many hours per week, including overtime are working your employee on a regularly
scheduled basis?
48 hours
Are all your employees working in a safe, healthy and clean working place? Y
Do you adhere to all rules and regulations in respect to environmental issues? Y
Are you willing to sign a confidentiality agreement? (Y/N) Y
Scoring
Ranking out of 16
Factory pics Y

Company Profile
Supplier 3
PRODUCTION
Material Description (dimension, size…special technology..) Process Actual Production in 2009 (Units)
spcc spcd Roll Forming In house
st12 st13 st14 Stamping, cutting In house
dc01 dc02 dc03 dc0 Welding In house
Q195 Q235 Electroplating Outsourced
EQUIPMENT
Equipment Qty Description
Roll-forming line 5
Stamping machines 20
Spot welding machines 17
Bending machine 1
QUALITY CONTROL
How many QC people in your company? 30
What quality control equipment do you have in-house? Tensile strength testing machine, Salt spraying tester, coat testing machine
Do you accept the 3rd party QC? Yes
How long do you keep QC record form? 3 years

Company Profile
Supplier 3
FACTORY PICTURES

Scoring and ranking of the identified suppliers.
Suppliers ranked from 1 to 9 were selected for auditing
Rank Supplier Name
Company
background
Business info
Corporate
responsibility
Production &
Technology
Quality Mgt Cooperation Price
Score out of
100
5% 15% 5% 15% 15% 5% 40%
1 Supplier 1 3.67 5.69 5.00 12.75 9.38 2.88 40.00 79.35
2 Supplier 2 5.00 14.25 5.00 12.75 12.75 3.75 20.00 73.50
3 Supplier 3 4.75 12.94 5.00 12.75 10.50 2.88 10.00 58.81
4 Supplier 4 5.00 14.25 5.00 9.75 10.50 2.88 10.00 57.38
5 Supplier 5 4.75 7.13 5.00 12.75 12.75 2.00 10.00 54.38
6 Supplier 6 2.08 5.13 5.00 9.25 7.13 2.88 20.00 51.46
7 Supplier 7 2.67 11.81 5.00 10.25 8.25 2.88 10.00 50.85
8 Supplier 8 2.58 12.75 5.00 9.75 6.00 2.88 10.00 48.96
9 Supplier 9 2.33 7.44 5.00 6.00 4.88 2.88 20.00 48.52
10 Supplier 10 2.67 10.81 5.00 10.00 13.88 3.75 0.00 46.10
11 Supplier 11 3.67 11.56 5.00 12.00 10.50 2.88 0.00 45.60
12 Supplier 12 3.42 13.31 5.00 9.00 10.50 2.88 0.00 44.10
13 Supplier 13 4.25 12.31 5.00 6.50 12.75 2.88 0.00 43.69
14 Supplier 14 4.25 7.38 5.00 12.75 8.25 2.88 0.00 40.50
15 Supplier 15 2.58 10.25 5.00 10.50 8.25 2.88 0.00 39.46
16 Supplier 16 2.58 11.75 5.00 7.75 6.00 2.88 0.00 35.96
17 Supplier 17 2.08 10.63 5.00 7.50 6.00 2.88 0.00 34.08

Scoring and ranking of the identified suppliers
Supplier Ranking
0
10
20
30
40
50
60
70
80
90
D
onghua
C
haoda
Tianqiu
Zhongjing
Xinshidai
Junrui
Talent
C
adic
M
eierte
C
hiyip
R
adiant
Jinyi
Sinohyde
Jingle
Tuojin
Kangfeng
Yuanjie
Price Competitiveness
Cooperation
Quality Management
Production & Technology
Corporate Responsibility
Business Information
Company Background
79
74
59 57
54 51 51 49 49
46 46 44 44 41
39 36 34
Recommend suppliers:
1. Supplier 1, high level of experience on the production of similar components but no export experience
2. Supplier 2, big manufacturer, satisfactory export experience
3. Supplier 3, very familiar with this type of component, very big supplier in terms of sales, factory size and number
of employees
4. Supplier 4, biggest in term of annual sales and factory size
5. Supplier 5, solid experience in automotive industry
6. Supplier 6-9, also suggested to be shortlisted to run preliminary rounds of negotiations

VDA 6.3 Audit of shortlisted suppliers

Short-listed suppliers are audited per VDA 6.3 process audit norms to assess
long-term partnership opportunities
Product Creation Process – Series Production Points
Questions - Suppliers/purchd. Material
1.1 Are only approved and qualified sub-contractors used?
1.2 Is the quality of purchased parts assured?
1.3
Is the quality performance evaluated and are improvement actions initiated in case of nonconformities
to the requirements?
1.4
Are continuous improvement activities and objectives for products and processes agreed with the
sub-contractors and implemented?
1.5
Are the necessary releases available for all supplied series products and are the required
improvement actions implemented?
1.6 Are the agreements relating to products supplied by the customer adhered to?
1.7 Are the stock levels of purchased material in line with the production requirements?
1.8 Are purchased materials and internal surpluses delivered and stored appropriately?
1.9 Is the staff qualified for their individual tasks?
Personnel, Qualification
2.1
Are responsibilities and authority assigned to the personnel who control the product and process
quality?
2.2
Are responsibilities and authority assigned to personnel with regard to the production equipment and
the production environment?
2.3 Are the employees qualified to complete the defined tasks and is their qualification maintained?
2.4 Does a personnel plan exist, which includes replacement guidelines?
2.5 Is there a system for employee motivation and is it used effectively?
Machinery / equipment
3.1
Does the available production equipment and tooling ensure that the quality requirements for the
product are met?
3.2
Can the quality requirements be effectively monitored with the measurement and inspection
equipment used?
3.3 Are the work and test stations laid out according to the process requirements?
3.4 Are the relevant details fully completed and adhered to in the production and inspection documents?
3.5 Is the appropriate equipment and tooling available to support product changeover?
3.6 Is a release provided for start of series production and are set up data and deviations recorded?
Transportation / Parts Handling/ Storage/ Packaging
4.1
Are the production volumes planned in accordance with customer demand and conveyed as planned
to the next production step?
4.2
Are products and components appropriately stored and are the transportation means and packaging
equipment coordinated with the specific characteristics of the products/components?
4.3 Are reject, rework, set-up parts and excess material conscientiously separated and identified?
4.4 Is the material and parts flow secured against mixing/confusion and is traceability ensured?
4.5 Are tools, facilities, and inspection, test and measuring equipment stored appropriately?
Objectives of Initial Audit
• Meet top management and sales
management teams
• Present order details
• Refine supplier offer understanding
• Understand organisation
• Validate manufacturing capabilities
• Validate Quality Management System
Topics
• General Management
• HR Management
• Order management
• Shipping / packaging
• Planning process
• Goods flow
• Procurement
• Production
• Quality…

Production Process Audit (Excerpt) – Audits are regularly repeated during
supplier development in order to ensure compliance
Questions - Suppliers/purchd. material Points
1.1
Are only approved and qualified sub-contractors used?
8
1.2
Is the quality of purchased parts assured?
8
1.3 Is the quality performance evaluated and are improvement actions
initiated in case of nonconformities to the requirements?
6
1.4 Are continuous improvement activities and objectives for products and
processes agreed with the sub-contractors and implemented?
n.a.
1.5 Are the necessary releases available for all supplied series products and
are the required improvement actions implemented?
8
1.6 Are the agreements relating to products supplied by the customer
adhered to?
6
1.7 Are the stock levels of purchased material in line with the production
requirements?
10
1.8
Are purchased materials and internal surpluses delivered and stored
appropriately?
6
1.9 Is the staff qualified for their individual tasks? 6
Personnel, Qualification
2.1.1
Are responsibilities and authority assigned to the personnel who control
the product and process quality?
8
2.1.2
Are responsibilities and authority assigned to personnel with regard to the
production equipment and the production environment?
6
2.1.3
Are the employees qualified to complete the defined tasks and is their
qualification maintained?
8
2.1.4 Does a personnel plan exist, which includes replacement guidelines? 6
2.1.5 Is there a system for employee motivation and is it used effectively? 6
Machinery / equipment
2.2.1
Does the available production equipment and tooling ensure that the
quality requirements for the product are met?
8
2.2.2
Can the quality requirements be effectively monitored with the
measurement and inspection equipment used?
8
2.2.3
Are the work and test stations laid out according to the process
requirements?
6
2.2.4
Are the relevant details fully completed and adhered to in the production
and inspection documents?
8
2.2.5
Is the appropriate equipment and tooling available to support product
changeover?
8
2.2.6
Is a release provided for start of series production and are set up data
and deviations recorded?
n.a.
Transportation / Parts Handling/ Storage/ Packaging Points
2.3.1
Are the production volumes planned in accordance with customer
demand and conveyed as planned to the next production step?
10
2.3.2
Are products and components appropriately stored and are the
transportation means and packaging equipment coordinated with
the specific characteristics of the products/components?
10
2.3.3
Are reject, rework, set-up parts and excess material
conscientiously separated and identified?
8
2.3.4
Is the material and parts flow secured against mixing/confusion
and is traceability ensured?
8
2.3.5
Are tools, facilities, and inspection, test and measuring
equipment stored appropriately?
6
Failure analysis, corrective actions, continuous improvement
(CIP)
2.4.1
Are quality and process data completely recorded and in such a
manner that they can be analysed?
6
2.4.2
Are quality and process data statistically analysed and are
improvement programs introduced from the analysis?
0
2.4.3
Are the causes analysed and is corrective action initiated in the
event of any deviations from product and process requirements?
0
2.4.4
Is the required corrective action implemented according to the
deadlines and is its effectiveness verified?
n.a.
2.4.5 Are processes and products regularly audited? n.a.
2.4.6 Are products and processes continually improved? n.a.
2.4.7
Are targets set for the product and process and is their
achievement followed up?
n.a.
Questions - Customer service / customer satisfaction
3.1 Are the customer requirements regarding the QM system,
product and process complied with?
10
3.2 Is customer service guaranteed and are complaints recorded and
evaluated?
n.a.
3.3 Are there contingency plans for ongoing supply of parts and
immediate actions taken for problems?
10
3.4 Are all non-conformities analyzed and improvement actions
implemented?
n.a.
3.5 Are the personnel qualified for their individual tasks? 8
3.6 Is the verification for D/TLD-parts and additional legal
requirements evaluated by regular internal audits?
n.a.
3.7
Does the packaging and the identification of the containers as
well as the data exchange (B2B-Platform) comply with the
customer requirements?
8

VDA 6.3 Process Results are captured
VDA
6.3*
2.1 1.1
Istheprojectorganisation(projectmanagement)
establshedandaretasksandauthoritiesspecifiedfor the
projectmanagementandteammembers?
2.2* 1.2
Arethenecessaryresources plannedandavailablefor the
developmentof theprojectandarechangeshighlighted?
2.3 1.3
Isthereaprojectplanandhasthisbeenagreedwiththe
customer?
2.4 1.4
Ischangemanagementwithintheprojectensuredbythe
projectmanager ?
2.5* 1.5
Ischangemanagementwithintheprojectensuredbythe
projectmanager ?
2.6 1.6
Isthereaqualityplanintheproject?Isthisimplemented
andregularlymonitoredforcompliance?
2.7* 1.7
Isanescalationprocessestablishedandisthiscontrolled
effectively?
3.1 2.1
Aretheproduct-specificandprocess-specific
requirementssetout?
3.2* 2.2
Ismanufacturingfeasibilityassessedonthebasisof the
requirementsestablishedfor theproductandprocess,
onacross-functional level ?
Questions potential Analysis P1 Assessment Remarks
Project Management
Planning the product & process development
4.1 3.1
AretheDesignFMEA/ProcessFMEAdrawnupandup-
datedinthecourseof theprojectandarecorrective
actionsspecified?
4.2 3.2
Arethenecessarydemonstrationsof suitabilityand
releasesavailablefortherelevantphasesof theproject,
basedontherequirements?
4.3 3.3
Isthetransferof theprojecttofull productionsecurein
termsof theproductlaunch?
5.1* 4.1
Areonlyapprovedandquality-capablesuppliers
appointed?
5.2 4.2
Arethecustomer'srequirementstakenintoaccountinthe
supplychain?
5.3 4.3
Arethenecessaryapprovalsavailableforout-sourced
productsandservices?
5.4* 4.4
Istheagreedqualityof out-sourcedproductsandservices
guaranteed?
5.5* 4.5
Areincominggoodsstoredintheappropriatemanner?
Carrying outthe product& process development
Suppliermanagement

VDA 6.3 Process Results are captured
What goes into the process? Process input
6.1.1* 5.1.1
Has thetransfer of theproject fromdevelopment tofull
production been completed ?
6.1.3 5.1.2
Areupstreammaterialsstored in theappropriatemanner
and dothetransportmethods/packing systemstake
accountof thespecial
characteristicsof upstreammaterials?
Work content / process sequence (are all production processes controlled ?)
6.2.1* 5.2.1
Basedon theproduction control plan,areall therelevant
datafullylisted in theproduction and test/inspection
documentation ?
6.2.3* 5.2.2
Can thecustomer'sproduct-specificquality requirements
beachieved with theproduction facilities?
6.2.4* 5.2.3
Aresignificant characteristicscontrolled in production ?
6.2.5 5.2.4
Arescrap,reworkand setting parts,as well as residual in-
housequantities properlyseparated and identified?
6.2.6 5.2.5
Istheflowof materials and components secured against
mix-ups/incorrectidentification ?
Process support / personnel resources
6.3.1 5.3.1
Aretheoperators abletocarryout their allotted tasksand
aretheir qualifications keptup-to-date?
Material resources
6.4.1 5.4.1
Arethemaintenanceand overhaul of machines /facilities
controlled on apreventivebasis?
6.4.2* 5.4.2
Can thequalityrequirements bemonitored effectivelywith
themeasurement,checking and inspection equipment
used ?
6.4.3 5.4.3
Arethework-areasand test /inspection stationssuitable
for requirements ?
6.4.4 5.4.4
Aretools,equipment and test/inspection devicesstored
appropriately ?
Prozess analysis / Production Process effectiveness level
6.5.1 5.5.1
Aretargets set for product and process ?
6.5.3* 5.5.2
If deviations fromproductand process requirements
occur, arethecauses analysed and correctiveactions
checked for effectiveness ?
6.5.4* 5.5.3
Areprocesses and products audited regularly ?
What should the process produce ? (output)
6.6.1* 5.6.1
Arethecustomer's requirements satisfied in terms of
product and process ?
7.1* 6.1
Arethecustomer's requirements satisfied in terms of QM
system, product (on delivery) and process ?
7.3* 6.2
Is thesupply of components secure?
Numbers of classifications / assessments (total 35questions)
Fully approved supplier min.29questions (>80%) green
max. 7questions yellow
noquestion red
Controlled supplier min.22questions (>60%) green
max. 11questions yellow
max. 3questions red
Barred supplier less then 22questions green [green]requirements fullfilled
morethan 11questions yellow [yellow] requirementspartly fullfilled
morethan 3questions red [red] requirments not fullfilled
Overall Classification
[Grün] Forderungen erfüllt
[Gelb] Forderungen teilweise erfüllt
[Rot] Forderungen nicht erfüllt
DieFragekann nichtuneingeschränktmit jabeantwortet werden, das Ziel (Produkt /Prozess) ist nur mit
zusätzlichen Maßnahmen erreichbar.
DieFragemuss mit nein beantwortet werden, das Ziel (Produkt /Prozess) ist nicht erreichbar.Es besteht
das potentielleRisikoeines Ausfalls.
Note: themaximumnumber of questions not assessed ist limited to3
green
DieFragekann uneingeschränktmit jabeantwortet werden. Es besteht kein potentielles Risiko.
If aquestions istnot answered,areason for this mustbestated.
Customer support / customer satisfaction / service

Audit outcome is summarized in a rated profile of each supplier
Audit Scoring Description Result
92-100% Qualified
82-91% Conditionally qualified
Below 82% Not qualified Correctiv
e Actions
Supplier selected for supplier
development project, due to
excellent cost structure and
willingness to cooperate
19

A detailed corrective action plan was developed for the selected suppliers.
Improvements are tracked by Dragon Sourcing with follow-up audits
Nr. Finding Supplier Action Result follow up audit Nr 1 Result follow up audit Nr 2
1 NOK part areas, red boxes
too small, set-up "locked
prison". there are parts not
identified in many places
Set-up NOK part areas
on shop floor clearly
identified and seperated
from the process flow to
avoid mixing with OK
parts.
Red boxes have been
implemented for NOK parts,
but still need to improve
consistency in the process
and red boxes for NOK
parts should be available at
each production step for all
the parts
Records available for NOK
parts
The red boxed is
implemented. On the label
there should be detailed
reasons for further analysis.
2 Calibration, identification
and condtion of control jigs
Improve by using "hard
stickers", change length
measurement method at
roll-forming, some
calipers have missing
identification and
calibration traceability.
Store jigs and maintain
properly.
On the production floor; all
the control jigs have a clear
label with description and
calibration date and
calibration duration (12
months)
Except devices in the
laboratory such as scales
(mechanical & electronic)
and machines aiming to test
chemical composition of raw
material
The label is ok. The gauge
used in inspection is not
correct, it need be improved.

Overall methodology & 7-step process
In production quality is regularly monitored by Dragon Sourcing during the
production and before shipment
• Dragon Sourcing teams are trained to follow a
7-step process to execute Quality inspections
• Sampling and criteria requirements are
detailed in a specific document for customer
approval
• On-site data are recorded in a specifically
designed Excel table
• Inspections are documented in a report
submitted to customer
• Action plans are defined in order to improve
product quality
Sampling & Criterias
Excel recording tool
Checkitem #
Box #
Marking Inner carton Mug Quantity Mug heigth
Mug upper
diameter
Mug lower
diameter
Wall
thickness
Mug weigth Material type Quality
1 OK OK 48 104.3 64.9 3.6 326 OK OK
2 OK OK 48 103.4 64.5 4.2 346 OK OK
3 OK OK 48 104 64.6 3.9 344 OK OK
4 OK OK 48 104.6 64.8 3.8 317 OK OK
5 OK OK 48 104.3 57 3.6 308 OK OK
6 OK OK 48 104.8 61 3.8 317 OK OK
7 OK OK 48 103.7 64.5 3.9 328 OK OK
8 OK NO 48 103.8 62 3.9 345 OK OK
9 OK OK 48 103.3 64.1 3.1 322 OK OK
10 OK OK 48 103.2 63.4 3.7 325 OK OK
11 OK OK 48 104.4 64.8 3.9 317 OK OK
12 OK OK 48 102.3 64.2 3.2 316 OK OK
13 OK OK 48 105.4 63 4 316 MO OK
14 OK OK 45 105.6 65 4 322 OK OK
15 OK OK 48 106.3 65.6 4.1 357 OK OK
16 OK OK 48 103.4 65.5 3.9 311 NO OK
17 OK NO 48 104.7 64.1 3.8 300 OK OK
18 OK OK 48 104 60 3.8 342 OK OK
21

Supplier performance is closely monitored and new potential suppliers regularly
audited in order to manage the supplier for continuous improvement
Supplier performance
management
Alternative sourcing opportunities
monitoring
Overall performance
Q1 Q2 Q3 Q4
　　
Potential
Supplier
1
Potential
Supplier
2
Potential
Supplier
3
Current
Supplier
Price
Prod. 1 26.4 23.8 24.9 24.6
Prod. 2 36.1 33.8 34.9 33.7
Prod. 3 13.4 15.1 12.2 12.8
Prod. 4 40.2 38.1 41.3 38.4
Region Jiangsu Zhejiang Shanghai Shanghai
Turnover (M€) 6 14 8 19
Staff 350 700 430 880
Capabilities 100/day 120/day 75/day 140/day
Sample quality N/A Good N/A Good
Cooperation Good Good Average Good
Potential supplier assessment
Potential Supplier 1 Potential Supplier 2 Potential Supplier 3 Current Supplier
Competitivity Capabilities Motivation
22

Annex

VDA 6.3- Audit Contract
Audit Contract VDA 6.3-2010
Client: XXX
Audited Party:
Reason for Audit:
Audit Objective:
Audit Variant:
oInternal Audit oPotential Analysis
oExternal Audit oSpecial Audit
Audit Location:
oInternal Audit oexternal _________________________________
Audit Team:
Process Specialist(s):Lead Auditor:
Auditors:
Audit Extent:
Prosesses: Products:
Manufacturing Locations: Interfaces:
Outside Processes:
Audit Date
Desired Date: Shifts:
Auditperiod:
Date of the Contract
Essential Documents (test/inspections regulations, contracts, important agreements, cost stipulations, etc.)
History (complaints, rejects, delivery performance, project status)
Remarks (background information)

VDA 6.3- Audit Report
VDA 6.3-2010 Audit Report: Assessment of Quality Capability
Supplier: Client: Date:
Supplier No.:
Reason for
contract: Contract No.:
Location:

Process/Product
Assessment
index
Achieved Classified
Findings / requirements
Overall Process P2 bis P7 EG Highlights
Product group
1 EPN
2 EPN
3 EPN
4 EPN
5
Classification scale: A = 90-100 % (Q-cabable); B = > = 80 - 90 % (conditionallyt Q-capbable); C
= 0 - < 80 % (not Q-capable) Areas of improvement

Audit history / Certificates
Audit basis Date Carried out Result

Participants: Distribution to:

Timing for improvement plan:
For actions see 'Improvement program' and/or 'Immediate actions'

Lead Auditor Co-Auditor signed for Organisation

VDA 6.3- Overview of Results
Supplier: Client:
Assessment Elements / Process Stages Assessment after Process Analysis (mean value, process stage E 1 - n) and
generic Baseline
Target Target
Minimum requirement 80 90 Minimum requirement 80 90
per assessment element per assessment element
Assessment elements /
Process stages
pre-
audit actual Assessment elements
pre-
audit actual
Project Management
P 2 89.0% nb
Process input
EU 1 58.0% nb
Planning Product/Process
P 3 60.0% nb
Process sequence
EU 2 75.0% nb
Carrying out
Product/Process P 4 80.0% nb
Personnel support
EU 3 40.0% nb
Supplier Management
P 5 95.0% nb
Material resources
EU 4 95.0% nb
Prozess  Analysis
P 6 70.0% nb
Proces effectiveness level
EU 5 85.0% nb
Customer Satisfaction
P 7 90.0% nb
Process result
EU 6 85.0% nb
Process step 1: E 1 85.0% nb
Transport / parts handling
/ storage EU 7 60.0% nb
Process step 2: E 2 40.0% nb Generic Baseline
Process step 3: E 3 95.0% nb Process responsiblity PR 80.0% nb
Process step 4: E 4 nb Target orientation TO 70.0% nb
Process step 5: E 5 nb Communication CO 70.0% nb
Process step 6: E 6 nb Risk orientation RI 75.0% nb
Process step7: E 7 nb
Process step 8: E 8 nb Overall Compliance EG 78.9% nb
Process step 9: E 9 nb
Process step 10: E 10 nb
60 80 90 10070 80 90 100 60 70
Erfüllungsgrad
Zuordnung zu
Produktgruppen
Erfüllungsgrad
Product group 1
Product group  2
Product group  3
Product group  4
Product group  5

VDA 6.3- Assessment Matrix 1
Supplier: Client:
Development
2 Project Management Achivement level %
2.1 2.2* 2.3 2.4 2.5* 2.6 2.7*
nb nb nb nb nb nb nb EPM
3 Planning Product/Process Development
Product Process
3.1 3.2* 3.3 3.4 3.5 3.1 3.2* 3.3 3.4 3.5
nb nb nb nb nb EPdP nb nb nb nb nb EPzP EPP
4 Carrying out Product/Process Development
Product Process
4.1 4.2 4.3 4.4 4.5* 4.6 4.7 4.8 4.9 4.1 4.2 4.3 4.4 4.5* 4.6 4.7 4.8 4.9
nb nb nb nb nb nb nb nb nb EPdR nb nb nb nb nb nb nb nb nb EPzR EPR
Full Production
5.1* 5.2 5.3 5.4* 5.5* 5.6 5.7
5 Supplier Management nb nb nb nb nb nb nb ELM
6 Process Analysis Production
6.1.1* 6.1.2 6.1.3 6.1.4 6.1.5 6.2.1* 6.2.2 6.2.3* 6.2.4* 6.2.5 6.2.6 6.3.1 6.3.2* 6.3.3 6.4.1 6.4.2* 6.4.3 6.4.4 6.5.1 6.5.2 6.5.3* 6.5.4* 6.6.1* 6.6.2 6.6.3 6.6.4
ocess step 1:
nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb E1
ocess step 2:
ocess step 3:
ocess step 4:
ocess step 5:
ocess step 6:
ocess step7:
ocess step 8:
ocess step 9:
ocess step 10:
sessment of Subelements of the Process analysis (mean value step 1 - n)
1.1 1.2 1.3 1.4 1.5 2.1 2.2 2.3 2.4 2.5 2.6 3.1 3.2 3.3 4.1 4.2 4.3 4.4 5.1 5.2 5.3 5.4 6.1 6.2 6.3 6.4
nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb nb EPG
EU1 EU2 EU3 EU4 EU5 EU6
7.1* 7.2 7.3* 7.4 7.5 7.6
7 Customer Support / Customer Satisfaction / Services nb nb nb nb nb nb EK
nb
nb
nb
nb
nb
nb
nb
nb
nb
nb
nb
nb
nb
Eing ab e: Es sind nur folgende Werte erlaubt:
nb
nb
nb nicht bewertet
10 Forderungen voll erfüllt
8 Forderungen überwiegend erfüllt
6 Forderung teilweise erfüllt
4 Forderungen unzureichend erfüllt
0 Forderungen nicht erfüllt
5 Process Effectiveness
Level
6 Process Result / Output
nb nb
nb
nb
1 Process Input 2 Work Content / Process Sequences 3 Personnel Support 4 Material Resources
nb
nb
nb
nb nb nb nb

7 Transport and Part Handling Generic Baseline
6.1.2 6.1.3 6.1.4 6.2.5 6.2.6 6.4.4 6.6.2 6.6.3 G 1 G 2 G 3 G 4
PR TO CO RI
nb nb nb nb nb nb nb nb nb nb nb nb
6.1.2 6.1.3 6.1.4 6.2.5 6.2.6 6.4.4 6.6.2 6.6.3
nb nb nb nb nb nb nb nb
Transport, parts handling EU7 nb

P7CustomerSupport/CustomerSatisfaction/Services nb nb nb nb nb nb EK nb nb nb nb
AchivementlevelEPG by Product GroupsElementP6[%](meanvalueEx-En)
Product group OverallAchivementLevelEPN [%]by Achivementlevel[%]for PV ZI KO RI
Process steps ProductGroups GenericBaseline nb nb nb nb
EPGN[%]
Achivement level Classified
befor SOP (Part A)
after SOP (Part B)
Classification results (A, B, C) must be
comment: "n.b." = question was not evaluated nb Green fields for entering nb nb nb blue, yellow and red fields will be calcuated entered manually, taking into account the downgrading rule!
OverallAchivementLevelEG[%]:
2105 4711
nb
E1;E3;E4;E9 E1;E3;E6;E7;E9;E10
nb EPN [%]
Classified
nb
ED [%] nb
EP [%] nb
2105 nb
4711 nb
Product Group
nb
Classified

VDA 6.3- Improvement Program 1
Supplier: Client:
To be completed by the auditor to be completed by the audited organisation
A Development
P 2 Project Management
2.1 nb
2.2* nb
2.3 nb
2.4 nb
2.5* nb
2.6 nb
2.7* nb
P 3 Planning Product/Process Development
Product
3.1 nb
3.2* nb
3.3 nb
3.4 nb
3.5 nb
Process
3.1 nb
3.2* nb
3.3 nb
3.4 nb
3.5 nb
Effectiveness
Pos.
Quest
Nr.
Weaknesses, recommended actions,
findings
Points
Actions and cause analysis by the
organisation
Timing Responsib.

VDA 6.3- Improvement Program 2
P 4 Carrying out Product/Process Development
Product
4.1 nb
4.2 nb
4.3 nb
4.4 nb
4.5* nb
4.6 nb
4.7 nb
4.8 nb
4.9 nb
Process
4.1 nb
4.2 nb
4.3 nb
4.4 nb
4.5* nb
4.6 nb
4.7 nb
4.8 nb
4.9 nb
B Full Production
P 5 Supplier Management
5.1* nb
5.2 nb
5.3 nb
5.4* nb
5.5* nb
5.6 nb
5.7 nb
P 6 Process Analysis Production
Process step 1:
1 Process Input
6.1.1* nb
6.1.2 nb
6.1.3 nb
6.1.4 nb
6.1.5 nb
2 Work Content / Process Sequences
6.2.1* nb
6.2.2 nb
6.2.3* nb
6.2.4* nb
6.2.5 nb
6.2.6 nb
3 Personnel Support
6.3.1 nb
6.3.2* nb
6.3.3 nb
4 Material Resources
6.4.1 nb
6.4.2* nb
6.4.3 nb
6.4.4 nb
5 Process Effectiveness Level
6.5.1 nb
6.5.2 nb
6.5.3* nb
6.5.4* nb
6 Process Result / Output
6.6.1* nb
6.6.2 nb
6.6.3 nb
6.6.4 nb
P 7CustomerSupport /CustomerSatisfaction/Services
7.1* nb
7.2 nb
7.3* nb
7.4 nb
7.5 nb
7.6 nb

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