SQA Manual

Lucas TVS Ltd

Lucas-TVS
Supplier Quality Assurance
Lucas TVS /SQA

Issue: 1 25.10.17

SUPPLIER QUALITY ASSURANCE

Appreciation Alignment

Awareness Action

Advancement

Partner Perform Progress

Lucas-TVS Ltd
Revision : 1, Date 04.04.2018 Page 1
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Lucas TVS /SQA
Supplier Quality Assurance
Lucas TVS Ltd Issue: 1 25.10.17

Contents
Page.No
 Foreword 4
 Quality policy 5
 Environmental, Health And Safety Policy 6

Part - A
1. Introduction 9
2. Supplier selection and approval process 12
3. New part development process 16
4. Development of PFD, PFMEA, Control Plan and Operational Standards 22
5. Validation of Production aids 26
6. Calibration system 30
7. Measurement system analysis 34
8. Process capability 38
9. Management of Limit samples 42
10. Product approval process 46
11. Purchasing system 56
12. Scheduling system 60
13. Guidelines for container selection 64
14. Incoming inspection control at LTVS 68
15. Handling of rejections at LTVS & field complaints 72
16. Supplier performance – Q&D Rating 76
17. Implementation of changes 82
18. Control of LTVS supplied tools / equipment 86
19. Sub-supplier management 90
20. Supplier QMS requirements 94
21. Supplier EHSMS requirements 96
22. Supplier audits 98
23. Training and up-gradation of Operator’s skills 102
24. Records and retention periods 106
25. Traceability 108
26. P- Chart 116

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Page.No

27. Value Engineering and Innovation 120

28. Shop Floor Controls 124
29. Kanban 130
30. Initial Production Control 134
31. Statutory and Regulatory requirements 137
32. Customer specific requirement 139

Part – B
Guidelines

a. PFMEA 147
b. Measurement System Analysis 173
c. Process Capability Study 185
d. Procedure for calculating Process Capability 189
e. Agreement of Inspection 197
f. Procedure for plotting P- Chart 203
g. X-bar – R Control Chart 203
h. Target Area Control ( TAC ) chart 213
i. Total Quality Management 215
j. Total Productive Management 225
k. Lean Manufacturing 238
l. Lucas –TVS Electrical Suppliers’ Association (LESA) 241

33. Annexure 245

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Date 25.10.2017

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QUALITY POLICY

POLICY

We are committed to achieving ever increasing levels of Customer satisfaction through continual
improvements to the Quality of our Products and Services by adopting and continually
improving an effective Quality Management System.

It will be our endeavor to increase Customer trust and confidence in the label
“Made by Lucas-TVS”.

To achieve the above we shall

 Always align with all customer requirements.

 Promptly and permanently resolve customer concerns.
 Achieve operational excellence by investing in new technology for products and processes.
 Build quality in the design of our products, processes and materials to enhance and lead the
industry on product dependability and reliability.
 Enhance employee performance through training, motivation and small group activities.
 Comply with all applicable statutory & regulatory requirements.
 Practice prevention principles and continual improvement as a way of life in all activities
 Inculcate the practice of “ Do it Right first time”

Revision : 3
Date : 18.10.17 JOINT MANAGING DIRECTOR

OBJECTIVES

 Achieving OE Customer line rejections less than 10 PPM

 Continual reduction of warranty returns
 Providing warranty services to customers within 24 hrs of receiving the complaints
 Deliver products to customers in right quantity on time, every time

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Supplier Quality Assurance
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AMENDMENT RECORD
Chapter Issue No /
S.No Date Page No Beirf description of change
Ref Rev.No
Manual released incorporating IATF
1 25.10.17 All All requirement 1/0
2.7 & Q&D rating implemented instead of
2 04.04.18 16 76 to 81 QCDS rating 1/1
Customer specific requirement added (
3. 05.3.19 32 138 to 144 WABCO) 1/2

PART - A

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1. INTRODUCTION

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1. Introduction

1.1 Purpose

Purpose of this manual is to

a. Communicate to all our suppliers regarding Lucas-TVS expectations and requirements for
assuring quality of parts / materials supplied .
b. Specify the procedures and documents to be followed by suppliers to achieve “Zero Defect
“ supplies, consistency in quality, on time delivery, competitive cost , timely service and
other requirements of Lucas-TVS.

1.2 Scope

Applies to all Parts, Sub- Assemblies and Raw materials Supplied to Lucas-TVS by Suppliers.

1.3 Supplier Quality Assurance flow chart

Supplier Quality Assurance requirements are described in the flow chart ( Refer page : 11 )

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1.3 Supplier Quality Assurance flow chart

2. SUPPLIER SELECTION AND

APPROVAL PROCESS

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2. Supplier selection and approval process

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Supplier selection and approval process

Objective: To explain the procedure for supplier selection and approval for a totally a new
business and adding new business to the existing suppliers.
Supplier Responsibilities :
 Review of Lucas-TVS Supplier evaluation check list
 Submitting filled-in Supplier evaluation check list to Lucas-TVS
 Readiness for on-site assessment
Inputs :
 Filled-in Supplier evaluation check list
 Documents related to on-site assessment
Description :
Lucas-TVS will conduct an on-site assessment, basically intended to evaluate supplier technical
capabilities and operating system for adequacy and adherence of the above.
Evaluation criteria:
1. Management
- Organisation
- Professionalism
- Financial stability
2. Technical
- Technical strength
- Capability
- Infrastructure
1. Quality Management system
- QMS certification minimum to ISO 9001:2015 with a goal of getting certified to IATF16949
- Incoming / In process / Final Inspection control system
- Sub Supplier Control
Audit observations will be sent to the supplier and the supplier shall submit a time bound action
plan for correcting the non-conformities / opportunity for improvement points.
Follow up audit will be carried out at supplier’s site as necessary to ensure the effectiveness of
the corrective action implementation.
Decision on assessment can be:
1. Approved or 2. Restricted Approval or 3. Rejected
Suppliers scoring above 80% will be approved and included in the Approved Suppliers list of
Note: Refer Annexure - 1 for the Supplier Evaluation Check list.

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3. NEW PART DEVELOPMENT

PROCESS

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3. New part development process

Early Supplier Involvement

Concept & Approval
Product design & development

Phase I
Process design & development

Prototype Samples

Feedback & Corrective Action

Product & Process validation

Phase V
Phase II
Tooled Up Samples

Product Approval Process(PAP) Phase III

Mass Production Phase IV

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New part development process

Objective : To explain development stages for supplier developing new parts.

Supplier Responsibilities :
 Shall form CFT (Cross Functional Team) for new part development and nominate representative
for interactions with Lucas-TVS.
 Shall follow APQP guidelines for New Part Development. (Please refer to the APQP reference
manual of AIAG for details).
Development stages being practiced at LTVS are covered in the following 5 phases.
Inputs :
 Drawings
 Quality Targets
 Cost Tables
 Capacity requirements
 Process Technology
 Lesson learned
Description :
Phase I (Before submission of Prototype samples) – Prototype Phase

Supplier shall perform the following:

Supplier should interact with Lucas-TVS after studying the drawing with the following information:
a. Feasibility of producing the part
b. Cost break up of producing the part
c. Suggestions for improving QCD
d. New investment requirement, if any
1. On approval of the proposal, supplier shall develop mutually agreed time-bound activity plan for
development and the suppliers for monitoring the progress of the development should effectively
use the same.
2. Prepare process flow diagram, process FMEA and control Plan. (For more information on process
flow diagram, FMEA and control plan, refer to the annexure and guidelines in the manual and
APQP & FMEA reference manuals of AIAG).
3. In case of suppliers with proprietary design, review completeness of design FMEA in addition to
the above requirements of LTVS in accordance with FMEA reference manual of AIAG.
4. Dispatch samples to LTVS with the inspection report, material test report and performance test
report for developing prototype or customer evaluation samples.
5. Discuss with LTVS for any difficulties encountered / improvement in the process.

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6. Review the activity plan based on the results of the prototype trials at LTVS.
7. Review the progress of facility / tool development and report the status of facilities / tool to LTVS
preferably with digital photographs.
Phase II (Before submission of Tooled up samples) – Sample Approval Phase
Supplier shall perform the following:
Develop detailed plan, for procuring the tools, gauges, test rigs, etc. required for mass production
based on the volume requirement indicated by LTVS.

Forward detailed product and tooling cost details to LTVS.

1. Discuss and agree upon for any changes to the earlier agreed process flow and control plan
with LTVS.
2. LTVS will conduct a joint inspection where required at the supplier premises before the
submission of tooled up samples for which the supplier shall
a. Agree to a date of inspection
b. Make available all the gauges planned and equipment required for inspection as agreed in the
Inspection Standards.
3. Despatch tooled up samples with dimensional report, material test report & performance test
report. (Lot size of minimum 30 nos shall be made by suppliers and sample shall be taken
from the lot and sent to LTVS as per Annexure 10 or as agreed with LTVS) for sample
approval at LTVS.
4. Review the activity plan based on the feed back from LTVS.
5. Review the progress of facility / tool development and report the status with digital photos of
facilities / tool to LTVS on weekly basis.

Phase III (Before submission of samples for pilot production) – Product Approval Process
Phase
On approval of tooled up samples, the supplier shall perform the following:
1. Verification of mass production capability for quality and quantity during Quality proving stage.
2. Despatch pilot batch along with the PAP documents (submission level – 3) as agreed with
LTVS.
3. Correct all deviations observed during Quality proving and maintain records.
4. Audits may be conducted at the supplier works by LTVS during the quality proving stages.
Phase IV (Before mass production) – Mass production & Ramp up phase
LTVS should finalize the cost before commencing mass production and release regular scheduling
agreement.

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Supplier shall perform the following:

1. Correct all the deviations observed during the Quality Proving stages before commencing
mass production.
2. Update PAP documents based on the pilot production feedback and submit to
LTVS for approval.
3. Finalize part cost before commencing mass production and get the regular scheduling
agreement. (This may include annual cost reduction plan also)
4. Develop mutually agreed plan for ramping up the production capability based on the
projected volumes indicated by LTVS.

Phase V – Feedback & Corrective action

1. Correct the deviations observed during mass production by initiating appropriate corrective
actions.

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4. DEVELOPMENT OF PFD,
PFMEA, CONTROL PLAN &
OPERATION STANDARDS

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4. Developments of PFD, PFMEA, Control Plan & Operation Standards

Preliminary process Approved

flow chart Drawing

PFD

PFMEA

Decide the recommended actions based on

high severity, occurrence & detection

Process Capability study Effective Process

Improvements Poka Yoke & Improvement Control

Reduced severity & occurrence

and improved detection

Control Plan (in accordance with

IATF 16949 requirements)

Approved of PFD, PFMEA & Control

Plan

Operation
Standards

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Developments of PFD, PFMEA, Control Plan & Operation Standards

Objective: To describe the procedure for the developments of PFD, PFMEA, Control Plan and
Operation Standards.

Supplier Responsibilities
 Development of Process flow diagram with inputs from (preliminary process flow chart ,
approved drawings & CFT discussions.
 Development of PFMEA and actions to reduce risk of failures in the process.
 Development of Control Plan to build process controls to prevent failures as per IATF 16949
requirements.
 Development of Operation Standards to execute the process in controlled condition and to
ensure consistency.

Inputs
 Preliminary process flow / layout
 Approved drawings
 CFT discussions

Description

Process flow diagram maps the processes stepwise clearly defining the product characteristics and
the process characteristics relevant at each step indicating the characteristics including special
characteristics as applicable and flow sequence

Process Failure Mode Effects analysis is a technique to capture potential failure modes in each
process step and quantify risk of failures based on severity ranking, occurrence ranking and detection
ranking. The exercise is carried out by a CFT using format in annexure 12. The process risks are
prioritized based on severity ranking, occurrence ranking and detection ranking and actions are
planned by CFT to reduce defective parts. Actions could be process improvement, Poka Yoke,
process capability improvements or better process controls. PFMEA is a live document and should be
reviewed whenever changes take place in process or when major failures occur. By default, PFMEA
should be reviewed once in three months based on actual internal and external failures.

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Control plan is used to define process control criteria and methods of control, from incoming raw
material to receipt of part to customer. Control plan is made based on PFMEA and Process Flow
Diagram. Control plan is used by supervisors / quality inspectors / quality engineers and line
managers to control process. Control plan should be developed in accordance with IATF
requirements. (Refer annexure 8).

To control each operation "Operation Standards" (Annexure 16) are used by operators to carry
out their operation effectively. Operation standard should include “How to do” and “What to do”
during processing and “what to inspect” before sending to next process (Internal customers).
Operators' involvement are necessary in developing these documents, which brings their
ownership. Suggestions for continual improvement of operation standard shall be reviewed and
incorporated to stabilize the process outputs and improve the process capability.

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5. VALIDATION OF
PRODUCTION AIDS
(TOOLS AND GAUGES)

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5. Validations of Production Aids (Tools & Gauges)

Part CFT discussion Preliminary process Control

Drawing inputs flow chart Plan

List of Tools
List of checking aids (Gauges)

Tool Design
Checking aids (Gauges) Design

Tool manufacturing
Checking aids (Gauges) manufacturing

Tool try out - soft

Calibration

Soft tool fine tuning

Tool No Attribute guage R&R

approval (as per MSA manual of AIAG)

Yes

Hard Tool Approval

No

Tool trial Yes

Rework or redesign /
Hard tool fine tuning Training to operators
Hard Tool
approval
No
Yes Calibration
status and
Periodic Tool periodic
Management calibration

Maintain Tool
Management /
History cards

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Validations of Production Aids (Tools & Gauges)

Objective: To establish manufacture of reliable tooling and checking aids (Gauges), which are
capable of producing and checking parts, conforming to drawing.

Supplier Responsibilities

Supplier management is responsible to:

 Prepare a detailed itemized plan for design, development, acquisition, installation and
validation of facilities, tools, jigs & Fixtures, Machines and measuring equipment.
 Ensuring that tooling is manufactured to produce the parts that conform to nominal of the part
drawing.
 Ensure that mass production tooling and checking aids are fully ready before the first
production trial or the checking fixture trial is conducted.
 Ensure that a good system for management of tools, jigs, checking fixtures is established to
ensure that tools are maintained to provide quality parts till they are in use.

Inputs

1. Approved part drawing

2. CFT discussion points
3. Control plan
4. Preliminary process flow / Layout

Description

The tooling and inspection aid requirement shall be in accordance with the quality, reliability and
productivity requirements of parts. Supplier should ensure that tooling and inspection aids are
amenable to quick changeover they are capable of preventing and/or detecting possible errors
during manufacturing.

Each tool and inspection aid (Gauges) development shall be tracked through a planned "Tool &
Gauges Progress Report".

Tooling and inspection aids shall be designed and reviewed by appropriate authority.
Manufacturing and inspection shall be done with respect to approved drawing.

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Validation trials should be carried out before or during pilot manufacturing stage and suitable
modification shall be carried out to make it fit and easy to use by Suppliers.

Each tooling and inspection aid shall be managed for proper use, due checks after use,
maintenance, fixed location, identification with colour codes with status (OK or Not OK) through a
history card. Based on similar application experiences the tool life and replacement parts shall be
specified or shall be established through wear trend.

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6. CALIBRATION SYSTEM

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6. Calibration System

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Calibration System

Objective: To establish system for calibration of measuring and test equipment against
standards, having National / international traceability.

Supplier Responsibilities

 Ensuring calibration of gages, measuring and testing equipment needed for measurement of
product or controlling process parameters mentioned in control plan.
 Ensuring calibration of measuring and testing instruments and setting standards are carried
out in controlled conditions.
 Ensuring that the masters used as reference for in house calibration are duly calibrated by
accredited laboratory having traceability to National / international standards.
 Ensuring visible calibration status on the equipment preferably with colour code identification
or calibration due date sticker.
 Ensuring mistake proofing in system for periodic recalibration.

Inputs

 Control plan

 Current inventory of measuring equipment

 Approved drawings

 Calibration procedures and standards

Description

The quality of measurement data is defined by the statistical properties of multiple measurements
obtained from a measurement system operating under stable conditions. The statistical properties
are the location of the data with respect to reference (Master) & the spread of the data for
repeated measurement. Calibration is focused upon the location error in the measuring device
through repeated measurements on a master or by a master.

Bias: Difference between "Reference" and the observed average of repeated measurement. (The
observed value shall follow normal distribution)

Calibration Frequency: Shall be decided based on use of the measuring devices and its
deterioration pattern or wear pattern. In the beginning frequency should be higher than normal
and depending upon successive calibration trend frequency shall be decreased.

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Permitted Bias Error: is 1/10 of the permitted error for the characteristics being measured (i.e)
tolerance specified on drawing or in inspection standard whichever is less. The master used for
calibration shall be 1/10 of permitted error on the instruments. The unit of measure (Least Count)
for the selected measuring device shall also follow this 1/10 rule as a minimum.

In case 1/10 rule is not being followed due to logical constrains a waiver shall be obtained from
LTVS.

Linearity: This measures how accurate the measurements are through the expected range in
percentage. Linearity for a gauge should be close to Zero.

Stability: This measures whether the error because of bias & Linearity will remain unchanged
over the period of time. This is normally studied over a series of calibrations unless and until
measurement system is not unstable in nature. In such cases setting standards are provided to
for calibration just before use.

Calibration Environment: Controlled temperature and humidity levels are needed for the
calibration activity. Calibration area shall be free of dust and dirt.

Recall System for Re-calibration:

 Recall system for re-calibration shall be mistake proofed by visual reminder (colour code) of
due week / month or computerized reminder or colour code system.

 On recall and calibration if the instruments are found out of calibration it shall lead to
investigation of possible shipment of· parts with wrong measurement and its consequences. If
the consequences are indicating a possibility of problem in fitment or performance, it should
be escalated to senior management of supplier, which in turn shall be escalated to LTVS
without any undue delay.

Training for All Users: shall be conducted periodically for proper use and handling of measuring
instruments along with importance of calibration and not using instruments beyond due date of
calibration, but this shall not be treated as substitute for recall system.

Storage and Use Conditions: Instruments and standards used for reference and setting purpose
shall be kept free of dirt, dust and shall be preserved to avoid any rust, dents and scratches.
Proper cleaning of working surface shall be done before use.

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7. MEASUREMENT SYSTEM
ANALYSIS (MSA)

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7. Measurement System Analysis (MSA)

Inventory of Inventory of measuring Control Plan

checking aids devices (Duly calibrated)

Instruments / checking aids Special and/or Major Operators &

identification for MSA study charecteristics inspectors
measuring Special
and/or Major
Samples characteristics
from Pilot or Samples for MSA
PPAP run

Conduct measurement system analysis and Establish Measurement

calculate Guage R&R or Kappa value method, train operators
(refer MSA manual of AIAG / Chapter 30.b) and inspectors

Not
Analyze the
Acceptable Guage
causes of Acceptable PPAP records for
R&R &
variation Kappa
approval
impove the value
measurement

Carryout MSA studies for the identified

instruments / gauges atleast once in a year as
per the annual MSA plan

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Measurement System Analysis (MSA)

Objective: To quantify total error present in applicable measuring system and reduce them to an
acceptable level.

Supplier Responsibilities

 Ensuring the team is trained on the various concepts of statistical analysis for conducting
MSA.
 Ensuring that Gauge R&R < 10% (Variable) or Kappa value> 0.75 (Attribute).

Inputs

 Control Plan
 The measuring devices are calibrated.
 Sufficient number of actual product samples is available. (Minimum 10 for variable and 20
for attribute MSA studies)
 Personnel doing actual measurements and master evaluator are identified.
 Method of measurement shall be defined and users are trained by master evaluator.

Description

Quality of measurement data is defined by the statistical properties of multiple measurements

obtained from a measurement system operating under stable conditions. The statistical properties
are location with respect to reference & the spread of the data for repeated measurement.

Gauge R&R analysis is a method to establish the spread of data in measurement system and make
sure that this is an ignorable fraction of total process spread for which it is used. This study has two
primary components explained below:

Repeatability: is the variation in measurements obtained with one measuring instrument when
used several times by one appraiser while measuring the identical characteristics on the same part.
Traditionally it is also referred as within equipment variation. Some established causes for high
repeatability are:

 Instrument needs maintenance.

 The gauge needs to be redesigned to be more rigid.
 The clamping or location of gauging needs to be improved.
 There is excessive variation within part

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Reproducibility: is the variation in the average of the measurements made by different appraisers using
the same measuring instruments when measuring identical characteristics of the same part. Traditionally
it is also referred as within appraiser variation. Some established causes resulting in high repeatability
errors are:
 The appraiser needs to be better trained in how to use and read the instrument.
 Gauge dial markings are not clear.
 A fixture of some sort may be needed to help appraisers to use gauge more consistently.

Note: Gauge R&R analysis values for one measuring device and for a set of persons cannot be
extended to another measuring device and/or another set of operators.

Attribute Measurement System Study: is the measure of agreement of the actual evaluations by two or
more raters, from that of the true status of the object, determined by reference evaluator. It is measured
as Kappa Value.

Reference: Latest revision of "Measurement System Analysis" by Automotive Industry Action Group
(AIAG) or Guidelines given in this manual ( Chapter 31.b )

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8. PROCESS CAPABILITY

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8. Process Capability
Part Drawing

PFMEA

Control Plan / QCPC

NO Any special
Characteristics
(SC)?
Adhere to control method
as per CP/QCPC YES
Ensure Gauge R&R % < 10%

Establishing X – R Control
Chart

Monitor the process using X-R

Control
Take corrective action
Calculate the Cpk every month
(Refer Guidelines)
100% inspection till
Cpk
> > 1.67
No Is Cpk> 1.67

Yes
Monitor Trends of Cpk and maintain
records

Submit monthly Cpk report to Lucas TVS

SQ

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Process Capability
Objective
 To calculate the process capability (Cpk) in order to meet customer requirement and enhance
satisfaction

Supplier Responsibilities
 Ensuring the team is trained on SPC Concepts
 Ensuring that Gauge R& R < 10%

Inputs
 Part Drawings
 PFMEA
 Control Plan
 SPC Concepts
 Calibration of measuring device
 Customer requirement on (Cpk > 1.67)

Description
Process capability is a measure of the ability of the process to meet design specifications .

Suppliers shall ensure that the special characters identified in the Drawing are addressed in PFMEA
and control plan (QCPC). It is more important to ensure that the process is stable and brought under
statistical control before calculating the process capability for any processes.

It is important to ensure that R&R % is less than 10% for the measuring system used for measuring
and controlling the special characters. Control charts ( X – R) are to be established and monitored for
the identified processes and Special characteristics as per the guidelines given in this manual
(Chapter 31.g)

Process capability (Cpk) is to be calculated every month as per the guidelines given in this manual
and acceptable minimum value of Cpk is > 1.67 . Suppliers shall carry out 100% inspection when
the required Cpk (> 1.67) is not achieved. Root cause analysis are to be carried out and corrective
action to be taken by suppliers. Monthly Process capability (Cpk) reports are to be submitted by
suppliers to Lucas TVS – SQ

Refer : Latest Edition of “Statistical process control” released by AIAG

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9. MANAGEMENT OF LIMIT
SAMPLES

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9. Management of Limit Samples

Control Plan

Inspection
Standards
for Part
Inspection standards for
incoming components
Workstation Vs Limit
sample matrix

Responsibility for Sub supplier provided

providing limit samples limit samples

Manufacture of limit
samples
LTVS approved
limit Samples
Approval of limit samples

Registration of samples
limit

Maintenance and periodic

replacement of limit samples

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Management of Limit Samples

Objective: To explain steps for developing limit samples and using them as Inspection Standards.

Supplier Responsibilities

 Ensuring availability of limit samples for characteristics stated as "As per limit samples" in
inspection standard.

 Ensuring that limit samples are produced representing current process which is capable of
meeting customer specifications and submitted to customer for approval.

 Maintaining limit sample register, proper upkeep of the samples, and effective use of limit
sample by concerned in right decision making for acceptance and rejection of parts and
components.

 Ensure periodic replacement of limit sample as processes improve to represent current

acceptance criteria.

 Reviewing limit sample, in case of engineering changes and replacing it with new one if
needed.

Inputs
 Control Plan
 Inspection standards

Description

For subjective quality characteristics when judgment criteria cannot be described in measurable
terms in inspection standard, like texture of surface, profile, etching pattern etc; limit samples are
established to facilitate uniformity in judgment at sub supplier, suppliers and LTVS.

Limit samples provided by Suppliers shall be approved by LTVS.

Supplier shall establish the requirement of limit samples for their sub suppliers and follow the
same system for their proper use and upkeep.

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Limit samples represent current process status, which is expected to improve over time therefore
these should be periodically evaluated and renewed.

The limit samples may deteriorate over time or become obsolete due to process or material
changes. In such circumstances it should be replaced with new limit sample.

All the limit samples should be identified with validity date. Supplier shall maintain a limit sample
register showing the place of use and status of limit samples.

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10. PRODUCT APPROVAL

PROCESS

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10. Product approval process

Submit the samples along with child

parts, raw material and SAN documents
to Lucas-TVS (Dimensional report,
Material test Performance report,
AOI –Part B, PSW )

Submit PAP Evaluation of samples and SAN

documents to documents by LTVS
SQ

OK Evaluation Not OK
Status

Take Corrective action

Proceed for Pilot production

Submit the Pilot lot Resubmit samples to LTVS

(150 to 200Nos)

Evaluation OK Proceed for Mass

Status production

Not OK
Take Corrective actions

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Product approval process:

Objective: To describe the procedure for Product Approval Process (PAP) of all complete parts &
all child parts which are in line with Lucas – TVS drawings. This procedure is applicable to all
suppliers of Lucas – TVS

10.1 General

The supplier shall submit PAP documents & samples along with duly filled in PAP Submission
checklist (Annexure - 2) in the following situations. The supplier shall obtain approval from Lucas –
TVS prior to first production shipment.
 Initial Submission.
 Engineering change(s)
 Tooling Transfer, Replacement, refurbishment or additional.
 Correction of discrepancy.
 Tooling inactive for more than a year.
 Change to optional construction / material.
 Sub – supplier or material source change.
 Change in part processing
 Parts produced at changed / additional location.
 Others (To be specified)

10.2. PAP process requirements :

10.2.1 Significant Production Run :

Parts for Product approval process shall be taken from a significant production run. This production
run shall be with specific production quantity to total a minimum of 30 consecutive parts or as
agreed with LTVS using the tooling, gauging, process, machines, materials and operators from the
production environment.

10.2.2 PAP requirements :

The supplier shall submit the parts, documentation and records only when all the specified
requirements as per drawing & specifications are met. In case of results falling outside the
specification, every effort shall be made to correct the process so that all the requirements are met.

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If the supplier is unable to meet any of the drawing requirements, Lucas – TVS shall be contacted
for determination of appropriate corrective action.
A qualified laboratory shall perform inspection & testing for PAP Commercial / Independent test
laboratories used shall be accredited facilities / qualified laboratories. When a commercial
laboratory is used, the supplier shall submit the test results on the laboratory letter head, or on the
normal laboratory report format.

10.2.2.1 Part or Component drawings:

The supplier shall have the LTVS drawing for the part or component as per issue level indicated in
the purchase order / amendment to purchase order.

10.2.2.2 Process Flow Diagrams:

The supplier shall have a process flow diagram in Lucas - TVS specified format (Refer Annexure -
3) that clearly describes the production process steps and sequence as appropriate and meets
LTVS needs, requirements and expectations.

10.2.2.3 Failure mode and effects analysis (FMEA) – Process:

Process FMEA is to be carried out for all potential failure modes likely to occur at each operation
consistent with process flow diagrams and suitable action to be taken to eliminate the cause(s) or
reduce its occurrence. If both are not feasible detection of failure mode/cause is to be improved.
Guidelines for carrying out process FMEA are given in the Supplier Quality assurance manual.
(Chapter 31.a). FMEA shall be carried out by supplier as per FMEA reference manual of AIAG.

10.2.2.4 Dimensional results:

The supplier shall provide evidence that the dimensional verifications required by the drawing,
control plan & Agreement Of Inspection have been completed and results indicate compliance with
specified requirements. The supplier shall have dimensional results for each unique manufacturing
process (e.g. cells or production lines, all cavities, molds, patterns, dies) for a minimum of 5 parts.
The Dimensional results report form in Annexure - 4 of Supplier Quality assurance manual may be
used for this purpose. The supplier shall identify one of the parts measured as master sample.

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10.2.2.5 Records of material / performance test results :

The supplier shall have records of material and/or performance test results for tests specified by the
drawing, control plan & Agreement of Inspection.

10.2.2.5.1 Material test results:

The supplier shall perform tests for all child part and product material when chemical, physical or
metallurgical requirements are specified by the drawing, control plan & Agreement Of Inspection.

All tests required by the drawing or control plan and related specifications should be listed in a
convenient format along with the quantity tested and the actual results of each test. (Annexure – 5)

10.2.2.5.2 Performance test results:

The supplier shall perform tests for all part(s) or product material(s) when performance or functional
requirements are specified by the drawing or Control plan.

Note: Results for all tests required by the drawing or related specifications should be listed in an
understandable format and include the quantity tested. The Performance Test Results form in
Annexure - 6 of Supplier Quality assurance manual may be used for this purpose.

10.2.2.6 Initial Process Capability studies :

The supplier shall carry out preliminary process capability study (Ppk) for all new manufacturing
process/parts having special characteristics and other characteristics as required by Lucas-TVS
and customers.

The minimum acceptable value of Ppk is 2.00 or as required by the customer of Lucas- TVS. The
minimum acceptable value of Cpk is 1.67 or as required by customer during regular production run.

Note 1: The purpose of this requirement is to determine if the production process is likely to
produce product that will meet the requirements of Lucas - TVS.

Note 2: Initial process studies are short term and will not predict the effects of time and variation in
people, materials, methods, equipment, measurement systems and environment. A short term

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study should be based on a minimum of 30 readings from consecutive parts of the significant
production run. The format as per Annexure - 7 shall be used for this purpose.

10.2.2.7 Measurement System Analysis Studies :

Measurement System Analysis studies shall be conducted to analyze the variation present in the
measuring system, consisting appraiser and equipment variation for all instruments/gauges used to
monitor Lucas-TVS specified Special Characteristics (SCs).

Guidelines, acceptance criteria and format for conducting measurement system analysis are given
in Supplier development manual.

Acceptance Criteria :
 The instrument used is acceptable if % R&R < 10.
 Conditionally acceptable if % > 10 and < 30 and not acceptable if % R&R > 30.
 Number of Distinct Categories (NDC) < 1 – Instrument unacceptable for estimating process
parameters and indices.
 NDC 2 – 4 Generally acceptable for estimating process parameters and indices since it only
provide gross estimates.
 NDC > 5 - Recommended.
 For attribute characteristics Kappa value > 0.75

10.2.2.8 Control Plan :

The Supplier Shall have a control plan as per the Lucas –TVS format (Annexure - 8) that defines all
control used for process control. The Supplier shall obtain approval from concerned product unit
supplier quality team prior to PAP submission.

10.2.2.9 Part Submission Warrant (PSW) :

Upon satisfactory completion of all required measurements & tests, the supplier shall record the
required information on the Part Submission Warrant (PSW). Refer Annexure – 9. (Sample
submission Challan replaced with Parts Submission Warrant)
The supplier shall verify that all of the measurement and test results show conformance with
Lucas TVS requirements and that all required documentation is available. A responsible supplier
official (Head of Quality) shall approve the PSW after satisfactory verification of PAP requirements
including comparison of process capability , Dimensional results , Material test results , Straight

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through ratio before and after for the changes as applicable and indicating the date and
designation.
10.2.2.10 Sample Production Parts:

The supplier shall draw sample products from the parts produced during the significant production
run and provide parts from each unique manufacturing process (e.g. cells or production lines, all
cavities, molds, patterns, dies) as per the sample production parts requirement specified in
Annexure - 10.

10.2.2.11 Master Sample :

The supplier shall retain a master sample for the same period as the production part approval
records, or until a new master sample is produced for the same Lucas TVS part number for Lucas
TVS approval. The master sample shall be identified and shall have the customer approval date on
the sample. The Supplier shall retain a master sample for each position of a multiple cavity die,
mold, tool or pattern, or production process unless otherwise specified by Lucas TVS.

10.2.2.12 Checking Aids :

The supplier shall submit with the PAP submission any part-specific assembly or component
checking aids list & details.

The supplier shall certify that all aspects of the checking aid match with part dimensional
requirements.

10.2.2.13 Agreement of Inspection :

The Agreement of Inspection shall contain,
Part – A: Inspection standard indicating the Appearance, dimensional, performance, material /
surface treatment & durability parameters applicable to the final part, specifications, inspection
method & sampling frequency as per the enclosed format. – Annexure – 11a.
Part – B: Details of sub – supplier & raw material source for all the child parts as per the enclosed
format – Annexure – 11b. For products with LTVS developed material specifications and LTVS
approved subcontractor list, the supplier shall procure materials and/ or services (e.g. plating,
heat treatment) from subcontractors on that list.
Part – C : Packaging Standards / Container details
Agreement of Inspection Part –C – Packaging Standards / Container details are required for all
direct materials supplied to Lucas-TVS . Refer guidelines given in this manual ( Chapter.30.e )

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The supplier shall submit the Agreement of Inspection and obtain approval from the concerned
Product Unit supplier quality team (on both Part – A: Inspection Standard & Part – B: Details of sub
– suppliers / raw material source), Part C – Packaging Standards at the time of PAP submission.
The guidelines for preparation of Agreement Of Inspection are given in the Supplier Quality
assurance manual ( Chapter 30.e )

On obtaining PAP approval from Lucas –TVS, suppliers shall submit Pre delivery inspection reports
in line with Agreement of Inspection along with each consignment at the time of bulk supplies.

10.2.3 PAP documents submission / retention requirements :

The following documents (Submission level: 3 as per PPAP reference manual of AIAG) are to be
submitted to Lucas TVS / retained by supplier during PAP submission along with samples:

Drawing provided by Lucas – TVS / Lucas – TVS approved drawing ( to be retained by supplier)
 Process Flow Diagram
 Process Failure Mode And Effects Analysis (PFMEA)
 Dimensional Results Report / Straight through ratio / OK ratio
 Records of Material / Performance Test results / Straight through ratio / OK ratio
 Initial Process capability studies for significant characteristics (SC) / before & after for changes .
 Measurement System Analysis Studies
 Control Plan
 Parts Submission Warrant (PSW)
 Sample Production Parts
 Master Samples (To be retained by supplier)
 Details of Checking Aids
 Agreement Of Inspection (AOI)

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10.2.4 PART SUBMISSION STATUS

10.2.4.1 General
The supplier shall be notified by Lucas-TVS of the disposition of the submission. After production
part approval, suppliers shall assure that future production continues to meet all the requirements.

10.2.4.2 PAP / PSW Approval status

10.2.4.2.1 Full Approval indicates that the part meets all Lucas - TVS specifications and
requirements. The supplier is therefore authorized to ship production quantities of the product
subject to releases from the Lucas - TVS scheduling activity.

10.2.4.2.2 Interim Approval permits shipment of material for production requirements on a limited
time or piece quantity basis. Interim Approval will only be granted when the supplier has:

- Clearly defined the root cause of the non-conformities preventing production approval.
- And prepared an interim approval action plan agreed upon by Lucas TVS. Re-submission to
obtain “ full approval “ is required.

Material covered by an interim approval that fails to meet the agreed-upon action plan either by the
expiration date or the shipment of the authorized quantity will be rejected. No additional shipments
are authorized unless an extension of the interim approval is granted.

10.2.4.2.3 Rejected means that the submission, the production lot from which it was taken, and
accompanying documentation do not meet customer requirements. Corrected product and
documentation shall be submitted and approved before production quantities may be shipped.

10.2.5 RECORD RETENTION:

Product Approval Process ( PAP) records shall be maintained for the length of time that the part is
active Plus one calendar year.

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11. PURCHASING SYSTEM

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11. Purchasing System

RFQ to Supplier

Supplier Quotation

Zero Based Costing by LTVS

Price finalisation with supplier

Release of Annual Purchase

Orders by LTVS

Amendments to Purchase Orders

(during any change)

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Purchasing System

Objective : To explicitly communicate the suppliers on supply conditions with clear terms and
order conditions meeting all statutory obligations to be fulfilled by supplier and to meet 100 % on
time delivery.

Supplier Responsibilities :
 Submission of Quotation and cost table along with process sequence

Inputs :
 Drawing
 Specification
 Type of Parts / Materials
 Lucas TVS Customer specific requirements

Description :
1. Lucas-TVS Shall release annual purchase orders at the beginning of the financial year or
issue an amendment for extending the validity of the existing purchase order.
2. Lucas-TVS shall issue amendment to purchase orders as and when changes take place in
the annual Purchase Order for price, payment terms, delivery terms, tax rates, agreement
conditions, freight terms, addition and deletion of parts, change of address, drawing issue
level change, etc.
3. All supplies, whether it is samples or products shipped for regular production shall be made
only against scheduling agreement.
4. Supplier shall review and commit to all the terms and conditions of the purchase order and
scheduling agreement.
5. All the invoices made to Lucas TVS shall have the valid Purchase Order number printed on it.
6. Price shall be finalized before beginning of mass production and finalized price will come into
effect once the PPAP approval is obtained.
7. Supplier shall inform us if there are any changes in the organization structure, address, and
contact number.
8. Any issues related to goods receipt / payment shall be referred to purchase to resolve within a
month of Invoice date.
9. Supplies shall be made as per latest or operating drawing issue with final inspection report for
every lot as agreed.

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12. SCHEDULING SYSTEM

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12. Scheduling System

Annual projection given to Suppliers

during Annual Suppliers Meet

Three months rolling projection through

RASIS

Monthly plan through RASIS

Daily / Weekly / Two bin Schedules to

Supplier along with Delivery Instruction
(DI) number through RASIS

Delivery of materials to LTVS by

Supplier against Delivery Instruction (DI)
number

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Scheduling System :
Objective : To enable supplier to have effective production planning to meet Lucas-TVS
delivery requirements.

Supplier responsibilities:

1. Supplier to equip with adequate facilities like phone, fax, and computer with internet
connection, barcode printer and scanner for better communication.
2. Suppliers shall look at schedules released on the RASIS (Remote Access Supplier
Information System) “www.lucastvs.co.in” at the start of the week for production planning and
supply accordingly.
3. In the case of Kanban, the schedule quantity released is only to enable the planning process
and the actual delivery of parts shall be only against the Kanban Card.
4. 4. In case of concern / likely to fail in meeting the confirmed scheduled quantity requirements,
supplier shall inform the concerned business unit (Feed back report) purchase within first
working day of week through LEAPS feedback screen.
5. Suppliers shall cascade schedules to Tier II suppliers and RM suppliers to ensure on time
delivery.

Inputs :
 Delivery schedules
 Internet facilities

Description :
Annual projections are given to Suppliers during annual Supplier’s meet.
In addition three months rolling projections are given through RASIS. Monthly plans are sent
Suppliers through RASIS .
Daily / Weekly / Two bin schedules to Suppliers along with Delivery Instruction ( DI ) Number are
sent through RASIS.
Suppliers shall ensure 100% on-time Delivery of Materials as per schedules to Lucas-TVS as per
agreed logistics arrangements.

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13. GUIDELINES FOR

CONTAINER SELECTION

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13. Guidelines for Container selection

Container shall be made as per the

guide lines given in this manual
( Chapter 31.e )

Submit the sample container to LTVS

along Agreement of Inspection (AOI)
Part – C

Evaluation
by LTVS ?

Not
Satisfactory Satisfactory

Start supplies in new container Carryout modifications and

resubmit

Maintenance of Containers
( Ensure cleanliness, No
damages & replenishment )

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Guidelines for Container selection

Objective: To ensure the container selection is as per the transportation and handling
requirements of the product.

Supplier responsibilities :
 Develop containers as per guidelines
 Maintenance of Containers

Inputs :
 Length
 Width
 Height
 Gap to be left from the top.
 Free from contamination

Description :
1. The type container shall be made as agreed by LTVS in Agreement of Inspection
(AOI) Part – C.
2. The size of the Container shall be one of the following.

Height(mm) Gap to be left from the

Length (mm) Width (mm)
Max top (mm)

400 300 250 15

600 400 250 15

600 500 250 15

* Not applicable for pole pieces and fixing brackets
3. Total weight (container weight + weight of components) shall not exceed 15 kg.
4. The container should have “ SUPPLIER NAME LTVS” written on both sides. Colour
of letters - white; Size of letters – minimum 1 inch height.
5. The container shall have “card holders” on both sides
6. Container shall be Clean and free from damages, dirt, oil and any other contamination.
7. Each container must have lid to protect the parts.
8. Locators shall be provided in the containers for the brittle materials.
9. Container samples to submitted to Lucas-TVS and approval to be obtained through AOI-Part-C

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14. INCOMING INSPECTION

CONTROL AT LTVS

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14. Incoming inspection control at LTVS :

Supplier shall submit inspection reports, process capability reports &

Material test report (as agreed) along with parts as per AOI

Rejected
Accepted Inspection by LTVS
SQ

Material moved to stores Material sent back to supplier

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Incoming inspection control at LTVS :

Objective: To communicate controls at receiving inspection of Lucas-TVS .

Supplier Responsibilities:
The following reports shall be submitted along with the supplies as per the agreed
norms:

S.No Reports Norms

1 Supplier final inspection report With every lot

2 Process capability reports and With every lot

performance reports
With every lot / as per Agreement of
3 Material test reports
inspection
4 M change (Man, Machine, Material,
4 Every month
Method) status report

Inputs :
 Agreement of Inspection
 Measuring Instruments and gauges
 Quality plan.
Description :
A) Supplier final inspection reports:
1. Submit in the prescribed format (Annexure : 15) as per agreement of inspection.
2. Carry out 100% inspection for all appearance items / for visual defects.
3. Certified inspectors name & Sign.
B) Requirements on special characteristics:
Supplier shall maintain process capability reports for special characteristics once in a
month and keep records / control charts for any verification if required (As per agreement
of inspection / control plan). Acceptance norms for process capability (Cpk) of the
parameters shall be > 1.67.

In case the processes become non-capable or unstable, supplier shall introduce 100%
inspection for the parameter till the process is corrected and again becomes stable and
capable. A list of such unstable and non-capable processes shall be submitted to LTVS

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every month end.

C) Raw Material test reports

1. Supplier shall carry out tests and submit as agreed in PAP / when requested by LTVS.
(Original raw material source details)
2. In case supplier does not have facility, Tests can be carried at the LTVS approved / NABL
approved laboratories.

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15. HANDLING OF REJECTION

AT LTVS & FIELD COMPLAINTS

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15. Handling of rejections at LTVS & field complaints

Rejections identified by LTVS - SQ in the

incoming supplies, customers and field

Supplier Problem Quality Report (SPQR)

raised by LTVS - SQ in RASIS

Immediate measures taken by the supplier:

a. Containment activity for the parts at LTVS, at the supplier end and
in transit
b. Short term / temporary countermeasure with time line
c. Method of segregation or sorting
d. Identification after segregation or sorting

Permanent counter measures (8D report) by

Supplier through RASIS within 7 days

Revisit the analysis and

counter measure
Validation of
8D report &
Incoming
Not effective supplies by
LTVS SQ

Effective

SPQR Closed in RASIS

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Handling of rejections at LTVS & field complaints

Objective: To specify the method for handling of rejections at LTVS & field complaints
Supplier responsibilities :
 Viewing the RASIS on a daily basis
 Containment actions
 Corrective action / Submission of 8D reports and closure of SPQR in the RASIS
within 7 days
Inputs :
 Type of rejections , Quantity involved , Production batch codes / Traceability
 Process capability status
 Problem solving skills

Description :
1. In case LTVS determines the supplied part is non- conforming, the suppliers are notified
through Supplier Problem Quality Report (SPQR) on the web (RASIS). The supplier shall
ensure corrective actions on receipt of flash report and communicate the causes of failure.
2. Flash reports issued for non-conformance shall be replied within 24 hours through E-Mail,
Fax, courier, or in person
3. After mutual agreement on non-conformance, parts will be moved to rejection stores. Then
the parts will be sent back to the supplier.
4. As an immediate measure supplier shall indicate the following:
a. Containment activity for the parts at LTVS, at the supplier end and in transit
b. Short term / temporary countermeasure with time line
c. Method of segregation or sorting
d. Identification after segregation or sorting.
5. For all the rejections, the supplier shall submit a long-term action plan within 7 days after
receiving the SPQR. It should contain:
a. Systematic problem analysis through 8D methodology available in RASIS
b. Time-bound action plan for implementing the countermeasure
6. Short-term measures shall be continued until the permanent countermeasures are found
effective at Supplier end.
7. Improved lot shall be separately identified and submitted with prior information to LTVS.
8. Every action plan to ensure problem does not repeat.
9. The supplier shall monitor and track quality performance of individual components and
take actions towards continuous improvement.

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16. SUPPLIER PERFORMANCE

– Q&D RATING

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16. Supplier performance – Q&D Rating

Objective : To describe the procedure for monitoring the supplier performance and give
feedback for improvement.

Supplier responsibilities:

 Review the Q&D rating

 Ensuring corrective action for low Q&D rating as required

Inputs :

 Quality Status – RSN, DRSN , SPQR

a. Customer disruption at the receiving plant including yard holds and shop ship
b. Special status customer notification related to quality or delivery issues
c. Dealer returns, Warranty, field actions and recalls
 Delivery performance

Description :

Q&D Rating System :

Q&D rating is a composite rating of Quality and Delivery of the Supplier for the month.
Q&D Rating system covers all preferred suppliers supplying components, sub-assemblies & raw
materials to Lucas-TVS - Padi and Puducherry ,Rewari, Chakkan & Pant nagar plants. (except
imports, Consumables, Packing materials). QCDS rating shall be communicated to the supplier
through RASIS on monthly basis.

As per the rating, the Suppliers may be any one of the following categories.

Q&D Rating % Remarks

91 up to 100% Excellent
81 up to 90% Good
71 up to 80% To be improved
Below 70% Poor

Q&D Rating Calculation Methodology :

Q&D Rating = 0.60 x Quality Rating + 0.40 x Delivery Rating

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Quality Rating :

Quality Rating = RSN PPM (30 Points) +

DRSN PPM (30 Points) +
SPQR (Other than RSN & DRSN related) (40 Points)

RSN – Return to Supplier Note (GI Rejection)

DRSN – Debitable Return to Supplier Note (Line Rejection & Sub-Contractor GI Rejection)
SPQR – Supplier Problem Quality Report (For specific complaints from customer, In-
House, Audit, Product grading & Concession)

RSN PPM (30 Points)

For 0 PPM – 30 Points
1 Point Reduction for every a d d i t io n a l 1 0 0 P P M

DRSN PPM (30 Points)

For 0 PPM – 30 Points

1 Point Reduction for every additional 50 PPM

SPQR RATING (Other than RSN & DRSN related) (40 Points)

No. of SPQRS= (No. of SPQRS related to In-House, Audit, Product grading & Concession
+ (No. of SPQRS related to Customer Complaint*5))

SPQR per Month Points

0 SPQR 40 Points
Above 0 to 1 30 Points
Above 1 to 2 20 Points
Above 2 to 3 10 Points
Above 3 0 Points

Note :- If any SPQR is raised on the supplier due to any one of the condition (a, b, c) mentioned
under Quality Status inputs, SPQR points will defaults to ZERO

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Delivery Rating :

Quantity Supplied against the DI on DI date

Schedule Adherence of each DI by supplier =
Total Quantity of DI on the DI date

Overall Schedule adherence rating of a supplier will be the average of adherence percentage of
all DI’s raised for the month.

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17. IMPLEMENTATION OF
CHANGES

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17. Implementation of changes

Change initiated by LTVS Change initiated by supplier
Engineering

- Sub-supplier, Raw material, Die

Design change Process change - Process, man , machine, method
Design or - Location , Technology , layout etc..
process change?

Send the request (Ref Annexure-26) to

Send the supplier process change request
LTVS purchase for supplier proposed
(Refer Annexure - 26) to LTVS Purchase
change

Review of Process change by LTVS Supplier

Release the revised drawing to suppliers Quality

No
Feasibility review by LTVS Engineering Is the change
approved?

Review the design change and send SPCR Send the "NOT APPROVED" Yes
(Annexure - 26) for LTVS proposed SPCR to supplier
changes

Prepare time bound action plan for change Send the "APPROVED" SPCR to supplier
implementation

Submit PAP documents and Parts Submit PAP documents and Parts
Submission Warrant (PSW) to Submission Warrant (PSW) to
Lucas - TVS Lucas - TVS

Obtain approval in the Parts Submission Obtain approval in the Parts Submission
Warrant (PSW) Warrant (PSW)

Implement the change as per agreed date Implement the change as per agreed date

Maintain records of design changes Maintain records of process changes

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Implementation of changes :-
Objective: To specify the procedure for implementation of design and process changes.
Supplier responsibilities :
 Timely implementation of design or process changes only after approval from Lucas-TVS in
writing.
Inputs :
 Revised Drawings
 Issue / Revision level
 Details of design changes or process changes such as Sub-supplier, raw material, die, process,
man , machine, method , location , Technology , layout etc..
 Required date of implementation and Stock status of materials
Description :
Supplier shall
1. Send the Supplier Process Change Request ( Refer Annexure – 26 ) for proposed design or
process changes to Lucas-TVS purchase .
2. Review the following details before proposing the design or process changes.
a. Manufacturability of change
b. Effect on Capacity
c. Tool development / modification lead-time.
d. Associated cost effect with the detailed break up
e. Investment details for addition of facility, if any.
f. Tool and gauge modification / new tool development charges with break up
3. Obtain approval in the Supplier Process Change Request ( SPCR- Ref.Annexure-26a) for the
design or process changes
4. Prepare time bound action plan for implementation of design or process changes .
5. Compare the results of Process capability , Dimensional , Material , Straight Through Ratio / First
Time Through Ratio (FTTR) before and after the change during trials / implementation .
6. Submit PAP documents and Parts Submission Warrant ( PSW ) to Lucas-TVS purchase .
7. After sample approval, a pilot lot of 150 Nos to 200 Nos to be sent for assembly trial and approval.
(HMSI Specific requirement).
8. Obtain approval from Lucas-TVS in Parts Submission Warrant (PSW).
9. Finalise implementation date jointly with Lucas-TVS, once the PSW approval is obtained. Ensure
sufficient stock levels are built up for smooth change over.
10. Implement the design or process changes only after approval from Lucas-TVS and maintain
records of changes

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Temporary change of process controls

1. Supplier shall identify and document and maintain list of alternate process controls,
including inspection, measuring ,Test equipment and error proofing devices
2. Supplier shall document and address such controls in the control plan and submit the
same to Lucas TVS for approval.
3. Supplier shall maintain traceability records (start and stop point) of parts / products
produced using temporary controls.
4. Supplier shall audit and maintain records such as First off , Last off, Validation results. Etc.
5. During restoration of primary controls, the supplier shall ensure that the controls are
effectively reinstated, and appropriate records to be maintained.

NOTE: No tools and gauges can be scrapped / modified without written consent of
LTVS.

5M Change Control Records:

1. Daily monitoring 5M change control System (Man, Machine, Method, Materials, Measurement)
shall be recorded in the 5M register in appropriate format. Sample format enclosed in Annexure-
26b

2. Details of the change shall be recorded in the 5M change record in appropriate format. Sample
format enclosed in Annexure-26c

Customer communication:

1. Collate the change details in 5M Change control matrix before 5th of every month of every
month & communicate to Lucas-TVS Ltd. Sample format enclosed in Annexure-26d

2. If there is no change, mention in the format as “No change” & communicate to Lucas-TVS.

3. For Man change(With adequate skill), details should be mentioned in the change control matrix
and no prior approval required from Lucas-TVS.

4. If changes happen other than Man change, Lucas-TVS approval detail should be filled in the
change control matrix and a copy of approval to be enclosed

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18. CONTROL OF LTVS SUPPLIED

TOOLS / EQUIPMENTS

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18. Control of LTVS Supplied tools / equipment

Identify the Lucas TVS owned tools

and guage as "Property of Lucas-TVS " . Eg PDC
Dies, Month Tools, Inspection Equipments

Maintain master list of Tools / Equipments owned

Maintain history cards for all dies and press tools

Practice tool Management system

Practice tool Management system

Obtain approval for any Die changes from

Lucas-TVS

Submit report on Tool history / life of Lucas TVS

on request

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Control of LTVS Supplied tools / equipment

Objective: To specify the procedure for control / maintenance of LTVS supplied tools /
equipment

Supplier responsibilities:
 Identification of Lucas-TVS owned Tools / Gauges and Date of introduction on the
tool
 Maintenance of Master lists
 Maintenance of Tools history cards
 Preventive maintenance of Tools

Inputs :
 Tools / Equipment supplied by Lucas-TVS
 Tools life

Description :
1. Maintain master list of all items supplied by LTVS. Ex: press tools, PDC dies, plastic
moulds, machine tools, inspection equipment / instruments / Gauges
2. Maintain history card for all dies and press tools
3. Define and practice preventive maintenance schedule to achieve intended tool life and
part quality requirements.
4. Obtain approval for any Die changes from Lucas-TVS.
5. Submit copy of history card / report on usage condition, on request.

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19. SUB – SUPPLIER

MANAGEMENT

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19. Sub - Supplier Management

Approved Make - Buy Line failure / field failures

drawing decision attributed to sub supplier

Existing sub supplier

LTVS approved Identification of sub
with proven quality and
suppliers suppliers
delivery

Final LTVS approved

sub supplier list

Decision on degree of Current experience of

CFT Feed back control quality with sub suppliers

Dimensional Material / treatment Performance Special processes

Controls controls Controls Controls

Poka Yoke Test certificate for Type approval Process & operator
each lot qualification

Sub supplier control plan, operation Corrective

standard and inspection standard actiion

Corrective Evaluation of sub supplier quality (Incoming

actiion + line rejection)

Periodic Sub suppliers audit by suppliers

Monitor Quality performance of Sub Suppliers

No Yes
Root cause
Sub
analysis supplier Recognise the sub suppliers
PPM < 100

Maintain records of Quality Performance of Sub Suppliers

No
Any Changes of
Sub Suppliers?

Yes

Obtain approval from Lucas TVS

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Sub - Supplier Management

Objective:

To provide minimum requirements / guidelines for managing Sub-suppliers.

Supplier Responsibilities :

 Identification of reliable Sub-Suppliers capable of meeting Lucas-TVS requirements in terms

of Quality , Cost , Delivery and Service
 Periodic audit of Sub-Suppliers
 Monitoring Quality and Delivery performance of Sub-Suppliers
 Obtaining approval for any changes of Sub-Suppliers

Inputs :

 Delivery requirements
 Capability of Sub-Suppliers
 Performance of Sub-Suppliers

Description :

Supplier shall

1. Maintain master list of all sub-suppliers with clear details of the operations carried out and
provide a copy to LTVS along with PPAP.
2. Inform and obtain the approval for any change of sub- supplier from LTVS.
3. Inform and obtain the approval for any change of operations at the sub-supplier end.
4. Carry out special processes like heat treatment, plating, painting, powder coating etc only at
the mutually approved sources.
5. Ensure sub-suppliers procure raw materials only from mutually agreed sources.
6. Monitor and improve QCDS performance of all sub-suppliers
7. Deploy supplier best practices to sub-supplier on periodic basis.
8. Maintain the data on production capacity for the parts supplied by sub-suppliers.
9. Encourage QMS certification (minimum of ISO 9001:2015) for sub-suppliers.

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20. SUPPLIER QMS

REQUIREMENTS

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20. Supplier QMS requirements

Supplier shall demonstrate the ability to establish, document, and implement an effective
quality system that comprises all applicable elements of ISO 9001:2015 or IATF 16949: 2016
or its latest version. Supplier shall ensure that quality policy is thoroughly distributed,
understood, maintained and that adequate levels of authority have been established to
ensure continual improvement of quality system.

LTVS expects its suppliers to get themselves not only to get accredited with ISO 9001 : 2015
/ IATF16949 immediately but also keep such accreditation valid at all times and constantly
upgrading themselves in line with the revisions to standard in order to maintain continuity of
QMS. Suppliers who do not meet this requirement should immediately forward detailed action
plan to fall inline with this requirement.

Supplier shall update certification status to LTVS during the renewal of the certificate and
during the upgradation of the certificate by forwarding the copy of the same.

The minimum qualifying requirement of certification is ISO 9001: 2015 with a goal of
transforming / getting certified to IATF 16949 : 2016 with action plan

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21. SUPPLIER EHSMS

REQUIREMENTS

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21. Supplier EHSMS requirements

Supplier shall demonstrate the ability to establish, document, and implement an effective
Environment, Health & Safety Management System (EHSMS) that comprises all applicable
elements of ISO 14001 or its latest versions. Supplier shall ensure that EHS policy is
thoroughly distributed, understood, maintained and that adequate levels of authority have
been established to ensure continual improvement of EHSMS system.

Supplier shall update EHSMS certification status to Lucas-TVS during the renewal of the
certificate and during the upgradation of the certificate by forwarding the copy of the same.

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22. SUPPLIER AUDITS

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22. Supplier Audits

Audits conducted by LTVS

on the Suppliers

Quality Management Manufacturing process audit

Systems Audit

Periodical Audit Unscheduled Audit

Annual audit plan by LTVS Performing audit in case of

1. Serious Quality abnormality
2. Unacceptable quality performance
3. Major changes in manufacturing
process
4. After submission of sample parts

Performing audit by LTVS

Raise non - conformities / observation for

improvement

Submit the corrective action plan / Improvement

action plan ( By Suppliers )

Countermeasure effectiveness check by LTVS

Counterme No
asure
effective?
Yes

Close the Audit Report

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Supplier Audits

Objective: To describe the procedure to carryout audits at Suppliers for improvement.

Supplier responsibilities :
 Adequate support to carryout audits at Suppliers premises
 Review of Non-conformities / Observations
 Timely corrective action / Improvement actions

Inputs :
 Annual audit plan of Lucas-TVS
 Serious Quality issues
 Unacceptable Quality performance
 Major changes in Manufacturing processes.
Description :
1. Lucas-TVS will carry out formal System audit on Quality Management Systems requirements as
per audit checklist (Annexure: 13) and audit frequency may be once a year or more depending
on how the supplier meets QCD performance targets.
2. In case of any major quality problem reported on supplies, Lucas-TVS shall decide to carryout
detailed audit on the manufacturing process on immediate basis as per the audit check sheet
(Annexure: 14).
3. Lucas-TVS will communicate the non-conformities, areas of concerns that require improvement
as observations.
4. Supplier shall forward time bound action plan for closure of non-conformities and observations.
5. Countermeasures will be verified during subsequent audit for effectiveness and cleared if found
effective. Otherwise returned to supplier for further improvements.

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23. TRAINING AND UP-GRADATION

OF OPERATOR’S SKILLS

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23. Training and Up-gradation of Operator’s Skills

Master list of Required Skill

Operators level

Skill Assessment for

operators

Skill Matrix for all

operators

Annual training plan for

all operators

Conduct the training

Program

Verify the
training effectiveness
Not Effective Effective

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Training and Up-gradation of Operator’s Skills

Objective: The purpose is to ensure skilled manpower availability for each process stage.

Supplier Responsibilities :

 Evaluation of current skills of operators.

 Up gradation of skills through structured classroom and on the job training.
 Multi skilling for operators.
 Maintenance of skill matrix

Inputs :

 Selection method of operators

 Evaluation method of Operators

Description :

Operator skill level should be identified through an evaluation process that includes reference to
his understanding of the process and his ability to produce good parts. Skill level of each
operator shall be ranked on a 4 level scale.

1.Job Performance Skills: Capability to perform the assigned job in line with customer's
requirements.

2.Technical Skill: Understanding and controlling the technical and technological aspect of the
processes, behavior and performance aspect of machines and tool used and their failure modes.

3.Skill Levels: Level 1: Requires guidance always ( Can be engaged under the close
supervision ) ; Level 2: Requires guidance occasionally ; Level 3: Can work independently
without any supervision; Level 4: Expert in operation and can train other operators on that
operation.

Skill Matrix to be maintained for all Operators.

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24. RECORDS AND RETENTION

PERIODS

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24. Records and retention periods

Below table gives the details of minimum retention period for various types of records and such
records should be made available to Lucas-TVS for verification on request. Supplier shall return
the old drawings to Lucas-TVS after receiving the latest drawings.

Minimum retention
S.no Type of Record Example
period
Inspection standards, Inspection reports,
Tooling maintenance reports, Control
chart, Material test reports, Performance
1 Quality System
test reports, Calibration records, Machine 3 Years
records
capability study reports, Audit reports,
Flash reports, Action plans, Kaizens, QC
Story
Drawings, PPAP
2 For the life of the
documents and
products + 1 Year
master samples
Purchase /
3 Purchase orders and amendments, For the life of the
transaction
quotations, purchase orders for tooling products + 1 Year
records
Inspection reports, Process controls
Traceability
reports, Tooling reports, Control chart,
4 records of 3 Years
Material test reports, Performance test
temporary
reports, Calibration records, Machine
change controls
reports, Audit reports.

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25. TRACEABILITY

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25. Traceability

Traceability refers to the completeness of the information about every step in a process chain.
Traceability is ability to chronologically interrelate the uniquely identifiable entities in a way that is
verifiable. It is the ability to verify the history, location, or application of an item by means of
documented recorded identification.

Traceability is closely linked with Product identification. Traceability is related to the origin of
Materials and Parts, the Product processing / manufacturing history and the distribution and
location of the product after delivery. Concept of Traceability has been linked to parts identification
recall procedure.

How does the identification help to ensure Traceability ?

 Automotive Products / Components require individual piece traceability as per Customer

requirements with identification
 Identification ensures that each Part / Product
- is the corrective type
- has passed all tests
- can be traceable back to specific lots and or inspections
- has a complete historical process data

Why Traceability ?

 Ensures fast Product Recall

 To limit damages to your reputation
 Customer Specific Requirement
 Safeguard the Company from huge penalty payments
 Legal requirements in some countries
 Reduces the effect of Product liabilities issues

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Factors deciding Traceability requirements:

 Product liabilities laws applicable in the market place
 Country of exports and Customers
 Regulatory Requirements

Types of Traceability
1. Forward or Down Stream Traceability:
Ability to locate defective or suspected defective products in all stages of Product life
Subsequent to the stage in which defect was discovered with the aim to repair or
replace such products.
2. Backward or Upstream Traceability:
Ability to find out the History of a defective product in various stages of product life cycle
previous to the stage of discovery of defect with the aim to investigate the causes of
occurrence and to take countermeasures to improve process / Systems
What is the Customer Requirement?

“Supplier shall ensure that the products supplied can be traced back in the
manufacturing process, item by item and by their manufacturing date & shift, in order to
define the Quantity of items and period affected by the non- conformity / defect and
facilitate therefore the identification and isolation of non- conformed /defective products
As soon as Supplier identifies a problem associated with Quality, logistic or delivery schedule,
Supplier shall inform Customer and disclose all relevant information to ensure a quick solution
which shall be agreed by both parties “

Scope of Lucas- TVS Traceability Standard:

 Finished Products
 Sub- Assemblies
 Components
 Raw Materials
 Parts / Products produced with temporary change of process controls.

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Traceability Implementation Flow Chart

Is process controls are

temporarily changed?
Establish a Traceability System with ability to trace
Parts from raw Materials to Finished Products
Identify start and stop points

Keep records of Components used from Suppliers Keep records

Keep records of which Customers you have

Supplied

Link records to test Results

Inform Customer In case of serious issues /

problems

Identify all semi- finished and finished parts

appropriately to ensure traceability

Work within a Preventive & Integrated QMS

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Traceability Chain :

Start Sub- Suppliers Suppliers

(Identification & TSR) (Identification & TSR)

Mfg & Testing Receiving Inspection Materials stores

(Identification & Insp) (Verification of TSR) (Identification & FIFO)

Final assy & Testing Despatch End

(Identification & Insp) (Despatch records)

* TSR – Traceability System Requirement

Lucas- TVS Traceability System :

21 - 08 - 06 - 01

Shift

Day

Year

International Week no.

Example :

WW - YY - DD - SS

Shift

Day

Year

International Week no.

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Traceability Record requirements:

• Part Name & No.
• Date , Week code , Day code , Shift code
• Product & Process characteristics as per Control plan / QCPC
• Qty Produced
• Qty Rejected
• Rejection and Rework details
• Concession if any
• Operator code as applicable
• Raw Materials / Input Materials Batch reference
• Change History
• Shift wise Built / Traceability Record

Actions by Suppliers for Traceability:

i. Training to Operators / Supervisors on Traceability

ii. Implement the Traceability System at Stores
iii. Implement the Traceability System at Mfg & Assy
iv. Maintain Inspection Record for Process , Product, Rejections, Rework etc..
v. Implement the Traceability System at Mfg & Assy for temporary change of process
controls
vi. Create Build record / Traceability record
vii. Indicate the Traceability codes in the Delivery challan
viii. Ensure retention period of Records - 3 Years for inspection Records and 10 Years for
SCs/ CCs/ SPC Data.

Traceability code / Lot code / Batch code marking requirements:

Batch code shall be marked / Stamped by Suppliers

• At a Location where it is easily visible
• It should not affect function of the part
• It should be legible
• Should be linked with Inspection Records (Process / Product)

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Traceability Vs Manufacturing History :

The Traceability coding method and System of keeping records shall be such a way that
it should be possible to know the minimum following from a Traceability code.

• Size of the lot (Quantity Produced in the Lot)

• Operating Conditions (Process parameters / Setting Conditions)
• Inspection Results
• Dates on which the lot was supplied to Lucas- TVS

Key Requirements for Traceability

• FIFO (First –In- First- Out)

• Good Identification System of Parts
• Inspection Status (Accepted, Rejected, Awaiting Inspection, Under Rework)
• Traceability in all stages from raw material receipt up to finished products
• Inspection Records

Traceability of changes:

Suppliers must keep the records in case of following changes

• Materials change
• Design change
• Process change / Machine change
• Sub- Vendor change
• Concession
• Part indigenization
• Operators Change

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26. . þ - CHARTS

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26. þ - Charts
Determine the characteristics to be monitored

No Are the data

attribute type
(G / NG)?

Refer control
charts for
Variable
characteristics
Yes

No Is the sample
size is variable?

Use ‘np’ chart

Yes

Decide to use ‘P’ chart

Train / Provide knowledge on ‘þ’ chart to

operating personnel

Decide the area of application to use ‘þ‘ chart

E.g. Assembly operations where 100%
inspection is carried out

Plot ‘þ ’ chart as per the guidelines given in

this manual ( Chapter 30.f )

Take corrective actions for out of Control

situations

Monitor the assembly / process using ‘þ ’

chart

Maintain records of ‘ þ’ Charts

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þ - Charts
Objective: To monitor Assembly Operations having attribute characteristics ( G / NG ) .

Supplier Responsibilities :
 Decide the area of application of P - charts.
 Training on P-charts to the operating personnel
 Establishing and monitoring the P- charts

Inputs:
 Control plans
 Inspection Standards
 Checking aids
 Assembly process with high rejections (Attribute characteristics – G / NG)

Description:
þ - Charts are used when the Quality Characteristics is represented by the number of defective
units or fraction defective when sample of varying size. Suppliers shall decide the area of
application to use the þ - chart Eg. Assembly Operations where 100% inspection is carried out
for the attribute characteristics ( G / NG ) and include in the Control plan/ QCPC.

þ - Charts are plotted as per the Guidelines given in this Manual. Out of control situations are
identified in the þ -chart and corrective actions are taken for the assignable causes resulting out
of controls conditions. ( Refer Section 31.C ).

Assembly Process shall be monitored by Suppliers using þ Charts and records are maintained.

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27. VALUE ENGINEERING

AND INNOVATION

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27. Value Engineering & Innovation

Long term goal setting

Identify value engineering and

innovation opportunities

Strategic direction &

change management in
place

`
Knowledge of new Motivated & Emerging
technologies empowered team customers /

Low cost differentiated

product by way of
1. Improved attributes
2. New attributes
3. Environment friendly
attributes

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Value Engineering & Innovation

Objective: To promote the use of value engineering and innovations to achieve breakthrough
improvement in quality and reduction in cost through improved design, material, processes and
technology.

Supplier Responsibilities

Supplier management is responsible to:

 Measure performance through savings made through value engineering and innovations.

 Encourage creativity within the company to implement breakthrough improvements.

 Establish stretched targets for product and business performance improvements.

Value Engineering:

 Suppliers shall establish structure of evaluating each elements of cost that constitutes the
total cost of the part (E.g. material, labor, cost of quality, consumables, power etc.).

 Set annual cost reduction targets and apportion the target value to each element of cost.

 Assign lead responsibility and appropriate cross-functional team to work towards value
engineering.

 Team to focus and identify value adding activities and non value adding activities
throughout value stream and develop ideas to eliminate or compress non value activities
with technical limits as benchmark and implement them.

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Innovation:

 Based on specialist knowledge, learning from emerging technology in competitive and

non-competitive fields supplier management should promote innovative improvements,
like:

1. Change in material

2. Combining many components into one component to improve reliability and reduce
cost

3. Combining many parts into one module

4. Developing maintenance free product for a life cycle

5. 100% recycling

6. Zero discharge factories

7. Performance mapping with competitive product and provide higher reliability cost

8. Introduction of new technology to get quantum jump in terms of quality, quantity

and cost.

 Collaborate with research institutions and customers to identify opportunities for

innovation.

 Provide best resources to give innovative idea a concrete shape.

 Conduct cost benefits analysis of such efforts and recognize to motivate similar activities
at an accelerated pace in the organization over time.

 Create an environment that supports and promotes innovation.

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28. SHOP FLOOR CONTROLS

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28.Shop Floor Controls

1) 3C

2) 5S.

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3) SOP

4 ) QCPC / Control plan

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5) Inspection & Testing

6) Tool Management

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7) Poka Yoke

8) Instrument / gauge control

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9) Visual Control

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 29. KANBAN

29. Kanban
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Kanban (kahn-bahn) is a Japanese word that when translated literally means “visible record” or “visible
part”. In general context, it refers to a signal of some kind. Thus, in the manufacturing environment,
kanbans are signals used to replenish the inventory of items used repetitively within a facility. The
kanban system is based on a customer of a part pulling the part from the supplier of that part. The
customer of the part can be an actual consumer of a finished product (external) or the production
personnel at the succeeding station in a manufacturing facility (internal). Likewise, the supplier could be
the person at the preceding station in a manufacturing facility. The premise of kanban is that material
will not be produced or moved until a customer sends the signal to do so.

The typical kanban signal is an empty container designed to hold a standard quantity of material or
parts. When the container is empty, the customer sends it back to the supplier. The container has
attached to it instructions for refilling the container such as the part number, description, quantity,
customer, supplier, and purchase or work order number. Some other common forms of kanban signals
are supplier replaceable cards for cardboard boxed designed to hold a standard quantity, standard
container enclosed by a painting of the outline of the container on the floor, and color coded striped golf
balls sent via pneumatic tubes from station to station.

Kanbans serve many purposes. They act as communication devices from the point of use to the previous
operation and as visual communication tools. They act as purchase orders for your suppliers and work
orders for the production departments, thereby eliminating much of the paperwork that would otherwise be
required. In addition, kanbans reinforce other manufacturing objectives such as increasing responsibility
of the machine operator and allowing for proactive action on quality defects. However, kanbans should
not be used when lot production or safety stock is required because the kanban system will not account
for these requirements.

Push vs. Pull System:

The kanban system described is a pull system. Traditionally, a push system is and has been employed.

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The push system is also more commonly known as the Materials Requirements Planning (MRP)
system. This system is based on the Planning Department setting up a long-term production schedule
which is then dissected to give a detailed schedule for making or buying parts. This detailed schedule
then pushes the production people to make a part and push it forward to the next station. The major
weakness of this system is that it relies on guessing the future customer demand to develop the
schedule that production is based on and guessing the time it takes to produce each part. Over-
estimation and under-estimation may lead to excess inventory or part shortages, respectively.

One of the major reasons kanbans are used is to eliminate or reduce the above mentioned wastes
throughout an organization due to the pull system that is employed. Waste can come from over-
production (inventory) and therefore, the need for a stockroom. This waste is eliminated. Part
shortages (under-production) are also eliminated. Costs are reduced by eliminating the need for many
of the purchasing personnel and the paperwork associated with purchasing. The planning department’s
workload is also reduced as they no longer need to produce work orders.

Types of Kanban :

1. Dual-Card Kanban :

This kanban system is more commonly referred to as the Toyota kanban system as Toyota was the first
to employ this system in full scale use. It is a more useful kanban technique in large-scale, high variety
manufacturing facilities. In this system, each part has its own special container designed to hold a
precise quantity of that part. Two cards are used: the production kanban which serves the supplier
workstation and the conveyance kanban, which serves the customer workstation. Each container cycles
from the supplier workstation to its stockpoint to the customer workstation and its stockpoint, and back
while one kanban is exchanged for another. No parts are produced unless a P-kanban authorizes it.
There is only one C-kanban and one P-kanban for each container and each container holds a standard
quantity (no more, no less).

2. Single-Card Kanban :

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The single-card kanban system is a more convenient system for manufacturing facilities requiring less
variety in their parts. Essentially, the single-card kanban system is simply a dual-card kanban system
with the absence of the production kanban and designated stock points. This system is demonstrated

using the following diagram.

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30. INITIAL PRODUCTION

CONTROL

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30. Initial Production Control

Initial Production control(IPC) / Initial Flow Control(IFC) is the special or extra controls
excercised in the manufacturing process during the initial phase of mass production till the process is
stabilized.

Initial Production Control should be carried out in the following cases,

 New Product Launch

 Engineering change
 4M Condition Change

Requirements:

a. IPC Startup & Termination through signoff system to be implemented

b. IPC Period should be agreed with Lucas-TVS. If no specific requirement given by customer, IPC
period should be 3 months / 3000 No’s Whichever is Longer after PPAP run

c. Identify the machine / line which is used for IPC should be identified with Flag / colour sticker to
bring more attention to the operators.

d. Supervisors, Operators and auditors should be trained about Significance and importance of IPC/
Ramp up and details of Products

e. Customer rejection PPM should be fixed as Zero during IPC Period.

f. Stringent In-House and Supplier PPM should be fixed for IPC period. In general half of the
rejection PPM of similar product can be fixed if no specific requirement from customer.

g. Process audit shall be conducted minimum two times during the IPC period in line with control
plan, one at beginning of the IPC (first day of start) & another one at the end before termination

h. Process capability report for Sc dimensions to be submitted to Lucas-TVS Ltd for every batch

i. Double the Sample size to be followed for incoming inspection, In Process inspection and final
inspection

j. Where ever 100% inspection is identified, 200% inspection(Double time) to be followed

k. For the non conformances noticed during inspection, immediate actions to be initiated to resolve
the Q-Issues

l. Full volume production condition at least once during IPC period

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m. Conditions for IPC termination to be fixed and IPC should be extended if the targets are not
achieved. For Example the following conditions are to be satisfied:
1. Cpk >= 1.67 and trend to be positive
2. All problems occurred before SOP resolved?
3. All problems observed during IPC & ramp up control resolved?
4. Customer Line Rejection is Zero
5. Customer Delivery Performance 100%
6. In-house Rejection PPM < Target Fixed
7. Supplier Quality PPM < Target Fixed

n. If any one of the above conditions is not satisfied, Extend the IPC period for a month and monitor
for the above conditions of Termination. If the conditions are satisfied, IPC will be terminated.

o. Termination will be reviewed & signed off by Quality Head of the organization and
communicated to operating people.

p. All the records of IPC period should be identified and retained

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31. Statutory & Regulatory

requirements

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31 Statutory and Regulatory Requirements

Supplier shall comply with the following but not limited to for meeting the
applicable statutory and regulatory requirements for the supplied
parts/materials/services

1. License to operate as per Factories act 1948

2. Pollution control board certificate as per Air and Water pollution act 1981

3. Emission certificate for the vehicle used for transporting parts ( Motor Vehicles act
1988)

4. Compliance to MSDS requirements if applicable

5. Compliance to the safety requirements of the process if applicable

6. Hazardous material Handling / Storage / Loading /Shipment as per Hazardous

Chemical Rules 1989 if applicable

7. Necessary RTHC symbols on the packing boxes /containers if applicable

8. Hazardous waste disposition method if applicable

9. Product safety requirements if any

10 Any special controls specified by LTVS/OEMs for products with statutory and
regulatory requirements

11 Any specific statutory and regulatory requirements applicable to the part/materials in

the “Country of receipt” , “Country of shipment” and “Country of destination”.

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32. Customer Specific

Requirements

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CUSTOMER SPECIFIC REQUIREMENTS

CUSTOMER: M/s WABCO
Clause
SL.NO. Customer Specific requirements /Remarks Ref

Scope of Agreement
Scope of Agreement

This QAA sets forth the minimum requirements to be met by the quality management
system of the parties and stipulates the quality assurance terms applicable to the
products supplied by Supplier and their manufacturing process.. Supplier Agreements
5.3
apply to all potential and current WABCO sub supplier direct materials suppliers
worldwide. ( Refrence SQA WABCO clause 5.3)

Quality Management
Quality Management

This contains mandatory registration according to ISO9001, and compliance with IATF 16949,.
7.2
Supplier shall ensure to include in its quality management system any production, testing
equipment and/or packaging provided by our customer WABCO.( Refrence SQA WABCO
clause 7.12)

Continuous Training
In order to have sustainable results, CSR OF WABCO expects Supplier to use continuous
improvement methods,
to have quality management systems in place and to work on organizational improvement
projects. Supplier commits to develop its employees with the support professional institute of
Continuous Training

its choice in different relevant domains, and in particular in quality methods, - continuous
improvement - process improvement ,six sigma lean personnel development
change management.
7.3
Supplier must present during its QD reviews with LTVS its continuously updated training plan
and progress status.
Training is available to Supplier at LTVS Training center..
Suppliers shall train their operators annually. The training shall be based on the work
instructions as described in the LTVS Quality Assurance manual / CSR ,approved control
plan, During the training, past quality issues shall be reviewed with the operators. Training
records shall be made available to customer on demand. ( Reference WABCO supplier
manaual clause 7.3)
Quality management system
management

Supplier shall provide documented evidence that Supplier monitors the effectiveness
system
Quality

of the quality management system implemented by its own suppliers.(Reference 7.12

WABCO supplier manaual clause 7.1.2)

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Clause
SL.NO. Customer Specific requirements /Remarks Ref

Process Capabilities
Wherever required by Customer in the course of the part approval procedure, statistical
evidence of process capability must be made available by Supplier.In case of Safety or
Significant Product Characteristic or additional agreed characteristics, evidence must be
provided by Supplier that process can reach a short-term process capability (ppk) ?
(superior or equal to) 2 for at least 50 consecutively produced parts. In series
production, Supplier shall give evidence for a long term process capability (cpk) ? 7.1.6
Process Capabilities

(superior or equal to) 1,67. Otherwise, Supplier shall proceed to a 100% Inspection with
collection of data to be allocated at least to the production batch. In the event of a
value/parameter not being achieved by Supplier, Supplier shall make a record of this
non-achievement and perform a full testing inspection until the cause of the non-
achievement has been clearly identified and resolved. supplier has to use appropriate
control chart to monitore the process.
Measurement processes used for above mentioned characteristics shall be analysed by
Supplier using a Measurement System Analysis (MSA) and Supplier shall ensure that
Repeatability & Reproducibility (R&R) results shall be below 20 and that R&R results of
measurement systems used for other characteristics shall be below 30. Supplier shall 7.1.6
also ensure that the mandatory setting of the action control limits take into
consideration measurement system capability

Suppliers shall perform a self-evaluation of each applicable special process listed below
Special process

in compliance with the Automotive industry Action Group (AIAG) Manual and provide
results to Lucas TVS upon request:
. Heat Treatment . Plating,. Coating, Welding,. Soldering,. Molding 7.1.6

Product Requalification
To verify performance and compliance to all customer requirements, Supplier shall
conduct yearly requalification test according to latest drawings and specifications for
each product group delivered to WABCO. Supplier shall present the requalification plan
to WABCO for approval and this must be integrated in the validated control plan as part
Product Requalification

of the PPAP validation.

To ensure agreed performance and compliance with customer requirements, Supplier
shall conduct yearly requalification of the Products in compliance with the IATF 8.2.4.1
7.1.6
requirements, i.e, full dimensional report and ,functional verification to applicable
customer engineering material and performance standard. ln case the Supplier intends
to perform a product group requalification, Supplier shall present a requalification plan
together with a riskassessment for a product group requalification to WABCO. Any
proposal for a product group base! requalification requires prior approval of customer
representative responsible for tire Supplier . ( Refer SQA Manual)

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SL.NO. Custom er Spe cific re quire m e nts /Re ma rks

Change Management
Even though m anufacturing proces s m odification and Supplier quality as s urance proces s rem ain
within Supplier’s own res pons ibility, any plans by Supplier to change or m odify thes e proces s es
Change Management

s hall be notified in writing to cus tom er and thos e changes or m odifications can only be
im plem ented after receiving prior written approval of cus tom ers ’s quality as s urance repres entative.
To that effect, the Supplier s hall provide cus tom er’s quality as s urance repres entative with the
intended proces s change/m odification and the planned date of initial delivery following s uch change
in a written form . Details refer SQManual Page 84
Any changes to the product s hall als o be s ubject to the approval procedure as des cribed Details
refer in LTVS SQA Manual Page 84. The product m ay not be delivered in s eries until WABCO
cus tom er has approved the change. ( Reference Wabco s upplier m anaual 7.2.8)

Quality Standard and Reimbursement

In terms of quality management, Supplier’s ultimate objective is to reach a quality level

of zero defect deliveries. In serial production, Supplier shall manufacture LUCAS TVS
products in strict compliance with LUCAS TVS’s product specifications and the quality
assurance process approved by LUCAS TVS’s quality assurance representative. LUCAS
TVS shall proceed on the assumption that, after being received, the products delivered
can be fitted or installed without any special testing or inspection, and accordingly
LUCAS TVS shall be under no obligation to examine product characteristics.
Quality Standard and Reimbursement

Notwithstanding the aforesaid, LUCAS TVS will examine the products during the product
receipt inspection to identify any damage in transit and check the identity and quantity
of its contents. If, however, a non-conformity/defect is detected, when a shipment is
received, or when the products received are processed further and inspected at the
plant, the Supplier shall be notified thereof by LUCAS TVS as soon as reasonably
possible and the Supplier shall at its own expense,

(i) Correct itself or through a third party the detective products on LUCAS TVS’s premises

(“Third party" can mean staff, assigned by Supplier, who is not employed by the latter
or, in exceptional
Cases, LUCAS TVS’ 3 staff.)
Or
(ii) Remove itself or through a third party the defective products from LUCAS TVS’s
premises and deliver substitute conforming parts at short notice.

In case of each quality claim reported by LUCAS TVS to Supplier, Supplier shall provide:
- Within 24 hours quick reaction with containment actions to protect LUCAS TVS
production

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C l a u se
S L .NO . C u sto m e r S p e c i fi c re q u i re m e n ts / R e m a rk s Re f

C h an g e M a n a g e m e n t
E ve n th o u g h m a n u fa c tu rin g p ro c e s s m o d ific a tio n a n d S u p p lie r q u a lity a s s u ra n c e p ro c e s s re m a in
w ith in S u p p lie r’s o w n re s p o n s ib ility, a n y p la n s b y S u p p lie r to c h a n g e o r m o d ify th e s e p ro c e s s e s
Change Management

s h a ll b e n o tifie d in w ritin g to c u s to m e r a n d th o s e c h a n g e s o r m o d ific a tio n s c a n o n ly b e

im p le m e n te d a fte r re c e ivin g p rio r w ritte n a p p ro va l o f c u s to m e rs ’s q u a lity a s s u ra n c e re p re s e n ta tive .
T o th a t e ffe c t, th e S u p p lie r s h a ll p ro vid e c u s to m e r’s q u a lity a s s u ra n c e re p re s e n ta tive w i th th e
in te n d e d p ro c e s s c h a n g e /m o d ific a tio n a n d th e p la n n e d d a te o f in itia l d e live ry fo llo w i n g s u c h c h a n g e
in a w ri tte n fo rm . D e ta ils re fe r S Q Ma n u a l P a g e 8 4 7 .2 .8
An y c h a n g e s to th e p ro d u c t s h a ll a ls o b e s u b je c t to th e a p p ro va l p ro c e d u re a s d e s c ri b e d D e ta ils
re fe r in L T VS S Q A Ma n u a l P a g e 8 4 . T h e p ro d u c t m a y n o t b e d e live re d i n s e rie s u n til W AB C O
c u s to m e r h a s a p p ro ve d th e c h a n g e . ( R e fe re n c e W a b c o s u p p lie r m a n a u a l 7 .2 .8 )

Q u a lity S ta n d a r d an d R e im b u r s e m e n t

In te rm s o f q u a l i ty m a n a ge m e n t, S u p p l i e r’s u l ti m ate o b je cti v e i s to re ach a q u a li ty l e v e l

o f ze ro d e f e ct d e l i v e ri e s. In se ri a l p ro d u cti o n , S u p p l i e r sh a ll m a n u fa ctu re LUC A S TV S
p ro d u cts i n stri ct co m p l ia n ce w i th LUC A S TV S ’s p ro d u ct sp e ci f i catio n s an d th e q u a li ty
as su ra n ce p ro ce s s a p p ro v e d b y LUC A S TV S ’s q u a l i ty ass u ra n ce re p re s e n tati v e . LUC A S
TV S sh al l p ro ce e d o n th e a ssu m p ti o n th a t, af te r b e in g re ce i v e d , th e p ro d u cts d e l iv e re d
ca n b e f itte d o r i n sta l l e d w i th o u t an y sp e cia l te s ti n g o r i n sp e cti o n , an d a cco rd i n g l y
LUC A S TV S sh al l b e u n d e r n o o b l i gati o n to e x am i n e p ro d u ct ch a racte ri sti cs .
Quality Standard and Reimbursement

N o tw i th s ta n d i n g th e af o re sa id , LUC A S TV S w i l l e x am i n e th e p ro d u cts d u rin g th e p ro d u ct

re ce i p t i n s p e cti o n to i d e n ti f y an y d a m a ge i n tran si t an d ch e ck th e i d e n ti ty an d q u an ti ty
o f i ts co n te n ts. If , h o w e v e r, a n o n - co n f o rm i ty /d e f e ct i s d e te cte d , w h e n a s h ip m e n t i s
re ce i v e d , o r w h e n th e p ro d u cts re ce i v e d are p ro ce sse d f u rth e r an d i n s p e cte d a t th e
7.2.3
p l an t, th e S u p p l i e r s h al l b e n o ti f i e d th e re o f b y LUC A S TV S as so o n a s re as o n a b l y
p o ss ib l e an d th e S u p p li e r sh al l a t i ts o w n e x p e n s e ,

( i ) C o rre ct i ts e l f o r th ro u gh a th i rd p arty th e d e te cti v e p ro d u cts o n LUC A S TV S ’s p re m i se s

( “Th i rd p arty " can m e an staf f , ass ig n e d b y S u p p l i e r, w h o i s n o t e m p l o y e d b y th e l atte r

o r, in e x ce p ti o n al
C ase s , LUC A S T V S ’ 3 staf f.)
Or
( i i ) R e m o v e i ts e l f o r th ro u gh a th i rd p arty th e d e fe cti v e p ro d u cts f ro m LUC A S TV S ’s
p re m i se s an d d e l i v e r s u b s ti tu te co n fo rm i n g p arts a t sh o rt n o tice .

In ca se o f e ach q u a li ty cl ai m re p o rte d b y LUC A S TV S to S u p p l i e r, S u p p l i e r sh al l p ro v i d e :

- W i th i n 24 h o u rs q u i ck re acti o n w i th co n tai n m e n t a cti o n s to p ro te ct LUC A S TV S
p
Inrocad se
u ctio
o f ne ach q u a li ty cl ai m re p o rte d b y LUC A S TV S to S u p p l i e r, S u p p l i e r sh al l p ro v i d e :
- W i th i n 24 h o u rs q u i ck re acti o n w i th co n tai n m e n t a cti o n s to p ro te ct LUC A S TV S
p ro d u ctio n

- W i th i n fi v e (5) w o rk i n g d ay s an al y si s o f ro o t cau se s an d co rre cti v e a ctio n p l a n

- W i th i n te n ( 10) w o rk in g d ay s a p ro v e th at th e a cti o n s h av e b e e n i m p l e m e n te d
A fte r LU C A S TV S 's v al i d ati o n o f i m p l e m e n te d co rre cti v e acti o n s S u p p l i e r sh al l p ro v i d e
Le s so n Le arn e d C ard .
7.2.3
Th e q u al i ty p e rf o rm an ce o f th e S u p p l i e r, b ase d o n th e m e trics N u m b e r o f In ci d e n ts,
re la te d to n u m b e r o f d e l i v e ri e s, a n d N u m b e r o f D e te cti v e P ro d u cts, re la te d to n u m b e r
o f d e l i v e re d p ro d u cts, w i l l b e co n tin u o u s l y m o n i to re d b y LUC A S T V S . T h e S u p p l i e r sh a ll
al so m o n i to r i ts q u al i ty p e rf o rm a n ce at a ll ti m e s . In th e e v e n t, o n e o f th e agre e d q u a l i ty
p e rf o rm an ce l e v e ls i s n o t m e t, th e S u p p l i e r w i l l b e re q u i re d to p re se n t a co rre cti v e
acti o n p l an w h i ch i n cl u d e s th e a ll o catio n o f re sp o n si b i l i ti e s b e tw e e n th e P a rti e s an d
th e tim e sch e d u l e f o r th e ste p s to b e u n d e rta k e n . ( R e f e re n ce w ab co s u p p l i e r m an u a l
cl au s e 7.2.3)

Chapter 28 Revision : 2, Date 05.03.2019 Page 143

 SQA Manual
Lucas TVS /SQA
Supplier Quality Assurance
Lucas TVS Ltd Issue: 1 25.10.17

CUSTOMER: M/s WABCO

Clause
SL.NO. Customer Specific requirements /Remarks Ref

Documentation, Traceability
The Supplier shall keep the quality documents on record for a minimum of 2 years after
delivery. Process-FMEA and Inspection / SPC-Records of Safety / Significant
Characteristics have to be kept by Supplier for a minimum of 10 years after delivery. On
special request, Lucas TVS Customer could specify a different document retention
Documentation, Traceability

period. Supplier shall allow OEM to view these documents on request.

Supplier shall ensure that the products supplied can be traced back in the manufacturing
process, item by item, and by their manufacturing date, in order to define the quantity
of items and period affected by the non-conformity/defect and facilitate therefore the 7.1.6
identification and isolation of the non-conformed/defective product(s).
As soon as Supplier identifies a problem associated with quality, logistic or delivery
schedule, Supplier shall inform Lucas TVS and disclose all relevant information to
ensure a quick solution, which shall be agreed by both Parties.

Packaging, Identification
In order to prevent all types of damages and deterioration in quality, the Supplier shall
ensure that the products are delivered in proper packaging as agreed with Lucas TVS.In
terms of packaging identification, the Supplier shall meet the requirements as agreed
Packaging, Identification

with Customer. The packaging identification must, at least, contain the following
markings without this list being exhaustive: Supplier name and address, Lucas TVS site
address, Lucas TVS part number, quantity in this packaging.All Products shall also be
10.3
accompanied by a delivery note stating, among other details, the delivery number, and
product identification reference number, delivered quantity and the Order number (or
consumption report number for parts on consignment stock) and clearly identifying the
Products including reference to numbers of any parts and drawings which have been
supplied by Lucas TVS to the Supplier. The Supplier shall also include in all invoices,
shipping documents and correspondence the same details as required above.The
Supplier shall ensure that the markings on the packaging are secured during transport
and in storage.Any
Safety deviations
and Environmental from agreed methods of packaging and identification
Regulations
The Supplier shall ensure compliance with all relevant safety and environmental
Safety and Environmental

legislation and regulations in force in the country where the products are delivered. In
terms of environmental management, Supplier shall ensure conformity with the
Regulations

requirements of ISO 14001 in its latest version. In addition, Supplier shall comply with
the requirements set forth in Lucas TVS environmental policy, being available on Lucas 3.0
TVS material / process- Standard to avoid hazardous substances products and all
deliveries to Lucas TVS shallcomply with the REACH Regulation (EC)NO 1907/2006 (
Reference Wabco supplier manaual Clause 3.0)

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