GENERAL MOTORS SUPPLIER QUALITY GENERAL PROCEDURE

RUN at RATE (GP-9)

THIS GP9 PROCEDURE APPLIES TO

 RUN AT RATE AT TIER-1 SUPPLIERS
 BUILD AT RATE AT TIER-1 VAA/SEQUENCERS

1. Purpose
The purpose of the Run at Rate (R@R)/Build at Rate activity is to verify that a
supplier’s actual manufacturing/sequencing process, while operating under normal
operating conditions, and under Total Customer Requirement, is:

A. Capable of producing/sequencing quality components/systems/modules, as

stated in the Production Part Approval Process (PPAP) (reference Attachment B
- Process Control Audit), and…

B. Capable of meeting or exceeding the "daily contracted capacity within one

production day," on a sustained basis (reference Capacity Workbook, S1, S2)
Note: It is expected that the daily contracted capacity is equal to or
greater than the daily LCR.

Note: “Total Customer Requirement” Includes All customer requirements (other GM

parts, Service Parts/After-Sales and other OEM’s.)

2. Scope
This procedure applies to all manufacturing, assembly and VAA / sequencing
processes contracted to General Motors to:

A. Produce/sequence new components/systems or modules

B. Increase existing capacity on previously contracted volume

C. Tool and equipment moves to new manufacturing/sequencing locations

The application of this procedure may be required for changes to existing

processes where it is deemed that the capability and/or capacity of the system have
been altered.

Note: An exemption from this process can only be granted with the written approval
of the Quality and Purchasing Directors of the procuring division.

3. Type of Run at Rate / Build at Rate

GM Supplier Quality will confirm the type of Run at Rate (R@R) / Build at Rate. The
supplier will be notified of the need to perform a "Customer Monitored" or "Supplier
Monitored" Run at Rate / Build at Rate as early in the Advanced Product Quality
Planning Process as possible.

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RUN at RATE (GP-9)

SECTION 1. TIER-1 SUPPLIER RUN AT RATE PROCESS

1. General Information
A. Duration of Run at Rate
The default duration of the Run at Rate will be equal to the daily contracted
hours. However, upon approval from their manager, the SQE may deviate from
the default duration (but not for a time period of less than 4 hours) after taking
into consideration the following factors:

 Product Complexity
 Shelf Life
 Storage & Packaging
 Cost
 Production Day Length

The duration of the Run at Rate should be sufficient to verify that the
manufacturing process can meet the daily contracted capacity while producing
under total customer requirements. If contracted capacity is achieved in less
time than scheduled for the Run at Rate, the Run at Rate can be stopped and
evaluated for a Pass or Fail.

B. Timing of Run at Rate

The Run at Rate should be performed after the supplier has attained a PPAP
status of “Full”, “Saleable”, or “Non-Saleable” (when pre-approved by GM
Supplier Quality Manager or above), and no later than eight weeks prior to start
of regular production (S.O.R.P.).

C. SQE/Supplier Preparation For Customer Monitored Run at

Rate
1. To ensure readiness before the actual Run at Rate is performed, the
SQE will conduct a Gate 1 (Kick-off Meeting) to review the contract
requirements. In addition, at Gate 3 the supplier is required to submit the
completed Capacity Workbook. During Gate 3 the Run at Rate “PASS”
requirements for Good parts per hour, scrap rate, and Uptime will be
determined and the R@R date will be established.
2. Requests for changes to the Run at Rate schedule must be submitted to
the authorized Customer Representative (SQE) at least one (1) month
prior to the Run at Rate.

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Note: Supplier will not be deemed ready for a Run at Rate until all required
documentation has been properly filled out and forwarded in advance to the
procuring division authorized Customer Representative (SQE).

D. Required Participation And Coverage

1. Customer Monitored
A representative from the procuring division is to be present for the entire
Run at Rate. No portion of the Run at Rate should be performed without
representation from the procuring division. If, however, it is clearly
evident that the systems capacity is well above the contracted
requirement, the authorized Customer Representative (SQE) may accept
the results of a portion of the Run at Rate without being present. The lead
Customer Representative typically will be the Supplier Quality Engineer,
with participation from the Buyer and/or Release Engineer upon request.

2. Supplier Monitored
The lead supplier representative (SQE) is responsible for ensuring that
the Run at Rate is performed by the Supplier, as detailed in this GP-9
Procedure. The lead supplier representative for the Supplier (Project
Manager) or their designate must be present during the entire Run at
Rate.

Note: All requirements of Gate 1 and Gate 3 (including paperwork

submission) must be completed according to the process and
timing requirements before the Run at Rate can be conducted.
Within 24 hours of completing the formal Run at Rate, the Supplier
must submit the revised Capacity Workbook that contains the
completed Run at Rate hourly count sheets and forward them to
the Procuring Division SQE.

Note: Equipment suppliers and/or subcontractors may be asked to

participate in either customer or supplier monitored Run at Rates.

E. Subcontractor Requirement

Tier 1 suppliers to General Motors are required to ensure the reliability of

their suppliers. Written confirmation that the Tier 1 suppliers can meet the
contracted daily requirements, as well as actual systems performance for
Quality, Capacity and Delivery must be provided to the customer procuring
division authorized Customer Representative (SQE) at least one (1) month
prior to the Run at Rate. Failure to provide the written confirmation will result
in a “FAIL” for the Run at Rate.

Where an on-site study is conducted at a subcontractor, it is recommended

that this GP-9 Run at Rate process be utilized.

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F. Inventory

Finished parts inventory resulting from production runs to prepare for or

complete a Run at Rate will be the responsibility of the supplier. This
inventory will be held until scheduled for shipment by General Motors. The
contracting division must approve exceptions to the above.
2. Run at Rate Content Review
1. During the Run at Rate the Supplier’s actual manufacturing process will be
assessed to verify its ability to meet the quality and capacity requirements as
contracted and described in the Capacity Workbook.

3. Approval
Upon completion of the Run at Rate study, the formal review of the completed
Process Control Plan audit and Capacity Workbook Summary Sheet, the Run at
Rate will be assessed with one of the following four results:

A. Pass
A Status of “Pass” indicates that all Run at Rate requirements have been
met, the Process Control Plan Audit (Attachment B) and Capacity Workbook
all have passed. In addition, the Tier 1 subcontractors’ abilities to meet the
capacity and quality requirements have been confirmed in writing by the
supplier, and all parts produced meet GM’s quality requirements as stated in
the requirements. Failure to meet the requirements of any of the above
(PCPA, Capacity Workbook & Letter) will prevent the issuance of a “PASS”
status. Upon satisfactory correction of the above conditions and assurance
that capacity has not been affected, the status can be changed to “Pass”.

B. Contract Fail
A Status of “Contract Fail” indicates that the Supplier passed all Run at Rate
requirements based on the contracted daily capacity; however, the customer
requirements (LCR) exceed contracted capacity.

C. Pending PPAP
A Status of “Pending PPAP indicates that all capacity related elements have
been met and the status “Pass” is pending due to:

i. PPAP status is “Non-Saleable”, or…

ii. In the judgment of the customer’s SQE or supplier there are

incomplete PPAP issues which may impact the capacity of the
production system. (Example: Low volume or temporary tools being
used.)

Upon satisfactory correction of the above conditions and assurance the

capacity has not been affected, the status can be changed to “Pass”.

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D. Fail
A Status of “Fail” indicates that a serious nonconformance exists in the
Process Control Plan Audit (Attachment B) or Capacity Workbook that
requires significant action by the supplier to correct, or if supplier fails to
provide written confirmation of the subcontractor’s abilities to meet the
Quality, Capacity, and Delivery requirements .

4. Corrective Actions
Should the Run at Rate results fail to meet the requirements of this procedure for
quality and/or capacity a corrective action plan (as outlined in the attachments)
must be submitted to and approved by the authorized Customer Representative
(SQE) within two days following the completion of the Run at Rate.

Upon full implementation of the corrective action plan, the Customer Supplier
Representative will determine the method of verification, which may require an on-
site review and/or a new Run at Rate study.

Following verification of successful implementation, the Run at Rate status will be

changed to a Pass, or other appropriate level.

Required Levels of GP-9 Documentation for Submission and Retention

Document Document Customer Supplier

Document Type Source Number Monitored Monitored
Run at Rate Sign Off Sheet (Att. A) Capacity Workbook GM1927-35 S S
Process Control Plan Audit Worksheet Attachment B GM 1927-16 S S
R@R Summary Capacity Workbook GM1927-35 S S
R@R Hourly Count Sheet Capacity Workbook GM1927-35 S S
Manufacturing Flow Diagram Capacity Workbook GM1927-35 S S
Manufacturing System Capacity GM1927-35
Capacity Workbook
Estimate S S
Shared Capacity Sheet (s) Capacity Workbook GM1927-35 S S
Customer "on-site" verification   Yes No

S – Submit document to Customer / SQE

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RUN at RATE (GP-9)

SECTION 2 TIER-1 VAA/SEQUENCER BUILD AT RATE

PROCESS

1. General Information
A. Duration of Build at Rate

The duration of the Build at Rate will be sufficient to verify that the process can
meet the contracted capacity while producing the Total Customer Requirement.
The default length of the Run at Rate will be equal to the daily contracted hours.
However, the authorized Customer Representative (SQE) may deviate from the
default duration upon approval from the GM Materials Launch Manager.

B. Timing of Build at Rate

The Build at Rate should be performed after the sequencer has attained a PPAP
status of “Full”, “Saleable”, or “Non-Saleable” (when pre-approved by GM
Supplier Quality Manager or above). The build at rate can take place before or
after start of production
 Before start of production the timing of the build at rate should
coincide with the Manufacturing Validation Build event
 After start of production the build at rate should take place after
the GM plant has reached steady state.

C. Sequencer Preparation For A Customer Monitored Build at

Rate

1. To ensure readiness before the Build at Rate is performed, the

sequencer will conduct a practice Build at Rate and/or simulations, as
well as complete the following Build at Rate worksheet attachments:
 Attachment B – Process Control Plan Audit
 Attachments VAA S1, VAA S2 – Capacity Analysis Summary &
Worksheet

2. Requests for changes to the Build at Rate schedule must be submitted to

the authorized Customer Representative (SQE) at least two (2) weeks
prior to the Build at Rate.

Note: Sequencer will not be deemed ready for a Build at Rate until all required
documentation has been properly filled out and forwarded in advance to the
procuring division authorized Customer Representative (SQE).

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D. Required Participation and Coverage

1. Customer Monitored
A representative from the procuring division is to be present for the entire
Build at Rate. No portion of the Build at Rate should be performed
without representation from the procuring division. If, however, it is
clearly evident that the systems capacity is well above the contracted
requirement, the authorized Customer Representative (SQE) may accept
the results of a portion of the Build at Rate without being present. The
lead Customer Representative typically will be the Supplier Quality
Engineer, with participation from the Sequencer and the GM Materials
Launch Manager.

3. Sequencer Monitored
The lead sequencer representative is responsible for ensuring that the
Build at Rate is performed as detailed in this GP-9 Procedure. The lead
sequencer representative (Project Manager) or their designate must be
present during the entire Build at Rate.
Note: Within 24 hours of completing the formal Build at
Rate, the sequencer must complete the Build at Rate
Summary sheet (Attachment VAA S1) and the Quality and
Capacity worksheets (Attachments B, and VAA S2) and
forward them to the Procuring Division SQE and the GM
Materials Launch Manager.

E. Subcontractor Requirement

Sequencers are required to ensure the reliability of their suppliers. Written

confirmation of daily contracted requirements, as well as actual systems
performance for Quality, Capacity and Delivery, must be provided to the
customer procuring division authorized Customer Representative (SQE) prior
to the Build at Rate.

Where an on-site study is conducted at a subcontractor, it is recommended

that this GP-9 Build at Rate process be utilized.

F. Inventory

Finished parts inventory resulting from sequencing runs to prepare for or

complete a Build at Rate, will be the responsibility of the sequencer. This
inventory will be held until scheduled for shipment by General Motors. The
contracting division & GM Materials Launch Manager must approve
exceptions to the above.

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2. Build at Rate Content Review

During the Build at Rate the Sequencer’s actual manufacturing/sequencing process
will be assessed to verify its ability to meet the quality and capacity requirements as
contracted and detailed in Attachments B (Quality), and VAA S2 (Capacity).

3. Approval
Upon completion of the Build at Rate study, and a formal review of the completed
Process Control Plan audit and Capacity Analysis worksheets (Attachments B, VAA
S1, and VAA S2), the Build at Rate will be assessed with one of the following six
results:

A. Pass
A Status of “Pass” indicates that all Build at Rate requirements have been
met under GM Plant steady state condition. The Process Control Plan Audit
(Attachment B) and Capacity Analysis (Attachments VAA S1 & VAA S2) have
passed. Subcontractors’ abilities to meet the capacity and quality
requirements have been confirmed in writing by the sequencer, and all parts
produced meet GM’s quality requirements as stated in the requirements.

B. ManVal Pass
A Status of “ManVal Pass” indicates that all Build at Rate requirements have
been met during the Manufacturing Validation Build event. The Process
Control Plan Audit (Attachment B) and Capacity Analysis (Attachments S-1&
S-2) have passed. Subcontractors’ abilities to meet the capacity and quality
requirements have been confirmed in writing by the sequencer, and all parts
produced meet GM’s quality requirements as stated in the requirements

C. Contract Fail
A Status of “Contract Fail” indicates that the Supplier passed all Build at Rate
requirements based on the contracted capacity, or agreed to staged
implementation plan; however, customer requirements (LCR) exceed
contracted capacity.

D. Pending PPAP
A Status of “Pending PPAP indicates that all capacity related elements have
been met and the status “Pass” is pending due to:

i. PPAP status is “Non-Saleable” or…

ii. In the judgment of the customer’s SQE or supplier there are

incomplete PPAP issues which may impact the capacity of the
production system. (Example: Low volume or temporary tools being
used.)

Upon satisfactory correction of the above conditions and assurance the

capacity has not been affected, the status can be changed to “Pass”.

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E. Fail
A status of “Fail” indicates that all Build at Rate requirements have NOT
been met under GM Plant steady state condition. A Status of “Fail” indicates
that a serious nonconformance exists in the Process Control Plan Audit
(Attachment B) or Capacity Analysis (Attachment VAA S1 and/or VAA S2)
that requires significant action by the sequencer to correct, or if sequencer
fails to provide written confirmation of the subcontractor’s abilities to meet
the Quality, Capacity, and Delivery requirements.

F. ManVal Fail
A status of “ManVal Fail” indicates that all Build at Rate requirements have
NOT been met during the Manufacturing Validation Build event. A Status of
“ManVal Fail” indicates that a serious nonconformance exists in the Process
Control Plan Audit (Attachment B) or Capacity Analysis (Attachment VAA S1
and/or VAA S2) that requires significant action by the sequencer to correct,
or if sequencer fails to provide written confirmation of the subcontractor’s
abilities to meet the Quality, Capacity, and Delivery requirements.

4. Corrective Actions

Should the Build at Rate results fail to meet the requirements of this procedure for
quality and/or capacity a corrective action plan (as outlined in the attachments)
must be submitted to and approved by the authorized Customer Representative
(SQE) within two days following the completion of the Build at Rate.

Upon full implementation of the corrective action plan, the Customer Supplier
Representative will determine the method of verification, which may require an on-
site review and/or a new Build at Rate study.

Following verification of successful implementation, the Build at Rate status will be

changed to a Pass, or other appropriate level.

General Motors Corp. Page 9 Published by GPSC

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