This printed document is an UNCONTROLLED COPY - Check I.M.O.S.

in Lotus Notes to verify validity prior to use

Date printed: Saturday, July 12, 2008

SOP-0000 Control of Non-conforming Product

Associated References to Standards/Customer Specifics

Start

Known or suspected product or process non-conformances may be identified during the implementation of any of the activities or events listed below. The details of the respective controls, associated responsibilities and authority may be found in the Work Instructions, as listed.

5.2 Customer Focus 7.2.3 Customer Communication 7.4.3 Verification of Purchased Product 7.4.3.1 Incoming Product Quality 7.4.3.2 Supplier Monitoring 7.5.5.1 Storage & Inventory 7.5.3 Identification & Traceability 8.2.1.1 Customer Satisfaction - Supplemental 8.3 Control of Non-conforming Product 8.3.1 Control of Non-conforming Product - Supplemental 8.3.3 Customer Information 4.1.1 Records Retention (L. 63) 4.1.5 Certification Body/Registrar Notification (L. 80)

ISO/TS 16949

Customerspecifics ISO 14001

4.5.3 Nonconformance and Corrective & Preventive Action

Supplier

Receiving Insp/ Supplier Qualification

Third Party Sort

Lab Inspections

Foam

Assembly Plant Personnel identify & segregate known or suspected nonconformances OD Sheets WI-0156 Quarantine Area (Assembly) WI-0160 Re-work Front Line Assist straps WI-0158 Purging the system for Defects Assembly WI-0221 Assembly Rework Instructions WI-0148-Repair of Pans with U nuts WI-0070 Utilty Person Assembly

Environmental/Health & Safety Audits/ Housekeeping

External Returns

Upon notification from Supplier, Supplier Quality Analyst / Q.A. Analyst initiate action to trace, identify & segregate suspect/nonconforming materials WI-0151 Processing of Supplier Defects (Foam) WI-0158 Purging the System for Defects WI-0314 Disposition of Suspect Material WI-0435 In-house Repair Report WI-0479 Returning Airbags to the Supplier

SQA/Q.A. Analyst identify suspect or non-conforming materials during inspection of incoming material or supplier qualification WI-0154 Nonconforming Purchased Product WI-0090 Receiving Inspection WI-0465 Supplier Annual Part Verification and Validation

3 Party identifies & segregates suspect or known nonconforming materials and returns to ABC Company (accumulation returns)

rd

Lab testing/ inspection results in identification of nonconformances See Form-0595 ABC Company Test Matrix for complete listing of Laboratory testing & Inspections

WI-0150 3rd Party Sort

Plant Personnel identify & segregate known or suspected non-conformances OD Sheets WI-0089 Product/ Process Testing WI-0152 Rework (Foam Secondary Operations) WI-0153 Processing of Returns from Assembly WI-0155 Sewing Operator WI-0059 Carousel Utility Person WI-0333 Foam Purges WI-0464 Re-shoot of Foam Cover

Unidentified, unlabelled or nonconforming materials or products found during environmental or health & safety audits, or by housekeeping are segregated and identified as nonconforming WI-0073 Written Hazard Communication Program WI-0391 Health, Safety & Environmental Audit

Customer returns nonconforming product to ABC Company or Corporate returns product subsequent to Annual Verification and Validation (where applicable) WI-0153 Processing of Returns from Assembly WI-0157 Rework & Disposition of Chrysler Returns WI-0158 Purging the System for Defects WI-0347 Analysis of Warranty Return Parts

Engineering Periodic Layout, Functional & Dock Audits & Testing Respective Test/Audit results in identification of non-conforming product WI-0094 Dock Audit Assembly Q.A., WI-0044 Function Audit WI-0097 B.S.R. Testing Engineering Design change results in obsolete materials which must be identified and segregated

Identification & Segregation

As applicable, Supplier Quality Specialist or Quality Assurance Supervisor ensures suspect or known non-conforming materials are clearly identified & segregated or moved to designated HOLD/Quarantine area
4.2.4 Control of Records 4.1.1 Records Retention 4.2.1.16 Forever Requirements Extended Enterprise (L. 147, 152, 153, 154) 4.5.4 Records

SOP-0007 Change Control

As applicable: Receiving Inspection List Supplier Rating Report Form-0236 3rd Party Sort Authorization Form-0238 3rd Party Sort List Form-0243 Stock on Hold Pending Disposition Form-0252 Reject Tag Form-0515 Reject Tag Form-0516 Defective Cover and Pad Assembly Tag Form-0633 Non-conforming Material Tag Form-0682 Service Hold for Disposition Area Form-0780 Oven Reject Codes Form-0951 Foam Rework Instruction Manual Form-0988 Foam Acceptance Criteria Parts Log Form-1034 3rd Party Rejects Form-1093 Quality Cage Disposition Codes

Processing Non-conformances
Supplier Quality Specialist/Q.A. Analyst per applicable Work Instruction 1) assesses suspected or identified non-conforming materials/products 2) Determines & assigns disposition of one of the following: - Return to Source - Scrap - 3rd Party Sort - Rework/reuse - Send to Lab for testing - Hold - Customer/Internal Waiver 3) communicates disposition status as applicable to ensure that customers are promptly informed of issues which might impact them (Materials Manager notifies customer of any actual or potential supplier
issues, or potential supply or capacity issues and Q.A. Manager notifies customer of any actual or potential non-conforming product which may have been shipped)

4) maintains records of the nature of all nonconformities, (including suspected nonconformities which are subsequently approved, and any actions taken, including concessions obtained)

As applicable: Internal & Supplier Nonconforming Materials Records See Appendix A - Page 3

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Patricia Ravanello - Management Systems SOP-0000 Control of Non-Conforming Product, Revision: 8 Page: 1 of 3

This printed document is an UNCONTROLLED COPY - Check I.M.O.S. in Lotus Notes to verify validity prior to use

Date printed: Saturday, July 12, 2008

SOP-0000 Control of Non-conforming Product A

As applicable: Internal & Supplier Nonconforming Materials Records See Appendix A - Page 3
4.2.4 Control of Records 8.5.2 Corrective Action

Respective Responsible Party takes action to: eliminate the detected non-conformity authorize its use, release or acceptance, under concession by a relevant authority, and where applicable by the customer, or preclude its original intended use or application and initiates corrective action per SOP-0000 Corrective and Preventive Action and Continual Improvement and/or the applicable Work Instruction as identified below, ensuring that records of the results of action taken are maintained
-See respective output of processes identified below

4.2.1.10 Corrective Action Plan (L.124) 4.2.1.11 PRISM (L. 126-128) 7.1.4 Change Control 8.3.2 Control of Reworked Product 8.5.2.4 Rejected Product Test/Analysis 4.5.3 Nonconformance and Corrective & Preventive Action

4.2.4 Control of Records 8.3.4 Customer Waiver

Repair/Rework

Scrap/Disposal
WI-0083 Emergency Preparedness & Response Plan WI-0151 Processing of Supplier Defects (Foam) WI-0156 Quarantine Area (Assembly) WI-0382 ISO-MDI Chemical Spill Clean-Up WI-0383 Mold Release Chemical Spill Clean Up WI-0384 POLY Spill Clean-Up WI-0385 Oil Spill CleanUp WI-0391 Health, Safety & Environmental Audit

Lab
Quality Assurance Personnel performs dimensional testing as needed See Form-0595 ABC Company Test Matrix for complete listing of Laboratory testing & Inspections Rejected Product Test Analysis may include: FMEA Analysis capability studies correlation diagrams Fishbone, Pareto, Histogram analysis Probability analysis, etc. QSI-Inspection & Test Module

Return to Source

Design Change

Purge

Customer/Supplier/ Internal Waiver Quality Assurance ensures that: Customer IAA is obtained prior to further processing whenever the product or process is different from that which is currently approved and that records are maintained of the expiration date and quantity authorized per
WI-0363 Waiver Management WI-0159 Temporary Authorization of Substitute Parts (TASP)

Responsible party (per applicable W.I.) identifies instructions for re-work identifies re-inspection requirements to ensure effectiveness of corrective action ensures that the above is accessible and utilized by the appropriate personnel.
WI-0155 Sewing Operation WI-0157 Rework & disposition of Chrysler Returns WI-0221 Assembly Rework Instruction WI-0152 Rework (Foam Secondary Operations WI-0409 Desktop - SQA Generating and updating the Receiving Inspection List WI-0432 Reworking Parts at Carousel WI-0435 In-house Repair Report WI-0458 Desktop for Acuna PPM Report WI-0464 Re-shoot of Foam Cover WI-0488 Foam - Defect Monitoring & Reporting WI-0517 Desktop - Creating Assembly returns PPM Monthly Chart

WI-0151 Processing of Supplier Defects WI-0153 Processing Returns from Assembly WI-0156 Quarantine Area (Assy) WI-0479 Returning Airbags to the Supplier

SOP-0007 Change Control WI-0011 Engineering Change and Release WI-0222 Obsolete Material

WI-0158 Purging the System of Defects WI-0333 Foam Purges WI-0399 ASRS Procedure for a Purge

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Patricia Ravanello - Management Systems

SOP-0000 Control of Non-Conforming Product, Revision: 8

Page: 2 of 3

This printed document is an UNCONTROLLED COPY - Check I.M.O.S. in Lotus Notes to verify validity prior to use

Date printed: Saturday, July 12, 2008

SOP-0000 Control of Non-conforming Product

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Applicable Reports from Management Operating System Metrics Summary Metrics DASHBOARD

Department Managers monitor and assess the nature and frequency of non-conformances per SOP-0012 Monitoring, Measurement and Analysis and report analysis and conclusions to Senior Management per SOP-0004 Management Review 1) to verify the suitability and effectiveness of the Business Operating System, 2) to monitor progress toward objectives 3) to assess the need for additional resources, and 4) to identify or evaluate opportunities for continual improvement
Management Review Meeting Minutes , , (Actions responsibilities Timing) Action Plans Resource Requirements Opportunities or recommendations for continual improvement

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Appendix A Non-conforming Materials Records

Internal
Form-0216 F Lab Work Order Form-0248 Trash or Scrap Material Form-0249 Reject Tally Sheet Form-0250 ABC Company Scrap Report Form-0252 Reject Tag Form-0254 Purge System Information Form - Assembly Form-0256 Scrap Trims Log QSI Test Records Internal Scrap & Rework Data

Supplier Issues
Form-0235 ABC Company 3rd Party sort Job No. Form-0238 3rd Party Sort List Form-0240 Acuna Defective Material label Form-0242 Recorded Parts Error List Form-0244 Return to Stock Location from Reject Location Form-0245 Defective Material Notice Label Form-0246 Defective Material Notice (Purchased) Form-0246 Form-0247 Defective Material Notice (Computer-generated) Form-0776 Foam Purge System Information Form Form-0251 Stock on Hold (Vendor Rejects) Form-0253 Defective Material Return Tag Form-0255 TASP Log Sheet Form-0257 Scrap Service Parts Log Form-0375 Shift Secondary Operations Activity Report Form-0518 Accept Tag Form-0519 Matisse Fabric Test Results Form-0779 Non-conforming Materials Package Form-0840 Defective Material Notice Summary QSI Test Records Service, Past Model Build, or Warehouse

Patricia Ravanello - Management Systems

SOP-0000 Control of Non-Conforming Product, Revision: 8

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