Global Supplier Standards Manual Quality Expectations Section

Global Supplier Standards Manual
Quality Expectations Section

Chapter 7
May 2010 version 3.6

Uncontrolled if printed Page 1 of 18

Quality Expectations Table of Contents
QUALITY EXPECTATIONS TABLE OF CONTENTS ........................................................................................ 1
1.0 QUALITY EXPECTATIONS REVISION LOG ................................................................................................ 3
2.0 QUALITY EXPECTATIONS .............................................................................................................................. 4
2.1 QUALITY EXPECTATIONS INTRODUCTION ............................................................................................................ 4
3.0 ADVANCED QUALITY PLANNING (APQP) .................................................................................................. 4
3.1 ADVANCED QUALITY PLANNING (APQP)............................................................................................................ 4
4.0 PROCESS SIGN-OFF (PSO) ............................................................................................................................... 4
4.1 PROCESS SIGN-OFF (PSO)INTRODUCTION ........................................................................................................... 4
4.2 PROCESS SIGN-OFF (PSO) EXPECTATIONS .......................................................................................................... 4
4.3 IMPORTANT DOCUMENTS AND SUPPLEMENTATION TO SECTION .......................................................................... 4
5.0 MEASUREMENT SYSTEM ANALYSIS (MSA) .............................................................................................. 5
5.1 MEASUREMENT SYSTEM ANALYSIS (MSA) INTRODUCTION ................................................................................ 5
5.2 MEASUREMENT SYSTEM ANALYSIS (MSA) EXPECTATIONS ................................................................................ 5
6.0 PARTS PER MILLION (PPM) ............................................................................................................................ 5
6.1 PARTS PER MILLION (PPM) INTRODUCTION ........................................................................................................ 5
6.2 PARTS PER MILLION (PPM) EXPECTATIONS ........................................................................................................ 5
6.3 SORTING EXPECTATIONS ..................................................................................................................................... 6
6.4 IMPORTANT DOCUMENTS AND SUPPLEMENTATION TO SECTION .......................................................................... 6
7.0 SUPPLIER MATERIAL REJECTION REPORT (SMRR) .............................................................................. 7
7.1 SUPPLIER MATERIAL REJECTION REPORT (SMRR) ............................................................................................. 7
7.2 SUPPLIER MATERIAL REJECTION REPORT (SMRR) COMMUNICATION ................................................................ 7
7.3 SUPPLIER MATERIAL REJECTION REPORT (SMRR) EXPECTATIONS .................................................................... 7
8.0 PROBLEM SOLVING 8 DIMENSIONS (8D) .................................................................................................... 7
8.1 PROBLEM SOLVING (8D) EXPECTATIONS ............................................................................................................. 7
9.0 SUPPLIER MANAGEMENT QUALITY REVIEW (MQR) ............................................................................ 7
9.1 MANAGEMENT QUALITY REVIEW (MQR) INTRODUCTION .................................................................................. 7
9.2 MANAGEMENT QUALITY REVIEW I (MQRI) COMMUNICATION/EXPECTATIONS.................................................. 8
9.3 MANAGEMENT QUALITY REVIEW II (MQRII) COMMUNICATION/EXPECTATIONS ............................................... 8
10.0 QUALITY ROADMAP ....................................................................................................................................... 9
10.1 QUALITY ROADMAP ........................................................................................................................................... 9
11.0 CONTAINMENT ................................................................................................................................................ 9
11.1 CONTAINMENT INTRODUCTION .......................................................................................................................... 9
11.2 CONTAINMENT EXPECTATIONS .......................................................................................................................... 9
11.3 CONTAINMENT LEVEL I EXPECTATIONS .......................................................................................................... 10
11.4 CONTAINMENT LEVEL II EXPECTATIONS ......................................................................................................... 11
12.0 SAFETY CRITICAL PRODUCT REQUIREMENTS .................................................................................. 17
12.1 INTRODUCTION ................................................................................................................................................ 17
12.2 LINKS TO SAFETY CRITICAL TEMPLATES/CHECKLISTS/GUIDELINES ............................................................... 17

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13.0 SUPPLIER REQUEST FOR CHANGE .......................................................................................................... 18
13.1 PRODUCTION PROCESS CHANGE ...................................................................................................................... 18
13.2 SUPPLIER CHANGE REQUEST FORM ................................................................................................................. 18
13.3 SUPPLIER PART SUBMISSION ............................................................................................................................ 18

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1.0 Quality Expectations Revision Log
Last Date
Revised
Version Section Section Description Description of Revision
05/01/2007 1.0 ALL Format Changes Document Format Change
08/17/2007 2.0 ALL Format Changes Document Format Change
03/25/2008 2.1 12 New Section Addition of Safety Critical Products Links
04/02/2008 2.2 12 Safety Critical Product
Requirements
Added some links to documents
10/08/2008 2.3 12 Safety Critical Product
Requirements
Added some document references, also
some global formatting changes
11/25/2008 3.0 ALL / 13 Change Management Changed from Chaper6 to Chapter7,
Added new section 13, Updated form links
12/3/2008 3.1 3.1 Advanced Product
Quality Planning
Added new note for pre-production part
labeling
12/21/2008 3.2 12 / 13 Safety Critical Product
Req., Request for Chg
Revised document links to work with new
portal content manager
07/22/2009 3.3 12 / 13 Safety Critical Product
Req., Request for Chg
Corrected links to be "full" so that they work
after document downloading
08/10/2009 3.4 6.2 / 6.4 Parts Per Million (PPM)
Expectations / Important
Documents
Added new link to SPPM form
2/11/10 3.5 13.0 Production process
change
Added new language on supplier
requirements

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2.0 Quality Expectations
2.1 Quality Expectations Introduction
A solid systems approach to quality management is essential to achieve the level of quality integrity
required by today's demanding customers. Such an approach yields many benefits:

A common platform for quality management
Improved communication due to shared systems
Common format for training
Systematic change control

We require all suppliers of production material to receive ISO/TS-16949 third party registration. Johnson
Controls must recognize this third party. In addition to the assessment it is required that a copy of the
most recent evaluation and corrective action plan must be provided to Johnson Controls Purchasing.
3.0 Advanced Quality Planning (APQP)
3.1 Advanced Quality Planning (APQP)
Advanced Product Quality Planning (APQP) is the industry standard by which new products are
introduced into the automotive market. APQP will be the tool used to monitor launch activities for all
suppliers.

The supplier will be notified of which parts will be required for APQP tracking. Program kick-off meetings
often are held to further communicate launch requirements. Your Quality Engineer and/or Buyer will be
the main APQP contact throughout the launch.

Johnson Controls has developed a common global Product Launch System (PLUS). It provides a
consistent advanced product quality planning process. It is still possible that suppliers may be required to
provide some unique customer specific processes or documents. If this is the case you will be notified
accordingly.

All preproduction parts must be marked / labeled with the Johnson Controls - Automotive Experience (AE)
part number and revision level as indicated on the CAD model and / or drawing. Pre-production parts that
are shipped without proper identification as stated above will be returned to the supplier at their expense.
4.0 Process Sign-Off (PSO)
4.1 Process Sign-Off (PSO)Introduction
Process Sign-Off (PSO) is an in depth review of all processing facets associated with the manufacture of
products purchased by Johnson Controls. The PSO process is a cross functional evaluation of a suppliers
readiness to produce product at a specified volume prior to the physical launch of a program at Johnson
Controls.
4.2 Process Sign-Off (PSO) Expectations
The PSO review covers both the process documentation and the actual process. By establishing the
documentation as evidence of the intended process and then reviewing the actual process running at
production rate, Johnson Controls will have a first hand understanding of the partner supplier's production
readiness. Johnson Controls will use this PSO process as a tool to assure our customers that suppliers
have met all requirements. The PSO check list and associated reference questions are available in the
attached appendices.
4.3 Important Documents and Supplementation to Section
Process Sign-Off Check List

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5.0 Measurement System Analysis (MSA)
5.1 Measurement System Analysis (MSA) Introduction
AIAG's Measurement System Analysis - MSA (as well as the VDA 4.1) manual describes the
methodology for ascertaining if the measurement techniques and equipment used are capable of
collecting accurate data to drive improvements.
5.2 Measurement System Analysis (MSA) Expectations
Johnson Controls suppliers are required to use statistical methods to understand product and process
variation in order to proactively prevent non-conformance.

Johnson Controls suppliers are expected to establish the appropriate Statistical Process Controls (SPC)
for the special characteristic(s) selected during the APQP process (refer to AIAG's Statistical Process
Control manual).

Special characteristics will be clearly identified on drawings. Special characteristics require the completion
of short-term capability studies:
Before a part goes into production (Process Potential Study - as a part of the PPAP and PSO).
When an engineering change is made that affects a special characteristic.
When major tool maintenance/repair occurs that affects the characteristic, occurs.

The supplier's control plan will be used to define the method and means of control of special
characteristics during production. A special characteristic does not necessarily require the use of ongoing
SPC. However, unless otherwise specified by the Customer, short-term capability must exceed 1.67 CpK
after supplier has demonstrated a stable process. Long-term capability must achieve 1.33 CpK. When the
process has demonstrated capability with these targets, the frequency and quantity of sampling should be
reflected on the control plan.
6.0 Parts Per Million (PPM)
6.1 Parts Per Million (PPM) Introduction
One of the measurements of Quality Performance of suppliers is defective Parts Per Million (PPM).
6.2 Parts Per Million (PPM) Expectations
The expectation for supplier performance is 0 PPM (zero defects).

Product received into Johnson Controls (JCI) facilities that does not conform to the drawing,
specifications and/or agreed upon standards will be counted against a supplier's PPM record. Quantities
will be reported in the units of measure in which they are purchased. This applies to production parts /
saleable units.

The following are PPM assignable:
Production Parts which do not meet drawing specifications or dimensional, functional, or
appearance standards as called out in the specifications or from an agreed-upon
boundary sample.
Out-of-spec parts that require rework/repair in order to be used.
Production Parts damaged from inadequate packaging or transportation for which the
supplier is responsible.
In cases where the supplier may be shipping prior to PPAP with an approved customer
deviation, any defects outside of the boundaries defined by the deviation.
Out-of-spec parts shipped prior to PPAP approval without an approved customer
deviation.

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Shipments that are received with mixed parts or parts that are the wrong revision level
after the break point has been established. PPM is assigned for the quantity of incorrect
parts only.

The following are NOT PPM assignable:
Parts that meet all drawing specifications and/or boundary sample requirements, but are
not useable.
Parts that meet all specifications and/or standards but have been rejected by a Johnson
Controls (JCI) customer.
Parts that have not been released and approved for production and/or have no released
drawing (i.e. launch parts, sample/trial parts, DOE parts, pre-productions parts, etc.).
Parts that are outside the production system will be addressed through prototype quality
measures.
Parts that have an approved deviation for an out-of-spec condition cannot be assigned
PPM for rejects associated with the deviated characteristic.
Parts that have been received with a delivery-related issue (see list below for DMR
assignable issues). Part information errors, delivery errors, and quantity errors should
be rejected as a DMR rather than an SMRR. See the DMR form below for DMR
assignable issues.
Click here for DMR Form (Discrepant Material Report)
In any of the above situations, it may be appropriate for an 8D to be requested, an MQR I
or II to be scheduled, and/or Level I or II Containment to be initiated.

The Johnson Controls (JCI) Supplier Quality Engineer at the receiving plant location is responsible for the
accurate application of PPM. In some cases, extenuating circumstances may lead to an adjustment in
the amount of PPM charged to a supplier. Adjustments to a supplier reported PPM should be requested
using the Request for Amendment to Supplier Data or contact the originator of the rejection.

6.3 Sorting Expectations
Parts may be sorted at the appropriate location (Supplier or JCI site). Parts received at the Johnson
Controls (JCI) location or other JCI ship-to point that are rejected by the sort stay on the supplier's PPM
record. PPM will be adjusted after the sort is complete, unless sampling has predicted a % defective
within the isolated lot, not the entire lot. This also applies to parts on containment.

If suspect parts are removed from a Johnson Controls (JCI) location and sorted off-site (at the supplier's
or a third-party facility), the supplier has ten (10) business days to report actual reject totals identified
during the sort to the affected JCI facility. If reject data is not provided within that time, the entire quantity
of parts transferred off-site will be subject to PPM assignment.

If the supplier identifies, communicates, and takes appropriate action to contain and correct a potential
problem before the problem is identified or the parts are used at a Johnson Controls site, then the parts
will not be counted against PPM. If the problem is identified or used at Johnson Controls prior to contact
from the supplier, the PPM count will be incurred.

Parts which are out-of-spec may be used as is with an approved deviation if required to maintain
production and not disrupt the end customer. In these cases, PPM may be assigned as determined by
the receiving Johnson Controls (JCI) plant. Cases such as these will be reviewed and determined based
on the severity of the issue.

6.4 Important Documents and Supplementation to Section
Request for Amendment to Supplier Data

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7.0 Supplier Material Rejection Report (SMRR)
7.1 Supplier Material Rejection Report (SMRR)
Suppliers are notified of non-conforming material through a documented rejection notice. This document
is issued whenever purchased material is identified which does not conform to quality requirements. The
purpose of this section is to identify expectations regarding SMRRs. SMRR's are subject to a debit of
$100 per occurrence.
7.2 Supplier Material Rejection Report (SMRR) Communication
Non-conforming material may be identified during incoming inspection, assembly, processing, audit, OEM
notification, or reliability testing. An authorization number will be requested from the supplier for debit
authorization of on-site scrap, rework, sort or return of material.
The Rejection document serves the following functions:
Accounting Debit Memo
Packing Slip for Returning Material
Quality Record for Generating PPM
Supplier Response Request (8D)
Communication of Issues to purchasing
Record to Support Adjustment of Suppliers Cumulative Shipment History.
7.3 Supplier Material Rejection Report (SMRR) Expectations
Suppliers must send their appropriate Johnson Controls Supplier Quality contact a written interim
containment plan within 24 hours of problem notification using the 8D methodology.

When requested, within seven calendar days, the supplier is expected to communicate in writing the
problem solving results utilizing the 8D approach. If the supplier is unable to resolve the quality issue
within the seven-day period, a weekly updated 8D must be provided to Johnson Controls until problem
resolution is achieved, unless otherwise specified by the customer business unit.
8.0 Problem Solving 8 Dimensions (8D)
8.1 Problem Solving (8D) Expectations
The 8D Problem Analysis Report is the Johnson Controls preferred problem solving format for use by all
Johnson Controls Facilities and Suppliers.

Each Supplier is responsible for appropriate and timely application of the 8D, and for the knowledge and
skill level of their organization to solve problems.

The 8D Problem Analysis Report provides a means for the definition and resolution of issues through
problem solving.
9.0 Supplier Management Quality Review (MQR)
9.1 Management Quality Review (MQR) Introduction
Management Quality Review meetings are held to analyze and review the current problem situation
(quality, delivery, or other problems). Supplier accountability and response will be a focus. There are
three "escalation" levels on which a MQR meeting may be held.
MQR 1 Plant Level
MQR 2 Divisional / Business Unit Level
MQR 3 Group Level
A MQR may be arranged if a supplier is considered responsible for an issue that results in:
Product Safety characteristic as defined on the print does not meet PpK, CpK requirements.
Production suspended due to supplier's product quality or part shortage.
A sort or rework at Johnson Controls and / or customer completed due to supplier's product
quality.

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One of the top poorest performing suppliers.

9.2 Management Quality Review I (MQRI) Communication/Expectations
The purpose of an MQR is to emphasize and prioritize high-risk problems. A supplier will be notified by a
Johnson Controls Automotive Experience quality contact, by phone call, fax, or email of any MQR, which
is required.

Suppliers must formally communicate the following, in written 8 Discipline (8D) format, to your quality
contact, within 24 hours of problem notification:
Details of containment actions implemented, verification of effectiveness and results obtained
(quantity of defects found by location, etc.).
The plan to identify root cause (to include projected timing).
You must issue a weekly (written) 8D status report, to your quality contact, until problem closure.
You may be required to present problem resolution (in 8D format) to Johnson Controls plant and
purchasing management at an MQR review.

A supplier with a pattern of chronic issues (especially with a recent trend deterioration) will be invited to
an MQR 2 meeting. The intent of the meeting is to bring additional focus to the top issues facing the
organization in order to bring about the necessary improvement.

9.3 Management Quality Review II (MQRII) Communication/Expectations
A supplier is expected to confirm attendance Discrepant Material Report with the Divisional / Business
Unit Quality Director.

The supplier is expected to present the following at the MQR 2 meeting
1. Most recent quarterly supplier rating report.
2. Be prepared to explain any deficiencies in the four areas of the supplier rating:
Quality
Delivery
Commercial
Technology
3. Be prepared to present an 8D that addresses your company's efforts to improve the
systems, which affected your rating in any of the four categories listed above.

The supplier must include all 8Ds written to address specific issues that affected your overall rating, i.e.
8Ds written for MQR I, previous rejected material, DISCREPANT MATERIAL REPORTs, etc.

Note: This meeting is not meant to be a "brainstorming session." All items listed above are expected to
be completed and forwarded to your Buyer 72 hours prior to the meeting.

The following personnel must attend MQR 2 meetings:
Supplier Plant Manager
Supplier Quality Manager
Supplier Account Manager

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10.0 Quality Roadmap
10.1 Quality Roadmap
Suppliers are expected to maintain a quality roadmap documenting current quality performance at
Johnson Controls (JCI) and action plans to improve performance.

The PPM Roadmap has been developed as an electronic file. This file is available from your Supplier
Quality/Development Manager.
11.0 Containment
11.1 Containment Introduction
Containment is accomplished through deployment of additional controls in the suppliers manufacturing
process to identify a known or potential non-conformance and to prevent it from being shipped to Johnson
Controls.

Additional controls can include, but are not limited to: inspection audits, dimensional measurements, SPC
requirements, appearance checks, part functionality checks, label verification systems, check fixtures and
gages, and poka yokes.

The goal of containment is to protect Johnson Controls from defective material escapes during the initial
product and process startup (pre-production), throughout production, and in reaction to a supplier quality
issue identified at Johnson Controls (Level I or II.) The following sections detail Johnson Controls'
expectations for each of these phases.
11.2 Containment Expectations
Pre-production containment applies to any parts produced for prototype, pilot or saleable vehicle builds at
Johnson Controls prior to full production. Pre-production containment activities are a requirement of the
Supplier AQP and must be documented on a prototype or pre-launch control plan.

The pre-launch control plan is a comprehensive document of product and process characteristics,
process controls, tests, and measurements systems that occur during pre-production. The control plan is
typically developed from the process FMEA and follows the process flowchart order, including evidence of
incoming inspection, manufacturing process and controls, finished parts audit and containment activities.

The pre-launch control plan includes increased frequencies and additional tests over and above the
production control plan to ensure heightened product and process quality until the suppliers production
process is validated. The sample sizes and frequencies for in-process checks are based on historical
experience with the process and prototype builds. During pre-production, the sample size or frequency of
product re-inspection is typically 100% and does not replace the final part audit.

The Johnson Controls Advance Quality Engineer will review the pre-launch control plan. The final pre-
launch control plan will be approved at the suppliers process signoff. Open issues from the process
signoff will drive deployment of additional controls and documentation in the pre-launch control plan. On-
site representation may be required at Job 1 start, depending on the criticality of the part and, or, process.

At production start-up, Johnson Controls' Launch or Plant Quality will continue to monitor pre-launch
containment activities until exit criteria is met. Issues that remain unresolved after Job 1 will be subject to
Level I containment. Additionally, a Level I failure during production start-up will require instituting third
party inspection to shield Johnson Controls (JCI) from non-conformance during this phase.

Criteria for exiting pre-production containment will be determined by Johnson Controls. To exit required
containment, the supplier must achieve a pre-determined quality level after a minimum of 30 days or
three production lots. The supplier is responsible to have documentation as proof of adherence to their

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established pre-launch containment plan. Quality tools, such as trend/pareto/paynter chart, are expected
to verify containment effectiveness.
11.3 Containment Level I Expectations
Level I containment is defined as additional controls implemented at the suppliers location, upon Johnson
Controls request, following the identification of a supplier quality issue. The goal of this containment is to
cleanse the entire system of any non-conforming material and to shield Johnson Controls (JCI) from
receiving any additional defective product. The supplier is required to quarantine and sort all suspect
products within their facility, at their subcontractors, in transit, and at Johnson Controls facilities, and at
any customer service parts location, which may have parts in inventory.

Upon identification of an issue, the Johnson Controls plant quality contact will initiate containment
activities by sending a Level I letter to the suppliers Quality Manager. The letter details the specific
nonconformance and required supplier actions, including inspection and exit criteria. (Level I Attachment)

The Johnson Controls plant quality contact will place a follow-up phone call ensuring that the supplier
representative has received the letter and requesting immediate containment activity based at the
suppliers facility. The supplier is responsible for acknowledging the Level I notification by returning a
copy of the letter with an authorizing signature to the Johnson Controls plant quality contact.

The supplier will be responsible to reply with their implemented containment plan via an initial EW8D
within 24 hours of Level I notification. The containment plan must be reviewed and agreed upon by the
Johnson Controls plant quality contact. The supplier is responsible for keeping the customer location
advised of ongoing containment results until released from Level I.

Supplier containment guidelines include the following:
Containment area must be highly visible and properly lighted, equipped, etc.
Containment area must have well-defined material flow, including clearly identified areas for
incoming and outgoing parts.
No rework must be done in the containment area.
Product acceptance standards and measurement / testing process to be agreed upon by Johnson
Controls plant quality contact.
Number of nonconformances, corrective actions, and results of activity must be readily available.
Charts must be updated and reviewed on a daily basis.
Problem solving must be formal, data driven and documented.
Containment personnel must be properly trained and have job instructions, quality standards,
boundary samples, etc.
Data from the suppliers containment activities must be kept on file and available upon Johnson
Controls request.

Quality tools such as trend/pareto/paynter charts should be utilized as verification of containment
effectiveness. This data will be held in Johnson Controls product file after completion and exit from Level
I containment.

Criteria for exiting Level I containment will be determined by the Johnson Controls plant quality contact.
Exit criteria will be based on reaching a pre-determined quality level, not a number of parts or days
sorted. To exit required containment, the supplier must achieve a pre-determined quality level after a
minimum of 30 days and, or three production lots. The exit plan must include clear and measurable
elements for the specific nonconformance issues being addressed and a timeline for implementation of
permanent corrective actions. Johnson Control plant quality contact will evaluate the exit criteria and will
communicate in writing that the supplier has been removed from Level I containment.

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11.4 Containment Level II Expectations
Level II containment is defined as the implementation of additional controls by an impartial third party
selected by Johnson Controls at the expense of the supplier. Level II containment is enacted when a
suppliers Level I containment activity fails to shield Johnson Controls from receipt of non-conforming
material.

The Johnson Control plant quality contact analyzes the nonconformance issue(s) and determines if Level
II containment is required. The Johnson Controls plant quality contact (or other appropriate personnel
such as the Supplier Development representative or commodity buyer) will initiate containment activities
by making the selection of who will be doing the 3rd party containment and by sending a Level II letter to
the suppliers Plant Manager and Quality Manager. Johnson Controls Purchasing Buyer and or Supplier
Development Manager is actively involved in the decision to implement Level II containment.

The Level II letter details the specific nonconformance and required supplier actions, including inspection
and exit criteria. In addition, the letter may communicate a kick-off meeting agenda specific to the
suppliers failed Level I. The agenda will include discussion of the following:

Description of the problem
Definition of roles and responsibilities
Details of containment plan
Review of control plan
Review of corrective action steps (8D)
Definition of exit criteria
Definition of communication plan

The Johnson Controls plant quality contact will place a follow-up phone call ensuring that the supplier
representative has received the letter. The supplier is responsible for confirming receipt of the Level II
notification with an authorized signature by returning a copy of the letter to the Johnson Controls plant
quality contact. (Level II Attachment)

The Johnson Controls plant quality contact assigns a sorting company (third party) to perform the Level II
containment activities. The suppliers input on the company used will be considered in the decision
making process. Johnson Controls plant quality contact will define the required checks and facilitate
definition of the exit criteria.

The third party will be responsible for performing the sort function per the established inspection criteria
and recording the results. The third party will provide documentation to both the supplier and Johnson
Controls plant quality on the progress of containment activity.

The supplier is responsible for issuing the purchase order to the third party source and is responsible for
all costs for the sort company performing containment activities. Initiation of Level II containment does not
relieve the supplier of any relevant Level I activities following the aforementioned containment guidelines
and responsibilities.

Additionally, the supplier is required to develop a Level II communication plan. The plan should address
the format and frequency of communication to the affected Johnson Controls location. The supplier is
responsible for communication of all issues identified during Level II containment. It is also appropriate for
the supplier to establish a daily internal review to understand the discrepancies reported by the third party
and to drive the problem resolution activities.

Level II will not be removed until a review of the data indicates that all significant issues show evidence of
closure as evidenced through no issues found in the Level I containment upstream in the process. If

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applicable, a review meeting will be scheduled at the suppliers facility to review the data prior to
discontinuing the audit.

The following items are subject to review:
Supporting data and charts indicating closure and effectiveness
Implemented corrective actions for all identified issues (8D)
Updated PFMEA and control plan (available for review on suppliers manufacturing floor)
Timetable to ensure permanent nature of all corrective actions

Following this review, the Johnson Controls plant quality contact will evaluate the exit criteria and
communicate in writing that the supplier has been removed from Level II containment. Level I
containment must continue at the suppliers location until the Johnson Controls plant quality contact has
given approval for Level I to be discontinued.

Level II will not be removed until a review of the data indicates that all significant issues show evidence of
closure as evidenced through no issues found in the Level I containment upstream in the process. If
applicable, a review meeting will be scheduled at the suppliers facility to review the data prior to
discontinuing the audit.

The following items are subject to review:
Supporting data and charts indicating closure and effectiveness
Implemented corrective actions for all identified issues (8D)
Updated PFMEA and control plan (available for review on suppliers manufacturing floor)
Timetable to ensure permanent nature of all corrective actions

Following this review, the Johnson Controls plant quality contact will evaluate the exit criteria and
communicate in writing that the supplier has been removed from Level II containment. Level I
containment must continue at the suppliers location until the Johnson Controls plant quality contact has
given approval for Level I to be discontinued.

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February 2010 version 3.5


JOHNSON CONTROLS, INC.
NOTIFICATION OF LEVEL I CONTAINMENT

(Date)
(Supplier Name)
(Supplier Address)
(Supplier Address)

Dear (Quality Manager):

It is our expectation to provide our customers with defect-free products on-time, every time. In
order to achieve this level of customer service, our Extended Enterprise must have the same
expectations. When our suppliers miss this target, our focus is unnecessarily diverted from
building defect-free products to shielding our operations and customers from non-conforming
material.

As a result of an identified quality issues at our (Johnson Controls site location), the following part
number(s) are being placed on Level I containment at your location:

Part Number(s):
Part Name:
Problem Description:

Therefore, the following supplier actions are required:
1. Return a copy of this letter with an authorized signature confirming that you received notification and
understand the requirements.
2. Exercise immediate 100% containment action for the part(s) listed.
3. Initiate 8D issue resolution through the containment phase and provide timing on all remaining disciplines
within 24 hours of notification.
4. E-mail or fax initial 8D to the appropriate Johnson Controls plant quality contact.
5. Identify all future shipments of product on containment with "100% Containment" in black inch high letters
directly below the label. All shipments on containment, but not identified appropriately, will be segregated
as nonconforming material and will require supplier personnel to sort at the affected Johnson Controls site
location.

To exit from Level I Containment, you must provide the following:
1. Data, which shows the issue, has been resolved and appropriately contained in the number of
discrepancies found as a result of your containment process for a minimum of 30 days or three production
lots.
2. Repeat shipments that do not exhibit any discrepancies.
3. The Quality Roadmap indicating implementation of permanent corrective action and improvements to
quality system and/or process changes that will prevent reoccurrence.
4. The purpose of this action is to ensure that additional defects are not shipped to Johnson Controls and that
problem resolution is initiated in a timely manner. If your immediate containment actions do not protect
Johnson Controls (JCI) from receipt of further defects, you will receive a notification that your organization
will be placed on Level II containment. Level II will require a third party contracted to sort at your expense.

If you have any further questions, please contact me at (xxx) xxx-xxxx.

Sincerely,

Plant Quality Engineer
cc: Site Quality/Technical Manager
Supplier Development Manager
_______________________________________________________________

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LEVEL I CONFIRMATION

We acknowledge receipt of your letter advising that our organization has been placed on
Level I containment. We understand the containment and exit criteria requirements
discussed in this letter.

____________________________________ _________________
Authorized Signature (Plant Manager) Date

____________________________________
Printed Name and Title

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JOHNSON CONTROLS, INC.
NOTIFICATION OF LEVEL II CONTAINMENT

(Date)
(Supplier Name)
(Supplier Address)
(Supplier Address)

Dear (President/CEO/Owner):

Due to an occurrence of failure in your Level I containment at our (Johnson Controls site location), we
believe that your organization is no longer able to protect Johnson Controls from receipt of non-
conforming product. Therefore, Level II containment is required by your organization to contain all
discrepancies until you can re-establish process control. All third party expenses will be your
responsibility.

The third party inspection company will be responsible for inspection of your production parts, forwarding
actual discrepant parts, and providing data for you to utilize in your root cause analysis. Third party
containment should shorten the feedback loop and enhance corrective action efforts.

The following part number(s) are being placed on Level II containment at your location:

Part Number:
Part Name:
Problem Description:

The following supplier actions are required:
1. Return a copy of this letter with an authorized signature confirming that you received notification and understand the
requirements.
2. Contact third party Company to determine purchase order and payment arrangements.
3. If applicable, participate in Level II kickoff meeting with the Johnson Controls plant quality representatives, third party
personnel, and Supplier Development.
4. Establish a daily review at your facility to understand the discrepancies documented by the third party and drive the appropriate
improvement actions
5. Continue Level I activities until instructed otherwise by Johnson Controls personnel.

To exit from Level II Containment, you must provide the following:
1. Data which shows a continuous reduction in the number of discrepancies found as a result of third party sorting for a minimum
of 30 days and, or, three production lots.
2. Repeat shipments that do not exhibit any discrepancies.
3. 8D resolution indicating implementation of permanent corrective action and improvements to quality system and/or process
changes that will prevent reoccurrence.

The purpose of this action is to ensure that additional defects are not shipped to Johnson Controls and
that problem resolution is initiated in a timely manner. If you have any further questions, please contact
me at (xxx) xxx-xxxx.

Sincerely,

Plant Quality Engineer
cc: Supplier Quality Manager, Site Quality/Technical Manager, Supplier Development Manager, Commodity Buyer
______________________________________________________________

Chapter 7


LEVEL II CONFIRMATION

We acknowledge receipt of your letter advising that our organization has been placed
on Level II containment. We understand the containment and exit criteria requirements
discussed in this letter.

____________________________________ _________________
President/CEO/Owner Signature Date

____________________________________
Printed Name and Title

Chapter 7


12.0 Safety Critical Product Requirements

12.1 Introduction

This section contains the links required for suppliers who manufacture safety critical products for Johnson
Controls. These links include PFMEA and Control Plan templates, special process audits/checklists, and
manufacturing and/or design guidelines/work instructions. The products, processes, or materials that
these apply to are: HSLA steel, visor labels, seat heaters, safety fasteners and rivets, torque standards,
welding, and lower anchorage/ISOFIX.

Suppliers may click on any of the below links and download the file(s) for their use.

12.2 Links to Safety Critical Templates/Checklists/Guidelines

Welding Last Revision Date
Arc Welding Design Standards Checklist 01/25/2008
GMAW PFMEA & Control Plan Templates 02/12/2008
GMAW System Integrity Checklist 04/02/2008
ISO 2553 Weld Symbols & Definitions 07/30/2003
JCI Universal Weld Numbering System 11/11/2003
Resistance Welding Design Standards Checklist 07/07/2005
Standard Weld Drawing Notations 06/29/2004

Rivet Last Revision Date
Rivet PFMEA & Control Plan Templates 04/02/2008
Rivet System Integrity Checklist 04/02/2008
Rivet Template Training 08/10/2006

Torque Last Revision Date
Breakaway Torque Wrench Standard 11/16/2007
Direct Current (DC) Torque Tool Setup W.I. 11/02/2006
Threaded Fastener PFMEA & Control Plan Templates 08/04/1999
Torque Tool Method Final5 02/25/2008
Torque Integrity Checklist 04/15/2001

Lower Anchorage (ISOFIX) Last Revision Date
Lower Anchorage Wire Control Plan Template 04/08/2008

Steel & Wire Last Revision Date
Hardness Check EGN-MOS-WI-10-01-06 E Rev 02 05/04/2007
JCI Approved Sheet Steel Grade Matrix US/EU/Asia 03/28/2008
Materials Checklist 03/28/2008
MEPM PLUS SP 04-07-04 Welded Seat Frame Wire 01/17/2008

Seat Heat Last Revision Date
Peel & Stick Heater Control Plan Template 04/02/2008
Peel & Stick Heater PFMEA Template 04/02/2008
Peel & Stick Heater ODS Template 02/01/2008

Visor Labels Last Revision Date
FMVSS 208 Checklist for Visor Labels 04/02/2008

Chapter 7


13.0 Supplier Request for Change

13.1 Production Process Change
This procedure defines the steps for production process changes to ensure that the changes meet
Johnson Controls Automotive Experience (AE) requirements and Johnson Controls AEs customers
requirements. All suppliers are expected to follow the process as outlined in section 13.1

Johnson Controls requires advance notification and written approval prior to all changes and or transfers.
Failure to do so could result in your company being place on New Business Hold status, a formal
notification to your TS16949 or ISO/QS9001 register, and potential financial consequences.

Process changes that require Johnson Controls approval:
Any change that could affect form, fit or function
Product Change
Supplier Manufacturing Process Change (temporary or permanent)
o Change in manufacturing or shipping location
o Change in sub-supplier
o Modified equipment
o Refurbished equipment / tooling
o New equipment or tooling to increase capacity
o Changes in test / inspection method
o Revised line layout that results in elimination or addition of a work station

Steps for obtaining approval for the requested process change:
1. Submit a completed Supplier Change Request (SCR) Form (refer to section 13.2) to the
Plant Quality Manager / Quality Engineer in which the parts are shipped to.
2. Plant Quality Manager / Quality Engineer evaluate SCR for completeness and acceptability.
Considerations for approval include OEM notification / approval, OEM specific requirements,
safety characteristics, validation, capability studies, timing, risk, etc.
3. When the supplier receives a Johnson Controls response to move forward, a Supplier Part
Submission (refer to section 13.3) package must be submitted by the supplier to the Plant
Quality Manager / Quality Engineer.
4. Once the Supplier Part Submission and Supplier Change Request are approved by the Plant
Quality Manager / Quality Engineer, the supplier can proceed with the process change.
5. The first shipment after approval must be tagged and identified to reference the SCR number.

Supplied components with a Supplier Change Request number on the Changed Production Part Tag are
subject to incoming inspection at the receiving plants Quality Managers / Quality Engineers discretion.

13.2 Supplier Change Request Form
Supplier Change Request Form

13.3 Supplier Part Submission
Supplier Part Submission

Global Supplier Standards Manual Quality Expectations Section

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