Automotive

CAP0600698-09

Procedure: Faulty Material in Production Area

Maturity
draft
released

Creator
Mariana Solomon
SQM - Quality
Date: 27.03.2015
E-sign ID: 3770142

Process Owner
Hans-Guenther Kein
Quality Manager
Date: 27.03.2015
E-sign ID: 3770142

Change Reason
Add information about the
storage of the scraped parts
in quarantine area.

Objective
Subject: To define the process in case a quality alert is initiated from production line, from the raw material
supplier, or from other Continental locations (in a form of Early Warning or Read Alert) related to the raw materials
waiting to be assembled in CA Plant BSV's production line.
Goal: This procedure is applicable for Continental Powertrain Romania, production site 1 (Cristian) production site
2 (Ghimbav). Note: For situations when the quality alert also affects materials in unrestricted stock, the reaction
process to be applied is described in CAP0600703 Faulty Materials in Unrestricted Stock.

Scope
This regulation is mandatory for:
Continental Automotive and its majority
interests as well as minority interests with
management control by Continental Automotive.
Division
Business Unit
Automotive Function
Region
Country
Site
Plant

Brasov

Other

Table of Content
Procedure: Faulty Material in Production Area ............................................................................................................. 1
1 Process Flow ......................................................................................................................................................... 2
1.1
Faulty Material in Production Area ............................................................................................................... 2
1.1.1 Rasi Chart ................................................................................................................................................. 4
2

3
4

5
6

Explanations about the Faulty Material in Production Area Process .................................................................... 6

2.1
Overview ....................................................................................................................................................... 6
2.2
Abbreviations ................................................................................................................................................ 7
2.3
Definitions ..................................................................................................................................................... 7
Implementation ...................................................................................................................................................... 8
References ............................................................................................................................................................ 8
4.1
Mandatory ..................................................................................................................................................... 8
4.2
Other ............................................................................................................................................................. 8
Document History .................................................................................................................................................. 8
Responsible persons ............................................................................................................................................. 8
6.1
Process Team ............................................................................................................................................... 8

For internal use only

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Automotive
CAP0600698-09

1
1.1

Process Flow
Faulty Material in Production Area

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Automotive
CAP0600698-09

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Automotive
CAP0600698-09

1.1.1 Rasi Chart

Input

Identify the
suspect materials
in production line

Identify the suspect

materials in production
line

Investigate and confirm or not

supplier liability

SQM and PQE

check if it is
supplier liability or
not, and take a
decision whether
to claim to
supplier of release
into free stock

Supplier liability has

not been confirmed

Parts can be used in

production and analyze
continue with all 5M

Good materials in
unrestricted stock

Supplier liability has

been confirmed
Supplier liability has
been confirmed. NCR
updated

Suspected materials to
be quarantined

10

11

12

For internal use only

Continental AG, 2015

Inform concerned Depts

about the disturbance

NCR updated
Suspected
materials to be
quarantined

Quality issue has

been contained

All affected
departments must
take actions if
production could
be affected

Ask for containment

actions

Sort necessary?

Logistics, SQM
and supplier
decide if sorting is
necessary

Sort needed

Issue TO from all storage

bins to IQC in SAP

Good parts are

urgently needed
in production

Sort needed

Physical transfer requested

materials to IQC

Good parts are

urgently needed
in production

Sort needed

SQM/supplier defines the

inspection criteria

Identify good/bad
materials

Quality information to
the supplier and
request sorting

SQM updates the inspection

plan and removes STS flag

Verification of the
next 3 deliveries

Open a Non conformity

Raport
Transfer in SAP(IQC) and
physical (LO Whs) the
suspected materials from
production line to quarantine
Transfer in SAP(IQC) and
physical( Lo WHS) the
suspected materials from
WHS to Quarantine and
check with other production
lines for the same issue.

I
Suspected materials
blocked

Output

Analyze on the production line

if the issue could be from the
raw matterial

Quality issue in
production area
2

Activities

Applic
able
Docu
ments

LO Whs.

LO

Analyze Technician
Financial

Quality Inspector

IQC Technician

Shift Supervisor

PQE

ME

Supplier

Roles / Organizational Units

R: Responsibility, A: Approval,
S: Support, I: Information

SQM

N
o.

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CAP0
6
00694F01

Automotive
CAP0600698-09

14

15

16

17

18

19

Input

Activities

Output

Sorting activity
necessary

Segregate between good and

bad parts

Block bad parts,

release to free
stock good parts

In case the sorting is

not necessary

Issue TO for all the storage

bins from WHS Quarantine

TO issued for the

storage bins

TO issued for the

transfer of the parts to
Quarantine

Physical transfer materials

from all storage bins to
Quarantine

Parts in
Quarantine area

Segregate between
good and bad materials

Good Materials?

Good materials
needed for
production

Good materials

Issue TO from IQC to

Warehouse (unrestricted
stock) in SAP

Good materials
needed for
production

Good materials

Physical transfer the released

materials from IQC to WHS

Good materials
needed for
production

LO Whs.

LO

Analyze Technician
Financial

Quality Inspector

IQC Technician

PQE

ME

SQM
13

Shift Supervisor

Roles / Organizational Units

R: Responsibility, A: Approval,
S: Support, I: Information

Supplier

N
o.

S
Bad materials

20

R
Bad materials identified

21

22

23

SAP(IQC) and Physical (Lo

WHS)transfer the storage
bins from IQC to Raw
material Quarantine area
Create Quality Notification in
SAP and link the NR from
production with the QN to
supplier

Bad materials in
quarantine

Quality claim to
the supplier

All affected
departments must take
actions if production
could be affected

SQM sends official complaint

to the supplier (ask for 8D
report)

Ask for supplier

actions

Additional costs
generated by the
quality complaint

SQM must ensure collection

of additional costs if case

Invoice the
additional costs to
the supplier

SQM request
confirmation for
returning the affected
batches to supplier

SQM receives the

confirmation

Recover costs for raw

material

Issue debit note to supplier if

case

Invoice of raw
material costs

Incoming Inspection
needed

Update incoming inspection

test plan

Due to
disturbance
materials must be
inspected

Segregate between
good and bad parts

LO WHS will pack the bad

parts for shipping

Ship the bad parts

to the supplier

Quality complaint to the

supplier

SQM must ensure receipt of

8D report

Get corrective and

preventive actions
to the quality
complaint

Ship the bad parts

to the supplier

24
I
25

26

27

For internal use only

Continental AG, 2015

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Applic
able
Docu
ments

Automotive
CAP0600698-09

28

2
2.1

Input

Activities

Output

Additional costs
generated by complaint

Charge additional costs

Invoice the
additional costs to
the supplier

Applic
able
Docu
ments

LO Whs.

LO

Analyze Technician
Financial

Quality Inspector

IQC Technician

Shift Supervisor

PQE

ME

Supplier

Roles / Organizational Units

R: Responsibility, A: Approval,
S: Support, I: Information

SQM

N
o.

Explanations about the Faulty Material in Production Area Process

Overview
1. Identify the issue in production line and start analyze the root cause of the issue.
2. AT, SQM and PQE decide together with the Shift Supervisor if it is supplier liability related to the raw
material.
3. If the supplier liability is not confirmed the suspected raw material is used in production and the analyze
continue with all 5M.
4. If the supplier liability is confirmed the Analyze Technician is responsible to create a Non-Conformance
Report and give it to Quality Inspectors. In case the parts can be measured at the incoming inspection the
IQC will register the results in form CAP0600698-F01-Test Report Nonconformity. The evidence of all test
reports nonconformity is kept using CAP0600698-F02-Nonconformity Order Registry.
5. All suspected raw materials from production line are transferred to the Quarantine by IQC Technician in
SAP and physically move to quarantine with WH support.
6. IQC tech is responsible to quarantine in SAP and physical all suspected raw materials from WHS and use
the form CAP0600690-F01 - Blocked parts for each packing unit for identification. For blocking and transfer
to quarantine the raw material use the SAP transactions: LQ02 (Movement type: 944), MB1B (Movement
type: 325; Rcvg SLoc: 1480; SLoc: 1400), LB12 ( choose location from Quarantine area: box or
pallet ), LT24.
In special cases, when it is not possible to transfer physically the entire quantity of suspected components
into quarantine, it is allowed to block the parts direcly on the shelve. The blocked material on the shelves
should be marked with red blocking tape and use the form CAP0600690-F01 - Blocked parts for each
packing unit for identification.
7. If the supplier liability is confirmed than SQM must inform first all concerned departments about the
disturbance.
8. SQM, and supplier decide about the need of sorting.
9. IQC technician is responsible to issue TO for the storage bins from the WHS to the IQC area (LT10
Create Transfer Order from List movement type 946 Picking to STyp 927 (S)).
10. Logistic WHS transfers the materials from all requested locations to IQC.
11. If the parts must be sorted 100% the SQM must prepare, with support from the supplier, IQC tech or an
external company the sorting of the parts performed in accordance with Sorting sheet CAP 0600694-F06.
SQM/supplier defines the inspection criteria and train the IQC tech /external company to sort.
12. SQM updates the inspection plan and removes STS flag.
13. Parts have to be segregated during sorting activity either by the sorting company or by IQC tech.
14. In case the sorting is not necessary and all parts can be returned to the supplier, IQC technician is
responsible to issue TO for the storage bins from the WHS to the Quarantine area.Logistic WHS transfers
the materials from all requested locations to Quarantine.
15. Are there any good materials after sorting activity?

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Automotive
CAP0600698-09

16. All good materials are transferred in SAP by IQC tech from IQC area to WHS (unrestricted stock) using
transaction LT10 (Movement type: 945).
17. Good materials are transported from IQC area to WHS unrestricted stock.
18. All released materials are transferred from IQC to Raw material WH by WH operator.
19. Transfer the bad raw material phisycal and in SAP to Quarantine by IQC.
20. IQC technician must create the Quality Notification into SAP and link it with the NR from production
21. SQM create non-conformance report (QM01 - Create Quality Notification) and SQM sends official
complaint to the supplier which caused the disturbance.
22. SQM must ensure collection of all additional cost using the ADCOM tool. Before an ADCOM to be opened,
SQM must get the confirmation from supplier that he will assume the scrap cost. In case the supplier wants
to see the physical parts, a temporary zone will be defined and marked inside the quarantine area.The
parts will be labeled accordingly and they will exist only physical (once the parts are charged in ADCOM,
they are automatically scraped in SAP).In SAP the temporary zone occupied with parts charged in ADCOM
will not be available for SAP transactions (the zone will be bloked - LS06). Possible situations after costs
are issued in SAP: CLD closed debited ( all costs are invoiced to supplier and will be reimbursed) or CLN
closed not debited ( costs are invoiced, but will not be reimbursed ).
23. SQM must receive the approval from the supplier to send back the bad parts.
24. Finance must issue a Debit Note to the supplier for the cost of the materials ready to be shipped.
25. SQM must update the Incoming Inspection Test Plan for the new deliveries.
26. LO WHS will pack the goods for shipping.
27. SQM must ensure receipt of 8D report.
28. Finance must charge the additional costs to the supplier as directed by the SQM / Purchasing Dept.
Close official complaint.

2.2

Abbreviations

ME
PQE
STS
IQC
IQC tech
SQM
LO
LO WHS
STS flag
SAP
TO
S
NCR
Rcvg SLoc
SLoc
AT
QI

2.3

- Manufacturing Engineer
- Production Quality Engineer
- Ship to Stock
- Incoming Quality Control
- IQC Technician
- Supplier Quality Management
- Logistic Order
- Logistic Warehouse
- Ship to stock, no incoming inspection required
- ERP system
- Transfer Order (initiated via SAP_WM)
- Special stock
- Non conformity report
- Receiving storage location
- Storage location
-Analyze Technician
-Quality Inspector

Definitions

The process is presented in the above flowchart.

The involved functions in terms of decision and responsibilities are defined for each process step at Additional to be
observed paragraph and RASI CHART.
The sorting is performed for those material characteristics which were addressed by the quality alert. The
suspect and bad components are marked at storage bin level by CAP0600690 - "Blocked parts" and all the storage
locations are blocked in Raw Material Quarantine Area in order to prevent their usage. Responsible function to
block and mark is IQC technician.

For internal use only

Continental AG, 2015

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CAP0600698-09

Implementation

References

4.1

Mandatory

CAP0600698-F01 - Test Report Nonconformity

CAP0600698-F02 - Nonconformity Order Registry
CAP0600690-F01 - "Blocked parts"
CAP0600694 - Handling of internal non-conforming products

4.2

Other

CAP0600703 - "Faulty Materials in Unrestricted Stock"

Document History

Rev.
#

Change Description

Process
Owner

Date

01

New procedure for Brasov Plant (E-sign: 1094577)

Irina Gaceu

05.11.2010

02

Change process owner (E-sign: 1233613)

Irina Gaceu

01.04.2011

03

Changed process to add usage of SAP in daily work (E-sign: 1259425).

Irina Gaceu

28.04.2011

04

Modify RASI chart with only one responsible per action, adding SAP
transactions at step 6 from point 1.3 (E-sign: 1463990).

Irina Gaceu

07.11.2011

05

New template; Remove form CAP0600698-F01, add usage of Q-Com tool

(E-sign ID: 2224039).

Irina Gaceu

18.03.2013

06

Add blocking of the suspected components on the shelves

(E-sign ID: 2488080).

Irina Gaceu

08.08.2013

07

New transaction numbers added; new process owner (E-sign ID: 2967029)

Rainer
Kehnscherper

26.03.2014

08

IQT makes the Quality Notification and links the Nonconformity Report
from production with the claim. Quality Inspectors and Analyze
Technicians are introduced and their responsibilities are defined. New
forms added, CAP0600698-F01 - Test Report Nonconformity and
CAP0600698-F02 - Nonconformity Order Registry (E-sign ID :3750296)
Add information about the storage of the scraped parts in quarantine area
(E-sign ID: 3770142).

Hans-Guenther
Kein

20.03.2015

Hans-Guenther
Kein

27.03.2015

09

Responsible persons

6.1

Process Team

(dd.mm.yyyy)

The members of the Process Team have reviewed the procedure and their feedback has been considered. The
Process Owner keeps records about the Review.
Name
Department
Site
Cristian Lupsiasca

SQM

Brasov

Hilmar Burg

Logistics

Brasov

Manuela Aghiana

Finance

Brasov

Rainer Kehnscherper

Plant Manager

Brasov

Adrian Cotarlea

Production

Brasov

Bogdan Pruteanu

Manufacturing Engineering

Brasov

Joerg Beisheim

Production

Brasov

For internal use only

Continental AG, 2015

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