CAP0600690-07

Procedure: Inspection of parts coming from the vendor

Maturity
draft
released

Creator
Mariana Solomon
SQM
Date: 27.03.2015
E-sign ID: 3770099

Process Owner
Hans-Guenther Kein
Quality
Date: 27.03.2015
E-sign ID: 3770099

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

Objective
Subject: Describe how to perform the incoming inspection for the parts delivered by the vendor.
Goal: This procedure is applicable for Continental Powertrain Brasov Plant.

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: Inspection of parts coming from the vendor ............................................................................................... 1
1
Process Flow ........................................................................................................................................................ 2
1.1
Inspection of parts coming from the vendor process .................................................................................... 2
2
Additional to be observed ..................................................................................................................................... 5
2.1
Additional explanations ................................................................................................................................. 6
2.2
Ship-to-stock conditions ................................................................................................................................ 7
2.3
Abbreviations ................................................................................................................................................ 7
3
Implementation ..................................................................................................................................................... 8
4
References............................................................................................................................................................ 8
4.1
Mandatory ..................................................................................................................................................... 8
4.2
Other ............................................................................................................................................................. 8
5
Document History ................................................................................................................................................. 8
6
Responsible persons ............................................................................................................................................ 8
6.1
Process Team ............................................................................................................................................... 8

For internal use only

Continental AG, 2015

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Process Flow

1.1

Inspection of parts coming from the vendor process

Inspection lot in storage bin
quality stock ( Q )
1. Issue TO to request for one
minimum storage bin to IQC
2. Transport the minimum storage bin
to IQC
3. Confirm the received materials
4. Print out the inspection plan for the
concerned inspection lot

no

5. PPAP Approved?
yes

6. Material cannot be used in

production and must be returned
to the supplier

7. Pick up and Inspect the samples

CAP0600698 follow up from

step 14

8. Record characteristic results for the

concerned inspection lot

9. Is the lot accepted ?

only if financial
relevant !

no

yes
1

yes

10. Any
disabled parts due to inspection
method ?
no

11. Record usage decision for the

concerned lot ( AS )
14. Record usage decision for the
concerned lot ( A )
12. Transport the disabled parts to
SCRAP area
15. Issue TO for the storage bins to
unrestricted stock
13. Issue TO for the storage bins to
unrestricted stock

16. Transfer the storage bins

to unrestricted stock

Concerned inspection lot in

unrestricted stock

For internal use only

Continental AG, 2015

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17. Inform by email the concerned

departments on the incident

18. Issue Quality

Notification (II)

Yes

19. Sort requested ?

No

24. Issue TO for all storage bins

from quality stock to IQC

20. Issue TO for the concerned lot,

from all storage bins from WHS to IQC

25. Transfer materials from all

storage bins in IQC

21. Transfer materials from all

storage bins in IQC

26. Record usage decision for the

concerned lot

22. Record usage decision for the

concerned lot

CAP0600698 follow up from

step 11

23. Transfer the storage bins from IQC

to SQM quarantine area

CAP0600698 follow up from

step 20

Overwiev
No.

Roles / Organizational Units

Input

Activities

Output

Materials blocked in
quality stock (Q)

Issue Transfer Order in

SAP to request for one
minimum storage bin

Parts requested in
IQC for inspection

Parts requested in IQC

for inspection

Parts transferred in
IQC

Parts transferred in IQC

Transport physical the

requested storage bin to
IQC
Confirm the received
materials

For internal use only

Continental AG, 2015

Applicable
Documents

Logistics
Warehouse

Logistics
Disposition

Financial

IQC Technician

Supplier

SQM

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

Parts physically in
IQC

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No.

Input

Activities

Output

Parts physically in IQC

for inspection

Inspection plan
prepared for
inspection

Materials wait for

incoming inspection

Print out the inspection

plan for the concerned
inspection lot
PPAP Approved?

Roles / Organizational Units

Materials cannot be used in

production

Materials must not

be released for
production

Inspection plan prepared

for inspection and Pick up
the samples
Record characteristic
results for the concerned
inspection lot
Is the lot accepted (Y/N)?

Inspected parts

PPAP Approved

Inspected parts

Decision on the
inspection parts

10

Inspect the
materials or ship
back to supplier

PPAP Not Approved

Decision on the
inspection parts
Lot accepted or
rejected

Lot accepted

Any disabled parts due to

inspection method? (Y/N)

Parts disabled or
not

Parts with label

according to the correct
quantity

Record usage decision for

the concerned lot ( AS)

Decision taken for

the good parts

11

12

Decision taken for the

good parts

Transport the disabled

parts to SCRAP area
accompanied by Scrap
Approval form signed

Disabled parts
scraped

13

Decision taken for the

good parts

Accepted lot's
transferred in WHS

14

15

Decision taken for the

good parts

Issue TO for the storage

bins to unrestricted stock
Record usage decision for
the concerned lot (A )
Issue TO for the storage
bins to unrestricted stock

Accepted lots transferred

in WHS

Lot rejected

16

17

18

19

No parts disabled after

the inspection

All the implicated

persons informed about
the incident

Quality Notification
received from IQC

For internal use only

Continental AG, 2015

Applicable
Documents

Logistics
Warehouse

Logistics
Disposition

Financial

IQC Technician

Supplier

SQM

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

Transfer the materials from

storage bins to unrestricted
stock
Inform by email the
concerned departments on
the incident
Issue Quality notification

Create NR and sent it to

the supplier

CAP06007
14-F01
Scrap
approval
request

Decision taken for

the good parts
Accepted lots
transferred in WHS
Concerned
inspection lot in
unrestricted stock
All the implicated
persons informed
about the incident
Issue Quality
Notification and
inform the SQM
Official complain to
the supplier

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No.

Input

Activities

Output

Decision about the

affcted lot

Sort requested (Y/N)?

Decide for sorting

of the parts

Issue TO for the storage

bins from WHS to
Quarantine area
Transfer materials from all
storage bins in quality stock
to Quarantine
Inform the supplier and
receive approval to sent the
parts back or scrap them
Request supplier approval
for sorting

TO issued for the

storage bins

Roles / Organizational Units

21

In case the sorting is not

necessary

22

IO issued for the transfer

of the parts to
Quarantine

23

Parts in Quarantine area

24

In case the sorting is

necessary

25

Parts sorting

Parts in IQC area

Applicable
Documents

Logistics
Warehouse

20

26

Logistics
Disposition

Financial

IQC Technician

Supplier

SQM

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

Transfer materials from all

lot storage bins in quality
stock to IQC
Record usage decision for
the concerned lot

Parts in Quarantine
area
Decision about the
affected lot
Approval from the
supplier
Parts in IQC area

All locations
blocked prepared
for sorting

Additional to be observed
Explanations about the incoming inspection process:
1. To start the inspection a Transfer Order must be issued for one minimum storage bin from WHS to IQC
(LT10 Create Transfer Order from List movement type 971 - GR into Quality Stock).
2. The storage bin is physically transferred to IQC.
3. IQC confirms the received materials (LT11 Confirm Transfer Order Item) using the transfer order number
from point 1.
4. IQC must print the inspection plan from the SAP system for the concerned material (QA03 - Display
inspection lot).
5. IQC technician must check the status of the component/supplier Release status (PPAP approved).
6. If PPAP is not approved IQC technician must inform LO to return the material to the supplier.
7. If PPAP is approved IQC tech inspects physically the parts as per the Inspection Plan defined by the
responsible SQM.
8. IQC technician records the results for the concerned inspection lot (QE01 - Record characteristic results).
9. IQC technician must take a decision to accept or reject the inspected lot.
10. If the lot is acceptable after inspection there could be disable parts.
11. In case of disable parts after inspection IQC must record the decision for the concerned lot (QA11
Record Usage Decision code AS - accepted with corrections).
12. The disable parts are transferred to the scrap area by the IQC together with Scrap Approval form which
has to be signed by all relevant persons according CAP0600714- Material scrap management.

For internal use only

Continental AG, 2015

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13. IQC issues TO for the storage bins to unrestricted stock (LU04 Selection of Posting Change Notices).
14. In case there are no disable parts IQC technician must take the decision to accept the lot (QA11 Record
Usage Decision code "A" - accepted).
15. IQC issues TO for the storage bins to unrestricted stock (LU04 Selection of Posting Change Notices).
16. Logistic WHS transfers the storage bins to the shelves in unrestricted stock.
17. In case the lot is not acceptable the IQC technician is responsible to inform by email all the involved
persons about the issue.
18. IQC is responsible to issue a Quality notification (QM01 Create Quality Notification type II -Incoming
Inspection).
19. SQM must create the NR and sent official complain to the supplier.
20. In case sorting is needed the decision must be taken by SQM, Logistic and supplier. The sorting will be
done according with the general sorting instruction CI-715-a.
21. 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
22. Logistic WHS transfers the materials from all requested locations to Quarantine area.
23. SQM it is responsible to inform the supplier about the decision for the parts and ask for approval to sent the
parts back or scrap them. In case of accepting the scrap, SQM must ensure collection of all additional cost
using the ADCOM tool. 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).
24. In case of sorting it is necasary SQM must request from supplier the approval to start the sorting.
25. 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 971 - GR into Quality Stock).
26. Record usage decision for the concerned lot
Follow the steps from the procedure CAP0600698 Faulty Material in Unrestricted Stock.
Metrics and performance indicators:
- Monthly ppm level
- Monthly cycle time
- Monthly number of incidents

2.1

Additional explanations

Each delivery of one material-vendor represents one inspection lot.

The inspection of each lot is based on the inspection plan.
The inspection plan is generated using the SAP_QM module. The responsible function to generate and
update the inspection plan is the SQM.
The inspection plan is created for a material-vendor and it is dynamically changed for each delivered lot
from the concerned material-vendor.
The inspection plan is made taking into consideration special characteristic from individual drawings. Also
the responsible SQM can define additional characteristics to inspect, taking into account mountability with other
parts in the production process or other visual issues that may occur. The inspected parts are taken randomly from
different boxes.
The inspection plan contains the following elements:
Inspection lot number (automatically generated by SAP)
Reference information on : material number, revision, material description, vendor number, vendor
name
Drawing no and version
Reference to the inspection method
Inspection characteristics for the current lot, including samples size for each characteristic
Equipment needed to perform the inspection

For internal use only

Continental AG, 2015

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The results and usage decision for the inspection of vendor parts are documented in SAP_QM and can be
used for further evaluations (e.g. supplier assessment).
The deliveries not automatically accepted into free stock, but evaluated by the IQC tech, must be recorded
also in the form CAP0600690-F02 Quality Inspection Record Sheet.
If for a material-vendor no inspection plan is defined and assigned in SAP_QM, but the quality inspection is
activated in SAP (MM01) and a delivery is received and booked in SAP_WM, then:
- no test instruction can be printed;
- the inspection lot assigned to that delivery is blocked in SAP and cannot be used in production.
Handling of the inspection lot is possible only when an inspection plan is defined and assigned in
SAP_QM.
If an inspection lot is (partial) rejected, the bad components are marked at storage bin level by
CAP0600690-F01 Blocked Parts and the storage bins are blocked in SAP, in order to prevent their usage.
Responsible function to block is IQC technician. Responsible function to mark is IQC technician.

2.2

Ship-to-stock conditions

The conditions to be fulfilled by a part (material - supplier) in order to be proposed as STS are:
1. At least 1 delivery/lot inspected and accepted by IQC responsible;
2. At least 3 deliveries/lots inspected and accepted by IQC responsible after a complaint;
3. The supplier has a valid certification for ISO /TS 16949:2009;
4. The component and the supplier are released (CASA complete);
5. The component is bought from another Continental Plant (intercompany business).
Each delivery that will reach Continental will be inspected by LO WHS and by IQC. All un-released
suppliers represent a risk to Continental production and hence all parts delivered by un-released suppliers will not
be put into ship-to-stock. The usage in production is prohibited for such parts and if any parts coming from an
unreleased supplier arrive to Continental they should be blocked and sent back.
All un-released materials (PPAP not approved) delivered from released suppliers must not be used in
production. They should be blocked and sent back.
At least 1 delivery/lot will be inspected after a revision change of the part number.
At the first failure detected by IQC/production, the STS flag is automatically removed for the concerned
delivery/lot. The next deliveries/lots are inspected also by IQC responsible till 3 consecutive released deliveries /
lots are recorded. Then, the next deliveries/lots are inspected only by Logistic Department/ Warehouse responsible.
The cycle is repeated.
All new materials with status released (PPAP approved) delivered from released supplier will be inspected
by IQC at the first delivery, and if no defects have been seen at this inspection, all further shipments will be
considered ship-to-stock.
The SQM responsible decides about the parts that fulfill the above defined STS conditions.
Records are archived in accordance to CAP1000678 - Management of obsolete documents.
Until SAP implementation all records are kept in paper form. After SAP implementation all documents are stored in
the system.

2.3

Abbreviations

IQC
IQC tech
PPAP
SQM
LO
LO WHS
STS flag
SAP
SAP_QM
SAP_WM
Quality Notification (II)
TO
A
AS

For internal use only

Continental AG, 2015

- Incoming Quality Control

- IQC Technician
- Production Part Approval Process
- Supplier Quality Management
- Logistic Order
- Logistic Warehouse
- Ship to stock, no incoming inspection required
- ERP system
- SAP module for quality management
- SAP module for warehouse management
- Quality Notification (Incoming Inspection)
- Transfer Order (initiated via SAP_WM)
- Usage decision code for an accepted lot
- Usage decision code for an accepted with correction lot

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R
PR
S

- Usage decision code for a rejected lot

- Usage decision code for a partial rejected lot
- Special stock

Implementation

References

4.1

Mandatory
CAP0600690-F01 - Blocked Parts
CAP0600690-F02 - Quality Inspection Record Sheet

4.2

Other
CAP0600698 - Faulty Material in Production Area
CAP0600714 - Material scrap management

Document History

Rev.
#

Change Description

Process
Owner

Date

01

New procedure for Brasov Plant (E-sign ID: 1094568).

Ince Oezer

05.11.2010

02

Archiving principles introduced (E-sign ID: 1233604).

Irina Gaceu

01.04.2011

03

Changed process to add usage of SAP (E-sign ID: 1259416).

Irina Gaceu

28.04.2011

04

Add info on how to create Inspection plan; change the procedure

template (E-sign ID: 1640431).

Irina Gaceu

30.03.2012

05

Add reference CAP0600714 - Material scrap management, Update

CAP0600690-F02Quality Inspection Record Sheet, remove
CAP0600690-F05-8D Template supplier (E-sign ID: 2224039).

Irina Gaceu

18.03.2013

06

IQT will make the Quality Notification and will link the Nonconformity
Report from production with the claim. (E-sign ID: 3750379).

Hans-Guenther
Kein

20.03.2015

07

Add information about the storage of the scraped parts in quarantine

area (E-sign ID: 3770099).

Hans-Guenther
Kein

27.03.2015

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

Hans-Guenther Kein

Quality

Brasov

Manuela Aghiana

Finance

Brasov

For internal use only

Continental AG, 2015

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