Vw-Qms Supplier Agreement

Quality management agreements
between the Volkswagen Group

and its Suppliers
September 1998
1
Foreword
This is the 3rd edition of the Formel Q-konkret manual

Formel Q-konkret, a living publication adapted to changing requirements,
is an essential aid for assuring the quality of purchased parts. It is subject
to constant updating and continuous improvement.
As before, the contents are based on the current international standards
for quality management,
DIN EN ISO 9000 ff, the VDA guidelines and the requirements of the
VOLKSWAGEN Group.
At VOLKSWAGEN the coming years will be characterised by an even
greater variety of models, coupled with a further reduction in development
cycles. Modular construction and the platform strategy will be further
pursued. Thus the supplier will be involved over the entire lifespan of the
product, from product idea to recycling. Future success depends entirely
on the very close co-operation and intensive communication between
VOLKSWAGEN and its suppliers.
An attractive model range of the highest quality, with excellent Service and
at competitive prices, leads to customer satisfaction, and is thus an es-
sential element of the corporate success of VOLKSWAGEN and of its
suppliers.
Since 1st July 1993, these quality management agreements have been
binding in all contracts of VOLKSWAGEN Group Procurement. The
supplier’s acceptance of an order is deemed to signal agreement with the
present contents. In this way the Formel Q-konkret manual supplements
the existing “Terms and conditions of purchase for production material”.
Herwart Kreiner F. J. Garcia Sanz
Wolfsburg, September 1998
1
Quality management agreements
purchased parts
Table of contents
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
A. Purpose . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
B . Sphere of application of Formel Q-konkret QM
agreements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
C . Explanation of terms and abbreviations . . . . . . . . . . . . . . . 6
1 Supplier qualification and continuos improvement . . . . . 14

1.1 Quality management – Systems requirements . . . . . . . . . . . . 14
1.2 External process and product audit . . . . . . . . . . . . . . . . . . . . . . 14
1.3 Assessment of quality capability . . . . . . . . . . . . . . . . . . . . . . . . 15
1.4 Supplier assessment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
1.5 “Formel Q” Supplier award . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
2 Quality planning at suppliers . . . . . . . . . . . . . . . . . . . . . . . . . 18

2.1 Preparation of a quality business plan . . . . . . . . . . . . . . . . . . . . 18
2.2 Nomination of quality officers . . . . . . . . . . . . . . . . . . . . . . . . . . 19
2.3 Nomination of an order overseer . . . . . . . . . . . . . . . . . . . . . . . . 19
2.4 Scheduling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
2.5 Ascertainment and prompt implementation of customer
wishes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
2.6 Feasibility studies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
2.7 Zero Defects strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
2.8 FMEA for products and processes . . . . . . . . . . . . . . . . . . . . . . 22
2.9 Process flow diagrams . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
2.10 Control plan preparation for agreed important characteristics 23
2.11 Test equipment planning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
2.12 Operational equipment planning . . . . . . . . . . . . . . . . . . . . . . . . 24
2.13 Planning of preventive maintenance . . . . . . . . . . . . . . . . . . . . . 24
2.14 Packaging planning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
2.15 Personnel qualification . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
2.16 Environmental protection and recycling . . . . . . . . . . . . . . . . . . 26
2
3 Activities prior to series start-up . . . . . . . . . . . . . . . . . . . . . . 28
3.1 Activities in the VOLKSWAGEN Group . . . . . . . . . . . . . . . . . . . 28
3.1.1 Simultaneous engineering (SE) . . . . . . . . . . . . . . . . . . . . . . . . . 28
3.1.2 Co-operation and experience-sharing . . . . . . . . . . . . . . . . . . . . 29
3.1.3 Objectives catalogue, technical specifications list
(Zielkatalog, Lastenheft) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
3.1.4 Definition of important characteristics . . . . . . . . . . . . . . . . . . . 30
3.1.5 Matching/installation trials in the pre-series phase . . . . . . . . . 31
3.2 Activities at suppliers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
3.2.1 Qualification programme for new parts . . . . . . . . . . . . . . . . . . 31
3.2.2 Dimensional stability forecast . . . . . . . . . . . . . . . . . . . . . . . . . . 32
3.2.3 Process capability forecast . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
3.2.4 First samples and approval conditions . . . . . . . . . . . . . . . . . . . 35
3.2.5 Pre-production run (2 days’ production) . . . . . . . . . . . . . . . . . . 38
3.2.6 Quality management handbook . . . . . . . . . . . . . . . . . . . . . . . . . 40
4 Quality measures in series production . . . . . . . . . . . . . . . . . 41

4.1 Ascertainment of ongoing process capability . . . . . . . . . . . . . 41
4.2 Control of the manufacturing process . . . . . . . . . . . . . . . . . . . . 41
4.3 Internal system audit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
4.4 Conduct of internal process audits . . . . . . . . . . . . . . . . . . . . . . 42
4.5 Conduct of internal product audits . . . . . . . . . . . . . . . . . . . . . . 43
4.6 Measuring and test equipment for important characteristics 43
4.7 Calibration of the measuring/test equipment . . . . . . . . . . . . . . 44
4.8 Conduct and record of reliability tests . . . . . . . . . . . . . . . . . . . . 45
4.9 Quality data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
4.10 Parts identification in the manufacturing process . . . . . . . . . . 47
4.11 Application for deviation approval . . . . . . . . . . . . . . . . . . . . . . . 47
4.12 Analysis of returns (0 km) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
4.13 Field observation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
4.14 Product safety and product liability . . . . . . . . . . . . . . . . . . . . . . 49
4.15 Qualification of sub-suppliers . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
4.16 Disruption case limitation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
4.17 Ascertainment of product-related defect costs . . . . . . . . . . . . 52
3
Introduction Purpose
A. Purpose
Nowadays more than half of a vehicle is made up

of parts which the VOLKSWAGEN Group pur-
chases from its suppliers.
To a large extent these parts are of decisive
significance both for vehicle functions and for
customer-oriented quality appeal – and thus for
customer satisfaction.
In this context, and on the basis of a traditionally
high standard of quality, the VOLKSWAGEN
Group has developed a quality strategy which is
an integral component of a comprehensive, con-
temporary purchasing strategy.
Up to now our relations with suppliers, and the
internal allocation of tasks relating to the receipt,
control and installation of purchased parts within
the VOLKSWAGEN Group, have been predomi-
nantly concerned with the identification and
elimination of defects.
In future the co-operation between the
VOLKSWAGEN Group and its suppliers must
lead increasingly to a situation in which, consi-
derably more consistently than before, the
design and process-related causes of possible
defects are obviated in the early product
development stages. To this end it is imperative
that preventive quality planning activities be furt-
her intensified on a joint basis.
The present quality management agreement
“Formel Q-konkret”, which originally emerged
from a collaboration with a small group of
suppliers, and which has since then been
constantly improved with the incorporation of
ideas from the supplier industry, is divided into
four main sections:
1. Supplier qualification and continuous
improvement,
2. Quality planning at suppliers,
3. Pre-series activities in the
VOLKSWAGEN Group and at its
suppliers, and
4. In-series quality measures.
4
Introduction Purpose
Sphere of application
The intensification of quality planning measures

and increased activities in the pre-series phase,
especially the consistent implementation of
simultaneous engineering, necessitates a mar-
ked shift of the chief emphasis towards the prin-
ciples of “defect prevention, not defect elimi-
nation“ and “zero defects”.
“Formel Q-konkret” is thus not a fixed body of
regulations. It is, rather, a living publication con-
stantly adapted to changing requirements, an es-
sential aid for assuring the quality of purchased
parts.
B . Sphere of application of Formel Q-konkret

QM agreements
The present “Formel Q-konkret” quality

management manual serves to define the
requirements and procedures for quality
assurance measures. It describes the quality
management agreement between the
VOLKSWAGEN Group (hereinafter also referred
to as “the client(s)”) and its suppliers, and sets
out the procedures at the suppliers and in the
VOLKSWAGEN Group which are necessary for
assuring the quality of purchased parts.
The fundamental responsibility for the quality
of purchased parts supplied lies with the
supplier. This applies to the entire scope of
delivery. At the same time the supplier is also
responsible for the existence of appropriate
Q-management systems and for the control and
follow-up of relevant Q-performance data of sub-
suppliers and service providers. Evidence in
support of this must be available to the client at
any time.
The quality planning procedures and methods set
out in “Formel Q-konkret”, the activities prior to
series start-up and the quality assurance mea-
sures during series production are an integral
component of the supply agreement between
the VOLKSWAGEN Group and its suppliers,
supplementing the Terms and conditions of
purchase for production material.
5
Introduction Sphere of application
Explanation of terms and
abbreviations
As an organisational and systematic aid to the

quality assurance of purchased parts, the present
quality management agreements are based on
the current standards and on the VDA guidelines.
However, since a contemporary quality standard
for the VOLKSWAGEN Group and its suppliers
cannot be based solely on existing norms and
guidelines, the various current and future-orien-
ted quality requirements must be implemented
in the light of a clear commitment to customer
satisfaction.
The VOLKSWAGEN Group expects from its
suppliers a consistent and responsible imple-
mentation of all procedures and methods des-
cribed in Formel Q-konkret. Furthermore it
expects that the supplier should be the best in
class, and constantly at the forefront of technical
developments. Suppliers’ adherence to these
quality management agreements is monitored by
means of VOLKSWAGEN field service audits.
Furthermore “Formel Q-konkret” also serves as
a guideline for the requirements made by
suppliers of all sub-suppliers.
C. Explanation of terms and abbreviations

Clients Clients are the various production plants of the
VOLKSWAGEN Group, including subsidiaries,
represented by the appropriate contact person in
each case.
Attributive assessment Good – bad (yes – no, go – no go) decisions
Design sample approval The design sample approval is issued by the
development department responsible and
entered in the EDP systems. Precondition for
this is an approval by the specialist department
after examination of samples manufactured with
series tooling or under comparable conditions,
taking account of the necessary laboratory
examinations.
The design sample approval is valid only for as
long as none of the properties evaluated in the
approval examinations (e. g. dimensions,
6
Introduction Explanation of terms and
abbreviations
material, manufacturer’s markings, manufactu-

ring process, manufacturing location, machines
etc.) is altered.
The manufacturer is responsible for adherence to
the condition of the sample as approved.
CAD Computer Aided Design
CAM Computer Aided Manufacturing
COP Carry-over part
Cp Process Capability Index
This describes the variation and range of a
manufacturing process.
C pk Process Capability (corrected);
Process capability index takes account not only
of the variation and range of the manufacturing
process but also the location of the frequency
distribution mean in relation to the specification
limits. If theCpk value is less than the Cp value, the
mean of the distribution range lies outside of the
tolerance middle. The process is not centred.
C mk Machine Capability (corrected);
Machine capability index taking account of the
location.
CSC Corporate Sourcing Committee;
Group body responsible for decisions relating to
procurement types world-wide.
Cubing Mock-up of the bodyshell with all fastening
elements.
This enables simulation of the completion of the
body with butting components under conditions
similar to assembly.
D-Characteristic Characteristic of a product requiring
documentation.
D-Part Component with characteristic requiring
documentation.
Design of Experiments DoE (Classic, Taguchi or Shainin); comprises
(DoE) various different methods for systematic product
and process planning and improvement, using
technical experimentation to establish the effects
of influencing factors or their range and distribu-
7
abbreviations
tion. These general experimental methods are of

particular significance in two areas: firstly, the
solution of chronic quality problems in produc-
tion, and secondly, for robustness and para-
meter design in the product development and
production panning process. The purpose is to
identify the most important influencing variables
and their optimum values, irrespective of
whether these relate to materials, product or
process parameters, raw materials or purchased
components, environmental factors or measuring
processes.
DGQ German Quality Association
DIN German Industry Standard
DIN EN ISO 9000 ff An internationally agreed and EU-wide binding
regulatory instrument for quality management
and quality assurance systems both within and
outside of the automotive industry. The most
recently published versions apply.
DKM Data Control Model
This is a full-scale model reflecting the design
drawings.
It serves the assessment of the design quality
from the aesthetic point of view (quality of
appeal). It has the nature of a “standard meter”.
This is precisely how the finished vehicle must
look.
Electronic Data EDI is the exchange of structured business data
Interchange between the information systems of external
partners on the basis of information processing
standards (VDA, ODETTE, EDIFACT, ANSI) and
communication standards (OFTP = ODETTE file
transfer log for the use of the European automo-
tive industry). EDI is indispensable for lean,
efficient business processes with our production
material suppliers, and thus represents an obliga-
tory prerequisite for this co-operation. EDI is an
essential condition for just-in-time supply of the
factories of the VOLKSWAGEN Group; further
requirements also apply in this connection.
EDV Electronic Data Processing
EN European Standard
8
abbreviations
Error “tree” analysis One of many methods for establishing the

possible sources of system disruptions. In this
method a construct (“tree”) is set up, depicting
possible disruptions which are broken down into
their basic components (“branches”) in order to
establish which factors of causation can bring
about the “main event”.
FMEA Failure Mode and Effect Analysis
Analysis of potential disruption effects and their
consequences.
Forward Sourcing (FS) Global-based procurement process for new
projects and part-projects, with the objective of
fulfilling customer requirements in terms of
quality and service, at the same time
underbidding world market prices.
Global Sourcing (GS) Continuous global-based procurement process
for improving the quality, service and price of
series parts and carry-over parts for new models/
projects.
Manufacturer code Vehicle parts and/or function groups must be
marked with a “trademark” in accordance with
VW 105 14 and the country of manufacture in
accordance with VW 105 50, and with a perma-
nent and easily legible three-figure manufacturer
code. (For term see DIN 1450.)
Internal Audits Regular self-auditing of the supplier at his
manufacturing facilities.
ISO International Standards Organization
KVP (CIP) Continuous Improvement Process
Dimension adherence Quotient (in %) of the number of test values
indicator (MI) within the tolerance and the total number of all
test characteristics multiplied by the number of
samples.
“Meisterbock” A master jig constructed of bolted-together alu-
minium profiles which gives constant reference
points throughout the lifespan of the vehicle.
These reference points are defined in the design
drawing. All assemblies making up the whole
vehicle are aligned to these reference points.
Milestones Points of decision in the course of a project.
9
abbreviations
Module supplier Supplier of an assembly which is put together

from several individual parts, making a unit
(module/sub-assembly) on the supplier’s
premises.
Nil series The aim and purpose of a nil series is to test, in
good time prior to the launch of a new product,
the fit and dimensional adherence of individual
parts and assemblies, and the function of tools,
test equipment and appliances under production
conditions. It thus encompasses the entire
production procedure as forerunner of series
production and consists 100 % of parts manu-
factured using series production tooling.
Zero-km defects Defects detected on delivery or installation of the
parts on the assembly line.
ppm Parts per million;
1 ppm = 1 x 10-6 = 1 x 10-4 %;
thus 10 000 ppm = 1 %.
The ppm philosophy in the co-operation between
supplier and manufacturer is directed at achie-
ving the “zero defects” objective.
Production Readiness Process for securing the earliest possible
implementation of the global sourcing (series
parts) decision taken in the CSC process taking
account of the requirements as notified by
Quality Assurance, R+D and Logistics.
Program Readiness Process for securing the earliest possible imple-
mentation of the forward sourcing (new projects/
parts) decision taken in the CSC process, taking
account of the requirements as notified by
Quality Assurance, R+D and Logistics.
Process capability Quotient (in %) of the number of Cp and Cpk
indicator (PI) values larger than or the same as the minimum
value and the number of critical characteristics.
PVS The production trial series facilitates a final tuning
of the assembly of the individual parts. Assembly
must take place in processes which operate
under production conditions with parts manu-
factured using production tooling.
QAS Quality Audit Survey (Syndicate market research
study)
10
abbreviations
QFD Quality Function Deployment (“House of

Quality”) Customer-oriented product develop-
ment.
The object of QFD is to develop the quality of a
new product better than the competition for the
benefit of the customer. To this end, the ascer-
tained customer wishes must be translated into
1. measurable product characteristics, and these
into
2. requirements placed on the necessary parts,
3. production resources and
4. production (incl. assembly).
The results of systematic and team-oriented QFD
analyses frequently permit a more effective
priority-oriented selection and targeted
application of Q-methods.
Qualified Auditor Authorised auditor meeting the qualification
criteria of DIN ISO 10011, Part 2. Examples of
this are the necessary expert knowledge,
together with certification as DGQ (German
Quality Association) Auditor or at least 2 years’
experience in quality management; analytic
capability and the readiness to maintain the level
of expertise gained.
Recourse Charging of the supplier who has rendered him-
self liable to recourse (e.g. by supplying defec-
tive products or such as were rejected in the
field) with the costs arising from the defect for
which he is responsible.
SET Simultaneous Engineering Team
SOP Start of Production
SPC (SPR) Statistical Process Control (statistische Prozeß-
regelung);
Method of process support designed to achieve
uniformity of finished parts (i. e. centring on the
mean value), e. g. through constant monitoring
and control of the process when statistically-
determined intervention limits are reached.
Permits determination of whether processes
under statistical control are secure or not, and
trend control.
Styling freeze Conclusion of the concept phase of a develop-
ment project. At this time a harmonised data
11
abbreviations
control model is in existence. After this has been

determined, normally no further changes are
possible.
Taguchi Method A DOE method (cf. “DOE”) of statistical trials
planning in which, using a small number of trials,
the most important process variables and their
interaction, especially in their various combina-
tions, can be recognised and optimised. The
objective here is robust products and processes
where the effect on the quality-determining
characteristics remains minimal, despite the
presence of external disruptive factors.
TA Technical instructions
TE Technical Development (Division)
TL Regulation Technical supply conditions regulation
TLD List List of all characteristics requiring
documentation.
TPM Total Productive Maintenance
A management strategy for the manufacturing
and process industry. Its aim is to maximise the
added value of all (manufacturing) processes,
concentrating primarily on the equipment and its
allocated personnel, and involving every
employee in the company.
TQM Total Quality Management
A management instrument for the attainment of
a quality approach in all areas of the company.
Quality in the TQM sense is not just important
and measurable in the finished products, but in
every step of the work process, including ser-
vices, whether these be provided for external or
for internal customers.
VDA Verband der Automobilindustrie e.V.
(Association of German Motor Manufacturers)
Extended workbench A manufacturing plant additional to the supplier’s
original plant in which individual components or
sub-assemblies are manufactured for and on be-
half of the supplier.
VW Standard Technical standards in the VOLKSWAGEN Group
(e. g. VW 105 40 Manufacturer code for vehicle
parts)
12
abbreviations
Important Critical and function-relevant product, process

characteristics and test characteristics must be established
using design FMEA and in cross-divisional
teams. Further important characteristics may be
revealed, e. g. by the subsequent process
FMEA. In addition to legal, safety-relevant,
design and process-oriented aspects, they can
also contain substantial customer-oriented
aspects. An essential criterion for selection here
is measurability (or the ability to provide attribu-
tion), and the existence of suitable test equip-
ment in the manufacturing process.
Objectives Catalogue Description of the objectives of a project and the
(ZK) consequences arising therefrom. In terms of
technology, quality, costs and scheduling, these
are listed in the objectives catalogue as pres-
cribed conditions.
13
1. Supplier Qualification and
Continuous Improvement
1.1 Quality management

system requirements
Conduct of quality The VOLKSWAGEN Group expects a quality

management system in accordance with the
audits internationally valid standards and the supple-
mentary industry-specific standards of the auto-
motive industry (VDA) to be installed and prac-
tised at suppliers.
Proof of compliance with this requirement
must be furnished with the certificate in line
with VDA provisions 1) .
In certain cases it may be necessary for
VOLKSWAGEN Group auditors to re-examine
either individual elements of or the entire QM
system.
The supplier will be notified of this where
necessary.
1.2 External process and product audit
Conduct of process As a supplement to the QM system require-

ments (see 1.1 above), VOLKSWAGEN Group
audit/product audit Qualitätssicherung Lieferanten department con-
ducts process and product audits at the supp-
liers 2).
Using an industry-specific checklist of the VDA3),
processes and procedures are assessed which
are applied for product and process development
and to the manufacture of the parts in question.
The special customer-specific requirements of
the VOLKSWAGEN Group are additionally taken
account of in the context of this process auditing.
Normally the processes to be assessed are
already running under series conditions. The
results of process audits provide information on
the quality capability of these processes, and
1) cf. VDA Vol. 6

2) cf. Volkswagen brochure “Supplier Quality Capability
Assessment Guidelines”, VOLKSWAGEN AG
3) cf. VDA Vol. 6 Part 3 Process audit
14
point up possibilities for improvement. A forecast

of the process capability for agreed important
characteristics is required prior to series start-up.
For new processes a programme for the secu-
ring of process capability prior to series start-
up must be furnished (see section 3.2.3).
If at the time of auditing the series processes are
not yet installed, auditing will be on the basis of
the supplier’s product and process planning
activities.
Comparable series processes for similar series
parts of the supplier may also be scrutinised.
Important findings for the process are also
provided by the results of the product audit for
series products. This product audit is generally
conducted together with the process audit.
1.3 Assessment of quality capability
Assessment of quality The assessment of quality capability of suppliers

is based on the results of the QM system
capability certification on the one hand, and of the process
and product audit on the other. The results of
these audits affect the assessment of quality
capability.
The auditing result leads to a grading as follows1):
Grade Designation Measure

A Quality-capable Continuous improvement
B Conditionally quality-capable Supplier improvement
programme
C Not quality-capable Immediate measures
No further order
placements
1) cf. Volkswagen brochure ”Supplier Q – Capability”

assessment guidelines VOLKSWAGEN AG
15
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&HUWLILFDWLRQDQGDXGLWLQJ
Existence / application of a
QM system on basis of standards
QM system certificates DIN EN ISO 9001/9002
+
Existence / application / effectiveness of
QM system certificates VDA 6.1 (or comparable )
additional automotive-specific requirements
+ Application and effectiveness VDA process

Process audit requirements in relation to own products
Process / procedure suitability
(customer-specific, product-specific)
Fulfilment of all
Product audit important quality
characteristics
Basic requirements on the product
of the standard and of the
automotive industry
Practice-related additional requirements,

product creation/series production /service
Meeting of customer requirements
VDA-approved certifier Motor manufacturer / supplier
QM Manual procedure/work instructions Customer-specific product / process requirements

Application QM system Continuous improvement
1.4 Supplier assessment

Proof of compliance A supplier assessment is the basis for the For-
mel Q Award. It is undertaken by the client’s
Quality of products
specialist divisions. Each division has developed
and services, and assessment criteria corresponding to its require-
ments and expectations. On the basis of these
quality capability criteria an assessment is made which ensures
of processes that all relevant quality data are taken account of.
Because the criteria have been formulated as
quantifiable values, the assessment can be
readily followed in its entirety.
Measurement and assessment is of the quality
capability of the individual processes and the
quality of products and services of individual
manufacturing plants over a period of one year.
Each criterion is considered individually, and
assessments are reached by the individual
VOLKSWAGEN Group divisions in separate
processes. The resulting values have equal
weighting in the final assessment.
The lowest individual assessment in each case is
used to determine the supplier’s grading (“hurdle
principle”).
16
1.5 Formel Q supplier award
The supplier assessment forms the basis of the

supplier award, presented in recognition of
outstanding performance.
The award is made to the management and
workforce of a manufacturing plant which meets
the requirements and expectations of all client
factories. They are awarded the Formel-Q trophy,
and announcements to this effect are placed in
the media. The award is designed to provide
motivation for the continuous improvement of
products and services.
17
2. Quality planning at suppliers
Proof of compliance This section contains a list of the requirements

made of the supplier’s quality planning by the
Systematic quality
client. It is a requirement that all relevant activi-
planning for the ties are planned and documented, and can be
reconstructed in retrospect.
achievement of the
Achievement of the required quality necessitates
required quality comprehensive planning. Therefore the
VOLKSWAGEN Group expects its suppliers to
operate systematic quality planning as a key
element of the quality assurance system. This
includes the formulation of short, medium and
long-term objectives, together with a timetable
for their implementation (milestones), and the
nomination of all responsible staff members.
2.1 Preparation of a Quality business plan
Proof of compliance The Quality business plan serves to highlight the

strategic and operational quality objectives. The
Formulation of
key data of the objectives and results must be
corporate quality made available to the client’s purchased parts
organisations on request.
objectives
The business plan supports the introduction of
formal procedures for measuring the achieve-
ment of the quality targets set (technical
controlling).
The procedure here is two-way: Firstly, strategies
and operational targets are presented to the
operational divisions by corporate management;
then the relevant measures planning is carried
out by the operational divisions and passed back
to corporate management.
The outcome is the formulation of objectives
jointly by corporate management and the opera-
tional divisions – that is, the Quality business
plan, which must be updated at regular intervals.
18
2.2 Nomination of quality officers

Proof of compliance A prerequisite for productive co-operation bet-
ween client and suppliers is that each should
Organisation chart
nominate quality officers.
of Quality Assurance
These must be contact persons competent in all
and its integration quality matters, having clear responsibilities and
authority to act within the context of DIN EN ISO
in the company 9000 ff.
organisation chart The structure of Quality Assurance must be
formulated in writing in the form of an organi-
sation chart giving the names of the officers and
their deputies.
2.3 Nomination of an order overseer

Proof of compliance The VOLKSWAGEN Group expects the supplier
to have a specially designated person for each
Name of the order
order who is responsible for overseeing this
overseer order, and who is the contact person for the
product concerned. In the same way the
VOLKSWAGEN Group client will designate a
contact person responsible in each case.
The object is to ensure an efficient management
to schedule of each order by the supplier in co-
operation with the client.
The name, function and deputy of the supplier’s
order overseer must be communicated to the
client.
The order-overseeing contact person at the
supplier’s is also responsible for adherence to
deadlines.
2.4 Scheduling
Proof of compliance In order to meet the requirements of the market
for ever-shorter development times for new pro-
Preparation of a
ducts and projects, the use of a standard flow
schedule and/or plan taking in certain milestones is recommen-
ded, an example of which is given below.
project flow plan
19
-
Lastenheft
DKM
P-Freigabe
Bau Prototypen
B-Freigabe
Werkzeugerstellung
D-Freigabe
PVS
CSC - Entscheidung Vor-Check 2Tages-Produktion
O-Serie
SOP
Markteinführung
Suppliers’ scheduling must take account of the

applicable key project data in each case. It is
expected from the supplier that he will assist in a
„design“ sense in the continuous improvement
of these key data in the context of a simulta-
neous engineering process. As required,
suppliers will be involved in pre-development
prior to the final definition of the objectives
catalogue (ZK). In such cases each supplier is
expected to produce his own project flow plan,
to be constantly harmonised with the client’s
order overseer and adjusted where necessary.
2.5 Ascertainment and prompt

implementation of customer wishes
Proof of compliance The VOLKSWAGEN Group and its suppliers
jointly apply methodical procedures for transla-
Methodical procedure
ting the “voice of the customer” into technical
prescriptions and process designs. This proce-
dure must be represented and documented in a
suitable manner.
The methods to be applied (e. g. QFD) relate to
all characteristics which have to be optimised. At
the same time, those points which may signify a
competitive advantage are dealt with specifically.
This procedure also serves to move the quality
management approach into the design and deve-
lopment process, and also provides a basis for
determining important characteristics for process
control.
20
2.6 Feasibility studies

Proof of compliance The feasibility study is an investigation of the
manufacturability of products under series con-
Feasibility studies
ditions. It forms a basis for the procurement of
for new or modified tooling and systems.
products and Under the direction of the supplier, feasibility
studies must be conducted jointly with the rele-
processes vant divisions of the client in the VOLKSWAGEN
Group. Quality performance under series condi-
tions must be secured prior to start of production
(SOP) in agreement with the VOLKSWAGEN
Group by means of a pre-production run (2-day).
These studies and security runs are necessary
for all new products, for product modifications,
process and procedure modifications including
production relocation at the supplier’s and/or sub-
supplier’s, and changes to unit numbers.
Corrective action derived from the study (specifi-
cations or process modifications) must be imple-
mented either by the client in the VOLKSWAGEN
Group or by the supplier, depending on responsi-
bility.
Tools for feasibility studies include FMEAs, pro-
cess flow diagrams, process capability examina-
tions, design of experiments etc.
2.7 Zero-defect strategy

Proof of compliance The quality objective of
Consistent strategy zero defects
for the achievement applies to all components, assemblies and mo-
dules.
of zero defects
It is the task of the supplier in the context of
quality planning activities to undertake all neces-
sary measures for achieving this objective.
In the course of completing the qualification pro-
gramme for new parts (QPN), these measures
are discussed with the client’s Quality Assuran-
ce, Purchased Parts department. Any necessary
corrections and reconciliations are quantified and
agreed at this point.
21
2.8 FMEA for products and processes

Proof of compliance The failure mode and effect analysis (FMEA, see
VDA Vol. 4 Part 2) is an important instrument for
Product and process
defect prevention, and must be deployed. This
system FMEA applies to all phases of product creation and use
(design, production, packaging, transportation,
assembly, customer use, recycling/disposal).
FMEAs must be produced and/or supplemented
jointly by the order overseers for the develop-
ment and manufacture of new products, for new
manufacturing processes, for safety and problem
parts and for modifications to products and
processes.
Product system The product system FMEA is
FMEA: produced by the developer for
suppliers who are involved in
manufacturing only. It must be
ready prior to the conclusion of
development.
For design interfaces, FMEAs
should be conducted jointly by
the parties concerned.
Process system The process system FMEA is
FMEA: dependent on the definition of
the important characteristics. It
should be preceded by a pro-
duct system FMEA, and must
be to hand prior to the acqui-
sition of tools and equipment.
2.9 Process flow diagrams
Proof of compliance Process flow diagrams are descriptions of the

course of production, and are supplemented by
Process flow
brief descriptions of the individual processes.
diagrams
Process flow diagrams point up factors of
influence and are thus important aids in quality
planning. They form the basis for FMEAs and
control plans.
Components of the process flow diagram are
– brief description of each process step
22
– definition of the type of machine and/or

equipment
– classification of each process step in terms of
its influence on the product
– detailed list and description of the factors of
influence and potential disruptive factors
– brief description of the relevant controls
– specific, including statistical, methods which
are applied in process monitoring.
2.10 Control plan preparation for agreed

important characteristics
Proof of compliance Agreed important control characteristics of the
product or process must be documented in the
Control Plans
control plans1).
(Prüfpläne)
This applies especially to D-parts, in the case of
which all characteristics requiring documentation
(as defined in the TLD catalogue) must be con-
tained in the control plans.
2.11 Test equipment planning
Proof of compliance The test equipment plan1) defines what test and
measuring equipment must be installed and
Test equipment plan
used for the various characteristics.
The deployment of suitable test and measuring
equipment must be planned early enough to
enable all important characteristics to be mea-
sured on prototype parts.
The final test and measuring equipment should
be fully functional and in place when the PV
series begins.
The capability study must be conducted for all
planned measuring equipment (variables test),
with the entire measuring process and the tole-
rance of the characteristic measured being
scrutinised.
1) cf. VDA Vol. 4
23
For process control, where possible suitable

measuring equipment for the recording of varia-
ble characteristics, process variations and
disruptive factors should be used.
2.12 Operational equipment planning
Proof of compliance The deployment of suitable operational equip-

ment must be planned well in advance so as to
Process layout/
ensure that a sufficient capacity of operational
manufacturing plan equipment is available in the correct location for
pre-production series start-up.
The machine capability of operational equipment
must be proven (Cmk).
Employees must be adequately trained in the
use of the operational equipment.
2.13 Planning of preventive maintenance
Proof of compliance Suppliers are required to develop a system for

preventive maintenance of production facilities.
Planning and
Preventive maintenance intervals must be laid
performance of down and an emergency strategy drawn up for
processes which can lead to interruption of
preventive delivery capability.
maintenance Proof of systematic and thorough performance of
preventive maintenance must be furnished.
The basis for the maintenance plan can for
example be provided by manufacturers’ recom-
mendations, empirical values or SPC evaluations.
Maintenance scopes must also be laid down
(maintenance manual).
Maintenance personnel must be prepared well in
advance for the installation of new machines and
systems.
The application of TPM methods (Total Produc-
tion Maintenance) is recommended.
24
2.14 Packaging planning

Proof of compliance Based on the developer’s suggestions, the type
of packaging, transportation and storage must be
Selection of
jointly decided by the client and the supplier and
packaging on the laid down in the technical specifications (Lasten-
heft). The key criteria here are
basis of quality and
– economy
logistical aspects – protection against dirt and damage
– simple and ergonomic handling (transport, un-
packing)
– labelling which can be read electronically from
outside and is not harmful to the product
– re-usability (re-usable containers are preferab-
le)
– compliance with statutory provisions for the
avoidance of packaging waste1)
– availability, back-up supply
– sturdiness and stacking capability
– assurance of suitable storage facilities or inter-
mediate storage where necessary.
At the same time responsibility must be alloca-
ted for the maintenance and cleanliness of pack-
aging.
Prior to series supply the supplier must agree the
packaging decision with the material flow plan-
ning function of the client, and conduct a pack-
aging audit.
Responsibility for the assurance of damage-free
delivery lies with the supplier. Any other arrange-
ments must be agreed in writing with the client.
2.15 Personnel qualification

Proof of compliance In order to be able to draw up a quantitative and
qualitative plan of requirements for the training of
Employee
personnel, the existing qualifications of the em-
qualification plan ployees (experience, proven skills etc.) must be
recorded2). The necessary training measures for
ongoing qualification must be planned and
carried out.
1) in line with VDA recommendation 5000, Section 7

2) cf. VDA Vol. 6
25
2.16 Environmental protection and recycling
General requirements:
Measures for waste It must be decided at management level to what
extent internal or external development and pro-
reduction, official duction processes are environment-friendly and
results or internal fulfil industrial health requirements. This includes
the duty of constantly examining the potential for
control results the procurement, use or manufacture of more
pro-environmental products, bringing environ-
mentally relevant production processes up to
state-of-the-art levels, minimising the consump-
tion of resources (earth, water, air, energy, raw
materials) and implementing pro-environmental
packaging, logistical and transport concepts.
For the corporate management, the duty to mini-
mise the consumption of resources means sup-
porting external structures, and setting up inter-
nal structures, for re-use of the products at the
end of their service life, and for the production
process the maximum possible use of recycled
materials and production resources.
Details of this should form a part of the supplier’s
company information (or product range informa-
tion).
In order to guarantee economic re-utilisation of
the materials used, the parts must be provided
with a material and manufacturer identification in
line with the specification, so that they are easily
and clearly recognisable on disassembly. The
supplier must indicate recycling concepts for the
closing of material cycles, or methods of dispo-
sal. In principle only such materials should be
used as can be recycled.
The approval of parts made from recycled mate-
rial is handled by the client’s Technical Develop-
ment.
The parts must be sampled.
The sample report must give the origin of the
material. The safety information sheet applicable
in each case forms a part of the sample report.
The exact chemical composition of the materials
and resources used must be documented and in
26
substantiated cases particularised. In connection

with the substitute materials examination which
must be performed in accordance with § 16 Ge-
fahrstoffverordnung (Dangerous Substances
Directive), the supplier must take account of the
client’s requirements in terms of a reduction of
health risks, with reference to the following
points:
1. Processing in the production facility of
the VOLKSWAGEN Group client
2. Use by the customer
3. Recycling.
In each case the use of substitute materials must
be agreed with the client.
27
3. Activities prior to series start-up
3.1 Activities in the VOLKSWAGEN Group
(No proof of compliance required)
3.1.1 Simultaneous engineering (SE)
A drastic reduction of product development

times is imperative if the VOLKSWAGEN Group
and its suppliers are to remain effective in inter-
national competition.
A major contribution to the reduction of
necessary development times is made by the
application of simultaneous engineering (SE).
SE means a departure from the traditional pro-
gressive approach.
Through the parallel, simultaneous development
of product and production equipment, the avai-
lable development time is used to the best
advantage. It also makes a longer modification
period for the production equipment possible.
Despite longer development phases, considerab-
le time savings are made in the innovation phase
of the product as a result of simultaneous deve-
lopment of the product and planning of the pro-
duction equipment.
The application of SE relates not only to the
manufacturer’s internal procedures, but also to
development suppliers, module suppliers, parts
suppliers, and the manufacturers of production
equipment. SE is a key component of the new
VOLKSWAGEN Group purchasing strategy and
includes the earliest possible involvement of
development suppliers, the selection of module
suppliers and the collaboration of parts suppliers
in the various project teams immediately after
procurement type definition.
In a first stage, development agreements for
certain modules are concluded with suppliers.
The integration of these suppliers occurs even
before completion of the objectives catalogue.
It is planned to commission several competing
suppliers with the pre-development of individual
28
modules. The decision as to which of the deve-

loped concepts should be gone ahead with is
made on completion of the objectives catalogue.
All activities are derived from a schedule based
on the required date for start of series produc-
tion.
Part of the aim is to involve the supplier in the
preparation of the technical specifications.
This collaboration at an early stage results in
advantages such as:
– a considerable reduction in develop-
ment times and costs,
– early integration of customer wishes
and statutory requirements,
– lasting savings in tooling, materials and
logistics costs,
– better-quality products as a result of
matured designs and production equip-
ment,
– international competitiveness.
3.1.2 Co-operation and experience-sharing
The suppliers are involved on a partnership basis

as early as the pre-development stage for com-
plete assemblies (as development supplier). As a
rule the development supplier becomes first
supplier. The development supplier ensures that
as many standard parts as possible are used.
The VOLKSWAGEN Group client provides the
supplier or sub-supplier with all findings related
to the sphere of the product to be developed – in
particular the requirements of the cross-marque
platform strategy (platform, “hats”, first sample
deadlines and locations, etc.). For the supply of
modules, competency and responsibility must be
determined jointly and in good time, and inter-
faces defined.
In the case of product development by the
VOLKSWAGEN Group, the technical manufac-
turing possibilities of potential suppliers on the
basis of similar processes and comparable
29
products must be taken account of. This applies

for the definition of tolerances even where eco-
nomic considerations are applied. For the more
effective use of the cost factor of time, the
VOLKSWAGEN Group is aiming for a full-spec-
trum use of CAD/CAM models, including statisti-
cal tolerance chain analysis possibilities and their
exchange via electronic data interchange (EDI).
3.1.3 Objectives catalogue, technical

specifications list
Both the objectives catalogue and the technical

specifications list comprise stipulations approved
by the client concerning development projects
for the individual phases of product development
and preparation for introduction.
These stipulations are based on market require-
ments relating to vehicle technology, manufac-
turing technology, quality, costs and deadlines.
The objectives catalogue sets out the conse-
quences arising from the stated objectives.
The technical specifications list comprises the
stipulations binding as at Styling Freeze.
The client and the development supplier nomi-
nate order overseers or project overseers who
jointly co-ordinate the necessary technical stipu-
lations (see 2.2 and 2.3 above).
The development supplier is required to develop
his own technical specifications/requirements list
on the basis of information received from the
client, including field experience, which contains
the necessary stipulations relating to product
requirements, quality, unit numbers, costs and
deadlines.
3.1.4 Definition of important characteristics
Important characteristics of all products must be

identified in drawings. Definition is customarily
undertaken by a cross-functional team in the
30
context of SET work and/or with the aid of

FMEAs and QFD analyses.
The definition must be agreed between client
and supplier.
Of the important characteristics, those for which
process capability examinations have to be
conducted must be defined.
3.1.5 Matching/installation trials in the pre-

series phase
In the case of parts and modules which require
matching, each assembly must be considered
individually on the basis of trial installations invol-
ving all suppliers and sub-suppliers concerned,
and the client. The result must be documented
(e. g. interface FMEA).
After scheduling (see 2.4 above) the supplier
shall be given the opportunity of evaluating his
parts on the cubing, the “Meisterbock” or a
dimensionally-checked bolted bodyshell, but at
least in vehicles in current construction condition.
For this purpose, subject to consultation with
employees of the client’s relevant departments,
employees of other suppliers can also be made
available.
Co-ordination is by the client’s Quality Assurance,
Purchased Parts department.
3.2 Activities at suppliers

3.2.1 Qualification programme for new parts
Proof of compliance The qualification programme for new parts1)
serves the objective of creating the preconditions
Implementation of
for the production of new parts by means of
the qualification quality planning processes at the suppliers.
programme for Among other things this comprises:
new parts – provision to deadline of sample and

series parts
1) cf. Brochure “Qualification programme for new parts”,

VOLKSWAGEN AG
31
– checking of design documentation for

completeness, plausibility and feasibility
– production of the dimensional stability
(MI) and process capability (PI) forecast
– monitoring of the preparation of equip-
ment aids such as original model
castings, gauges, xxx, etc.
After procurement type determination, the client
selects key parts of the project concerned, for
which the qualification programme is to be im-
plemented by the supplier together with the
client.
Key parts are parts which
– manifest a novel type of design
– incorporate new manufacturing techno-
logies
– are known from past experience to be
problem parts with corresponding reject
rates in further processing or in custo-
mer use.
In addition to the key parts, which are processed
by the team, it is expected that all other parts
shall be dealt with by the supplier on his own in-
itiative in line with the qualification programme.
The data to be ascertained concerning the
various project points must be made available on
request.
3.2.2 Dimensional stability forecast
Proof of compliance The supplier of prototype and pre-series parts

produces a measurement record of the parts
Measurement report
relating to important characteristics (prior to any
of prototype and repairs/reworking for the purpose of achieving
status as per drawing). These measurement
pre-series parts/ records are a component of the part’s life-history
statement of and should be kept constantly available for
reference purposes. In this connection the
dimensional stability comments of experienced employees in
prototype manufacturing, going beyond pure
indicator MI
measurement data, are often very helpful at a
later date.
32
Prototype and pre-series parts must be ordered

and manufactured as such, in line with require-
ments for the various construction stages. The
units supplied must be identified accordingly.
Any deviations in respect of important charac-
teristics must be agreed with the client’s relevant
departments.
The dimensional stability indicator MI must be
calculated for each measurement record on the
basis of the six measured parts.
The dimensional stability indicator MI is a yard-
stick showing to what extent the characteristics
examined correspond to the requirements of the
drawing1).
Dimension stability indicator MI
– minimum values –
MI = k Prüfwerte innerhalb Toleranz x 100 %

n Prüfmerkmale x m Musterteile
[%]
100 % 100 % 100 %
100
90 85%
80 70%
70 60%
60
50
40
30
20
10
0
-35 -26 Monate vor Serie -14 -10 -5 0
Prototyp Prototyp Prototyp PVS O-Serie Serie
1. Baustufe 2. Baustufe 2. Baustufe
Beginn Ende
After approval of the first sample by the client,

the MI no longer needs to be calculated.
For special inspection requirements, appropriate
measuring procedures and xxx must be agreed.
Individual measurement results can be recorded
on the supplier’s own forms, but the required le-
gend must be retained. Calculation of the dimen-
1) cf. Brochure „Qualification programme for new parts“,

VOLKSWAGEN AG
33
sional stability indicator must be carried out in

accordance with the Volkswagen procedure1).
3.2.3 Process capability forecast
Proof of compliance For selected important characteristics the pro-

cess capability indicator PI1) is required as early
Statement of process
as the time of delivery of prototype or pre-series
capability indicator PI parts. This PI value serves to estimate to what
extent the planned or installed manufacturing
processes can be deemed reliable.
The minimum PI values for each development
advance can be found on the chart.
If series production processes for the manufac-
ture of prototype or pre-series parts are not yet
available, then substitute processes will be
selected on the basis of identical process
arrangement, and parts from this “surrogate
production” used for ascertaining the process
capability indicator PI.
Process capability indicator PI
– minimum values –
n Cp, Cpk values > minimum value

PI Cp, Cpk =
n important characteristics
Cp, Cpk
1.33 Cp, Cpk > 1.33
Cp,Cpk > 1.00 10 10

1.00 10
0 0 0
% % %
of of de
60 70 85 th th r
% % % e e Pr
pr pr oz
oc oc es
-35 -26 Monate vor Serie -14 -10 -5 0

Prototype Prototype Prototype PVS O-Series Series
1st. construction Start of 2nd End 2nd
stage construction construction
1) cf. Brochure “Qualification programme for new parts”,

VOLKSWAGEN AG
34
3.2.4 First samples and approval conditions

Proof of compliance First samples are products and materials which
have been manufactured entirely using series
First sample
manufacturing equipment and under series con-
inspection, record ditions.
of result and The first sample inspection is designed to furnish
proof prior to series start-up that the quality
approval 1) requirements as agreed in drawings and speci-
fications, together with any measures additio-
nally called for by CSC decision, are met.
All quality characteristics agreed in drawings and
specifications in respect of dimensions, material,
function, reliability, appearance, texture and iden-
tification (e. g. manufacturer code) are sampled.
First samples will be required by the client on
the basis of an order with deadline in the case
of:
new parts and new assemblies
technical alterations (modified parts,
altered specifications)
The supplier is responsible for carrying out the
sample inspection.
The client reserves the right of counter-inspec-
tion.
First samples (in the case of manufacturing with
identical tools from each tool or from each cavity
of a multiform tool) must be delivered with a
complete first sample inspection report in accor-
dance with VDA1) including the EU safety infor-
mation sheet in accordance with VW Standard
01155 (Dangerous Substances Directive § 14,
§ 16(1)). The requirements of the VDA booklet
also apply to sub-suppliers.
The supplier is obliged to inform the client 2) in
good time and in consultation with the client
to supply first samples, or where applicable
pre-samples, in the case of
1) cf. VDA, Vol. 2

2) Contact person is Quality Assurance at the client factory
35
product modifications,
production relocations, new
manufacturing facility concepts,
changes in production processes and
logistics procedures,
extended interruption of production
(over 1 year),
new sub-suppliers.
These requirements also apply to sub-supp-
liers.
For agreed important characteristics, statements
on process capability are required.
The inspection results must be recorded in a first
sample inspection report; this must also show
the dimensional stability indicator MI and the pro-
cess capability indicator PI (see 3.2.2 and 3.2.3
above).
If the client waives counter-inspection of the
samples, then the issuance of an inspection
certificate can be agreed upon in consultation
with the supplier, in which the proper conduct of
the first sample inspection by the supplier is con-
firmed and the joint decision is recorded. The
installation and function inspection by the client
remains unaffected by this arrangement and
remains a requirement in every case.
In addition, agreements can be concluded bet-
ween supplier and client which supplement or
curtail these arrangements for first sample
inspections.
This also applies to the number of parts to be
sampled.
Required samples which for scheduling reasons
cannot be manufactured under the official first
sample conditions are designated as pre-samp-
les. Submission of pre-samples is only possible
subject to written approval by VOLKSWAGEN
Group Procurement or Logistics or the order
overseer.
In the case of decorative characteristics, approval
is required from the responsible styling depart-
ment of the client.
36
Overall first sample approval is granted by the

client. After evaluation of the sample inspection
results, one of the following decisions is made:
Grade Decision Consequences

1 Accepted Series
Trial installation, func- approval
tional, material and
dimensional inspections
passed without objec-
tion.
Documentation is
complete.
3 Conditionally usable Re-sampling
for PVS required
Sample with minor (Possible
defects which are consequences
described in the first for supplier
sample inspection assessment)
report. The defects
must be eliminated
by SOP.
Documentation is
complete.
6 Rejected Series
(Reasons are given) approval
e. g.: parts showing withheld
serious deviations (Consequences
from the technical for supplier
documentation or pro- assessment)
cessing, installation and
function trials are
seriously hindered
or impossible. Existing
parts must not Re-sampling
be used. Incomplete required
documentation. on request.
As required, the decisions are accompanied by

remarks (e. g. conditions).
The approval of samples by the client does not
relieve the supplier of responsibility for the
quality of his products. Nor does it represent an
order for supply.
37
Incomplete sampling documentation or non-

compliance with additional requirements (e. g. as
resulting from “CSC” or “Readiness” processes)
automatically results in a grading of -6-.
Threefold re-sampling with negative result auto-
matically leads to a the sourcing decision being
taken a new or re-examined by VOLKSWAGEN
Group Procurement (GS/FS process).
Any additional expenditures arising from incom-
pleteness of sampling documentation will be
charged to the supplier.
3.2.5 Pre-production run (2 days production)

Proof of compliance
As a rule, a pre-production run (2 days produc-
Compliance with tion1)) must be carried out especially for mo-
dules, complex components, component groups
pre-production run and assemblies. Chronologically this will come
objectives between the Nil-series and series start-up.
(2 days production) The aim of a pre-production run is for the supp-

lier to furnish evidence in respect of
– process and quality performance of the
entire production process under series
conditions,
– the capability, with the personnel and
machine capacities deployed, of
manufacturing the required numbers of
acceptable units to deadline for the
client, and
– the suitability of the scheduled
packaging, transport and storage
containers and pallets, and of the
modes of transport and routes.
For this pre-production run it is imperative that
manufacturing at the supplier’s or sub-supplier’s
be under series production conditions. This
prerequisite may be scrutinised by the client in
the form of a pre-check1). Furthermore, in
addition to the required first sample inspection
1) cf. Brochure “2 days’ Production” VOLKSWAGEN AG
38
and approval by Volkswagen, all necessary deve-

lopment and planning work must be complete.
The number of parts to be manufactured in a pre-
production run is determined in agreement bet-
ween the client and the supplier, in order to
arrive at an optimum unit number for both par-
ties.
As a rule a representative of the client factory’s
QA purchased parts department must be present
at the manufacturing plant during the pre-produc-
tion (2 days’ production) run.
This is particularly important in the case of mo-
dules, complex components and other key parts.
The pre-production batch size must in any case
be large enough to enable a statistical statement
to be made on the positioning and range of distri-
bution of the important characteristics. In the
case of a process using several identical tools or
multiform tools, the pre-production run must be
carried out using at least 50 % of the planned
tool volume or cavities of a multiform tool. Devia-
tions from this are only possible in consultation
with the client, depending on the start-up curve.
The results of the process capability examina-
tions must be submitted to the client for scrutiny
on request.
In addition to the pre-production/2 days’ produc-
tion system, in the case of projects subject to
critical deadlines, progress in the manufacturing
of tools and equipment will be checked by
means of visits from the VOLKSWAGEN field
service in order to safeguard the successful
achievement of the project’s objectives.
When the objectives have been achieved, the
project stage of pre-production is concluded and
approval issued for the next stage: series pro-
duction.
The person responsible in each case is the tech-
nical staff member of Quality Assurance, Pur-
chased Parts.
39
3.2.6 Quality management handbook

Proof of compliance Each supplier must produce his own quality
management handbook and keep it up-to-date.
Quality management
The guiding principle for this handbook should be
handbook
the currently valid edition of DIN EN ISO 9004.
40
4. Quality measures in series production
4.1 Ascertainment of ongoing process

capability
Proof of compliance Process capability is a measure of the quality of a
process as related to the specification of the pro-
Process capability
ducts to be manufactured in the process.
indices Cp, C pk
Ascertainment of the ongoing process capability1)
requires a long-term observation of the process
results. For the ascertainment of process capa-
bility it is necessary for the process to be under
statistical control, i. e. that all systematic influen-
ces are known and under control. Process capa-
bility is customarily determined using control
cards.
The range of important characteristics for ascer-
taining Cp and Cpk values must be defined in the
product and process FMEA. This documentation
may be inspected by the client at any time.
4.2 Control of the manufacturing process

Proof of compliance Control of the manufacturing process is achieved
through the constant monitoring
Process assurance
a) of specified important product
characteristics and/or
b) the process parameters influencing
these.
re: a) These are specific component
characteristics such as dimensions,
weight, surface texture.
re: b) These are process-relevant parame-
ters such as pressure, temperature,
time, atmospheric humidity, current,
voltage.
Definition of the important characteristics for a)
and b) is made primarily in product or process
FMEAs.
1) cf. VDA, Vol. 4
41
Control of processes can be by mathematical-

statistical procedures such as SPC and DoE.
Precise information on the procedures of statisti-
cal process control can be gained from the litera-
ture.
4.3 Internal system audit

Conduct of audits as In order to assess and improve the quality capa-
bility of company divisions, internal audits must
required by suppliers be carried out at set intervals as instructed by
corporate suppliers’ corporate management1).
management
4.4 Conduct of internal process audits
Audit result and The purpose of a process audit is to establish

whether the processes and procedures used
catalogue of correspond to the stipulations and conditions for
measures the adherence to specifications. The basis for
this is procedural and process specifications,
technical requirements and quality demands (see
2.9 above).
Grounds for the conduct of process audits are
– new procedures/products prior to series
start-up
– increases in capacities and changes of
use
– supplement to system audits
– assurance of important characteristics
(D-TLD)
– improvement of quality performance on
the basis of existing wastage and
– results of supplier assessments
In a process audit the following areas/processes
are assessed among others:
– sub-supplier qualification
– storage of materials and purchased
parts
– production and test equipment
– production and test documentation
1) cf. VDA, Vol. 6
42
– capability proofs and continuous

improvement processes
– employee qualification
– maintenance
– product audit (quality from the customer
viewpoint)
– packaging.
Weaknesses revealed in the audit result must be
defined, together with effective measures for
rectification, in an improvement programme with
accompanying timetable. Implementation of
these improvement measures must be moni-
tored (i. e. their effectiveness checked against
results) and must be documented.
4.5 Conduct of internal product audits

Proof of compliance A product audit is the checking of a small num-
ber of finished products for their adherence to
Audit result and
prescribed specifications, drawings, technical
catalogue of documentation, packaging requirements, stan-
dards, statutory provisions and other stipulations
measures of the client1).
In the process the product is always scrutinised
from the viewpoint of the client and his custo-
mers, for example in regard to its function,
dimensions and outward appearance.
Weaknesses revealed in the audit result must be
listed in a timetable together with effective mea-
sures for rectification, which must be implemen-
ted.
4.6 Measuring and test equipment for

important characteristics
Proof of compliance The supplier is obliged to make use of test equip-
ment (measuring appliances, gauges and test
Test equipment for
appliances) for securing the quality of parts, for
checking important ascertaining process capability and for purposes
of analysis2).
characteristics
1) cf. VDA, Vol. 6.5

2) cf. VDA, Vol. 4
43
All equipment required for the control of internal

processes must be to hand. The same applies to
all measuring equipment which is needed for
ascertaining the required variable data (e. g. SPC
characteristics).
The integration of automated test equipment in
the production process is recommended.
The VOLKSWAGEN Group requires suppliers to
be able to fully measure and test for function
every finished part by the time of the PV series.
If universal measuring equipment is not sufficient
on account of the complex forms involved, the
supplier decides in accordance with the defined
important characteristics whether special gauges
or xxx are necessary. It is desirable that mea-
suring equipment should make possible the
gathering of variable measurement data.
In order to ensure that, where several suppliers
manufacture the same purchased part, all impor-
tant characteristics can be measured identically
by each supplier, design of the necessary mea-
suring equipment should be carried out or co-or-
dinated by the development supplier. This will
also ensure the comparability of the various mea-
sured results.
Since there is only a limited range of testing
equipment available at the clients’ factories, ana-
lyses must also be carried out by the supplier.
4.7 Calibration of the measuring/test

equipment
Proof of compliance The VOLKSWAGEN Group expects its suppliers
Test equipment to use only calibrated measuring and test equip-
ment in connection with product and process.
documentation
All universal measuring equipment including
electrical and pneumatic appliances, gauges and
measurement recorders must be regularly
calibrated in accordance with a prescribed
schedule. The calibration intervals depend on the
type of measuring appliance and its use.
44
The precision of measuring appliances with fixed

dimensions (e. g. tolerance gauges) must be do-
cumented as long as the values lie within the
prescribed tolerances of the quality grade. Mea-
suring appliances with values outside of the tole-
rances must not be used.
Calibrations must be recorded and the measuring
appliance marked accordingly. The marking must
clearly state the date when the next calibration is
due.
The measuring equipment used for calibration
must be based on official measurement stan-
dards.
4.8 Conduct and record of reliability tests

Proof of compliance The supplier must carry out reliability examina-
tions, not only during development, but also
Evidence of reliability
during ongoing series production, to ensure that
the reliability expected by the client and its custo-
mers is achieved.
Random sample sizes and test frequency must
be set out in the control plan (see also 2.10
above) and based on TL provisions, drawings,
technical specifications and field experience. Test
frequencies must where necessary be adjusted
in consultation with the client.
Test frequencies can be reduced if the results
justify this. If in consequence the specified test
frequencies (TL provision) are fallen short of, the
approval of the client’s development engineer is
required.
The results of the reliability tests must be docu-
mented and analysed1). In the case of parts with
D-characteristics, and in certain other specified
cases, the actual test conditions must be docu-
mented.
If parts fail prematurely during the test, the Qua-
lity Assurance, Purchased Parts, department of
the client factory must be informed immediately.
1) cf. VDA Vol. 3
45
If the approval of production batches is depen-

dent on series production reliability tests, the
manufactured parts must be kept in their batches
until such time as approval can be issued subse-
quent to successful completion of the reliability
test. In every case the possibility of retrospective
identification must be assured.
4.9 Quality data

Proof of compliance The supplier is obliged to keep results-related
quality data from control cards, inspections and
Filing of quality data
audit results on file for a sufficient length of time.
Regulations relating to dimensional examina-
tions, laboratory and function tests, gauges,
calibration and disruption case limitation must
also be filed for a fixed period of time.
The storage periods for data not requiring docu-
mentation are:
for results-related data/experience-based
comments:
at least one year subsequent to the calendar year
in which they were originally produced. (MI/PI
data and experience-based comments should be
made available to the client factory after expiry of
the storage period.)
for regulations:
at least one year subsequent to the calendar year
in which the regulation was altered or became
ineffective.
Minimum storage periods for data requiring
documentation are laid down by the VDA1).
1) cf. VDA Vol. 1
46
4.10 Parts identification in the manufacturing

process
Proof of compliance Materials, parts, semi-finished and finished pro-
ducts must be identified1) and stored in such a
Parts identification
way that mistakes and confusion are impossible.
system For this purpose colour codes, bar codes, labels,
stamps etc. can be used.
manufacturing
For parts which are subject to the risk of confu-
sion and which can only be identified by mea-
surement, mix-ups must be ruled out by means
of suitable process measures. Where this is not
possible, recourse must be had to additional con-
spicuous identification systems.
In mixed production it must be assured that
D-parts and vital parts are recognised as such in
the manufacturing process. Containers and
accompanying documents must be marked with
a large “D”.
For requirements relating to general identification
for the purposes of subsequent recycling see
2.16 above.
4.11 Application for deviation approval

Proof of compliance A deviation approval is a limited approval of ma-
terials, processes or parts which do not corres-
Deviation approval
pond to the client’s specifications. Deviations can
only be permitted if the function, durability or
safety of the products concerned is not impaired.
The deviation approval must be applied for in
writing by the supplier to the responsible design
department of the VOLKSWAGEN Group.
Deviation approvals are normally restricted to a
certain number of parts, a certain supply period,
or other similarly-defined limits.
1) cf. VDA, Vol. 1
47
4.12 Analysis of returns (0 km)

Proof of compliance Rejected parts with “zero km defects” are pur-
chased parts which have been identified as defec-
Defect analysis and
tive in the course of production by the client. Such
rectification measure defective parts and associated symptoms and
causes must be analysed by the supplier on re-
quest and in co-operation with the Quality Assu-
rance, Purchased Parts department of the client.
For all defect causes ascertained, lasting recti-
fication measures must be defined and intro-
duced, and their effectiveness monitored. A
report must be produced containing recommen-
dations for the prevention of these defects’
occurring in new parts and new projects.
Individual defects must also be analysed for their
causes. Suspected assembly defects are investi-
gated on the client’s production line together
with the supplier.
Schedules for rectification measures, including
examinations as to effectiveness (!), must be
submitted to the client factory.
4.13 Field observation
Proof of compliance In the context of his responsibility for product

observation, the supplier must regularly analyse
Support of field
all information accessible to him and where
analyses by applicable initiate the necessary activities.
the supplier These may comprise for example
• the client’s inspection and laboratory reports,
• reports from other clients regarding identical/
comparable parts,
• observation of the warranty record of his parts
in the field, that is, in the hands of the custo-
mer,
• changes in unit numbers in recourse/returns,
• information from newspapers, magazines,
trade publications or other media in which
there are reports on the supplier’s parts.
If problem situations make field analyses
necessary, these must be organised in consul-
48
tation between the client’s Quality Assurance,

Purchased Parts department and the supplier.
The customer has overall charge.
4.14 Product safety and product liability

Proof of compliance In their use of purchased parts, the marques and
subsidiaries of the VOLKSWAGEN Group bear
Organisational
responsibility as the final manufacturer and the
measures for overall responsibility for the end product, that is,
the vehicle.
minimising the
However, the primary manufacturing responsibi-
product liability risk lity for the purchased parts installed in the end
product lies with the supplier, or where applicab-
le with the sub-supplier. The supplier is therefore
obliged to do everything possible and reasonable
in terms of organisation and technology to in-
crease the product safety of his parts and those
of his sub-suppliers and to minimise the product
liability risk.
The VOLKSWAGEN Group therefore expects
from suppliers and sub-suppliers that
– a high level of quality-consciousness is
present throughout the company,
– the necessary product safety is ensured
in the development of components,
– product safety is accorded especial
attention in quality planning,
– the probability of the occurrence of
defective products is minimised through
appropriate in-series quality assurance
measures,
– the prompt identification of defective
products in the course of production is
assured by means of appropriate mea-
sures,
– quality data should be comprehensively
documented, thus furnishing proof that
the manufacturing of the products has
been in accordance with statutory pro-
visions and safety standards (see 4.10
above),
49
– where necessary a retrospective identi-

fication system for material is put in
place in order to limit the effects of de-
fects which have occurred,
– the employees responsible are
thoroughly informed and trained in the
aspect of “product safety and product
liability”,
– comparable systems are in use at all
sub-suppliers.
4.15 Qualification of sub-suppliers
Proof of compliance The quality of a product essentially depends on

the quality of its components. The components
Sub-supplier
of a product can be materials, parts or assem-
qualification system blies.
The same care which the VOLKSWAGEN Group
displays in its collaboration with its suppliers
must also be applied in the collaboration bet-
ween suppliers and sub-suppliers.
In particular the following points must be
assured:
– Communication with sub-suppliers con-
cerning important characteristics of the
installation situation, and drawings and
specifications.
– The use of the same or comparable
quality assurance systems at sub-
suppliers as are required by the
VOLKSWAGEN Group of its suppliers.
In every case the supplier remains fully
responsible for the end product supp-
lied, and is the respondent party for the
client in the VOLKSWAGEN Group.
– The supplier must ensure that his sub-
suppliers are quality-capable, and can
provide the required quality perfor-
mance on a continuous basis and
improve it.
50
4.16 Disruption case limitation

Proof of compliance Disruption cases can only be limited if all process
steps are chronologically subdivided in such a
Transparent,
way that, even after an extended period, the
technically realistic problem parts can be pinpointed to the smallest
possible unit.
procedure for
The manufacturing path and the quality data for
disruption case parts with characteristics requiring documenta-
limitation tion and for parts identified in the technical speci-
fications must be capable of retrospective recon-
struction. This is necessary so that in the case of
a problem individual manufacturing batches can
be separated out. If necessary these measures
must be capable of application right down to sub-
supplier level.
Similarly, the client in the VOLKSWAGEN Group
must set up systems to ensure that a traceback
can be made as far as the delivery batch
concerned.
Examples of batch types are:
1. raw material batches
2. supply batches
3. production batches
Each supplier is responsible for designing his
own disruption case limitation system, and deter-
mines for which characteristics of his parts it
must be applied.
Batch numbers, dates of manufacture or other
identification numbers (e. g. “material clocks”)
must wherever possible be applied to the parts.
EDP-readable identification is preferred.
51
4.17 Ascertainment of product-related defect

costs
Proof of compliance The ascertainment and analysis of defect costs is
an important control element in the improvement
System for the
of quality.
ascertainment of
Suppliers are required to install a system for the
product-related ascertainment of product-related costs. Only in
this way is it possible to have a practical, syste-
defect costs matic identification of defect costs which is of
value in the quality planning of new parts.
Product-related defect costs include
– general identification and reworking
costs (supplier and client)
– additional expenditure in logistics
– moodification costs (re-development
costs)
– warranty costs and
– miscellaneous additional costs to
supplier and client caused by defects.
There is no obligation to reveal the defect costs
ascertained to the client. An exchange of such
data is however regarded as desirable, in the
interests of joint optimisation of quality, service
and price.
52

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Vw-Qms Supplier Agreement

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Quality management agreements

between the Volkswagen Group

This is the 3rd edition of the Formel Q-konkret manual

Herwart Kreiner F. J. Garcia Sanz

Wolfsburg, September 1998

1 Supplier qualification and continuos improvement . . . . . 14

2 Quality planning at suppliers . . . . . . . . . . . . . . . . . . . . . . . . . 18

4 Quality measures in series production . . . . . . . . . . . . . . . . . 41

Nowadays more than half of a vehicle is made up

The intensification of quality planning measures

B . Sphere of application of Formel Q-konkret

The present “Formel Q-konkret” quality

As an organisational and systematic aid to the

C. Explanation of terms and abbreviations

material, manufacturer’s markings, manufactu-

tion. These general experimental methods are of

Error “tree” analysis One of many methods for establishing the

Module supplier Supplier of an assembly which is put together

QFD Quality Function Deployment (“House of

control model is in existence. After this has been

Important Critical and function-relevant product, process

1.1 Quality management 

Conduct of quality The VOLKSWAGEN Group expects a quality

1.2 External process and product audit

Conduct of process As a supplement to the QM system require-

1) cf. VDA Vol. 6

point up possibilities for improvement. A forecast

1.3 Assessment of quality capability

Assessment of quality The assessment of quality capability of suppliers

Grade Designation Measure

1) cf. Volkswagen brochure ”Supplier Q – Capability”

+ Application and effectiveness VDA process

Practice-related additional requirements,

VDA-approved certifier Motor manufacturer / supplier

QM Manual procedure/work instructions Customer-specific product / process requirements

1.4 Supplier assessment

1.5 Formel Q supplier award

The supplier assessment forms the basis of the

Proof of compliance This section contains a list of the requirements

2.1 Preparation of a Quality business plan

Proof of compliance The Quality business plan serves to highlight the

2.2 Nomination of quality officers

2.3 Nomination of an order overseer

Suppliers’ scheduling must take account of the

2.5 Ascertainment and prompt

2.6 Feasibility studies

2.7 Zero-defect strategy

2.8 FMEA for products and processes

2.9 Process flow diagrams

Proof of compliance Process flow diagrams are descriptions of the

– definition of the type of machine and/or

2.10 Control plan preparation for agreed

2.11 Test equipment planning

1) cf. VDA Vol. 4

For process control, where possible suitable

2.12 Operational equipment planning

Proof of compliance The deployment of suitable operational equip-

2.13 Planning of preventive maintenance

Proof of compliance Suppliers are required to develop a system for

2.14 Packaging planning

2.15 Personnel qualification

1) in line with VDA recommendation 5000, Section 7

2.16 Environmental protection and recycling

1.1 Quality management

1.5 Formel Q supplier award

3.2.5 Pre-production run (2 days production)

(2 days production) The aim of a pre-production run is for the supp-