25925 Telegraph Road, Suite 350 Southfield, Michigan 48033 Phone: 248.952.6401 Fax: 248.952.6404

www.oesa.org

MINUTES

Warranty Management Council Minutes June 30, 2016

OESA Conference Center, Southfield, MI

Members Present: Karen Cairns, Senior Manager, Warranty Administration and Shainin, American Axle & Manufacturing, Inc. Michael Hirt, Manager, Warranty and Service Quality, ADAC Automotive

Steven Vahle, Warranty Manager, NA Operations, Benteler Automotive Corporation

Thomas Hill, Warranty Specialist, Benteler Automotive Corporation

Mary Kay Watson, Warranty Manager, Brose North America, Inc. Melody Dowell, Manager/ Customer Quality, Carlex Glass

Jeff Lehnhardt, Senior Vice President, Quality and Service, Clarion Corporation of America

Andrew Mast, Attorney, Clark Hill PLC

Russell Rombach, Warranty Group Manager, Cooper-Standard

Steve Debat, Manager, Warranty Quality Engineering, DENSO International America

Paul Abernathy, Warranty and Performance Engineer, Customer Satisfaction, Federal-Mogul Corporation

Mike Tiihonen, Corporate Quality Manager, Program Manager, FIAMM Technologies

Mike Lyle, Plant Manager and Global Director of Quality, CI & EHS, Flexitech, Inc. Jim Klump, FCA Account Director, Freudenberg North America

Angelica Velez, Quality Warranty Manager, Gentex Corporation

Jeremy Samora, Warranty, Gentex Corporation

Michele Winterhalter, Warranty Specialist, Gentherm

Brent Krohn, Warranty Systems Manager, GHSP David Huang, Warranty Manager, Hella Corporate Center USA, Inc. Catherine Lubchenko, Product Line Quality Manager, Closure Systems, Inteva Products

Adam Bigelow, Warranty Engineer, JAC Products

Nancy Stachowski, Warranty Manager, Johnson Controls, Inc. Susan Da Silva, Senior Specialist CSR and Warranty, Kautex, Inc. Sarah Germain, Engineer Warranty Troy, Kautex, Inc. Scott Douglas, Quality Analyst, Warranty, Key Plastics LLC

Rob Soteros, Engineering Technical Specialist, KSR International Cynia Zhang, Corporate Lead Auditior, KSR International Don Bryant, Warranty Manager, Lacks Trim Systems

Roman Cutler, Warranty Analyst, Lacks Trim Systems

Mike Da Silva, Corporate Quality Manager Magna International Corp, Magna International Inc. Wendy Pewinski, Warrranty Manager, Magna International Inc. Jesus Ibarra, Quality Manager BU1, MAHLE Industries Inc. Dale Semelbauer, Sales Program Manager, MANN+HUMMEL USA, Inc. Micheal Moreno, Director, Quality Warranty Management, Martinrea International, Inc. John Sokol, Warranty Manager, Automotive Engineering, NTN Bearing Corp. of America

Ginger Juncker, Executive Director, Programs and Member Services, OESA

Keiyania Mann, Manager, Councils and Member Services, OESA

David Johnson, Director, Events and Member Programs, OESA

Youzhi (Eugene) He, Senior Warranty Engineer, Schaeffler Group USA, Inc. Matthew Kephart, Warranty Engineer, Toyoda Gosei North America Corporation

Ali Al-Abbas, Warranty Analyst, Trico Products Corporation

Mike Wilson, Director, Design and Information Service, Trico Products Corporation

WMC Council Minutes - June 30, 2016 Page 2 of 4

Keith Thompson, Software and Services, Ubiquiti Inc. Nandit Soparkar, Business Development, Ubiquiti, Inc. Mariano Mar, Vice President, Quality, Yazaki North America, Inc. Matt Stirsman, Quality Assurance, ZF Lemforder

Louis Jraiche, Senior Global Warranty Manager, ZF TRW Automotive Guest Speakers: Bill English, Program Manager of Electrified Powertrain, FCA USA, LLC

Jeff Pagel, Supplier Quality Warranty Specialist, FCA USA, LLC

Michael Hirt, Quality Manager-Warranty, ADAC Automotive Legal Counsel: Andrew Mast, Attorney, Clark Hill PLC

Staff: Ginger Juncker, Executive Director, Programs and Member Services, OESA Keiyania Mann, Manager, Councils and Member Services, OESA David Johnson, Director Events and Member Programs, OESA

I. Welcome and Introductions

Ginger Juncker opened the meeting at 10 a.m. She reviewed the antitrust guidelines and introduced Andrew Mast, Attorney, Clark Hill PLC who acts as antitrust counsel to the WMC. Ginger also reviewed the agenda and upcoming OESA events including: II. FCA Warranty Managemetn Update

Bill English, Program Manager of Electrified Powertrain, FCA shared with the council that he is transitioning to a new role - Program Manager of Electrified Powertrain for FCA. His new role will still have some warranty responsibilities, so we may see him again in the future. During this last presentation to us, Bill updated the council on changes to the FCA US Supplier Warranty Program for 2016MY and the new enhanced internal emphasis on reducing warranty and improving customer satisfaction. Bill also provide an overview on “The Playbook.” His presentation is attached. Things of note from the conversation and subsequent Q&A:

The issue many members experienced from the “Midyear Tune Up of Warranty Targets” was

due to a hick-up in the processing. The issue has been resolved.

The enhanced focus on warranty reduction via the partnership with executives has had an

impact on FCA’s warranty.

FCA is looking at the service side as well, ensuring that Customer Concern, Cause, and

Corrective Action are all correctly filled out by dealerships.

The “Playbook” is meant to be a living document. They are still working on how this can be

shared, while maintaining the “living” aspect of the document.

Conversations are being had about making the dealerships better.

FCA is talking about life cycle costs.

When dealing with directed buy parts causing warranty - bring it up during sourcing if you have

an issue. Ts and Cs are where it belongs. FCA realizes the challenge and are having

discussions on how to possible address it. Bring in the SQE as needed.

o It was also recommended to use a three party agreement. CLICK HERE to the

webpage for OESA’s Directed Buy Committee Report and Draft Form of

Agreement.

o Member comment: use CQI-14 with your suppliers.

If you want to know what’s really in the calculations for the scorecard - Send in your codes and

ask. FCA will send a list of companies used to create the targets.

WMC Council Minutes - June 30, 2016 Page 3 of 4

Regarding the supplier requirement to be CQI-14 compliant – “compliant” means you can prove

you are complying with CSRs. FCA is doing additional training with their teams to increase

awareness with CQI-14.

o Member reminder: use version 3

Reminder that sqwarr@fcagroup.com is an email you can use regarding your questions on

warranty. FCA requires emails to this address receive a response within 24 hours.

III. Sub-Group Report Out

Rob Soteros, Engineering Technical Specialist, KSR International, shared a summary of the sub-group meeting with Ford. It was a good conversation, setting things up for Ford’s presentation at the September 8th WMC meeting. Attached please find the summary from this meeting, including Ford’s remarks. Anyone interested in joining the sub-group, please email Ginger Juncker at gjuncker@oesa.org.

IV. Warranty Influences on new TS16949 Draft

Michael Hirt, Quality Manager-Warranty, ADAC Automotive, walked council members through the draft TS 16949. His presentation is attached. The draft includes feedback from the supply base, as input was gathered from those who are going to have to follow the standards. Time was spent defining a few key terms. Shall = if you can’t prove it, you will get written up. Risk Management = you have identified the risks, you can document the risks, and you can document what you are doing to mitigate the risks. The requirement for variable data will force suppliers to identify what really impacts cost. Michael stated he does not expect to see the next revision until January or February of 2017. It is recommended that you begin talking with auditors now to get your recertification scheduled. It is expected that auditor schedules will fill up quickly.

V. Council Roundtable

Michael Hirt, Quality Manager-Warranty, ADAC Automotive, led the council members during the roundtable.

A. GM PartLink Training Feedback

Council members who attended the training shared their views on the recent GM PartLink Training. The consensus was that it was a decent overview if it was your first time seeing the system, but that it was not good for detailed questions. People are currently experiencing issues with the system. Members reminded each other that the system focused on the 30-day mark. Suppliers need to watch the timing as the system automatically defaults to “accept.”

B. GM Engine/Transmission Warranty Teardown Communication

A new process is being discussed regarding Engineer / Transmission warranty. The communication on this potential new process, sent to a small group of suppliers, was shared by a council member. The proposed process would be based on an individual incident. One incident would send it to a joint review. An email would be sent and you would have 15 days to respond. This would be outside of both the OWT and Legacy systems. There are a lot of questions on this and it is something to watch for.

C. ENG’s Automotive Warranties Event

Multiple council members have received information, and requests for presentations, for the upcoming ENG Automotive Warranties Event. The event will be held on October 26th and 27th at COBO Hall.

WMC Council Minutes - June 30, 2016 Page 4 of 4

There is potential interest within the WMC. This topic will be looked at and the group will be updated as appropriate.

D. Tesla Warranty Requests

The group was asked if anyone has any experience with Tesla Warranty Requests. The few members with experience shared that suppliers don’t get any data or contact unless Tesla believes the supplier is involved in the problem. With that being said, Tesla does appear to have some nice tools for looking at warranty data. VI. Council Meeting Feedback, Topics for Next Meeting and Adjourn

Ginger briefly summarized the meeting and asked participants for their comments. It was agreed that the meeting topics were timely and delivered value to members. She closed the meeting thanking all members for attending. The meeting was adjourned at 3 p.m.

Next WMC Meeting: Date: Sept. 8, 2016 Time: 9 a.m. – 3:15 p.m.

Location: MSU Management Education Center, 811 W. Square Lake Rd., Troy, MI. Remaining 2016 Council Meeting: Dec. 15th

Respectfully submitted, Ginger Juncker Executive Director, Programs and Member Services, OESA

Join. Engage. Advance.

Join. Engage. Advance.

OESA WARRANTY MANAGEMENT

COUNCIL MEETINGJune 30, 2016 @ OESA Conference Center

OESA Wifi Network: OESA Guest Password: oesaGuests!

Join. Engage. Advance. 2

GINGER JUNCKEREXECUTIVE DIRECTOR, COUNCILS AND MEMBER PROGRAMS,

OESA

WELCOME AND INTRODUCTIONS

Join. Engage. Advance.

ANTI-TRUST GUIDELINES

• Approved agenda for each meeting. Stick to the agenda.

• Complete and accurate minutes.

• Business conducted at formal meetings--no rump sessions.

• No agreements, discussions or understandings concerning:• Prices, discounts, terms or conditions of sale

• Profits, margins, cost data

• Market shares, sales territory, markets

• Selection, rejection, termination of customers or suppliers

• Restricting territories, markets, or customers

• Any matter inconsistent with the exercise of independent business judgment in pricing of services

and products, dealing with customers and suppliers, and choosing markets in which to compete

3

Join. Engage. Advance.

AGENDA

4

9:30 a.m. Registration, Continental Breakfast and Networking

10 a.m. Welcome, Introductions, Antitrust Guidelines and OESA Updates

Ginger Juncker, Executive Director, Councils and Member Programs, OESA

10:15 a.m. FCA Warranty Management Update

Bill English, Supplier Warranty Manager, FCA and Jeff Pagel, Supplier Quality Warranty Specialist, FCA USA, LLC

11:45 a.m. Warranty Sub-Group Report Out

12 p.m. Lunch & Networking

12:45 p.m. Warranty Influences on new TS16949 Draft

Michael Hirt, Quality Manager-Warranty, ADAC Automotive

1:45 p.m. Focused Roundtable:

• GM PartsLink Training Feedback

• GM Engine/Transmission Warranty Teardown Communication

2:15 p.m. Council Roundtable Discussion

Michael Hirt, Quality Manager-Warranty, ADAC Automotive

3;30 p.m. Feedback, Agenda Topics for Next Meeting and Adjourn Next Meeting: September 8, 2016

2016 Warranty Mgmt. Council Meeting Dates: December 15th

Join. Engage. Advance.

UPCOMING OESA EVENTS

5

Jul. 13 Marketing Summit - MSU Management Education Center, Troy, Mich.

Jul. 20 Toyota Town Hall Meeting (Registration is Open) - The Inn at St. John’s, Plymouth, Mich.

Aug. 16 Mexico Market Update - MSU Management Education Center, Troy, Mich.

Aug. 25 VW Town Hall - (Registration is Open) - Suburban Showcase, Novi, Mich.

Sept. 7 Recall Readiness, Troy Marriott, Troy, Mich.

Oct. 4 FCA Town Hall Meeting - COBO Hall, Detroit, Mich.

Oct. 12 OESA Terms & Conditions Meeting - MSU Management Education Center, Troy, Mich.

Oct. 13 Honda Town Hall Meeting - Burton Manor, Livonia, Mich.

Nov. 2 OESA Annual Conference - (Registration is Open) - COBO Center, Detroit, Mich.

Dec. 2 Ford Town Hall Meeting - Ford Headquarters, Dearborn, Mich.

Join. Engage. Advance.

PRESENTATION

FCA Warranty Management Update

Bill English, Supplier Warranty Manager, FCA USA, LLC

&

Jeff Pagel, Supplier Quality Warranty Specialist, FCA USA,

LLC

6

OESA Supplier Warranty Update

Bill English

Purchasing & Supplier Quality

June 30th, 2016

27/8/2016

2016MY SAWRP (Supplier Associated Warranty Reduction

Program) Updates

Quality & Warranty First Sourcing Initiative

Enhanced Focus on Warranty Reduction

Top 100 Suppliers - Executive Sponsor Implementation

FCA Ownership of Warranty Reduction

FCA Supplier Quality Warranty Playbook

Topics

3

SAWRP – 2016 Supplier Warranty Targets

• Warranty targets by local commodity code (LCC)

• Remains fixed for 12 months

Warranty Reduction by Conditions (C/1000)

• Targets for each Supplier Manufacturing Location Code

(SMLC) that supplies that particular commodity (LCC)

• Targets based on the “So Equipped” divisor

• Warranty target set regardless of responsibility

• Warranty performance is measured by the replacement

part for the identified failed component

4

FCA Group Fixed Target-setting Methodology

1. Establish the Local Commodity Code (LCC) set of suppliers

2. Determine the 2014 and 2015 Year End C/1000 for each supplier

3. Average the Best of the Prior two years Actuals (removing the highest)

4. Apply the Improvement Factor to calculate the target for the LCC

5. Calculate the EBSC Warranty Score (proximity to target)

EBSC = ((target - the actual C/1000) / 3 X Target) + 1- Σ(deductions)*

* - Deductions determined by Recall, CSN, RRT & FRV

Supplier Commodity2015 December Actual C/1000

2014 December Actual C/1000

Best of the prior two

years

Average of Best - Less the highest

Improvement Factor

(2016CY task)

Fixed Target for Calendar

Year

Supplier 1

Widgets

0.7849 0.6804 0.6804 0.3345 14% 0.2877

Supplier 2 0.0585 0.0603 0.0585 0.3345 14% 0.2877

Supplier 3 0.0711 0.0918 0.0711 0.3345 14% 0.2877

Supplier 4 0.0947 0.0495 0.0495 0.3345 14% 0.2877

Supplier 5 0.1012 0.1644 0.1012 0.3345 14% 0.2877

Supplier 6 0.2835 0.2371 0.2371 0.3345 14% 0.2877

Supplier 7 0.2677 0.3306 0.2677 0.3345 14% 0.2877

Supplier 8 0.3753 0.7854 0.3753 0.3345 14% 0.2877

Supplier 9 1.1695 1.2933 1.1695 0.3345 14% 0.2877

Supplier 10 3.623 3.4506 3.623 0.3345 14% 0.2877

5

FCA US Fixed Warranty Targets

The targets have now been reestablished and will be reflected in

the June EBSC and 7 MIS SAWRP data.

• Be aware that when reviewing your warranty results in SAWRP and EBSC

that there is a one month lag, EBSC follows SAWRP by one month.

The 2016 Model Year targets were established using

Warranty Information System (WIS) data harvested in

December of 2015.

Midyear Tune Up of Warranty Targets

67/8/2016

77/8/2016

Enhanced Focus on Warranty Reduction

Top 100 Suppliers - Executive Sponsor Implementation

87/8/2016

Top 100: Supplier Claims Manufacturing Locations

Cla

ims

2016 Initiative:

Concentrate on the

few, significant

contributors

Highest Contributing Supplier Associated Claims

Supplier Manufacturing Locations

97/8/2016

Top 100: Year-over-Year Contribution

Recurring Top 100 Supply Base

Top 100 Recurring Suppliers Other

20%15%

100% 85% 80%

Top 100 supplier locations identified as top warranty claim

contributors consecutively over the past three years

107/8/2016

2016 Top 100 Warranty Claim Reduction Goal

• Each supplier location was provided an individual warranty reduction

goal/ percentage

o Modified by accounting for mix new product and know spills

Goal Summary

30%REDUCE BY

• Supplier Quality Engineers are being provided aggressive targets

• Providing warranty tools and additional support

2015 Total Warranty

Score *

*Additional measures may be applied depending on current or planned business

CLAIM BASED

117/8/2016

Missed Warranty Reduction Opportunities

Pilot Findings:

ADC – Adjoining Component or

System Issue

NTF – No Trouble Found

DDI – FCA Dealer Issue

No Assignable Cause - Opportunity

Even “TS certified” and CQI-14 compliant suppliers demonstrated

significant untapped warranty reduction opportunity

17%

25%

25%67% of Claims Remain

Unaddressed

127/8/2016

FCA Ownership of Warranty Reduction

Improve Internal to Better Support External

EDUCATION

• Sharing lessons learned

• Reviewing examples &

practicing read across

• Providing in-depth warranty

training

137/8/2016

Our Tools

Enhanced Warranty Management

PLAYBOOK

• Practical tools that supplement

the CQI-14 manual

• Resources used to better equip

SQEs in identifying and resolving

warranty issues

147/8/2016

Warranty Reduction Pilot Program

Pilot Action:

Pilot conducted with 22 focused suppliers

Implementation of CQI-14 “Automotive Warranty Management: A guideline

for Industry Best Practices”

CQI – 14 OBJECTIVE

1. Promote advances in consumer

satisfaction

2. Provide continuous warranty

improvement

3. Implement robust warranty

management programs

Organizations shall use CQI-14: Automotive

Warranty Management, 3rd Edition to

integrate warranty into their quality

management system.

157/8/2016

Playbook Overview

Simplified Warranty Reduction

1. How to utilize fundamental warranty systems to attack unresolved

warranty issues, and prevent warranty spikes

• Highlights the differences between EWT, PRAS and WIS

• Demonstrates how to use systems together for best results

2. How to pull and categorize warranty data

• Offers a uniform way to pull data from EWT - capturing all supplier claims

• Describes different parameters which can help suppliers sort and filter data

3. Detailed warranty category classifications with solving steps

• Resolution strategies for each category of warranty claim

(DDI, ADC, and NTF)

4. Complete list of warranty tools with descriptions and system links

• One stop shop for suppliers and SQEs

• Better understand the tools available and their application

167/8/2016

Warranty Training Concentration

SQ Warranty Focus Across the Board

Sharing lessons learned & best

practices

Identified warranty concerns are read

across department wide

Quarterly training sessions highlighting the

application of CQI-14

SAWRP process and methodology

Applied systems and tools functionality

177/8/2016

Aggressive and Timely Targets

Warranty Measurement Tools

Internal Targets

• Setting aggressive warranty

reduction targets

• Focusing on the significant

claim contributing suppliers

187/8/2016

Knowledge

Improve Internal to Better Support External

SUPPORT

• Identified support from

leadership company-wide

• Collaborating efforts from

Purchasing, Supplier Quality,

Manufacturing and Engineering

197/8/2016

Executive Sponsor Top 100 Program

• Conduct a review at supplier location during 2016

• Attend top parent supplier meetings with FCA Leadership

• Attend monthly FCA SQ team performance reviews

• Assist with removing roadblocks

Sponsor Responsibilities

1. February 22nd – Top 100 Warranty Reduction Supplier Town Hall

2. Provided all supplier locations warranty envelope containing:

• 2015 MY Cost and Condition Count Totals & Top 100 Rank

• 2016 Warranty Reduction Target

• FCA US Contacts & Executive Sponsor

2016 Warranty Reduction Kick-Off

207/8/2016

Recent Warranty / Dealer Initiatives

217/8/2016

Changing the “Not Me” Mindset

Playbook Tools - Problem Resolution

NTFNo Trouble

Found

Needs Team Focus

NTF

Join. Engage. Advance.

PRESENTATION

Warranty Sub-Group Report Out

7

Join. Engage. Advance.

AGENDA

Lunch & Networking

8

Join. Engage. Advance.

PRESENTATION

Warranty influences on new TS16949 Draft

Michael Hirt

Quality Manager- Warranty

ADAC Automotive

9

Warranty influences on new TS16949 Draft

Michael Hirt

Quality Manager- Warranty

ADAC Automotive

Warranty Influence on TS-16949 Revision

IATF News Release

April 2016Strategy and draft on new standard to ISO 9001:2015

May & June 2016Pilot gap assessments

Finalize standard and associated rules

December 2016Target Release

Requirements for Safety Related parts and processes.

Enhanced product traceability

Warranty Management Process:

Addressing NTF (no trouble found)

Use of automotive industry Guidance

Read as CQI-14 v3

VDA Field Failure Analysis.

Clarification of Sub-tier Supplier Management

Feed back from representatives of:

• Certification bodies

• 41 Global Suppliers

• IATF Member Organizations

• Witness Auditors

QMS Standard and Transition Plan

Currently is the beginning stages of Pilot assessments at select suppliers in all regions.

By end of 3rd Quarter, announcement of available training.

CB Auditors should be trained by early 2017.

Warranty Influences

• Seeing a High Emphasis in Product Realization

– Minimize some of the Risks

– Extend Resources or Additional Resources

• Sub Tier Supplier requirements throughout

– More direct influence on sub tier responsibilities and Management, including directed suppliers

The new Standard

Context of the organization

Context of the organization

4.1 Understanding the organization and its context

4.2 Understanding the needs and expectations of interested parties

4.3 Determining the scope of the quality management system

4.4 Quality management system and its processes

Needs & expectations of "Interested Parties"

• Expanded what organizations or "interested parties" or suppliers, customers, owners shall be considered in the Quality Management System (QMS) and Mgt. review

Product Safety

• Documented management process for product-safety-related products and processes, notification of applicable statutory and regulatory requirements to customers

• Safety related products currently or in the future.

– Knowing what is going on now with your competitor products.

Outsourced Processes

• Type and extent of control over outsourced supplier QMS

• Additional burden to verify these outsourced suppliers conformance to requirements on continual basis

Leadership

Leadership

5.1 Leadership and commitment

5.1.1 General

5.1.2 Customer Focus

5.2 Policy

5.2.1 Establishing the Quality policy

5.2.2 Communicating the quality policy

5.3 Organizational roles, responsibilities and authorities

Roles, Responsibilities and Authorities

• Assign personnel with responsibility and authority to ensure customer requirements are met.

CQI-14 V3

1. Management Introduction to Warranty / Establishing the Baseline

Conformity to Product Requirements and Corrective Actions

• Mgt. shall ensure personnel ensures non-conforming product is not shipped, authorization of relevant personnel are documented

Planning

Planning

6.1 Actions to address risks and opportunities

6.2 Quality objectives and planning to achieve them

6.3 Planning for change

Risk Analysis

• Continual risk analysis of recalls, campaigns - rework is not currently traced

• Severity*Occurrence= Risk: FMEA! Documentation of "continuous" risk analysis.

• FMEA’s are the risk to product. Standard also requires Risk to System.

Customer Risk Identification

FMEA Ford

10. Hazardous w/o warning Failure to meet 5 Management Assistance needed

9. Hazardous with warning safety/regulations

8. Very High Loss or degradation

3SignificantMajority of issues fall into this catigory

7. High of primary function

6. Moderate

5. Low Loss or degradation

4. Very Low of secondary function

3. Minor Annoyance

1Minorexample: mistagged part2. Very Minor

1. None No Effect

Customer Risk Identification

GM PRR and PRTS FCA GIMS Severity

S- Potential Safety Safety compliance and/or Safety regulatory Criteria

High

100% of customers for that class of vehicle would notice the condition and evaluate it as “Unacceptable” and refuse delivery.

1- Potential Walk HomePotential Walk home or no build (potential or actual. Non Safety

Medium

50% of customers for that class of vehicle would notice the condition and evaluate it as “Annoying” and would desire for immediate repair.

2- Customer Satisfaction IssueIncludes potential issue or major build concern that creates excessive impact

Low

50% of customers for that class of vehicle would notice the condition and evaluate it as “Annoying” and would desire for immediate repair.

3-Moderate build concernNo customer Impact. Moderate impact

Each includes Customer, Manufacturing, DMA, and Regulatory Based Examples

Organization Risk Identification

• You as suppliers, Organization, need to:

– Identify how you will define risk

– Establish who will review Risk

– Define process for addressing Risk

Quality Objectives and Planning

• Top Mgt. Shall ensure quality objectives that are needed to customer-specific requirements are maintained through organization

CQI-14 V3

1. Management Introduction to Warranty / Establishing the Baseline

Support

Support

7.1 Resources

7.1.1 General

7.1.2 People

7.1.3 Infrastructure

7.1.4 Environment for the operation of processes

7.1.5 Monitoring and measuring resources

7.1.5.1 General

7.1.5.2 Measurement traceability

7.1.6 Organizational knowledge

7.2 Competence

7.3 Awareness

7.4 Communication

7.5 Documented Information

7.5.1 General

7.5.2 Creating and updating

7.5.3 Control of documented information

Training (competence)

• Awareness of customer requirements - knowledge of own QMS and implications of nonconformance for all personnel affecting conformity to customers Requirements

• Documented training to customer specific requirements.

• Broad knowledge of CSR's realistic?

Awareness

• The organization shall evaluate extent personnel are aware of relevancy, importance and how their activities contribute to quality

• How to evaluate awareness?

Quality Manual

Still Required in TS Standard

• The Organizational Context enables a more effective implementation of the Quality Management System

• Alignment with the Strategic Direction

• Integration of QMS into Organizations Business Process

Engineering Specifications

• Documented process to ensure review, distribution and implementation of all customer engineering specifications.

• process agreed to by customer - organization shall retain record of date of each change implemented in production -change in specification requires update of customer PPAP approval if pertains to design record, control plans, FMEA's, etc.

• Review within 2 weeks of receipt.

Operations

Operations

Development

8.1 Operation planning and control

8.2 Requirements for products and services

8.2.1 Customer communication

8.2.2 Determining the requirements for products and services

8.2.3 Review of the requirements for products and services

8.2.4 Changes to requirements for products and services

8.3 Design and development of products and services

8.3.1 General

8.3.2 Design and development planning

8.3.3 Design and Development inputs

8.3.4 Design and development controls

8.3.5 Design and Development outputs

8.3.6 Design and Development changes Operations

Suppliers

8.4 Control of externally provided processes, products and services

8.4.1 General

8.4.2 Type and extent of control

8.4.2 Information for external providers Operations

8.5 Production and Service provision Manufacturing

8.5.1 Control of production and service provision

8.5.2 Identification and traceability

8.5.3 Property belonging to customers or external providers

8.5.4 Preservation

8.5.5 Post-delivery activities

8.5.6 Control of change

8.6 Release of products and services

8.7 Control of nonconforming outputs

Operations- Development

Operations

Development

8.1 Operation planning and control

8.2 Requirements for products and services

8.2.1 Customer communication

8.2.2 Determining the requirements for products and services

8.2.3 Review of the requirements for products and services

8.2.4 Changes to requirements for products and services

8.3 Design and development of products and services

8.3.1 General

8.3.2 Design and development planning

8.3.3 Design and Development inputs

8.3.4 Design and development controls

8.3.5 Design and Development outputs

8.3.6 Design and Development changes

Development Customer Communications - Training

• Personnel responsible for customer communications - must complete customer-specific training for communications requirements (EDI, portal activities, corrective actions, logistics, etc.)

Development- Multidisciplinary approach

• collaborative design activities such as "trade-off studies" for alternative designs, evidence of multidisciplinary activity

• Documented consideration of alternative designs, including suppliers and maintenance inputs

Development Product design Inputs

• inputs shall include: consideration of alternative designs, previous design projects, benchmarking of competitors product, field data, etc.

• Documentation of input activity? Alternative designs? Benchmarking? DRB-FM as input

Development- Design and Development Outputs

• Design output shall include: DFMEA and reliability study, 3D models and GD&T and service diagnostic guidelines and repair and serviceability instructions

• Reliability studies, GD&T, diagnostic and service considerations required

Development- Design and Development changes

• Ensure all design changes during program life including suppliers have evidence of customer approval or signed waiver prior to implementation

• Documentation evidence, impact on internal changes

Operations- Suppliers

Operations

Suppliers

8.4 Control of externally provided processes, products and services

8.4.1 General

8.4.2 Type and extent of control

8.4.2 Information for external providers

8.5 Production and Service provision

Suppliers Supplier selection process

• Defined supplier selection process

Suppliers Customer-directed sources

• All requirements are applicable to organization's control of customer-directed sources unless otherwise contractually specified customer

• Increases risk due to supplier that we have limited control over, need to contractually limit responsibility / liability when working with directed source supplier

Suppliers Statutory and Regulatory requirements

• Defined actions and methodologies to ensure conformance to current applicable statutory and regulatory requirements by country of receipt, country of shipment and customer identified country of destination

• Documentation of compliance: How to do this and know all country of destination? In Customer’s. SOR.

Suppliers Supplier QMS development

• The organization should require compliance to minimum Automotive QMS for sub-tier suppliers as further step beyond compliance with, or ISO 9001 certification

• Verify supplier's QMS effectiveness when supplier scope changes (processes, organization structure, capacity) - third party ISO/TS16949Rev1 by IATF recognized certification body is acceptable

• ISO 9001 is no longer going to be adequate, need to encourage supplier development to TS16949

Operations- Manufacturing

Operations

Manufacturing

8.5.1 Control of production and service provision

8.5.2 Identification and traceability

8.5.3 Property belonging to customers or external providers

8.5.4 Preservation

8.5.5 Post-delivery activities

8.5.6 Control of change

8.6 Release of products and services

8.7 Control of nonconforming outputs

Manufacturing Identification and Traceability

• Shall conduct analysis of internal, customer and regulatory traceability requirements.

• develop strategies and document based on risk levels of employees, customers and consumers - retain documented information that supports the response times requirements (customer or regulatory)

Manufacturing Change Control

• Evidence of risk analysis - shall notify customers of planned changes

• No changes allowed until documented customer agreement obtained.

Manufacturing Control of Reworked product

• FMEA methodology to assess risk - shall have process documented for repair in accordance with control plan or documented procedure to ensure compliance to original spec.

Manufacturing Supplier QMS

• Organization's suppliers to implement "Automotive" QMS standard, ISO 9001 a minimum requirement - periodic second party audits if supplier is not TS16949 rev1 compliant

Manufacturing Supplier Monitoring

• organization shall define a process and criteria to evaluate suppliers performance in meeting external customer requirements

• Link to external customer requirements that includes warranty, campaigns and other disruptions in measure of supplier's performance

Manufacturing Information for external providers

• Shall pass down all applicable statutory, regulatory and special product and processes characteristics to their suppliers.

• cascade to point of manufacture.

Manufacturing Feedback of information from service

• includes material handling and logistics feedback, organization's awareness of nonconforming products and material(s) - "service concerns" including field failure test analysis as applicable

• Documentation of this activity to indicate compliance?

Manufacturing Statutory and Regulatory conformity

• Shall confirm and provide evidence that externally provider conforms to latest applicable statutory, regulatory and other requirements in the country of manufacture and in customer designated countries of destinations

Performance Evaluation

Performance evaluation

9.1 Monitoring, measurement, analysis and evaluation

9.1.1 General

9.1.2. Customer satisfaction

9.1.3 Analysis and evaluation

9.2 Internal Audit

9.3 Management review

9.3.1 General

9.3.2 Management review inputs

9.3.3 Management review outputs

Monitoring and measurement of the manufacturing processes

• requirements that actual test results are recorded for variable data and the simple pass/fail records are not acceptable

Performance Evaluation Customer Satisfaction -supplemental

• Monitor internal and external indicators to ensure compliance of product and processes to specifications and other customer requirements

– including warranty and field actions,

– customer notifications related to Quality or delivery issues

– Internal Audits

Performance Evaluation Manufacturing process audits

– And associated support processes - determine effectiveness and efficiency using customer-specified required approaches to audits

– Results of Customer Specified Assessments

• CQI-14 Automotive Warranty Management

• CQI-XX Special Process Assessments

• Customer Specific Assessments

Management review Inputs

• Includes customer warranty performance

CQI-14 V3

9. Effectiveness Assessment

Improvement

Improvement

10.1 General

10.2 Non conformity and corrective action

10.3 Continual improvement

Improvement Warranty Management

• Shall implement a warranty management process using existing VDA and AIAG standards

• VDA Volumes: "Field failure analysis" & "Audit standard field failure analysis"

• AIAG CQI-14 "Automotive Warranty Management Guideline"

Improvement Customer Complaints and Field failure test analysis

• Shall perform analysis on all field failures and complaints and initiate corrective actions

– May be issue when we do sampling instead of 100% analysis given potential number of returns

Improvement Continual Improvement of the Organization

• Measurement of effectiveness of continuous improvement process - Includes "evaluation and potential update of FMEAs"

Reference Documents

AIAG

• APQP Advanced Quality Planning

• FMEA Manual

• PPAP Manual

• CQI-19 Sub Tier Supplier

• CQI-8 Layered Process Audit

• SPC Statistical Process Control

• CQI-14 Automotive Warranty Management

• Specific AIAG Process Assessments

VDA

• Volume 4 FMEA.– Note VDA and AIAG team

• Field Failure Analysis

• Audit standard Field Failure analysis.

What Questions can WE answer Together

Join. Engage. Advance.

AGENDA

Focused Roundtable:

• GM PartsLink Training Feedback

• GM Engine/Transmission Warranty Teardown

Communication

10

Join. Engage. Advance.

AGENDA

Council Roundtable

Moderator: Michael Hirt, Quality Manager-Warranty, ADAC

Automotive

11

Join. Engage. Advance.

FEEDBACK & ADJOURNMENT

OESA Warranty Management Council Next Meeting:

September 8, 2016

OESA WMC 2016 Meeting Schedule: December 15, 2016

12

Join. Engage. Advance.

Join. Engage. Advance.

OESA WARRANTY MANAGEMENT

COUNCIL MEETINGMarch 31, 2016 @ OESA Conference Center

OESA Wifi Network: OESA Guest Password: oesaGuests!