Third Edition January 2014

Third Edition
January 2014
INTRODUCTION
The Quality Challenge
Every day at VOLVO, we are working to improve our organization, our processes and the skill of our
employees to be the best in class. We are committed to quality excellence, a customer-focused
process approach and continuous improvement. We expect and encourage our suppliers to adopt
these same principles and practices.
The mission of VOLVO Purchasing is to provide a competitive advantage to our organization and our
customers through the selection, development and partnership with suppliers that are capable of
exceptional performance. VOLVO is actively seeking to attract suppliers that are capable of delivering
superior products in terms of quality, delivery, price and features.
In support of our strategy, this manual describes the sourcing process used to identify and select
suppliers that share the VOLVO “Drive for Quality”. This manual also covers the expectations,
requirements, guidelines and practices expected of suppliers doing business with VOLVO.
Once selected, our goal is to work closely with these suppliers to develop a strong, stable, structured
relationship.
We expect a commitment from our suppliers to achieving a ZERO DEFECT APPROACH.
Suppliers demonstrate this commitment through:
 Delivering fully conforming parts and products
 On time delivery
 Rigorous adherence to approved processes and requirements
 Pro-active risk management
VOLVO products have always been characterised by quality and safety. Maintaining the reputation of
selling the highest quality and safest products in the market is a must for us. We expect suppliers to
contribute to maintaining this reputation by the care they invest in the parts they produce and deliver.
VOLVO suppliers are expected to extend the requirements in this manual to their suppliers and assume
responsibility to ensure that quality is consistent through their supply chain.
This document is intended to serve as a reference document and a guide to understanding VOLVO
specific requirements and the responsibility shared by our suppliers in ensuring products that meet
consistently high standards for quality and safety.
With your commitment to participate as a VOLVO supplier, we will succeed in our mission to our
customers and at the same time begin a long term and mutually beneficial relationship.
Patrik Lundblad
Senior Vice President
Volvo Group Purchasing
Martin Ranäng
Vice President Supplier Quality
Volvo Group Purchasing
Abdennasseur Abouayoub
Vice President Global
Volvo Bus Purchasing
Page 2 of 44
Table of Contents
INTRODUCTION…………………………………………………………..……….2
TABLE OF CONTENTS………………………………………………..………….3
USING THIS DOCUMENT……………………………………………..………….4
BASIC REQUIREMENTS………………………………………………..….…….5
PERFORMANCE EXPECTATIONS………………………………… 6
MANAGEMENT SYSTEM REQUIREMENTS……………………… 7
SOURCING……………………………………………………………………........8
MANAGEMENT SYSTEM REQUIREMENT………………………… 9
SHORT SUPPLIER EVALUATION MODEL………………………… 9
CONFIDENTIALITY AGREEMENT…………………………………… 9
REQUEST FOR QUOTATION……………………………………..… 9
SUPPLIER EVALUATION MODEL…………………………………… 10
INDEX AUDITS………………………………………………………… 10
FINAL AGREEMENT……………………………………………………. 10
ADVANCED PRODUCT QUALITY PLANNING………………………..………11
SCOPE…………………………………………………………………… 12
APQP – PLANNING…………………………………………………… 12
RESPONSIBILITIES IN APQP………………………………………… 12
KEY COMPONENT DEFINITION……………………………………… 13
APQP REVIEWS………………………………………………………… 13
SOFTWARE APQP REQUIREMENTS……………………………… 14
PRODUCTION PART APPROVAL PROCESS…………………….....……….15
REFERENCE……………………………………………………………
PROCESS………………………………………………………………
SIGNIFICANT PRODUCTION RUN…………………………………
DOCUMENTATION REQUIREMENTS………………………………
PRODUCT PROCESS CHANGE NOTICE…………………………
16
16
17
18
18
VOLVO SPECIFIC REQUIREMENTS……………………………………..……20
REVIEW OF TECHNICAL SPECIFICATIONS……………………… 21
PRODUCT APPLICATION AGREEMENT…………………………… 21
PART HANDLING REVIEW…………………………………………… 22
SPECIAL CHARACTERISTICS…………………………………….… 22
CONFORMITY OF PRODUCTION…………………………………… 23
CLEANLINESS REQUIREMENTS…………………………………… 24
PROTOTYPE PARTS………………………………………………… 24
PRE-LAUNCH CONTROL PLANS…………………………………… 25
SAFETY MANAGEMENT…………………………………………….…………..26
RESPONSIBILITY……………………………………………………… 27
IDENTIFICATION OF SAFETY CHARACTERISTICS……………… 27
PRODUCTION REQUIREMENTS………………………………….… 27
SAFETY MANAGEMENT AUDITS…………………………………… 28
LOT TRACEABILITY REQUIREMENTS……………………………… 29
PASS THROUGH PART REQUIREMENTS……………….………… 29
PRODUCTION REQUIREMENTS……………………………………………….31
REQUESTING DEVIATIONS…………………………………………. 32
LOT TRACEABILITY…………………………………………………… 32
FIRST IN FIRST OUT CONTROL…………………………………… 32
SUB-TIER SUPPLIER REQUIREMENTS……………..……….…… 32
PACKAGING……………………………………………….…………… 33
WARRANTY………………………………………………………….… 33
SERVICE PART REQUIREMENTS……………………………….…. 33
LABORATORY REQUIREMENTS…………………………………… 33
RECORD RETENTION…………………………………………………. 34
PERFORMANCE MEASUREMENT AND CORRECTIVE ACTION…………35
MANAGEING NONCONFORMING PARTS …………………….…. 36
SCORE CARD PRESENTATION ……………………………………. 37
QUALITY PERFORMANCE MEASUREMENT …………..………… 38
DELIVERY PRECISION ……………………………………………… 40
THE VOLVO PROCESS AUDIT …………………………….………. 40
CONTINUOUS IMPROVEMENT ……………………………......….… 40
LOW PERFORMING SUPPLIER …………………………………… 41
GLOSSARY OF TERMS……………………………………………………….…42
REVISION RECORD…………………………………………………………...… 43
SECTION 0.0
USING THIS DOCUMENT
0.1 ORGANIZATION
This document defines the expectations and working procedures intended to assist suppliers in achieving
and maintaining a successful working business relationship with VOLVO. This document is organized in
chapters related to our main processes.
Basic
Requirements
Sourcing
APQP
PPAP
VOLVO Specific
Requirements
Safety
Management
Production
Requirements
Managing
Performance
0.2 KEY ELEMENT PROCEDURES
In addition to this supplier manual, VOLVO maintains a set of procedures that define specific requirements
and expectations in key areas. These Key Element Procedures cover VOLVO requirements related to
environment, logistics, corporate social responsibility, and cost management. Suppliers should consider the
Key Elements Procedures as part of this document. The Key Element Procedures are available on the
supplier portal.
0.3 THE VOLVO SUPPLIER PORTAL
VOLVO maintains an internet portal that allows suppliers to access current documents and news regarding
changes that may impact them. Suppliers are responsible to apply for access to the VOLVO Supplier Portal
by contacting the host buyer or Supplier Quality Engineer. Suppliers are also responsible for maintaining the
contact information for key individuals in their organization. The latest version of this Supplier Quality
Assurance Manual is available in the Quality Section within the E-Library.
http://supplierportal.volvo.com/vsp/ap/en/E-Library/Quality/3P_SQA_Manual/
Additional guidelines, communication kits, and templates are posted in the quality section of this E-library.
0.4 GUIDE TO SYMBOLS USED IN THIS DOCUMENTS
Text in frame boxes provides an
overview of the information in the
section and may be used as a quick
reference.
MANDATORY REQUIREMENTS ARE
HIGHLIGHTED IN THIS FORMAT
0.5 SUPPLIER FEEDBACK
Feedback concerning this document is welcomed and encouraged. Any suggestions, including suggestions
for additional information or improvements to this document, should be emailed to: [email protected]
To simplify the text:
The word VOLVO refers to VOLVO Truck, Mack Trucks, Renault Trucks, VOLVO Buses, Prevost, Novabus,
UD Trucks, Eicher VECV, and Renault Trucks Defense. VEHICLE refers to both trucks or busses.
Page 4 of 44
SECTION 1.0
BASIC REQUIREMENTS
Performance Expectations and
Management Requirements
Performance
RESULTS
Processes
OUR ATTITUDE: Never satisfied,
Let nothing happen by chance,
striving for ZERO defect performance
Supplying products to the vehicle Industry is a
very demanding business. It requires the
ability to mass produce complex assemblies
employing state of the art technologies. To
achieve this level of performance, the vehicle
industry and their suppliers have developed
specialized processes and systems to support
the demands of this type of production while
delivering high levels of quality expected by
the vehicle customer.
VOLVO has adopted these quality processes
and systems, and successful application by
our suppliers is key to our shared success.
The success of our performance is
determined by the final customer. These
customers are the businesses and people
who rely every day on safe, reliable
transportation solutions.
We believe that achieving this level of quality
and reliability can only be achieved by robust
processes and rigorous monitoring.
This requires a Customer focus mind set, a
continuing search for effective solutions, and
opportunities for continuous improvement.
SECTION 1.0
1.1 PERFORMANCE EXPECTATIONS
1.1.1 The table below defines the target performance levels for VOLVO suppliers. Our desire is that all
suppliers strive to meet and exceed these target values. All suppliers are expected to adopt a Zero Defect
mind set and continuously strive to achieve the goal of Zero Defects.
For specific products, additional part specific targets may be defined in the Request for Quotation.
MEASUREMENT
Parts Per Million
Zero Kilometre Non-conformances
Calculated on a monthly and three month
rolling average.
Quality Performance Measurement
(QPM)
TARGET
Expected
Zero Defect*
Below 40
For scoring explanation, see section on
“PERFORMANCE”
Safety features – 0%
Fault Frequency
Common components – below 0.005%
Warranty Claims per vehicle within the
first 12 months of service.
Fasteners, brackets, etc – below 0.0005%
Additional fault frequency targets may be specified
in the part specific Technical Requirements.
Service campaign
The number of vehicle recalls due to
reliability/warranty problems.
Safety recall
0
0
Number of vehicles recalled due to Safety concerns.
Delivery Precision
98% as a minimum requirement.
Percentage of parts delivered on time divided
by the total delivered.
100% For delivery in sequence.
*Actual targets for a supplier may be modified based on commodity, product technology, function
or part criticality. Exceptions must be documented in a Long Term Agreement, contract or PPM
contract.
Page 6 of 44
SECTION 1.0
1.2 MANAGEMENT SYSTEMS REQUIREMENTS
Area
Required Level
Reference Documents
Quality system
ISO/TS16949
Current Certificate
Environmental system
ISO 14001:2004
Current Certificate
VOLVO Environmental selfassessment
Supplier Evaluation Model
(SEM)
Preferred greater than 90%
Acceptable over 60%
No stopping parameters
Product Safety Management
Program
(Applies to suppliers of safety
critical components)
Approved greater than 90%
Conditional greater than 60%
No stopping parameters
Safety Management Audit
Documentation
Index Audit
(Applies to suppliers of Index
related processes*)
Score over 60%
No stopping parameters
Index Audit section of this
manual
VOLVO Customer Specific
Requirements
Customer Specific
Compliance to RTS, COP, PAA, PHR Requirements section of this
manual
Software
(Software Suppliers)
SPICE level 3
Statement of Work
Current certificate or equivalent by an
accredited 3rd party
Ethics
Logistic evaluation
EDI
Key Element Procedure
5 - Environmental
Requirements
Key Element Procedure
1 – General
Key Element Procedure
Corporate Social Responsibility Self6 - Corporate Social
assessment
Responsibility
Key Element Procedure
MMOG self-assessment level A
7 - Logistic
Key Element Procedure
100% Electronic communication
1 – General
7 - Logistic
*Index Audits
 Casting (Ferrous and Aluminum)
 Metallurgy (Heat Treat and Forging)
 Polymers (Plastic and Rubber)
 Electronics
 Surface Treatment
 Software
Key Element Procedures are available on the supplier portal at the following location:
http://www.volvogroup.com/suppliers/global/engb/supplierselection/ourrequirements/keyelements/Pages/KeyElementProcedures.aspx
Page 7 of 44
SECTION 2.0
SOURCING
Join the VOLVO Team
Business
Award
Enter Supply
Base
Management
System
Requirements
Short
SEM
Confidentiality
Agreement
The awarding of business to a supplier is one
of the most important decisions made by
VOLVO Purchasing. It directly impacts our
ability to deliver to their customers, remain
competitive and deliver future developments
through projects.
The VOLVO Global Sourcing Process is
designed to ensure that all divisions of
VOLVO have the opportunity to contribute to
the selection process and ensures the
coordination of these decisions across all
VOLVO locations.
It’s the first step in building a strong
relationship between VOLVO and our
suppliers.
Request
for
Quote
SEM
Index
Audit
Sign
Contracts, &
Agreements
Suppliers have an important role to play in
the selection process.
 Actively participating in evaluation
audits performed by VOLVO.
 Demonstrating their capability to
achieve future quality results.
 Responding to action plans to reach
the requested level.
The following chapter explains the main
steps in the process required to become a
VOLVO supplier.
In this section the
information that suppliers can expect to
receive and the evaluations that are
required are further defined.
Page 8 of 44
SECTION 2.0
2.1 MANAGEMENT SYSTEM REQUIREMENTS
2.1.1 All potential suppliers must have a quality system compliant to ISO/TS 16949 and an Environmental
Management system compliant to ISO 14001 in place, functioning and approved by a third party registrar.
2.2 SHORT SUPPLIER EVALUATION MODEL
2.2.1 Potential suppliers may be requested to complete the Short Supplier Evaluation Model (SSEM). A copy
of the SSEM is available on line at:
http://www.volvogroup.com/suppliers/global/engb/supplierselection/supplierevaluation/Pages/selectioncriterias.aspx
2.2.2 Potential suppliers can access this site, complete the short SEM and submit it to VOLVO purchasing for
consideration. This site is a public site and does not require VOLVO granted access.
The short version of Supplier Evaluation
Model provides a simple way for potential
suppliers to share their standards and
capabilities with VOLVO.
2.2.3 Typically the first formal contact with a supplier
will be a Request for Information (RFI). At that time
suppliers may be requested to complete the Short
Supplier Evaluation Model (SSEM).
2.2.4 This evaluation collects general data about the company, its products and capabilities. Specific quality
topics included in the short SEM are:




Quality Systems: Application and certification by an accredited third party to the ISO/TS 16949
Quality Management System and ISO-14001 Environmental Management System.
Quality Planning: Well organized approach to quality planning including the use of quality methods
like Advanced Product Quality Planning (APQP), and Failure Mode & Effects Analysis (FMEA).
Quality Performance: Past performance in quality, reliability and deliveries. Performance targets will
be established based on past performance and industry best practices.
Reliability:
Practices in place for verification and validation testing that ensures their products will
meet the minimum useful life expectations.
Other requirements:
 Information regarding specific requirements related to environment, corporate and social responsibility,
cost reduction can be found in the Key Element procedures on the supplier portal.
2.2.5 Current suppliers to VOLVO that have not participated in a recent evaluation may be requested to
complete a Short SEM or participate in a normal on-site SEM prior to the award of additional business.
VOLVO routinely monitors all current suppliers’ based on their performance as measured in the Supplier
Scorecard (PPM, QPM, recent audit scores, Inspection Reports, Low performing Supplier status, etc.).
Based on these results, VOLVO may request a new short SEM be completed or request further evaluation
audits.
2.3 SIGN THE CONFIDENTIALITY AGREEMENT
2.3.1 VOLVO realizes that maintaining an effective supplier/customer relationship may require sharing
information, communications, data or technology that is sensitive in nature. Before receiving a Request for
Quotation (RFQ), suppliers are required to sign and return a confidentiality agreement. The supplier shall
treat all information and data related to the business relationship with VOLVO in strict confidence
and report any intentional or non-intentional breach of confidentiality to VOLVO management. The
Confidentiality Agreement template will be sent by the buyer.
2.4 REQUEST FOR QUOTATION (RFQ)
2.4.1 To be considered for business, suppliers must fully address each section of the RFQ and include all of
the requested supporting documents when responding. This includes, but is not limited to a preliminary
Advanced Product Quality Plan (APQP), Review of Technical Specification (RTS), Statement of Work (if
Page 9 of 44
SECTION 2.0
requested) and all documents needed to support and justify the information in the RFQ response.
2.4.2 The quality requirements and targets are highlighted in the quality section of the RFQ. Suppliers are
expected to be able to fulfill all quality requirements. VOLVO may audit the evidence related to the fulfillment
of these quality requirements. In the event there are requirements that cannot be fulfilled, suppliers may be
required to develop and submit an action plan with the returned RFQ. Suppliers are responsible for all costs
associated with the fulfilment of the quality requirements. Some of these requirements may require testing at
Volvo approved testing facilities. These costs should be included in all RFQ responses.
2.5 THE SUPPLIER EVALUATION MODEL (SEM)
2.5.1 The VOLVO SEM has been developed using its
history of working with suppliers, lessons learned and
“Best in Class” practices. This audit normally takes two to
three days, depending on the size of the organization and
is required for each supplier manufacturing location that
will be shipping to a VOLVO site.
The VOLVO SEM is the primary tool for the
evaluation and selection of suppliers. The
audit is designed to provide a broad,
overview picture of the supplier’s
organization. The SEM is an on-site faceto-face evaluation of
a supplier’s
capabilities and preparedness.
2.5.2 Suppliers must achieve a minimum score of 60%
and achieve an acceptable score on all “Stopping
Parameters”. The SEM audit is based on the evaluation of 11 criteria:




Company Profile
Management
Environment
Quality




Logistics
After-market
Competence
Product development
 Finance
 Productivity
 Sourcing
SUCCESSFUL COMPLETION OF THE SEM AUDIT IS REQUIRED
FOR THE AWARD OF VOLVO BUSINESS
2.6 INDEX AUDIT
VOLVO has developed a group of technology-based
process audits (Index Audits). Index audits focus on
production processes that use technology considered
critical to the function of the products. For suppliers in
the specific technology areas, the Index Audit is a
requirement for award of business. The Index Audit
may also be used as part of process improvement
activity or to investigate severe quality problems.
2.6.1 VOLVO requires all new suppliers,
sub-suppliers and sub-contractors using
the processes included in the list of
technologies
to
have
an
Index
assessment of their production process
prior to supplier selection in the sourcing
process.
2.6.2 Current suppliers, who provide
products covered by any of the technologies listed below, but have not had an Index Audit assessment,
should contact the responsible buyer host to arrange an audit. The Index Audit results are a major
consideration in the sourcing decision process. The scoring of the Index Audit is similar to the scoring
process used for the SEM or general Process Audit. Regardless of the score, suppliers are expected to
work aggressively to address any concerns or action items identified during the audit.
Current Index Technologies:
 Casting (Ferrous and aluminium)
 Metallurgy (Forging, heat
treatment)
 Polymers (Plastic and Rubber)




Surface Treatment
Software
Safety
Electronics
2.7 FINAL AGREEMENT
2.7.1 Once the supplier is selected, the Purchasing Agreement and Warranty Charter must be signed and
returned to VOLVO. Templates for these agreements are available in the Request for Quotation package.
Page 10 of 44
SECTION 3.0
ADVANCED PRODUCT QUALITY
PLANNING (APQP)
Driving Quality
Scope
Planning
Key
Components
Staying competitive in the markets where
VOLVO participates requires continuous
development of new products and regular
improvements to existing product.
Supporting the introduction of new products
requires a well-defined and organized
process for project planning and launch.
VOLVO
organizes
all
new
product
introductions into projects. Suppliers are
required to have an effective project planning
process that is capable of supporting the
VOLVO process and timing for project
management.
Responsibilities
APQP
Reviews
Software
APQP
In 2006, VOLVO adopted the AIAG guideline
for APQP as the standard planning method for
suppliers bringing products to production.
Suppliers are expected to develop a detailed
Advanced Product Quality Plan for the
development and prove-out of processes used
to produce VOLVO products.
The
following
chapter
describes
the
expectations
related
to
APQP
and
requirements for synchronizing the plan with
the VOLVO Global Development Process
(GDP).
Page 11 of 44
SECTION 3.0
3.1 SCOPE
VOLVO requires suppliers to use
Advanced Product Quality Planning
(APQP) as a tool to support process
development, integration and proveout. The AIAG publication “Advanced
Product Quality Planning (APQP) and
Control Plan” should be used as a
reference in developing these plans.
Supplier’s plans should include
VOLVO specific requirements.
3.1.1 We believe that the ultimate quality of delivered
parts is determined during the design and development
phase of the production process.
VOLVO expects suppliers to create product launch
plans to support:
 Launch of new components intended for serial
production.
 Significant changes to existing products, or
process
 Development of new manufacturing processes
SUPPLIERS ARE RESPONSIBILE TO DEVELOP AND DRIVE APQP
FOR ALL COMPONENTS.
3.2 APQP – PLANNING
3.2.1 The objective of the planning process is to deliver the project on time, at cost and at the highest level of
quality. The initial development of the APQP should begin upon receipt of the RFQ. This initial plan should
be included as part of the RFQ response package.
APQP identifies the tasks to be
completed, the expected timing,
assigned responsibility for completion
and the critical path.
This timing chart gives an overview of the activities
typical of a standard launch. This is provided as a
reference only.
Suppliers are encouraged to
develop a plan suited to their specific business.
An example of a generic project plan, as expected by VOLVO, is available on the VOLVO supplier portal.
3.3 RESPONSIBILITIES IN APQP
3.3.1 VOLVO has learned that successful projects require a level of cooperation and teamwork between
customer and supplier. A detailed list of the shared roles and responsibilities is available on the supplier
portal. Here is a short list of the key areas of responsibility.
The SUPPLIER is responsible to:
 Assign a dedicated project manager or
APQP leader
 Organize a cross-functional APQP project
team
 Develop and execute an APQP Plan to
support a successful product launch
VOLVO is responsible to:
 Identify the VOLVO project team members,
 Assign an SQE to support the completion
of APQP activities with the project team
 Identify key milestones and project
parameters
Page 12 of 44
SECTION 3.0
3.4 KEY COMPONENTS DEFINITION
3.4.1 All parts used in the vehicle are important to customer satisfaction and the safe, reliable operation of
the final product. However, there are some parts that require additional attention. At the start of a project, a
cross-functional project team identifies parts that will be subjected to closer control and monitoring. These
parts are designated as Key Components. The VOLVO buyer or Supplier Quality Engineer will notify
suppliers of parts selected as Key Components and any associated requirements. Suppliers of Key
Components will typically be expected to participate in APQP and joint steering committee reviews during the
project.
Key component selection criteria












Safety Critical components
Regulatory or legal requirements
Parts with critical characteristics
Supplier designed products
Complex part or component
Parts that constitute vital function in a system.
High value part or component
Expensive or long lead time tooling
Long lead-time part
Parts with known or potential quality concern
Extensive verification or validation testing
Parts with features that cannot be verified prior to
use by a customer (unchecked characteristics)
3.5 APQP REVIEWS
3.5.1 Suppliers of key components are required to report the project status at regular, established intervals
during the project development. As a general rule, these reviews are held four weeks prior to the project
milestone gates or drawing revision release. Suppliers should prepare for these project review meetings by
completing or updating the APQP Review Template, their project plan and the project milestone dates.
Suppliers can access the APQP Review information on the supplier portal under the e-Library, Quality,
APQP/PPAP section. There are separate APQP Review Templates and requirements for design responsible
suppliers and those responsible for production of VOLVO designed parts.
3.5.2 The initial APQP Review meeting (Kick-Off Review) should occur within two to four weeks after the
award of business.
3.5.3 To support these reviews, VOLVO has
developed a checklist designed to document the
project status at each review. The information related
to the “APQP review” file is available on the supplier
portal. Suppliers are responsible to complete and
maintain the information for each review meeting. The
completed form will be used by the joint team as the
basis for evaluating the project status.
APQP Reviews are formal meetings
where VOLVO reviews supplier’s project
plan and status. During this meeting,
VOLVO and supplier jointly review that
the project is on track with respect to
deadlines and results.
3.5.4 This picture illustrates
the relationship between
VOLVO’s
Global
Development
Process
(GDP) and the supplier’s
project
plan.
The
illustration shown is for a
project where the supplier is
Design Responsible.
VOLVO Project team performs
APQP activities under its
responsibility and consult Supplier
APQP deliverables
DG
Concept Study
A
Release
SQE coordinates
completion of
VOLVO APQP
activities with the
Project Team
Supplier performs
APQP activities under
its responsibility
FDCG
Detailed development
APQP
PRODUCT DESIGN
review
Supplier
Product
Design
PPG
Final development
B
Release
Supplier
selected
APQP
KICK-OFF
review
IG
Industrialization
C
Release
P
Volvo
PPAP
Release PPAP Approved
order
APQP
PROCESS DEVELOPMENT
review
Supplier
Process
Design
RG
APQP
INDUSTRIALIZATION
review
Supplier
Process
Development
APQP
LAUNCH
review
Supplier
Product &
Process
Validation
Page 13 of 44
SECTION 3.0
3.6 SOFTWARE APQP REQUIREMENTS
3.6.1 The process used for the quality assure of software is centered around Joint Reviews similar to those
used for product development and production.
3.6.2 There are five Joint
Reviews in a normal software
development project:
 Project Planning Review
 Requirements Review
 Initial Design Review
 Final Design Review
 (SW) PPAP Review
3.6.3 As the majority of software
development occurs during the
product design phase of the
project, most of the reviews
occur during this phase. The
only exception is the SW PPAP
Review.
The graph illustrates the software quality assurance activities in relation to the APQP
process and the VOLVO GDP system.
3.6.4 The requirements applicable to supplier software projects and quality assurance system are described
in a separate requirement document called Quality and Development Process Requirements
(QDPR). Supplier delivering software to VOLVO shall be certified to level 3 according to an ISO 15504 (also
known as SPICE) assessment, or have a plan for achieving certification according to the automotive SPICE
assessment model( see www.automotivespice.com).
Page 14 of 44
SECTION 4.0
PRODUCTION PART
APPROVAL PROCESS (PPAP)
Approval of New or Revised Parts
Reference
Process
The Production Part Approval Process
(PPAP) demonstrates that the manufacturing
process used to produce parts for VOLVO is
fully developed, thoroughly tested, and
capable of serial production of parts
conforming to the technical specifications.
For the PPAP (as for the APQP) VOLVO
follows the AIAG requirements, with the
exceptions for trucks and heavy equipment.
Significant
Production
Run
Documentation
Requirements
Product &
Process
Changes
Sample
parts
and
the
supporting
documentation are submitted to show
evidence that:
 The design records and specifications
have been properly understood and met
 The manufacturing process has the
capability to produce conforming parts in
the actual production environment.
 The manufacturing process has the
capacity to support production quantities
at a consistent quality level.
Page 15 of 44
SECTION 4.0
4.1 REFERENCE
4.1.1 Suppliers shall ensure that the PPAP document and sample submissions are in accordance
with the requirements of the Automotive Industry Action Group (AIAG) PPAP Manual (latest
edition, using exceptions applied for truck and heavy equipment). Additional guidelines and a copy
of the PSW template are available on the VOLVO supplier portal.
4.1.2 VOLVO requires its suppliers to follow the Customer Notification and Submission requirements as
specified in the AIAG PPAP Manual. This includes but is not limited to:




Introduction of new components
Changes to an existing part
Drawing or specification changes
Corrections to a prior discrepancy



Supplier process change
Material changes or substitutions
Changes of sub-tier suppliers
VOLVO REQUIRES PPAP APPROVAL PRIOR TO SHIPMENT OF ANY PRODUCTS FOR USE IN
CUSTOMER VEHICLES
4.2 PROCESS
4.2.1 VOLVO uses a four step release process for new part development. These releases are labelled,
“A”, “B”, “C” and “P” releases with the “P” release being the final approved document package for the start
of production. The PPAP process can only be completed and approved based on the final or “P” release
of the specifications.
4.2.2 When the design has reached the “C” release stage, the VOLVO Buyer will issue a Sample Order to
notify the supplier that a PPAP is required. At this point, the design is considered firm enough that
suppliers are authorization to place tooling orders and start the production process design and
development. This early release is intended to give suppliers as much time and information as possible
to prepare for start of production. This sample order will be amended once the “P” documents and
specifications are completed.
4.2.3 PPAPs can only be approved based on the “P” release of the drawing and document package,
unless there is a clear agreement with the VOLVO SQE and an approved deviation.
4.2.4 The preliminary target date for PPAP submission may be included as part of the RFQ information.
Additional information concerning the target date for PPAP submission will be included in the Sample
Order. PPAP submission dates must be planned as a milestone in the supplier’s APQP plan. Any
issues, delays or changes to the PPAP target date should be communicated to the VOLVO buyer and
SQE.
4.2.5 The supplier is responsible for the PPAP preparation:

Suppliers must notify the VOLVO Buyer and SQE of the proposed shipment date; failure to
acknowledge the PPAP order is considered agreement to the due date

Suppliers (Tier1) are responsible for the planning, approval, corrective action, follow-up and
retention of PPAPs submitted sub-suppliers and sub-contractors

Supplier must indicate to the SQE if this PPAP part has been produced from new, revised or
refurbished VOLVO Group owned tooling, including our T-Purchase Order Number as reference

Cpk studies for PPAP approval must be completed on a minimum of 30 pieces

Full documentation is required on five parts selected from the Significant Production Run
4.2.6 Upon satisfactory completion of all required measurements and tests, the supplier shall
complete the required information on the Part Submission Warrant (PSW).
Completing the PSW


Suppliers are requested to use the VOLVO PSW form that is available on the supplier portal.
A separate PSW shall be completed for each VOLVO part number unless otherwise
specified by the SQE.
Page 16 of 44
SECTION 4.0

4.2.7



The PSW shall be signed by the authorized supplier representative before submission.
VOLVO SQE will review all PPAP packages and assign one of the following:
Fully approved and in compliance with all specifications.
Conditional or Interim Approval.
Not approved.
4.2.8 In the case where interim approval is given, it must be supported with an approved Deviation. All
deviation requests require review and approval by both VOLVO Product Development and the SQE. Full
approval of the deviation also requires a plan from the supplier that addresses correction of all open issues.
4.3 SIGNIFICANT PRODUCTION RUN
4.3.1 A Significant Production Run (SPR) is required for all new part introductions and is the basis for the
Production Part Approval Process. This sample run is to be conducted using production tooling/equipment,
environment (including production operators), facility, and cycle time.
4.3.2. The “Significant Production Run” requires that an adequate quantity of parts be produced to allow:
 Overall process stabilization time
 Accurate calculation of manufacturing cycle time
 Determine production through put time
 Sufficient volume for completion of capabilities studies
4.3.3. The minimum quantity of parts to be produced during the Significant Production Run is specified by
VOLVO but can be increased by the supplier. The number of parts produced during the Significant
Production Run should be determined by the type of equipment, tooling and production processes required
by the type of part. Suppliers should ensure enough parts are produced during the Significant Production
Run to ensure that the process is fully tested. Samples used for the PPAP must be taken from the parts
produced during the run.
4.3.4 The SPR also provides a good opportunity to identify and correct potential manufacturing process
bottlenecks. To be fully accurate, the capacity calculated from the SPR results should take into account the
actual OEE results from the process and include any planned down time.
THE PPAP MUST BE FULLY APPROVED BY THE SQE BEFORE SERIAL PRODUCTION
AUTHORIZATION;
OR INTERIM PPAP APPROVAL WITH
APPROVED DEVIATION
DOCUMENTATION
REQUIREMENTS-LEVEL
OF SUBMISSION
4.3.5 Suppliers are required to submit a Level 4 PPAP package for all components unless other
arrangements have been agreed between VOLVO and the supplier.
The minimum requirements for a Level 4 PPAP include:
 Process FMEA
 Control Plan
 Dimensional results
 Material test results
 Performance test results
 Appearance approval report if applicable
 Part Submission Warrant
4.3.6 Suppliers shall only submit PPAP packages based on the production-released drawings (PDrawings). A copy of the VOLVO drawing must be included in the submission package. PPAPs cannot be
approved based on supplier’s drawings. Balloons supporting dimensional checks must be done on the
VOLVO drawing.
4.3.7 The SQE may ask for the submission of additional information. Agreement to provide additional data
must be documented prior to submission of the PPAP. Prior to submission, suppliers should contact the
responsible SQE to determine if additional documentation is required. Proprietary documents that cannot be
Page 17 of 44
SECTION 4.0
submitted must be available for review. Suppliers may be required to travel to VOLVO sites for review of
proprietary documents.
Exceptions to PPAP level 4:
4.3.8 Upon VOLVO request, suppliers may be required to submit a Level 3 PPAP package for Key
Components.
S= The supplier shall submit a copy of the records or documentation and retain a copy at appropriate locations
R= The supplier shall retain at appropriate locations and make available to the VOLVO upon request.
*= The supplier shall retain at appropriate locations and submit to the VOLVO upon request
4.4 PRODUCT PROCESS CHANGE NOTIFICATION – PPCN
All proposed changes to the product, production
process, material or suppliers after PPAP must
be submitted to VOLVO for approval using the
PPCN process. Requests for change must be
submitted at least 12 weeks prior to the
introduction of the change.
4.4.1 In accordance with the ISO/TS
16949 standard, the PPAP guidelines,
and VOLVO Purchasing conditions, a
supplier cannot implement a change to
a product or production process after
PPAP approval, without prior approval
from VOLVO.
NO CHANGE TO PRODUCT OR PROCESS SHOULD BE IMPLEMENTED
PRIOR TO VOLVO APPROVAL
Page 18 of 44
SECTION 4.0
4.4.2 The purpose of this requirement is to prevent quality & delivery issues resulting from unapproved,
untested changes or modifications after PPAP approval. This applies, but is not limited to the following
cases:





Transferring of the production line: partly or
totally; to a new or existing location, plant or
building
New production layout or changes to production
line
Change of a sub-tier supplier
Changes of a process at a contract supplier,
(surface treatment, machining…..)
Packaging changes or repackaging operations





Change at sub-tier suppliers that affect fit,
form or function of the product
Renewal of current tooling
Change to the raw material
Outsourcing all or part of production to a
sub-tier supplier
Request for change to product design
including dimensions, tolerance, function,
appearance
4.4.3 The supplier desiring or requiring a change shall submit a completed Product and Process
Change Notification form to the VOLVO buyer with a copy sent to the Supplier Quality Engineer as
soon as the modification project is known, and at least 12 weeks prior to the intended Start of
Production. Suppliers may be required to submit additional information to support evaluation of the
proposed change. The PPCN form is available on the supplier portal.
4.4.4 Since VOLVO functions as a global company with manufacturing functions on most continents,
suppliers must be prepared to support the impact of a change request at all VOLVO using facilities. This
expectation applies to all changes covered by submission and approval of a PPCN. Suppliers making a
process or product change must be capable and willing to provide information and resources required to
secure product quality and uninterrupted deliveries.
4.4.5 Introduction of changes without VOLVO approval may result in any or all of the following
actions:
 All costs related to correcting the situation created by an unauthorized change will be charged back
to the supplier.
 The supplier’s 3rd party Certification Body will be formally notified that the supplier is not following
quality system or customer requirements.
 Supplier will be required to complete corrective action and demonstrate effective controls to prevent
recurrence .
 Supplier will be put on hold for new business until effective corrective action is taken.
4.4.6 After receipt by VOLVO, the request is submitted to a team for analysis. Based on the impact to
VOLVO and the risk associated with the change, the PPCN may have one of the following decisions:
 Authorize the supplier modification.
 Ask to adapt the content of the supplier modification.
 Ask the supplier to delay the implementation until extra actions/verifications are performed.(Actions
include, but are not limited to, audits, safety stock, testing, …)
 Ask the supplier to cancel the proposed modification.
4.4.7 Once approved by VOLVO suppliers will be notified by an official letter. Upon receipt of the approval
letter, suppliers should implement the modification project according to the agreed implementation plan.
4.4.8 The level of PPAP documentation required to support the introduction of the change will be determined
by the SQE. Authorization to start shipping (with the changes implemented) is only granted via the return of
the signed PSW following PPAP approval.
Page 19 of 44
SECTION 5.0
VOLVO SPECIFIC
REQUIREMENTS
Customer Specific APQP Activities
Review of
Technical
Specifications
Part Application
Agreement
Conformity of
Production
Part
Handling Review
Cleanliness
Requirements
In addition to the specific activities required by
Advanced Product Quality Planning, VOLVO
has developed a select group of activities that
support the process of new part introduction.
These additional requirements have been
developed in response to lessons learned in
previous projects or to address specific
customer needs.
Special
Characteristics
Prototype Parts
Frequently these tasks require close cooperation
between the members of the VOLVO and
supplier’s project team.
Suppliers are
encouraged to be full participants in these
activities. All of the tasks required to support
these activities should be included in the
supplier’s project plan.
Page 20 of 44
SECTION 5.0
5.0 VOLVO SPECIFIC REQUIREMENTS
5.0.1 In addition to the requirements described in the AIAG APQP reference manual, VOLVO requests the
planning and completion of the following cross-functional activities:
 Review of Technical Specifications
 Product Application Agreement
 Part Handling Review
 Process Audit
5.1 REVIEW OF TECHNICAL SPECIFICATIONS (RTS)
5.1.1 The goal of this process is to minimize the need for late design changes or design changes after the
PPAP order or Tooling Order has been placed.
SUPPLIERS ARE RESPONSIBILE TO COMPLETE THE RTS FOR ALL NEW PARTS OR
DESIGN CHANGES
5.1.2 The Review of Technical Specification ensures that all the technical information defining the part or
component has been thoroughly reviewed, clearly understood by the supplier and is feasible. The RTS
process also provides the opportunity to collect and incorporate the supplier’s comments and suggestions
into the drawing and technical specification. During the RTS process VOLVO welcomes supplier
suggestions that will improve the quality of the
product or reduce the costs associated with tooling
or the product.
VOLVO has developed a unique system for
control of technical documentation including
5.1.3 The RTS template is included with the RFQ
the drawing. This system uses the Part Version
documentation. The supplier is to complete the
Report (PVR) rather than a drawing as the top
RTS compliance matrix and return with the RFQ
level document. The PVR contains the part and
documentation package. As part of this review,
drawing revision information along with
suppliers must determine if any of the technical
references to the technical information.
areas included in the Index Audit section of this
document apply to their products.
5.1.4 Suppliers must be prepared to prove or plan activities to ensure that all processes covered by a one of
these technologies are performed by approved suppliers unless approved by the appropriate Technology
Specialist.
5.1.5 After the matrix is submitted and reviewed by VOLVO, the RTS is signed by VOLVO and the supplier.
Signing the RTS signifies agreement by all parties that the Technical Requirements, VOLVO Standards and
General Specifications applicable to the part have been received, are understood and are achievable.
5.1.6 A copy of the completed RTS should be included with the PPAP documents when submitted. This
ensures that all issues addressed during the RTS process are properly addressed during the PPAP review.
5.2 PRODUCT APPLICATION AGREEMENT (PAA) (If applicable)
5.2.1 The Product Application Agreement (PAA) is a process intended to ensure that suppliers fully
understand and accept the installation conditions of a supplier developed component.
THE PAA IS MANDATORY FOR KEY COMPONENTS WHERE THE SUPPLIER IS FULLY
OR PARTIALLY RESPONSIBLE FOR THE DEVELOPMENT
Page 21 of 44
SECTION 5.0
The PAA is designed to anticipate and
prevent problems related to the integration
of supplier designed parts into the systems
or sub-systems of the truck. The process
provides an opportunity for the supplier to
review the performance of their product in
the final application.
5.2.2 This process involves a joint review by the supplier
and VOLVO of the performance requirements and the
physical installation of the component in the final truck
application.
5.2.3 By signing the PAA, the supplier agrees with the
environment and application in which their product is to
be used. The activity related to the PAA process can
start as early as the APQP kick-off review but must be
completed before Industrialisation Gate.
5.3 PART HANDLING REVIEW (PHR)
5.3.1 To ensure that supplier product quality is not compromised during shipping, storage, handling, or
installation after transfer of ownership to VOLVO, VOLVO invites suppliers to participate in a Part Handling
Review (PHR). The PHR is conducted at each VOLVO facility using the supplier’s product. The process
encourages suppliers to participate in an audit of handling, and installation practices from receipt at a
VOLVO facility until shipment to the next facility. The purpose of the audit is to share information and gain
the supplier’s observations that will prevent the possibility of compromising product quality due to improper
handling or installation practices.
5.4 SPECIAL CHARACTERISTICS
5.4.1 While all characteristics of a part are required to conform to specifications, there are a few
characteristics that are selected as special characteristics. The selection criteria and guidelines related to
special characteristics are based on the VOLVO specification: ‘Critical Characteristics of Design Products –
Identification & Grading’, STD 105-0001. This standard describes the system used by VOLVO to highlight
and grade critical characteristics appearing in drawings and technical specifications.
5.4.2 Special characteristics are identified using the symbols [1], [2], [3], [SC] or [CC] next to a feature in a
VOLVO technical document. For all features identified as a special characteristic, the following requirement
applies:
Critical Characteristics
level [1], [CC]
Cpk≥1,67
Critical Characteristics
levels [2], [3] or [SC]
Cpk≥1,33
Cpk≥2,0 for electronic components
Process under
statistical control
Normally distributed
Checking frequency adequate to
demonstrate
 On-going process control
 Compliance to capability
requirement
Checking frequency adequate to
demonstrate
 On-going process control
 Compliance to capability
requirement
Control not achieved
Preferred alternative
Electronic or Automated Poka Yoke
Effectiveness verified once per shift
Electronic or Automated Poka Yoke
Effectiveness verified once per shift
Control not achieved
Accepted alternative
Process 100% automatic check
100 % control/inspection
Full traceability
Process 100% automatic check
5.4.3 The requirements related to special characteristics are also applied to all parts classified as Safety
Page 22 of 44
SECTION 5.0
Critical or Conformity of Production (COP). The specific application and any additional requirements related
to Safety and COP are detailed in the relevant sections of this document.
5.4.4 In addition to the special characteristics identified in VOLVO drawings or technical documents,
suppliers must identify any special characteristics related to their product. Suppliers should communicate
their standards for selecting and ranking critical or key characteristics and the methods used for designation
on drawings. Suppliers shall also define any special considerations for handling, assembly,
application, capability or use required to ensure safe, reliable performance of the product.
5.5 CONFORMITY OF PRODUCTION - COP
Governmental authorities, the automotive
industry and environmental organizations
have developed guidelines and regulations
that are placed on vehicle manufacturers.
These regulations apply both to the
customer vehicle and to the manufacturing
processes. Ensuring compliance to these
regulations is referred to as Conformance
of Production or COP.
5.5.1 Individual components or systems that are directly
connected to legal requirements or regulations or
features of a part that have the potential to impact
compliance, are identified using the symbols [2R] or
[3R]. These symbols appear on VOLVO drawings or
are stated within the related VOLVO technical
specifications controlling the part. The determination of
[2R] or [3R] grading is based on an assessment of how
seriously the consequences of non-compliance with the
requirement, for the characteristic in question, will
interfere with the legal or governmental requirement.
5.5.2 VOLVO standard STD 105-0004 defines the guidelines for grading characteristics. This standard
generally applies to components intended for powertrain applications (engines, transmissions and driven
axles), but may apply to any component of a vehicle.
5.5.3 Suppliers must be well acquainted with the regulations and legal requirements that apply to their
components. In all cases, the fulfilment of directives and regulations concerning Vehicle Approval and/or
Certification system are the responsibility of the supplier. In some cases the supplier will carry the full
responsibility for gaining component approval from the appropriate agent. Once approval of a COP related
component is achieved, VOLVO prevents the introduction of any changes until the required testing has been
completed and formal approval has been obtained.
5.5.4 All parts with features designated as [2R], [3R] are also considered “Key Components” and are
subjected to the same level of control. The designation of [2R] or [3R] differentiates the degree of
significance of the characteristic in question.
5.5.5 It is mandatory for [2R], [3R] parts to be inspected or tested and the necessary documentation
(inspection results, test reports, certificates) to be kept at the supplier for a period of time consistent
with the documentation retention policy. All inspections or tests required to ensure compliance to [2R],
[3R] regulation must be included in the control plan. A summary of the results from inspections or tests
should be communicated to VOLVO at regular intervals. Conformance to COP process requirements must
be respected during the entire product lifetime. No changes to product or process are allowed without formal
approval from VOLVO.
ALL [2R], [3R] FEATURES MUST BE MEASURED AND THE RESULTING
DOCUMENTATION MAINTAINED
5.5.6 When characteristics for regulatory compliance are identified the following requirement applies:
Page 23 of 44
SECTION 5.0
COP Characteristics level 2R
Cpk≥1,33
Process under
control
On-going SPC data recording
(Control charts or electronic data
stored and available upon request.)
COP Characteristics level 3R
Cpk≥1,33
Inspection completed to control plan
(Inspection results recorded maintained
and stored, available upon request.)
Cpk analysis conducted every 12
months
Process control not
achieved
Machine or process 100% automated
checking surveillance.
Machine or process 100% automated
checking surveillance.
5.5.7 In the event of non-conformance of an identified characteristic or component escaping the supplier’s
location, the following actions must take place immediately:
 Containment at supplier, VOLVO locations and In Transit
 Short term corrective action
 Notify the VOLVO buyer and SQE
 Begin cause analysis
 Develop an action plan to recover full conformance
5.6 CLEANLINESS REQUIREMENTS
5.6.1 When the part drawing or the Technical Requirements (TR) include a specification for cleanliness in
accordance with STD: 107-0002, suppliers are required to perform cleanliness testing at intervals that
demonstrate adequate control of the cleaning process.
5.6.2 In addition, a cleanliness audit in accordance with STD: 107-0003 may be required by the assigned
SQE. The responsible SQE will provide the appropriate information if a cleanliness audit is required.
Example:
Cleanliness
Requirement
Call Out
5.7 PROTOTYPE PARTS
5.7.1 To support design verification testing, or early build trials, suppliers may be required to deliver
prototype parts. By the VOLVO definition, prototype parts are any parts that are built on a production
process other than the final PPAP approved process. Any prototype parts produced after the “C” Release of
the drawing must be built on production intent tooling and are required to be fully conforming to the product
design requirements unless approved by VOLVO engineering and supported by an approved deviation.
Page 24 of 44
SECTION 5.0
5.7.2 Suppliers are required to develop a Prototype Control Plan to support the production, inspection and
testing activity.
5.7.3 Prototype parts, where the part or any of the features of the part fall under the requirements for
Conformity of Production, Safety Critical or special characteristics, must meet the requirements as defined in
the related section of this manual. The section of the capability requirements chart “Process control
not achieved” shall be applied. All special features must be clearly identified in the Prototype Control
Plan.
5.7.4 Unless otherwise agreed between the supplier and VOLVO, suppliers of prototype parts are required to
perform 100% measurement evaluation prior to shipment to VOLVO. The documentation demonstrating the
inspection and the actual measurement values must be recorded and copies of the records forwarded to
VOLVO at the time of shipment. All shipments of prototype parts must be clearly identified as a shipment of
prototype parts using an orange label with the word PROTOTYPE prominently displayed on the exterior of
the shipping skid or container. Specific details related to shipment guidelines, the prototype identification
label and documentation requirements can be obtained by visiting the VOLVO Supplier Portal or by
contacting the buyer that placed the prototype order.
5.7.5 Prototype parts must be clearly identified with the part number, the part version and marking that allows
the part to be identified as a prototype after installation. The purpose is to identify prototype parts so they
are clearly identifiable in the production environment and on vehicles. The intention is to insure that
prototype parts can be easily differentiated from PPAP approved P release parts. Prototype specific
identification should be appropriate to the part and agreed between the supplier and VOLVO engineering.
5.7.6 Unique requirements related to prototype parts specific to a VOLVO plant, business unit or region are
available on the supplier portal or by contacting the buyer.
5.8 PRELAUNCH CONTROL PLANS
5.8.1 Suppliers are expected to use pre-launch control plans to increase the level of quality controls applied
during ramp up and early production stages of new part launch. A prelaunch control plan is defined by
increased frequency, levels of inspection and increased controls during the early stages of production. The
purpose is to protect the customer from problems until process controls can be refined and start-up problems
can be identified and resolved. The level of controls within the control plan should be adjusted once the
production process has been stabilized and process control can be assured. Additional information
regarding VOLVO expectations and requirements for control plan development can be obtained from the
SQE assigned to your organization.
5.8.2 Suppliers may be required to implement a separate inspection activity at process start up that is
independent of the inspections and controls required by the control plan. The purpose is to verify the
affectivity of the control plan, and determine the capability of the production process. The application of this
additional control may be required by the VOLVO SQE for early production when a supplier’s performance
indicates that current controls are not adequate to identify and address problems prior to reaching the
customer. Shipments of products that have been through additional process controls should display
prominent notification on each shipping unit (box, package or skid).
Page 25 of 44
SECTION 6.0
SAFETY MANAGEMENT
Protecting the Customer
Responsibility
Identification
Production
Requirements
From the founding of VOLVO in the 1920’s,
quality and safety have been core values of
the corporation.
Since that time, the
continued commitment to the research and
development of new and often unique safety
solutions has made the VOLVO name
synonymous with safety around the world.
Today, Quality, Safety and Care for the
Environment continue to be the core values
of the organization and form a foundation for
all business practices including the
cooperation between VOLVO and our
suppliers.
Safety
Management
Audit
Traceability
The primary objective is to develop products
that assist in preventing accidents from
occurring or, in the event an accident does
occur, to minimize the consequences for the
drivers and others on the road.
The supplier’s contribution to safety lies in
developing
innovative
solutions,
implementing safety features and producing
fully conforming products.
The VOLVO
safety management program focuses on
both the suppliers’ management systems,
and product quality related to safety.
The VOLVO definition of safety not only
includes the safety of the immediate user of
our products, but also understanding the
entire scope of potential impact of our
products on society.
More information on VOLVO group safety policy can be found at:
http://www.volvo.com/group/global/en-gb/volvo+group/ourvalues/safety/safety.htm
Page 26 of 44
SECTION 6.0
6.1 DEFINITION
6.1.1 Safety requirements are determined based on the potential of a feature, product or system to create a
personal hazard to any person in contact with the products or effects caused by the product. A Safety
Customer Effect is considered when a danger can lead to injuries to vehicle operator, passengers, other
travelers, passers-by or maintenance personnel.
6.2 RESPONSIBILITY
6.2.1 The production of safe, fully conforming products to the VOLVO Group companies is the supplier’s
responsibility and is part of the supplier’s contractual commitment. Any assistance provided by VOLVO does
not in any way limit the supplier’s responsibility to supply parts that conform to all technical specifications,
standards, regulatory, contractual and legal demands.
6.2.2 Suppliers are required to conduct a criticality analysis for features of the product design and production
process that could result in a safety effect. For suppliers having design responsibility, special characteristics
related to safety must be clearly identified within their design specifications, verification/validation plans,
drawings and technical documentation. Suppliers of products impacting safety and who are design
responsible suppliers are required to develop System, Sub-System, Design and Process Failure Modes
Effects Analysis to assist in the analysis, and identification of potential safety effect features of the product.
6.2.3 Suppliers are responsible to ensure that all sub-suppliers and contractors are aware of and comply with
the requirements related to safety requirements. Tier I suppliers must have procedures and practices to
ensure an adequate level of control and requirements are deployed at all suppliers or sub-suppliers whose
product or processes could have an effect on safety related features.
VOLVO MUST BE NOTIFIED IMMEDIATELY
IN THE EVENT A NON-CONFORMANCE OR POTENTIAL CUSTOMER RISK IS IDENTIFIED
6.3 IDENTIFICATION
FEATURE IDENTIFICATION
6.3.1 A safety critical characteristic is identified when non-compliance with the requirement has the potential
to lead to a Safety Customer effect.
6.3.2 If any feature of a part is identified as having an impact on safety, the parts is considered safety critical.
Suppliers of a safety critical part are categorized as a Safety Part Supplier. Safety Critical related features
are designated by the presence of the symbol [1] next to the feature on the drawing or in a specification.
6.3.3 The VOLVO standard, ‘Critical Characteristics of Design Products – Identification & Grading’, STD 1050001, describes the system used by VOLVO to identify, highlight and grade critical characteristics.
PRODUCT IDENTIFICATION
6.3.4 The methods used for marking lot/serial numbers on safety critical parts must support identification,
traceability and failure investigation through all phases of the products life. In principle, the serial number or
lot number should be applied to the actual part and preferably should be easily visible when mounted on the
vehicle.
6.3.4 Unless otherwise specified in product documentation, the preferred method for marking is:

Item serialization

Bar code (In Accordance With VOLVO STD 103-0013 or VOLVO approved alternative)

Recording of safety critical product or process parameters (Preferred)

Recording OK/not OK is acceptable with evidence of 100% effectiveness
6.4 PRODUCTION REQUIREMENTS
Page 27 of 44
SECTION 6.0
6.4.1 With regard to dimensional, material, test and functional requirements for product features identified as
safety critical [1] or [CC], the following requirements apply and supersede the general requirements. Safety
critical characteristics must be clearly identified throughout the manufacturing process and in all associated
documentation such as process FMEA, control plans and work instructions.
6.4.2 Capability requirements for parts identified with [1] [CC] characteristics are described below:
Critical Characteristics
level 1, [CC]
Cpk≥1,67
Cpk≥2,0 for electronic components
Process under control
Checking frequency must demonstrate
On-going process control
Compliance to capability requirement
Process not under control
Preferred Alternative
Automated or electronic Poka Yoke
(Effectiveness verified once per shift)
Process not under control
Acceptable Alternative
The process must have
100% automatic check
100 % inspection control
100% traceability
6.4.3 Data records resulting from SPC, automated checking, and inspection results must be available for
download upon request by the VOLVO SQE. The data must include identification of the production lot or
serial number information.
6.4.4 In addition to the demands detailed in the table above, the supplier must apply the following
requirements on the shop floor;
 Identification of the operations which have a direct or indirect influence on safety feature
 Clear signs or placards defining the characteristic and potential effects of non-compliance
 Training status and authorization for all operators working on safety feature related workstation
6.4.5 During the APQP, Process Audits or PPAP activity, the VOLVO SQE will verify the evidence of
completion and compliance to these requirements for concerned products.
6.5.6 Thorough documentation is necessary in order to;
 Demonstrate that critical components do not have any safety related defects, either from VOLVO or
supplier.
 Demonstrate that both VOLVO and legal requirements are met.
 Limit the number of products subjected to field actions, if any.
NO DEVIATIONS ARE ALLOWED ON SAFETY CRITICAL FEATURES
6.5 SAFETY MANAGEMENT AUDIT
6.5.1 Suppliers of safety critical components or assemblies must have safety system requirements
embedded in their quality management system. Suppliers must be able to demonstrate they have the
organization, systems, processes, and competences to manage the VOLVO requirements related to safety
critical features.
6.5.2 VOLVO has developed and uses a technical audit to evaluate the Safety Management Systems of
suppliers of safety related parts. This audit evaluates the presence of an adequate management system and
Page 28 of 44
SECTION 6.0
the capabilities to properly manage safety parts through-out the production process. A Safety Management
Audit (SMA) will be conducted during the sourcing process and potential suppliers are required to achieve a
passing score prior to the award of business.
6.5.3 Suppliers that achieve a passing score but do not achieve the preferred 90% are required to develop a
detailed action plan with a timeline for achieving the 90% score. This plan must address all audit findings.
After achieving a 90% score, suppliers are re-audited periodically to ensure that the SMA systems and
processes impacting quality remain in place. VOLVO reserves the right to conduct a Safety Management
Audit at any time following a major quality spill or recall.
6.5.4 A copy of the Safety Management Audit template is available for review on the VOLVO supplier portal.
6.6 LOT TRACEABILITY REQUIREMENTS
6.6.1 The basic requirements for lot traceability are covered under the section on Production Requirements.
The following requirements apply to safety critical parts, components or assemblies and are in addition to the
basic traceability requirements. Suppliers shall have an effective system of traceability that ensures
delivered product can be traced from a finished product in the customer application back to specific
lots, sub-components, parts, blanks and raw material.
6.6.2 In addition to component/materials traceability, the system must be capable of providing the production
history of a lot or serial number. This history must include:
- Rework operations or activity
- Product and process special characteristics
- Test records
- Process parameters influencing conformance
- Machine settings influencing conformance
- Maintenance activity of machines, equipment, jigs, gages and test equipment
- Operators and personnel qualification records for operators performing the work
6.6.3 If product is controlled in lots or batches, a risk analysis related to severity of non-conformance and
probability of occurrence must be conducted and used in establishing the lot sizes to minimize the impact of
product recall.
6.6.4 The minimum requirement for storage of information related to safety critical parts is 15 years from date
of manufacturing. Any additional requirements related to storage related to applicable legal requirements
must be maintained.
6.7 PASS THROUGH REQUIREMENTS
6.7.1 “Pass Through Parts” are defined as parts that are shipped to VOLVO by a supplier who processes
parts from their suppliers, without value added activity or modification to form, fit or function to the safety
critical feature. Tier I suppliers assume all responsibility for the quality of “Pass Through Parts” that are
considered safety critical. This requirement applies to parts or features identified as Safety Critical by either
VOLVO criteria or criteria identified by the supplier as having the potential to impact safety.
6.7.2 A VOLVO SMA on-site audit will be conducted at the supplier of Safety Critical “pass through parts”.
The VOLVO safety auditor will conduct the audit focusing on Chapter 1 – “Company Management” and
Chapter 4 – “Supplier Chain Management”.
6.7.3 VOLVO requires Tier I suppliers to have an active Safety Management Audit process for their
suppliers. For those suppliers that do not have an audit process of their Safety Critical suppliers, VOLVO
does offer assistance to Tier I suppliers in developing a Safety Management Program. This assistance may
include conducting a joint audit at a Tier II supplier. The Tier I supplier is responsible to continue the SMA
program and follow up on all action items initiated during the original audit. VOLVO does not assume
Page 29 of 44
SECTION 6.0
responsibility for the supplier’s SMA program, audit results, or follow-up activity. All responsibility for the
SMA program and the quality of safety related products remain the responsibility of the Tier I supplier.
Page 30 of 44
SECTION 7.0
PRODUCTION REQUIREMENTS
Supporting Processes
Requesting
Deviations
Lot Traceability
Warranty
First In First Out
Service Parts
Requirements
While the production operations ultimately
determine the quality of product, ensuring
consistent quality also depends on the
capability of supporting processes.
Sub-Tier
Supplier
Controls
Laboratory
Requirements
Packaging
Record
Retention
The processes described in this section do
not directly determine or improve product
quality, but failure of these processes has
the potential to adversely affect product
quality.
Page 31 of 44
SECTION 7.0
7.1 REQUESTING DEVIATIONS TO SPECIFICATIONS
7.1.1 In the case where the supplier wishes to request a deviation to supply parts that do not fully comply
with VOLVO requirements, the supplier must inform VOLVO and request approval. The request must be
approved prior to shipment.
7.1.2 To request a deviation, suppliers must complete and submit a Global Deviation Request. This form is
available on the VOLVO Supplier Portal in the Serial Production section of the Quality E-Library or by
accessing the link below:
http://supplierportal.volvo.com/vsp/int/en/ELibrary/Quality/3P_and_Powertrain/serial_production/Pages/Serialproduction.aspx
7.1.3 All shipments made under a deviation should be identified on the exterior of the shipping container.
Specific labelling type should be agreed between the supplier and the SQE. Any label should include the
deviation approval number. Suppliers requesting a deviation must complete an 8D response identifying the
cause, corrective action, and measures taken to prevent recurrence.
VOLVO WILL NOT APPROVE DEVIATIONS TO SAFETY CRITICAL OR [2R] [3R]
CHARACTERISTICS.
7.2 LOT TRACEABILITY
7.2.1 Lot control and traceability should be established to limit the size and impact in the event of the need
for product recalls or campaigns. The control system must be capable of linking production quantities to
production processes to support root cause analysis activity.
7.2.2 When lot control is utilized, the system must establish and maintain one-to-one relationship between a
lot/batch traceability number and a certain quantity of produced parts. If a traceability number, other than the
serial number, is used for identifying serialized parts, a one-to-one relationship between the traceability
number and the serial number must be maintained.
7.2.3 The extent of definition and control shall be based on risk analysis of the product and the
potential impact to customers. Suppliers are responsible to ensure that the lot traceability system
maintains its integrity through-out the entire supply chain, including raw material, purchased
components/products, and sub contracted operations.
7.3 FIRST IN FIRST OUT INVENTORY CONTROL – FIFO
7.3.1 Suppliers are responsible to have inventory control systems that positively identify and control obsolete
material to prevent inadvertent shipment to VOLVO. Where feasible, suppliers shall maintain First
In/First Out (FIFO) inventory management practice. The system for FIFO control must ensure controls
extend to rework/repair, test activity and off-site (sub-contract) processes.
7.4 SUB-TIER SUPPLIER REQUIREMENTS
rd
7.4.1 VOLVO Purchasing requires that all sub-tier suppliers are 3 party registered to ISO 9001 with a plan
for achieving ISO/TS 16949. VOLVO strongly encourages our suppliers to support ISO TS 16949
certification of their suppliers. Suppliers have full responsibility for the quality assurance and corrective
action of products delivered from sub-tier suppliers for use in VOLVO products.
7.4.2 VOLVO Purchasing reserves the right to have direct access to sub-tier suppliers and processes that
could have significant impact on final product quality. This will generally concern technical processes like
surface treatment, heat treating, forging, casting etc. Please check with your SQE to determine if your subtier or contract suppliers would fall into one or more of these categories. Access to sub-tier suppliers or
Page 32 of 44
SECTION 7.0
approval of sub-tier suppliers by a VOLVO Technical Specialist, does not change or reduce the supplier’s
responsibility for quality of products supplied by those sub-suppliers.
THE PRODUCTION PART APPROVAL PROCESS, DOCUMENTED BY PART SERVICE
WARRANTS IS REQUIRED FOR PRODUCTS FROM SUB-TIER SUPPLIERS
7.4.3 VOLVO Purchasing requires suppliers to use the AIAG Production Part Approval Process (PPAP) and
that this requirement is applied to sub-tier suppliers of products to be used in VOLVO products. Suppliers
have the responsibility for managing the PPAP at their suppliers and maintain evidence of compliance.
7.4.4 Once a part is approved, changes at sub-tier suppliers that affect fit, form or function must be
documented and approved by VOLVO using the Product Process Change Notification process.
7.5 PACKAGING
7.5.1 In support of the Core Value towards protecting the environment, VOLVO has developed a process for
returnable packaging and integrated logistics system. Additional information related to packaging can be
accessed through this link.
http://supplierportal.volvo.com/vsp/int/en/ELibrary/inboundlogistics/volvo_powertrain/deliverymanual/Pages/deliverymanual.aspx
7.6 WARRANTY
7.6.1 Responding to field warranty claims remains a top priority at VOLVO. When Field failures are
determined to be the result of a supplier’s product, suppliers will be notified through receipt of a warranty
claim. It is expected that suppliers will fully participate in the investigation, root cause analysis and corrective
action when field failures are identified. Suppliers should have an established process for the handling,
analysis, investigation, reporting and corrective action of customer field returns. VOLVO has developed and
conducts a Warranty specific process audit of supplier’s capability to manage customer field returns.
7.6.2 If the non-conformance is generated by a supplier, a VOLVO warranty department may call the
responsible supplier for immediate correction or replacement of products. The conditions defining response
and responsibility are included in the Purchasing conditions, purchasing agreement and/or warranty charter.
A copy of the warranty charter is included as part of the Request for Quotation.
7.7 SERVICE PART REQUIREMENTS
7.7.1 VOLVO has the same level of quality requirements and expectations for parts produced for service and
aftermarket as required for production parts when service parts are identical to the serial production parts.
Please refer to contract order.
7.8 LABORATORY REQUIREMENTS
7.8.1 All suppliers’ laboratories or contract laboratories used to evaluate VOLVO products must comply with
the requirement of Chapter 7.6 ”Control of monitoring and measuring devices” of the ISO/TS 16949.
Laboratory and measurements reports must comply with the requirement of Section 4.2.4 ”Control of
Records”.
7.8.2 In particular, laboratory and measurement reports shall include :
 The identity and location of the laboratory used
 References to the test methods used
 Any deviation to the test method shall be noted
Page 33 of 44
SECTION 7.0


Measurement results
All necessary materials and process traceability information on the tested components or
samples
7.9 RECORD RETENTION
DOCUMENT
TYPE
EXAMPLES
MAINTENANCE INTERVAL
PPAP
Documentation
Drawings, Process Flow Charts,
Control Plans, FMEAs, PSWs,
Manufacturing Instructions, etc
Duration of production and service activity
Plus 1 year
Unless otherwise specified by VOLVO
Quality Records
Inspection Records, Functional
Test Results, Material
Certifications, Torque Records
Other Test Results (Cleanliness,
etc)
3 years from date of production
Quality System
Documents
Internal quality system audits,
Product Audits, Management
Reviews
3 years from date of creation
Inspection Records, Test
Results, Material Certifications,
Torque Records, Traceability
Records
15 years from date of product manufacture
Product Safety
Related Records
The above time periods shall be regarded as minimum. Retention periods longer than those
identified above may be specified by an organization in its procedures.
These requirements do not supersede regulatory requirements.
Page 34 of 44
SECTION 8.0
SUPPLIER PERFORMANCE
MEASUREMENT
AND CORRECTIVE ACTION
Responding to Problems
Nonconforming
Material
Supplier
Scorecard
Quality
Performance
Measurement
VOLVO recognizes that the performance of
the supply base has a direct and immediate
impact on organizational performance. In
response to this, VOLVO has developed a
system for the measurement and evaluation
of supplier performance.
The indicators
resulting from this process are compiled
every month and are reviewed and evaluated
at all levels of the VOLVO organization.
These measurements are available for
review on the Supplier Scorecard on the
supplier portal.
Improvement
Process
Audits
Continuous
Improvement
Low
Performing
Suppliers
Even under ideal conditions and careful
preparation, problems may occur. In addition
to performance, VOLVO measures a supplier
based on their cooperation in aggressively
seeking to resolve problems. Suppliers are
evaluated on the promptness in response
when notified of a problem, the timeliness of
their response, and the effectiveness of
actions taken to resolve the problem.
VOLVO invites suppliers to work as partners
in the problem solving process.
Page 35 of 44
SECTION 8.0
8.1 MANAGING NON CONFORMING PARTS
INSPECTION REPORTS
8.1.1 It is in the interest of both VOLVO and the supplier, to identify and address non-conforming parts as
quickly as possible.
In the event non-conforming parts or
materials have been identified at a VOLVO
location, suppliers will be notified using an
INSPECTION REPORT [IR]. The Inspection
Report is sent to an internet location along
with an email to the supplier’s quality
contact.
8.1.2 Suppliers shall take all necessary actions to
respond to nonconforming product that reach a
VOLVO facility (production site, warehouse, etc).
Every effort is taken to investigate and document nonconformances and to notify the supplier immediately.
When possible, suppliers will be given early notification
of a problem prior to the issuing of an Inspection Report
(IR).
8.1.3 VOLVO has developed a set of guidelines used by VOLVO plants in determining the non-conformance
quantity for each Inspection Report. These guidelines are referred to as the “Inspection Report Golden
Rules” and are available on supplier portal.
8.1.4 All costs (administrative, sorting, handling, shipping, and rework) associated with addressing a nonconformance will be the supplier’s responsibility. These costs may include any secondary costs incurred by
VOLVO resulting from a non-conformance. These include the costs associated with tear down, reassembly,
re-testing, and logistics support.
8.1.5 Under normal circumstances, suppliers are expected to respond immediately to any nonconformance
and ensure that all receiving plants are protected within 24 hours. Suppliers are required to notify VOLVO
immediately if it is suspected that non-conforming material has been shipped to a VOLVO facility.
8.1.6 Depending on the type of non-conformance and material status, supplier parts may be sorted,
reworked or adjusted. Supplier approval is required before any rework or adjustment will be performed.
Suppliers should be prepared to take any or all of the following actions after nonconforming material are
identified at a VOLVO facility.
 Replacement nonconforming material
 Provide resources to perform required sorting or rework
 Provide third party sorting resources
 Authorize VOLVO to begin third party activities on the suppliers behalf
 Provide instructions and acceptance criteria required to support inspection, sorting, or rework
8.1.7 VOLVO has agreements with third party sorting companies who are capable of providing sorting
activity on the part of the supplier. All costs associated with work and materials associated with the activity
of this third party are the supplier’s responsibility. Suppliers have the option use this service or to contract a
third party to do sorting or rework on their behalf. Third parties selected by the supplier must be approved by
VOLVO prior to starting any sorting or rework.
8.1.8 Nonconforming parts or material will be returned to suppliers or scrapped at VOLVO based on
supplier’s direction.
CORRECTIVE ACTION RESPONSE REPORTING
8.1.9 The 8 Disciplines (8D) process is a common problem solving process used in responding to customer
returns or major quality issues. It defines the key steps involved in problem resolution including containment
of the problem, root cause analysis, problem correction, and problem prevention.
8.1.10 Each time a non-conformance or a defect has been documented, the causes for the problem must be
investigated and reported. It is recommended that suppliers respond using the VOLVO 8D format. A copy of
the 8D template is attached to each Inspection Report. A copy is also available in the e-library on the
VOLVO supplier portal. Suppliers may respond using their corrective action format as long as it includes all
key areas of the 8D format. To avoid delay and extra work, suppliers should submit their corrective action
Page 36 of 44
SECTION 8.0
response format for approval to their SQE.
8.1.11 On a continual basis, supplier performance is monitored for the following performance indicators:



QPM Level
PPM Level
Delivery Precision
AN 8D RESPONSE IS REQUIRED FOR ALL NON-CONFORMANCES
CORRECTIVE ACTION RESPONSE TIMING
8.1.12 It is of vital importance that the supplier starts the problem solving process upon notification. It is
critical that appropriate actions occur immediately to contain the problem and avoid any further disturbances
to production or potential quality hazard.
8.1.13 When notified of a non-conformance suppliers are requested to react in accordance with the following
timeline:
 Immediately: Acknowledge receipt of IR
rd
 24 Hours: Begin containment activity to include sorting internally, in-transit and at Volvo, (3 party
allowed). Problem analysis started.
 48 Hours: Containment completed and short term corrective action fully implemented
 10 working days: (Timing starts after confirmation of non-conformance) Root cause analysis complete
for both occurrence & non detection, permanent corrective action defined and implemented
 20 working days: Effectiveness of permanent corrective action checked and recurrence prevented
8.1.14 If the resolving time
lasts longer than 20 days, the
supplier must reach an
agreement with SQE.
8.1.15
In
addition
to
correction
of
the
documented
problem,
suppliers shall apply the
lessons learned to all
similar
products
or
processes.
(Horizontal
Deployment).
Permanent
countermeasures for all defect
categories
should
be
implemented for all parts and processes.
8.2 SCORECARD PRESENTATION
8.2.1 VOLVO maintains a scorecard of the quality
and delivery performance for each supplier that
delivers parts to a VOLVO facility.
The
measurements on this scorecard are regularly
reviewed to track supplier performance and identify
negative trends.
The scorecard is a tool for monitoring the
supplier performance. The scorecard is made
available to suppliers to allow them to be
proactive in addressing production quality
issues. The scorecard can also assist in
reviewing performance for negative quality
trends.
8.2.2 This information is available for supplier
review over the supplier portal. It is recommended
that suppliers review this information on a regular basis. Regular review of their performance data allows
suppliers to take action to address problems and trends before VOLVO is required to take action with the
supplier.
Page 37 of 44
SECTION 8.0
8.2.3 The supplier’s performance is calculated for a calendar month and the scorecard is updated during the
first half of the following month.
Information about the latest update can be found under
“information/sources”. The scorecard shows information for a month, but ratings of a supplier’s performance
are based on a three month rolling average. Information for other periods is available using the ‘View
Performance Breakdown’ page.
8.2.4 In addition to performance information, the scorecard contains other important information for the
supplier. This includes information related to:




Supplier address and
company structure
Supplier Evaluation Audit
Results
Purchasing Contracts
Quality Certificates





Environmental Certificates
REACH Compliance
Agreements.
Supplier quality and delivery
performance
Supplier Sales to VOLVO




VOLVO Buyer
Supplier Host
Supplier contact persons for
VOLVO Group co-operation
EDI Capability
Se
le
c
t
Supplier portal - enter password
Evaluations and
certificates
The information in the scorecard
is routinely used in making
sourcing decisions.
Select
REJECTED PARTS PER MILLION (PPM)
8.2.5 The rejected PPM measurement is calculated
as the number of nonconforming parts identified
divided by the number of parts delivered, normalized
over one million parts. Parts per million is calculated
at the beginning of the month for the previous month.
PPM performance visible on supplier scorecard is
based on a rolling three month period.
The information in the scorecard
provides a picture of how
VOLVO views the supplier ability
and capability.
To access this information,
suppliers should contact their
respective VOLVO buyer.
PPM is a key indicator of the quality of
products shipped to a VOLVO facility.
(0 Km rejections).
8.3 QUALITY PERFORMANCE MEASUREMENT (QPM)
8.3.1 Quality Performance Measurement (QPM) is a
tool developed by VOLVO to provide an objective
method for measuring supplier performance. The
QPM has proven to provide a better indicator of
supplier performance than by using PPM alone.
QPM is a key indicator of supplier
performance that reflects the impact that
delivery of nonconforming parts has on
VOLVO over the prior three months.
The QPM score is calculated based on performance for a three month window.
8.3.2 The QPM process has been developed as a better indicator of a supplier’s actual performance than
using PPM alone. Including the actual number of parts rejected, the number of Inspection Reports written
and the value of rejected parts compared to the value of parts delivered compensates for anomalies inherent
Page 38 of 44
SECTION 8.0
in the PPM calculation. Example: If a supplier had 1 part from a shipment of 10 pieces rejected during a
three month period, the resulting PPM for that period would be 100,000. The related QPM for this same
three month period would be:
PPM: 20 + NCp: 5 + IR: 0 + V/V: 20 = QPM: 45
8.3.3 The measurement criterion for each measureable is defined in the tables below:
Parts Per Million
Noncoforming Parts
Inspection Reports
Volume Value.
8.3.4 Explanation of Terms used in QPM.
Parts Per Million – The number of parts rejected, divided by the number of parts delivered multiplied by 1
million.
Inspection Report: Refers to the total number of Inspection Reports issued to a supplier during the three
month window.
Non-conforming Parts: Refers to the total number of parts returned during the months being evaluated.
Volume Value: Is the percentage calculated by dividing the cost of returned material for a three month period
by the total value of products delivered during that same time period. This calculation compensates for the
situation where suppliers may have a large number of rejects of very low value products while successfully
supplying high value products but at a lower volume.
Formula for calculating QPM:
QPM = PPM points + NCp points + IR Raised points + Vol Val points.
8.3.5 The QPM is calculated and updated on the supplier score card on the second week of each month
after the end of the 3 months being measured.
Page 39 of 44
SECTION 8.0
8.4 DELIVERY PRECISION
8.4.1 A supplier’s delivery performance score is included on the Score
Card as a measure of supplier’s performance. The supplier’s delivery
performance is based on the ability to deliver correct quantities, on
time. These two measurements are compared to the total of the
supplier’s deliveries to determine the score. The delivery precision
indicator is automatically calculated on the scorecard.
8.4.2 Delivery performance is calculated for both a supplier’s overall
performance and also their performance to each VOLVO location.
Questions related to delivery performance should be addressed to the
supplier’s contact in the VOLVO materials group.
8.5 THE VOLVO PROCESS AUDIT
Periodically VOLVO supplier quality will
conduct an in depth audit of the process
steps that have a direct impact on the
quality of delivered products. Suppliers
are required to develop a robust
improvement plan to close the gaps
identified during the process audit.
8.5.1 VOLVO routinely conducts process audits as a
prevention activity as well as tool to support corrective
action. Process Audits may be performed under any of the
following circumstances:
 During APQP
 During production ramp up
 New supplier evaluation
 Introduction of a new process
 Move production to a new location
 Poor quality performance.
 After a major incident
8.5.2 In addition to the situations listed, the production processes of components that have been identified as
critical to the safe, reliable function of a vehicle are subjected to annual audits. These audits are to ensure
that the production processes used during the “Significant Production Run” remain unchanged and capable
of delivering consistent quality products.
8.5.3 VOLVO reserves the right to perform process audits whenever it is deemed necessary. Suppliers will
be given reasonable advance notice of a pending audit. A copy of the Process Audit template used by
VOLVO in conducting the audit is available for review on supplier portal.
8.5.4 One or more process audits may be required during the development and launch phases of the
introduction of a new product or process. The respective VOLVO SQE will communicate this requirement to
the supplier during the development of the APQP activities. In addition to audits conducted by VOLVO,
suppliers are expected to routinely conduct internal audits of their production processes. Records of any
findings from internal audits and actions taken in response to findings should be available for review during
the VOLVO process audit.
8.6 CONTINUOUS IMPROVEMENT
8.6.1 Suppliers are expected to use the lessons learned from each incident to improve production process,
product design, or underlying business systems. The goal is to eliminate the possibility of similar incidents,
not only by making procedural and processes adjustments on the manufacturing floor, but by removing the
environment that allowed the issue to surface. Lasting improvement requires correcting the systems and
strategies that support the production process.
8.6.2 In addition to isolated events, suppliers shall use statistical data to continually evaluate and
refine their processes. This evaluation should include analysis of quality incidents, PPM, scrap, downtime,
and warranty failures. The clear objective of this analysis must be reduction of variation with the finished
product. The supplier shall have on-going, active improvement projects that target two or three of the
Page 40 of 44
SECTION 8.0
largest problem areas and be able to demonstrate a positive trend in reducing incidents and repeat
occurrences.
8.7 LOW PERFORMING SUPPLIER – LPS
The goal of the Low Performing Supplier
(LPS) process is to initiate and drive
improvement activities with VOLVO
suppliers who are performing below
expectations.
8.7.1 VOLVO monitors supplier performance on a monthly
basis.
When any of the monitored measurement
parameters indicate negative performance trend or
significant abnormality, the supplier is considered for
elevation into the Low Performing Supplier process.
8.7.2 Suppliers will be notified of the potential inclusion in
the LPS process by a warning letter sent to the supplier’s quality department. The letter will include the
reason or reasons a supplier is being considered for entry into the LPS process.
8.7.3 The LPS procedure provides a clearly defined guide to the analysis, actions and monitoring that will
take place while a supplier is engaged in this process. Supplier improvement activities are initiated and
monitored through a three-stage elevation process. Each stage has defined criteria for entry and exit and
identified actions to be completed during the stage. Exit criteria are based on improved performance results
and implementation of process improvements. Suppliers that do not meet the criteria for a stage by the
target completion date are elevated to the next LPS stage level.
8.7.4 Each time the supplier is elevated to a higher stage, the actions required will be those of all previous
stages, plus the additional actions required by the new stage. At any time that the exit criterion is met for a
specific stage the supplier is moved to the “Monitoring” status. A supplier can be placed in the LPS based on
performance for an individual part number, multiple part number bases or organizational performance.
Supplier performance is tracked based on the VOLVO assigned Parma code.
Page 41 of 44
GLOSSARY OF TERMS
AAR
APQP
BOM
COP
Cpk
Development Supplier
DFMEA
ePS
FMEA
GDP
GSC
IR
INDEX Audit
KEP
KPI
LPS
NC
Non Development Supplier
PAA
PARMA code (or number)
PFMEA
PHR
PLCP
PPAP
PPM
Product recall
PSL
PSW
PVR
QDCF
QJ
QPM
RFQ
RTS
Service campaign
Shall
Should
SOW
SPC
SPR
SQAM
SQE
Appearance Approval Report
Advanced Product Quality Planning (AIAG Reference Manual)
Bill of Materials
Conformity of Production
Capabilities
Supplier who collaborates with VOLVO in development
Design Failure Mode & Effects Analysis
Electronic Purchasing System
Failure Mode & Effects Analysis
Global Development Process
Global Sourcing Committee
Inspection Reports
Technology based Audit
Key Element Procedure
Key Performance Indicator
Low Performing Supplier
Non-Conforming (Parts)
Supplier who produce a part according to a drawing given by VOLVO
Product Application Agreement
Supplier code in VOLVO information system.
Process Failure Mode & Effects Analysis
Part Handling Review
Pre-Launch Control Plan
Production Part Approval Process
Parts Per Million
Process involving final customers to eliminate or reduce safety
related product problems.
Potential Supplier List
Part Submission Warrant
Part Version Report
Quality Delivery Cost Features
Quality Journal
Quality Performance Measurement
Request for Quotation
Review of Technical Specification
Process involving final customers to eliminate or reduce product
reliability problems.
Mandatory requirement
Recommendation
Statement of Work
Statistical Process Control
Significant Production Run
Supplier Quality Assurance Manual
Supplier Quality Engineer
Page 42 of 44
Revision Record
EDITION
REVISIONS DESCRIPTION
01-2009
First release
06-2010
Integration of VOLVO Powertrain, VOLVO Buses, Prévost and
Novabus in the scope of application.
NO MAJOR CONTENT CHANGE:
 Wording clarifications all along the document.
 Reworked chapters :
Acknowledgement page,
Conformity of production (COP)
Special characteristics
Lot traceability,
Record retention,
 Added chapter:
Laboratory requirements
APQP reviews,
Software,
 Removed:
Appendixes,
reference to toolboxes
01-2014
Chapters re organized
Specifications for prototype parts added.
Wording clarification all along the document
New Graphics
Deleted
• Acknowledgement
• References to Premium Supplier Concept
• PPM Agreement
• Cpm for unilateral tolerances
Additions
• Reference to Index Technologies
• Added [2R] [3R] symbols
• Cleanliness Testing Information
• Expanded Prototype Part Information
• Separate sections for Safe Launch and Pre-Launch Control
Plans
• Pass Through Requirements for Safety Critical Parts
• Additional information on QPM calculation
Page 43 of 44
SECTION 1.0
VOLVO
Environmentally friendly printing