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Daimler Trucks North America

Effective: July 11, 2008

Foreword

DTNA, LLC Quality Requirements

Supplier Quality Evaluation Page

Production Part Approval Process

Statistical Process Control

Supplier Corrective Action

Masters of Quality - Supplier Quality Award for Excellence

Supplier Disapproval

Updates (change history)

This document is controlled on-line. Always refer to the Internet for the most current version.

Daimler Trucks North America © 2008. All rights reserved.

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Supplier Quality Manual | New Supplier Information

of 1Daimler Trucks North America Supplier Online: Quality Manual

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Quality Policy

Daimler Trucks North America LLC is committed to continually

improve the performance of its brands in all aspects of our

customers' expectations and experiences with our products,

services and people, while maintaining our commitment to the

environment and safety.

Purpose

To inform all suppliers of the quality requirements of Daimler

Trucks North America, LLC and all of its subsidiaries, divisions, and

Business Units.

Scope

Includes all suppliers of production material, tooling, and services

to all Daimler Trucks North America subsidiaries and divisions.

Points of Contact

If you have questions concerning this manual or the DTNA quality

procedures, contact the appropriate Business Unit Quality

Department or the Corporate Quality Assurance Department.

Resources

American Society for Quality (ASQ)

800-248-1946

Registration Accreditation Board (RAB) 888-722-2440

International Register of Certified Auditors (IRCA) +44 (0)20 7245-6833

Automotive Industry Action Group (AIAG)

248-358-3570



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http://www.asq.org/

http://www.rabnet.com/

http://www.irca.org/

http://www.aiag.org/scriptcontent/index.cfm


Supplier Quality Manual | New Supplier Information | Packaging Guidelines

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Purpose

To define the suppliers' responsibility for compliance to Daimler

Truck North America quality requirements.

Scope

This applies to suppliers of production material, tooling, or services

to any Daimler Truck North America Business Unit.

Procedure

Suppliers must meet the following Quality Assurance requirements

before business is awarded to them:

I. 3rd party Registration to ISO 9001:2000; or

II. 3rd party registration to ISO/TS 16949; or

III. Completion of the Quality Assurance Supplier Self-Survey with a

score of 75% or higher on all sections, a score of 6 or higher for

each question, and agreement to achieve 3rd party registration to

ISO 9001:2000 or ISO/TS 16949 within one year.

Depending on the scope of the business intended, DTNA may

require an on-site assessment.

Low volume suppliers may be exempt* from certification

requirements depending upon the nature and/or quantity of products and services provided.

*See Supplier Quality Evaluation for Exemption List.





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Purpose

To define the suppliers' role in Daimler Trucks North America's

supplier quality evaluation process.

Scope


to any Daimler Trucks North America Business Unit.

Procedure

� Suppliers are required to be third party registered to ISO

9001:2000 or ISO/TS 16949*

� Suppliers are evaluated through on-site assessment or supplier

self-surveys

� A self-survey becomes necessary if the supplier has not achieved

ISO 9001:2000 or ISO/TS 16949 registration

� It then would be necessary for completion of the Quality

Assurance Supplier Self-Survey:

� with a score of 75% or higher on all sections,

� a score of 6 or higher for each question,

� and agreement to achieve 3rd party registration to

ISO 9001:2000 or ISO/TS 16949 within one year

A DTNA self-survey document will be provided to the supplier if

necessary.

On-site Assessment results in classification of the supplier into one

of three categories

80-100%

� 1 = Suitable in principle as supplier to DTNA

50-79%

� 2 = Could become a suitable supplier with support

<50%

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� 3 = Not suitable as a supplier to DTNA

* Certain suppliers may be exempt from certification requirements depending

upon the nature and/or quantity of products and services provided to DTNA.

Examples of suppliers who may be considered exempt from certification

requirements are:

� Low volume suppliers of custom components. � Suppliers of prototype parts/assemblies. � Providers of warehouse or clearinghouse services. � Suppliers of other non-manufacturing related or non-value added

services.

Exempt status is determined at the discretion of Corporate Quality Assurance or

Business Unit Quality Assurance Management.

Exempt suppliers are not exempt from performing PPAP.

If you are not ISO 9001:2000 or ISO/TS 16949 certified, your parts may be

subject to closer scrutiny.





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Purpose

To define the suppliers' role and responsibility in the approval

process of purchased parts and tooling for production purposes. To

determine if all customer engineering design record and

specification requirements are properly understood by the supplier

and that the process has the potential to produce product consistently meeting these requirements during an actual

production run.

Scope

This applies to suppliers of production material or tooling to any

Daimler Truck North America Business Unit.

Procedure

Production part approval is required as defined in "Production Part

Approval Process" (PPAP) published by the AIAG. All applicable

elements are to be completed and retained on file at the supplier's location. While this Procedure is intended to cover all situations

normally occurring during the submission process, questions that

arise should be directed to the appropriate production part approval

coordinator - DTNA Corporate Quality Assurance or Business Unit

Quality Assurance.

All requested PPAP document submissions are to be sent to DTNA Corporate Quality Assurance or the requesting Business Unit Quality

Assurance Department. When a sample part is requested, the above still applies and copies of the PSW, Dimensional Report, and

marked print must accompany the sample part(s) to be shipped to

the specified plant.

Corporate and Business Unit Quality Assurance review applicable

documents for new and revised parts and assemblies, as well as for

any design or process changes warranting notification or

submission as indicated in PPAP. Submission and approval

requirements are determined using individual judgment and the

risks associated with each part, as outlined in the Production Part

Approval Process flowchart. When families of parts occur, and

evidence of supplier quality planning for one part (parent) in the family of parts is deemed sufficient, the remainder of the parts in

the family will be approved with the approval of the parent part.

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Parts received prior to PPAP approval without the required

documentation (noted above) will be rejected by DTNA Plants.

Parts such as standard fasteners, fittings, raw materials,

components of an assembly, etc., are defaulted to approved status. Also, parts below estimated annual usage of 150 such as Custom

Engineered parts are defaulted to approved status as well.

However, Suppliers must document steps taken to make certain

that parts conform to specifications.

Corporate and Business Unit Quality Assurance determine the

submissions and approvals required for purchased parts and tooling

according to the complexity of the part and Supplier's performance

history. The PPAP default level for all parts is Level 1 (excluding

Appearance Approval Report unless specifically requested).

Approval of submitted samples and/or documentation, default or requested, is required prior to supplying production volumes unless

a documented waiver is obtained by the supplier from Corporate or

Business Unit QA.

Interim approval for a limited time or piece quantity may be

granted if the supplier's root cause, action plan, and timeframe are

acceptable to the appropriate production part approval activity.

If a supplier fails to complete PPAP prior to the start of production,

they must comply with the following "Exception Conditions":

� All parts shipped to DTNA must be 100% inspected.

� All characteristics per the drawing must be inspected and conform

to specification. If parts do not conform to specification, contact

DTNA Corporate Materials prior to shipping parts.

� Identify each package or container with a sheet of 8 1/2 x 11

inch, heavy bond white paper, with at least 1 inch black lettering

that identifies the parts as conforming to the exception conditions

of DTNA Production Part Approval Process 09QA-R074.

� Records of the required inspection described above must be

maintained by the supplier and be made available to DTNA

Quality Assurance upon request.

� Parts submitted without required documentation will be rejected.

THIS PROCESS WILL REMAIN IN EFFECT UNTIL

PRODUCTION PART APPROVAL PROCESS IS APPROVED.

DTNA reserves the right to review and/or audit all supplier PPAP

records.

The recommended method from suppliers is electronic submission

of the PPAP forms.

The supplier for the length of time that the part is active plus one calendar year must maintain production part approval records.

Sample submissions are to be adequately labeled and tagged by



the supplier. Plant QA will perform the Dimensional Results

verification and communicate results to Corporate QA.

Production Part Approval Process - Buy Part Flowchart

Production Part Approval Process - Exception Conditions Flowchart

Make Part Approval Process Flowchart







09QA-R074 (10/3/08)

PRODUCTION PART APPROVAL PROCESS

- Exception Conditions -

Date: _____________________ Supplier: ____________________________________________________________ Job: _______________________ PU/ME: _______________________________

Daimler Trucks North America (DTNA) Quality Assurance has issued Production Part Approval

Process and/or Initial Sample Inspection Report requirements for parts that your company

supplies. The following parts have not yet received approval:

DTNA

Part Number

Revision

Level

DTNA

Part Description

Date Material Shipped(to be logged by Supplier)

For the parts listed above, Daimler Trucks North America now requires your company to perform the following exception condition procedure:

DO NOT SHIP THE ABOVE LISTED PARTS UNTIL THE FOLLOWING PROCEDURE IS COMPLETED

1. All parts shipped to Daimler Trucks North America must be 100% inspected (electronic components must be functionally tested).

2. All characteristics per the drawing must be inspected and conform to specification. If parts do not conform to specification, contact Daimler Trucks North America Corporate Materials prior to shipping parts.

3. Identify each package or container with a sheet of 8 1/2 x 11 inch, heavy bond white paper, with “100% inspected” in at least 1 inch black lettering which identifies the parts as conforming to the exception conditions and “ISIR Part(s)” if applicable.

4. Records of the required inspection described above must be maintained by your company and be made available to Daimler Trucks North America Quality Assurance upon request.

THIS PROCESS WILL REMAIN IN EFFECT UNTIL DAIMLER TRUCKS NORTH AMERICA

PRODUCTION PART APPROVAL PROCESS AND / OR INITIAL SAMPLE INSPECTION REPORT

REQUIREMENTS ARE APPROVED.

The Daimler Trucks North America Corporate Materials or Manufacturing Engineering (Tooling) representative issuing this exception condition requirement has provided a copy to Daimler Trucks North America Corporate Quality Assurance.

Engineering

Releases parts to Production Part

Schedule (PPS)

Supplier

Notifies customer of design and/or

process changes (AIAG section

1.3)

QA

Reviews PPS weekly report and supplier

information to determine submission level

QA

Loads IMS and

PPAP data base

with submission

requirements

QA

Issues PPAP

request to supplier

Are sample

parts required

QA

Reviews the

exception report

PPAP received

Tooling date

changed

No

Supplier

requested

extension

No

Job cancelled

No

QA

Notifies supplier

No

Third

notification to

supplier

QA

Assigns late PPAP

to supplier

Yes

PPAP

received prior

to production

Supplier

Submits sample

parts

Plant QA

approves

sample

Yes

Plant QA

Updates IMS and

sends results to

Corporate QA

Yes

New part

required

No

Plant QA

Updates IMS

with reject

and notifies

QA and

Materials

Yes

Plant QA

Is supplied

with written

deviation

No

Supplier

Reworks/

reproduces

sample

No

Yes

PPAP

ApprovedYes Yes

QA

Revises PPAP due

date and notifies

supplier

Yes

Changeover

approves

extension

Yes

Yes

Yes

QA

Cancels PPAP request

and notifies supplier

Is supplier

capableYes

NoNo

QA

Notifies

Materials buyer

QA

Notifies

Purchasing

Materials/ME

Notifies supplier that

Exception condition

applies

No

No

Yes

No

QA

Update IMS with approved

date and notifies supplier

No

Production Part Approval Process - Buy Part

09QA-PROC017 (2/21/06)

Engineering

Can Deviation be

Issued for Part

Supplier

Ships Parts to Required DTNA Location

QA Purchased Part

Approval Process Complete

Supplier

Performs Exception Condition Requirements

(Reference 09QA-R074)

No

Yes

QA

Updates PPAP systems to reflect

approval

SupplierParts Conform to

Specification

No

Yes

Supplier

Yes

Supplier

Reworks / Reproduces Parts

No

Supplier

Completes and Receives

PPAP Approval prior to

production

No

Yes Plant QA

Receive Part and Perform Receiving Inspection in

Accordance with 09QA-S06 and Plant Procedures

Supplier

Completes and

Receives final PPAP

approval

Plant QA

Parts Conform to

Specification

Yes

No

Plant

Uses Parts in Production

Deviation

to Plant or

to Supplier

Plant

Materials

Contact

Engineering

for Action

Production Part Approval Process –

Exception Conditions

09QA-PROC017 (2/21/06)

Engineering

Releases part to PPS

Tooled part?

ME

Completes preliminary tooling information

QA

Reviews print for inspection required

QA

Is ISIR and

capability study

required?

QA

Loads 'No' into PPS. Parts show

approved (IMS, MFOQAIU).

QA

Issues ISIR/Capability packet to ME, loads

PPS inspection required (IMS, MFOQAIU)

ME

Coordinates ISIR with tool maker

Tool Maker

Performs ISIR on all dimensions

(1 part) and Process capability study

on key characteristics (30 parts)

Tool Maker

ISIR Passes?

Tool Maker

Sends inspection documents

and ISIR sample to parts plant

Plant QA

Loads PPS and inspects ISIR

sample (IMS, MFOQAIU)

Plant QA

ISIR approved?

ME / Plant QA

Performs 30-piece capability study

ME/Plant QA

Capability study

approved?

Plant QA

Updates PPS-parts show

approved (IMS, MFOQAIU)

Make Part Approval Process Complete

Yes (Tooled)

Yes

Yes

Yes

Yes

ME

Rework Tool?

ME

Print Change

Yes

No

No

No

No

Proceed per Parts Plant

Operating ProceduresNo (Non-Tooled)

Make Part Approval Process

09QA-PROC017 (2/21/06)


Purpose

To define the suppliers' responsibility for collecting, analyzing and

reporting statistical data.

Scope

This applies to suppliers of production material and tooling to any

Daimler Trucks North America Business Unit.

Procedure

I. Suppliers are required to review all DTNA, LLC and Business Unit

drawings and specifications to determine if Key Characteristics,

identified by the symbol or as otherwise indicated on the

measurement plan/drawing, are present. All dimensions

designated as such, or features specified by the responsible

Quality Engineer, must meet the process capability requirement

of CPK greater than or equal to 1.8.

II. Supplier must include Key Characteristics on Process Control

Plans and apply appropriate SPC techniques. This information

may be requested by Corporate Quality Assurance.

III. Suppliers are expected to identify and use SPC as appropriate on

all incoming parts and materials that are used in the production

of components, parts, and assemblies for DTNA, LLC and

Business Units.

IV. Production tooling supplied to DTNA, LLC and Business Units must

meet the process capability requirement of CPK greater than or

equal to 1.8.

V. Production Check Fixtures, CMM holding fixtures and other tooling

aids must pass the Gage R&R requirements as defined in the

DTNA, LLC Prototype/Production Checking Fixture Requirements

& Buy-Off Information Book.

VI. Suppliers must maintain records of the above activities. DTNA,

LLC and Business Units reserve the right to audit these records.



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Purpose

To define the suppliers' role and responsibility in the corrective

action process.

Scope


to any Daimler Trucks North America Business Unit.

Procedure

I. Corporate Quality Assurance

A Supplier Management Team would decide to issue a Corrective Action Request to suppliers based on any of the following criteria:

� Supplier monthly reject report - a Supplier Management Team

reviews reject reports of the suppliers that they are responsible

for, and determines if a corrective action needs to be issued.

� Reports from plants or other departments - a Supplier

Management Team investigates reported problems and

determines if a corrective action needs to be issued.

� Management Directives

II. Plants/Business Units

All Business Units and manufacturing plants independently issue

corrective action requests to suppliers.

Supplier Corrective Action Process-Corporate

Quality Assurance

This form will be auto-emailed to you when a corrective action is

issued to you. It will have a distinctive title with the word F.R.A.C.A.S. (Failure Reporting and Corrective Action Sysem) on it.

It will look like this:

F.R.A.C.A.S. email example.

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Supplier must complete ALL SECTIONS of Corrective Action

Request form and return to Daimler Trucks North America by the

specified due date.





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Email Title: Freightliner LLC Corrective Action Request - F.R.A.C.A.S. #_____

# Notice

Email Body: Please Review the following Corrective Action Request and respond via

email to (LastName, FirstName) with a Corrective Action Plan and Timing. Freightliner

LLC requires a response within 5 business days. Failure to respond will require the

Purchasing department to become involved, with possible negative effects on your

Supplier Evaluation.

It is very important to resolve this problem to ensure the satisfaction of our mutual end

customer. If your company does not have an established Corrective Action Form, please

use the attached Freightliner LLC Seven Step Problem Solving Form.

-----------------------------------------------------------------------------------------------------

DETAIL AS FOLLOWS:

(PROBLEM DETAILS)

Fracas Number:

Problem Logged Date:

Sub By:

Phone:

E-mail:

Title:

Description:

Priority:

Module No:

Veh Area:

Suggested Root Cause:

Suggested Containment Action:

Model Desc:

Serial No(s):

QA Insp No:

Part No(s):

Drawing No(s):

Date Entered:

Lot Qty:

Sample Qty:

Reject Qty:

Reason Desc:

Rev Lvl Inspected:

Mfg Rev Lvl:

Supplier Code:

Supplier Name:

Supplier Contact Name:

Supplier Contact Phone#:

(PRODUCT(S))

(WARRANTY DETAILS)

QUALITY POLICY

Freightliner LLC is committed to continually improve the performance of its brands in all

aspects of our customers' expectations and experiences with our products, services, and

people, while maintaining our commitment to the environment and safety.

Freightliner LLC's ability to meet the end customers' expectations depends greatly upon

the quality of production material, tooling, and services provided by its suppliers.

[Two attachments will be here. First will be a corrective action form, second will be

the steps to complete it.]


Purpose

To define criteria suppliers must meet in order to earn a "Masters of Quality" Award.

Scope

This applies to suppliers of production material to any Daimler Trucks North America Business Unit.

Procedure

Masters of Quality Award-General

Masters of Quality is the highest distinction awarded to suppliers that meet our strict standards and demonstrate an ongoing commitment to quality improvement.

A. Suppliers with combined aftermarket and production purchases

exceeding $500,000 annually, and with twelve months or more sales history to DTNA are eligible for the Masters of Quality Award.

B. Suppliers will be evaluated and rated on a semi-annual basis by DTNA Corporation and Business Units for an annual Masters of Quality Award.

Masters of Quality Criteria

EBSC (External Balance Score Card) values are used to select best performing suppliers to be awarded Masters of Quality. The EBSC values reflect the following four categories.

1. Quality and Warranty (50% QA reject PPM, 15% Warranty PPM

and 35% semi-annual supplier evaluation) 2. Supply (50% shortage PPM and 50% semi-annual supplier

evaluation) Total score includes Accounting criteria as they relate to EDI, ASN, etc.

3. Cost (100% Purchasing department semi-annual supplier evaluation)

4. Technology (50% Engineering department semi-annual supplier evaluation and 50% Parts and Service semi-annual supplier

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evaluation.

Semi-Annual Evaluation Criteria

Aftermarket Purchasing and Purchasing

Engineering

Materials, Changeover and Accounting

Parts and Services

Warranty and Quality





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Scoring 10 - Excellent (no exceptions)Key: 8 - Satisfactory (few exceptions)

5 - Unsatisfactory (numerous exceptions)0 - Poor (does not meet criteria)

Department Short Description Criteria Description 10 8 5 0

Afte

rmar

ket

Pur

chas

ing

Responsiveness How would you evaluate the supplier's performance regarding responsiveness?

Supplier has understanding of priorities, responds 100% of the time with clear/precise information within the timeframe requested.

Supplier understands priorities but does not meet requested due date 100% of the time. Requires follow up to understand information provided.

Supplier has difficulty prioritizing needs. Relies on Freightliner to provide direction and does not take ownership.

Supplier requires constant follow up to get information, never responds on time.

Production Based Pricing

How would you evaluate the supplier's performance regarding a production-based pricing? (AM Price - Prod. Price) / Prod. Price = x % Packaging costs need to be accounted.

Supplier provides production based pricing to the aftermarket for all production parts purchased by FTL customer support. Acceptable packaging costs are validated.

Supplier usually provides production based pricing to the aftermarket for all production parts purchased by FTL customer support. Packaging costs are usually acceptable and are validated.

Supplier rarely provides production based pricing to the aftermarket for all production parts purchased by FTL customer support. Packaging costs are rarely acceptable and are validated.

Supplier never provides production based pricing to the aftermarket for all production parts purchased by FTL customer support. Packaging costs are never acceptable.

3-year Price Hold on Post Prod.

How would you evaluate the supplier's performance regarding three years price hold on post-production parts?

Supplier holds pricing on all production parts for 3 year post production

Supplier usually holds pricing on all production parts for 3 year post production

Supplier rarely holds pricing on all production parts for 3 year post production

Supplier never holds pricing on all production parts for 3 year post production

Pur

chas

ing

Responsiveness How would you evaluate the supplier's performance regarding responsiveness including timely, quality responses to RFQs, CARs, SATs, tool tracking sheets, questionnaires, forms, and other strategic requests for information?

10%: Supplier has understanding of priorities, responds 100% of the time with clear/precise information within the timeframe requested.

5%: Supplier understands priorities but does not meet requested due date 100% of the time. Requires follow up to understand information provided.

:-5%: Supplier has difficulty prioritizing needs. Relies on Freightliner to provide direction and does not take ownership.

:-10%: Supplier requires constant follow up to get information, never responds on time.

Program Management How would you evaluate the supplier's performance regarding program management (e.g. new tooling, product to market, etc.) capability?

10%:Supplier has formal written procedure with dedicated team. Sr. Management supports concept. Due dates are met 100% of the time.

5%: Supplier has no formal procedure in development but consistently demonstrates its ability to provide required information within the timeframe requested.

:-5%:Supplier has no formal procedure or plans for developing. Meets deadlines only part of the time and does not take ownership.

:-10%: Supplier neither has a program nor has plans for developing one. Relies on Freightliner forms for providing information. Is not pro-active and consistently late providing information.

Cost Savings Cost savings score is an internal calculation derived from several variables at the commodity level. Note: Cost Savings scores cannot be reported to external users.

f




Eng

inee

ring

30% Responsiveness

How would you evaluate the performance and quality of the supplier's engineering staff? How dedicated and responsive are the contact persons? How is the quality of the technical support and personnel?

Resident / dedicated engineer is supplied if needed; responds in a timely manner. Issue solutions are innovative, cost effective and implemented without undue delays. Products are of high quality and of cost effective design.

Resident / dedicated engineer is supplied if needed; responds in a timely manner. Issue resolutions are adequate but not always w/o FTL effort, but are implemented without undue delays. Products are generally of initial high quality and ocost effective design.

Resident engineer or dedicated Freightliner engineer is supplied but not always available; responses are sometimes delayed. Products are not of consistent quality; cost issues are not readily resolved.

No resident engineer or dedicated Freightliner engineer is provided. Supplier's technical support is inadequate; poor response time.

20% State of the Art Technology

How would you evaluate the supplier's performance regarding a state of the art technology?

Supplier is a leader in technological development, has necessary R&D facilities and equipment, keeps Freightliner informed of new development programs.

Supplier has technological development programs, facilities and equipment, but are only partly applicable to Freightliner products.

Has low technological development capabilities; innovations are applicable to Freightliner to a low degree.

Not oriented to the heavy truck industry; does not offer technological innovations. Facilities and equipment are outdated.

20% CAD Communication

How would you evaluate the supplier's CAD communication capability in general?

Provides CATIA or 3D CAD system data in a format conducive to our needs with no further conversion or manipulation. Able to receive and use Freightliner data. Or, no CATIA or 3D CAD communications are required of this supplier.

Provides CATIA or 3D CAD system data, but requires minor conversion or manipulation. Able to receive and use Freightliner data with minimal issues.

Electronic data is not in formats used at Freightliner and need significant manipulation to be made usable.

Has no electronic data transfer capability.

15% Prototypes & sample parts

How would you evaluate the supplier's performance regarding a timely supply of quality prototypes and conformity of sample parts to specifications?

All prototypes are delivered by the due date and sample parts meet Freightliner Engineering technical requirements. Supplier provides sample inspection or certification documentation for all prototypes.

Parts have been delivered after the due date or required rework, but did not result in delays in program timing. Supplier provides sample inspection documentation, but only upon request.

Parts have been late or there have been rework needs causing program delays in excess of one week. Supplier does not provide sample inspection or certification documentation.

Supplier is not able to provide suitable prototype parts.

15% Program Management

How would you evaluate the supplier's program management capability?

Dedicated Program Manager or "point person" is assigned and is easily accessible. Provides strategic assistance in implementation of significant changes.

No single Program Manager or "point person" assigned, but contacts are identified for necessary functional areas (e.g. Engineering, Purchasing, MFG, Quality). Coordination and assistance for implementation is good.

Program Manager or "point person" changes with each program and assistance is not consistent and not of much benefit.

No Program Manager or contacts are defined; no high level assistance is provided.



Department Weighting Short Description Criteria Description 10 8 5 0

Mat

eria

ls &

Cha

nge

Ove

r 15% ASN UsageHow would you evaluate the supplier's performance regarding ASN Usage?

90 to 100 80 to 89 70 to 79 0 to 69

20% Responsiveness

How would you evaluate the supplier's performance regarding his responsiveness to supply needs?

Always Most of the time Less than half of the time. Almost never

20% Capacity

How would you evaluate the supplier's performance regarding his manufacturing flexibility and ability to meet commited volumes?

Always meets committed volumes Meets committed volumes but requires overtime or premium payments to accomplish task

Has difficulty meeting committed volumes

Rarely able to meet committed volumes

15% EDI AccuracyHow would you evaluate the supplier's performance regarding EDI Accuracy?

90 to 100 80 to 89 70 to 79 0 to 69

15% Changeover Process

Changeover - How would you evaluate the suppliers compliance with the Changeover process? Do they comply with our process including tooling rework, preseries requirements, and start of production procedures including PPAP completion?

Thorough understanding of changeover process. Dedicated point of contact to ensure our procedures are followed. Tooling Requirement procedures followed. Pre-Production requirement flexibility. Smooth implementation of changes without production issues.

Good understanding of changeover process. Point of contact to ensure our procedures are followed. Tooling Requirement procedures followed. Pre-production requirement flexibility. Smooth implementation of changes.

Lacks understanding of changeover process. Lack of support and organization. Tooling procedures not always followed. Unable to show flexibility with pre-production requirements. Changeovers require assistance to ensure a smooth implementation.

Little or no understanding of changeover process. No point of contact to ensure procedures are followed. Tooling requirements not followed. Lack of pre-production flexibility. Changeovers consistently require assistance to ensure implementation.

15% Changeover Requests / Communication

Changeover - How would you evaluate the performance and quality of the supplier's material contacts? How proactive and responsive are the contact persons? How available are the material contacts?

Always exhibits proactive communication regarding any change or disruption in supply. Always responds in a timely manner. Proactive contact and backup contact at each FOB point. Always informs FLLC of personnel, contact, or system changes or EDI issues.

Generally exhibits proactive communication regarding any change or disruption in supply. Responds in a timely manner. Proactive contact and backup contact at each FOB point. Usually informs FLLC of personnel, contact, or system changes or EDI issues.

Inadequate communication regarding any change or disruption in supply. Does not respond in a timely manner. Contact is not always available. Does not inform FLLC of personnel changes, contact information, systems changes or any EDI related issues.

Little or no communication initiated regarding any change or disruption in supply. Does not respond in a timely manner, if at all. Contact is not always available. Does not inform FLLC of personnel or contact changes, system changes, or EDI issues.

Acc

ount

ing 25% Invoicing

Does Supplier send invoices to FLLC accurately?- Sends correct EDI line numbers on invoices- Sends NO duplicate invoices- Invoice matches ASN (receipt matches invoice/SID)

Sends correct EDI line numbers 99.9% of the time, never sends any duplicate invoices, and always matches ASNs.

Sends correct EDI line numbers 90%- 99.9% of the time, rarely sends any duplicate invoices, and matches ASNs most of the time.

Sends correct EDI line numbers 50%- 89% of the time, frequently sends duplicate invoices, and rarely matches ASNs.

Sends correct EDI line numbers less than 50% of the time, regularly sends duplicate invoices, and never matches ASNs.

25% Communication

Does Supplier provide one central point of contact and communicates via email to notify FLLC of valid credit memos and of aging unpaid invoices within a timely manner?

Supplier has one central point of contact and routinely communicates via email to notify FLLC of valid credit memos and of aging unpaid invoices within a timely manner.

Supplier has one central point of contact and usually communicates via email to notify FLLC of valid credit memos and of aging unpaid invoices within a timely manner.

Supplier has an inconsistent point of contact and rarely communicates via email to notify FLLC of valid credit memos and of aging unpaid invoices within a timely manner.

Supplier has no clear point of contact and never communicates via email to notify FLLC of valid credit memos and of aging unpaid invoices within a timely manner.

25% PaymentsElectronic Fund Transfer Supplier is set up to receive

payment via EFTSupplier is not set up to receive payment via EFT

25% EDISends EDI 810 for Manufacturing OEM for Aftermarket and for Direct Ship

Always sends EDI 810's for all shipments

Sends EDI 810 for Mfg. OEM and AM but rarely for Direct Ship

Sends EDI 810 for Mfg. OEM and AM but inconsistently

Never sends EDI 810's.



Parts & ServiceShort

Description Criteria Description 10 8 5 0

On-time delivery 30% Ship within 7 days of committed date: # of on-time shipments/ total # of shipments made by supplier

90 to 100% on-time shipments



below 59% on-time shipments

Truck Down Responsiveness

10% How would you evaluate the supplier's performance regarding coordinating customer contact?

Call to FLLC district service manager on problems, Make joint customer visit with FLLC, Contact FLLC before telling customer who is at fault,Work with FLLC on field problems,Ccoordinate action plans on field problems

Call to FLLC district service manager on problems, Make joint customer visit with FLLC, Contact FLLC before telling customer who is at fault, Work with FLLC on field problems,Ccoordinate action plans on field problems

Call to FLLC district service manager on problems, Make joint customer visit with FLLC, Contact FLLC before telling customer who is at fault, Work with FLLC on field problems, Coordinate action plans on field problems

Call to FLLC district service manager on problems, Make joint customer visit with FLLC, Contact FLLC before telling customer who is at fault, Work with FLLC on field problems, Coordinate action plans on field problems

Marketing Support 10% How would you evaluate the supplier's performance regarding providing marketing funds, brochures and field sales support?

MDF = 2% of Sales; Incentive Program Sponser; Sales Fair Sponsor; 4 flyer modulesParts Field Reps who are dedicated to FLLC dealers and who call on all FLLC dealers at least three times a year.

MDF = 2% of Sales; Sales Fair Sponsor; 3 flyer modulesParts Field Reps who are dedicated to OEM dealers and who call on all FLLC dealers at least twice a year.

MDF = 2% of Sales; Sales Fair Sponsor, Flyer ModuleParts Field Reps who call on dealers and distributors

No Marketing SupportNo field parts support

Technical Part Info.

10% How would you evaluate the supplier's performance regarding providing parts technical information?

The supplier provides online access to parts technical information to dealers and customers or provides FLLC with complete parts technical information, including illustrations, upon request.NOTE across the board: Not applicable for minor piece part suppliers.

The supplier provides FLLC with complete parts technicalinformation upon request. FLLC must convince the supplier that this assistance is necessary and valuable, i.e. the supplier is less than a fully willing participant in the process.

The supplier provides FLLC with parts technical information upon request. FLLC must provide significant rework and/or research in order to deliver the documentation to the field in a useful manner.

The supplier does not provide any type of access to any parts technical information.

Service training 5% How would you evaluate the supplier's performance regarding providing service training?

The supplier provides service training or assistance in development of service training programs to the full extent required by FLLC.NOTE across the board: Service training programs are not required for minor piece part suppliers.

The supplier provides service training or assistance in development of service training programs. FLLC must convince the supplier that this assistance is necessary and valuable, i.e. the supplier is less than a fully willing participant in the process.

The supplier provides service training or assistance in development of service training programs. FLLC expends a lot of effort to convine the supplier that this assistance is necessary and valuable. FLLC is asked to fund the development effort.

The supplier does not provide any service training assistance to FLLC.

Diagnostic tools 3% How would you evaluate the supplier's performance regarding providing diagnostic tools to FLLC?

The electronic component/system supplier provides service diagnostic software to dealers and customers in compliance with NAFTA standards; or the electronic component/system supplier provides electronic components/systems that have diagnostic and flashing functionality built into them. These suppliers also provide technical information and assistance in development of FLLC diagnostic tools in accordance with FLLC standards.

The electronic component/system supplier provides service diagnostic software to dealers and customers in compliance with NAFTA standards; or the electronic component/system supplier provides electronic components/systems that have diagnostic and flashing functionality built into them. These suppliers also provide technical information and assistance in development of FLLC diagnostic tools in accordance with FLLC standards. FLLC must convince the supplier that this is necessary and valuable, i.e. the supplier is less than a fully willing participant in the process.

The electronic component/system supplier provides service diagnostic software to dealers and customers not in compliance with NAFTA standards; or the electronic component/system supplier provides electronic components/systems that lack full diagnostic and flashing functionality built into them. These suppliers also provide technical information and assistance in development of FLLC diagnostic tools in accordance with FLLC standards.

The supplier does not provide any diagnostic tools or assistance to FLLC

Technical Service Info.

2% How would you evaluate the supplier's performance regarding providing complete service technical information?

The supplier provides online access to service technical information to dealers and customers or provides FLLC with complete service technical information or assistance in development of same upon request.NOTE across the board: Not applicable for minor piece part suppliers.

The supplier provides FLLC with complete parts technicalinformation upon request. FLLC must convince the supplier that this assistance is necessary and valuable, i.e. the supplier is less than a fully willing participant in the process.

The supplier provides FLLC with parts technical information upon request. FLLC must provide significant rework and/or research in order to deliver the documentation to the field in a useful manner.

The supplier does not provide any type of access to any parts technical information.

Product Info. Responsiveness

4% How responsive is the supplier to calls for product information and specifications? 24hr response max.

Responds within 24 hrs. More than one business day.

Root Cause Analysis & Ccorr.

Act.

3% With regards to the current product and for models no longer in use, how often does the supplier respond, participate in root cause analysis and correct product issues quickly?

100% of incidents 99 to 90% of incidents 89 to 80% of incidents 79 to 0% of incidents

Campaigns and recalls

3% How often does the supplier actively participate in field service campaigns or recalls (not only regarding information and analysis but also financially)?

100% of incidents 99 to 90% of incidents 89 to 80% of incidents 79 to 0% of incidents




Qua

lity

25% PPAPHow would you evaluate the supplier's performance regarding PPAP responses?

No late PPAPs or failed audits. One late PPAP. Multiple late PPAPs. Failed PPAP audit.

25% Corrective Actions

How would you evaluate the supplier's performance regarding Corrective Action Responses (CARs)?

No CARs are required. No CARs are overdue. One late CAR. More than one late CAR or rejected CAR submitted by supplier.

25% Campaigns and Recalls

How would you evaluate the supplier's performance regarding recall history and campaigns?

No recalls or campaigns over last semester.

Blank Supplier responsible for one campaign. No recalls.

Supplier responsible for a recall or more than one campaign.

25% 3rd Party Certification

Is supplier 3rd party certified? ISO 9000ISO/TS16949QS9000

Blank Blank No.

War

rant

y

20% Warranty Agreement

Does the supplier have a signed warranty agreement?

Supplier has a current signed Freightliner supplier support acknowledgement agreement on file with no exceptions.

Supplier has a current signed Freightliner supplier support acknowledgement agreement on file with agreed upon exceptions.

Supplier has a current signed Freightliner supplier support acknowledgement agreement on file with exceptions that are not agreed upon.

Supplier does not have a signed warranty agreement.

20% Parts Return Program

How would you evaluate the supplier's performance regarding his parts return program?

0-7% and participates in the Dealer Certification Program.

0-7% 8-29% 30-100%

20% Claims Responsiveness

Does the supplier provide detailed responses to claims

Provides Recovery with detailed denial explanation with payment/denial documentation. Sends denial explanation with returned failed part.

Provides Recovery with detailed denial explanation with payment/denial documentation.

Provides Recovery with detailed denial explanation with payment/denial documentation upon request.

Does not respond to claims.

20%Root Ccause

Analysis & Corr. Act.

Does supplier support failure of their products and work with Freightliner Manufacturing, Engineering and Dealers/Fleets to identify and implement corrective action?

Excellent Average Poor Does not work with Engineering Freightliner Manufacturing, Engineering and Dealers/Fleets.

20% Timely Response to Claims

Does the supplier resond to claims within the time guidelines?

Supplier resonds to all claims within the time guidelines.

Does not dispute aged claim debits.

Disputes aged claim debits. Supplier does not respond.


Purpose

To define the criteria by which suppliers can be disapproved.

Scope

This applies to suppliers of production material, tooling, or services to any Daimler Trucks North America Business Unit.

Procedure

Corporate and Business Unit Quality Assurance maintain criteria for

helping to determine the disapproval of suppliers. The following are

criteria that Quality Assurance uses at its discretion:

A. Supplier fails to maintain ISO 9001:2000 or ISO/TS 16949

registration.

B. Supplier continually fails to respond to DTNA Corrective Action

Requests.

C. Supplier has a reject rate of over 50 PPM for the last four

consecutive quarters on average, and there are no signs of

improvement.

Failure to maintain ISO 9001:2000 or ISO/TS 16949 third party

registration, to respond to DTNA Corrective Action Requests, or to

maintain a reject rate of 50 PPM or less may be used in conjunction

with criteria of other Corporate Departments to consider the need

to advise Purchasing of the need to disapprove the supplier for any

new business, and to consider resourcing with another supplier.





Page 1 of 1Daimler Trucks North America Supplier Online: Supplier Disapproval

10/10/2008http://corpwebq03/webapps/SupplierOnline/quality_manual/sup_qm_sup_decert.asp


Significant updates and editing to the original January '01 release of

the Third Edition of Freightliner LLC's Supplier Quality Requirements

Manual will be listed here for a user-friendly reference:

7/22/08 - Significant updates and editing to the previous edition of

this document.

� 2/12/01: Production Part Approval Process (PPAP)

� Part Submission Warrant and documentation submission

direction was clarified under letter A.

� The Level 2 process for Sample Product submissions was

clarified for suppliers under letter B.



Page 1 of 1Daimler Trucks North America Supplier Online: Updates to Supplier Quality Manual

10/10/2008http://corpwebq03/webapps/SupplierOnline/quality_manual/sup_updates.asp


Providing the end customer with a quality vehicle requires the energy and support of every link in

the supply chain. Delighting the end customer requires participation from many supply chain

members, including raw material suppliers, transportation carriers, assembly and manufacturing

plants, and dealers. Daimler Trucks North America is a demanding customer and seeks only those

supplier partners who are able to maintain the highest levels of quality and customer satisfaction.

Here is a brief look at our key supplier qualification requirements.

� ISO 9001:2000 or ISO/TS 16949 Certified

� Fully EDI/ASN

� Compatible Commitment to Support Daimler Trucks North America Warranty Programs

� Acceptable Aftermarket Program

� Aftermarket pricing in line with production

� No minimum purchase quantities

� Parts to be available for 15 years post to OE production

� Support aftermarket part lead-time requirements

� Signed Confidentiality Agreement

� CATIA/IGES Capability



Page 1 of 1Daimler Trucks North America Supplier Online: New Supplier Information

10/10/2008http://corpwebq03/webapps/SupplierOnline/new_supp_info.asp

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