Lear Corporation

Global Supplier Quality Requirements
Manual

Updated January 2012

Printed Copy for Reference Only

Page 1

SECTION TABLE OF CONTENTS PAGE

1.0 INTRODUCTION ........................................................................................................................ 3
2.0 LEAR QUALITY POLICY ............................................................................................................ 4
3.0 LEAR MINORITY PROCUREMENT POLICY ............................................................................. 5
4.0 ENVIRONMENTAL, HEALTH & SAFETY POLICY .................................................................... 6
5.0 SCOPE....................................................................................................................................... 7
6.0 SUPPLIER COMMUNICATION TO LEAR .................................................................................. 8
7.0 EXTERNAL PRODUCTION SUPPLIER ELECTRONIC DATA INTERCHANGE
REQUIREMENTS (EDI) AND OTHER LOGISTIC REQUIREMENTS: ....................................... 8
8.0 REGISTRATION TO LEAR CORPORATE PURCHASING APPLICATIONS & SUPPLIER
TRACKING (eSRM).................................................................................................................... 9
9.0 SUPPLIER DIVERSITY REPORTING REQUIREMENTS – TIER II ............................................ 9
10.0 CUSTOMS TRADE PARTNERSHIP AGAINST TERRORISM (C-TPAT).................................. 10
11.0 LEAR SUPPLIER CUSTOMS REQUIREMENTS ..................................................................... 10
12.0 SUPPLIER QUALITY REGISTRATION .................................................................................... 18
13.0 ENVIRONMENTAL REQUIREMENTS .................................................................................... 19
14.0 PRODUCT MATERIALS CONTENT RECYCLABILITY REPORTING (PMCRR-IMDS) ........... 20
15.0 REACH – Registration, Evaluation, Authorization (and Restriction) of Chemicals ..................... 20
16.0 SUPPLIER QUALITY TRACKING SYSTEM (SQTS) ................................................................ 21
17.0 EXTERNAL PRODUCTION SUPPLIER PERFORMANCE ....................................................... 22
18.0 PRE-PRODUCTION and NEW PRODUCT LAUNCH REQUIREMENTS (APQP) ................... 23
19.0 LAUNCH READINESS MEASURES: ....................................................................................... 24
20.0 PRODUCTION PHASE / MANUFACTURING .......................................................................... 28
21.0 EXTERNAL PRODUCTION SUPPLIER CONTROLLED SHIPPING STATUS: ........................ 30
22.0 COST RECOVERY POLICY: ................................................................................................... 34
23.0 HELP ........................................................................................................................................ 35
24.0 CHANGE CONTROL 35

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1.0 INTRODUCTION

This Web Guide / manual has been developed to communicate the Lear Global Supplier
Quality requirements to all external production suppliers and provide a Lear common
process that includes all phases APQP, Launch and Current Supplier Quality.

Effective December 15, 2011 this release replaces all previous editions.

Purchasing Purchasing
Seating Systems Electrical / Electronics Systems

Jim Brackenbury Jennifer Moceri
Global Vice President Global Vice President

Regional Purchasing Regional Purchasing
Seating Systems Electrical/Electronics Systems

Guenter Kraus Steven Cooke
Vice President Director, North America
Europe and South Africa
Andy Doyle
Eric Schwarz Director, North America
Vice President, North America
Michael Schlenker
Jose Klein Director, Europe
Director, South America
George Doromal
Arvind Sharma Director, Asia
Director, China

Supplier Diversity - North America Global Environmental, Health & Safety

Derrick Mitchell Barbara Boroughf
Director Vice President

Page 3

2.0 LEAR QUALITY POLICY Page 4 .

3.0 LEAR MINORITY PROCUREMENT POLICY Page 5 .

HEALTH & SAFETY POLICY Page 6 .4.0 ENVIRONMENTAL.

com . It is the supplier‟s responsibility to check at regular intervals for updates to this manual at https://access2. global organization that responds quickly to customer and market requirements and that successfully leverages our manufacturing. productivity and ultimately.covisint.com (eSRM) or http://lear. quality. If for any reason. innovation. Compliance to the requirements within this manual as well as to the Lear Corporation Purchase Order Terms and Conditions is mandatory. Page 7 . profits. “Lear” refers to Lear Corporation and its affiliates and subsidiaries. Continuous improvement can only be attained through effective communications. efficiencies.5. For purposes of this manual. Our aim is to create a favorable business environment for both Lear and our suppliers that strives for customer satisfaction in an environment that supports continuously improving costs. it is your responsibility to contact your assigned Lear buyer for a copy. Lear‟s leadership position is supported by a flexible. cross-functional. Lear recognizes its external production supply base as an extension of its business and the need for consistent material supply on a global basis. the web-site cannot be accessed. efficiency and the flexibility to deliver and support the needs of our customers. Our Global External Production Supplier Network will help to create value in the supply chain through continuous improvement. Subsequent Supplier Bulletins will continue to be published to communicate all updates and changes.lear. Globalization at Lear will be achieved through the penetration of existing and emerging markets with breakthrough technology and extensive customer partnerships on a global basis.0 SCOPE This Web Guide / manual applies to all Lear approved production part & material suppliers globally. This Global Supplier Quality Requirements Manual has been developed to describe and define the requirements and expectations of Lear. documentation of quality expectations and the successful implementation of supportive action plans that support long-term customer loyalty and satisfaction. It is intended to drive consistency in Lear‟s sourcing and procurement activities on a global basis. New bulletins are communicated at time of log-in to the eSRM supplier web page. distribution and supply chain superiority. who may issue purchase orders to suppliers. The value of the supply chain is fully recognized at Lear.

components and production materials to Lear plants are required to have EDI capabilities.covisint. assemblies. Early notification of any potential supply/capacity issues are communicated to your Lear Buyer. Authorization (and Restriction) of Chemcials.0 EXTERNAL PRODUCTION SUPPLIER ELECTRONIC DATA INTERCHANGE REQUIREMENTS (EDI) AND OTHER LOGISTIC REQUIREMENTS: All external suppliers supplying production parts. Page 8 . Suppliers must acknowledge that achievement of ZERO DEFECTS and 100% on time Delivery performance are fundamental objectives for Quality and must monitor their performance as reported in both the Lear Supply Rating System (SRS) Monthly Corporate & Common Scorecards and QNs issued in the Supplier Quality Tracking System (SQTS). 7. All suppliers are expected to be compliant with the environmental directives of Lear‟s customers and applicable legal requirements including Product Material Content and Recyclability Reporting (PMCRR-IMDS) and associated programs.0 SUPPLIER COMMUNICATION TO LEAR Lear‟s expectations are that all suppliers meet or exceed the following requirements: Supplier communication to Lear will be pro-active and will include notification of any and all sub-contractor issues that could affect Lear and its affiliates or its customers. Contingency Planning Strategies are in place for all manufacturing facilities that ship to Lear and its affiliates. refer to Supplier Material Delivery and Logistics Requirements at the Lear Website at http://lear. including but not limited to potential labor stoppages. the supplier will ensure tooling is properly stored to prevent damage and is readily available for service requirements.6.com. including REACH-Registration. Evaluation. For additional information on EDI and other logistics requirements. Upon completion of a program. All requests for authorization of any proposed material or process changes or moves of production locations by a supplier or it‟s sub-suppliers are submitted in advance with regard to timing of all issues.

” The Supplier Administrator “Supplier User Enrollment Manual” is available on https://access2. 9.lear.com (also known as eSRM). This reporting system replaced Lear‟s previous Tier 2 reporting system through the Lear website. access http://lear. 2005.com .covisint.0 SUPPLIER DIVERSITY REPORTING REQUIREMENTS – TIER II All Lear North American external production suppliers are required to purchase products and services from Certified Minority Business Enterprises (CMBEs) in an amount equal to five percent (5%) of the dollar amount of business they do with Lear Corporation. Quarterly reporting of this information is a requirement and is handled through the online application at www.lear.0 REGISTRATION TO LEAR CORPORATE PURCHASING APPLICATIONS & SUPPLIER TRACKING (eSRM) All suppliers are required to register a supplier administrator for access to the Lear eSRM applications at https://access2. please contact Lear at supplierdiversity@lear.com. Page 9 .com and details the responsibilities of the administrator and instructions for adding and deleting users to the applications.com. CMBEs are those companies that are certified by the National Minority Supplier Development Council or one of its affiliates. Lear implemented the use of the M-Tier Diversity Reporting system. a Ford Motor Company initiative.m-tier. which include: Online Quote System Supplier Rating System (SRS) Purchase Order Retrieval ProFile Supplier (APQP) Diversity Reporting (North America Only) Supplier Quality Tracking System (SQTS) To register a supplier administrator for your company. In June. Go to the “Web Applications Tab” and complete the form entitled ”Request Web Application Access. Information should be reported as a LEAR PRIME. Your Supplier Administrator is responsible for assigning user access IDs and passwords for others in your company to access the Lear Purchasing applications.8. If you have any questions regarding Tier 2 diverse spend reporting.

S. Lear is constantly striving to improve security within our global supply chain. Page 10 . Lear‟s corporate policy is for all U. from both intercompany and third-party suppliers. 10. border crossings and ports of entry.S.0 LEAR SUPPLIER CUSTOMS REQUIREMENTS To strengthen internal controls with respect to compliance with U. equipment. Lear has reviewed all aspects of our import activity. These requirements apply to all commercial and non-commercial goods that are imported into the U. foreign “related” and “unrelated” suppliers to comply with the import laws of U. Customs‟ obligation to exercise “reasonable care” 1.0 CUSTOMS TRADE PARTNERSHIP AGAINST TERRORISM (C-TPAT) As a member of C-TPAT. product returns. Lear is constantly striving to improve security within our global supply chain. regulations.S.lear. and decisions applicable to our import operations.S.S. border crossings and ports of entry. Customs and Border Protection (“U.S. including finished products. etc. which will ensure timely delivery of shipments through expedited clearance at U. as a member of the Customs-Trade Partnership Against Terrorism (C-TPAT) initiative. Customs” or “CBP”) laws and regulations. Furthermore. Additional reporting information and instruction is available on M-Tier by accessing www. tariff schedules. Customs Service). In accordance with our U. Further. commonly referred to as the Customs Modernization Act. as amended by title VI of Public Law 103-182. Customs. 1 Section 509(a)(1)(A) of the Tariff Act of 1930.S.S. domestic operations. which will ensure timely delivery of shipments through expedited clearance at U. rulings. 11.S. Supplier Bulletin 56430-17 (available on eSRM under Quick References) provides additional information on the program. research components. Lear directs you to be familiar with the relevant provisions of the law. such as the ones set forth herein. You are required to complete and returned the provided Acknowledgement Form. Lear expects that all suppliers outside of the USA are expected to educate themselves on the requirements of Customs and Border Protection (CBP-formerly U. Lear expects you to be familiar and comply with all purchase order terms and conditions as well as any additional instructions provided by Lear personnel.com under Supplier Information and then Supplier Diversity. raw materials. and seek your full support of the below listed requirements. As a supplier.

this person should have access to personnel at your company in the accounting.  Name and address of „Sold To‟ party  Detailed description of the product . when preparing commercial documents for merchandise to be sold and exported to Lear U.S. Page 11 .1 COMPLIANCE INSTRUCTIONS 11.1. procurement.1.1. Customs laws and regulations. country of origin determination. products manufactured at your company.A detailed description of the imported merchandise.. by inputting the relevant information in each of the following fields. 11. please confirm that your company accurately completes the commercial invoice and packing lists. and the shipment of such products to Lear U. “automotive parts” is not acceptable) 2 19 U.C.S.1 Language All commercial documentation must be in English. Lear also maintains this documentation in accordance with the requirements to maintain entry documents as set forth in Customs‟ (a)(1)(A) list 2.3 Invoice Content Requirements As a supplier of merchandise to Lear. and the marks. (To note. 11.  Invoice Requirements  Date of shipment  Name and address of shipper  Name and address of consignee  Consignee IRS# . Lear‟s Customs Compliance Department relies on the accuracy of this information in order to be compliant with U. This person should be knowledgeable about the materials and components sourced by your manufacturing company. its grade or quality.S. 1509(a)(1)(A). Effective immediately. it is critical that your accounting and shipping department personnel input accurate and complete information on commercial documentation and shipping documentation. or must include an accurate and complete translation of all required information.This is mandatory for all shipments arriving in the U. number or symbols under which it is sold by the seller or manufacturer. including the commercial name by which it is known.2 Designate Point of Contact Please designate one individual at your company to serve as a point of contact for Lear‟s Customs Compliance Department.S. shipping and receiving departments to facilitate communication between Lear and the company for customs purposes. 11.S. This person should additionally be knowledgeable about transshipment rules (see the below explanation). Finally.

Examples of “assists” are:  Materials. dies. Lear part numbers (if applicable)  Quantity – The quantities imported in weights and measures  Unit price . etc. This information is necessary for Lear to determine how to report the value of the assist to U. 11.S.1.Please note that all items require a value for Customs purposes. generally. Ex-Works.  Terms of Sale (e. then please contact Lear‟s Corporate Customs Department to inform us of the type of “assist” prior to shipment of merchandise to Lear U.A statement of all goods or services the buyer furnished to the manufacturer for producing the merchandise. for use by your company in the production or sale of merchandise to be sent to Lear U. An “assist” is any item provided to you by Lear free of charge or at a reduced cost. The price actually paid or payable for the imported merchandise is the total payment. there MUST be a value for Customs. and  Total number of cartons shipped.  Packing List  All information shown on commercial invoice (see above) except for value.). samples.  Gross and net weights of products. Cost of Insurance & Freight..S. Assists: If you are aware that Lear recently provided your company with an “assist”. molds.  Merchandise consumed in producing the imported merchandise. The invoice should be marked “Value for Customs Purposes Only.4 Valuation The price input on the commercial invoice should reflect the price paid or payable by Lear to your entity for the merchandise purchased. insurance. parts. and other incidental costs that Lear makes to you. the appropriate eight-digit Harmonized Tariff Schedule (HTS) classification).g. Customs.  Total price per line  Total invoice cost .  Tools. Even if the shipment contains no-charge items.This is the country of manufacture.S. This amount is generally the basis for determining the merchandise‟s dutiable value. Free-On-Board. and  Harmonized Tariff Code (If known. and Page 12 .  Name of the Customs broker responsible to clear the cargo  Assists . components.The purchase price in the currency where the merchandise was purchased. or returned goods. and similar items incorporated in the imported merchandise.”  Type of Currency  Lear Purchase Order number  Country of Origin . and similar items used in producing the imported merchandise. returnable containers. etc. excluding international freight. the cost of which is not included in the invoice price.

Assembly: Alternatively. Page 13 . payments for packing costs. territory. a. but are not limited to. that the product manufactured in your company is eligible for entry into the United States under the GSP program. if your company assembled merchandise from goods sourced in the United States. At the time of entry.S. Lear will need to determine if and how the value of such payments should be reported to U. Additional Payments: If you know if Lear made any additional payments to your company related to the importation of the merchandise to the United States. Customs Regulations. and plans and sketches that are undertaken outside the United States and are necessary for the production of the imported merchandise. These types of payments include. then please identify on the invoice to Lear the value of the foreign repair or alteration. a statement to that effect must be on the commercial invoice. nonrecurring engineering charges. design work.  Engineering. please contact Lear‟s Customs Department prior to shipment of merchandise to the United States. or manufactured in the GSP country.S. then please complete the following: Statement on the Commercial Invoice. please identify which portion of the value of the merchandise resulted from the advancements or improvements made by your company. 11. in accordance with appropriate U. selling commissions. artwork. determines that the merchandise qualifies for the trade program. produced. royalties or licensing fees. lists each country.S. and any other payment which relates in any way to the manufacture of imported products. payments to reimburse your company for overhead or tooling charges. Customs. and “association of countries” that is eligible for GSP benefits (“GSP country”). For items wholly grown. with the assistance of its foreign suppliers. research and development reimbursement. Generalized System of Preferences (“GSP”) If your company is located in a GSP country3 and you have determined. Repairs / Alterations: If your company did not manufacture the merchandise to be sent to the United States.5 Special Trade Preferences It is Lear's policy not to qualify merchandise imported into the United States for preferential tariff treatment under any special trade program unless Lear. Lear must possess the requisite documentation to support such a claim.1. but performed “Repairs” or “Alterations” only. 3 General Note 4(a) of the Harmonized Tariff Schedule of the U. development.

U. free trade zone in a GSP country). then please provide a NAFTA Certificate of Origin.GSP Declaration. Products must be intended for the United States at the time of export and the product must be directly shipped to the United States from the GSP country. a GSP Declaration should be obtained from the exporter or other party having knowledge of the relevant facts.S.S. North American Free Trade Agreement (“NAFTA”) If your company maintains manufacturing locations in Canada or Mexico. d. Goods Returned. certifying that the product qualifies for NAFTA treatment and select the appropriate Preference Criteria. For products not “wholly” from the GSP country.S... origin goods to the United States without advancing the goods in value or improving them in condition by any process of manufacture or other means. shipping papers or a statement on the commercial invoice) to confirm that a “direct shipment” occurred.g.S.S. Origin (Manufacturers Affidavit. Foreign Shipper‟s Declaration. after reviewing the NAFTA Rules of Origin. U. Advanced and Improved Abroad (HTSUS 9802) This provision applies if your company returns U. unless a certain exception applies (e. Goods Returned (HTSUS 9801) This provision applies if your company returns U. and you have determined. and Evidence of Direct Shipment. tariff shifts.S. origin goods are eligible for entry into the United States under HTSUS 9801. If you have determined.S. NAFTA Certificates should only be completed by someone with proper training including knowledge of tariff classification. with the assistance of Lear‟s Customs Compliance Department. regional value calculations and automotive tracing requirements. origin goods to the United States after repairing / altering them or after using the U. then please provide: Statement on the Commercial Invoice. bill of material analysis. Please sign and date the NAFTA Certificate of Origin. You must directly ship all product from your company directly to the United States. as supported by commercial invoice documentation. that the U. b. Please provide Lear with documentation (e. U.g. and Proof of U. that the product manufactured by your company is eligible for entry into the United States under the NAFTA. origin goods for Page 14 . The GSP Declaration shall include all relevant detailed information about the manufacture of the product. State that item was previously exported from the United States and imported into your country. c.S. Certificate of Origin or NAFTA Certificate of Origin indicating the U.S. as the country of origin).

character. if Lear is seeking preferential tariff treatment under a program not listed above. For all products. manufacturer‟s affidavit. such that it gained a new name.S. as described below.00. It is not intended to be exhaustive of all the programs available to Lear and accordingly.assembly purposes. In certain cases. The country of origin must also be used for marking purposes. and In the case of articles exported for repair and alteration (under HTSUS 9802.1. goods are eligible for entry into the United States under HTSUS 9802.S. with the assistance of Lear‟s Customs Compliance Department. goods assembled abroad: Foreign Assembler‟s Declaration.50).S. consider: the degree and cost of processing. then please provide: In the case of U. GSP. the name change after processing.S.S. Page 15 . the increased value of product after processing.g. NAFTA. Certificate of Origin or NAFTA Certificate of Origin indicating the U. If the product was not wholly produced or manufactured in one country.40 or 9802. a certificate of origin.6 Country of Origin Determination U. or use.. that the U. Origin (Manufacturers Affidavit. the country of origin should be the country in which the most recent “substantial transformation” took place. and the new character or use after the processing. If you have determined.S. The above list of programs represents a number of the more frequent programs under which Lear has obtained preferential tariff treatment. Lear will expect its foreign suppliers to provide the appropriate documentation to support Lear‟s claim for the preferential tariff treatment under the alternative program. Proof of U. U. 11. it is Lear‟s policy that the invoice clearly state the value of the repair and the following documentation be provided at the time of entry: Declaration of the person who performed the repairs. the country of origin should be the country in which the product was manufactured. In determining whether a “substantial transformation” occurred.00. meaning the country in which the product was transformed into a new and different article of commerce. law requires that the correct country of origin is provided on the commercial invoice and packing list. HTSUS 9801 or HTSUS 9802). or other declaration will need to be provided to Lear with the necessary country of origin documentation for Lear to claim preferential duty treatment under a special trade program (e. as the country of origin).

8 Trans-shipment Lear requires all suppliers to notify Lear immediately if you contemplate changing a production site for any products manufactured for sale or shipment to Lear U. This policy exists to comply with special trade programs (e.9 Antidumping Duty / Countervailing Duty (ADD / CVD) If you are aware that impending shipments of merchandise produced in your company may be subject to ADD / CVD.g.g. please alert Lear‟s Customs Compliance Department upon identification of the issue. staples. Customs Regulations. In the case of textiles.1. 11. 4 See “J-list” as provided in 19 C. which state that the marking must be: on the outermost container immediate container (the innermost level of packaging). GSP.1. permanent. indelible (resists fading). To validate this policy. contact the Manager of Lear‟s Customs Compliance Department to disclose the new production country and the reason for the change. unless an exception applies). on the article itself (where physically possible. Lear‟s management may conduct on-site supplier evaluations to assess that your company has implemented this policy and supporting Lear‟s corporate import policy. Written notice should be provided to the Manager of Lear‟s Customs Compliance Department when production sites change. NAFTA. 11. 11. wires). If a change is contemplated. a marking exception applies to nuts. ADD / CVD. conspicuous (can be easily seen with normal handling).1. screws. for marking exceptions. The basic invoice requirements should be followed keeping in mind the following: Confirm the shipping terms including who is responsible to clear the cargo through Customs.33. and in English.S.S. legible.1. § 134. machinery and equipment across international borders. please ensure that all merchandise shipped to Lear meets the marking requirements as set forth by the U. once the country of origin is determined..F.7 Marking Unless a specific exception4 applies for products manufactured by your company (e.) and to prevent transshipment of merchandise (from the country of origin to an intermediary country prior to shipment to the destination country) as well as avoidance of quotas. or any other trade related restrictions.R. etc. textile shipments require a notation on the documents indicating the name and address of the company who performed the processing that gave the product its country of origin. Page 16 . 11. special care should be taken when moving tools.10 Non-Production Shipments (Tooling / Machinery / Equipment) Due to the high value of these shipments.

please mark the invoice accordingly. It is always helpful to advise Lear‟s brokers in advance of the cargo arriving to ensure a smooth Customs clearance. 11. Please note that Lear will not be the importer of record for any chemicals. For transfer of production equipment. If the tooling or equipment is being sent only for alterations or repairs and will be returned.1. Please immediately instruct your employees whose activities impact any of the areas described above to follow this policy.11 Miscellaneous Training: Lear‟s Customs Compliance Department will conduct training sessions in the appropriate delivery format. the shipper should be listed as: Lear Corporation. If no actual sale is taking place. c/o (the shipping location). Supplier Bulletin 56430-17 (available on eSRM under Quick References) provides additional information on the C-TPAT program.For shipments from a non-Lear location sent on our behalf. Also note if the work is under warranty. 11. Employees: Please be aware that our import policy extends to employees of our related and unrelated foreign suppliers. Thank you for taking proactive steps to immediately implement Lear‟s Corporate Customs Compliance Policy for foreign suppliers. Page 17 . to make you aware of our import policies and procedures and to answer any questions from your employees.1.12 Ramifications Please note that a Customer Satisfaction Quality Notification (QN) will be issued against a vendor for each instance of non-compliance with the above noted requirements. values should be “fair market values”. as needed. the invoice must be marked: “Value for Customs Purposes Only” Tool/Machinery/Equipment moves from Canada to Mexico often require additional coordination due to the multiple border crossings.

12.12.02) must be submitted via: Email: suppliercertificates@lear. All Quality certificates. Welding. Plating or other Finishing Services. Painting.com Fax: 001 248 493-5999 Failure to submit a valid timeline and transition plan or a copy of your renewal certificate will have negative impact on your supplier monthly Scorecard and potentially harm your relationship with Lear. including: Production Materials Production or Service Parts Assemblies Heat treating.0 SUPPLIER QUALITY REGISTRATION REQUIREMENTS AND 2nd PARTY CUSTOMER APPROVAL GUIDELINES Lear is certified to ISO/TS 16949:2009. transition plans and Environmental Certificates (ISO 14001 or Responsible Care Management Systems. It is the suppliers‟ responsibility to submit copies of their Quality and Environmental certificates for each manufacturing location Copies of their renewal certificates must be submitted on or before the expiration date of the certificate Customer Satisfaction QNs will be issued to suppliers with missing or expired certificates Information on all certificates must match the name and address on file in the Lear system for the manufacturing location. See submission information below: Applicability Requirements: TS 16949:2009 applies to organizations that manufacture product that ends up in the final vehicle assembly. (RCMS) Technical Spec. The Lear Quality Certification Requirements for all approved production supplier manufacturing locations is 3rd party Certification to ISO/TS 16949:2009 or ISO 9001:2008 IMPORTANT NOTE: Registration to ISO 9001:2008 is only acceptable for those suppliers that do not meet the applicability requirements of ISO/TS 16949:2009 as described below or as an interim step to achieving TS 16949 certification. RC 101.1 All approved Lear external production suppliers are required to establish Page 18 .

Page 19 . Customer Satisfaction QNs will be issued to all current suppliers with missing or expired environmental certificates. Additionally.3 Third party certification does not relieve the supplier of the full responsibility of the quality of the product supplied.” 12. 12. quality and management systems compliant with the above outlined requirements. The deadline for submission of the environmental certificates for each supplier manufacturing location shipping to Lear was January 1. documents and implement effective production. 12. 13. After this date.0 ENVIRONMENTAL REGISTRATION REQUIREMENTS: All Lear suppliers are expected to work proactively with Lear to reduce the environmental footprint of Lear‟s products and comply with the environmental requirements of our customers and those countries in which Lear operates. The duration of the audit will conform to the full application of the Audit Day requirements table of the “Automotive Certification Scheme for ISO/TS 16949:2002. 12. all Lear suppliers must have an effective environmental management program in place and 3rd party registration to the International Environmental Management Standard ISO 14001:2004 or Responsible Care Management System (RCMS) Technical Specification – RC101.1 Verification of sub-suppliers 3rd party certification – includes obtaining a copy of the valid registration certificate and receiving updates as certificates expire. including all customer specified requirements. quality and or Customer down-time. form function. is not registered and/or on-site verification is very impractical (limited resources and/or location).4.02 . fit. 2008.4 Lear requires all approved external production suppliers to monitor: 12. exceptions must be documented and approved by an authorized representative of Lear.2 Lear reserves the right to verify a supplier‟s manufacturing location for site compliance to these standards by performing site audits by a designated Lear representative for those suppliers identified as having a high potential impact on safety.2 Documented evidence of sub-supplier compliance must be available for review upon request of Lear.3 In the event that a sub-supplier provides a proprietary material.4.4. 12.

” All Lear suppliers must re-submit their part to Lear for re-approval per IMDS and customer requirements. Product containing substances of concern that are restricted and/or prohibited must comply with current legal and customer requirements.e.com as soon as the information is available. or as requested. Evaluation.0 REACH*1) – Registration.. Authorization (and Restriction) of Chemicals *1) Regulation EC 1907/2006 on Registration. 14.0 PRODUCT MATERIALS CONTENT RECYCLABILITY REPORTING (PMCRR-IMDS) Product material content. A copy of the print out or “screen shot” of the „Recipient Data‟ from Lear IMDS Site 632 is considered to be the only valid evidence of acceptable submission. Lear Corporation‟s EU entities will not accept direct shipments or “drop shipments” from non-EU suppliers (i. Life cycle assessment (LCA) data may also be required for specific programs. All Production. All suppliers must provide evidence of product data submission acceptance by Lear with every PPAP submission. Non-EU suppliers to Lear Corporation must either use EU-based distributors or appoint an “Only Page 20 . New suppliers to Lear and its affiliates have one year from the date they are added as an approved supplier to meet these requirements. to be registered. Lear Corporation requires from its suppliers that all substances (including substances in preparations) provided to Lear Corporation. Suppliers must provide a list to Lear Corporation of any raw material containing a substance supplied to Lear Corporation that is not or will not be pre-registered. Failure to do so will be reflected in the supplier‟s monthly scorecard performance as measured in “Customer Satisfaction. PPAP or other approvals will not be granted for the parts not accompanying this documentation. as per REACH regulation requirements. This list must be provided to Reach@lear. and the uses of those substances. Lear suppliers are responsible for cascading this requirement and collecting data from their respective sub- suppliers. Non-Production Part/Material and Packaging Suppliers shipping to a Lear facility location in any of the following EU Communities must comply with REACH. weight and other information is to be reported via IMDS as specified below. The part numbers in the acceptance note must match the part numbers submitted for PPAP or other approval. 15. Lear Corporation will not act as the “importer” for non-EU suppliers) of substances (including substances in preparations). Evaluation. As a downstream user. recyclability.

0 SUPPLIER QUALITY TRACKING SYSTEM (SQTS) SQTS is Lear‟s Global Supplier Quality Tracking System for reporting and resolving supplier quality.htm. Suppliers in Norway. Turkey OR North Africa are NOT EU Suppliers. 2. It is an online 8D system that provides a standardized method of issuing Quality Notices (QNs) to all suppliers. 16. UK Note: 1.eu/enterprise/reach/index_en. Iceland and Liechtenstein will be considered as EU suppliers once these countries have implemented REACH. Suppliers must perform IMDS material data reporting as it relates to substances of very high concern as defined by REACH. The number of rejects reported in a Quality QN is used in the calculation of a supplier‟s RPPM that will be on each supplier‟s scorecard.0 of this document on Product Materials Content Recyclability Reporting PMCRR-IMDS). List of European Union (EU) Member Countries (Current to May 15. 2008): Austria Germany Poland Belgium Greece Portugal Bulgaria Hungary Romania Cyprus Ireland Slovakia Czech Republic Italy Slovenia Denmark Latvia Spain Estonia Lithuania Sweden Finland Luxemburg The Netherlands (Holland) France Malta United Kingdon. Russia. delivery. (Reference Section 13. Suppliers in Switzerland. Suppliers must respond to QNs by entering data in the system fields that follow a disciplined problem-solving approach. customer satisfaction and warranty issues. representative” in the EU. More information can be found at: http://www.be/reach and http://ec.acea. England.europa. Data collected in the SQTS database is sent to the Lear Supplier Rating System (SRS) which populates the Supplier Corporate and Common Vendor SRS Scorecards and Metric Charts. Page 21 .

17.e.com .0 EXTERNAL PRODUCTION SUPPLIER PERFORMANCE To meet the ISO/TS 16949:2002 requirement of measuring supplier performance. The supplier will continue to receive email notifications if the 24 hour response is not submitted on time. the Lear Supplier Rating System (SRS) Monthly Scorecard utilizes composite measures. These performance metrics also provide: Recognition of exceptional supplier performance Improved communication on performance issues Objective data for use in supplier management and sourcing decisions Opportunities for continuous improvement The SRS Scorecards and the Supplier SRS User Manual which includes the scoring criteria for each of the categories are available at https://access2.lear.e. customer satisfaction and warranty ratings performance and scores. For additional information and instructions on the SQTS System. suppliers should contact the responsible Lear Quality Engineer or buyer for the correct procedure. the supplier must respond to the QN by the close of business the following day – this is referred to in the system as the initial response and must include containment actions to protect Lear from receiving any further defective parts (i. The supplier may be issued a customer satisfaction QN by the Lear receiving plant or quality group if they are delinquent in answering QNs in a timely manner or for other repeated or chronic concerns in general.com Page 22 .lear. It provides a monthly and year to date record of the suppliers‟ quality. The supplier contacts should monitor their email notifications daily. Suppliers may risk being awarded new business / lose existing business if adherence to SQTS is not followed. When a QN is generated. which cover various aspects of supplier performance. written complaints.covisint.com or by using the following link: https://lear. delivery. download the Supplier User Manual at https://access2. supplier must certify product). The supplier must provide permanent corrective action implementation and verification of effectiveness. For those Lear facilities not currently using the SQTS system. Requirements: The supplier‟s System Administrator must enroll a minimum of two supplier contacts (i. Quality and Logistics representative) with access to this system at each of their locations that ship to Lear to respond to any QNs that are issued to the supplier‟s manufacturing location.

Scorecards are available for download on the 12th day of the following month.2 Copies of all updated Third Party Quality Certification with expiration dates for each manufacturing site that ships to Lear 17. Any discrepancies or disputes in data must be addressed to the individual Lear Plant providing the data. by written notification to the receiving Lear Plant(s) and to the Corporate or Regional Purchasing Buyer: 17. supplier must contact the Lear buyer to ascertain where to submit the required timing and forms.4 Copies of Notification of Third Party Containment 18. 18.1 QUALITY MANAGEMENT SYSTEM (QMS) REQUIREMENTS: Suppliers are required to: 18.1.1.1 All changes in supplier‟s “Remit To” information 17. in accordance with the guidelines in the Advanced Product Quality Planning and Control Plan (APQP) manual published by the Automotive Industry Action Group (AIAG).1 Download the ProFile Suppler APQP User Guide and communicate the requirements throughout your organization and manufacturing facilities.com Page 23 . storage of basic part information and Supplier APQP timing. Example: April 2008 scorecards were available on May 12.0 PRE-PRODUCTION and NEW PRODUCT LAUNCH REQUIREMENTS (APQP) All approved external production suppliers involved in pre-production and new product launches are required to formulate advanced quality plans to support the development of new products and/or services. 2008 External Production Suppliers are required to submit the information / documentation identified below. 18.covisint. If the Lear program is not on ProFile. ProFile can be accessed with the following link: https://lear.2 Utilize the Lear ProFile System ProFile is a web-based global project management software system that includes a part tracking system.3 Any changes in ownership of the supplier 17. Requirements: Supplier representatives at both the corporate and manufacturing level are required to download their monthly corporate and common scorecard data each month.

Acquisitions or Affiliations Past product / process concerns associated with a Supplier Impact on final product New supplier production location Past warranty concerns New supplier New product / process for supplier 19. F1 Supplier Risk Assessment for all assigned programs within 30 days of actual date sourced.1. Part Branding and Identification. but are not limited to: Product / process complexity New product / complexity for Lear Product specifications to FMVSS Product Environmental Impact or other applicable local statutory Supplier launch history and regulatory requirements Mergers.1. 18.1 SUPPLIER RISK ASSESSMENT: Purchasing.2 COMPONENT REVIEW MEETING (CRM): Page 24 .4 Enter Supplier APQP timing for each program in ProFile. i.3 Complete an electronic version within ProFile of form GPM 6.5 All suppliers shipping heat treated parts are considered high risk and are required to: Submit a completed AIAG CQI-9 Special Process: Heat Treat System Assessment Form as an attachment in the ProFile System to document the status of all in-house heat treat processes. Quality and Program Management will conduct Supplier Risk Assessments to determine those suppliers whose products are identified as “High- Risk” suppliers and will be tracked by Lear. 19.1. New product/process launch. 19. 18. Criteria include. tool kick –off approval and readiness measures are implemented to ensure that suppliers are able to produce in accordance with all requirements of the Purchase Order and customer requirements. 18.0 LAUNCH READINESS MEASURES: The responsible Lear Quality Engineer monitors and manages selected suppliers from new product release through the start of production. all out-sourced heat treated parts and/or all out-sourced heat treat services for all purchased and overseas components that are heat treated.1.e.

Page 25 . All documentation will be provided to the responsible Lear Quality Engineer. Lear and/or the OEM may participate in sub-supplier reviews.A.I. Compliance to the Process and Document Review does not relieve the supplier of it‟s responsibilities to comply with other specified A.e.com under Purchasing Downloads and Web Guides. part branding/identification. Specific OEM documentation may be required and will be communicated to the supplier by Lear Purchasing. It is the responsibility of the Lear Quality Engineer and the supplier to identify each representative part number that will be supported by the Supplier Document and Review sheets prior to PPAP submission. The cross-functional Lear Program Team identifies high risk suppliers and Document and Process Reviews are conducted by the Lear Quality Engineer. i. With sufficient notice. Suppliers are required to conduct CRMs with their own sub-suppliers and highlight/identify customer specific requirements. When requested by Lear. 19. who is responsible for auditing the supplier‟s documentation and manufacturing site as well as the supplier‟s progress in closing any open issues. It is the supplier‟s responsibility to obtain this information package from https://lear.Component Review Meetings are held with selected suppliers to identify key product/process characteristics that are to be statistically monitored to ensure stability.3 SUPPLIER DOCUMENT / PROCESS REVIEW: All external production suppliers are required to complete and return a Supplier Document and Process Review sheet for each representative part number that is scheduled to launch for the current year at the supplier‟s manufacturing location. Supplier Development – Information and Forms. It is a Lear requirement that the supplier will perform similar Document and Process Review audits with their sub-suppliers and provide that information to Lear upon request.covisint. Lear Quality Engineering has the authority to request this information or conduct an on site Document and Process Review audit at any time for parts produced by a supplier or sub-supplier for Lear.G. requirements. compliance to and the continued improvement of their overall product quality plan. The Supplier Document / Process review is utilized to demonstrate a supplier‟s progress. supplier shall permit reviews at supplier‟s or sub-supplier‟s site with Lear and OEM. Supplier is to use OEM specific documentation when requested by the Lear Quality Engineer.

Coverage must be provided for all shifts.covisint. Lear and/or the OEM may participate in the Run @ Rate at the supplier‟s site. selected suppliers may be required to provide on-site representation. Suppliers will be identified by the responsible Lear Quality Engineer. OEM specific documentation may be required and will be communicated by Lear Purchasing. Lear Quality will coordinate the Run @ Rate with the supplier in accordance with Lear Run at Rate Procedures. capable and empowered to make decisions. Suppliers will be selected based on past quality performance and/or complexity of components or assemblies being supplied. Suppliers are required to assure that Run @ Rate is conducted for all sub- suppliers and provide supporting documentation to Lear upon request. The supplier‟s launch support representative(s) must be knowledgeable.4 PRE-LAUNCH PRODUCTION TRIAL RUN: All suppliers are required to perform a Run @ Rate prior to PPAP. The Supplier Document and Process Review package is available at http://lear.com under Purchasing Downloads and Web Guides. Production Trial Run and Supplier Development and Process Review.5 LAUNCH SUPPORT: During any program launch at a Lear production facility. unless otherwise specified in writing by Lear. 19. Supper Development – Information & Forms. Any component or assembly that is identified as a safety or critical item or contains any special record retention requirements must have additional inspection implemented prior to Lear receiving the component or assembly Page 26 . When requested by Lear. When requested by Lear. It is the responsibility of the supplier to enter the completed Run @ Rate documents and open issues list as an attachment in ProFile. Lear and/or the OEM may participate in the Run @ Rate at the sub-supplier‟s site. to verify that the supplier‟s actual production process is able to meet program volumes at an acceptable quality level. Lear may request repeated Run @ Rates if the supplier‟s process does not meet the requirement. 19. supplier will create an Open Issues list which will be tracked by the responsible Lear Quality Engineer until closure. In the event issues are uncovered during the Run @ Rate. The supplier‟s process must be able to produce 115% of the quoted volume using production tools and equipment and within the actual manufacturing site and process.

Each component or assembly shipment must be certified for 30 days or 6 shipments of defect free product. out-sourced heat treat services for all purchased and overseas components that are heat treated. It is the responsibility of Lear Quality Engineer to approve part certification plans.6.6 PRODUCTION PART APPROVAL: 19.6. Any deviation to this requirement must be approved in advance and agreed by Lear in writing.  PMCRR-IMDS data must be updated per IMDS and customer requirements. according to the latest revision level. Suppliers will be identified by the responsible Lear Quality Engineer. which ever is the longest period of time.6.1 Suppliers are not authorized to begin production or ship material to Lear prior to obtaining full approval from the Lear receiving facility per the requirements of the AIAG Production Part Approval Process (PPAP) Manual. All maximum condition samples require the approval of the responsible Lear Quality Engineer.  If the Lear Plant is required to submit PPAP to their customer.5 All suppliers shipping heat treated parts are required to submit a completed AIAG CQI-9 Special Process: Heat Treat System Assessment Form as an attachment in the ProFile System to document the status of all in-house heat treat processes. 19. Suppliers may be required to attend key event builds prior to production launch. 19.6. 19. supplier to send the completed form to the responsible Lear Quality Engineer and the Lear buyer.  All PPAPs over one year old are to be updated UPON WRITTEN REQUEST from the Lear Plant.2 All sample submissions are to be Level 3 unless otherwise specified. 19. for launch. the supplier is responsible for establishing approved boundary samples with Lear prior to shipping. When cosmetic issues arise that cannot be addressed by use of the master samples. Specific OEM documentation may be required and will be communicated by Lear Purchasing.6. 19.4 PPAP samples shall serve as “master samples”. Page 27 . all out-sourced heat treated parts and/or all. all supplier PPAP documentation must be no more than one year old. For programs not on ProFile.3 Annual Layouts are required to verify continuing conformance on all parts and components.

Supplier may contact the Lear buyer for a copy.” Suppliers are to submit a completed “Request for Written Approval for Global External Production Suppliers to Change/Move Production Location” form to their Lear Corporate buyer and the Lear receiving plant(s) to obtain approval for a production location change. PPAP approval is required unless specifically waived in writing.covisint. Supplier Development – Tool Move.com under Supplier Downloads – Supplier Notification of Production Location Change / Move. Additionally.20.com under Supplier Downloads.covisint.2 PRODUCTION LOCATION CHANGES External Production Suppliers must obtain advance approval for ALL production Location changes from both Lear Purchasing and ALL receiving Lear facilities as required in the most current edition of the AIAG. Production Part Approval Process (PPAP) under “Customer Notification & Submission Requirements. Copies of the “Request for Written Approval for Global External Production Suppliers to Change/Move Production Location” are available at http://lear. all shared tooling must be called out and identified in the Tool Move Plan. Lear Program Management (for customer specific requirements) and the receiving Lear plant(s) is required for obtaining approval for the supplier location change.0 PRODUCTION PHASE / MANUFACTURING 20. Page 28 . Input from Lear Purchasing. Samples may be required for review and to evaluate potential impact on Lear‟s manufacturing processes. Supplier should request the appropriate documentation from Lear Purchasing and submit any change request at least 3 months prior to implementation.1 ALL PRODUCT / PROCESS CHANGES Advance written approval from the receiving Lear facilities and Purchasing is required for all changes to a supplier‟s product/process. Raw material changes must have completed validation testing and IMDS submission Refer to Section 3. The Tool Move Plan must include the requirements of a production bank to ensure Lear‟s Production and Service requirements are not affected. The following forms must be completed and submitted to Lear Purchasing for approval Copies are available at http://lear.1 of the AIAG PPAP 4th Edition for “Examples of Changes Requiring Notification” 20.

All questions that are answered as “NO” require an action plan and the action plan must in place prior to the shutdown period to insure compliance. Examples of Extended Shutdown/Start-up periods include Customer change- over. The subject line of the email should read: Company Name: SESSA Audit Response Copies of the “External Supplier Notification of Extended Shutdown/Start-Up Audit” document can be downloaded from http://lear.com and the Quality contact at each Lear receiving plant.covisint. Quality and ALL receiving Lear facilities must be notified in writing prior to a supplier‟s extended production shutdown and must submit a completed SESSA audit that covers all products at each of their manufacturing locations that ship to Lear. Supplier Development – Information & Forms. extended Holiday closings. 20. SESSA audits submitted for Union facilities that manufacture and ship product to a Lear facility must be submitted six (6) months prior to the actual Union contract expiration date.7 Attachment F – New Supplier Kick-off Checklist GPM 6.3 PPAP SUBMISSIONS OVER 1 YEAR OLD Whenever Lear is required to submit PPAP to their customer.com under Purchasing Downloads and Web Guides. GPM 6. unscheduled preventative maintenance for Tooling. or the anticipation of a work stoppage due to Union Contract Negotiations. all PPAPs over one year old are to be updated upon request by the receiving Lear Manufacturing location. 20. An Exit PPAP from the prior facility is also required and must be submitted and approved by the Lear plant. At that time.4 EXTERNAL PRODUCTION SUPPLIER EXTENDED SHUTDOWN/START-UP AUDIT (SESSA): Lear Purchasing. The complete audit(s) are submitted to the Lear Buyer and the responsible Lear Quality Engineer with a copy to the Supplier Development Mailbox at supplierdevelopment@lear.7 Attachment A – Lear Supplier Tool Move Request GPM 6. all external production Supplier PPAP documentation must be no more than one year old.7 Attachment G – Commercial Issues Checklist PPAP submission (Level 3 unless otherwise directed by the receiving plant) and approval from the Lear receiving plant is required prior to the shipment of production material from the new location.7 Attachment C – Supplier Move Checklist GPM 6. Machinery. customer directed) with Lear‟s customer. regardless of the supplier‟s business relationship (i. Page 29 .7 Attachment D – Site Assessment Checklist GPM 6.7 Attachment E – Tool Transfer Checklist GPM 6.e. Supplier Extended Shut Down Startup Audit Requirements.7 Attachment B – Bank Build Matrix GPM 6.

Requirements.0 EXTERNAL PRODUCTION SUPPLIER CONTROLLED SHIPPING STATUS: The Lear Production facility or Lear Management issues a Quality Notice (QN) in the Lear Supplier Quality Tracking System (SQTS) or in the Supplier Rating System. Lear‟s external production suppliers could obtain substantial savings to themselves and ultimately. Lear conducts Incoming Quality (IQ) meetings at the Lear production facility and division levels. Top problem suppliers are required to attend and present containment / corrective actions and are identified based on the following: Performance History of Repetitive Quality Issues Responsiveness to Concerns Severity of Issues Warranty Issues 21. to Lear. Level 1 or Level 2 as identified below: Page 30 . By developing and improving sub-contractors. the subcontractor is informed of customer requirements and expectations and develops the process foundation.5 SUB-CONTRACTOR DEVELOPMENT With the increasing demands of Lear‟s customers for higher quality at a lower cost. which is achieved through APQP (Advanced Product Quality Planning) and should include: Risk Assessments Component Review Meetings Supplier Audits Document & Process Reviews Run @ Rate procedures Through the APQP process. 20. the entire supply chain is responsible for increasing quality and contribution to a lower overall cost. It is Lear‟s expectation that all approved Lear external production suppliers work closely with their supply base to insure that the quality level of received product meets our requirements and expectations. The primary area of focus is in the communication and documentation of customer. The Lear facility initiates the written documentation to notify a supplier of Controlled Shipping Status.

1 CONTROLLED SHIPPING – LEVEL 1 CS Level 1 requires the supplier to implement extraordinary inspection of product to contain a specific failure. Items to be inspected can include: PFMEA Historic failure modes during launch Prototype phase quality issues (either internally at supplier or at the customer) Late engineering changes Federal Motor Vehicle Safety Standards (FMVSS) Requirements.21. or major discrepancies which have been identified during a process audit conducted by Lear. Safety Related Issues or Local Regulations Potential high-impact customer issues 21.2 CONTROLLED SHIPPING – LEVEL 2 CS Level 2 requires the supplier to provide an independent third party to inspect product separated from normal production process (unless otherwise specified by Lear) prior to release for shipment to the Lear production facility. The Lear Production facility. the responsible Lear Quality Engineer and the supplier must agree on the documentation required. the additional inspection for CS Level 1 will stay in place. Containment actions must verify that requirements are met and approved by the Lear production facility or the responsible Lear Quality Engineer. Regardless of introduction of CS Level 2. The supplier must verify that the actions taken meet all Lear requirements. Inspections and methods must be approved by the receiving Lear production facility. content and duration of containment. All containment actions must be documented according to Lear‟s requirements. CS Level 2 is initiated if the supplier fails to contain non-conforming product within their own facility. 21. Page 31 .3 DETERMINATION OF CS LEVEL 1 STATUS CS 1 is required when extraordinary inspections have to be implemented due to failures which have been detected by Lear.

at a Lear production facility etc. f) Track clean point of non-conforming material. b) Ensure understanding of the nonconformance. If the receiving Lear Plant has implemented the SQTS System. SRS Common Vendor number. g) Provide proper layout and instruction documents. m) Report results and findings to the Lear receiving plant(s) on a daily basis. material in transit. d) Purge pipeline of suspect material. Page 32 . j) Perform corrective actions including all steps of the 8D process. storage.g. n) Meet defined exit criteria. e. l) Conduct a daily management meeting at the sort location. to identify parts certified for production. Location and Supplier Contact Information b) Program. Containment can be placed in line after final inspection or may be located off line in a separate area. space and tooling. c) Return confirmation reply as required. Customer c) Number of non-conformances d) Date CS 1 status initiated e) List of all defined exit criteria This information must be included in the Supplier‟s Containment Summary to provide cross communication between the Lear plants with common suppliers and for use in future sourcing activities. as agreed with Lear production facility. 21. material and containers are to be marked. informing them of the nonconformance and provide containment activities as required.4 ADDITIONAL SUPPLER INFORMATION – CS LEVEL 1 The supplier is notified in writing of the containment status by the Lear production facility. k) Review corrective actions for effectiveness and take further actions if required to eliminate issue long term. i) Parts. all related documentation will be contained within the Quality Notice (QN). The supplier is required to: a) Immediately establish a containment process at its location. The Supplier must confirm CS Level 1 Status within 24 hours and include supplier contact information and detailed action plan. e) Commence the sort activities and display the results in a public and visible location. h) Notify all additional Lear facilities or customer facilities that receive the same part. The supplier must provide the following information: a) Supplier Name.

Inspections and methods must be approved by the receiving Lear production facility. 21. the supplier is immediately required to: 1) Contact a third party inspection source for the controlled shipping inspection. 2) Issue a purchase order to the controlled shipping third party inspection source within 24 hours of receiving the CS Level 2 QN or letter and forward a copy of the purchase order for 3rd party inspection services to the Lear Plant. 3) Provide adequate trained resources to continue with CS Level 1 inspections. FMVSS or Local Regulation issues c) There is a risk in the field with the Customer The supplier must verify that all actions taken meet all Lear requirements. The Lear production facility will inform the supplier in writing of release from containment through the closure of the QN in the SQTS system or other applicable system in use at the receiving facility.7 EXIT CRITERIA FOR CS LEVEL 2 The Exit Criteria is based on long-term corrective actions and results by the supplier and must be approved by the Lear production facility.5 EXIT CRITERIA FOR CS LEVEL 1 The Exit Criteria is based on long term actions and results and must be agreed by the receiving Lear production facility. All containment actions must be documented according to Lear‟s requirements. The third party inspection source and contact details must be included in the initial response and be approved by the responsible Lear Quality Engineer. In addition to maintaining the requirements of CS Level 1 activities.6 DETERMINATION OF CS LEVEL 2 STATUS CS Level 2 requires the supplier to inspect all suspect parts in an area separate from their normal production process (unless otherwise specified by Lear) prior to shipment to Lear by an independent third party inspection source. 21. the supplier must submit corrective action plans to its Quality Registrar for review and/or assessment and authorize its registrar to submit the review and/or assessment findings to the customer.21. 4) If requested by Lear. The supplier‟s release from containment is given in writing by the Lear Page 33 . CS Level 2 may be initiated if: a) The supplier has failed to contain non-conforming products in Launch Containment and/or CS Level 1 status b) There is Safety related.

Premium Freight Costs including Air Charter.00 (US) or €75. as applicable in the region. associated with Scrap and Replacement Material . Page 34 . Major or Complete) and Outside Lab Testing .Rework / Repair (Supplier Fault) .Receiving Inspection. ADMINISTRATIVE CHARGE .Delays in Customer PPAP or other approvals based upon submission of the necessary data to Lear IMDS Site 632 in a timely and accurate manner or caused by the presence of substances of concern.On-Line Containment .Production Downtime for Lear and End Customer . and includes but are not limited to the following: EXTERNAL PRODUCTION SUPPLIERS – Charges to external production suppliers will be based on local rates of the affected Lear manufacturing location but will not exceed $75.00 (Euro) per hour. Material Handling and Freight transportation on on-site inspections. OTHER CHARGES .the following types of charges will be calculated on the actual time incurred for the associated action: EXAMPLES OF COSTS THAT CAN BE CHARGED BACK TO THE SUPPLIER: . if required . Failure to meet exit criteria for CS Level 2 may result in new business hold status (NBH). Refer to the guidelines below regarding applicable chargebacks to external suppliers.Tear-Down (Minor.0 COST RECOVERY POLICY: External Production Suppliers are liable for all costs incurred by Lear per the Lear Purchase Order Terms and Conditions.Sorting of Suspect Material In-House.Each Quality Notice (QN) has an administrative charge of 2 hours minimum covering the collection of data and documentation of the quality incident/spill.Customer Returns including hourly charges.Disposition of Scrap (Supplier Fault) . . production facility and is co-authored with Lear Platform Quality and Supplier Development. at Customer Location or Third Party Warehouse and Contractor Costs .Overtime to Avoid Production Interruption . The Lear Plant SQE/Quality Manager can replace CS Level 2 with CS Level 1 if the long-term solution lead-time is too long and the reliability of supplier performing CS Level 1 is acceptable. Supplier may contact the Lear buyer for the rate in the specific Lear location. 22.

0 CHANGE CONTROL: Date of Change Change Description .7 Marking revised to reflect updated customs requirements Page 35 .contact: suppliersqts@lear.lear. contact your Supplier System Administrator for a user ID and password. 23. No Supplier System Administrator? Sign on to lear.0 HELP Expired or Missing Supplier Quality & Environmental Certificates: send new certificates to: Suppliercertificates@lear.com to register an administrator for your corporate office.com.contact the Lear plant originating the QN Supplier Issues with SQTS .Purchasing Leaders January 2012 . Please include your supplier vendor number in the "Subject Line" of your email or fax paper copies to (248) 493-5999.com 24.Section 11.com. Minority and Environmental.covisint. Supplier SRS Issues . Health and Safety Policies .1.covisint.com Lear‟s public supplier website: https://lear.Revised Quality. To access the Supplier SRS scorecards at https://access2.