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The supplier acknowledges that this Supplier Handbook constitutes proprietary and confidential business information of Tesla Motors,

Inc. By receiving and reviewing this Supplier Handbook, the supplier agrees to maintain confidentiality of this Supplier Handbook and its
contents in strict accordance with Tesla’s current form of one-way non-disclosure agreement or, if applicable, the signed non-disclosure
agreement then in effect between Tesla and the supplier.

Supplier Handbook
BMS-0000051 | Revision 06

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BMS-0000051 Supplier Handbook Revision 06

Foreword
Revision 06 of this document brings significant changes to both BMS-0000051 (this
document) and BMS-0000258 (“Supplier Quality Assurance Manual”).

As of this revision, the last revisions of BMS-0000051 and BMS-0000258 have been
combined under the label BMS-0000051. As a result, BMS-0000258 is now obsolete.

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Contents
Section 1 Introduction ....................................................................................................... 4
Section 2 Document Purpose & Structure .......................................................................... 4
Section 3 General Expectations & Procedures .................................................................... 5
3.1 Supplier Responsibilities ............................................................................................................... 5
3.1.1 Senior Management Responsibilities....................................................................................... 5
3.1.2 Confidentiality .......................................................................................................................... 6
3.2 Quality Management System (QMS) Requirements..................................................................... 6
3.2.1 Quality Activities ...................................................................................................................... 6
3.3 Industry Standards ...................................................................................................................... 10
Section 4 Supplier Assessment and Qualification ............................................................. 11
4.1 Assessment and Qualification Process........................................................................................ 11
4.1.1 Supplier Assessment .............................................................................................................. 11
4.1.2 Supplier Qualification and Nomination.................................................................................. 12
4.1.3 Assessment Corrective Action ............................................................................................... 12
4.2 Audits .......................................................................................................................................... 12
4.2.1 Process Audits ........................................................................................................................ 12
4.2.2 Safety Critical Audits .............................................................................................................. 13
4.3 Supplier Risk ................................................................................................................................ 13
4.4 Supplier Performance Feedback ................................................................................................. 13
Section 5 General Requirements ...................................................................................... 14
5.1 Safety & Critical Characteristics .................................................................................................. 14
5.1.1 Safety Critical Components and Characteristics .................................................................... 14
5.2 Change Control ........................................................................................................................... 15
5.2.1 ECO - Engineering Change Order ........................................................................................... 15
5.2.2 PCR - Process Change Request ............................................................................................... 15
5.3 Control Plans ............................................................................................................................... 16
5.4 MSA - Measurement Systems Analysis ....................................................................................... 17
5.5 MPR - Mating Parts Request ....................................................................................................... 18
5.6 Transportation Requirements ..................................................................................................... 18
5.6.1 Packaging ............................................................................................................................... 18
5.6.2 Labeling .................................................................................................................................. 19
5.6.3 Preservation ........................................................................................................................... 19
5.6.4 Shipping .................................................................................................................................. 19
5.6.5 Invoicing ................................................................................................................................. 20
5.6.6 Certificate of Compliance....................................................................................................... 21
5.7 Regulatory Compliance ............................................................................................................... 21
5.7.1 Material Regulatory Compliance ........................................................................................... 21
5.8 Nonconforming Parts .................................................................................................................. 21
5.8.1 Deviation Approval................................................................................................................. 22
5.8.2 SCAR - Supplier Corrective Action Request ............................................................................ 22
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5.8.3 Product Containment / Controlled Shipping.......................................................................... 23


5.8.4 Warranty ................................................................................................................................ 24
5.9 HVPT- High Volume Production Trial .......................................................................................... 25
Section 6 TQP - Tesla Qualification Process ...................................................................... 26
6.1 Overview ..................................................................................................................................... 26
6.2 Specification ................................................................................................................................ 27
6.2.1 Program Schedule .................................................................................................................. 27
6.2.2 Inspection Standard ............................................................................................................... 27
6.2.3 Measurements Systems Analysis (MSA) for Equipment Proposal ......................................... 28
6.2.4 Control Plan (Prototype) ........................................................................................................ 28
6.2.5 2D Drawing GD&T .................................................................................................................. 29
6.2.6 Design for Manufacturing (DFM) Complete........................................................................... 29
6.3 Process Setup .............................................................................................................................. 30
6.3.1 Process Flow Chart ................................................................................................................. 30
6.3.2 PFMEA - Process Failure Mode and Effects Analysis ............................................................. 30
6.3.3 Control Plan (Production) ...................................................................................................... 31
6.3.4 Measurement Systems Analysis (MSA) for Equipment Acceptance ...................................... 31
6.4 Process Validation ....................................................................................................................... 32
6.4.1 Measurement Systems Analysis (MSA) for Equipment Validation ........................................ 32
6.4.2 Validation Testing................................................................................................................... 32
6.4.3 Capacity Study ........................................................................................................................ 32
6.4.4 Capability Study ..................................................................................................................... 33
6.4.5 SDS - Sample Data Sheet ........................................................................................................ 34
6.4.6 AAR - Appearance Approval Report ....................................................................................... 35
6.4.7 Packaging Plan........................................................................................................................ 36
6.4.8 Control Plan (Safe Launch) ..................................................................................................... 36
6.5 Implementation .......................................................................................................................... 38
6.5.1 Material Regulatory Compliance Submissions....................................................................... 38
6.5.2 Safety Regulatory Compliance Submissions .......................................................................... 38
6.5.3 Traceability ............................................................................................................................. 38
6.5.4 PFS - Problem Follow Sheet ................................................................................................... 38
6.5.5 TQP Approval ......................................................................................................................... 39
Section 7 Appendix .......................................................................................................... 40
7.1 Abbreviations & Definitions ........................................................................................................ 40
7.2 External Contact Information ..................................................................................................... 41
7.3 Critical Characteristic Symbols and Definitions .......................................................................... 42
Section 8 References ....................................................................................................... 44
Section 9 Revision History................................................................................................ 45

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Section 1 Introduction
The Supplier Handbook is intended for suppliers who directly supply parts and/or
materials to Tesla. It serves to work in conjunction with relevant industry standards and
to provide clarification of Tesla’s requirements and expectations.

Tesla is committed to operating as a world-class innovative leader, and to support that


commitment, suppliers are chosen based on their operating excellence and
methodologies. We frequently evaluate our suppliers and thoroughly look forward to
doing continued business with those who have Tesla’s best interests in mind.

As a business partner, your feedback is extremely valued and we encourage you to share
your input on all areas covered in this and any other documents, or in any other aspects
of our business. Site visits to Tesla are also encouraged and you should at all times feel
free to provide feedback, whether minor or major.

Section 2 Document Purpose & Structure


This document covers Tesla’s operating standards and aims to guide suppliers, step-by-
step, towards a successful mass production program using the default tasks and stages.
Tesla representatives are permitted to have suppliers deviate from some of these tasks,
or part thereof, and may choose to do so if deemed appropriate.

This and all pertaining documents should be read as soon as physically possible, to ensure
a clear understanding for all who are involved of their responsibilities. Several documents
are referenced throughout this document and may be found on the Supplier Portal, or as
otherwise noted, if controlled by Tesla. Documents that are not controlled by Tesla, such
as industry standards, must be obtained separately from an appropriate organization.

This document is best viewed digitally to make use of internal links; individuals using a
hard copy are responsible for ensuring that they are using the latest revision. Any future
revisions become effective upon issuance to the supplier.

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Section 3 General Expectations & Procedures


3.1 Supplier Responsibilities
1. Suppliers are expected to provide 100% conforming products, on time and in the
specified quantities, along with all required supporting data.
2. Suppliers shall immediately and openly communicate with Tesla any quality or
delivery related problems and are expected to respond to issues immediately.
3. Suppliers shall leverage their expertise and provide feedback on part or process
devised by Tesla to highlight concerns or improvements that could be made to
meet quality requirements, reduce cost, time, yield, etc. Lack of feedback shall be
deemed as acceptance of the design and process.
4. Suppliers are strongly encouraged to apply continuous improvement techniques
that impact quality, service and cost.
5. Suppliers shall maintain a contingency plan to satisfy Tesla’s requirements in the
event of an emergency. These plans, and those of all sub-suppliers, are to be made
available upon request to Tesla. Emergencies may include, but are not limited to,
utility interruptions, labor shortages, key equipment failures and warranty
returns.

3.1.1 Senior Management Responsibilities


Supplier Senior Management shall:

1. Oversee the quality planning and quality system activities as well as all regulatory
compliance activities.
2. Ensure all Tesla documentation is understood and followed within the supplier’s
organization.
3. Ensure adequate resources are provided to meet all Tesla requirements and all
related departments are trained in regards to the requirements and guidelines of
this document.
4. Ensure the control and retention of document copies and any subsequent
revisions provided by Tesla.
5. Oversee quality of communication and documentation released to Tesla and
ensure clear and concise information and information integrity.
6. Ensure control and retention of documentation regarding regulatory compliance
for the time periods required by specific regulations (up to 30 years after end of
production in some cases).

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3.1.2 Confidentiality
In addition to the Non-Disclosure Agreement, the following is required:

1. The Supplier shall establish a system to manage confidentiality that begins at


sourcing decision and continues through the life of the part.
2. Any data, information, or knowledge (general and specific) obtained through
activities with Tesla shall be securely controlled, treated with strict confidence,
and properly destroyed when no longer necessary.
3. Any breach of confidentiality, or concerns, must be reported to Tesla management
immediately.

3.2 Quality Management System (QMS) Requirements


1. The quality system shall be defined and documented to describe the requirements
for all quality related activities.
2. The supplier shall establish, document, and maintain a quality management
system as a means of ensuring that the product conforms to the specified
requirements.
3. Quality records shall be maintained to demonstrate conformance to specified
requirements and the effective operation of the quality system.
4. The quality system shall ensure all quality activities have been properly
implemented during trial builds and monitored thereafter.
5. The system shall, at a minimum, meet Tesla’s Supplier Handbook requirements. It
is also desired that the quality system is certified to the ISO 9001 and/or ISO/TS
16949 standards.
6. Quality Reporting:
 The supplier shall use the Supplier Portal to submit all required documentation
and evidence.
 The supplier will also receive approval for individual tasks and part status
through the Supplier Portal.
 Extra data designated by Tesla may be required to be reported.

3.2.1 Quality Activities


The supplier is responsible for the following activities needed to ensure products are
consistently manufactured to Tesla requirements.

1. Program Schedule
 The supplier shall establish advanced quality planning as part of the overall
program based on timing provided by Tesla.

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2. Process Monitoring and Operator Instructions


 The supplier shall prepare documented process monitoring and operator
instructions for all employees having responsibilities for operation of a
process or processes.
 These instructions shall be accessible at the workstation and include
proper visual aids.
3. Verification of Equipment Set-ups
 Equipment set-ups shall be verified whenever a set-up is performed (e.g.,
initial run of a lot, material changeover, tool change, etc.).
 Change-over instructions shall be available for set-up personnel.
 First-off, last-off part comparisons are recommended.
4. Receiving Inspection
 The supplier shall ensure incoming product is inspected, or otherwise
verified, as conforming to specified requirements.
5. In-Process Inspection and Test
 The supplier shall inspect and test the in-process product as required by
the relevant control plan or documented procedures.
6. Final Inspection and Test
 The supplier shall carry out all final inspections and testing in accordance
with the relevant control plan or documented procedures.
7. Inspection and Test Records
 The supplier shall establish and maintain records which provide evidence
that the product has been inspected and/or tested.
8. Inspection Measuring and Test Equipment
 The supplier shall establish and maintain documented procedures to
control, calibrate, and maintain inspection, measurement and testing
equipment.
9. Internal Quality Audits
 The supplier shall plan and implement internal quality audits to verify
whether quality activities and related results comply with planned
arrangements.
 Results shall be made available to Tesla upon request.

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10. Quality Records


 Quality records shall be maintained to demonstrate conformance to
specified requirements and the effective operation of the quality system.
11. Engineering Change Order (ECO) Implementation
 The supplier shall have a system in place for the control and
implementation of Engineering Changes. Process flow and standard timing
must be made available on request.
12. Process Change Implementation
 The supplier shall have a system in place for the control and
implementation of process changes.
13. Nonconforming Parts
 The supplier shall establish and maintain documented procedures to
ensure that parts which do not conform to specified requirements are
prevented from unintended use, installation or shipment.
14. Packaging, Labeling, Preservation and Shipping
 The supplier shall establish and maintain documented procedures for
handling, storage, packaging, preservation and delivery of product.
15. Training and Qualification of Team Members
 The supplier shall effectively manage a comprehensive training program
for all employees. Individual needs shall be identified through an
evaluation process that includes references to retained employee training
records.
 Employees working on Tesla projects are expected to have completed a
comprehensive training program which focuses on developing the
employees’ capabilities and motivation.
 All training necessary to meet Tesla objectives shall be completed by the
first off process trial.
 The supplier should develop a method for documenting team members'
progress and capability.
16. Identification and Traceability
 The supplier is responsible for preparing the Inspection Standard.
Identification and Traceability information should be included in the
original draft.
 Identification and Traceability actions must comply with the requirements
set on the Engineering Drawing and/or Inspection Standard.
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 Identification
The supplier must adhere to the identification requirements specified on
the part drawing or Inspection Standard. In cases where there is no
specification, the supplier must work closely with Tesla to determine the
appropriate level of identification that must be agreed upon.

 Traceability
Each supplier must control the traceability of their own and sub-suppliers
products, from received raw materials through shipping. Where
appropriate, suppliers are encouraged to add serial numbers, or other
forms of traceability to each part.

17. Sub-Supplier Control


 The role of the Tier 1 supplier in coordinating and guiding all sub-supplier
quality assurance activities must be similar to the Tier 1 suppliers’
requirements in this document.
 The Tier 1 supplier is responsible for the part quality and production
readiness of all sub-supplier’s (directed by Tesla or otherwise), as well as
evaluating all sub-supplier's parts / materials and conducting quality
approvals.
 Tesla MUST NOT be delayed by a sub-supplier being unprepared for Mass
Production start-up.
18. Supplier Contact Sheet
 A Supplier contact sheet shall be submitted to Tesla to identify key
personnel to be contacted in the event of a quality problem or concern.
 The contact sheet shall be re-submitted to Tesla as changes occur.
19. Annual Validation
 Suppliers may be required to perform annual assessments per the
direction of Tesla.
 Assessments may include, but are not limited to: On-Going Reliability
Testing (ORT), layout, testing as possibility, etc.
20. Regulatory Compliance Management Process (RCMP)
 Suppliers shall implement an RCMP to ensure that pertinent product
substance data is gathered from their supply chains, reviewed for accuracy
and adherence to data structure requirements, consolidated into a single
compliance profile for each product and submitted to Tesla in a timely
manner.
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3.3 Industry Standards


Where applicable to their business, suppliers shall maintain the latest revisions of the
standards shown below. Applicable assessments must be conducted annually at a
minimum and the results made available to Tesla.

1. AIAG - Advanced Product Quality Planning (APQP) and Control Plan


2. AIAG - Failure Mode & Effects Analysis (FMEA) Reference Manual
3. AIAG - Measurement Systems Analysis (MSA) Reference Manual
4. AIAG - Production Part Approval Process (PPAP)
5. AIAG - Statistical Process Control (SPC)
6. CQI-09 - Heat Treat System Assessment
7. CQI-11 - Special Process: Plating System Assessment
8. CQI-12 - Coating System Assessment
9. CQI-15 - Welding System Assessment
10. CQI-17 - Special Process: Soldering System Assessment
11. CQI-23 - Molding System Assessment

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Section 4 Supplier Assessment and Qualification


The following is a guideline of the requirements for supplier evaluations, including use of
Tesla sourcing, parts and process audits, process sign-off audits and supplier feedback.

4.1 Assessment and Qualification Process

Yes No
Supplier Supplier Need Formal Supplier Notify
Proceed?
Screening Profile Assessment? Assessment Supplier

Yes
No

Supplier Assessment

Tesla Qualification Process (TQP)

Yes No
Improvement Status: Status:
Plan On Hold Development?
Phase-Out

No No

Yes
Approved Process Status: Production
Supplier List Development Acceptable? Approved Deliveries Acceptable?

Yes

4.1.1 Supplier Assessment


An on-site evaluation may be performed during Tesla’s planning stage for each potential
new supplier, in order to estimate the level of success of the program associated with
each supplier. When the assessment is complete, the total score will be categorized as
follows:

91% - 100% Exceptional


81% - 90% Preferred Supplier
71% - 80% Good Supplier
61% - 70% Fair Supplier
< 60% Unacceptable

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4.1.2 Supplier Qualification and Nomination


The criteria for evaluation will consider the following:

 Engineering  Program Management


 Financial Stability  Quality
 Logistics  Supplier Management
 Manufacturing Processes  Tool Cost
 Piece Price Cost  Tool Management

The result of the sourcing audit (if required) will be considered during the supplier
nomination process. If the assessment shows satisfactory results and all commercial
points are in order, the supplier will be qualified and added to Tesla’s approved suppliers
list.

4.1.3 Assessment Corrective Action


1. In the event the assessment reveals that corrective actions must be completed
before a supplier can be qualified, an action plan will be requested from the
supplier for the elements that were identified during the assessment.
2. The supplier shall provide a corrective action plan to Tesla within 14 days of
notification, stating clearly the corrective actions to be taken and indicating the
planned implementation date for each corrective action.
3. The supplier shall update Tesla at planned intervals on the progress for the
corrective action.
4. The supplier shall notify Tesla when all corrective actions have been implemented.
5. Once the corrective action implementation is complete, Tesla may decide to re-
audit the supplier. Alternatively, verification of the corrective actions may take
place during subsequent audits.

4.2 Audits
4.2.1 Process Audits
 During New Product Introduction (NPI) or modification, Tesla may decide to carry
out a process audit. This audit covers both documentation and process
implementation, and will be carried out at a suitable point in time.
 Tesla may decide to re-audit once all corrective actions have been implemented
or at an appropriate point in time.
 Suppliers must assign an internal audit champion responsible for conducting, at
minimum, annual audits to ensure all processes meet Tesla’s requirements.
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4.2.2 Safety Critical Audits


Tesla will carry out audits on safety critical components and processes, at intervals
deemed necessary by Tesla. As a result of the audit, the supplier may be issued with non-
conformances. The Supplier shall be required to develop and submit a corrective action
plan to Tesla within 14 days of the audit. The supplier shall provide regular updates on
corrective action and implementation until the issues are closed.

4.3 Supplier Risk


Suppliers may be assessed on their risk to the overall success of a Tesla project. Suppliers
that are deemed a risk, or a potential risk, may be required to participate in additional
monitoring and development activities, as decided appropriate by Tesla.

4.4 Supplier Performance Feedback


Suppliers will be provided with feedback and assigned a score according to their
performance. Poor performance can result in disqualification of the supplier and removal
from Tesla’s approved suppliers List. Suppliers may be asked to supply a corrective action
plan addressing problem areas in order to remain eligible for continued or future
business. Suppliers will be assigned one of four following classifications as a result of their
ongoing performance.

1. Preferred: Strategic relationship built on a variety of factors.


2. Approved: Supplier meets quality and service requirements.
3. On Hold: Supplier won’t receive new business until issues are resolved.
4. Phase Out: Supplier will eventually no longer be used to supply selected parts.

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Section 5 General Requirements


5.1 Safety & Critical Characteristics
1. Critical characteristics shall be identified based on features that are critical to
safety, reliability, function or fit and/or by FMEA methods to identify important
features of high risk.
2. Critical characteristics shall be identified on the Drawing and Inspection Standard
using the symbols in Section 7.3.
3. For critical features, Tesla requires the submission of Process Performance (Ppk)
data for trial builds and Process Capability (Cpk) data for parts produced after start
of production (refer Section 6.4.4 for details). Trial builds include all builds from
the prototype stage through start of production.
4. Suppliers must identify critical characteristics on their Inspection Standards,
Control Plans, Work Instructions, Process Flow Charts, and other relevant
documentation also using the symbols shown in Section 7.3.

5.1.1 Safety Critical Components and Characteristics


Tesla requires suppliers of safety critical components (components that contain safety
critical characteristics, as indicated on the components drawing using the symbols
defined in Section 7.3) to demonstrate that they control all aspects of the manufacturing
process. The following requirements shall apply:

1. When assigning personnel to the production of a safety critical component, the


supplier shall:
 Ensure that all personnel involved in the manufacturing and testing of
these components have completed designated training and demonstrate
the required level of skill and knowledge to carry out the process.
 Maintain training records for all employees that clearly show the
employees ability to work on a product with safety critical characteristics.
2. All test equipment used to verify a safety critical component shall be listed on the
Control Plans.
3. All test equipment and machinery used in the manufacturing of a safety critical
component have an associated preventative maintenance plan.
4. No alterations to the manufacturing process are permitted without approval from
Tesla. Approval must be obtained prior to shipment of parts and may require a
new Tesla Qualification Process (TQP) submission; refer Section 6 for details.
5. The supplier shall audit processes used to produce safety critical components at
regular intervals. Records shall be available to show the audit findings and
corrective actions.
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6. Where safety critical characteristics are subject to a sub-supplier’s process control


plan, Tesla requirements shall be applied to the sub-supplier.
7. The supplier shall be able to demonstrate process capability for processes used to
produce parts with safety critical characteristics. Each characteristic must have a
Process Capability, in accordance with requirements in Section 6.4.4, or
documented inspection and / or verification date to show appropriate process
control.
8. Notification must be provided for any rework that could impact a safety critical
characteristic. Where practical, a Tesla approved indelible mark shall be used to
identify reworked parts. All records shall be retained for part identification.
9. Safety critical components have batch control and/or traceability requirements
which must be met, as outlined in BMS-0000151 - Traceability Specifications.

5.2 Change Control


5.2.1 ECO - Engineering Change Order
ECO’s are issued to suppliers by Tesla for changes to the design drawing or specifications.
They can apply to any part, from the time of drawing issuance through the life of the part.

1. The supplier shall have a system in place for the control and implementation of
engineering changes.
2. The supplier must receive approval of their project plan prior to the start of
implementation.
3. Prior to implementation of an ECO, it is the supplier's responsibility to update any
internal standards, Inspection Standards, Control Plans, etc. to reflect ECO
changes and submit to Tesla for approval.
4. ECO’s should be implemented in a timely manner, in accordance with instructions
from Tesla.
5. ECO’s shall not increase the applicable Purchase Price or change the applicable
Schedule unless such change is expressly approved in writing by an authorized
Tesla representative.

5.2.2 PCR - Process Change Request


PCR’s are used to ensure part quality by identifying and controlling any process changes
following initial TQP approval, and to ensure adequate communication with Tesla.

1. The following are guidelines only, subject to Tesla approval:


a. PCR approval is required for:
 Addition or replacement of tooling or machines for mass production.
 Manufacturing location changes within a plant or to a new location.
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 Significant manpower change (additional shift, etc.)


 Changes in approved production process, tooling and/or layout, process
flow, inspection & testing etc. in sub-supplier approved production
processes.
 Change of sub-supplier for parts or raw materials.
b. PCR approval is not required for:
 Relocation of small tools, jigs, fixtures that are not part of the main
production line and do not affect process or part quality.
 Regular replacement of perishable tools or preventative/predictive
maintenance.
 Minor day-to-day Kaizen activity.
2. The “Completed by Supplier” portion of the Plan Stage on the PCR form, along
with supporting documentation, is to be completed and submitted to Tesla in
advance. The supplier must not proceed with any process change without having
approval from Tesla on the PCR.
3. Tesla will determine what requirements (trial quantity, documents, data, etc.) will
be necessary for PCR approval.
4. The required parts/data will be reviewed by Tesla and a decision made whether
to proceed with a trial or mass production; neither can begin until an approved
PCR is received from Tesla.
5. The “Mass Production” section of the PCR must be completed and sent to Tesla
prior to the initial shipment.
6. Tesla will record the initial vehicle number, sign and return the completed PCR to
the supplier.
7. PCR’s shall not increase the applicable Purchase Price or change the applicable
Schedule unless such change is expressly approved in writing by an authorized
Tesla representative.

5.3 Control Plans


A Control Plan is used to define all key process and part control points, control criteria
such as location, target, method and frequency of checks, from incoming material to
shipping of finished goods. It is recommended that the supplier use cross functional teams
to develop any Control Plans.

1. The supplier shall prepare a Control Plan, as specified by Tesla, for all products
supplied during a TQP development stage or stages. Several control plans are used
throughout the TQP approval process and are detailed further in their respective
locations.
2. The Control Plan should be updated as necessary for process changes or corrective
actions.
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3. The Control Plan may be submitted in the supplier’s format; however, it must
meet all of the requirements below:
 The identification of all special & critical Characteristics using the correct
symbols.
 The identification of other specific characteristics on the part inspection
standard.
 Identification of measurement equipment or data collection where
applicable.
 Detailed reaction plans with designated responsibilities.
 Process, machine, and part potential failure modes must be identified and
utilized to develop the Control Plan in order to ensure that potential failure
causes can be controlled and monitored.
 The Control Plan should consist of additional controls, inspection audits,
and testing to identify non-conformances during the production process.
 Consideration should be given to the build quantities required when
establishing inspection frequencies.

5.4 MSA - Measurement Systems Analysis


1. Suppliers are expected to provide all technical staff and facilities required to
develop robust part and process control systems.
 When control systems involve the acquisition of information (e.g.
measurement data), the supplier shall ensure the information is at a
quality level that allows for valid data analysis.
 The measurement system used to acquire part and process information
shall be developed, validated, and available for use to support all
associated control plans and inspection standards.
2. Suppliers shall adhere to all requirements set in the following standards, found on
the Supplier Portal:
 TS-0003139 - Gauge and Check Fixture Standard
 TS-0003403 - Dimensional Data Transfer
 TS-0003413 - Measurement Systems Analysis Standard
 TS-0003552 - GRR
 TS-0003687 - Gauge and Check Fixture Buyoff Check Sheet
 TS-0003986 - MDSS
3. Validation of the measurement system shall include, but is not limited to, evidence
of calibration certification traceable to a national or international certifying body,
control and maintenance planning, proper use instructions, and validation of the
quality of data collected (e.g. GR&R).

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4. Suppliers must submit requests in writing to Tesla through the PCR process to
obtain approval prior to implementing any changes. Changes may be needed as a
result of:
 Engineering Change Order (ECO)
 Part Inspection Standard change
 Process change
 Repair (major damage; outside of normal maintenance)
5. Before disposing of any Tesla owned equipment or tools (eg. checking fixtures,
etc.), the supplier must contact their Tesla representative and receive written
authorization.

5.5 MPR - Mating Parts Request


The MPR form gives the supplier the opportunity to request parts for quality purposes.
Tesla will provide mating parts when there is good reason, it is feasible, and cost effective.
The Tesla format provided in BMS-0000259 - Supplier Quality Toolkit must be used.

1. Tesla will consider any MPR and respond by supplying mating parts, or a reason
for declining the request.
2. Tesla will have the final decision regarding the necessity and use of mating parts.
3. If Tesla grants a mating part to a supplier, the supplier must ensure that the mating
parts used for their testing and other purposes are always the latest version.
4. If there are significant changes to the supplier-provided part that substantiates a
need for a new mating part, the supplier must submit a new request.
5. Mating parts that have been provided must be returned to Tesla or disposed of as
directed by Tesla.

5.6 Transportation Requirements


To ensure part quality, the supplier shall establish a system to assure that all parts shipped
to Tesla meet the below requirements. Documentation of all Tesla transportation
requirements shall be maintained by Tesla’s part number.

5.6.1 Packaging
1. Tesla standards Packaging Material and Equipment Codes, Domestic Expandable
Standards and Overseas Expendable Standards shall be followed.
 All pack size, packaging, container or pallet dimensions and/or type shall be
pre-approved by the appropriate Tesla representative(s).
 The supplier must receive approval for temporary use of packaging which
does not meet requirements.

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2. Considerations must be taken when selecting packaging types to ensure adequate


part protection, safety concerning hazardous materials and cost are adequately
addressed.
3. Submission requirements may be found under Section 6.4.7.
4. Tesla packaging standards for both Domestic Expendable Packaging and Overseas
Expendable Packaging are located on the Supplier Portal.

5.6.2 Labeling
There are two methods to comply with Tesla’s labeling requirements:

1. Suppliers providing advance shipment data via the Supplier Portal must print the
shipping labels directly from the Portal and attach to the Product (Pallet and Box
labels). No other label formats will be considered compliant.
2. Suppliers providing advance shipment data via ASN EDI must generate their own
shipping labels (Pallet and Box) according to Tesla Standards BMS-0000003 -
Shipping Label Specification and submit the labels for approval by the Tesla EDI
team. (Please reach out to TeslaEDI@teslamotors.com for more detail).

Labeling procedures should have annual audits of label content to confirm that all
information on the label is correct and up to date.

5.6.3 Preservation
1. The supplier shall establish and maintain a material handling system that
eliminates the potential for damage throughout all operations and transportation
to Tesla facilities.
2. The supplier shall systematically review material handling processes and
equipment to prevent damage to in-process parts and finished goods.
3. Adhesives and other perishable or environmentally sensitive products should be
stored and transported in the appropriate environmental conditions.
4. Suppliers should consider Tesla usage in order to maintain the required shelf life
for material performance.

5.6.4 Shipping
1. The supplier shall ship all materials in conformance with Tesla transportation
routings.
2. The supplier shall maintain a file that includes documentation demonstrating that
it has adhered to specified routings and shipping methods.
3. The supplier shall have facilities adequate for shipping and receiving operations;
at a minimum, the supplier shall assure that the number of doors / bays is

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adequate for shipping and receiving schedules, and that dock areas are well-lit and
maintained with enough space for shipping and receiving activities.
4. The supplier is responsible for the loading, blocking, and bracing of cargo at the
time of loading. For ocean or intermodal truck/rail shipment modes, the supplier
is required to have appropriate load blocking and bracing supplies, and trained
staff to facilitate timely loading. The mode of transit is determined by Tesla
Logistics. Logistic_Inbound@tesla.com should be contacted with any questions.
5. Suppliers must execute shipments according to Tesla’s demand releases, which
are transmitted by EDI (830 Forecast and 862 Firm Demand) or through the Tesla
Supplier Portal.
 EDI:
Please contact your Planning contact and TeslaEDI@teslamotros.com for
setup and guidance.
 Supplier Portal:
Please contact your Tesla planning representative and
SupplierPortal@teslamotors.com for access and guidance.
6. Suppliers must submit an Advanced Ship Notice (ASN) for each production
shipment to Tesla and follow the Shipment Labels requirement. This is required
even in cases when the supplier is managing the shipment. Suppliers can submit
an ASN in two ways:
 EDI
Suppliers choosing EDI 856 for ASN must generate their own shipping
labels up to Tesla specification and complete a verification process with
the Tesla EDI team. Please contact your Planning contact and
TeslaEDI@teslamotros.com for setup and guidance.
 Supplier Portal
Suppliers choosing Portal must enter shipment data and print the labels
from the Supplier Portal. Please contact your Planning contact and
SupplierPortal@teslamotors.com for access and guidance.
7. Suppliers shipping to other vendors or receiving material from a vendor on Tesla’s
behalf must complete the shipping and receiving process through the Tesla
Supplier Portal only. Please reach out to your Purchasing contact for Tesla’s
subcontract shipping and receiving procedures.

5.6.5 Invoicing
Tesla has implemented e-invoicing for direct material with purchase order numbers
starting with 72, 74, or 77. Suppliers need to submit all invoices through one of the
following three channels. Contact e-invoicing@teslamotors.com for specifications and
detailed instructions.

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1. EDI,
2. CSV Upload,
3. Shipment Flip in Tesla Supplier Portal.

5.6.6 Certificate of Compliance


Suppliers may be requested to submit certificates of compliance, showing a record that
all part/materials were processed in full compliance with all drawing specifications and/or
technical provisions described in the Purchase Order. Suppliers should refer to BMS-
0000342 - Certificate of Compliance for full details.

5.7 Regulatory Compliance


Suppliers of Components may be required to provide evidence of compliance
conformance outlined by international bodies in support of Tesla vehicle
sales. Compliance to regulatory compliance is the responsibility of the supplier who will
present to Tesla electronic copies of compliance certificates to the Supplier Portal.

5.7.1 Material Regulatory Compliance


Tesla suppliers are required to adhere to international material compliance requirements
in order to meet regional material and environmental regulations. This is a mandatory
requirement for all suppliers who supply products or raw materials to Tesla; vendors who
provide only non-material related services are exempted. Specific requirements may be
found in BMS-0000408 - Material Compliance Reporting.

5.8 Nonconforming Parts


This section covers the procedures and disposal for nonconforming parts at the supplier
manufacturing site and nonconforming parts sent to Tesla.

1. If a nonconforming part is identified at the supplier manufacturing site, and has


already been shipped to Tesla, immediate e-mail notification must be sent to the
Tesla to intercept and quarantine the parts upon arrival. A Notice of Suspect
Shipment / Deviation Request form must be submitted using Tesla’s format
provided in BMS-0000259 - Supplier Quality Toolkit.
2. If a nonconforming part is identified at Tesla, the supplier will be notified via e-
mail and / or the Tesla SCAR Database.
3. When a nonconformance is discovered, the supplier is by default assumed
responsible for the faults. Investigations shall be conducted by the supplier until
the cause of the nonconformance has been identified and a plan proposed to
prevent the problem from occurring again.

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4. Tesla reserves the right to charge suppliers for costs incurred as a result of
receiving nonconforming parts / material, in accordance with the charge back
policy in the General Terms.

5.8.1 Deviation Approval


In some cases, Tesla may approve parts which do not fully adhere to the specifications
but that do not affect fit, function, material compliance requirements or safety, to be
used “as is,”. To obtain approval for a deviation to ship such parts, the Notice of Suspect
Shipment / Deviation Request form must be completed and submitted to Tesla. Approval
from Tesla is required before supplying any nonconforming product under a Deviation
Approval.

5.8.2 SCAR - Supplier Corrective Action Request


A SCAR will be issued to notify the supplier that Tesla has received a nonconforming part.
When the SCAR is issued, the supplier will receive an automated e-mail notification. The
supplier is required to respond and complete the supplier sections of the SCAR form on
Tesla’s SCAR Database within the timeframe outlined below:

1. Supplier Information
The supplier must provide a point of contact for the SCAR within 2 local business
hours.
2. Supplier Containment / Sorting
The supplier must provide details on the immediate actions taken to contain all
suspect and non-certified parts within 24 hours. Use Tesla’s Certified Shipment
Tag as provided in BMS-0000259 - Supplier Quality Toolkit for identifying certified
parts and complete the information on the tag.
3. Supplier Root Cause
In-depth analysis of the reported problem shall be conducted to determine the
true underlying cause(s) and / or reason for the discrepancy and reported to Tesla
within 14 days. The supplier is assumed responsible until an acceptable resolution
is found.
4. Supplier Countermeasure
 Irreversible, long-term action taken to ensure that the problem will not
recur.
 Methods that may be used are mistake-proofing systems, process changes,
or tool changes; depending on the change, the supplier may be request to
re-acquire TQP approval.
 Permanent countermeasures must be implemented within 30 days.
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Supplier Sort Marks


“Sort Marks”, or “Part Certification Marks”, used as an indication that an inspection
process has been performed, shall be applied and evident on the parts as directed by
Tesla. Permission and direction from Tesla as to the shape, location, and color of the mark
is required prior to the application of any marks. Tesla approved acceptable marking
provides visible verification that a sorting/inspection process has occurred without
impact to fit, form, function or cosmetic concerns. This requirement must also be passed
on to all appropriate sub-suppliers.

Return / Scrap Material Authorization


The supplier must provide an RMA # to reference the authorization to return or scrap
nonconforming part(s) for credit within 7 days from the first notification of
nonconforming parts. If the nonconforming part(s) are to be returned to the supplier, the
supplier must provide Tesla a shipping account to use and / or arrange pick-up at Tesla.

5.8.3 Product Containment / Controlled Shipping


Controlled Shipping Level 1
Controlled Shipping Level 1 is a demand by Tesla that a supplier put in place a redundant
inspection process at the supplying location to sort for a specified non-conformance,
implement a root-cause problem solving process, and isolate Tesla from the receipt of
nonconforming parts/material. The redundant inspection is in addition to normal
controls, and is enacted by the supplier’s employees. If placed on Level 1 Containment by
Tesla, the supplier will do the following:

 Submission of a Level 1 containment plan and/or corrective action plan to Tesla.


 Evidence based on data from the controlled shipping area that the normal
production process is free of all non-conformances for a minimum of 20 working
days after the start of mass production or implementation of permanent
corrective action.
Level 1 Containment may be elevated to Controlled Shipping Level 2 and/or New Business
Hold if zero defects and/or permanent corrective action is not achieved.

Controlled Shipping Level 2


Controlled Shipping Level 2 is a Tesla requirement to a supplier to put in place a 3rd party
redundant inspection process to sort for a specific nonconformance, while maintaining
Controlled Shipping Level 1 inspections, and implementing a root-cause problem solving
process. The data obtained from the 3rd party redundant inspection process as well as
process audits are critical as both a measure of the effectiveness of the secondary
inspection process and the corrective actions taken to eliminate the initial
nonconformance.
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Controlled Shipping Level 2 will be initiated for one or more of the following reasons:

 Repeat Non-Conformances as addressed by Tesla’s SCAR Database.


 Repeat failure to submit compliance data that accurately reflects the physical
component.
 Supplier’s current controls not sufficient to ensure conformance to requirements.
 Controlled Shipping Level 1 failures.
 Major Production Line Disruptions.
 Quality Problem in the field (Warranty).
Level 2 Containment will be initiated with a formal meeting between Tesla, the third-party
and the supplier to establish all containment criteria. Exit from Controlled Shipping Level
2 will be based on data that the normal production process is free of all non-conformances
for a minimum of 20 working days after the implementation of permanent corrective
action.

Level 2 Containment may cause the supplier to be subjected to a new business hold if
timely permanent corrective action is not achieved.
The Supplier may submit a written request to Tesla, after the minimum 20 working days,
to be removed from any containment level. This request must provide evidence that all
the criteria of the containment have been met. Tesla will remove the supplier
containment status after verification of the effectiveness of implemented actions.

5.8.4 Warranty
1. Tesla will provide all relevant warranty claim information associated with
warranty return part(s) and provide a sample of warranty return part(s) when
available. Supplier may also request part(s) and/or data from Tesla.
2. Suppliers are required to analyze all warranty return parts and:
 Report the investigation results to Tesla.
 Propose/implement countermeasures.
 Confirm effectiveness of the countermeasure.
3. Supplier is responsible for all costs incurred by Tesla resulting from the delivery of
non-conforming products and in accordance with the General Terms.
4. In the event where analysis results are inconclusive (NTF or “No Trouble Found”)
after 30 days or within the timeframe set by Tesla, the supplier and Tesla will
jointly analyze the cause of failure and cost ownership.
5. A warranty recovery contact at Tesla will send a warranty claim based on the
results of the analysis. The supplier will promptly send an agreement in writing. If
the Supplier does not respond within 14 days from when the claim is made, the
supplier will be deemed to have accepted the charges.
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6. If additional time is required for the supplier to appeal for charges, the supplier
shall submit a written communication to request more time or a meeting to
discuss the rationale for the appeal.
7. Field quality performance and cost recovery concerns will be a significant factor in
new product sourcing decisions.

5.9 HVPT- High Volume Production Trial


1. The Tesla format provided in BMS-0000259 - Supplier Quality Toolkit must be used
to evaluate the HVPT.
2. A HVPT is required for each new TQP and PCR.
3. The pre-launch control plan must be followed during the production trial run.
4. The scope and reporting of the HVPT and associated studies (refer Sections 6.4.3
and 6.4.4) shall be performed according to their individual requirements.
5. Concerns identified during the trial run must be added to the Problem Follow
Sheet (refer Section 6.5.4).

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Section 6 TQP - Tesla Qualification Process


6.1 Overview
A successful launch at mass production is achieved through coordination and study of
production trials, sample evaluation, part fitment and assembly trials. Tesla employs the
preparation stages below as incremental steps towards mass production. By default, all
aspects of each stage must be completed by the supplier unless directed by a Tesla
representative. Other tasks may also be added by a Tesla representative.

Review preliminary part design, and analyze the


Specification manufacturing procedures and program schedule
that would be required to produce and deliver to
specifications. Optimizations made accordingly.

Production part data released based on feedback


Process Setup from previous stage. Process flow and control plans
devised and PFMEA conducted.

Studies performed to compare actual performance


Process Validation against required. Production rate gradually increased
to meet quantity requirements.

Final steps to meet all program requirements and


Implementation formal implementation of the program.

Figure 1 - TQP Stages

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6.2 Specification
6.2.1 Program Schedule
The Program Schedule is the overall project plan for supplier quality activities, from
drawing issuance through TQP approval, to initial shipments of mass production parts.

1. The initial schedule is to be drafted with RFQ submission and finalized shortly after
if awarded the business. It shall, at a minimum, define timing for the following:
 Tesla Master Schedule – Prototype, Assembly trials, Start of Production.
 Supplier Master Schedule – Prototype, TQP trials, Start of Production.
 Production Level – Process and test equipment.
 Evaluations – Part evaluations to be done during trials.
 Testing – Plan for testing parts to Drawing and Inspection Standard.
 TQP documentation – Timing for each TQP task.
2. If awarded business, future schedule planning and changes shall be performed
through the Supplier Portal.
3. A schedule resubmission is required for each new TQP Approval or PCR.
4. The schedule shall be reviewed regularly in intervals designated by Tesla.

6.2.2 Inspection Standard


The Inspection Standard is a document that supports a part’s associated drawing(s) and
details significant part characteristics, their acceptance criteria and the method and
frequency by which they must be monitored and controlled by the supplier.

1. Suppliers are required to make Inspection Standards for all parts. Tesla retains the
official, signed document.
2. The Tesla format provided in BMS-0000259 - Supplier Quality Toolkit must be
used.
3. The part Inspection Standard, at a minimum, must define the following part
characteristics:
 Datum Structure.
 Dimension and Tolerance.
 Performance.
 Weight.
 Material.
 Appearance standards.
 Function.
 Color and/or Grain (if applicable).
 Critical Items.
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 Identification and Traceability Methods.


4. The Inspection Standard must consider and include inspection related criteria as
indicated on the Control Plans, PFMEA studies, etc., and the frequency of
inspection must be developed based upon process capabilities.
5. The approved Inspection Standard criteria, subject to revision, must be followed
for the life of the part without exception.
6. Drawing requirements not specifically stated on the part Inspection Standard
must be revalidated annually at a minimum.
7. The supplier must initiate revisions for all Engineering Change Orders.
8. The supplier must submit all Inspection Standard revisions to Tesla.

6.2.3 Measurements Systems Analysis (MSA) for Equipment Proposal


1. An MSA shall be conducted on all components that meet any or all of the following
conditions:
 Require a capability analysis be conducted.
 Contain critical or special characteristics.
 Require on-going production monitoring.
 As requested by Tesla.
2. The supplier shall submit to Tesla a proposal for all tools, gauges, fixtures and
other equipment required to produce parts to Tesla’s specifications and to meet
the MSA requirements.
3. The supplier shall ensure all proposed tools, gauges, fixtures and/or equipment
meet the requirements set in Section 5.4.
4. No tools, gauges, fixtures or equipment may be purchased without written
authorization and funding approval from Tesla.

6.2.4 Control Plan (Prototype)


1. The Prototype Control Plan shall be created and submitted to Tesla for review, and
cover all aspects detailed in Section 5.3.
2. The scope of the plan should extend to cover either the production of prototype
parts for Tesla or any production using tooling, equipment, or processes that are
not mass production intent.
3. Control Plans for prototype part production must consider factors such as the
production methods, production quantities, and any added validation
requirements associated with the intended use of the prototype parts.
4. Control Plans for tooling, equipment, and processes that are not mass production
intent must consider factors that could result from the potential failure modes of
the alternative production methods.

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6.2.5 2D Drawing GD&T


Suppliers providing component designs are responsible for providing GD&T data on all
drawings, adhering to the following requirements:

1. Drawings must follow the standards and requirements outlined in BMS-0000023


- Drawing Block and Notes Standard, in addition to the requirements listed here.
2. Drawings and specifications should include engineering specification tests,
product validation test requirements, and must be documented in time to support
pre-launch Control Plan development.
3. Lot control and traceability requirements must be detailed on the drawings.
4. Visual acceptance standards should define all potential visual concerns that may
occur on the parts (i.e. grain, gloss, color, surface imperfections etc.) Visual
standards should be developed jointly between the Tesla and the supplier, and
should be approved prior to design release (e.g. A, B, and C surfaces to be defined
and aligned to Tesla requirements).
5. Critical characteristics must be indicated on drawings using the symbols defined
in Section 7.3 of this document and within BMS-0000023 - Drawing Block and
Notes Standard. In the event of conflicting information, BMS-0000023 - Drawing
Block and Notes Standard shall take precedence.

6.2.6 Design for Manufacturing (DFM) Complete


Suppliers providing component designs are responsible for conduction a DFM analysis to
ensure part design optimization. The following points are required:

1. Suppliers shall complete the Team Feasibility form in BMS-0000259 - Supplier


Quality Toolkit and submit to their Tesla representative.
2. Suppliers shall provide evidence of manufacturability and assembly analysis
through CAE simulation or otherwise.
3. Suppliers should contact their appropriate Tesla representative for additional
requirements.

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6.3 Process Setup


6.3.1 Process Flow Chart
1. A Process Flow Chart shall be drafted to detail each and every step in the supplier’s
manufacturing process.
2. Any expected re-work processes must be shown in the Process Flow Chart.
3. The format in BMS-0000259 - Supplier Quality Toolkit may be used.

6.3.2 PFMEA - Process Failure Mode and Effects Analysis


Suppliers are required to complete a PFMEA and update it with improvements made
during the trial phases, as a result of process changes, or changes due to corrective
actions. The supplier must use cross functional approach to complete the PFMEA.

1. Follow the industry standard AIAG - Failure Mode & Effects Analysis (FMEA)
Reference Manual.
2. Design Failure Mode Effects Analysis (DFMEA) (if applicable) and Process Failure
Mode Effects Analysis (PFMEA) must include reviews of both the equipment and
the process. These activities should be completed prior to drawing release,
tooling/process design, Process Control Plan, Inspection Standard, and Inspection
Plan development.
3. Significant product failure items identified through DFMEA development that are
not corrected with a design change must be indicated on the PFMEA and Control
Plan documents, with sufficient inspection and prevention / detection capabilities
to prevent non-conformances.
4. Equipment / Process capability deficiencies identified based on the results from
analytical studies such as PFMEA, etc., must be represented in the inspection plans
and associated documents (ie: Process Control Plan, Inspection Standard, etc.) as
required with 100% inspection criteria to ensure consistent achievement of
quality requirements.
5. Sub-suppliers that provide materials or components that impact the Tier 1 part
safety or regulatory requirements must develop, submit, and gain approval from
the Tier 1 Supplier of a specific quality control plan, that assures conformance of
their material, component or assembly. In the case of direct supply, the
responsible Tesla representative has approval responsibility.
6. The supplier must ensure that documented systems are in place at all sub-
suppliers to control traceability and confirm specification compliance for all critical
components including raw materials, parts, and assemblies.
7. Safety, regulatory and FMVSS related processes must be continually monitored
and controlled in regards to capability, utilizing industry accepted methods of

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statistical control. Refer to Section 6.4.4 for Capability requirements of special


characteristics.
8. Specific plans and methods must be developed and utilized to ensure full
traceability to include material lot identification, date, shift, assembly process, and
delivery, verification of repair, and containment assurance.
9. The final PFMEA shall be submitted for TQP approval.

6.3.3 Control Plan (Production)


1. The Production Control Plan shall be created and submitted to Tesla for review,
and cover all aspects detailed in Section 5.3.
2. The scope of the Production Control Plan should only cover parts produced during
mass production.

6.3.4 Measurement Systems Analysis (MSA) for Equipment Acceptance


1. Once written authorization and funding approval has been received for a
proposed tool, fixture, gauge and/or equipment, the supplier shall create an
Instruction Manual(s) covering its correct use to meet Tesla’s requirements.
Purchased tool, fixture, gauge and/or equipment shall be qualified for fitness of
use (eg: certification).
2. All Instruction Manuals shall be submitted to Tesla for approval and should not be
used until approved. The format in BMS-0000259 - Supplier Quality Toolkit may
be used.

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6.4 Process Validation


6.4.1 Measurement Systems Analysis (MSA) for Equipment Validation
1. An MSA shall be conducted as per TS-0003413 - Measurement Systems Analysis
Standard using inspection personnel with conditions as similar to the mass
production operations as possible at the supplier site.
2. The results of the MSA shall be submitted to Tesla as detailed in the referenced
Tesla standards listed in Section 5.4.

6.4.2 Validation Testing


Validation tests will be conducted as per the Inspection Standard and an analysis of the
results submitted to the portal. All tests will be conducted on parts/processes
representative of final production intent pedigree or as agreed by Tesla.

6.4.3 Capacity Study


A Capacity Study shall be prepared for every process/line used by the supplier. The study
should be included in the TQP and PCR submissions as well as be updated for all process
improvements and changes. The Capacity Study will be used by Tesla to confirm the
expected capacity for a given part.

1. The Tesla format provided in BMS-0000259 - Supplier Quality Toolkit or on the


Supplier Portal may be used.
2. A study shall be conducted for each line, machine, tool, etc. used and whenever a
line, machine, tool, etc. is added, changed or removed.
3. The number of parts used to evaluate the study shall be determined by Tesla.
4. Run at Rate (R@R) studies shall be conducted to confirm that production capacity
is correct to the supplier’s original planned capacity and capability.
5. The study shall include the actual measured takt time for each operation.
6. The study shall follow the steps outlined in the Process Flow chart. If more than
one operation is performed at a given station, the operations should be separate
line items on the Capacity Study.
7. Process steps that do not meet Tesla’s demand forecast, for current or future
volumes, must be added to the Problem Follow Sheet (PFS) and tracked for
improvement.

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6.4.4 Capability Study


1. Capability data (Ppk and Cpk) must be submitted at each trial up to, and including,
the initial shipment for SOP. If a trial requires more than one shipment of parts,
capability data will not be necessary after the initial shipment, provided the parts
were manufactured in the same lot as the initial shipment.
2. Capability demonstrations, consisting of a minimum 30 part study, or an amount
defined in the Tesla approved Inspection Standard, must be conducted per line,
machine, tool, etc. or whenever a line, machine, tool, etc. is added, changed or
removed.
3. Cpk / Ppk data is required on all critical characteristics as designated by Tesla.
 All characteristics for safety, regulatory, and FMVSS requirements must
have a Cpk and Ppk ≥ 1.67. All other special characteristics with Cpk or Ppk <
1.33 will not be accepted without 100% inspection.
 Ppk / Cpk requirements may be established for additional specific part
characteristics that significantly affect performance, fit, function,
installation workability, or other identified FMEA items.
 The Inspection Standard will be used to define additional characteristics
requiring a capability analysis.
4. Cpk / Ppk data should be submitted on the Sample Data Sheet (SDS), or as directed
by Tesla, from samples taken throughout each build. Samples must be taken from
each die, cassette, line, cavity, etc. used in production.
5. Continuous long term Ppk verification must be carried out for every critical
characteristic, with acquired data maintained and utilized for continuous
improvement. Tesla may request data submission at any time.
6. Inspection frequencies must be in conjunction with Cpk results. Depending on
machine or process capabilities, the inspection requirements may increase or
decrease. Any changes to the inspection frequency must be approved by Tesla
through a modification of the Inspection Standard.
7. Cpk / Ppk Inspection Sampling / Guidelines:

Action Necessary Cpk Ppk


Accept Product. Continue to
≥ 1.67 ≥ 1.33
reduce process variation.
Accept Product. Increased
sampling frequency until 1.33 ≤ Cpk < 1.67 N/A
stability is re-established
100% inspection required. < 1.33 < 1.33

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Capability Studies may not be required under the following conditions; check with your
assigned Tesla representative for clarification.

1. Machine conditions are controlled and batch produced with certifications


provided (i.e. raw material certifications).
2. Characteristics are inspected 100% in-process.

6.4.5 SDS - Sample Data Sheet


Sample Data is required with every shipment of parts to Tesla prior to Mass Production;
this includes shipments of prototype, tooling, and mass production level ECO numbers.

1. The format provided in BMS-0000259 - Supplier Quality Toolkit must be used and
the complete production lot must be represented.
2. Capability Data is to include all Design Critical and Process Critical characteristics.
Where applicable, the piece samples must represent each die, cavity, lathe, etc.
used in producing the lot of parts.

The Sample Data required can be categorized into two types:

1. Sample Parts
 The parts measured for Sample Data must be provided with the shipment and
must be clearly numbered in a nondestructive pre-approved method.
 Sample parts used for capability study purposes must be selected from parts
built during the HVPT. By default, a total of 30 randomly pulled parts must be
used for the study, unless a different sampling plan is specified in the
inspection standard.
 The parts used for the 100% layout must be provided to Tesla for inspection.
By default, 5 randomly pulled parts must be used for the study, unless a
different sampling plan is specified in the inspection standard.
 Sample Parts not provided with the shipment will result in a Quality Hold in
Receiving Inspection until the Sample Parts can be received.
2. Sample Data
 The Sample Data, including the copy of the current Inspection Standard and
numbered Design Drawing, must be submitted to Tesla with each shipment.
 Sample Data not provided with the shipment will result in a new business hold
until the Sample Data can be received.
 Sample Data should also be uploaded to the Supplier Portal before or on the
day of part delivery.

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6.4.6 AAR - Appearance Approval Report


Tesla will include Color and Grain information in the Drawing, if applicable. The
Appearance Approval Report (AAR) is used for color, parting line, and grain approval.

1. Supplier should refer to the AAR guide AAR Supplier Presentation on the Supplier
Portal on how to obtain Color and Grain approval.
2. Suppliers must obtain Color and Grain approval prior to TQP approval, when
applicable. The Tesla format provided on the Supplier Portal must be used.
3. In addition to the AAR, a separate TQP Approval form for “Appearance Only” will
be submitted for approval on each appearance item noted on the design record
(eg. each individual color requires a separate approval form).

Boundary Samples

A boundary sample is a method which establishes a subjective visually approved sensory


standard when a characteristic is difficult to define or communicate by any other method.

1. The Tesla format provided in BMS-0000259 - Supplier Quality Toolkit must be used
to request a boundary sample.
2. Boundary samples may be temporary or permanent but should only be used when
absolutely necessary. If corrective actions cannot be implemented due to
excessive cost, technology, etc. a boundary sample may be considered.
3. Boundary samples must be representative of the Supplier’s confirmed process
capability and be consistently achieved.
4. Boundary samples are not intended to reduce scrap. Scrap reduction should result
from process improvements. If, however, process improvements, technology, etc.
fail to reduce scrap quantities, a boundary sample may be considered.
5. A minimum of three (3) equivalent sets of boundary samples must be prepared
and sent to the appropriate Tesla representative for review. A completed
Boundary Sample Tag is to be affixed to each sample submitted for approval. After
approval, two sets will be returned to the Supplier; one to be used as a master,
the other to be used as a working set.
6. The master boundary samples must be maintained at the supplier in a manner
which will prevent damage or deterioration to them.
7. The supplier must provide sufficient lead time for the boundary samples to be
evaluated. Expectations should be established prior to tooling and parts cannot
be shipped until the boundary sample has been approved, signed and returned to
the supplier.
8. Revisions or change requests to approved boundary samples must be handled in
the same manner as the original submission.

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6.4.7 Packaging Plan


Unless directed otherwise, packaging data must be submitted to the Supplier Portal,
following the procedures explained under the Packaging Submission page.

All pack size, packaging, container or pallet dimensions and/or type must be pre-approved
by the appropriate Tesla representative(s). The supplier must also receive approval for
temporary use of packaging which does not meet requirements.

6.4.8 Control Plan (Safe Launch)


A Safe Launch Plan (SLP) shall be used as requested for all pre-production and production
requirements that require TQP approval. The purpose of a SLP is to verify product &
process stability in an organized manner. Collected data shall be monitored and analyzed,
and adjustments made to product and/or processes when necessary.

As directed by Tesla the supplier shall establish a safe launch control plan based off of the
following elements:

1. The Control Plan shall be created and submitted to Tesla for review, and cover all
aspects detailed in Section 5.3.
2. The Control Plan must validate the assumptions for control frequencies used in
the Production Control Plan (refer Section 6.3.3), capture potential non-
conformances due to unforeseen or overlooked potential failure modes, and
increase reactions to non-conformances.
3. A reaction plan shall be devised in case of non-conformances discovered, with
immediate notification and implementation of containment and corrective
actions at site of discovery.
4. Documented evidence of execution and validation of the control plan using an
agreed format.
5. The duration of the SLP is to the discretion of Tesla, however by default the
minimum periods for programs are as follows:
 100,000 pieces produced annually - 90 days from SOP
 1,000 to 100,000 pieces produced annually - 90 to 180 days from SOP.
 < 1,000 pieces produced annually; first batch.
6. The supplier may be required to indicate compliance with the Safe Launch
requirements by attaching the SLP label identified in BMS-0000003 - Shipping
Label Specification to each part.
7. Eligibility to exit Safe Launch can only be obtained with written acknowledgement
from Tesla demonstrating the following criteria have been met:
 Parts/material were shipped meeting the success criteria defined in the
SLP.
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BMS-0000051 Supplier Handbook Revision 06

 If non-conformances are detected, the SLP must be kept in place until


process controls and capabilities have proven effective.
8. SLP status will be continuously updated and made available to Tesla; Tesla may at
its discretion track Safe Launch activities via weekly submissions from Supplier.

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6.5 Implementation
6.5.1 Material Regulatory Compliance Submissions
Tesla suppliers must complete and submit the certifications, and other related items, as
outlined in Section 5.7.1. This includes, but is not limited to:

1. Letter and information as required for Tesla to comply with any and all applicable
Conflict Minerals requirements.
2. Evidence of material marks on applicable products.
3. Approval of data submitted into Tesla’s required material reporting database,
including if applicable an accurate and complete International Material Data
System (IMDS) submission for each non-prototype production part.

6.5.2 Safety Regulatory Compliance Submissions


Tesla suppliers must complete and submit the certifications, and other related items, as
outlined in Section 5.7. This includes, but is not limited to:

1. UL Certification.
2. Regional or country specific compliance evidence.
3. Flammability compliance test results.

6.5.3 Traceability
Traceability grades are assigned by Tesla for each part on its associated drawing with
regards to part, subcomponent and raw material traceability.

Suppliers are required to maintain traceability as per the requirements listed in BMS-
0000151 - Traceability Specifications (specific to the designated traceability grade), for all
delivered materials to both the raw material source and to the manufacturing tests and
processes that were used to produce them. Suppliers to Tesla shall also impose these
requirements on their Suppliers such that clear and unbroken traceability is maintained
to the lowest Supplier in the supply chain.

Evidence of meeting the traceability requirements shall be submitted by the


supplier. Items required for submission will be defined by Tesla and may include (but are
not limited to), labels, serial numbers, lot codes and photos of part markings.

6.5.4 PFS - Problem Follow Sheet


The PFS shall be used to track all issues and their resolution for each new TQP program
and should be continually used throughout the TQP approval process.

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BMS-0000051 Supplier Handbook Revision 06

1. The supplier must keep an updated PFS for each part on the Supplier Portal.
2. The PFS shall be reviewed with Tesla as designated until all items are closed.
3. The supplier shall assign responsibility and timing for problem countermeasures.
4. Part quality issues that do not meet agreed expectations may have a SCAR issued
(refer Section 5.8.2).
5. Tesla will have the final decision regarding the closure of PFS items.

6.5.5 TQP Approval


TQP approval signifies the end of trial phases and that the part meets all Drawing and
Inspection Standard requirements for quality. Approval is also needed for the
manufacturing process from which the TQP parts were produced.

TQP approval signifies the supplier’s readiness to begin manufacturing and shipping mass
production parts. Any changes to the process afterward will require the supplier to submit
and obtain a PCR approval.

TQP approval will be granted by Tesla to the supplier, after the supplier:

1. Performs their HVPT,


2. Has completed and submitted all tasks detailed within this, and referenced
documents, or as designated by an appropriate Tesla representative.
3. Has received approval from Tesla, of all submitted and required documents, tasks,
etc.

Tesla will provide TQP approval prior to the supplier’s first SOP shipment. It is the
supplier’s responsibility to allow enough time between their HVPT trial and their first SOP
shipment for Tesla to approve.

Interim TQP Approval

Interim approval may be given if a supplier has not met or completed all of the
requirements for full approval. Interim approval permits the suppliers to sell parts to Tesla
to support production; however, no tooling money will be paid until full approval has
been achieved. Rejection of TQP approval will require immediate action taken by the
supplier to achieve approval or interim approval to support Tesla SOP.

1. If interim TQP approval is provided, the specific requirements that must be


completed to receive full approval will be explained by a Tesla representative.
2. Rejection of TQP approval requires immediate containment actions and
submission of a plan to get to full approval.

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BMS-0000051 Supplier Handbook Revision 06

Section 7 Appendix
7.1 Abbreviations & Definitions
4M Man, Method, Machine, Material
AIAG Automotive Industry Action Group
CAE Computer Aided Engineering
DFM Design for Manufacturing
DFMEA Design Failure Mode and Effects Analysis
ECO Engineering Change Order
FMVSS Federal Motor Vehicle Safety Standards
General Terms The General Terms and Conditions attached to the purchase order issued by
Tesla or, if applicable, the signed General Terms and Conditions between Tesla
and the Supplier.
GRR / GR&R Gauge Repeatability and Reproducibility
HVPT High Volume Production Trial
IMDS International Material Data System
ISO International Organization for Standardization
PCR Process Change Request
PFMEA Process Failure Mode and Effects Analysis
PFS Problem Follow Sheet
QMS Quality Management System
QRC Quality Readiness Checksheet
R@R Run at Rate
RFQ Request for Quotation
SCAR Supplier Corrective Action Request
SIE Supplier Industrialization Engineer
SLP Safe Launch Plan
SOP Start of Production
TQP Tesla Qualification Process

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BMS-0000051 Supplier Handbook Revision 06

7.2 External Contact Information


AIAG Automotive Industry Action Group
Website: www.aiag.org
ASME The American Society of Mechanical Engineers
Website: www.asme.org
GADSL Global Automotive Declarable Substance List
Website: www.gadsl.org
IMDS International Material Data System
Website: www.mdsystem.com
Tesla IMDS Account No: 113431
ISO International Organisation for Standardization
Website: www.iso.org
OECD Organisation for Economic Co-operation and Development
Website: www.oecd.org
SAE SAE International
Website: www.sae.org
SEC U.S. Securities and Exchange Commission
Website: www.sec.gov

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BMS-0000051 Supplier Handbook Revision 06

7.3 Critical Characteristic Symbols and Definitions


Characteristic Nomenclature Definition Symbol
Non Critical Standard A product characteristic for which
Characteristic reasonably anticipated variation is
unlikely to cause nonconformity with
government regulations, safety None
compliance, or component fit and
function.
Critical Fit / Function A product characteristic (other than
Characteristic Critical Safety or Regulatory compliance) for
Not relating to Characteristic which reasonably anticipated variation
Safety or Legal is likely to significantly affect customer
considerations satisfaction with the product such as its
fit, function, reliability or appearance, or
the ability to process or build the
product. These identified characteristics
must be included in the Control Plan.
Critical Regulatory A product characteristic for which
Characteristic Compliance reasonably anticipated variation could
With Regulatory Critical significantly affect the product/vehicle
considerations Characteristic compliance with government
regulations such as occupant
protection, flammability, braking,
emissions, noise etc. These identified
characteristics must be included in the
Control Plan.
Critical Safety A product characteristic for which
Characteristic Compliance reasonably anticipated variation could
With Safety or Critical significantly affect the product/vehicle
Legal Characteristic safety with or without warning (e.g.,
considerations steering, braking, etc.).
These identified characteristics must be
included in the Control Plan.
Batch Control Batch Control Batch control is defined as the means by
which a component fitted to a vehicle or
sub system can be traced to its date of
manufacture, raw materials, and
process controls. This should ideally
take the form of a permanent mark on
the component in an agreed area.

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Process Critical Process Critical A process characteristic (other than


Safety or Regulatory compliance) for
which reasonably anticipated variation
is likely to significantly affect customer
satisfaction with the product such as its
fit, function, reliability or appearance, or
[Pc]
the ability to process or build the
product. These identified characteristics
must be included in the Control Plan.

The above table is an excerpt from BMS-0000023 - Drawing Block and Notes Standard. In
the event of conflicting information, BMS-0000023 - Drawing Block and Notes Standard
shall take precedence.

As noted in Section 5.1, Critical Characteristics shall be identified on the Drawing and
Inspection Standard using these symbols for features that are critical to safety, reliability,
function or fit and/or by FMEA methods. Suppliers must identify critical characteristics on
their Inspection Standards, Control Plans, Work Instructions, Process Flow Charts, and
other relevant documentation.

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BMS-0000051 Supplier Handbook Revision 06

Section 8 References
AAR Supplier Presentation.
AIAG - Advanced Product Quality Planning (APQP) and Control Plan.
AIAG - Failure Mode & Effects Analysis (FMEA) Reference Manual.
AIAG - Measurement Systems Analysis (MSA) Reference Manual.
AIAG - Production Part Approval Process (PPAP).
AIAG - Statistical Process Control (SPC).
BMS-0000003 - Shipping Label Specification.
BMS-0000007 - Part Labeling Specification.
BMS-0000023 - Drawing Block and Notes Standard.
BMS-0000151 - Traceability Specifications.
BMS-0000259 - Supplier Quality Toolkit.
BMS-0000342 - Certificate of Compliance.
BMS-0000408 - Material Compliance Reporting.
CQI-09 - Heat Treat System Assessment.
CQI-11 - Special Process: Plating System Assessment.
CQI-12 - Coating System Assessment.
CQI-15 - Welding System Assessment.
CQI-17 - Special Process: Soldering System Assessment.
CQI-23 - Molding System Assessment.
Domestic Expandable Standards.
General Terms.
ISO 1043-1 - Plastics -- Symbols and Abbreviated Terms -- Part 1: Basic Polymers and their
Special Characteristics.
ISO 1043-2 - Plastics -- Symbols and Abbreviated Terms -- Part 2: Fillers and Reinforcing
Materials.
ISO 1043-3 - Plastics -- Symbols and Abbreviated Terms -- Part 3: Plasticizers.
ISO 1043-4 - Plastics -- Symbols and Abbreviated Terms -- Part 4: Flame Retardants.
ISO 11469 - Plastics -- Generic Identification and Marking of Plastic Products.
ISO 1629 - Rubber and Latices -- Nomenclature.
Overseas Expendable Standards.
Packaging Material and Equipment Codes.
TS-0003139 - Gauge and Check Fixture Standard.
TS-0003403 - Dimensional Data Transfer.
TS-0003413 - Measurement Systems Analysis Standard.
TS-0003552 - GRR.
TS-0003687 - Gauge and Check Fixture Buyoff Check Sheet.
TS-0003986 - MDSS.

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BMS-0000051 Supplier Handbook Revision 06

Section 9 Revision History


Rev. No. Date Section Description of Change
01 04/2011 Initial release
02 06/2011 Update content and formatting - R Chiu
03 04/2013 Update to include and align with Supplier Quality Assurance
Manual BMS-0000258 and SQAM Workbook BMS-0000259
Update revision and name change of PSW to PPAP Approval
for form BMS-0000163
Added Sections:
5.9 - Conflict Minerals Sourcing
11.4 - Supplier Sort Marks
11.5 - Cost Recovery
– J. Hutchinson
04 04/2014 Added “Tesla Motors Quality” definition in 4.1
Removed reference in 4.2 to specific section in BMS-
0000258
Removed all references to SQA, SQE, replaced with generic
“Quality”
Removed obsolete references.
05 10/2014 Added section 11.6 Warranty
Added Section 13.4 Penalties for Mislabeling
Removed and moved details to BMS-0000258 from: section
6.3.8, section 6.3.18, section 7.2, section 8.1
Removed reference to supplier defined traceability in
section 8.3
-RChiu & JHutchinson
06 06/2016 Rev. Added “Section” column.
All Updated formatting, references and internal links.
Merged BMS-000051 rev. 05 and BMS-0000258 rev. 06 All
sections re-written or otherwise altered as result.
PPAP and APQP sections merged & altered under “Tesla
Qualification Process (TQP)”.
3.2.1 Added pt. 20, covering regulatory compliance.
4.2 Added to group audit requirements.
4.4 Previously BMS-0000051, sect. 5.8.
Added performance level descriptions.
5.2 Added to group and remove overlaps in ECO and PCR (sect.’s
17.0 & 20.0 respectively) from BMS-0000258.
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BMS-0000051 Supplier Handbook Revision 06

5.3 Previously BMS-0000258, sect. 8.0.


Now used as base for sections 6.2.4, 6.3.3 & 6.4.8.
5.4 Previously BMS-0000258, sect. 2.0 (Check fixtures).
Changed to reference Dimensional Standards.
5.6 Combines BMS-0000051, sect. 13 & BMS-0000258, sect.
16.0.
Supplier Portal submission requirements made separate
section 6.4.7.
5.6.2 Added ASN & EDI submission details from shipping dept.
5.6.4 Added ASN & EDI submission details from shipping dept.
5.6.5 New section from invoicing dept.
5.6.6 New section from homologation dept.
5.7 New section from homologation/materials dept.
IMDS, material marking and conflicting minerals reporting
moved to new document BMS-0000408.
5.8 Combines BMS-0000258 sect.’s 21.0, 22.0 and BMS-0000051
sect. 11.3.
Added reference to charge back policy in GTC’s.
5.9 Segregated. Overview here, submittable tasks under 6.5.
6.0 Combination of BMS-0000051 sect.’s 6.0 & 9.0 and BMS-
0000258 sect. 4.0.
Sections grouped under the four preparation stages and
aligned with Supplier Portal.
6.2.1 Added to cover supplier portal task submission.
6.2.3 Step 1 in new 3 part MSA methodology.
6.2.4 Added to cover supplier portal task submission.
Step 1 in new 3 part Control Plan methodology.
6.2.5 Added to cover supplier portal task submission.
Aligned with Engineering dept. and references BMS-
0000023.
6.2.6 Added to cover supplier portal task submission.
6.3.1 Added to cover supplier portal task submission.
Separated from BMS-0000258 sect. 8.0.
6.3.3 Separated from BMS-0000258 sect. 8.0.
Step 2 in new 3 part Control Plan methodology.
6.3.4 Step 2 in new 3 part MSA methodology.
6.4.1 Step 3 in new 3 part MSA methodology.
6.4.2 Replaces BMS-0000258 sect. 10.0 (PEP).
PEP Removed due to overlaps with Inspection Standard,
Control Plan and Process Flow Chart.

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BMS-0000051 Supplier Handbook Revision 06

6.4.3 Extracted from BMS-0000258 sect. 13.2.


6.4.4 Extracted from BMS-0000258 sect. 11.0.
Symbols table moved to Appendix.
Cpk and Ppk requirements aligned with Engineering Dept.
6.4.6 Added Boundary Sample requests details.
6.4.7 Added to cover supplier portal task submission.
Revamped by Logistics and Shipping dept.’s.
6.4.8 Step 3 in new 3 part Control Plan methodology.
6.5.1 Previously BMS-0000258 sect. 18.0.
IMDS, material marking and conflicting minerals reporting
moved to new document BMS-0000408.
6.5.2 New section from homologation dept.
6.5.3 Combines BMS-0000051 sect. 8.0 & BMS-0000258 sect. 24.0
Details removed, references BMS-0000151.
Aligned with shipping and logistics dept.’s.
6.5.5 Previously BMS-0000258 sect. 19.0
Updated to suit TQP nomenclature and methodology.
7.1 Added to group all abbreviations.
7.2 Added to group all external contact details.
7.3 Aligned with Engineering Design dept.
[Pc] symbol to be used only for “Process Critical”.
- P. Baker, C. Austin & L.Gunderud

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