VW Supplier Claims Manual

VOLKSWAGEN
GROUP OF AMERICA
CHATTANOOGA OPERATIONS LLC.
Supplier Claims Manual
Revision 5, June 1st, 2016
VOLKSWAGEN
GROUP OF AMERICA
8001 Volkswagen Drive
Chattanooga, TN 37416
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Contents
1.0 Types of Claims with Contacts ..................................................................................................................3
2.0 Process Overviews ......................................................................................................................................4
3.0 Rate Structure ..............................................................................................................................................8
4.0 Parts Return To Vendor (RTV) Process – Quality Claims.................................................................. 10
4.1 Parts Return To Vendor (RTV) Process – Logistics Claims .............................................................. 11
5.0 Forms .......................................................................................................................................................... 13
6.0 Claim Email: Notification # Reference to FIN ....................................................................................... 19
7.0 Claim Appeal Process .............................................................................................................................. 20
8.0 Directions to Update Claims Contact ..................................................................................................... 21
9.0 Frequently Asked Warranty Questions .................................................................................................. 23
10.0 Having problems access vwgroupsupply.com? ................................................................................... 27
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1.0 Types of Claims with Contacts
Logistics Claims Quality Assurance Claims
1. Damaged Parts 12. Sorting / Rework of suspected parts

2. Expedites 13. Rework of cars
3. Returnable / Repack 14. Supplier Defects – Lineside
4. ASN & Labeling Non-Compliance 15. Firewall Wall Level 2
5. Line Down Time 16. Supplier Investigation Report
6. Container damages/ scrap
7. Packaging inventory losses
8. Late delivery
9. Rack repair
10. Label removal
11. Administrative fee
Contact: Contact:
Amy Wallace
VWGoAChattanoogaLOGRegression@vw.com +1-423-582-4105
CQPSD@vw.com
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2.0 Process Overviews

Types of Claims NCD
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Types of Claims VPIN
Quality Claims
VPIN
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Types of Claims Firewall Level 2 Notification
Quality Claims
Firewall Level 2
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Type of Claim
Logistics Claims
Expedites ASN & Labeling Non-Compliance

Returnable / Repack Line Down Time
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3.0 Rate Structure

3.1 Full Service Rate: $60 / hour (rates at Volkswagen Group of America Chattanooga
Operations, LLC (“VWGoA CO”) facilities)
3.2 Firewall level 2 containment activities: VWGoA CO Purchasing negotiated invoice
pricing plus 5 labor hours per week for monitoring containment activities.
3.3 Expedite Flat Fee: $200
3.4 ASN Flat Fee: $150
3.5 Labeling Flat Fee: $500
3.6 Line Down Rate Structure: Contractor’s liability for a Line Interruption shall not
exceed $500,000 per Occurrence. Liquidated damages applicable to Line
Interruption are as follows:
The greater of:
• $1,500 for each vehicle by which the documented daily production estimate
isn’t met
• Or $2,500 for each replacement vehicle manufactured during standard plant
overtime
• Or $3,500 for each replacement vehicle manufactured when VWC is paying
its plant personnel double or holiday time.
3.7 For engines/ transmissions repairs the cost of handling, repair and spare parts
will be charged in a case by case basis.
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3.8 Defective Parts:

NCD Notification
Warehouse Line Side
per Incident per NCD Notification
Quality Assurance N/A .5 Hours $30.00

Logistics Admin Fee: $100.00 Admin Fee: $100.00
Engine/Transmission Rework
Warehouse Line Side
Quality Assurance *According to sorting/analysis time *According to sorting/analysis time

Manufacturing *According to rework time/analysis time *According to rework time/analysis time
VPIN
Warehouse Line Side
Quality Assurance According to sorting/rework time/analysis time .5 Hours $30.00

SIR
Warehouse Line Side
per KPM Halle opened per KPM Halle opened
Quality Assurance 2.5 Hours $150.00 2.5 Hours $150.00

Logistics N/A N/A
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4.0 Parts Return To Vendor (RTV) Process – Quality Claims

For material on a containment action supplier must follow the below steps to ensure return of material defects.
Supplier Confirm Material Claim Notificaton Email to Supplier Complete RTV VW Outbound Logistics
Return of Material
Return SUpplier Form Specialist
• Within 2 business days of • As soon as the • AFTER you have • If parts were • VWGoA CO
the VPIN email material is available a received confirmation of requested to be Outbound Logistic
notification (Vendor claim notification will the # of parts and have returned, material will Specialist will contact
Product Inspection be sent out, notifying confimed material to be be available up to 4 the supplier within 24
Notification),supplier must the # of parts that returned within 2 days of business days after business hours to
confirm to have material can be requested for the VPIN email supplier receives confirm the pickup
returned by submitting RTV. notification, please CLAIM time and pick up
Request To Hold VPIN • Timing varies complete and return RTV NOTIFICATION. address of material.
Material Form to depending on daily Form and Permanent
VWGoAReturntoSupplier@ rejection rate. Removal Form to
vw.com VWGoAReturntoSupplier
• Quantity of material to be @vw.com
return will not yet be
known.
• If no email is sent, the
material will be scrapped
immediately after Quality
review on a daily basis.
 Process repeats until containment action is closed

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4.1 Parts Return To Vendor (RTV) Process – Logistics Claims

For material on a logistics claim, supplier must follow the below steps to ensure return of material.
Claim Notificaton Email Supplier Complete RTV VW Outbound Logistics

to Supplier Form Return of Material Specialist
• Supplier receives CLAIM • Supplier has 2 business days • If parts were requested to • VWGoA CO Outbound
NOTIFICATION email after receiving CLAIM be returned, material will Logistic Specialist will
informing them of parts NOTIFICATION to inform the be available up to 4 contact the supplier within
received that were non- Claim Specialist they would like business days after 24 business hours to
conforming. to have the parts returned by supplier receives CLAIM confirm the pickup time
completing and returning a NOTIFICATION. and pick up address of
RTV Form and Permanent material.
Removal Form
to:VWGoAChattanoogaLOGReg
ression@vw.com
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4.2 Parts Return to Vendor for Line Side Defects – Quality Claims
Supplier Complete VW Outbound

Forms Return of Material
Logistics Specialist
• Supplier must complete and return • If parts were requested to be • VWGoA CO Outbound
Permanent Removal Form and returned, material will be Logistic Specialist will contact
Return To Vendor Form via email available up to 4 business the supplier within 24
to days after supplier receives business hours to confirm the
VWGoAReturntoSupplier@vw.com CLAIM NOTIFICATION. pickup time and pick up
within 2 business days of receiving address of material.
claim notification email.
Important Points to Consider for Line Side Defects, Containment Defects and Logistics Claims
 Fedex and UPS services are available for the supplier to arrange with their on-site supplier representative. VWGoA CO is not responsible for making
Fedex or UPS arrangements. Please do not include ground services account numbers on the RTV form.
 All RTV must follow the above process. If your company has an on-site representative, the process of emailing VWGOAReturntosupplier@VW.com
for Supplier Claims or VWGoALOGRegression@vw.com for Logistics Claims still must be followed.
 All forms must be properly and completely filled out or will not be acknowledged by VWGoA CO.
 Supplier is responsible for material cost if material is returned or scrapped at VWGoA CO factory.
 VWGoA CO business hours for material pickup are Monday- Thursday 7am- 3pm EST excluding holidays.
 No parts will be handed over to the third party causing entities (different than the original supplier) for safety reasons.
 Any parts reworked by VWGoA CO will not be available after the rework claim is filed, as material is returned to production in an expedite process.
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5.0 Forms
Form can be found on www.vwgroupsupply.com, by navigating to: Login -> Information ->
Divisions -> Logistics -> Brand Specific Logistics -> Volkswagen Group of America. OR Login -
> Information - >Divisions -> Quality Assurance -> Technical Factor and Part Dispatch Control.
All forms must be filled out properly and completely.
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5.1 Return to Vendor Form
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5.2 Permanent Removal Parts Form
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5.3 Supplier Appeal Form
..
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5.4 Supplier Escalation Appeal Request
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5.5 VPIN Material Hold Request
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6.0 Claim Email: Notification # Reference to FIN

Claim Notification Email
Material
Value
Cross Reference
Claim Notification #
FIN Application on
VWGroupSupply.com
Email address where claim

notification & backup
information was sent
To access the FIN application manual, please search FIN on www.vwgroupsupply.com
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7.0 Claim Appeal Process

Supplier VWGoA VWGoA Dispute of
Appeal Appeal Appeal Appeal
Submission Review Decision Decision
•Fill out Supplier •Claim originator will •Claim originator will •Request for further dicussion
Claim Appeal Form analyze provided inform supplier on of VWGoA CO appeal
in full. data in claim appeal. the acceptance or response must be made within
•Return to noted (approxiately 2 rejection of the 48 hours of notification of
email address within weeks) appeal to email decision. If the requestor
14 calendar days of address on dispute elects to discuss the appeal
claim date. form. decison with management , a
•Include all objective telephone conference
evidence & a /meeting may be requested
detailed statement thru the claim specialist
of appeal. ,otherwise debits will be
posted 2 business days after
•See important VWGoACO appeal response
points to consider email is sent.
for holding parts &
returning parts. •If appeal status is not
resolved between both parties
during the phone
conference/meeting, the
supplier may complete
Supplier Appeal Request form
to request a face to face
meeting. This process may be
completed for a maxium of
two escalation discussions
with VWGoA Co per claim
notification.
Important Points to Consider:

 No debits take place during the appeal process.
 Email must be received by VWGoA CO contact noted on the appeal form within 14 calendar
days of claim date.
 Rates are not subject of dispute request.
 All evidence must be provided with original appeal request.
 If you are in “Risk Management” note this on the form and copy riskmanagement@vw.com on
appeal email.
 Parts that are RTV to supplier are not subject to appeal.
 No parts will be handed over to the third party causing entities (different than the original
supplier) for safety reasons.
 Any parts reworked by VWGoA CO will not be available after the rework claim is filed, as
material is returned to production in an expedite process.
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8.0 Directions to Update Claims Contact

It is highly recommended that you create an internal email address (example:
vwclaims@company.com). Then create an internal distribution list for this email. All VPIN & NCD
notifications will go to this address. NOTE: This information will only be pulled from the supplier
database bi-weekly, therefore your contact information will not be updated immediately. Be aware
that claims, VPIN and NCD notification will not be distributed to any address other than
what is on file here. No additional copies will be distributed. VWGOA CO is not
responsible for misdirected or blocked email if VWGoA CO used the correct, provide
email address.
8.1 Go to www.vwgroupsupply.com
8.2 Select LOG IN
8.3 Enter user name & password
8.4 Navigate to: Information / Tools / Supplier Database / Run Application
8.5 *If you do not see Supplier Database, your company administrator needs to give
you access
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8.6 Select Contact Data & Add (as shown above)

8.7 Fill in all data in red. The BUSINESS DIVISION must be CLAIMS
8.8 Select Save Changes
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9.0 Frequently Asked Warranty Questions
1. How do I establish a technical factor? Contact your VW SQE.
2. Do I establish one technical factor for all parts? A technical factor must be established
for each part number and each index.
3. How is the technical factor determined?

• The technical factor (TF) is determined based from the result of joint analysis of the
random sample of the defective component/modules/systems. Within the framework of
the analyses, a distinction is made between process faults and faults incurred due to
development/design causes.
• That TF is then used to determine the share of responsibility for the damage cases
under examination.
• The procedure to determine the TF is described in the “Guidelines for transferring costs
associated with supplier-caused field and 0km complaints”.
• The KVV share is not identical with the technical factor. In the case of field complaints
caused by design errors, the KVV share will be used to calculate the TF.
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4. Can you please provide details about the attached warranty claim chargeback?
The debit for which you are inquiring is for warranty claims. The associated details of these claims are
found on the B2B Portal. Navigate to “Debit Notes Online (BAO)” to download/view the actual debit
note & detail of debit.
Start itInform a tionTools

Notes Online (BAO)De b
If you do not have access to this area of B2B, your company B2B Admin can grant access as needed.
For now I have attached the information that you seek.
For more information, or to set your technical factor, please contact your local SQE.
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5. Where do I see the technical factor percentage on the backup data found on the
portal?
The information that you seek is in the Excel file listed in column “M”.
6. If I have questions about the warranty debit, who do I contact? Contact information is
located on debit note at the bottom on the page. This contact may vary with each warranty
debit.
7. How long is the technical factor valid for? 12 months from the date of the SQE’s
signature.
8. How does KVV affect the technical factor calculation? TF includes/considers KV rate
for design related issues only. If the failure mode does not relate to any design issue, then
the TF is determined by the owner of the failure (VW/customer issue or supplier issue).
This can be determined via a D20 process where the supplier & SQE review returned parts
from the field.
9. Why is my technical factor 100%? Until such time as you have set a TF, and in
accordance with the VW Group process, the default TF will always be 100%.
10. When does the supplier sign the Technical Factor form? The supplier will sign the form
after all VWGoA CO responsible parties have completed. The supplier must sign the form
and return back to VWGoA CO SQE ASAP.
11. What is important from the supplier to check on the Technical Factor form? Always
ensure the correct HCD and Duns number is listed on the form.
12. What is the flow of the warranty process?
Step 1: Supplier must contact their VW SQE.

Step 2: VWGoA CO will request to collect parts from Field Analysis.
Step 3: SQE will set up meeting to review parts.
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Step 4: Supplier will prepare backup information and complete Technical Factor Form
located on the B2B portal. Supplier will email the SQE the information packet.
Step 5: VWGoA CO SQE and Management will review and sign Technical Factor Form.
Step 6: SQE will request supplier’s signature,
Step 7: Supplier will return the form with signature.
Step 8: VWGoA CO will inform VW AG on technical factor.
13. Why am I just now receiving warranty claims from last year? Recently, VWGoA CO
started to implement the debit notes with an automatic process for warranty claims for
those suppliers that haven’t been charged since the SOP. In order to dispute these
warranty debit notes we need to set a Technical Factor%, at least 20 parts must be
analyzed based on random samples collected from the field. This is called the D20
process. You have to contact your SQE at VWGoA CO to start the technical factor process.
After the analysis and once we defined and set the %TF for each part number we will
change it in system and you will have a credit back with the new %.
14. Where on VolkswagenGroupSupply.com can I find more Technical Factor

information and forms?
15. When did my company agree to warranty charges? Chargeback claims are governed
by the terms of contract between the supplier and VWGoA CO (particularly the Purchasing
Terms and Conditions for Production Material. “Formel Q Konkret”, Konzept-
Verantwortungs-Vereinbarung” (KVV) the design responsibility agreement, and other
documents that also apply to the handling of faulty suppliers).
16. How do I find the meaning of the defect/repair code listed on my debit information?
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10.0 Having problems access vwgroupsupply.com?

Contact your company administrator on www.vwgroupsupply.com to verify you have a user ID.
Otherwise, contact the Supplier Integration Team at:
Location Germany (Wolfsburg)
Service time:
Monday to Friday between 8 AM and 6 PM (CET)
Contact:
Phone: +49 5361 - 9 - 33099
eMail: b2bteam@vwgroupsupply.com or contact form
Supported languages:
German, English, Spanish, Italian, Turkish, Portuguese, Russian, Czech
_______________________________________________________________________
Location Mexico (Puebla)
Service time:
Monday to Friday between 8 AM and 6 PM (-7 hrs to CET)
Contact:
Phone: +52 222 - 230 - 9386
email: b2bteam-amerika@vwgroupsupply.com or contact form
Supported languages:
Spanish, English, German, Portuguese
REQUIRED NEXT STEPS
 Review & communicate internally the Supplier Claims Manual found on

www.vwgroupsupply.com
 Create email address such as supplierclaims@company.com, and create internal

distribution list. Provide the email to VWGoA CO by updating the B2B portal as
described in this manual on page 19 and 20.
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 Search vwgroupsupply.com to find the latest forms. REMEMBER: the most up to

date forms & manual will ALWAYS be available on www.vwgroupsupply.com. Do
not save these on your own personal computer.
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VOLKSWAGEN

Supplier Claims Manual

Revision 5, June 1st, 2016

1.0 Types of Claims with Contacts

Logistics Claims Quality Assurance Claims

1. Damaged Parts 12. Sorting / Rework of suspected parts

2.0 Process Overviews

Types of Claims VPIN

Types of Claims Firewall Level 2 Notification

Expedites ASN & Labeling Non-Compliance

3.0 Rate Structure

3.8 Defective Parts:

Quality Assurance N/A .5 Hours $30.00

Quality Assurance *According to sorting/analysis time *According to sorting/analysis time

Quality Assurance According to sorting/rework time/analysis time .5 Hours $30.00

Quality Assurance 2.5 Hours $150.00 2.5 Hours $150.00

4.0 Parts Return To Vendor (RTV) Process – Quality Claims

 Process repeats until containment action is closed

4.1 Parts Return To Vendor (RTV) Process – Logistics Claims

Claim Notificaton Email Supplier Complete RTV VW Outbound Logistics

Supplier Complete VW Outbound

5.1 Return to Vendor Form

5.2 Permanent Removal Parts Form

5.3 Supplier Appeal Form

5.4 Supplier Escalation Appeal Request

5.5 VPIN Material Hold Request

6.0 Claim Email: Notification # Reference to FIN

Email address where claim

To access the FIN application manual, please search FIN on www.vwgroupsupply.com

7.0 Claim Appeal Process

Important Points to Consider:

8.0 Directions to Update Claims Contact

8.6 Select Contact Data & Add (as shown above)

9.0 Frequently Asked Warranty Questions

1. How do I establish a technical factor? Contact your VW SQE.

3. How is the technical factor determined?

Start itInform a tionTools

12. What is the flow of the warranty process?

Step 1: Supplier must contact their VW SQE.

14. Where on VolkswagenGroupSupply.com can I find more Technical Factor

10.0 Having problems access vwgroupsupply.com?

Location Germany (Wolfsburg)

Location Mexico (Puebla)

REQUIRED NEXT STEPS

 Review & communicate internally the Supplier Claims Manual found on

 Create email address such as supplierclaims@company.com, and create internal

 Search vwgroupsupply.com to find the latest forms. REMEMBER: the most up to

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Quality Assurance According to sorting/analysis time According to sorting/analysis time