Jaguar and Land Rover Limited

IMPORTANT

This Jaguar Land Rover Limited process is derived from the original Ford process
used by Jaguar Land Rover Limited prior to June 2008 but is unique to Jaguar
Land Rover Limited. Certain aspects of this process will appear similar to the
process currently used by Ford and which was historically used by Jaguar Land
Rover Limited however the two processes are now distinct from each other and
contain important differences.

It is important to ensure that the Jaguar Land Rover Limited version is always used
for Jaguar Land Rover Limited business; the Jaguar Land Rover Limited and Ford
versions are NOT interchangeable.

For any queries regarding the Jaguar Land Rover Limited process described in this
document, please contact your Jaguar Land Rover Limited STA Engineer.

 Jaguar Land Rover Limited

Supplier Technical Assistance
Edition 4 - March 2017

Edition 4
JLRQ FOREWORD

JLRQ is Jaguar Land Rover Limited’s supplier performance

measurement system and determines supplier site performance
status for their products. JLRQ is built upon previous guidelines and CONTENTS
has incorporated the lessons learned from years of quality
experience. JLRQ has been developed to address the joint needs of
Jaguar Land Rover Limited, our suppliers and customers in the Introduction 3
pursuit of quality excellence.
JLRQ Requirements 5
The relationship we hold with our suppliers is of key importance as we
work together to produce premium vehicles and drive customer JLRQ Score 11
satisfaction. JLRQ allows our suppliers to understand exactly what is
required, where they stand against the requirement and leads the way Consequences 13
to achieve continuous improvement. The reward for improving quality
and achieving JLRQ status is the recognition that the supplier’s facility Benefits of JLRQ 15
meets accepted standards of quality and supply performance.
Applying for JLRQ 17
Our JLRQ suppliers are valued partners, an integral part of our
business fabric. Only by working together in partnership will we be Appendix A – Capable Systems 19
able to provide the premium products our customers expect.
Appendix B – Ongoing Performance 21
JLRQ is a structured measurement driven process that continually
reviews and improves performance. We have been listening and Appendix C – Manufacturing Site
engaging with our suppliers to ensure that those chosen are 29
Assessment
determined to continue the journey of continuous improvement with
us. Expectations 35

Glossary 51
Ian Harnett Terry Sampson
Director of Purchasing Global STA Director
Jaguar Land Rover Limited Jaguar Land Rover Limited
 Introduction
JLRQ was launched in 2010 and is derived from Ford’s Q1 process following the
separation of Jaguar and Land Rover from Ford in 2008. JLRQ continues the
same principles as Q1 and aims to achieve the same goals.

By recognizing quality achievement at the manufacturing site level, and by

applying consistent, understandable metrics to drive high quality, JLRQ is the
quality trust mark for Jaguar Land Rover Limited.

In today’s dynamic marketplace, companies that don’t improve get left behind.
The expectations and requirements in JLRQ have been enhanced to more
accurately reflect supplier performance in relation to Jaguar Land Rover Limited.

What Is JLRQ?
It is a set of fundamental quality and manufacturing disciplines which, when
followed, ensure a supplier’s success and drive a supplier’s continuous
improvement. Suppliers are expected to attain a certain mark, to put the tools in
place to maintain excellence and to improve with each passing year.
Suppliers aren’t expected to achieve JLRQ independently – it is a relationship.
Jaguar Land Rover Limited stands ready to offer suppliers its expertise and
assistance throughout the JLRQ quality journey.
JLRQ puts the discipline in place to achieve consistent excellence and
guides cooperation between Jaguar Land Rover Limited and its suppliers
for superior quality execution.

Approach:
JLRQ applies a few vital metrics to determine which suppliers qualify for JLRQ –
the same measurements will be used to establish who will keep JLRQ status.
JLRQ has refined the manufacturing site assessment as a key tool in driving
continuous improvement. The revised site assessment places greater emphasis
on the site QOS, including, launch performance, quality reject trends and process
variability to provide a framework to achieve continuous improvement.

Summary of Changes:
The JLRQ 1st Edition requirements are effective June 2010. At this point, Jaguar
Land Rover Limited switch from Ford Q1 to JLRQ. The differences between Q1
2nd Edition and JLRQ 1st Edition are described later in this manual.

In April 2012 JLRQ Edition 1.1 changed the Site PPM threshold from 110 to 400
In January 2013 the company name was changed to Jaguar Land Rover Limited.

2 3
 JLRQ Requirements
Any external supplier manufacturing facility which currently supplies production
products to Jaguar Land Rover Limited is eligible for JLRQ consideration.
Subcontractors are not eligible for JLRQ status.
JLRQ means that the supplier facility achieves excellence in these key areas:
capable systems, ongoing performance, site action plan, customer endorsement
and continuous improvement.

Capable Systems
What are the capabilities of a supplier’s underlying systems?
JLRQ evaluates this aspect of business by your registrar third-party ‘in good
standing’ certification to ISO/TS 16949 / IATF16949 quality standards, and the ISO
14001 environmental standard. Suppliers must also pass a MMOG materials
management system assessment. Compliance to these standards is required to
receive and keep JLRQ status and is discussed in more detail in Appendix A.

Ongoing Performance
What is the supplier’s performance history with Jaguar Land Rover Limited?
JLRQ uses five key performance metrics in determining a supplier’s JLRQ score:
Field Service Action: Has Jaguar Land Rover Limited had to intervene because of a
supplier failure?
Stop Shipments: Is vehicle rework, modification or re-inspection necessary
due to poor product availability or quality?
PPM Performance: Does a supplier deliver consistently high-quality products?
Delivery Performance: Do products arrive on time, at the correct location, in
the proper quantity and with the correct information?
Violation of Trust: Does a supplier properly notify Supplier Technical Assistance
(STA) of changes in manufacturing process, equipment, material and sub supplier
changes?

JLRQ reports these metrics as part of the Supplier Improvement Metrics (SIM)
system. Suppliers can look up their JLRQ status (updated daily) and their overall
score (updated monthly), in their SIM summary report. The JLRQ performance
metrics are discussed in more detail in Appendix B.

JLRQ suppliers are responsible for the total quality of the goods and services
they provide to Jaguar Land Rover Limited. This means that JLRQ suppliers
are responsible not just for their own sites, but for the quality of any product
which a subcontractor manufactures.

4 5
 JLRQ Requirements cont’d
Manufacturing Site Assessment
How do things measure up on-site?
The Manufacturing Site Assessment evaluates whether the supplier is performing up
to customer expectations. JLRQ suppliers will perform a site assessment as follows:
• Quality Segment I and II every 6 months
• Quality Segment III and IV every 12 months
The Site Assessment determines if the site satisfies JLRQ requirements and will
identify any opportunity for improvement. Are systems and processes still operating
at the same high level as when the supplier achieved JLRQ status? Have
performance or manufacturing process capabilities advanced in order to meet or
exceed new market expectations?

The JLRQ site assessment addresses:

Planning and Demonstration of Manufacturing Process Capability: What is a
given facility capable of? Have they planned to best leverage its manufacturing
and quality potential?
Variability Improvements (Consumer Driven 6 Sigma): Does the manufacturing
process demonstrate ongoing variability reduction on current business? Does a
supplier plan introduction of variability reduction techniques for new programmes?
Manufacturing Efficiencies: Does the supplier exhibit a systematic approach
to lean manufacturing for current parts? Are surrogate data, First Time Through
(FTT) and Overall Equipment Effectiveness (OEE) used to improve new
programmes? Has the supplier achieved lean manufacturing improvements on
current business?
Customer Satisfaction: Has the supplier achieved customer satisfaction
improvements on current business and are these improvements documented
in robust Quality Operating System (QOS)?

On a case-by-case basis Jaguar Land Rover Limited STA may also conduct formal
re-evaluation of a supplier’s JLRQ status. This review is influenced by historical
quality performance, recent product launch concerns and potential impact on overall
customer satisfaction. A detailed discussion of the Manufacturing Site Assessment is
provided in Appendix C.

6 7
 JLRQ Requirements cont’d
Customer Endorsement

Are the supplier’s customers satisfied with the service and quality they receive?
Each supplier must obtain customer endorsements proving it consistently meets the
needs of its Jaguar Land Rover Limited customers. Each Jaguar Land Rover Limited
plant that receives a supplier’s products, as well as Material Planning & Logistics
(MP&L), Supplier Technical Assistance (STA), must provide the supplier with an
endorsement. Jaguar Land Rover Limited plant endorsement is solely based on a site’s
most recent performance in the immediate six months prior to the following criteria:
• No stop shipments with any supplier responsibility
• Commodity PPM is less than 150% of the relevant industry commodity PPM
• Six months delivery rating (weighted average) of 81 points or higher and last 3 months
greater than or equal to 100, (96 points may be acceptable if overall performance is
satisfactory) and MMOG/LE self-assessment = Level A.
• Six-month QR trend shows improvement or flat trend
• Site action plan is effective in addressing manufacturing quality concerns

Jaguar Land Rover Limited plants may withdraw their endorsement based on a site’s
performance such as listed above. The Jaguar Land Rover Limited plant will document
the basis for their decision and will discuss their rationale with STA prior to supplier
notification.
Loss of any customer endorsement is entered in the Manufacturing Site Assessment.
The site is required to submit a corrective action plan to STA within 30 days of the
loss of the endorsement.

Continuous Improvement
Are suppliers getting better each year?
The ability to drive continuous improvement is built into JLRQ. To maintain JLRQ
status, suppliers must embrace continuous improvement. With this in mind, the JLRQ
thresholds for performance metrics and site assessment may be raised to encourage
overall continuous improvement. In the final analysis, the automotive customer of
tomorrow will demand and accept no less.

8 9
 JLRQ Score
JLRQ Score = Capable Systems + Ongoing Performance + Manufacturing Site
Assessment
How are Capability, Performance and Manufacturing Site Assessment tabulated to
arrive at a final score?
• JLRQ Score: Suppliers must maintain an overall score of at least 800 points for
JLRQ status. Every site begins with a 1,000 point JLRQ score.

• Capable Systems: Sites must maintain certification to ISO/TS16949(or IATF16949),

ISO14001 and compliance to MMOG (Appendix A).

• Ongoing Performance: Sites gain or lose points based on their performance metrics
and must perform to the minimum JLRQ scoring thresholds (Appendix B).

• Manufacturing Site Assessment: Site must meet all JLRQ manufacturing

requirements and implement an effective corrective action plan. The site will use the
latest site assessment checklist available on the Jaguar Land Rover Limited Supplier
Portal.

Sites that do not meet JLRQ requirements or fail to perform ongoing manufacturing
site assessment at the required frequency or fail to implement an effective corrective
action plan, will lose 250 points and may lose JLRQ status.
This applies whether the site is a new supplier or an existing JLRQ location that
wishes to keep JLRQ status.

10 11
 Consequences
Revocation of JLRQ
A supplier’s overall JLRQ score will be updated monthly to reflect the most recent
six months of mature data. Suppliers must maintain a minimum of 800 points.
Certain situations may result in a recommendation to revoke a supplier’s JLRQ
status:

• Loss of certification to ISO 14001 or ISO/TS 16949(or IATF16949)

• Field Service Action with any supplier responsibility

• Two or more stop shipments with supplier responsibility (JLRQ impact may be
waived if the supplier demonstrates proactive intervention and the suspect
component has not been used in Jaguar Land Rover Limited production and the
underlying root cause is resolved in a timely manner, as agreed by STA).

• Monthly commodity PPM exceeds any relevant industry commodity PPM in any of
the five forward months after the six-month commodity PPM exceeds the industry
commodity by 100%, with the site PPM greater than 400

• Delivery rating falls below 81 points

• Manufacturing site assessment is delinquent, or the corrective action plan is

delinquent or ineffective in execution

• Violation of Trust (refer to Appendix B)

• Overall JLRQ score falls below 800 points

If a supplier has not satisfactorily addressed the performance or customer

satisfaction problem, the supplier’s JLRQ status will be affected.

These situations cannot be offset in the JLRQ score by positive performance in

other areas. STA will make the final determination on supplier JLRQ status. To
regain JLRQ, the supplier must satisfy all requirements for six consecutive months,
and obtain STA and customer endorsements, as appropriate.

12 13
 Benefits of JLRQ
Your JLRQ status has many benefits, most importantly, membership among
the industry’s best, with the associated respect and rewards:

• Recognition: Displaying the JLRQ Certificate is a sign that your facility meets
accepted standards of quality and supply performance.

• Publicity and Advertising Privileges: JLRQ status will enable you to advertise
and publicize your company with the additional prestige of JLRQ. Suppliers are
required to obtain approval from Jaguar Land Rover Limited Public Affairs as a
prerequisite of use.

• Self-Certification: As a JLRQ supplier, you will be eligible, with STA

concurrence, to self-certify to the PPAP requirements of ISO/TS 16949
(IATF16949.)

• Preferred Status with Jaguar Land Rover Limited: JLRQ facilities are
considered preferentially for new product development and sourcing.

14 15
 Applying for JLRQ
Jaguar Land Rover Limited Supplier Technical Assistance (STA) will help you
through the JLRQ process. The first thing you’ll need to do is contact your Jaguar
Land Rover Limited STA Site Engineer .
The STA Site Engineer will then guide you through the steps necessary before you
can make a formal JLRQ application. For example:
• Is your site eligible for JLRQ status?
• Who are your Jaguar Land Rover Limited assembly and manufacturing plant
customers for JLRQ consideration?
• What is your classification: a new supplier, a new manufacturing site of an existing
supplier or a manufacturing site attempting to qualify initially for JLRQ status?
• What Manufacturing Site Assessment approach will be used – Jaguar Land Rover
Limited STA or self-assessment?

Your facility will conduct a self-evaluation to ensure that you meet JLRQ criteria.
Once you believe your facility is ready, based on the site performance reported
in SIM, the next step is to obtain the necessary customer endorsements. These
endorsements are valid for six months from the date of the signature on the
endorsement documents.
The next step in the JLRQ process is formal application to Jaguar Land Rover
Limited STA. When your self-evaluation shows your site to be up to JLRQ standards,
and you have collected the necessary customer endorsements, notify your STA Site
Engineer in writing, along with documentation of your certification to ISO/TS 16949
(IATF16949) and ISO 14001, and compliance with MMOG. Jaguar Land Rover
Limited STA will take it from there. A JLRQ on-site evaluation may be scheduled to
review your qualifications for JLRQ. The responsible STA manager will provide a final
recommendation based on demonstrated site capabilities, performance metrics,
manufacturing site assessment and the overall JLRQ points maintained during the
prior six months of mature data.

Administration
Suppliers must have at least six consecutive months of production shipping history. If
a supplier location has not shipped to Jaguar Land Rover Limited within the prior 12
months, it is considered inactive and is no longer considered to meet JLRQ
requirements.
JLRQ is a Jaguar Land Rover Limited-exclusive designation. Facilities that no longer
ship to Jaguar Land Rover Limited may not advertise their JLRQ status or display the
JLRQ Certificate.
For external production suppliers, Jaguar Land Rover Limited Supplier Technical
Assistance (STA) administers the JLRQ programme.

On-line Availability
This document and information relating to JLRQ are accessible to suppliers on the
Jaguar Land Rover Limited Supplier Portal.

16 17
 Appendix A
CAPABLE SYSTEMS:
Basics
Before a supplier is considered for JLRQ, it must demonstrate system capability in
several areas. These capabilities must also be maintained for the supplier to keep
JLRQ status.

ISO 14001 – Environmental Management System

JLRQ suppliers share a key role in our environmental commitment and efforts
toward continuous improvement.
All JLRQ supplier-manufacturing sites are to be third-party certified to ISO 14001.
Sites which are not certified at that time may lose 250 points and JLRQ status. New
suppliers and suppliers reinstated to JLRQ status must be third-party certified to
ISO 14001.

ISO/TS 16949 (IATF16949) – Quality Management System

ISO/TS 16949 (IATF16949) provide a framework of fundamental quality systems
that enable continuous improvement and emphasize defect prevention and the
reduction of variation and inefficiency within the value chain.
JLRQ suppliers are required to be third-party certified to ISO/TS
16949(IATF16949). Sites which are not certified will lose 250 points and JLRQ
status.

MMOG – Materials Management Operations Guideline

Jaguar Land Rover Limited utilise MMOG to drive the use of fundamental material
management systems and processes that result in outstanding delivery
performance, exceptional customer satisfaction and continuous improvement.
JLRQ suppliers are required to submit an annual self-assessment indicating
compliance to MMOG. The appropriate self-assessment summary must be
submitted to STASAP@jaguarlandrover.com annually. As before, random on-site
reviews of supplier compliance will continue. If a supplier is found to be out of
compliance and its corrective action plan does not meet MP&L requirements based
on effectiveness and timeliness, JLRQ status may be jeopardized.

18 19
 Scoring Thresholds
Metric Points
JLRQ Appendix B
Status
F ie ld S e rv ic e A ny supplier
1in six mo nths -250 po ints Revo ked
A c t io n respo nsibility
Ongoing Performance: Scoring Thresholds
0 in six mo nths 0 po ints
S t o p S hipm e nt
A ny supplier
1in six mo nths -100 po ints
Every supplier site starts with a JLRQ score of 1,000 points. Based on calculations in
respo nsibility
2 o r mo re in six mo nths -250 po ints Revo ked
the five metric categories which reflect the most recent six mature months of data,
Step 1: Impro vement vs. Industry Co mmo dity the sites gain or lose points according to their performance. Suppliers must have a
PPM : minimum of 800 points to maintain JLRQ status. For example, if a supplier has any
100% +100 po ints responsibility in a Field Service Action, the site loses 250 points, the JLRQ score
75% to 99% +75 po ints drops to 750 and JLRQ status is revoked.
50% to 74% + 50 po ints Some categories, like Stop Shipment, have specific thresholds. A supplier must
25% to 49% + 20 po ints
measure up to those thresholds in order to maintain JLRQ status.
11% to 24% +10 po ints Certain categories, like Parts Per Million (PPM) performance are measured on
PPM 0% to 10% 0 po ints a sliding scale. If suppliers achieve or outperform PPM targets, they gain points,
C o m m o dit y according to the extent by which they outperform expectations. If they miss the
P ro ductio n  -1% to -24% -25 po ints
P e rf o rm a nc e
 -25% to -49% -50 po ints mark, they lose points accordingly.
-50% to -74% -100 po ints
As part of JLRQ’s commitment to continuous improvement, both the baseline
threshold to achieve JLRQ (800 points), and the thresholds necessary to succeed in
-75% to -99% -125 po ints
each category and retain JLRQ status, will increase as time goes on.
≥ -100% -150 po ints
Remains -150 pts unless co mmo dity P P M
exceeds industry P P M Field Service Action (0 or –250 points)
Step 2: Exceed Industry Co mmo dity P P M in Directly impacts Customer Satisfaction and Brand Image
any mo nth fo r any co mmo dity during the next -250 po ints Revo ked
five mo nths When Jaguar Land Rover Limited must intervene with a Field Service Action in which
0 PPM + 100 po ints the supplier has responsibility, or the supplier has involved Jaguar Land Rover
P P M 6 M o nt h Limited in a Field Service Action due to their own actions, the supplier site loses 250
P ro ductio n 1P P M to 60 P P M +50 po ints
S it e   
61P P M to 100 P P M 0 po ints points and JLRQ status.
100 +100 po ints
Stop Shipment (0 to –250 points)
D e liv e ry R a t ing 97 to 99 +50 po ints
P ro ductio n
 81to 96 0 po ints Directly impacts Customer Satisfaction
belo w 81 -250 po ints Revo ked If Jaguar Land Rover Limited experiences two or more Stop Shipments, the supplier
1st no tice: loses 250 points and JLRQ status. JLRQ impact may be waived if the supplier
M a nuf a c t uring
Site A ssessment o r Site A ctio n P lan is late o r Site A ctio n
-150 po ints demonstrates proactive intervention, the suspected component has not been used in
S it e
P lan is ineffective ( refer to A ppendix C) 2nd no tice: Jaguar Land Rover Limited production and the underlying root cause is resolved in a
A s s e s s m e nt Revo ked
-250 po ints timely manner, as agreed by STA.
V io la t io n o f A trust issue which severly impacts the o ngo ing Fo rd-Supplier
-250 po ints Revo ked
T rus t business relatio nship (refer to A ppendix B )

Wa rra nt y Warranty no t part o f JLRQ sco ring at this time.

 Negative po ints are o nly assigned fo r sites with P P M greater than 400
Service delivery data repo rted but no t part o f JLRQ sco re
Requires at least two mo nths o f shipping activity to receive any po ints
Negative po ints do no t apply to P ro ductio n six-mo nth site P P M
Co mmo dities ≥ 10% o f site six-mo nth shipments are co nsidered fo r Q1co mmo dity perfo rmance.

20 21
 Appendix B cont’d

PPM (+100 to –250 points)

Provides incentive for continuous improvement, increasing Customer

Satisfaction
Site PPM: A site can gain positive JLRQ points by achieving 60 or less overall
PPM for production site PPM. A site will no longer lose points for site production PPM
performance.
Commodity PPM: A supplier can gain positive JLRQ points by outperforming the
industry commodity PPM. If a site provides multiple commodities, it will only
receive points for the worst performing commodity. Negative points are only assigned if
the site PPM is greater than 400. Sites can receive positive points when they
outperform the commodity PPM.
Should a site’s six-month commodity PPM level, for either production or service,
exceed the ongoing industry commodity PPM by 100% or more, and the site PPM
is greater than 400, the site will lose 150 points. When this situation occurs, the
site commodity PPM cannot exceed the monthly industry commodity PPM in any
month for any commodity during the five subsequent months, regardless of customer,
or the site will lose 250 points and JLRQ status.
The industry commodity PPM level will be locked for 12 months based on the prior
12-month industry PPM for each low commodity.
To gain or lose points for PPM performance, suppliers must have shipment activity
in two of the prior six months.

Low-volume rule: If the six-month overall site shipment for production is less than
40,000 pieces and the site has five or fewer rejected pieces, it will not receive
negative points for either commodity or site PPM performance. A supplier can
receive positive points when it outperforms industry commodity PPM or it achieves
60 or fewer PPM.
PPM points are determined as indicated in the Scoring Thresholds Table
(Page 20)

22 23
 Appendix B cont’d

Delivery Rating (+100 to –250 points)

Drives excellence in communication and shipping performance
A Supplier can gain positive JLRQ points for production delivery performance based on
the weighted six-month average delivery rating. Suppliers must have shipment activity in
at least two of the prior six months to gain positive points for delivery performance. If a
site receives multiple production delivery ratings, it will only receive points for the worst
production ratings.
If a supplier’s production Delivery Rating falls below 81 points for
(i) the weighted six-month average, (ii) for the last two mature months and
(iii) for the current month, the supplier will lose 250 points and JLRQ status.
Should a supplier’s weighted six month average delivery rating fall below 81 points,
and there is no shipment activity in either the current month or one of the last two
mature months, the site will receive zero points.
Delivery points are determined as indicated in the Scoring Thresholds
Table (Page 20)

Violation of Trust (0 or –250 points)

Drives integrity and trust essential to the JLRQ relationship
If Jaguar Land Rover Limited Supplier Technical Assistance (STA) determines that a
supplier has committed a Violation of Trust, it will lose 250 points and JLRQ status. A
Violation
of Trust occurs when a supplier fails to notify STA and obtain approval through
the Supplier Request for Engineering Approval (SREA) process for:
• Manufacturing or equipment process change (including tooling) or location change.
• Component or material change or substitution.
• Sub-contractor or vendor change.
Other examples of Violation of Trust may include:
• Launch ramp-up or rate of climb which adversely impacts plant build schedule versus
the agreed timing.
• Self-certified PSW is incomplete or inaccurate.
• PSW supporting data lacks integrity.
• Other trust issues which severely impact the ongoing business relationship with Jaguar
Land Rover Limited.

24 25
 Appendix B cont’d

Warranty Performance

Warranty performance is not included in JLRQ scoring at this time but this may be
subject to review in the future.

26 27
 Appendix C
JLRQ – Manufacturing Site Assessment

Principle: The Manufacturing Site Assessment defines Jaguar Land Rover Limited
quality requirements and is a key component of JLRQ. The assessment reviews the
fundamental areas of the supplier quality system by evaluating how well the site has
planned for and demonstrated manufacturing process capability. Suppliers must
demonstrate these fundamentals based on objective evidence in order to achieve
and keep JLRQ.
Satisfying the fundamental areas of the quality system is essential to delivering
manufacturing efficiencies, variability reduction and ultimately, customer satisfaction.
These areas are the basis of continuous improvement around which Jaguar Land
Rover Limited and the supplier’s manufacturing site will establish an ongoing
collaborative relationship. The Manufacturing Site Assessment has been updated
with additional emphasis onsite QOS, customer satisfaction, warranty performance,
launch performance, sub-supplier process control and lean manufacturing metrics.
The site assessment impact on a supplier’s JLRQ score is supported by a two-step
process at the discretion of the STA engineer. The process will be triggered when
the:
• Site assessment is late to the required 6 or 12 month frequency.
• Corrective action plan is not submitted to the STA engineer within 30 days after
the site assessment.
• Corrective action plan is ineffective in its execution.
The first STA action will result in a loss of 150 points, and the second STA action
will result in a loss of 250 points and JLRQ status.

Fundamentals: Suppliers will perform a full site assessment based on the site
quality segment status – Segments I and II every six months; Segments III and IV
every 12 months.
The site assessment addresses the following areas of manufacturing process
capability:
Planning for Manufacturing Process Capability
- Quality procedures, ISO/TS 16949 (IATF16949,) QOS
- FMEAs, Control Plans
- Employee Readiness, Training Review
- APQP, Launch, PPAP, Run-at-Rate Review
- Manage the Change

28 29
 Appendix C cont’d
JLRQ – Manufacturing Site Assessment (cont’d)
Demonstration of Manufacturing Process Capability
- Sub-supplier Quality Management
- Control of Incoming Quality
- Control Plans, Operator Instructions
- Process Variability Monitoring, Reduction
- Gauge Calibration and Use
- Part Identification, Non-conforming Parts, Packaging, Shipping
- Testing, Engineering Specifications
- Preventive Maintenance (PM), Housekeeping
- Manufacturing Flow, 6-Sigma and Lean Manufacturing Metrics
- Problem Solving, Corrective Actions

Suppliers must evaluate each area and based on objective evidence determine if all
JLRQ manufacturing site requirements are satisfied. If a supplier fails to complete and
submit their Manufacturing Site Assessment to the STA engineer at the required 6
or 12 month frequency, it may lose 250 points and JLRQ status. Instructions for
submission of the site assessment can be found on Jaguar Land Rover Limited
Supplier Portal.
A more detailed explanation of the site requirements, including the JLRQ Site
Assessment Summary, follows this section.
Any area of the manufacturing site assessment not meeting JLRQ requirements will
necessitate a site corrective action plan. The supplier will develop and begin
implementation of the corrective action plan within 30 days of the site assessment.
Failure to execute an effective and timely corrective action plan may result in a
loss of 250 points and JLRQ status. Jaguar Land Rover Limited STA will participate
and review the site assessment, including corrective action plan follow-up, on a case-
by-case basis.

30 31
 Appendix C cont’d
JLRQ – Manufacturing Site Assessment (cont’d)

Continuous Improvement: A supplier must demonstrate that it meets the site

assessment requirements to maintain JLRQ status. To achieve continuous
improvement and maintain competitive advantage, suppliers should develop and
implement specific action plans for current business and new programmes, as follows:
Launch Performance: Suppliers are expected to have a process in place to
manage new vehicle programme launches with the objective to achieve flawless
launch execution. Key requirements for supplier launch performance include:
• Tracks performance to meet PSW dates and maintains a process to manage
sub-suppliers.
• Supports vehicle prototype and pre-production build events in a timely manner.
• Conducts Fresh Eye Reviews on all new products, gauges, processes, and
equipment, and documents the findings with action plans implemented for all
areas needing improvement.
• Conducts milestone reviews to communicate launch status, open issues, and
issue closure status to supplier senior management.
• Captures and incorporates lessons learned into future programme launch plans
Suppliers must meet programme launch requirements, including responsiveness
and closure of any identified launch readiness issues, in an agreed-upon,
timely manner. If a supplier fails to meet launch requirements based upon
manufacturing quality requirements, it may lose 250 points and JLRQ status.
Lean Manufacturing: suppliers will drive FTT and OEE improvement through
specific actions documented in their Quality Operating System (QOS).
Variability Reduction: suppliers will drive Ppk and Cpk improvements on all
Significant Characteristics (SC), Critical Characteristics (CC) and High Impact to
Customer (HICs) through specific actions documented in their QOS.
Customer Satisfaction: suppliers will drive improvement in Things Gone Wrong
(TGW) and repairs per 1000 (R/1000) developing specific action plans that are
documented in their QOS.

32 33
 Expectations
Supplier must list evidence to support each Expectation.
I.1. Quality procedures/ISO/TS 16949(IATF16949)/QOS

I.1.1 Supplier’s quality system is third-party certified to the ISO/TS 16949 (IATF16949)
requirements.

I.1.2 Existing Supplier’s environmental system will be certified to ISO 14001. Non-JLRQ
suppliers must comply to ISO 14001 requirements prior to JLRQ award or JLRQ
reinstatement.

I.1.3 Supplier’s quality manual contains processes for all areas of the site assessment.
The quality manual is updated as needed to drive statistically valid continual
improvements in the supplier’s quality system. Supplier’s Senior Management Team,
including representatives from Manufacturing, Quality, Engineering and Human
Resources perform these reviews.

I.1.4 Non-conformances identified in internal audits are not repeated.

I.1.5 Supplier has a documented process to identify and regularly update customer
expectations, objectives and requirements.

I.1.6 Supplier has a documented process to identify and regularly update internal
expectations, objectives, and requirements.

I.1.7 Supplier has a documented process to translate internal and external expectations,
objectives and requirements into QOS measurables.

I.1.8 Supplier has a documented process to assign targets and objectives to each QOS
measurable.

I.1.9 Supplier has a documented process to assign chosen measurables to appropriate

management levels for review, follow-up and improvements.

I.1.10 Supplier utilizes action plans to drive statistically valid continual improvement of
chosen metrics and are tracked at QOS review meetings.

I.1.11 Supplier’s management team holds monthly QOS performance review meetings
with representatives from Manufacturing, Quality, Engineering and Human Resources.
Improvement actions are taken by cross-functional teams that include levels of the
organisation.

I.1.12 QOS reviews include a review of all applicable Jaguar Land Rover Limited SIM
metrics, key process metrics and customer satisfaction metrics.

I.1.13 Metrics monitoring customer satisfaction that are related to supplier manufacturing
are understood and tracked.
34 35
 Expectations cont’d

I.2. FMEAs/Control Plans

I.2.1 All Jaguar Land Rover Limited parts have documented design and process
failure mode and effects analysis (DFMEA, PFMEA and Control Plans). There is a
robust process in
place for developing these documents.

I.2.2 FMEAs are reviewed annually and as issues arise. A Pareto is used to focus on
1) severity, 2) the product of severity and occurrence and 3) to identify high
RPNs in order to prioritize actions to drive improvements.

I.2.3 All error detection areas are reviewed and plans exist to move to error prevention
devices (poke yoke), where feasible.

I.2.4 Supplier, in cooperation with their customers, has identified Significant

Characteristics (SCs) and High Impact Characteristics (HICs), where applicable,
on their PFMEAs and Control Plans for every Jaguar Land Rover Limited part or family
of Jaguar Land Rover Limited parts.

I.2.5 Supplier works with Jaguar Land Rover Limited (i.e., Programme Vehicle Teams
(PVT), Programme Engineering Office (PEO), Component Review Teams (CRT),
Supplier Technical Assistance (STA) to establish final agreement of SCs and HICs.
Suppliers obtain specific agreement from Jaguar Land Rover Limited for any parts not
having SCs or HICs.

I.2.6 Supplier ensures that all print dimensions and call-out notes on the engineering
drawing are always met through Control Plans, work instructions, job set-up
instructions and receiving inspection.

I.2.7 Supplier verifies pass-through characteristics and ensures that zero defects are
at Jaguar and Land Rover plants and final customer.

I.2.8 Control Plan is a result of appropriate quality planning and includes clear linkage
between DFMEA and PFMEA.

I.2.9 Control Plans contain the following elements:

• Operation number/name
• Part Name/Part Number
• Inspection Requirements
• Specifications
• Control Methods
• SC, CC, HIC (where applicable) and Engineering Specifications (ES) requirements
are identified
• SC, CC, HIC (where applicable) and ES Control Methods (in-process checks,
process gauging, and part gauging) are appropriate
• Error-proofing methods
36 37
 Expectations cont’d

• In-process control methods

• Sample size and frequency
• Required tools, gauges and other equipment
• Reaction plans must clearly direct the operator on how to act when a process begins
to go out of control, or a product fails an inspection or test

I.3. Employee Readiness/Training Review

I.3.1 Supplier is responsible for assessing the skills required to perform all activities
that affect product quality.

I.3.2 Employees have had a skills assessment, a training plan and evidence of
training.

I.3.3 Supplier ensures that only trained and qualified personnel are involved in all
aspects of the manufacturing of Jaguar Land Rover Limited parts.

I.4. APQP/Launch/PPAP/Run-at-Rate Review

I.4.1 Supplier has a APQP tracking mechanism in place.

I.4.2 Supplier has a system to manage new vehicle programme launches.

I.4.3 Supplier has a process in place to support Jaguar Land Rover Limited prototype
and pre-production build events in a timely manner.

I.4.4 Supplier has a process to continuously monitor and improve launch performance.

I.4.5 All PPAP documentation must contain the information per the PPAP manual
published by the Automotive Industry Action Group (AIAG) – this information must also
be available for Jaguar Land Rover Limited review. Suppliers have a process in place
to comply with Phased PPAP initial run-at-rate, production verification and capacity
verification.

I.4.6 Suppliers require sub-suppliers to have a process in place that effectively

satisfies all PPAP requirements regardless of sub-supplier business relationship with
Jaguar Land Rover Limited.

I.4.7 Run-at-rate must be completed and support the stated programme requirements
(at full-volume production levels) for all Jaguar Land Rover Limited parts.

38 39
 Expectations cont’d

I.4.8 Run-at rate must include the following elements and be performed on the entire
process or the slowest operation (process bottleneck): machine available hours,
shifts, days, machine downtime (planned and unplanned), machine change-over,
breaks, and quality or scrap.

I.4.9 Supplier monitors capacity and has a process to ensure ongoing sufficient
capacity on all Jaguar Land Rover Limited parts.

I.5. Manage the Change

I.5.1 Supplier has a documented process to effectively implement post – Job 1

design changes, process changes or volume changes.

I.5.2 Supplier effectively reviews and updates its quality supporting documentation
for these changes. Examples of documents that may require changes: Process
Flow Diagrams, FMEAs, Control Plans, Operator Instructions, Visual Aids and PPAP
documentation.

I.5.3 Supplier follows a documented process to ensure that proper Jaguar Land
Rover Limited approvals are gained prior to making process changes. The approval
process will include use of Supplier Request for Engineering Approvals (SREAs),
Change Request/Concern Report (CR/CR) in Worldwide Engineering Release
System (WERS), Management Alerts and revised PPAP documentation, as
appropriate.

II.1. Sub-supplier Quality Management

II.1.1 Supplier has a defined process for managing its supply base including
identification of those with a high-impact to quality.

II.1.2 Supplier requires sub-suppliers to have a quality operating system that is

similar to ISO/TS 16949 (IATF16949.) Supplier verifies sub-supplier compliance by
annual on-site assessment of high impact sub-supplier facilities.

II.1.3 Supplier requires PPAP for all parts from sub-suppliers (regardless of sub-
supplier business relationship with Jaguar Land Rover Limited).

II.1.4 Where Jaguar Land Rover Limited has defined an Engineering Specification
(ES), or special characteristics that are the responsibility of the sub-supplier, the sub-
supplier must show compliance to the ES or special characteristics in its PPAP
submission to the Tier One supplier.

40 41
 Expectations cont’d

II.1.5 Supplier requires sub-suppliers to take specific actions to ensure that all pass-
through characteristics are to the customer’s specifications.

II.1.6 Supplier must confirm sub-supplier compliance by review and approval of

sub-supplier PPAP submission prior to incorporation of product in supplier manufacturing
process.

II.1.7 Supplier conducts systematic reviews with sub-suppliers and assures

implementation of corrective actions across supplier facilities for all issues resulting in
stop ship or field action.

II.2. Control of Incoming Quality

II.2.1 Supplier has a strategy for receiving inspection.

II.2.2 Incoming quality requirements are part of a Control Plan. If incoming quality
inspections are made, there is evidence of the specification and compliance to
the specification. If no incoming inspections are made, there is a rationale for
qualifying sub-suppliers.

II.2.3 Incoming Quality Operator follows a reaction plan if raw material or purchased part
is found to be out of specification.

II.2.4 Supplier has appropriate resources to manage sub-supplier quality, including on-
site assessment of high-impact sub-supplier facilities.

II.3 Control Plans/Operator Instructions

II.3.1 Standardised operator instructions (including Control Plans, work instructions, job
aids, check sheets, job set-up instructions and illustrations) are developed and
available for operators.

II.3.2 Standardised operator instructions are legible, specific and controlled. The
instructions are available in the area where the work is being performed and are followed
by operators as written.

II.3.3 Reaction plans are clearly defined and protect Jaguar Land Rover Limited from
non-conforming materials.

II.3.4 Control Plans are revised and updated when products or processes differ from
those in current production.

42 43
 Expectations cont’d

II.4 Process Variability Monitoring/Reduction

II.4.1 Supplier has determined appropriate statistical techniques. A key aspect of defect
prevention is process variability reduction and the use of SPC to indicate when
action is necessary (such as adjustments and tooling changes), and conversely,
when processes should be left alone.

II.4.2 Operator-based SPC control charts are optimized for statistically valid sample
frequency, sample size and appropriate chart type. SPC checks are performed on a
timely basis and out-of-control conditions prompt corrective action as appropriate.

II.4.3 SPC data is maintained, monitored and used by the equipment operators to drive
process and product improvements by reducing process variability. Evidence of
process improvements include: reductions in scrap, reductions in rework/repair and
DPU; increases in first-time-through capabilities, Rolled Throughput Yield (YRT),
Cpk, Process Sigma level, records of error proofing mechanism implementation;
and reductions in machine downtime.

II.4.4 Ppk and Cpk levels are greater than or equal to 1.67 and 1.33 respectively, for
all SCs, CCs, and HICs (where applicable). For all SCs and CCs, Cpk trends are
tracked over time, and action plans have been put in place to increase these Cpk
values by a process of continuously reducing the causes of variability. These trends
are part of the Supplier’s Management routine review.

II.4.5 Machine capability for SCs, CCs and HICs (where applicable) must be
demonstrated on all new equipment and tooling.

II.5. Gauge Calibration and Use

II.5.1 Supplier ensures that all gauges are available for use as identified in the Control
Plan. The gauge calibration and gauge maintenance programme ensures that back-up
gauges or a back-up gauging process is available to support inspections required by
the Control Plan.

II.5.2 Variable gauges are used for all SC’s and CC’s, whenever possible. HIC gauges
are per the Control Plan. All gauges (company and employee-owned) are identified per
the Control Plan.

II.5.3 Gauge R&R is to conform with the guidelines in the AIAG Measurement Systems
Analysis (MSA) manual. Whenever gauge R&R does not meet these guidelines,
specific plans are in place which adhere to the guidelines.

II.5.4 Supplier has a documented “dropped/damaged gauge” policy that is followed by all
employees. This ensures that only functional, in-specification gauges are used.

44 45
 Expectations cont’d

II.5.5 Gauge masters are traceable to a national or international equivalent standard.

Gauge calibration and maintenance is performed on an appropriate schedule and
per specification.

II.6. Part Identification/Non-conforming Parts/Packaging/Shipping

II.6.1 Supplier has a documented process for positive part identification in all stages
of production, testing, laboratories, storage areas, office areas, etc.

II.6.2 Supplier has lot traceability of product after shipment to Jaguar Land Rover
Limited.

II.6.3 Supplier takes measures to ensure that production processes control handling,
storage and packaging as to prevent damage or deterioration, and preserve
product quality.

II.6.4 Supplier follows Jaguar Land Rover Limited packaging requirements.

II.7 Testing/Engineering Specifications

II.7.1 All inspections, measurements and tests, including Engineering Specifications

(ES) and Material Specifications (MS), are performed according to documented
control plans, instructions and/or procedures to ensure product requirements are
met.

II.7.2 Appropriate reaction plans address what actions should take place if there is a
test or inspection failure, and includes product containment and customer notification
policy for all events.

II.7.3 Suppliers and sub-suppliers providing heat-treated components are required to

meet Jaguar Land Rover Limited Manufacturing Standard W-HTX and demonstrate
compliance using the Jaguar Land Rover Limited Heat Treat System Survey
Guidelines. To reduce the risk of embrittlement, heat-treated steel components are
required to conform with Jaguar Land Rover Limited material specification WSS-
M99A3-A.

II.8 Preventive Maintenance (PM)/Housekeeping

II.8.1 Supplier has instituted practices that include reactive, preventive and predictive
maintenance. The maintenance system supports process capability improvement.

46 47
 Expectations cont’d

II.8.2 Management regularly reviews (at least quarterly) the status of the PM
completion to plan. Management reviews corrective action plans to ensure any
backlog (past due) maintenance and has a plan to become current to the PM
schedule. Management undertakes an evaluation to determine if there is a reduction
of machine/process downtime.

II.8.3 The supplier has continuous improvement plans for plant cleanliness,
housekeeping, ergonomics and working conditions, and audits their facility at
least monthly. There is evidence that the supplier management team is following
continuous improvement plans.

II.8.4 Supplier takes measures to minimize foreign material, chips, debris,

contamination, excessive oil, etc., where part quality can be negatively affected.

II.9 Manufacturing Flow/6-Sigma and Lean Manufacturing Metrics

II.9.1 Supplier uses Lean manufacturing and 6-Sigma principles for current and new
model parts incorporating just-in-time production (JIT), waste elimination and
team-based structured problem solving to drive continuous improvement for quality,
process capability and manufacturing efficiency.

II.9.2 Supplier includes key manufacturing and 6-Sigma-type measurables within its
QOS. A minimum of two Lean- and one 6-Sigma-type measurables show trends or
history of improvement in the past six months. Lean and 6-Sigma measurables
include some of the following: First Time Through (FTT), Overall Equipment
Effectiveness (OEE), Dock To Dock (DTD), Percent Value Add (PVA) and Cpk.

II.10 Problem Solving/Corrective Actions

II.10.1 Supplier uses a structured problem solving method (e.g., 8D) to address
customer concerns and complaints.

II.10.2 Methods are established to communicate quality concerns to the supplier’s

production and support personnel. Corrective actions are submitted to the supplier’s
management team for review. The corrective actions are communicated to and
replicated in all affected areas in the supplier’s organisation.

II.10.3 Supplier has a process in place to address customer plant concerns in a

timely and thorough manner.

II.10.4 Supplier reviews previous launches and incorporates lessons learned into
future launch plans to achieve flawless launch.

48 49
 Glossary
Delivery Rating: Suppliers are rated in relation to their overall delivery
performance to each Jaguar Land Rover Limited receiving location based on
advance shipment notice data and actual on-time shipment performance in meeting
customer production requirements.

Field Action: Field Actions are Recalls and Owner Notifications.

Global Site Management Database: Used in supplier management and

the collection of JLRQ Capability and Manufacturing Site Assessment data.

Commodity Codes: A grouping of like parts which is identified by a

four-digit alpha-numeric code.

PPM: Parts Per Million. A calculation that measures the number of defective parts
received from a supplier per one million parts received. (Total Parts
Scrapped/Returned + Total Parts Reworked) / Total Parts Received) x 1 million.

SIM: Supplier Improvement Metrics. Web-based application that tracks and reports
data on Supplier performance based on a standard set of metrics defined by
Jaguar Land Rover Limited.

Stop Shipment: Vehicles impounded or quarantined in the vehicle marshaling

yard, rail cars or convoy trucks that have not departed from their loading sites.

50 51