Doc. No.

SQM
YAPP Brasil – Suppliers Quality Manual
Vers. No. 4.0
Manual da Qualidade de Fornecedores Rev. Date August, 25th 2020

REGULATIONS FOR YAPP BRAZIL SUPPLIER

SQM – Suppliers Quality Manual
Issued: Sep 06, 2018
Valid from: May 28, 2019
Version 2.0
This procedure is applicable to all employees of YAPP BRA.

Revision History
Date Changes Revision Level Approved
Sep 06, 2018 Initial version Create Mr. Qian Zhen

Add item 4.1; reviewed items

May 28, 2019 2.0 Mr. Qian Zhen
6.7;8.0; 10.5; 10.7; 10.9; 12.3
Add item 16; reviewed item 10.9
March 16, 2020 3.0 Mr. Qian Zhen
(added Note 1)
August 25, 2020 Reviewed item 10.4 4.0 Mr. Qian Zhen

Mr. Qian Zhen

General Director

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 Doc. No. SQM
YAPP Brasil – Suppliers Quality Manual
Vers. No. 4.0
Manual da Qualidade de Fornecedores Rev. Date August, 25th 2020

CONTENT

1. OBJECTIVE ....................................................................................................................................4
2. RESPONSIBILITY ........................................................................................................................4
3. APLICABILITY...............................................................................................................................4
4. GENERAL OVERVIEW...............................................................................................................4
5. YAPP BRAZIL RESPONSABILITIES ....................................................................................6
5.1 Supplier Responsibility..............................................................................................................6
6. SUPPLIER DEVELOP / SPECIFIC REQUIREMENTS .....................................................6
6.1 Certificate of Quality System Management .......................................................................6
6.2 Supplier Without Certification ................................................................................................6
6.3 Steps to Developing Suppliers ...............................................................................................6
6.4 Potential Visit .................................................................................................................................6
6.5 Supplier Capability Audit / Risk Analysis ..........................................................................7
6.6 Requirements of evaluation according each kind of supplier ..................................7
6.7 Audit Planning ...............................................................................................................................8
7. PRODUCT DEVELOPMENT ........................................................................................................8
7.1 System to Develop New Products .........................................................................................8
7.2 Situations that Need Submit/Notify Customer .................................................................9
8. PROCESS AUDIT ...................................................................................................................... 10
8.1 Reasons to reclassification – decrease level: .............................................................. 11
9. QUALITY REQUIREMENTS .................................................................................................. 11
9.1 Packaging ..................................................................................................................................... 11
9.2 Traceability and Identification ............................................................................................. 11
9.3 Quality Certificate ...................................................................................................................... 11
9.4 Layout Inspection ...................................................................................................................... 12
9.5 Special Characteristics ........................................................................................................... 12
9.6 Special Process Suppliers .................................................................................................... 12
9.7 Measurement System Analysis (MSA) ............................................................................. 12
9.8 Special Process Control (CEP) ............................................................................................ 12

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YAPP Brasil – Suppliers Quality Manual
Vers. No. 4.0
Manual da Qualidade de Fornecedores Rev. Date August, 25th 2020

9.9 Requirements for Calibration Laboratory ....................................................................... 13

9.10 Deviation Process for Suppliers....................................................................................... 13
10. EVALUATION/ MONITORING OF DIRECT SUPPLIERS ............................................ 13
10.1 Global Quality Index of Supplying - GQIS .................................................................... 14
10.2 QPR – Quality of Products Received ............................................................................... 14
10.3 PPM – Parts per Million ......................................................................................................... 14
10.4 QD – Quality of Delivery ........................................................................................................ 15
10.5 QMS – Quality Management System .............................................................................. 16
10.6 Process Audit ........................................................................................................................... 16
10.7 QA – Quality Assistance ...................................................................................................... 16
10.8 Results ......................................................................................................................................... 17
10.9 Action Plan................................................................................................................................. 17
11. MONITORING INDIRECT SUPPLIER ................................................................................ 18
12. MANAGEMENT OF NON CONFORMITY ......................................................................... 18
12.1 Reports of Non Conformity G8D ...................................................................................... 18
12.2 Controlled Shipping ............................................................................................................... 19
12.2.1 Implementation, Monitoring and Closure/Exit ........................................................ 19
12.2.2 Procedure to implement (CS1) e (CS2) ...................................................................... 19
12.2.3 Supplier Responsibility: ................................................................................................... 20
12.2.4 Closure of Controlled Shipping Level 1 and Level 2............................................ 20
12.3 Costs of Non Quality.............................................................................................................. 20
13. EVALUATION SUPPLIERS FACILITY .............................................................................. 21
13.1 Tooling Evaluation.................................................................................................................. 21
14. QUALITY DOCUMENTS ......................................................................................................... 21
14.1 Procedures and responsibilities regarding the Quality ......................................... 21
14.2 Keeping Records ..................................................................................................................... 21
14.3 Control of Drawings and Specifications ....................................................................... 22
14.4 Identification and Control of Material ............................................................................. 22
14.5 Check start of production.................................................................................................... 22
15. CONFIDENCIALITY .................................................................................................................. 22

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YAPP Brasil – Suppliers Quality Manual
Vers. No. 4.0
Manual da Qualidade de Fornecedores Rev. Date August, 25th 2020

1. OBJECTIVE

Define the requirements for selection, evaluate, development and nominate suppliers,
to assure that the Quality System of this suppliers be capable to achieve our necessities
and assure that the products buy by YAPP Brazil will be according the specifications and
on time.

2. RESPONSIBILITY

Responsibility of this procedure will fall into QCD and SCD departments.

3. APLICABILITY

To be applicable for all Supplier of YAPP Brazil.

Productive Supplier
 Raw Material
 Components

Non-Productive Supplier / Service

 Packaging
 Third Part
 Inspection (Rework/ Sorting)
 Calibration
 Sequencing
 Transport

4. GENERAL OVERVIEW

The Purpose of this manual is to define for our current and potential new Suppliers of
YAPP Brazil.
Expectations and requirements that are the backbone of a long term mutually beneficial
and profitable relationship.
Suppliers to YAPP Brazil, are expected to implement and maintain a robust Quality
Management System which promotes defect free products through prevention, monitoring
and continual improvement.
All expectations and requirements are intended to assure safe and reliable products
from Suppliers, which meet our Customers’ expectations for Quality, delivery and price.
We are committed to working with our Suppliers to assist in meeting this intent and to
provide for continual improvement, emphasizing defect prevention and waste reduction in
the supply chain.
YAPP Brazil will assess each Supplier’s ability to comply with the requirements
contained in this manual and based on the perceived risk assessment may include an on‐
site audit of the facility by the YAPP Brazil SQE or plant personnel.
YAPP Brazil expects all Suppliers to acknowledge and comply with the requirements
contained in this manual.

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YAPP Brasil – Suppliers Quality Manual
Vers. No. 4.0
Manual da Qualidade de Fornecedores Rev. Date August, 25th 2020

4.1 Supplier Code of Conduct

Suppliers shall ensure operations are being performed in a manner that is

appropriate, as it applies to their ethical, legal, environmental, and social responsibilities.
Below is a listing of the basic requirements:
Compliance with Local Laws and Regulations
Suppliers must adhere to the laws and regulations in the locality in which they reside.
This includes all local, state, and federal laws/regulations in the country of origin.
Compliance with Environmental, Health, and Safety Laws
The Supplier must maintain and operate its manufacturing/production facilities and
processes in accordance with local, state, and federal laws/regulations in the country of
origin.
At no time shall any Yapp person be exposed to hazardous materials or unsafe
conditions as a result of Supplier shipments to a Yapp location, or while visiting a Supplier’s
location. For items with inherent hazards, safety notices must be clearly visible. As
applicable, documented safety handling and protection information must be provided.
Product Safety
In all instances where a product is manufactured to a new design, for a new system, or
for a new application, it is important that Supplier and Yapp allocate responsibility for
assuring that all performance, endurance, maintenance, safety and warning requirements
are met.
Non-Discrimination
Suppliers shall not discriminate against race, color, sex, religion, age, physical disability,
political affiliation, or other defining characteristics as prohibited by local, state, and federal
laws/regulations in the country of origin.
Labor
Child Labor – Suppliers shall employ workers of minimum legal age in accordance
with local, state, and federal laws/regulations in the country of origin. Child labor laws must
be followed.
Forced/Indentured Labor – Suppliers shall not practice the use of forced or
indentured labor.
Work Hours/Days – Suppliers shall not exceed the daily and weekly working hours
as permitted by local, state, and federal laws/regulations in the country of origin.
Wages and Benefits – Suppliers shall compensate workers in accordance with local,
state, and federal laws/regulations in the country of origin. This includes minimum legal
wage, overtime wages, and benefits (required by law).
Ethics
Evidence of corruption, bribes, improper advantage, or any other form of illegal practice
by the Supplier or associated operations will terminate all relations with Yapp.
Code of Conduct and Policy Enforcement
This policy applies to Suppliers and their sub-tier sources. It is the responsibility of the
Supplier to verify and monitor compliance of this code at their operations and sub-tier
source operations.

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YAPP Brasil – Suppliers Quality Manual
Vers. No. 4.0
Manual da Qualidade de Fornecedores Rev. Date August, 25th 2020

5. YAPP BRAZIL RESPONSABILITIES

YAPP Brazil is responsible to provide all technical specifications and drawings relative
the product that will be produced, or the service that will be provide by the supplier.

5.1 Supplier Responsibility

Supplier is responsible, when applicable, to attend all items describe at this Manual,
and provide necessary resources to avoid fails/ non-conformity, operational or systemics,
to all product that will be produced or service that will be provided by the supplier.

6. SUPPLIER DEVELOP / SPECIFIC REQUIREMENTS

6.1 Certificate of Quality System Management

YAPP Brazil request for all suppliers for automotive products and services, develop,
implement and improve a Quality Management System certified by ISO 9001, with the final
objective become certificate at IATF16949, according the topics below:
a) Third part certification ISO 9001 issued by the certification company recognized
by IAF MLA (International Accreditation Forum Multilateral Recognition Arrangement) with
timing chart to implement IATF 16949.
b) Certification on ISO 9001 in accordance other requirements of SGQ defined by
the customer through second part audits.
c) Certification on ISO 9001 in accordance of requirements of IATF 16949.
d) Certification on IATF 16949 through third part audit. (Certification on IATF by
company recognized by IATF)

6.2 Supplier Without Certification

Suppliers without certification could supply just according the condition below:
Audited by YAPP Brazil SQE and approved by our customer
Supplier need send for YAPP Brazil all documentation related the quality system
management, updates and operational licensing according the law.

6.3 Steps to Developing Suppliers

To nominate a new supplier YAPP Brazil follow the steps below:

6.4 Potential Visit

For new suppliers the first item is potential visit, during this visit will be evaluate the
technology, capacity and knowhow of the supplier. This visit will be done by a YAPP buyer
or designated person and after the visit he will get the information to choose the supplier.

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6.5 Supplier Capability Audit / Risk Analysis

Supplier will provide self-audit using the Supplier Capability Audit and after YAPP Brazil
receive this information YAPP Brazil will schedule an audit to do evaluation based on
information provided by supplier. This is valid for new/currents supplier when YAPP Brazil
need new product.

6.6 Requirements of evaluation according each kind of supplier

QMS QMS
Category Evaluation
Minimum Improvement

ISO 9001 ISO TS16949

Supplier of Products (With timing chart to System Audit
implement IATF) IATF 16949

System Evaluate
Supplier of Indirect
ISO 9001 __ ISO 9001 of
Products
Manufacturer

Calibration ISO IEC 17025 Audit from

__
Suppliers (RBC / RBLE) calibration company

Supplier of
__ ISO 9001 Self Evaluation
Transport

Supplier of
__ ISO 9001 Self Evaluation
Packaging

Supplier of
ISO 9001 __ Self Evaluation
Sequencing

Suppliers of Service
ISO9001 __ A Self Evaluation
(Rework/Sorting)

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YAPP Brasil – Suppliers Quality Manual
Vers. No. 4.0
Manual da Qualidade de Fornecedores Rev. Date August, 25th 2020

6.7 Audit Planning

Type Frequency Scope Responsible

3 years / annual
Third Part
QMS maintanance QMS for products /
IATF16949 Annual Services
Certificated Auditor
Supplier ISO9001

Supplier Development New

Products / Services Supplier / YAPP
Capability Report Suppliers

Special Process
Audit
CQI-09 / CQI-11 / Annualy Manufacturing Process Supplier
CQI-12 / CQI-15 /
CQI-17 / CQI-23

Initial / According the

Self Audit - Supplier
result

Nota A – Annualy
Process Audit
Manufacturing Process
Nota B – Annualy YAPP Brazil - Quality
(item 8.1)
Nota C – Annualy
(item 8.1)

7. PRODUCT DEVELOPMENT

7.1 System to Develop New Products

All suppliers must approve the products according the systematic described on Manual
APQP and PPAP from AIAG.
For all products including new YAPP Brazil will send for the supplier a drawing with all
information relative to the product. For all products the level of PPAP for tier #1 is level 5,
except for raw material according the manual of PPAP and the specific requirement of our
customer.

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YAPP Brasil – Suppliers Quality Manual
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Manual da Qualidade de Fornecedores Rev. Date August, 25th 2020

Documentation requested must contain (when applicable):

 Submission cover with all information relative the product according the YAPP
Standard, with date of last engineering change, level of submission, kind of submission,
rate of production and IMDS ID.
 Process flow chart with all steps of process, including controls and expedition.
 PFMEA including all steps of process and characteristic of product.
 Control plan including all characteristic of product, frequency of monitoring and
tools/measurement equipment necessary.
 Capabilities studies for significant characteristics specified on drawings and
PFMEA also studies of R&R relative all equipment used on capability studies. Minimum
index for Capability study is Ppk/Cpk ≥ 1,67. In case of capabilities studies present bad
results, the supplier must improve the process or implement system to assure delivery of
parts 100% according specification, for example, 100% inspection.
 Dimensional report according YAPP standard including the drawing of product
and all dimensions with respective tolerances and results found during the measure.
 Report of material including the kind of material specified at drawing and
chemical composition and chemical specification used to manufacture the product.
 DVP List as the YAPP standard including all tests and specification according
drawing and one report for each test with the result and the standard that was used.
 Packaging form according YAPP standard with all information relative the
packaging and approved by supply chain and quality.
Any divergency among the specification and the drawing (dimensional, material or tests)
must be requested and approved through e-mail for Quality Department before delivery
samples and documentations.
For all new products the supplier must implement GP12 according the request of YAPP
Brazil SQE, during the PPAP they need decide together minimum period and items to
control during GP12.

7.2 Situations that Need Submit/Notify Customer

Situations below must be presented for our customer as a new submission of the
product:
 Corrections on tooling
 Engineering change or material change.
 New tooling or tooling without use for more 12 months.
 Change of material/ process
 Tooling modifications or new devices, molds
 Subtier change, for raw material, products or services
 Change on faciliteis of supplier
 Any change on process or equipment position

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YAPP Brasil – Suppliers Quality Manual
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Manual da Qualidade de Fornecedores Rev. Date August, 25th 2020

8. PROCESS AUDIT

For all suppliers that can affect the quality of our final product will be done a process
audit. For this process audit we going to use a Check List for process audit.
Note 1: Process evaluation of suppliers also could be done when requested by the
incoming inspector, for suppliers that affect our PPM or to close some G8D report
relationship of the supplier.

Table for process audit punctuation

Nºof Points Evaluation to meet the requirements

10 Requirement fully complet

8 Requirement almost complet, little divergences
6 Requirement partial complet, big divergences
4 Documentation not enough for requirement, big divergences

0 No documentation for this requirement

 Punctuation 10: No necessary action plan.

 Punctuation 8: Necessary present action plan for the item.
 Punctuation 6 or 4 or 0: For this case the supplier must present an action plan for each
item.

After finish the audit, will be send for supplier one report with the final evaluation.

SYSTEM OF EVALUATION FOR PROCESS AUDIT

Level Percentage Description

A ≥90% Evaluate annualy according (Notes 1 & 2)

Evaluate annualy according (Notes 1 & 2)

- Necessary prepare action plan according agreement of SQE.
B 80 a 89,99% After implemented actions (Maximum 4 months), supplier must do
self-assessment and send for SQE to schedule new process audit
if necessary.
- Necessary prepare action plan according agreement of SQE.
After implemented actions (Maximum 4 months), supplier must do
self-assessment and send for SQE to schedule new process audit
if necessary.
- During the time that the supplier been at this level they can not
C <80% develop new projects. Except if we does not have other supplier.
- If they still supply during this time we will do additional inspection
at every batch received.
- If the supplier doesn’t reach level B in 6 months, they must be
descontinued

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Note 1: Indirect supplier that not affect the customer requirement do not need do audit
and keep the level A with 95%. For suppliers abroad, the evaluation will be do through self-
process audit.
Note 2: For new suppliers that have issues with process audit must be schedule new
process audit and this supplier keep 80% until the new audit.

8.1 Reasons to reclassification – decrease level:

Reasons to decrease from level A to level B, independent of the percentage ≥90%

 Lack of minimum certification ISO9001
 At least one question (*) evaluate with less than 4 points
 At least one question evaluate with “0” points

Reasons to decrease for level C, independent of the percentage ≥80%

 At least one question (*) evaluate with “0” points.
 Lack of execution self-audit once a year

9. QUALITY REQUIREMENTS

9.1 Packaging

Is responsibility of the supplier development the packaging together the YAPP SQE,
this packaging need assure the integrity of product, handling and stocking, unless that the
product require specific packaging. To get the approval of packaging the supplier need fill
the YAPP form and submit for the SQE.

9.2 Traceability and Identification

Supplier system to control the quality of products must provide a perfect traceability of
the materials or products since the incoming to the expedition. Label must contain minimum
information below or according ODETTE Standard.
 Customer Part Number
 Description of Product
 Quantity
 Batch Number or Date of Production

When required the supplier must provide a special label with the 2D code according
the YAPP Brazil requirement, for these cases will be informed by YAPP SQE during the
APQP development.

9.3 Quality Certificate

Is responsibility of the supplier send the Quality Certificate for each batch or according
requested in Incoming Control Plan.
If the supplier don´t send the Quality Certificate YAPP Brazil can refuse the delivery
and reduce the score of the supplier.

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Manual da Qualidade de Fornecedores Rev. Date August, 25th 2020

9.4 Layout Inspection

YAPP Brazil request for all suppliers a layout inspection with minimum frequency 12
months since the approval of PPAP and the results of this inspection should by shared
always that requested by SQE.
The layout inspection must contain all dimensional requirements, material and
performance tests according the drawing.

9.5 Special Characteristics

During the development of product, must be done capabilities studies for all special
characteristics listed on drawings or other document from YAPP Brazil.
The supplier must identify all documentation with the symbol for special characteristics
and provide training for all employees.
Note: Is acceptable that each supplier apply their own symbols to identify special
characteristics.

9.6 Special Process Suppliers

Supplier must to do special process audit with a minimum frequency annually for all
special process including their sub-suppliers, to do this special audit they must have
qualified auditors according the manuals for evaluation special process from AIAG:
 CQI-9 Heat Treat Assessment
 CQI-11 Plating System Assessment
 CQI-12 Coating System Assessment
 CQI-15 Welding System Assessment
 CQI-17 Soldering System Assessment
 CQI-23 Molding System Assessment

When the supplier not meet this requirement, could be acceptable a plan to
implement, but must have the approval of YAPP SQE.
Note: YAPP SQE can do audits basing with the requirements of special audit
process.

9.7 Measurement System Analysis (MSA)

Before send the production samples, the supplier must analyze their equipment’s and
measurement instruments/tools through the study based on requirement of MSA manual,
last version. Supplier must to has a plan to review the studies with a frequency pre-defined
according requirements of the manual.

9.8 Special Process Control (CEP)

Requirement for SPC control is according the manual from AIAG, last version.

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YAPP Brasil – Suppliers Quality Manual
Vers. No. 4.0
Manual da Qualidade de Fornecedores Rev. Date August, 25th 2020

9.9 Requirements for Calibration Laboratory

Calibration of measurement instruments must be done by laboratories accredited on

RBC (Brazilian Net of Calibration) or through the traceability standards from INMETRO and
the laboratory must meet the requirements of ISO IEC 17025 and Specific Requirements
of Customer.
When supplier do this kind of service internally, must to has a Quality Policy specific for
the laboratory and scope for this service.

9.10 Deviation Process for Suppliers

In case of the suppler don’t to has conditions to meet some requirement, they must
formalize a letter requesting a deviation, this letter must contain the reason of request and
a plan to meet the requirement. Must be addressed for the YAPP Brazil Quality Department
This request must have been send for the YAPP SQE with minimum 10 working days
before the implementation, to be evaluate by YAPP team according the internal regulations
for deviation.
If the request was approved by YAPP Brazil the supplier will be communicated by e-
mail, in case of products under deviation, supplier must identify all packaging with a label,
describing “PRODUCT UNDER DEVIATION”.

10. EVALUATION/ MONITORING OF DIRECT SUPPLIERS

This topic describes the methodology to measure performance of all suppliers for
products and materials, the objective is provide data to implement plans to improve the
quality of them. To monitoring suppliers we will apply a GIQS (Global Quality Index of
Supplying) monthly according the items below:
 QMS – Quality Management System
 QPR – Quality of Product Received
 QD – Quality of Delivery
 QA – Quality of Assistance
 AP – Process Audit

The main point of GES (Global Evaluation of Supplier) is to showing the attendance of
the goals and objectives we will send it foe each supplier monthly. Based on results for
each month the GQIS is calculated to get the current status regarding the quality of supplier.

Quality Status Status GQIS

Supplier Excelent Green 90 a 100

Supplier Need Action Plan Yelow 50 a 89

Supplier Unaceptable Need Action Plan Red 0 a 49

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10.1 Global Quality Index of Supplying – GQIS

GQIS is a general index of quality for supplier and is summary of the index below, to
get this index we use the formula below:

GQIS = (QPR x 5 + QD x 3 + QMS x 2 + AP x 2 ) - QA

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10.2 QPR – Quality of Products Received

QPR is index of quality for supplier that define the grade of quality for product or service,
related to PPM of the components supplying during the month.

Punctuation System for QPR

QPR PPM

100 0

95 1 to 200
70 201 to 800

50 801 to 1500
30 1501 to 2000

10 > 2000 or problems in our customer

0 Component with field action, independent of the PPM

10.3 PPM – Parts per Million

Monitoring monthly, based on the quantity of products supplying versus products with
problem that must back to the supplier.

𝑸𝒖𝒂𝒏𝒕𝒊𝒕𝒚 𝒐𝒇 𝑷𝒂𝒓𝒕𝒔 𝒘𝒊𝒕𝒉 𝑷𝒓𝒐𝒃𝒍𝒆𝒎

𝑷𝑷𝑴 = 𝒙 𝟏. 𝟎𝟎𝟎. 𝟎𝟎𝟎
𝑸𝒖𝒂𝒏𝒕𝒊𝒕𝒚 𝒐𝒇 𝑷𝒂𝒓𝒕𝒔 𝑺𝒖𝒑𝒑𝒍𝒚𝒊𝒏𝒈

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10.4 QD – Quality of Delivery

Quality delivery is used to define the grade of logistic quality from product, its related of
the quantity of problems to delivery on time during the month.
For each part number (or lot) delivered by supplier these aspects are measured:

Avaliation per Part Number Delivered (KPI-Logistic)

% of Score (100%) Requirements

Without delay, delivered quantity in disaccord of schedule, extra freight and

80
downtime for YAPP Brazil or Customer.

20 Packing Integrity (Without damaged or nonstandard).

 Any deviation of the requirements turns the score 0.

Avaliation per Part Number Delivered (KPI-Logistic)

KPI-Logistic = average of each score regarding the total deliveries from the supplier during the month

Punctuation System for QD

QD KPI-Logistic

100 = 100%

90 100% > KPI-Logistic ≥ 90%

75 90% > KPI-Logistic ≥ 75%

50 75% > KPI-Logistic ≥ 50% or 4 months consecutives with punctuation under 100%

25 50% > KPI-Logistic ≥ 25% or 5 months consecutives under 100%

0 25% > KPI-Logistic ≥ 0 or 6 months consecutives with punctuation under 100%

Note: Suppliers that showing QD under 100 points 6 months consecutives should be
evaluated to be excluded from the list of approved/qualified suppliers.

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10.5 QMS – Quality Management System

QMS is index for quality management system of supplier and define the grade of
certification related the current standards. (ISO9001, ISOTS/IATF 16949 or others).

Punctuation System for QMS

QMS Status of Certification

100 Certified at ISO TS 16949 / IATF16949 and BIQS

90 Certified at ISO TS 16949 / IATF16949

75 Certified at ISO 9001 + Process Evaluation >75

50 Just Process Evaluation >75

20 Without Certified

Note 1: Suppliers without certification, with a plan to implementation, will be QMS

changed just after the final certification.

10.6 Process Audit

Process audit (AP) is applied for all suppliers and must consider the information from
GIQS.

10.7 QA – Quality Assistance

QA is an index to measure the quality of assistance for YAPP Brazil suppliers,

monitoring monthly. Any occurrence listed on table below will depreciate the punctuation
of the supplier. Maximum punctuation is 100 and we will depreciate this punctuation
according the occurrences from each month.

Punctuation System for QA

QA Items
(-05) Points each item without certificate Quality Certificate

(-05) Points each delay on timing Assistance requested

(-20) Points each repply late Repply G8D on time

(-10) Points each repply late Action Plan

(-20) Points each documentation delay Documentation (PPAP)

(-05) Points each G8D open G8D Open

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10.8 Results

Performance of each supplier is a result of GQIS, Global Quality Index of Supplying,

will send for each supplier monthly.

10.9 Action Plan

To solve problems with supplier we apply the Action plan. According the GQIS below
we apply the action plan to improve the quality of our suppliers. If they not recovery during
6 months we will do plan to exclude this supplier from our list.

Global Quality Index System

Stable Monitoring (Quality / Supply Chain)

Negative Trend Action Plan

Miss
Action Plan
Performance

GQIS Yellow Recovery Next 3

4 months in Apply Action Plan
months
sequence

Action plan must be done by the supplier and submitted to YAPP Brazil SQE to approval.
First SQE should setup a meeting to explain this process, record all issues related of this
supplier, quality and logistic, after this meeting the supplier to has 10 working days to submit
action plan for SQE.
This action plan must have one action for each issue and the final date do not be so
long than 90 days. After implement action plan YAPP Brazil SQE will make a process audit to
certify that all action was implemented. The objective of this plan is recovery the supplier next
4 months, during this period YAPP SQE going to support the supplier to work together to
improve their quality.
If the supplier does not improve its GQIS in 6 month, it will be discontinued.

Note 1: For strategic suppliers, which cannot be discontinued, the action plan could be
revalidated periodically. Yapp could take other actions as necessary (i.e SQE visits, Third
Part Audits, etc), and costs passed to supplier.

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11. MONITORING INDIRECT SUPPLIER

Suppliers of indirect materials and third part companies will be monitoring according
the table below:

Type of
Monitoring Goal Target Frequency
Supplier

Quantity of Delivery
Transport Service Rate 91% Monthly
Schedule VS Realized

Quantity of equipment’s
Calibration Service Rate 91% Monthly
calibrate on time

Quantity of parts sorting

Service Rate 91% Monthly
on time
Sorting / Rework
Nºof products with
Quality of Sorting 0 Monthly
problem after the sorting

Quantity of products
Sequencing Service Rate 91% Monthly
sequencing on time

Quantity of packaging
Packaging Service Rate 91% Monthly
delivery on time

Note: Supplier out of the target must present the action plan to recovery for next
month.

12. MANAGEMENT OF NON CONFORMITY

12.1 Reports of Non Conformity G8D

When occur non conformity related of the products or services, will be open a G8D
report for the supplier. Other non conformity that was not related of the quality of product
will be informed through the G8D report.
After send the G8D report for the supplier, they will have 5 working days to reply the
follow items:
a) Contained Actions – Actions that was done to solve the non conformity or
sorting/ rework actions on products supply to YAPP Brazil or our customer. These actions
must be done immediately after the communication of the problem. When requested by
SQE the sorting of the YAPP Brazil stock must be done maximum after 24 hours of supplier
receive communication.

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b) Root Cause – reason that caused non conformity. Supplier must explain a
consistent root cause, also must inform if this root cause could affected other products.
Supplier must present this evaluation maximum 5 working days after receive the G8D
report.
c) Corrective Actions – actions that the supplier implement to avoid that a non
conformity happen in products or services provide by suppliers.
d) Effectiveness Verification of Actions – effectiveness verification will be through
the inspection of the next batches supply (Minimum 10) or through 1 month of supplying
without re-ocurrences.

Action plan should be monitoring by the supplier and can be followed by YAPP Brazil
SQE inside of the supplier facilities or through the evidences send by the supplier:
 Implementation of actions on time (Request evidences of implementation)
 Effectiveness verification of actions. (Request evidences of effectiveness)

12.2 Controlled Shipping

Controlled shipping is an additional control that we can apply when the controls of our
supplier are not enough to protected YAPP to not receive non conforming products.

12.2.1 Implementation, Monitoring and Closure/Exit

Implementation of Controlled Shipping is responsibility of YAPP Brazil and could

occur when one or more items below happened:

Controlled Shipping Level 1 – CS1

 Occurrence or recurrence of G8D.

 Field Action /Warranty
 High PPM index or GQIS Red

Controlled Shipping Level 2 – CS2

 Recurrence during CS1.

12.2.2 Procedure to implement (CS1) e (CS2)

Supplier will be notified by the quality team from YAPP Brazil through a letter of
notification regarding the Controlled Shipping Level 1 or Level2. YAPP Brazil SQE going
to schedule a meeting to define the following items:

 Review of non-conformities that resulted on Controlled shipping.

 Documentation that will be use.
 Frequency that the supplier will send information about the results of Controlled
Shipping.
 Requirements to accept/ or reject parts.
 Requirements to close Controlled Shipping.

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12.2.3 Supplier Responsibility:

 Assure that understand everything regarding the non-conformity.

 Implement corrective actions, to assure that not happen recurrence of the non-
conformity. Ex. Poka Yoke, work instructions, etc.
 Develop an action plan for solve all problems related of the non-conformity.
 Define a área to do the sorting.
 Trace all places in their stock of non-conforming material.
 Identify all parts or packaging’s that will be inspected according the agreement
with YAPP Brazil SQE.
 Results of inspection must be published for all people to has access.
 Updated all documentation according the G8D report. (Ex. Control Plan,
PFMEA, Flow Chart, Work Instructions and etc.)

12.2.4 Closure of Controlled Shipping Level 1 and Level 2

Responsibilities of YAPP Brazil.

 Verify if the supplier achieve all requirements to close the CS1/CS2. Supplier
will be out of the Controlled Shipping just if YAPP Brazil not to has recurrence of the
problem.
 Notify all people from YAPP Brazil and Supplier involved, that the supplier
achieve all the requirements to close the CS1/CS2.

12.3 Costs of Non Quality

YAPP Brazil define that all costs caused by suppliers, as, differences between the
contract and invoice, logistics incidents and quality problems on product or service will be
passed on fully to supplier through of debit.
Supply Chain & Quality Control Department will be in charge of send the “Debit Advise”
and charge the supplier that will have 3 working days to contest the debit. After this time
Finance Department will issue the “Invoice Debit” for supplier according total cost or
according agreement between the supplier and Commercial Department.
Costs to passed on for suppliers could contain:
 Administration Costs;
 Downtimes;
 Rework/Sorting – Done by third part companies or employees of YAPP Brazil;
 Special Freights;
 Scraps – All components missed on production;
 Recalls (Warranty issues or any service requested by costumer)
Note: All costs charge by our customer will be passed on fully for the supplier.

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13. EVALUATION SUPPLIERS FACILITY

Always that necessary evaluation the facilities of supplier by YAPP Customer, due to
evaluation of process/ product/ service under suspect of non-conforming or to assure
effectiveness, the supplier must allowed if previous schedule, always must to has an YAPP
SQE together the representant of customer during the evaluation.
All information regarding process / product / services must be available always that
YAPP Brazil request to verify if the requirement is following by our suppliers.

13.1 Tooling Evaluation

We establish that all tooling including of our properties must keep in good conditions
and must be storage in adequate area, each supplier must to have a control of preventive
maintenance to assure the life cycle of each tool.
Always that YAPP Brazil request, the supplier must send an evaluation of the tool to be
analyzed.
Will be responsibilities of each supplier damages during the handling, setup or
production that happen on tools, suppliers must inform trough a formal report and be
responsible for the corrective actions.
In case of downtime in our customer caused by tooling problem all costs must charge
from our supplier.
Supplier must identify tools according the requirements informed during PPAP.
Evaluation of tooling must contain minimum:

 Quantity of parts produced.

 Time of usage of tooling.
 Date and report of last preventive and corrective maintenance done.
 Picture of current status of tool.
 Life-cycle provision of tool. (Time or Quantity of Parts)

14. QUALITY DOCUMENTS

14.1 Procedures and responsibilities regarding the Quality

Supplier must provide and keep procedures to cover all phases of program to control
the quality of products and services. Procedures must be posted and be available for all
employees.

14.2 Keeping Records

Supplier must keep the records of all inspections, tests, certification and special
characteristics according request of this manual or requested by YAPP Brazil SQE.
Note: Retention of records could be requested during the development of product,
through of PPAP documentation.

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14.3 Control of Drawings and Specifications

Quality system of supplier must ensure that the drawings, specifications, standard or
other information´s are available and updated as the last version for manufacturing, records
of tests and inspections must be available always that necessary. System must ensure that
all old versions of documents will be removed to avoid mistakes.
Supplier must establish methods and procedures written to manage changes of
process or product, this procedure must detail all phases of the system to control changes.

14.4 Identification and Control of Material

Supplier must establish a management system to control all material. Status of

inspection and test of all material must be identified by this system. Documentation must
include a description for all methods of identification for products under contention.

14.5 Check start of production

Check list of production must be done and recorded before start production, any
downtime, any process change, any setup or raw material change, to ensure that the part
meet the specification.
Supplier must identify and segregate all material produced during preparation of
machine to avoid mixture or contamination of approved material.

15. CONFIDENCIALITY

Through this manual we establish an agreement among YAPP Brazil and the supplier
to keep the confidentiality of the data’s, drawings or any information about the process
development.

16. SUPPLIER AGREEMENT (Version 4.0 – August, 25th/2020)

Name Dept. and Position Signature

Note 1: Must be signed at least by: Diretor/Plant/General Manager, Quality Manager

and Supply Manager (Logistics)
Note 2: If there is no response within 10 days of sending this manual, it will be
considered accepted without restrictions.

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