Magna Exteriors & Interiors - 076e7

Organization Guideline
Corp-6470-02 Supplier Handbook
Date: 26/08/2009 Page 1 of 38

Ver. 04
Handbook
for
Suppliers
Copyright by Magna Exteriors & Interiors

Date: 26/08/2009 Page 2 of 38

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Table of Contents
1 Introduction....................................................................................4
2 This handbook's structure ............................................................5
3 Scope of applicability.....................................................................6
4 Revision procedure ........................................................................6
5 Supplier management ...................................................................6
5.1 General contract rules ............................................................................................................ 6
5.2 Health, safety, environment ................................................................................................. 10
5.3 Emergency concepts ............................................................................................................ 11
5.4 Customer contact partners.................................................................................................... 11
5.5 Supplier selection................................................................................................................. 11
5.6 Supplier assessment and evaluation..................................................................................... 12
5.7 Supplier audit / process acceptance for the development phase and in series ..................... 14
5.8 Supplier development .......................................................................................................... 14
5.9 Escalation scenarios ............................................................................................................. 14
5.10 Magna QPF supplier portal ( Quality Platform) .................................................................. 16
5.11 Continuous improvement..................................................................................................... 17
6 Quality management ...................................................................17
6.1 Quality management requirements ...................................................................................... 17
6.2 Supplier responsibility ......................................................................................................... 17
6.3 Quality planning................................................................................................................... 17
6.4 Development verification and validation............................................................................. 19
6.5 Production process and product release ............................................................................... 19
6.6 Initial sampling .................................................................................................................... 20
6.7 Reference and limit samples ................................................................................................ 22
6.8 Test resources monitoring.................................................................................................... 22
6.9 Complaint processing........................................................................................................... 23
6.10 Control and guidance of sub-suppliers................................................................................. 25
6.11 Control of documents and records ....................................................................................... 25
6.12 Documentation-mandatory parts and characteristics ........................................................... 26
7 Product development process.....................................................26
7.1 Assessment of product requirements ................................................................................... 26
7.2 Assessment of production feasibility ................................................................................... 26
7.3 Coordination of product specifications ................................................................................ 27
7.4 Project management............................................................................................................. 27
7.5 Product development ........................................................................................................... 28
7.6 Production process development ......................................................................................... 29
7.7 Preproduction trials.............................................................................................................. 29
8 Logistics process ..........................................................................30
8.1 Packaging............................................................................................................................. 30
8.2 Call-up planning................................................................................................................... 31
8.3 Organization......................................................................................................................... 31
8.4 Delivery ............................................................................................................................... 31

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8.5 Supply control...................................................................................................................... 32

8.6 Delivery papers .................................................................................................................... 32
8.7 Transport processing............................................................................................................ 32
8.8 Transparency of delivery processes ..................................................................................... 33
8.9 Passive supply...................................................................................................................... 33
8.10 Invoicing .............................................................................................................................. 33
9 Manufacturing process ...............................................................33
9.1 MAGNA E. & I. in-house tooling and operating resources.............................................. 33
9.2 Product deviations and protests ........................................................................................... 34
9.3 Marking and traceability ...................................................................................................... 35
9.4 Tool management................................................................................................................. 35
9.5 Part resumes ......................................................................................................................... 35
10 Change management ................................................................36
10.1 Tool changes ........................................................................................................................ 36
10.2 Process changes ................................................................................................................... 36
10.3 Design changes .................................................................................................................... 36
11 Other agreements .....................................................................37
11.1 The term of this agreement .................................................................................................. 37
12 Signatures ...............................Fehler! Textmarke nicht definiert.
13 Attachment ................................................................................38
13.1 Submission stages ................................................................................................................ 38

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1 Introduction
Within MAGNA E. & I. it is our task to satisfy our customers, employees and shareholders and,
through product and process innovation, to offer a better product at a better price. To accomplish this
we do not rely solely on the expertise, capabilities and enthusiasm of our own employees but also on
the support of our suppliers.
Quality, price and service are inseparably interconnected functions of the overall supply chain. Every
organization incorporated into this supply chain must be completely dedicated to the fulfillment of its
own demanding goals in order to ensure the success of our performance.
This handbook should help you to consistently meet or exceed our expectations such that a level of
performance is achieved that will ensure commercial success and growth on into the future.
Our business systems and processes are guided by ISO TS 16949, ISO 14001 and OHSAS 18001. The
principles and requirements embedded in these standards are to be maintained at all times, and not just
by us but by every one of our suppliers too. The intensely competitive environment in which we
operate has no place for performance which does not come up to these standards. Processes which
deviate from these standards must be brought into compliance.
The futures of our companies are therefore closely linked to one another. MAGNA E. & I. has devoted
itself completely to this form of success and wants you to be able to participate in it too. Acceptance of
the principles and practices described in this handbook will make it much easier for you fulfill your
own objectives, thus making a contribution toward achieving the goals that we have all set for
ourselves.

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2 This handbook's structure

This supplier handbook serves as a guide for the business relationship between you, as supplier, and
companies in the MAGNA E. & I. group.
This handbook is divided into six main processes. The requirements set for MAGNA E. & I. as well as
those established for you as a supplier are described in detail in these main processes along with the
corresponding procedures to be maintained.
- General contract rules
- Emergency concepts
- Customer contact
partners - Assessment of
- Supplier selection & product requirements - Tool and
evaluation - Evaluation of operating resources
- Supplier audit & production feasibility - Material regulations
development - Coordination of and deviations
- Production acceptance product specifications
- Escalation scenarios project management - Marking and
- Health, safety, - Product development traceability
environment - Production process
environment, KVP development - Tool management
- QPF (quality platform) - Preproduction trials - Part resumes
Supplier Quality Product Logistics Manufacturing Change

management management development process process management
process
- QM requirements - Packaging - Tool changes

- Responsibilities - Call-up planning
- Process changes
- Quality planning - Organization
- Verification & validation - Delivery - Design changes
- PPF / PPAP - Supply control
- EMP - Delivery papers
- Reference & limit samples
- PM - Transport processing
- Complaint processing - Transparency of
delivery processes
- Control of
sub-suppliers - Passive supply
- Control of documents
& records - Invoicing
- D parts & D characteristics

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3 Scope of applicability
The Supplier Handbook is effective for all companies of the magna Exteriors & Interiors Systems
Group (in the following: Magna E.& I.).
Pursuant to agreement, this supplier handbook is a constituent part of the supplier contract, even then
when it is not explicitly referenced in purchase orders. It is effective as an adjunct to joint agreements,
e.g. technical terms of delivery.
Responsibility for the procurement process is the duty of MAGNA E. & I. purchasing departments.
Supplier questions about product specifications, quality and environmental aspects are to be handled
by the specialty departments (see Section 5.4) of respective divisions.
There is potential allowed for individual special agreements on some points. This will be indicated in
individual sections. Special agreements must be made in writing and they replace or supplement the
standard prescribed in this supplier handbook.
4 Revision procedure
Changes or supplements to this agreement must be made in writing to become effective. In order to
preclude excessive printing, this supplier handbook will be available as a PDF in the eRFX Data Base
(https//erfx.magna.com).
The supplier handbook is subject to the revision procedure. In the event there are changes, the supplier
shall receive a new revision of the supplier handbook whose header will exhibit the incremented
version number as well as the date of last change. The last change you will find always in the eRFX.
The changed text will marked in red colour.
This handbook is confidential material and may not be reproduced for internal use or disseminated to
third parties without the consent of MAGNA E. & I.
5 Supplier management
5.1 General contract rules
5.1.1 General
The legal relationships between the supplier and MAGNA Exteriors & Interiors - hereinafter named
MAGNA E. & I. - with respect to the procurement of production materials, parts, tools, machines and
services are subject to the following agreements and their constituent members.
The constituent members of MAGNA E. & I. contract rules, in their respective valid versions, are:
Intier / Decoma purchasing terms,
VDA Guideline Volume 1, Evidential Records, Guide for Documenting and Archiving
Quality Requirements,
VDA Guideline Volume 2, Quality Assurance for Deliveries/Supplier Selection/Quality
Assurance Agreement/Production Process and Product Release/Series Quality Performance,

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VDA Guideline Volume 3, Part 1 and 2, Reliability Assurance for Automobile Manufacturers
and Suppliers, Reliability Management/Reliability Methods and Aids,
VDA Guideline Volume 4, Parts 1, 2 and 3, Assurance of Quality Prior to Series
Implementation, Partnership Cooperation for Automobile Manufacturers and Suppliers/FMEA
System/ Project Planning,
DIN EN ISO 9001,
ISO/TS 16949, or alternatively, VDA Guideline, Volume 6, Part 1,
DIN EN ISO 14001, or alternatively, EU Eco Audit Directive No. 1836/93,
OHSAS 18001,
VDA Guideline, Volume 6, Part 5, Product Audit,
VDA Guideline, Volume 6, Part 3, Process Audit,
VDA Guideline, Decorative Surfaces for Attachments and Functional Components for
Automobile Exteriors and Interiors,
(the above listed VDA Guidelines as well as ISO/TS are all available from VDA QMC, Karl-
Hermann-Flach-Str. 2, 61440 Oberursel, Germany; www.qmc.de, email: info@vda-qmc.de),
this supplier handbook, which describes the general contract rules, quality management
agreement, logistics agreement and the general packaging guideline,
agreement on operational targets with the supplier,
technical terms of delivery,
EG 91/155: Safety Datasheet,
test instructions for monitoring test materials: VDI-VDE-DGQ 2618 and 2619 or AIAG MSA,
alternative to VDA regulations originating from QS9000, when expressly demanded by
relevant MAGNA E. & I. customer: PPAP, APQP, SPC, MSA, FMEA,
Customer requirements (see the customer portals, has to obtain by the supplier) if not agreed
otherwise
VDA Recommendation 4902 and its derivative recommendations,
confidentiality agreement,
warranty agreement,
tooling contract,
emergency concept / emergency plan / emergency management,
supplier self-disclosure or supplier questionnaire,
the listed norms, standards and customer guidelines appropriate to the delivery item,
initial sampling test documentation per VDA (PPF),
8D report per VDA,
plans for corrective action from the given MAGNA E. & I. division,
contract documentation for borrowed tooling,
deviation request,
change request,
EDI Guideline,
logistics datasheet (packaging and delivery regulation, supplier and Magna E. & I. division
contact partners)
packaging handbook (among other information, contains the logistics datasheet, packaging
rules (container management))
cost breakdown (CBD) form,
Incoterms (www.iccwbo.org/.../ or www.icc-deutschland.de//) in the respective effective
version: publication of the International Chamber of Commerce, ICC "Incoterms 2000", No.
560 ED, ISBN 3-929621-05-3.

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Changes and supplements must be made in writing to become effective. Deviating business terms of
the supplier will not be recognized by MAGNA E. & I. unless they have been agreed in writing. Such
deviations are also not recognized even though they may not have been expressly rejected in
individual cases.
Please also observe the general terms of business.
5.1.2 Place of performance and fulfillment

The place of performance and fulfillment is the receiving plant. Place of payment is the given
company division.
5.1.3 Legal venue

The place of fulfillment and legal venue are described in the Intier / Decoma general terms of
purchase. Application of the United Nations Convention on Contracts for the International Sale of
Goods (CISG), dated April 11, 1980, and the Conflict of Laws a.k.a. International Private Law (IPL) is
excluded.
5.1.4 Use of subcontractors / sub-suppliers

The use of sub-contractors requires approval. Where plans call for subcontracting of an entire contract
or any part of it, this must be approved in writing by MAGNA E. & I. MAGNA E. & I. reserves the
right to evaluate the affected subcontractor by audit and to place the order with a third party should the
audit reveal unsatisfactory results.
5.1.5 Request for quote, quote, pricing and minimum order levels
Quotes are to be submitted in response to MAGNA E. & I. requests for quotes and they must
accommodate the following prerequisites in particular:
Requests for quotes and quotes are to be processed through the eRFx platform (further
information about this can be obtained from the responsible purchasing department).
The quote must correspond exactly to the scope of performance requested and be based on the
requested quantities and requested delivery period.
The supplier must ensure that he has all necessary information available and that he possesses
the general capabilities, particularly with respect to engineering, logistics and capacity, prior
to submitting the quote.
The MAGNA E. & I. "Cost Breakdown" (CBD) form must be filled out for the quote.
The price specified in the quote must be made according to the rules set forth by DDP
(Delivered Duty Paid) [named delivery point] Incoterms (International commercial terms) and
FCA (Free Carrier).
The quote shall include all manufacturing costs as well as the cost of delivery of the requested
product commensurate with MAGNA E. & I. delivery and quality requirements as well as the
requirements of this guide.
Quotes which include costs for tooling for parts must contain a breakdown of the costs for
tooling and operational resources.
Minimum order quantities and/or minimum delivery quantities, minimum lead times and
minimum shipping quantities which are in excess of the given standard packaging unit will not
be accepted nor will any surcharges be accepted in this context.
Only complete and timely submitted quotes can be considered. All quotes must be presented
complete and in written form (letter, facsimile, email).

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5.1.6 Acceptance and defect claims

Acceptance is determined on the basis of agreements concluded in contracts and order call-ups. The
supplier waives the right to object to overdue complaints. For a difference in quantity (over/under) or a
premature delivery, MAGNA E. & I. reserves the right to refuse delivery at the cost of the supplier or
to appropriately adjust the invoice amount. Purchase price payments made prior to the discovery of
defects are not to be construed as defect-free acceptance of delivered parts, materials or ingredients
and such payments do not release the supplier from the terms of warranty.
5.1.7 Quality and documentation

When called for in the technical documentation or by separate agreement, special records are to be
maintained by the supplier for specially-marked motor vehicle parts (D parts). These records are to
register the testing of these parts with respect to mandatory characteristics to be documented. The
testing records are to include when, in what manner, and by whom the testing took place and what the
results were for the required quality tests. Test documentation is to be retained according to customer
specification but for no less than 15 years (from EOP [end of production]. On request, these
documents must be shown to MAGNA E. & I. MAGNA E. & I. is entitled to demand copies of these
records. Any upstream supplier is to obligate himself to the supplier to the same extent within the
limits of legal options. We herewith reference the VDA Guideline: Guide for Documenting and
Archiving Quality Requirements" (actual release) as a guide for this procedure.
If the type and scope of further testing, test resources and methods are not specifically agreed between
MAGNA E. & I. and the supplier, MAGNA E. & I. will, on request and within the framework of its
expertise, experience and potential, attempt to determine the given necessary level of test engineering.
Beyond this, if desired, MAGNA E. & I. will inform the supplier about relevant safety regulations.
To the extent that governmental agencies have a responsibility to perform follow-up testing for vehicle
safety, emissions testing or similar and are entitled to demand review of MAGNA E. & I. production
processes, at the request of MAGNA E. & I., the supplier declares his willingness to permit these
agencies the same rights in his facilities and to provide these agencies with every reasonable support.
The supplier further warrants to operate within the limits of the laws, ordinances and guidelines of the
EU, the Federal Republic of Germany, the Republic of Austria, and Spain in their respective effective
versions. The following list is intended as an orientation aid and no claim is made to its
comprehensiveness:
European Union:
Old vehicle regulation 2000/53/EU
Regulation 67/548/EEC (free of heavy metals (Cd, Cr(VI), Hg and Pb))
Regulation 2002/525/EEC (special application case for Cd, Cr(VI), Hg and Pb)
Regulation R76/769/EEC and 2003/11/EU (brominated flame retardant)
Water constraints guideline 2000/60/EU
Prioritized materials list No. 2455/2001 for establishing and changing Guideline 200/60/EU
Regulation 2002/95/EU: Reduction of hazardous materials in electrical and electronic devices
Regulation 2002/96/EU: Old electric and electronic devices
Regulation 2003/198/EU: to revise 2002/96/EU
Federal Republic of Germany:

Old vehicle V
CFC-Halon Ban V: Directive to ban certain halogen-carbon-hydrogen substances which
impair the ozone layer

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Chem ban V: Directive about bans and restrictions on the distribution of hazardous materials,
as well as the preparation and/or production of products subject to the chemicals law
Chem G
Hazardous materials V: Hazardous materials directive
IMDS International materials data system
VDA List of declaration-mandatory materials, in its given current revision
Reach: Edict (EG) Nr. 1907/2006, Internet: Reach Helpdesk national inquiry office for
producer
Additional legal regulations applicable to delivery countries are also to be observed (e.g. England,
Poland, South Africa, etc).
5.1.8 International materials data system

The automobile industry has created the international materials data system (IMDS). This database is
used to archive and manage all materials used in vehicles. This makes it possible for automobile
manufacturers and their suppliers to more readily comply with the requirements imposed on them by
national and international laws, directives, norms and standards. All material information in IMDS is
based on a "list of pure substances". Substances named in the "VDA list of declaration-mandatory
materials" are also present in the IMDS.
At this point MAGNA E. & I. explicitly serves notice that given maximum permissible proportion
limits specified for declaration-mandatory substances are not to be exceeded and that every effort
should be made to avoid these substances. The IMDS must be therefore be given attention already in
the design phase. The supplier is obligated to make complete and true registration entries about his
products in IMDS prior to initial sampling. If this has not been done the sampling process will remain
in the status "conditional release". The follow-up samples and their processing at MAGNA E. & I. as
well as all other costs arising from incorrect registration entries will be borne by the supplier (e.g.
entry of the valid recommendations and maintenance, costs of the OEM, etc.)
5.2 Health, safety, environment

MAGNA E. & I. is fully aware that its business activities can have an influence on the environment
and the safety of others. Because of this the company has obligated itself to compliance with its own
in-house regulations for health, safety and environment. In return, MAGNA E. & I. expects its
suppliers to establish similar in-house regulations of their own which fulfill the following
requirements:
the appointment of a contact person for matters of safety and environment,

the processes necessary to manufacture parts and the materials used must be in keeping with
the current state of science and engineering and they must be compliant with the legal
stipulations and directives of the given country in which the supplier's company/plant is
located,
the supplier must observe precautions to minimize potential risks to its employees, supplier
facilities must be kept in an orderly and clean condition,
evaluate and report all potential health, safety and environmental risks that could arise from
the delivered products or services,
immediately report all health, safety and environmental risks that could affect the supplier's
ability to deliver,
report all improvements with respect to the recycling aspects of products (new materials) to
MAGNA E. & I.,

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the supplier is to provide information about disposal options for the products it delivers,
the supplier is to respond to all enquiries made by MAGNA E. & I. without delay and comply
with all relevant regulations / limitations with respect to the use of hazardous materials,
make investigation results demanded by legal authorities available to MAGNA E. & I.,
the supplier shall obligate itself to the reduction of environmentally damaging effects
associated with the products and services delivered to MAGNA E. & I.,
the supplier shall participate as appropriate in joint initiatives to foster environmental
protection and safety,
respond immediately to any questionnaire or inquiry presented by MAGNA E. & I. with
respect to documenting health protection or safety,
a safety datasheet is to accompany the initial delivery or modified delivery of hazardous
substances and consumables (oils, greases, adhesives, dyes, etc), it is to be written in the
language of the respective MAGNA E. & I. division with whom the supplier has concluded
the contract agreement (procurement / purchasing department), the delivery of substances and
parts which release hazardous substances or substances whose disposal have proven to be
particularly difficult are subject to mandatory written notification and gapless documentation.
MAGNA E. & I. has made its objective, in close cooperation with its suppliers, to avoid
environmental risks from the outset and to find common solutions that go beyond mere compliance
with established legal regulations. The supplier obligates itself to implement an environmental
management system compliant with ISO 14001 or other equivalent standard as well as a management
system for occupational safety (e.g. OHSAS 18001 or equivalent standard). If the supplier is not
certified to these norms / standards by an accredited organization, then the supplier must submit a plan
to the respective MAGNA E. & I. division which shows how and when the supplier is to attain the
certification criteria or provide evidence to show that the supplier has fulfilled the criteria.
5.3 Emergency concepts

The supplier is obliged to establish appropriate plans for emergency situations and to show proof of
their effectiveness by way of an audit. Emergencies include fire, flooding, EDP crashes, outages of
electric power, gas, water, heating, systems, machines, tool defects, material supply-chain problems,
personnel problems and strikes. Furthermore, to the extent that insurance is available for such
occurrences, the supplier is to obtain insurance coverage for these eventualities. A risk analysis must
be carried out and proof of same provided to the responsible plant.
5.4 Customer contact partners

The contact partners in participating departments with whom the supplier concludes the delivery
contract will be named by MAGNA E. & I. divisions.
5.5 Supplier selection

MAGNA E. & I. suppliers are evaluated and selected on the basis of their ability to fulfill specific
requirements. The supplier will only be permitted to submit a quote when the supplier's self
assessment is complete, the supplier is registerd in the eRFX and, if already designated as a MAGNA
E. & I. supplier, is given a release by MAGNA E. & I. along with a MAGNA E. & I. classification as
A or B supplier.
At the discretion of MAGNA E. & I., classification C suppliers will be treated as new suppliers or
excluded from the quoting process. Following preliminary selection by MAGNA E. & I., new
suppliers will be reviewed for suitability in an audit procedure after they have responded with their
supplier self-disclosures.

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OEM-specified suppliers (so-called "customer nominated suppliers" or COP Supliers) will be handled
as our own suppliers after nomination by the OEM.
5.5.1 Audit procedure

The supplier is responsible for providing evidence of an established, certified, process-oriented QM
system that meets the minimum requirements of DIN EN ISO 9001. In the course of supplier
selection, MAGNA E. & I. reserves the right to carry out a system / process audit on the supplier as
well as to conduct clarifying on-site visits with the supplier in which self-disclosure assertions can be
verified. MAGNA E. & I. may choose to waive a system audit if the following prerequisites are
fulfilled:
where proof is shown of a valid 3rd-party audit compliant with ISO TS 16949 by an accredited
certification office or, in the interim, alternatively an audit compliant with VDA 6.1 (whereby
a schedule must be presented as to when and how an audit compliant with ISO TS 16949 is to
be carried out),
where proof is shown of a valid audit compliant with DIN EN ISO 9001, where proof is
shown that necessary customer requirements (i.e. MAGNA E. & I. and the OEM) can be
fulfilled (must be proven by a MAGNA E. & I. assessment / process audit),
where proof is shown of a 2nd-party audit (conducted by an OEM).
In all three of the above situations it will be necessary to validate ongoing implementation of the
prescribed measures and the active pursuit of their implementation plans. Acceptable audits may not
be older than 12 months (+1 month tolerance). In any case, the ultimate goal is to strive for an audit
compliant with ISO TS 16949 (latest revision). If this is not the case at the time an order is placed then
the supplier is to take it upon itself to work up a plan for such an audit and provide the plan without
the solicitation of MAGNA E. & I.
When quality-classified as a the B-supplier, a continuous implementation of specified measures and
active tracking of the implementation plan must be validated and confirmed on-site by MAGNA E. &
I.
MAGNA E. & I. may require the supplier to present the results of 3rd-party audits, 2nd-party audits
and/or MAGNA E. & I. audits for current conditions or when changes have taken place. If
certification is lost or expires, MAGNA E. & I. is to be informed in a timely manner without delay.
The execution of a process audit (per VDA 6.3) will be scheduled in agreement with the supplier.
MAGNA E. & I. shall preserve the confidential interests of the supplier with respect to accessibility of
the supplier's documents non-related to the supplier's quality management system.
Under certain circumstances (customer requirements, the supplier's confidential interests) special
agreements and procedures can be concluded with respect to the auditing process.
5.6 Supplier assessment and evaluation

MAGNA E. & I. suppliers are to be assessed and evaluated in each phase of the business relationship
according to the defined MAGNA E. & I. standard. Individually independent goal agreements will be
established with the supplier for these assessment criteria. MAGNA E. & I. pursues a zero-defect
strategy, therefore these goal agreements are only to be viewed as a guide down the path to the zero-
defect destination. The supplier's classification, along with its breakdown according to preset MAGNA
E. & I. criteria, will be provided to the supplier at regular intervals. The structure, scope and criteria
for supplier assessment and evaluation are as follows:

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Supplier assessment:
o criteria for the supplier self-disclosure
o criteria for audit procedures
o management systems (quality, environment, occupational safety)
o commercial criteria
o project execution
o test results (e.g. EMPB, samples, process capability)
o production process and product acceptance
Supplier rating:
o ppm (basis for quality is the goal agreement: in general: 0 PPM)

o number of sorting tests due to supplier mal-performance (by MAGNA E. & I. and
MAGNA E. & I. customers, basis for quality is the goal agreement)
o 8D processing accuracy (basis for quality is the goal agreement)
o service performance (optimizations, delivery handling)
o delivery fidelity (quantity / schedule) (basis for quality is the goal agreement)
o number of special trips (including the costs incurred by the supplier)
o number of disturbance events (by MAGNA E. & I. and MAGNA E. & I. customers,
basis for quality is the goal agreement)
o QPF handling
Plant-internal rules may deviate from the above (e.g. at the request of the OEM).

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5.7 Supplier audit / process acceptance for the development phase and in
series
In the course of product development and on an "as-needed" basis, MAGNA E. & I. reserves the right
to perform
a) system audits patterned after ISO/TS 16949
b) product audits patterned after VDA 6.5, alternatively according to customer specifications
c) process audits and/or process acceptance patterned after VDA 6.3
d) logistic audits patterned after VDA 6.3
e) re-qualification audits, particularly for D parts, patterned after MAGNA E. & I. customer
requirements
in the plant facilities of the supplier.
The supplier will be given suitable notification prior to carrying out such an audit or other similar
procedures. These uniform rules take precedence over deviating agreements in individual cases.
5.8 Supplier development

Unless otherwise agreed with the customer, the requirement for the supplier's management system is
certification to ISO 9001 by an accredited certification organization. Further development toward
ISO/TS 16949 is to be pursued. Under special conditions, suppliers who have not yet gained
certification may be given approval or a release following the successful execution of a system audit at
the supplier's site. The proof of audit and release by MAGNA E. & I. customers will be taken into
consideration and appropriately evaluated.
When there are intolerable deviations from contractually secured conditions (e.g. technical delivery
conditions, supplier handbook, goal agreements, ...), the supplier shall consent to a MAGNA E. & I.-
prescribed escalation scenario (see Section 5.9) in order to bring the supplier into compliance with
contractually secured agreements.
5.9 Escalation scenarios

The scenarios describe the steps of joint procedure when performance is not compatible with
concluded agreements. When not otherwise agreed with the supplier, the following escalation
scenarios are applicable.

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5.9.1 Escalation for quality goal agreement deviations or negative trend PPM
development
In the "Quality discussions" escalation step a process audit may also be initiated by MAGNA E. & I.
(patterned after VDA Vol. 6.3) if deemed necessary.
Red Yellow Green
Escalation: Increasing PPM trend for 3 Magna E. & I. target value target
consecutive months with overrun value (max
simultaneous target value 100 PPM
overruns or permanent target during serial
value exceeds (min. 4 delievering)
months) or in case of
specific problems
Actions: Target No
reached
Target Escalation on work level
exceed
once a
time
Exceeding Worth Supplier Meeting
several + specific actions
times
Notice. The escalation is a responsibility of the supplied plant. The supplier escalation is also possible,
if plant target are at risk.
The Worth Supplier Meeting will be carried out at Sailauf and the management board of the supplier
will present the carried out action to the Vice President Purchasing of Magan E. & I.
5.9.2 Escalation for logistical goal agreement deviations or decreasing delivery fidelity
See 5.9.1
5.9.3 Escalation for ongoing repetitive defects and/or risk of a production standstill
st
1 step Supplier initiation of emergency plans for threatening production standstill at the expense of
the supplier. Increased overhead for MAGNA E. & I. is the expense of the supplier.
100% receiving inspection (order to the supplier) at the expense of the supplier for a maximum
of 6 weeks or 3 reviews.
2nd step 100% shipping inspection at the supplier's premises performed by MAGNA E. & I. personnel
or by a MAGNA E. & I. commissioned company for up to 2 weeks after resolution of the
problem (maximum of 3 months) at the expense of the supplier.
At the discretion of MAGNA E. & I., a parallel process audit may be ordered (VDA 6.3, VDA
Vol. 6.3).
At the discretion of MAGNA E. & I., a parallel order for the permanent or sporadic on-site
presence of MAGNA E. & I. personnel or a specialist from an independent company for

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process support with subsequent report.

3rd step MAGNA E. & I. shall review the business relationship.
Sequence of the 3 reviews:

1. Review: 10 working days after detection; initiation of the scenario for investigation of the
actual cause.
2. Review: 20 working days after detection; initiation of the scenario effectiveness check and
evaluation of the implemented measures.
3. Review: identical to the 2nd review. Schedule is to be established by MAGNA E. & I. The
supplier will be notified of the schedule in a timely manner.
5.9.4 Escalation for direct deliveries to MAGNA E. & I. customers and/or pass-
through parts
1st step Supplier initiation of emergency plans for threatening production standstill at the expense of
the supplier. Increased overhead for MAGNA E. & I. is the expense of the supplier.
100% receiving inspection or stock inspection at the customer's site (immediate order issued
by MAGNA E. & I.) at the expense of the supplier for a maximum of 6 weeks or 3 reviews.
100% stock and production inspection at the supplier's site to be carried out by the supplier
with an inspection report (8D report form)
2nd step 100% shipping inspection at the supplier's premises performed by MAGNA E. & I. personnel
or by a MAGNA E. & I. commissioned company for up to 2 weeks after resolution of the
problem (maximum of 3 months) at the expense of the supplier.
At the discretion of MAGNA E. & I., a parallel process audit may be ordered (VDA 6.3, VDA
Vol. 6.3) to achieve an agreement on measures to be taken.
At the discretion of MAGNA E. & I., a parallel order for the permanent or sporadic on-site
presence of MAGNA E. & I. personnel or a specialist from an independent company for
process support with ongoing inspections / reviews by MAGNA E. & I. and a concluding
report.
3rd step MAGNA E. & I. shall review the business relationship.
Sequence of the 3 reviews:

1. Review: 10 working days after detection; initiation of the scenario for investigation of the
actual cause.
2. Review: 20 working days after detection; initiation of the scenario effectiveness check and
evaluation of the implemented measures.
3. Review: identical to the 2nd review. Schedule is to be established by MAGNA E. & I. The
supplier will be notified of the schedule in a timely manner.
5.10 Magna QPF supplier portal ( Quality Platform)

This quality platform is an Internet-based, process-oriented software package for preventative quality
assurance in the project management of suppliers. It integrates correction-measure tracing (7-step
reporting) and complaint handling with flexible structures for adaptation to customer
requirements/systems (TS 16949, VDA, BMW, ...). Through the transparency of processes at the
supplier and at MAGNA E. & I., QPF ensures that project management is comprehensibly
documented from the contract award to series delivery. All supplier-required activities, documents,
proofs, etc. are described here.

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The supplier obligates itself to use QPF and to work on and to work off the project phases, milestones
and activities which are placed on the QPF. Currently the QPF can be accessed at "www.qpf.at". On
request, training to acquire skills in interacting with QPF will be conducted by personnel from the
plant which has granted the contract.
5.11 Continuous improvement

MAGNA E. & I. pursues a philosophy of continuous improvement and expects the same from its
suppliers. To this end, the following improvement programs can be substantial aids:
KAIZEN,
5S,
TPM,
Six Sigma.
With respect to MAGNA E. & I. products, the supplier is to carry out optimization workshops and
activities at reasonable intervals. These workshops and activities should be oriented toward the
improvement of product quality, productivity, machine utilization, floor-space utilization and logistics.
Evidentiary documentation for optimization activities (e.g. recorded minutes of meetings, process time
recording, presentation documentation, etc.) are to be retained by the supplier. Further initiatives for
product cost reduction (e.g. which incorporate sub-suppliers) are to be actively pursued by the
supplier.
6 Quality management
6.1 Quality management requirements

These quality management requirements serve to ensure the supplier's capability to manufacture and
deliver products and services at the scheduled delivery deadline, at the lowest possible overall cost
and in the requested quantities. Furthermore, they are designed to ensure supplier compliance with the
requirements of our customers and the requirements set forth by ISO/TS 16949:2002. If the supplier is
not certified to ISO/TS 16949:2002 or VDA 6.1 then the supplier must present a time plan for
fulfilling these norms in which the plans and procedures for accomplishing certification is evident.
This plan is to be submitted to the responsible MAGNA E. & I. division for evaluation and to be
signed by an authorized management official.
6.2 Supplier responsibility

The responsibility for the quality of supplier manufactured or delivered products, including the
performance of sub-suppliers, lies entirely with the supplier. This also includes all products delivered
in the product realization phase.
6.3 Quality planning

The activities necessary to achieve product and production quality are to be planned systematically
and they are constituent elements of the project plan (see also Section 5.10).

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6.3.1 Failure mode and effects analysis (FMEA)

The supplier is to create a risk estimate for precluding potential faults in products and processes. In
conjunction with the results of this risk estimate, the supplier shall produce one or more FMEAs for
the timely detection and avoidance of risks arising from new or changed products and processes.
6.3.1.1 System FMEA process

Subsequent to the risk estimate, a system FMEA for process is to be carried out. Appropriate
responsible MAGNA E. & I. staff members are entitled to review the risk estimate as well as the
system FMEA for process and to provide assistance as necessary. The system FMEA for process
should also take tooling into consideration.
6.3.1.2 System FMEA product

Subsequent to a risk estimate, suppliers who have been commissioned to develop products shall carry
out one or more system FMEAs for product (to be coordinated with MAGNA E. & I.).
The insights and improvements that evolve from product realization phases and in the course of series
production as a result of incurred faults and complaints, are to provide feedback to the FMEA such
that they can be used to derive preventative measures (see also VDA Vol. 4, Parts 1 and 2 as well as
QS9000 FMEA Handbook).
6.3.2 Production control plan (Control Plan)

The supplier is to create production control plans for all project phases of products to be delivered (see
also ISO/TS 16949:2002). The production control plan is to reflect the flow of production, from goods
received to goods shipped, and is to be updated for all product or process changes. The control plan is
to include all test steps in the production process, include all critical or special product process
characteristics and to take into consideration the results of the "system FMEA for product" and the
"system FMEA for process" (or, as the case may be, DFMEA and PFMEA). A reasonable and
effective response plan for known and potential product deviations and defects is to formulated
accordingly. In the course of quality planning, the production control plan for the given development
phase shall be submitted to the responsible MAGNA E. & I. staff member for review.

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6.4 Development verification and validation
6.4.1 Component assessment

Supplier component assessment is to be coordinated with the responsible contact partner for the
MAGNA E. & I. division; typically on the basis of drawing, data requirements and specifications.
When not otherwise agreed with the MAGNA E. & I. division, the component assessment is to be
carried out with CAD software. Specifications must correspond to the current state of the component
and its revision level and thus be maintained current by the supplier. The assessment of components is
to be oriented analogous to the installation situation and measurement results are to be documented
such that they can be traced to respective positions on the component (position sketches).
Specifications are to be coordinated with the responsible MAGNA E. & I. division contact partner and
must exhibit a revision legend.
6.4.2 Material and component tests

Depending on the agreement made with the responsible MAGNA E. & I. division contact partner, the
supplier shall carry out material or component tests to verify development results. The tests are to be
performed according to prescribed specifications provided either by the MAGNA E. & I. division
and/or the MAGNA E. & I. customer. Test results are to be documented by test reports produced by
the supplier. The content and structure of test reports are to be coordinated with the MAGNA E. & I.
contact partner. They must at least include:
the date of the test
test content
relevant specifications tested
material or component revision level or design level
the name of the person who performed the test
The name and address of the laboratory is to be provided for tests performed at an external
testing laboratory. Proof of accreditation may be required for an external testing laboratory,
this is to be coordinated with the contact partner at the MAGNA E. & I. division.
6.5 Production process and product release

Release for the production process and the product is done by the respective MAGNA E. & I. division
and is a constituent part of the supplier's project plan. At a prearranged time and place a project-
responsible representative of the MAGNA E. & I. division will carry out the release procedure for a
process series (production run under series conditions, e.g. over the course of a production shift or a
predetermined number of components). When required this will include preliminary process capability
investigations, the assessment of components or other proofs related to the process. The release
procedure for the production process and the product shall be patterned after VDA Vol. 2 in its given
current version, whereby fundamentally higher requirements are applicable as follows.
Such higher requirements shall be applied when they have been jointly agreed as established product
characteristics. In particular this includes all "special features" (see ISO / TS 16949), and those process
features established by the supplier which are necessary to fulfill product requirements. The
corresponding process capability proofs to be strived for are:
short-term machine capability Cmk 2.00
preliminary process capability Ppk 1.67
long-term process capability Cpk 1.67

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In special cases a short-term machine capability of Cmk 1.67 and a long-term process capability of
Cpk 1.33 can be accepted (VDA Vol. 2). Despite these provisions, the zero-defect strategy is
applicable. One hundred percent testing is generally demanded for "D characteristics".
The requirements for production process and product release do not fundamentally differentiate
between submission stages 1, 2 and 3 (see VDA Vol. 2), i.e. which documents, drawings and perhaps
samples, must be provided to, or reviewed by, MAGNA E. & I.:
EMPB (see VDA Vol. 2)
test results [e.g. dimensions, material characteristics, function, physical and chemical
characteristics, reliability, process capability data, etc.] (in individual cases the scope will be
agreed with the supplier)
samples (which samples as well as the number and delivery quantity per agreement)
documentation [customer drawings, CAD data, specifications, design changes, etc.] (in
individual cases the scope will be agreed with the supplier)
design and development releases
FMEA (for review)
process flow diagram (production and test steps)
production and test plan and plant structure plan (for review)
production control plan or control plan (for review)
test means list (product-specific)
test resources capability investigations, where necessary and meaningful (in individual cases
the scope will be agreed with the supplier)
proof of maintaining legal requirements to the extent agreed with MAGNA E. & I. (e.g.
environmental, safety, recycling)
The approval report must show (a actual and related to the part )IMDS Number
Within the framework of the process series, the MAGNA E. & I. division will carry out a process
audit (per VDA 6.3) or a process acceptance (R@R). In special cases deviating agreements can be
concluded with respect to process audits and process acceptance. If D parts are involved (i.e.
documentation-mandatory parts), an additional D part audit will be performed that is oriented on
respective MAGNA E. & I. customer requirements.
Fundamentally the supplier is responsible for conducting a self-audit (including a self-evaluation and
corrective measures plan) prior to the actual process audit and any necessary D part audit (per Vol.
6.5; possible D part audit). The results become a part of the MAGNA E. & I. process audit.
6.6 Initial sampling

The final release for a product and its production process is carried out in the context of initial
sampling. Commensurately, when there have been changes to products or processes, an initial sample
test report must be submitted to the quality department of the affected MAGNA E. & I. division prior
to the delivery of the first series-produced parts.
The number of samples necessary for release is to be coordinated with the responsible MAGNA E. &
I. staff member (project manager / quality engineer / quality planner). Initial samples are to be
produced with series tooling under normal series-production conditions.
When no other agreements take precedence, all relevant product characteristics are to be inspected
together with the responsible MAGNA E. & I. staff members. The initial samples provided are to be
accompanied by initial sample test reports (see VDA 6.2) with specific information about the parts and

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appropriate cross-references. The initial sampling release will be done in compliance with VDA
Volume 6.2 or the PPAP regulations per QS9000. The VDA/EMPB form is to be used; this form can
also be obtained from the MAGNA E. & I. contact partner.
The supplier is responsible for carrying out initial sampling, creation of the documentation and for the
correctness of all results. The supplier shall create the initial sampling report for the products to be
delivered.
The supplier must be capable of performing dimension testing with direct CAD connection because no
dimensional drawings may be produced for new projects.
If the supplier conducts initial sampling contrary to the agreed manner or the initial sampling
procedure is deemed to be incomplete or it has not completed on the agreed schedule, then increased
overhead may be incurred by the respective MAGNA E. & I. division. Such incurred expenses will be
passed on to the supplier. The respective MAGNA E. & I. division shall decide on the release or
rejection of the supplier's initial sampling and comment on any deficiencies or stipulations on the
cover sheet.
The overall assessment follows the guidelines of the VDA (except customer requirements)
The overall evaluation is generally done according to a 4-step evaluation key:

1 = Initial sampling OK, series release issued (Note 1).
2 = Initial sampling with stipulations, released for series delivery subject to stipulations, follow-up
sampling procedure required.
3 = Initial sampling failed, nevertheless could be useable with corrective measures, release for
series delivery withheld, follow-up sampling required on a new deadline.
4 = Initial sampling failed, the product does not meet the agreements and will be rejected for
series delivery. New sampling procedure required on a newly established deadline.
Upon customer request, a 3-step EMPB evaluation can also be performed. The series products are
released and initial sampling is finished after Note 1 has been issued by the respective MAGNA E. &
I. division.
The distribution of evaluated and completed initial sampling reports is done by the respective
MAGNA E. & I. division. The supplier is obliged to retain a portion of the initial samples under part-
specific conditions in an appropriate quantity and with cross-reference to the test report. The
appropriate storage periods and storage conditions are to be maintained for documentation-mandatory
parts (so-called "D parts").
The following points are also to be observed for initial sampling:

A material datasheet compliant with VDA Vol. 2 must accompany the initial sampling test
report.
The information provided on the supplier's material datasheet is to be documented in the
IMDS database (see Section 5.1.7). If this has not been done then respective processing of the
samples cannot take place and they will therefore be rejected.
Initial sample components and materials will be provided by the supplier at no charge. When
not otherwise agreed, 5 units or sets of components. Deviations from this are to be agreed with
the responsible contact partner.
Product deviations from specification are always to be documented. A corrective measures
plan is to be presented from which it is explicitly clear how deviations are to be remedied.

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This plan is to be coordinated with the given responsible MAGNA E. & I. division and it is to
be approved by this division.
The production process must correspond to series maturity at the time of initial sampling. If specific
product characteristics have been established for the delivered product, then a process capabilities
diagram is to be presented for every such characteristic along with the initial sampling test report. The
minimum requirement for this is a Cpk of 1.67. If this value has not been attained, then corrective
measure plans must be presented from which it is explicitly clear how the Cpk value can be improved
to at least meet the minimum requirement.
The respective MAGNA E. & I. division is to be notified about every change to the product, tooling or
the production process (this includes the relocation of production, new production equipment,
resumption of production following a discontinuation in excess of one year, parameter changes, etc).
Initial sampling must be carried out again in these cases. Generally this is done in a reduced initial
sampling procedure in cooperation with the responsible MAGNA E. & I. division contact partner.
6.7 Reference and limit samples

Reference samples must be provided at no charge for products which have been classified by the
MAGNA E. & I. division as "appearance-dependent". To the extent applicable, these reference
samples will be used to evaluate color, grain, gloss, metallic sheen, texture, appearance, fit and so
forth. Furthermore, rules must be established that ensure the maintenance and control of reference
samples.
For special features which can only be quantified on the basis of samples, the supplier is to provide
MAGNA E. & I. with limit samples for release. These samples are to be used to define acceptance
criteria which are representative of the supplier's process capabilities. The samples are to be taken
from a production run made under series production conditions. For release, at least two sample sets
are to be presented along with a written rationale for the samples. Once the release has been issued,
one set of samples is returned to the supplier with the release endorsement, the other set remains with
MAGNA E. & I. for reference purposes. If necessary, an expiration date will be specified for the
samples. If samples are still needed after the expiration date then new reference samples are to be
produced in the same manner as described above.
6.8 Test resources monitoring

The supplier must be equipped with test and measurement resources such that he is able to examine all
essential quality characteristics. A procedure for control and monitoring all relevant test resources
must be established. This encompasses:
the test and release of test resources,
the marking of test resources,
the calibration, monitoring, storage, timely repair and maintenance of test resources,
documentary proof of test resources capability.

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6.9 Complaint processing

Supplier complaints will be initiated by the quality management departments of MAGNA E. & I.
divisions. The supplier will receive an appropriate test report containing all pertinent data for the
specific complaint. This report will be conveyed (e.g. per email or fax) to the supplier's responsible
contact partner. The supplier's complaint response is to be done with the help of an 8D report (this
may have a proprietary form) within the prescribed time window.
Effective initial measures are to be taken and notification of same conveyed to MAGNA E. &
I. within 24 hours of the receipt of the test report.
Corrective measures or short-term solutions are to be effected and conveyed to MAGNA E. &
I. within 5 working days of the receipt of the test report.
Proof of effectiveness for short-term solutions shall be provided within 10 working days
unless otherwise agreed.
Long-term solutions or preventative measures are to be effected and conveyed to MAGNA E.
& I. within 10 working days. Proof of effectiveness is to be based on binding plans for
corrective measures.
If the supplier is connected to the Magna supplier portal (QPF, see Section 5.10) then
complaints are to be handled there.
The supplier must have procedures for the analysis of defect causes and for the prevention of their
recurrence. The employee training solution alone is fundamentally inadequate and will not be accepted
by MAGNA E. & I. The supplier must monitor the effectiveness of established measures and
document effectiveness control. Complaints remain open until the supplier's effectiveness control has
been substantiated. Subsequently a complaint report (8D report) is to be filed. This report shall be
filled in completely, signed, and contain a summary of all faulty components and the allocation of
ensuing costs. This rule is only applicable when no separate warranty agreement has been signed.
6.9.1 Complaint costs

The following costs will be borne by the causative party:
the administrative cost for a test report from the MAGNA E. & I. division (currently 150) /
8D report, review of 8D reports from the supplier, failed initial sampling, necessary structural
deviation, deficiency claims for delivery deviations (schedule/quantity) associated with
subsequent production bottlenecks, deficiency claims associated with logistical differences
(marking, container, packaging errors) etc (currently 150 to 175)
travel expenses incurred by MAGNA E. & I. for complaint processing at the customer's
location
replacement delivery
the cost of scrap
retrofit work at MAGNA E. & I. or at MAGNA E. & I. customers (also that which is
contracted by MAGNA E. & I. from third parties)
sorting activities at MAGNA E. & I., if not carried out directly by the supplier himself
extra transport costs
production standstills (at MAGNA E. & I. or at MAGNA E. & I. customers)
scrapping costs or the cost of parts prepared in production which can no longer be used due to
the supplier's defect
the overhead for exceptional releases by the customer

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other extra overhead incurred by MAGNA E. & I. customers
The responsible MAGNA E. & I. division is entitled to demand reimbursement for the cost of special
measures until such time as the corrective measures become effective (increased test intensity). These
too produce extra costs which are to be borne by the claim's causative party.
6.9.2 Field defects

Field complaints (warranty cases) which are reported by MAGNA E. & I. customers will be
announced to the supplier by the given MAGNA E. & I. division per complaint report. The supplier
must respond to the complaint within a grace period which is set according to the special requirements
of the given MAGNA E. & I. customer. The supplier's response to the MAGNA E. & I. customer field
damage claim must state the supplier's position on the matter, make an analysis of field-damaged parts
and, as necessary, introduce necessary measures for correction (processing through conventional 8D
procedures, alternatively according to given MAGNA E. & I. customer requirements (e.g. BMW norm
GS95004)). Field defects generally affect multiple parts, not just the part with the actual causative
defect itself, and therefore such defects generate costs in excess of the price of the actual failing part.
Documentation about the analysis of components is to be archived for at least 48 months or for a
period as specified by customer requirement.
The causative party will be charged with the incurred costs. In addition to the part price, the costs per
part will also include ancillary costs like
disassembly and assembly,
part handling,
logistics costs,
administrative costs,
any incurred scrapping costs.
Direct automobile manufacturer suppliers contracted through MAGNA E. & I. are subject in full scope
to the given customer requirements with respect to field defects and warranty service costs. The
OEM's systems for processing warranty cases (this also includes the agreements for costs (e.g.
Acknowledgement factors, Audi)) are to be employed according to the OEM requirement and are
binding for suppliers.
6.9.3 Self-disclosure
The supplier is obliged to immediately report deviations from specifications, requirements or delivery
deadlines, etc. to the responsible MAGNA E. & I. division contact partner. The appropriate measures
to be taken will then subsequently be defined in cooperation with MAGNA E. & I. If such a self-
disclosure is made before the goods are received (except for delivery delays) the event will not affect
PPM figures.
6.9.4 Scrap parts / scrap goods

Individual defective components or products (when not considered critical) will be collected and
registered by the given MAGNA E. & I. division. The clearing procedure for collected scrap will be
handled monthly or according to a special agreement with the supplier. Within 5 working days of
receipt of a clearing notice, the supplier has an opportunity to examine the rejected parts or products at
the respective MAGNA E. & I. division. If the supplier does not submit a disposition request for the
rejected parts or products within the 5 working day period subsequent to receipt of a clearing notice
issued by MAGNA E. & I. then these parts or products will be scrapped at the expense of the supplier.

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If the reject parts or products are to be sent back to the supplier by MAGNA E. & I. then the supplier
shall bear the costs for processing, packaging and shipping.
6.9.5 Delivery quality

An assessment and evaluation of suppliers shall be made at regular intervals ranging between monthly
and annually, depending on criterion. These will be based on cumulative key values such as delivery
fidelity, ppm, number of at-fault claims, sorting activities, production line standstills, audit results, etc
(see also Section 5.7).
6.9.6 Special approval / release

When the supplier must obtain approval / release for a product which does not meet the agreed quality
standards, the supplier must submit an appropriate application together with a corrective measures
plan to the responsible MAGNA E. & I. quality management department. It may be necessary to
provide samples and other documentation before such an approval / release can be issued for a
deviation.
The respective special approval / release must be issued by MAGNA E. & I. prior to the delivery of a
deviating product. It may also be necessary to obtain a special approval / release from the MAGNA E.
& I. customer. Furthermore the supplier is responsible for delivery requirements and must ensure that
the cause of the deviation is resolved.
A special approval / release for deviations can only be issued for a particular production lot, a
particular production quantity or a particular production period and can only be issued when a
degradation of function, durability or safety is proven not to be expected.
6.10 Control and guidance of sub-suppliers

The supplier bears exclusive responsibility for the quality assurance of all products delivered to the
supplier by a sub-supplier. This includes complete compliance with respect to all requirements and
specifications for the end-product delivered to MAGNA E. & I.
The supplier must ensure that any sub-supplier/s he may choose to engage is placed under stringent
monitoring during pre-series trials such that stipulations of the Section "Pre-series trials" are upheld.
Any changes planned by sub-suppliers must, analogous to those stipulations contained in Section
"Process changes", also be reported to MAGNA E. & I.
Within the framework of production for MAGNA E. & I. products, the supplier empowers MAGNA
E. & I. to review those sub-supplier processes in the context of plant tours or audits.
6.11 Control of documents and records

The control of documents and records must fulfill legal and governmental stipulations as well as
customer requirements. If necessary, the supplier must clarify these requirements with the responsible
project representatives of the MAGNA E. & I. division. All quality documents and records associated
with the product and its production process are to be made available to MAGNA E. & I. on request,
i.e. in the event of a claim. Fundamentally, the stipulations of VDA Vol. 1 and all relevant legal
stipulations are to be observed.

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6.12 Documentation-mandatory parts and characteristics

The separate documentation regulations for "D parts" and "D characteristics" are to be given special
attention. D parts and D characteristics will be made known to the supplier by the given MAGNA E.
& I. division and the MAGNA E. & I. division will also provide the respective test regulations or
guidelines and norms.
D parts and D characteristics are to be given special attention during test planning, in testing, in the
FMEA (both for product and process), in the production control plan or control plan, with respect to
other necessary test regulations and test instructions. A review is to be made to determine which
process parameters influence D characteristics. These must be given continuous process monitoring
(e.g. PLC) and the results must be recorded as proof. The process parameters to be monitored will be
specified jointly.
Designation as a D part or D characteristic is to be introduced comprehensively (e.g. on drawings, in

FMEA, production control plan or control plan, test planning, test instructions, adjustment datasheets,
PLC proofs, etc). The designation is to be done in compliance with VDA or customer specifications.
The supplier must coordinate this activity with the responsible MAGNA E. & I. division. "S parts" or
"S characteristics" (i.e. safety relevant parts or characteristics) are to be handled exactly the same as
the "D parts" or "D characteristics".
The supplier is to check the documentation provided to him. If the supplier does not get the right
documentation or the documentation provided is flawed in some way, it is the supplier who is
obligated to report this and to obtain the correct documentation.
6.13. Re-qualification
It is the supplier's obligation to re-qualify ongoing production at regular intervals (at least once per
year). The extent of these re-qualification tests is to be established by MAGNA E. & I.
Documentation-mandatory characteristics are in any case a subject of the re-qualification.
7 Product development process
7.1 Assessment of product requirements

The supplier shall assess the requirements associated with the product. This also includes requirements
which have not been forwarded by the given MAGNA E. & I. division but are nevertheless necessary
for the product's application. The assessment must performed prior to entering into a delivery
obligation with the given MAGNA E. & I. division. This means that the assessment must be done
before a quote can be submitted, contracts can be concluded or the acceptance of orders or their
changes.
7.2 Assessment of production feasibility

The supplier must assess and document his ability to produce the product requested by MAGNA E. &
I. in the context of the request for quote and a contract review.

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7.3 Coordination of product specifications

All customer product requirements are to be viewed as product specifications. The technical delivery
conditions represent a summary of all relevant product specifications, including packaging. If a
product/s require special storage conditions or have a limited useful lifespan, then the supplier must
make this known and also mark the product or its packaging with the last possible usage date. The
technical delivery conditions are created by the given MAGNA E. & I. division, coordinated with the
supplier and gains validity by virtue of authorized signatures from both parties. The supplier must
reveal relevant product characteristics which have not been specified in the technical delivery
conditions to the responsible project manager of the respective MAGNA E. & I. division. The supplier
is obliged to deliver exclusively product which meets product specifications. The supplier must have a
established procedure to monitor product specifications for validity at regular intervals.
7.3.1 Tooling layouts

To the extent that MAGNA E. & I. has its own tooling norms, checklists and/or performance
specifications these will be made available by the responsible project manager at the time of request
for quote.
7.3.2 Machines and equipment layout

Machines and equipment will be manufactured and accepted according to performance specifications
of the responsible MAGNA E. & I. division. These documents will be provided to the supplier when
the request for quote is made.
7.3.3 Design and test performance

A development agreement which precisely defines the scope of performance and responsibilities will
be drawn up between the contractor and the respective MAGNA E. & I. division.
7.4 Project management

The supplier must possess adequate project management capability. The QPF (see Section 5.10) is to
be used for project management activities. All activities required of the supplier are described there. A
responsible project manager, who is to coordinate all planning activities, is to be named for each
project A project plan must be created by the supplier which portrays all relevant technical,
scheduling, financial and qualitative activities. The project plan encompasses all phases of
development for the product and its production process, including the assessment, verification and
validation of individual project sections. Creation of the project plan is to be done in coordination with
the project manager of the responsible MAGNA E. & I. division and is to be adapted to the project
plan of the responsible MAGNA E. & I. division as well as to that of the MAGNA E. & I. customer.
7.4.1 Project progress status assessment

In coordination with the responsible MAGNA E. & I. division project manager, status queries about
project progress will be made during the individual project phases. During this procedure the supplier's
project manager and the MAGNA E. & I. division project manager will consider all relevant planning
subjects and establish appropriate steps for handling items of critical status. The basis for the status
query is the QPF along with corresponding working documentation (e.g. checklists) of the MAGNA
E. & I. division and/or our customer (such as, for example, the SPQM (Supplier Parts Quality
Management), PPAP (APQP)). To the extent necessary, project status queries on sub-suppliers will be
conducted by the supplier. In turn, the results of such sub-supplier status queries become a constituent
part of the status query with the MAGNA E. & I. division.

Date: 26/08/2009 Page 28 of 38

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7.5 Product development
7.5.1 Development and advance samples

Sample components, substances or materials will be ordered from the supplier by the respective
MAGNA E. & I. division. These are to reflect the latest given valid specifications or technical delivery
conditions, drawings and so forth. Depending on the agreement with the responsible MAGNA E. & I.
project representatives, the product datasheets, measurement reports, laboratory test reports and/or
other necessary documentation (e.g. safety datasheets, etc) are to accompany the delivery of such an
order.
7.5.2 Marking development parts

In order to facilitate unique part identification, all development parts must be marked with adhesive
labels that can be obtained from the given MAGNA E. & I. division development department. They
are to be applied to all development parts up to and including initial samples. An adhesive label must
be applied to every individual component in a readily legible position (on the inside of visible parts).
Parts which do not permit the application of a label due to size, function or composition are to be
given a tag or placed in a closed carton (each type-specific) with the development label placed on the
outside of the carton.
Field descriptions for the development label/tag:

Designation: name of the part (e.g. safety belt slide cover)
Part No.: material no. or customer article number
Project: abbreviated project name (e.g. vehicle ident: E83, W169)
Drawing No.: the MAGNA E. & I. division's drawing number
D-Rev. / Date: drawing revision level
Material: the component's material/s (e.g. GFPU, painted)
Supplier: manufacturer
Production date: date of fabrication (DD/MM/YY)
Tested: OK = all characteristics comply in tolerance with quality requirements
c.OK = conditionally OK with tolerance violations, release by the MAGNA E.
& I. division required prior to delivery
n.r. = no part inspection required, pursuant to agreement with responsible
MAGNA E. & I. division contact partner
Comment: supplementary information (e.g. special release)
7.5.3 CAD data exchange

The criteria for CAD data exchange is to be agreed separately with the given MAGNA E. & I.
division.

Date: 26/08/2009 Page 29 of 38

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7.6 Production process development

If new production processes are to be implemented for the production of MAGNA E. & I. products or
adaptations are to be made to existing processes, then all required activities are to be planned
systematically. The activities associated with the implementation of such a production process are
constituent elements of the project plan. The results of the FMEA process are to be accommodated in
the planning of the production process. It must be assured that all requirements placed on the product
will be fulfilled by the process. The results of production process development are to be retained in
appropriate documents:
process flow descriptions (flow diagrams)
plant structure plan
process parameter sheets
work and test instructions
production control plans (control plan)
system FMEA process
specifications and drawings
measurement systems, measurement procedures, measurement system capability proofs
process capability proofs
proofs for monitoring process parameters
maintenance and servicing plans
7.7 Preproduction trials

The supplier is to carry out his own preproduction trials for each product to be delivered to MAGNA
E. & I. The first trial in this context is to be made on the production phase fabricated with the first
series production tooling. The supplier is to determine just which procedures are necessary for
carrying out a controlled trial but they must at least include the following factors: bottlenecks, final
assembly, new procedures and equipment as well as special facilities. In case of doubt on this subject,
consultation with the responsible MAGNA E. & I. quality engineer or project manager is appropriate.
After conducting the first trial, every subsequent trial up to conclusion of the pre-series and startup of
series production, should more closely authenticate actual production conditions. The last trial must be
completely identical to series production conditions, i.e. the full complement of equipment and tooling
must be on hand. Equipment operators must be completely trained. The personnel involved must be
those who will also be handling production startup (an assessment will also be made to determine if
perhaps an additional shift must be worked). The employed procedures must be those which will be
used for series production (including the quality assurance systems) and carried out at the rates
projected for series production (including any tool changes and/or conversion times that may be
necessary). The materials used must be the same as projected for series production.
Goal criteria is to be set for every trial, including quality and quantity objectives. Goal criteria are to
be illustrated along with the achieved results in a graphic diagram (pre-series trial status report).
All trial participants must be aware of the exact point in time when the trial actually begins. The trial is
to incorporate the standard production, quality controls and tooling changes that will be necessary for
series production. The time required will be recorded at the end of the trial.

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All components fabricated and/or assembled during this trial period are to be individually evaluated
and divided into two categories:
acceptable
not acceptable.
The given quantities will be recorded in the trial status report. Furthermore, the reasons why parts
were deemed to be non-acceptable shall be recorded as a basis for corrective measures.
If the overall quantity of acceptable parts is insufficient to cover the MAGNA E. & I. pre-series or
pilot-series production requirements then the supplier is to conduct further controlled trials with result
recording of appropriate data until such time as a sufficient quantity of parts are available for shipment
to MAGNA E. & I. If the actual recorded results on the trial status report do not fulfill or exceed the
plan, a corrective measures plan is to be created.
It is not anticipated that full volume output will be achieved at the time of pre-series startup. Therefore
a decision about lowering output within startup phases is to be made. However, a minimum
requirement for this should be that full volume production is achieved within the last phase of pre-
series or pilot series and the series startup itself. The supplier is to present a trial datasheet with the
target line for all project phases prior to the actual pilot series or pre-series. After the conclusion of
each phase, the actually attained trial results are to be entered into the sheet and presented to the
responsible MAGNA E. & I. quality planner together with delivery of the components required for
each project phase by the respective MAGNA E. & I. division. If a corrective measures plan is
necessary then this too is to be submitted together with a pre-series trial datasheet.
The first volume run is to be considered as the last trial phase. The supplier of the manufactured
components is to enclose a completed trial datasheet and, if necessary, a corrective measures plan. If
there are drastic deviations between trial results and required quantities, MAGNA E. & I. may demand
that further controlled trials be conducted after implementation of the corrective measures in order to
verify their effectiveness.
8 Logistics process
Within the context of its logistics strategy, MAGNA E. & I. strives to achieve consequent
implementation of the "flow principle". This means that we stock production materials directly at the
location where they are to be used. This concept places demands on our supplier's logistics which are
described in the following text sections.
8.1 Packaging
Packaging represents a key element in the framework of the MAGNA E. & I. materials and logistics
programs with the objective:
- use of the same packaging from the supplier to the location where the materials are used -
8.1.1 Packaging development

Packaging planning is initiated by the supplier by way of a packaging proposal based on the
information available at the time of request for quote; the supplier's quote is to accommodate and list

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the packaging methods and related costs. The MAGNA E. & I. packaging handbook contains further
details on this subject.
8.1.2 Packaging handling

The supplier is responsible for ensuring that products are shipped in clean, undamaged shipping
materials (washed if necessary). The maintenance of special shipping materials is to be carried out
with the consent of the transport bin's owner (according to the packaging rules for the bin's
management). The MAGNA E. & I. packaging handbook contains further details on this subject.
8.2 Call-up planning

The order call-up is a message from MAGNA E. & I. to suppliers which indicates the quantity and
deadline for the receiving plant's ongoing requirements which are expressed in a scrolling rotation that
covers both short-term and long-term requirements. Delivery call-ups from MAGNA E. & I. are
always based on the respective agreements concluded for blanket purchases.
8.2.1 EDI (electronic data interchange)

The supplier shall use EDI to receive information (delivery call-ups, etc.) from MAGNA E. & I. The
supplier is responsible for establishing the technical prerequisites for this.
8.2.2 Order confirmation

If the supplier does not object to the delivery call within two working days then it is automatically
deemed to be accepted. MAGNA E. & I. does not normally request an explicit order confirmation.
8.2.3 Production and materials release

Production and materials releases will be specified in the delivery call-up and can be different on a
part number basis. The release will be set by the given MAGNA E. & I. division and can be expressed
as follows:
1/3, this would mean that a supplier has a production release for one month and a materials
release for two additional months.
MAGNA E. & I. reserves the right to revise deadlines and quantities which have not yet become
binding in the scheduling process. MAGNA E. & I. does not recognize any liability on its part for an
acceptance obligation of already produced parts in excess of the preset production release or for raw
materials in excess of the materials release.
8.3 Organization
Every change to the supplier's production site or shipping plant is to be reported to the purchasing,
dispatch, quality assurance and logistics departments without delay. The production capacities
negotiated with MAGNA E. & I. are to be held at the ready in the agreed scope subject to the specified
tolerances (quantity flexibility). This information is also available to MAGNA E. & I. logistics
departments.
8.4 Delivery
Responsibility for the correct and timely delivery of materials lies with the supplier. Deliveries made
outside the agreed timeframe can cause delays in the receiving area. In exceptional cases when a
delivery is endangered or when the agreed delivery time cannot be met (date and time of day), the
situation is to be reported to the MAGNA E. & I. logistics contact partner and coordinated with him
accordingly. If it should prove necessary to increase the number of deliveries in order to ensure the

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planned and contractually-secured requirement quantities then the cost of the extra deliveries are to be
made at the expense of the supplier.
Depending on the situation, the exact time window for delivery is to be reported to the division's
logistic department. The supplier is obliged to compensate or indemnify MAGNA E. & I. for all losses
which arise from the non-performance of delivery obligations.
The given delivery call-up from MAGNA E. & I. affords control for the shipment. The delivery
obligations for specified quantities and deadlines are to be fulfilled regardless of legal or religious
holidays and country-specific limitations. Nevertheless, should there be deviations to this, MAGNA E.
& I. is to be informed immediately.
MAGNA E. & I. consequently endeavors to establish an "ex works" policy for delivery terms with its
suppliers. Suppliers who still deliver "freight paid" are being changed over to "ex works" as time goes
by. Exceptions can be arranged with MAGNA E. & I., such as for deliveries of silo goods. For "ex
works" conditions MAGNA E. & I. will specify a freight carrier. Case-by-case decisions will be made
for "freight paid" conditions.
8.5 Supply control

MAGNA E. & I. employs both requirement-oriented and consumption-oriented supply concepts. The
details of this are controlled by the given logistics datasheet. The packaging and delivery stipulations
are essential elements of the logistics datasheet, as are the supplier's contact partner and the respective
MAGNA E. & I. division.
8.6 Delivery papers

The DIN cumulative delivery note 4994, VDA freight carrier order 4922/2 and data
telecommunications accompanying document VDA 4913 are to be used exclusively as delivery
papers.
It is imperative that the following information be printed on the DIN cumulative delivery note 4994:
order number
part number
freight carrier
quantity
bin quantity
bin type
8.7 Transport processing

If the agreed delivery conditions are "ex works" or free carrier, the supplier is to contact our freight
carrier according to a defined scheme and make preparations for the pick-up. The supplier is to use the
prescribed registration form for the given freight carrier or at least supply the data content required by
the carrier.

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8.8 Transparency of delivery processes

Production is to be planned in the sense of the "glass pipeline" such that the current status of
production is continuously evident. The production of sub-suppliers is to be planned in the same
manner. Thus, for the entire delivery process chain, the supplier must ensure that information about
production levels and delivery status can be provided at any time.
Supplier contact partners and their substitutes are to be named for the delivery process to MAGNA E.
& I. These contact partners must be entitled to make competent and reliable decisions. It must be
possible to reach these contact partners during MAGNA E. & I. production hours.
8.9 Passive supply

The supplier shall continue to receive delivery calls for production and material disposition even
though the delivery of parts are subject to the "passive supply" procurement method. The information
derived from passive supply serves only for fine adjustments to control. More detailed information
about passive supply is provided by the respective logistics datasheet.
8.10 Invoicing
MAGNA E. & I. conducts ongoing reviews of all incurred costs associated with normal business
processes, including those costs arising from business with suppliers. On request, the supplier may
choose to issue cumulative invoices on a monthly basis. Payments will be made for properly
formulated invoices within the framework of the agreed terms of payment.
MAGNA E. & I. is striving to implement a credit note procedure or electronic invoicing for future
transactions. Upon request from MAGNA E. & I., the supplier will consent to this procedure.
9 Manufacturing process
9.1 MAGNA E. & I. in-house tooling and operating resources

Tools from MAGNA E. & I., tools provided by an OEM, tools purchased and tools built to order are
to be handled and maintained according to current engineering standards just like the supplier's own
tools. This same principle also applies to any fixtures, test equipment, loading equipment, etc. which
are provided. The supplier is responsible to provide insurance coverage for these tools, fixtures and
test equipment at a level which is commensurate with their current replacement value.
Tools, fixtures, etc. (which are the property of MAGNA E. & I. or an OEM) are to be marked
accordingly (including the respective Magna Division or OEM) with plates that are mechanically
fastened to the property. On demand, such property must be made ready for pickup.
The supplier is responsible for the secure custody, maintenance and servicing of tools and operational
resources over the entire service life of the vehicle model year, as well as with respect to replacement
parts over a period of 15 years after EOP of the model series. The supplier shall bear the expense of
maintenance and repairs for these assets.

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Tools may not be relinquished to third-parties, scrapped or otherwise removed from the supplier's
plant facilities without the express written consent of MAGNA E. & I. After the end of the
replacement parts obligation, the supplier shall request a scrapping release from the purchasing
department of the responsible MAGNA E. & I. division. Following issuance of the release by the
MAGNA E. & I. division, the supplier may scrap the tool in its own responsibility.
The contract document for loaned tools is to be completed with all necessary information at the time
of initial sampling. The information required includes full identification of the tool/s and any
associated aids and/or test equipment which are necessary for the manufacture of the delivered
product.
9.2 Product deviations and protests

The supplier is responsible for the delivery of defect-free products. If there should be cause for
protests in conjunction with the delivered product then we expect the supplier to afford the affected
division with professional and appropriate support. This support may be in the form of one or more of
the following-named measures:
The supplier dispatches an employee to the affected MAGNA E. & I. division to sort out all of
the protested products from the stock of good parts.
All stocks still at the supplier's site are to be inspected for defective parts and these are to be
sorted out of the good parts. Inspected stocks are to be clearly marked as such so that for the
shipment of parts to MAGNA E. & I. it is clearly visible which stocks have been inspected
and which have not.
The supplier shall deliver additional parts to the affected MAGNA E. & I. division at no
charge to replace those which were found to have the known defect.
If deliveries should result in an increased amount of defective products the supplier will be given
notice by the affected MAGNA E. & I. division that the parts in question are to be sorted out. The
supplier subsequently has the responsibility to pick up the refused products. If the questionable
products are not picked up within 10 working days of assuming liability, MAGNA E. & I. shall ship
the products back to the supplier's plant and attribute the ensuing costs to the supplier's account.
If there is cause to make protest about delivered product, the supplier's contact partner will be sent a
corrective actions report to alleviate product deviations (8D report). The supplier must fill out all parts
of the report and return it to MAGNA E. & I. within the prescribed period. The late return of 8D
reports will lead to a loss of points in the supplier evaluation.
Under some circumstances it may be necessary for a MAGNA E. & I. representative to review the
corrective measures described in the 8D report at the supplier's plant. MAGNA E. & I. therefore
reserves the right to conduct such necessary on-site reviews.
To the extent that the supplier notifies MAGNA E. & I. that a delivery may contain suspicious
materials and this notice is received before the delivered product is used or the defect is discovered by
MAGNA E. & I., then it may still be possible to make arrangements for the exchange of defective
products without taking further sanctions against the supplier.

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9.3 Marking and traceability

If not otherwise agreed between the supplier and the MAGNA E. & I. division, all products are to be
marked such that their traceability with respect to the following points is assured:
material batches
fabrication date and shift
fabrication parameters
machine operator
test documents and results
employed work documentation, test instructions and regulations
The marking of delivered units is to be done with VDA tags compliant with VDA Recommendation
4902 in the given current version. Altered products are to be marked with a very visible label on
delivery units (bins, rolls, etc.) for the first three deliveries following introduction of the change. A
remark about the change is to be put on the delivery note.
9.4 Tool management

The supplier must provide resources for the development, manufacture and verification of tools. He
must also introduce a program of tool management that includes:
maintenance and repair facilities and personnel,
storage facilities,
setup,
tool replacement programs for wearing tools,
the documentation of changes to tool specifications, including their engineering revision
levels,
tool changes and the update of documentation,
tool marking that displays the status of tools, e.g. production, repair or disposal.
9.5 Part resumes

Part resumes for delivered parts, assemblies etc. are to be maintained over the entire contract period.
Their use and appearance is to be coordinated with the contracting division. Part resumes are also to be
maintained for business purposes and are to be provided automatically to the responsible purchasing
department employee when changes are made.
Complete copies of the supplier's part resume documentation for the respective MAGNA E. & I.
division is to be presented to the MAGNA E. & I. contact partner (i.e. MAGNA E. & I. quality
planner / project manager) on the agreed project deadlines. Part resumes are to be updated for every
change and submitted to MAGNA E. & I.

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10 Change management
10.1 Tool changes

If the supplier wishes to have maintenance or repair procedures carried out on MAGNA E. & I.-owned
production tools in a third-party facility (i.e. outside the supplier's premises) then he must notify the
responsible MAGNA E. & I. logistics department in writing and provide the following information:
a) the current stocking level of the product and the designation of the tool/s to be taken out
of the supplier's plant,
b) the date the tool/s will leave the supplier's plant premises,
c) the date the tool/s will be returned to the supplier's plant premises.
The tool/s may only then be removed from the supplier's plant after the supplier has received a
corresponding approval from MAGNA E. & I. logistics.
Existing Tool Labour Supply Contracts will be not affected by this arrangement.
10.2 Process changes

Once series production has begun, should subsequent process changes should become necessary
during the product's live-cycle the supplier is to notify the affected MAGNA E. & I. division
accordingly prior to making the changes in order to obtain the required approval. Among other factors,
the following are considered to be process changes:
material changes,
a change of sub-supplier,
the implementation of new equipment or devices,
the subcontracting of fabrication activities,
the relocation of fabrication facilities.
After receiving such notification, the affected MAGNA E. & I. division shall initiate an application for
the approval of process changes. The changes may only be carried out after they have been approved
by MAGNA E. & I. and, in some cases, after being approved by the MAGNA E. & I. customer.
10.3 Design changes

Design changes initiated by MAGNA E. & I. must be carried out prior to the start of series production
or the production of initial samples quantities. The supplier is responsible to purge his stock
appropriately prior to delivery of the first changed product. After first delivery of the changed product,
the supplier assumes full responsibility for all residual product still remaining in his plant that was
produced prior to implementation of the change.
The first delivery of changed product is to be clearly marked as agreed with the affected MAGNA E.
& I. division. It may be necessary to enclose a part resume with the first delivery.

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11 Other agreements
When the stipulations of this agreement are partially or completely impossible to carry out or indeed
not legally effective, this does not affect the validity of the remaining stipulations of this agreement. In
the place of legally ineffective or impossible stipulations, validity shall be attributed to agreed
stipulations which are legally effective and which most closely approximate those stipulations
originally intended.
11.1 The term of this agreement

This agreement becomes effective when it is signed. It can be terminated effective at the end of a
calendar year providing that a three-month advance notice of termination has been observed by the
terminating contract partner. A termination of contract must be in writing.

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12 Attachment
12.1 Submission stages

Submission stage 3 is deemed to be valid when no deviating requirements or written agreements have been
adopted by MAGNA E. & I. with respect to individual components.
Requirements 1 2 3
1 Cover sheet, VDA initial samples test report X X X
2 Test results
2.1 Dimensions, materials, contained substances, function, reliability, etc. A A X
2.2 Machine capability proofs (MFU / Cmk), preliminary and long-term process A A X
capability proofs (PFU / Ppk, Cpk)
3 Sample parts Q Q Q
4 Documentation (design documentation (customer drawing, CAD data, A R

changes), specifications, setup datasheets, etc.)
5* Development releases A X
6 FMEA
6.1* Design FMEA R R R
6.2 System FMEA, product / System FMEA, process R R R
7.1 Process flow diagram A X

(fabrication and test steps)
7.2 QM plan / Series monitoring of quality characteristics / Production control plan / A A X

Control plan
8 Work (fabrication) and test plan R R R
9 Test resources list (product-specific) A X
10 Test capabilities investigation A R
11 Proof of maintaining legal requirements to the extent agreed with the customer A X X
(e.g. environmental, safety, recycling)
X Requirement of the given submission stage

A The scope is to be agreed with the customer in individual cases
R For review only
Q Quantity of samples (>= 0) is to be agreed with the customer
* At the supplier's design responsibility

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Organization Guideline

Corp-6470-02 Supplier Handbook

Date: 26/08/2009 Page 1 of 38

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8.5 Supply control...................................................................................................................... 32

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2 This handbook's structure

Supplier Quality Product Logistics Manufacturing Change

- QM requirements - Packaging - Tool changes

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5.1 General contract rules

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5.1.2 Place of performance and fulfillment

5.1.3 Legal venue

5.1.4 Use of subcontractors / sub-suppliers

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5.1.6 Acceptance and defect claims

5.1.7 Quality and documentation

Federal Republic of Germany:

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5.1.8 International materials data system

5.2 Health, safety, environment

the appointment of a contact person for matters of safety and environment,

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5.3 Emergency concepts

5.4 Customer contact partners

5.5 Supplier selection

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5.5.1 Audit procedure

5.6 Supplier assessment and evaluation

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o ppm (basis for quality is the goal agreement: in general: 0 PPM)

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5.8 Supplier development

5.9 Escalation scenarios

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process support with subsequent report.

Sequence of the 3 reviews:

Sequence of the 3 reviews:

5.10 Magna QPF supplier portal ( Quality Platform)

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5.11 Continuous improvement

6.1 Quality management requirements