Vendor Qualification Process -Guidelines-

Tecnova India Pvt. Ltd. 2007-08

CONFIDENTIAL

Objectives

To define the process for the evaluation of potential new vendors capability to meet customers requirements/expectations. To identify areas of synergies as well as any non conforming areas. Based on the results of the above to select vendors, which can be considered for supplies to customers. To reduce quality and financial risks to partnership with the wrong vendor(s).

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Process Outline
Vendor Market Analysis Large No. of candidates Reduced No. of candidates Small No. of candidates Final candidates
Vendor Finalization

2.Second Filter 1.First Filter

3.Final Filter

1.1 Vendor Profiling 1.2 Quality Certification

2.1 Financial Status Review 2.2 Systems Audit 2.3 Quality and PPAP performance Review

3.3 Development Process Audit 3.4 Supply Chain Review 3.5 Environmental Status

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Process Flowchart Phase I

Responsible T Supplier market analysis T Tecnova C Customer

T First Filter

T/C

Review of the First Filter Results

Team decision ! Stop if not acceptable !

2. Second Filter Process: T Second Filter 2.1 Financial Status Review 2.2 Project and Process review 2.3 Facility Audit 2.4 Commodity Specific requirements, if applicable Review of the Second Filter Results
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Templates/Tools: 2.1 Financial review format 2.2 Process Checklist 2.3 Customer review 2.4 Plan review Team decision ! Stop if not acceptable !

T/C

Vendor Pre-Qualification Summary

1. First Filter Process: 1.1 Prepare and screen Vendor Profile 1.2 Investigate Q-Certification Status and Plans

Templates/Tools: 1.1 Supplier Fact Profile 1.2 Quality Accreditation checklist

Process Flowchart Phase II

Responsible 3. Final Filter Process: T Final Filter T/C 3.1 Development Process Audit 3.4 Supply Chain Review 3.5 Environmental Status Review of Final Filter Results Customer and Tecnova shall review the information in detail to finalize supplier(s) Team decision ! Templates/Tools: 3.1 Comprehensive team review

Stop if not acceptable ! Vendor finalization and kick-off of the project including signing of the MoU Project review and supplier continuation status Pilot Project review and analysis on deliverables including quality
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T/C Post Selection Reviews

Team decision ! To approve a vendor every team member must agree!

T/C

Vendor Qualification Summary

Project Management Phase III

Responsible Project Management: T Sample Development Project Based Reviews Vendor Performance Review Process T/C PHASE II Green Maintain / Increase business Yellow Improvement Plan to be disc Red Eliminate / Phase out supplier Stop if not acceptable ! Contingency Plan T/C Fall back plan to be put in place in oder to ensure minimum time delay if supplier awarded Red Flag Team decision ! Team decision ! Templates/Tools: 3.1 Project Tracking schedule

T/C

Retrace back to MoU stage

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Vendor Finalization and Continuation Plan

Phase I Vendor Market Analysis

Vendor Market Analysis (Product specific) Vendor Profiling, Identification and shortlisting in line with pre-specified client requirements and existing Tecnova policies

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Phase II Vendor Audit

Inspect the Manufacturing Facility of the suppliers Evaluate the Quality Management system to assess the Quality level of the vendor Evaluate the complete manufacturing capabilities of the supplier w.r.t machineries, technical knowledge of the key people in the company, components being manufactured presently, Quality department w.r.t tools & gauges.

Evaluate the tool design and manufacturing facility of the supplier

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.Contd

Check on the spare capacity availability with

the supplier

Evaluate the export experience of the supplier Check on the certification level of the supplier
(ISO9001,TS16949, ISO 14001, OHSAS)

Negotiate willingness of the supplier to take

the liability for failing to meet the agreed quality and delivery commitment
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Phase III Vendor Development

Sending RFQs, obtaining and submission of quotes to clients Organizing visit for Clients officials to visit the short-listed vendors Negotiations on behalf of customer (local language expertise) Develop vendor for smooth product development as per clients requirements Sample Preparation:

Pre-dispatch inspection for the samples Troubleshooting and doubt clarification for facilitation of sample approval.

Regular Production

Proper co-ordination during mass-production to ensure no slip-ups and on time deliveries Periodic check to audit suppliers QMS

Evaluate / Audit Tier 1 Suppliers of main Vendor

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THANK YOU

CONFIDENTIAL