Business Operating System

ZFLS Germany Accountability

Order Acquisition Sales / Marketing / Design / Contract Review
Log Modification Notice within SAP

ZFHS St. Thomas, Ontario, Canada Accountability

ZFLS Germany Accountability Warrantee Fulfillment

Order Fulfillment
Quality

Modification Notice Received

Note: ZFLS has Design Authority ZFHS processes Modification Notices as per ZFLS notification

Plan
Input relevant Changes
Quality

Produce

Ship

EDI Release > --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- > Dealer Delivery

Distribute Modification Checklist Signoff
Quality

Drawing Change

Yes

Quality / Logistics / Engineering / Production

All effected areas to update Drawing in use

No
Logistics

Parts list change

No

Yes

Bill of Materials update

Production Related Rework

Quality / Logistics / Engineering / Production

Technical Data

Yes

Update Bill of Materials and/ or Drawing prints in use

Finished goods 44 DO Create production order for rework volume

Demand Employee

Fill out Purchase request form

Approval of purchase request according to signing authorities

Approved

Set up P.O. in SAP Logistics / Purchasing

Issue P.O to supplier Unfinished goods 44 CO Materials Expensed

Op 90

No

Clarify volume / price Logistics / Purchasing Logistics / Purchasing no Logistics Shipment P.O. existing? volumes & prices Accurate yes

Accept Delivery yes

no

Return to Supplier

Reservoir Production

Reservoir Only No

Yes

Conforming In Production 44PO

Op 300 Pack completed assembly into shipping container Yes

Scrap No Remove raw materials needed for Rework from 44PO / 44SO Process Rework Yes Successful? No Material Expensed

Unfinished goods 44 CO

Correct P.O price / volume Receive shipment against P.O / Follow Product Acceptance criteria Logistics /Quality
Band Required

Finished goods 44 DO Central Inventory Components 44SO

Internal /Supplier Nonconforming Product 44 QO

Yes Remove Reservoir, and Band from Box Assembly Band on Reservoir Partial Op 60

Logistics Clarify with purchasing

NO

Ship to GM? Yes

Op 600

No

Receiving
Yes

Acceptable

Yes

MSDS Available

NO Verify WHIMIS label Apply Shop Label

Environmentally controlled ?

NO Hold until MSDS Available

Yes
Bracket Required

Final Inspection

Ship Product to GM with Green dot as per GP-12 requirement and sign off from QA Manager

Record labor cost and material for rework

Yes Remove Reservoir, Bracket and Band from Box

Material handler verifies correct location of truck. Unloads truck.Obtains paperwork from driver. Counts # of skids and checks load

If qty of skids doesnt match or there is damage to any skid, this is to be marked on freight bill and the Driver is to initial/sign and supervisor is notified

QA inspect?

NO

After truck is unloaded, material handler signs Paperwork and keeps a copy

Material handler puts labels on the skid And moves parts to the assigned location

Install Reservoir, Band and Bracket in fixture Op 60

Install and tighten Bolt to specification Op 70

Add Label to Band Op 80

44SO Central Inventory

Op 50

The material handler compares the packing slips To part # on the containers/skids. If necessary Wooden crates are removed and skid is prepared For put away mixed parts are put on separate skid

Yes

Piston, Worm, Housing, Cylinder Cover, Sector Shaft and Drilled Torsion Bar placed in appropriate racks and moved to washer

Product is washed according to appropriate cycle for product type & rack used

Material handler gives all paperwork to the Logistics office or puts in the assigned slot

QA32 Awaiting QA release (44QO unrestricted) Is Training Required?

Yes NO

Op 110 Op 10 & Op 20 Op 105 Verify Torsion Bar/Valve Assy Setup & First Off

Yes Op 100

Logistics Procurement receives paperwork and Enters the receipt for each part into SAP on the MIGO screen

Steering Gear Assembly

Subassembly of Torsion Bar Valve Body (WI~015)

Was h

Parts are issued to sub-assembly Ops

No

release to Accounting

Accounting

Accounting Op 270

sign
Op 550

Assess training need

Labels automatically print for each part with warehouse location assigned

Op 120

Op 125 Hydraulic Drilling Setup & First Off Verification Op 137 Piston Worm Machine Setup & First Off Verification Op 160 Op 150

Op 130 Drilling Hydraulic Centre~019 Op 140 Subassembly Op 140 of Worm Gear and Piston WI~020 Op 400 Final Assembly of Steering Gear No

Conduct Training

Subassemb ly Worm Group Bench Op

Op 135 Piston Screw Machine Setup & First Off Verification

100% Testing in-line at Cell 70

Op 280 Pitman Arm? Yes Op 290

Conforming yes

Logistics

Attach Serial Number Plate Cell 80

Op 285

NO

Training Effective?

Yes

Subassembly piston and steering limiter valve WI~016

goods cleared

preformed Invoice / Customs

verify

no

correct manual

Assembly Pitman arm to steering gear WI~013

Torque locking nut & stake to sector shaft Cell 90 WI~014

Op 300

Subassembly Cylinder covers WI~018

Attach lock nut /Pack completed assemblies into shipping container Complete transfer in SAP system and place into designated inventory location
Op 500 Op 525 Receiving Inspection Logistics

complete shipment in SAP

Process Suspect Product

Final assembly Cells 10-60 See WI~003 to WI~009 Op 210 - 260

Op 700

Ship to sub-contractor for paint op

load truck

Ship

goods Received at Customer Location

Logistics / Accounting

Return Authorized Goods received at ZFHS

Logistics

call transport company

Logistics RGA notification sent to ZFHS Accounting Address Concern: no

No

order o.k. I Shaft Assembly

Op 10 & Op 20

yes

End

RGA notification sent to Customer

RGA notification sent to ZFHS Receiving

Subassembly of Station 1 Capping of Spider Joint WI~025

Op 100

Subassembly of Station 2 Profile Shaft Sub Assembly WI~026

Op 110

verify SAP with transportatio n

change system

Assign RGA Number

Subassembly of Station 3 Friction Test Station WI~027

Op 120 Op 600

Customer Complaint (GM specific) Logistics

Generate Internal System NCR

Subassembly of Station 4 Crimping WO~028 Check angular play in I-Shaft

Op 130 Op 550

Final QA Inspection As required

Discussion: Is the Quality Concern an issue to be corrected and rectified

Yes

Representation required at Customer Site

No

Issue Return Authorization

Op 140

Pick / Pack / Label /Barcode

Replace label with conforming information (Part Number and date)

Yes

Label correct?
Yes No

Send Representation
Assess

Sort ZFHS Product

Conformin g?
Yes

No

Send certified replacement product to Customer

Comply with Customer corrective Action requirements

Return Product:

Meets test parameters?

Yes Yes

Conforming
Internal Product Nonconformance No Op 600 Supplier Product Nonconformance

Certify Stock at customer site: Track Trends Zero Defect Reoccurrence

Quality

Ship to GM?

Final Inspection Refer to Final Inspection Form ZFHS-1510-QA

Op 300

Ship Product to GM with Green dot as per GP-12 requirement and sign off from QA Manager
NO Environmental Nonconforman ce Yes NO Major Emergency

Generate Incident Report

Accountable Party

Level

Assign NCR / set target date

Quality

Root Cause Analysis

No

Yes NO QA Released

Direct Scrap

Implement Corrective Action

Suspect Product

Tag

QA Assess

Conforming

Yes

Return to 44PO / 44SO / 44CO / 44DO or Return to Customer

Yes Follow Emergency Plan PR-036

Yes

Effective ?

No Quarantine 44QO Internal Product Nonconformance Issue NCR / Incident Report Return to Supplier Determine Accountability Obtain Supplier RGA# Return to Supplier at Supplier Expense Supplier Product Nonconformance Issue NCR / Incident Report Supplier Nonconforming product Disposition Disposition

Plan & Implement Preventive Action if appropriate

No

No Quality

Quality

Effective ? Yes

Zero Defect Reoccurrence / Close NCR

Certified replacement stock Obtain Supplier Rework Authorization Conduct Rework Conforming Stock

Rework at Supplier Expense

Scrap at Supplier Expense

Certified replacement stock

Obtain Supplier Scrap Authorization

Scrap