© LOTUS CARS LIMITED Potash Lane, Hethel, Norwich, Norfolk NR14 8EZ England Registered Office: Potash Lane, Hethel, Norwich, Norfolk NR14 8EZ England No. 606189 VAT Reg No. GB 105 9863 55
SUPPLIER QUALITY MANUAL
Approval:
A Pleavin Head of Quality
I Snary Supplier Quality
Assurance Manager
Supplier Detail:
Revision Level: 3Supplier Name:
Print: Sign: Position: Date:
SUPPLIER QUALITY MANUAL
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0.1 Copyright Notice
The contents of this manual and all associated processes, systems and documentation are
owned by Lotus Cars Limited and must be handled in strictest confidence by suppliers using
this manual.
© 2013 Lotus Cars Limited
Lotus Cars Limited all rights reserved owns the copyright for this manual and all content
within. No part of this manual may be copied, transmitted or shared in any way without
prior written permission of Lotus Cars Limited.
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0.2 Revision Record
Rev Date Issued Details of Change
0 09‐09‐2013 First Issue ‐ Replaces Supplier Handbook
1 24‐10‐2013 Updated in line with A3‐A‐6.148 LPAP R1 Part Approval Section 3.0 Text updated to bring in line
2 02‐05‐2014 Corrections to document reference numbers.
3 7‐08‐2014 Corrections to document reference numbers.
Important Note:
This Supplier Quality Manual supersedes the Lotus Supplier Handbook which is now obsolete
and should not be used for suppliers to Lotus Cars Limited.
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0.3 Table of Contents
0.1 Copyright Notice 2
0.2 Revision Record 3
0.3 Table of Contents 4
0.4 Standard Forms 5
1.0 Introduction 6
2.0 Supplier Assessment 7
2.1 Supplier Sourcing 7
2.2 Site Assessment 7
2.3 Surveillance Audit 8
3.0 Part Approval 9
3.1 Process Overview 9
3.2 Submission Requirements 11
3.3 Part Approval 12
4.0 Part Control 13
4.1 Key Characteristics 13
4.2 Batch Control and Traceability 14
4.3 Documentation 15
4.4 Supplier Request for Process Change (SRPC) 16
5.0 Non Conforming Product 17
5.1 Supplier Corrective Action Request 17
5.2 Stock Swap 19
5.3 Rejects 20
5.4 Supplier Request for Concession (SRC) 22
6.0 Materials Handling 23
7.0 Metrics and Reporting 24
7.1 Q‐Sheet 24
7.2 Visit Report 24
8.0 Glossary 25
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0.4 Standard Forms
Doc Ref Description
A4‐A‐6512 Supplier Waiver
A4‐A‐6592 Supplier Audit Questionnaire
A3‐A‐6148 Lotus Part Approval Process (LPAP)
A4‐A‐6148.17.1 Final Part Approval
A4‐A‐6441 Supplier Request for Concession
A4‐A‐6444 Supplier Request for Process Change
A4‐A‐6361 Supplier Corrective Action Request
A3‐A‐6.21 Logistics Vendor Packaging Method
A4‐A‐6513 Q‐Sheet
A4‐A‐6821 Visit Report
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1.0 Introduction
Our objective is to procure the highest quality and cost effective components for assembly
into our vehicles delivered consistently on time. This will be achieved through open, honest
and clear communication with our suppliers and a philosophy of working in partnership to
address problems quickly and robustly to protect the end consumer.
The purpose of the Lotus Supplier Quality Manual is to document all of the requirements
and associated processes for the development, approval and supply of production materials
to Lotus Cars Limited. If the supplier or any of its sub‐suppliers require clarification on any
of the content within this manual or anticipate problems achieving its requirements they
should contact Supplier Quality Assurance for assistance.
A copy of this manual will be issued to each manufacturing site supplying parts to Lotus Cars
Limited. This copy shall then be controlled by the supplier’s Quality Department and
cascaded to ensure that all relevant business functions are trained and meet the
requirements herein.
The front cover sheet of this manual shall be completed by the receiving supplier and
returned to Supplier Quality Assurance for our records to ensure that the manual has been
received and cascaded within the supplier’s site.
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2.0 Supplier Assessment
2.1 Supplier Sourcing
Our supplier quality management philosophy is to select suppliers who are registered to the
following recognised quality standards:
ISO 9001:2008
TS16949: 2009
Where suppliers do not hold externally accredited quality management systems to these
international standards a Supplier Waiver A4‐A‐6512 will need to be submitted and
approved by Lotus Cars Limited prior to supply of production materials.
2.2 Site Assessment
During the supplier sourcing process it may be necessary for Supplier Quality Assurance to
visit the proposed manufacturing facility to conduct an audit (Supplier Audit Questionnaire
A4‐A‐6592). Items covered as part of this audit include:
Administration
Manufacturing
Inspection
Delivery
Follow‐up performance
The overall score from the audit will be reviewed by Supplier Quality Assurance to define the
supplier status.
If concerns are raised from the output of the audit then an action plan will be agreed with
the supplier in support of the sourcing process within 14 days from the original Site
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Assessment. Progress will be monitored against the plan and all corrective actions must be
completed prior to start of production material supply into Lotus Cars Limited.
Supplier Quality Assurance reserves the right to follow‐up the audit with additional site visits
as required to confirm corrective actions are complete and meet our requirements.
2.3 Surveillance Audit
Periodically Supplier Quality Assurance will either visit suppliers to undertake additional
audits or request suppliers carry out their own self‐assessment (Supplier Audit
Questionnaire A4‐A‐6592).
Depending on the surveillance audit result the supplier may be requested to develop
corrective action plans to resolve areas of concern. Supplier Quality Assurance reserves the
right to follow‐up the audit or self assessment with a site visit if required to confirm
corrective actions are complete and meet our requirements.
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3.0 Part Approval
3.1 Process Overview
Lotus Cars Limited operates its own bespoke system for developing parts and processes
within the supply chain to ensure that they consistently deliver our requirements: Lotus Part
Approval Process (LPAP).
The diagram below illustrates the generic timing of the 14 activities that make up the LPAP
process aligned with the Lotus Product Development System (LPDS) milestones for new
models:
Activity Start Finish Lotus Lead
Planning Phase CI CA SQA
Supplier Visits CD SOP SQA
LPAP Status Reporting CA SOP SQA
Quality History Review CD FA NPQ
Feasibility Review CD FA NPQ
Design FMEA CD FA NPQ
Process FMEA CA PPA SQA
Part Quality Requirements CA PPA NPQ
Tooling & Facilities CA SOP SQA
Process Control Chart FA PA SQA
Training Records FA PA SQA
Checking Fixtures FA PA SQA
Part Submission Sheet FA SOP NPQ
Sub-Supplier Approval PA LA SQA
Run @ Rate PA LA SQA
Appearance Approval PA SOP NPQ
Final Part Approval PA LA SQA
VP PPEP
CD FA PPA SOP LACACIPS PA
2 31 4
Fig 3.1.1: Lotus Parts Approval Process
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The following flow chart gives an overview of the LPAP submission and approval process:
SupplierLotus
Complete Final Part Approval
Complete LPAP activities as required
Review Final Part Approval
Agree corrective actions with supplier
No
Agree Supplier Category and Submission
Requirements
Parts OK Fit and Func?
All Elements OK?
Yes
Raise Interim Approval
Agree action plan to full approval
Raise Full Approval
No
Yes
Fig 3.1.2: Process Flow for Part Approval
All aspects of this process and associated activities are documented within the Lotus Part
Approval Process (LPAP) Manual A3‐A‐6.148 which is available from Supplier Quality
Assurance.
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3.2 Submission Requirements
The Lotus Part Approval Process applies to all external suppliers of bulk materials,
production or service parts. The specific activities required for each supplied part to Lotus
Cars Limited will depend upon change content and shall be agreed between the supplier and
the Supplier Quality Assurance representative during the planning phase.
In terms of submission data to support evidence of activity completion Lotus Cars Limited
operates different submission levels as follows:
Category A Lotus certification
Supplier must submit all of the LPAP documentation for full
review
Category B Self certification
Final Part Approval, ELV/RRR Data Recording Sheet, Part Quality
Requirements, Part Submission Sheets, Process Capacity Sheets
and Appearance Approval Report (where appropriate) are
required for submission
Category X Supplier uses alternative to LPAP
Supplier may use an alternative approval process if agreed in
advance with Supplier Quality Assurance. Final Part Approval,
ELV/RRR Data Recording Sheet, Part Quality Requirements and
Appearance Approval Report (where appropriate) are required
for submission
Suppliers will be advised by Supplier Quality Assurance which submission category they fall
into based on part technology, complexity and previous quality performance.
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3.3 Part Approval
Once all LPAP activities have been completed the Final Part Approval (A4‐A‐6148.17.1) form
should be completed and submitted together with required supporting documentation and
sample part(s) for review.
Supplier Quality Assurance will then review the data submission together with an
assessment of sample part(s) for physical appearance and vehicle fit and function.
If all elements of the assessment are passed then a Full Approval will be granted. The FPA
form (A4‐A‐6148.17.1) will be signed and a copy will be sent back to the supplier for their
records as authority to ship materials into Lotus Cars Limited.
Important Note: ELV/RRR Data must be supplied for all parts as part of the submission
paperwork to gain Full Approval.
Where issues are found that do not directly affect part fit/function an Interim approval may
be raised. The FPA form (A4‐A‐6148.17.1) will be signed and sent back to the supplier to
allow shipment of materials into Lotus Cars Limited pending correction of open items.
Where issues found do affect part fit and function or insufficient information has been
provided to make an approval Supplier Quality Assurance will contact the supplier direct to
agree corrective actions and timing to achieve Part Approval. In order to authorise shipment
of this material into Lotus Cars Limited a Supplier Request for Concession (A4‐A‐6441) will be
required documenting the agreed corrective action plan pending completion of the updated
approval documentation – refer to section 5.4.
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4.0 Part Control
4.1 Key Characteristics
Key Characteristics are identified on Drawings, Technical Specifications and Part Quality
Requirements in line with the following:
Symbol Definition Description
Fit / Function
Item likely to affect ability to build, performance or
appearance which would lead to customer complaint.
Regulatory
Compliance
Item which would affect vehicle ability to meet market
specific legislation
Safety
Compliance
Item which could affect safe vehicle operation or part
assembly at Lotus
For all key characteristics defined adequate controls must be in place within the part
manufacturing process to ensure specifications are achieved. These requirements must be
cascaded within all documentation to include:
Drawings
Specifications
Part Quality Requirements
Process FMEA
Process Control Chart
Operator Instructions / Training documents
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4.2 Batch Control and Traceability
Parts with safety ( )or legislative ( ) key characteristics may be required for Batch
Control with full Traceability required between delivered product back to raw material /
manufacturing process and date at the supplier’s site.
Supplier Quality Assurance will advise Batch Control and Traceability requirements based on
the following definitions during the LPAP process:
Type Definition
A Each individual part identified with unique traceable serial number
B Batch traceable and marked on part within agreed batch size / time period
C Batch traceable and marked on packaging / delivery note with agreed batch
size/time period. To be used when not possible to mark parts.
Where the supplier has an alternative method of batch control / traceability this may be
used only if agreed in advanced with Supplier Quality Assurance.
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4.3 Documentation
Documents and records pertaining to the design and manufacture of parts supplied should
be controlled in line with the suppliers’ quality management system and ISO 9001:2008.
Retention of all such documentation in the form of hard copy, electronic or other media
shall be in line with the following table:
Record Type Example Retention Period
Transient / Live Documents ISO Audits
Corrective Action Reports
Created Date
+ 1 Year
Product Records Inspection / Test Results
Non Conformance Reports
Product Life*
+ 1 Year
Product Records – Safety
or Legislative related
Inspection / Test Results
Non Conformance Reports
Product Life*
+ 15 Years
Process Records Tooling and Fixtures
Process Controls
Product Life*
* Product Life is defined as the manufacturing lifespan of the vehicle(s) into which
the parts are fitted.
Where the supplier has alternative document control procedures these may be used
providing they exceed the Lotus requirements as detailed above and advanced approval
from Supplier Quality Assurance has been granted.
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4.4 Supplier Request for Process Change (SRPC)
When the supplier wishes to make a change to the process used for the manufacture of
parts supplied an SRPC form (A4‐A‐6444) is required to gain approval for the proposed
change in advance of its implementation. Changes requiring such approval include:
Manufacturing Process Change
New or relocation of Equipment / Facility
Change of sub‐supplier / components within a supplied assembly
Design changes (where supplier is design responsible)
The process for SRPC submission and approval is as per the flow diagram below:
SupplierLotus
Complete SRPC Form
Review SRPC
REJECTchange request.
No
Change to process is proposed
Change acceptable?
Yes
APPROVE change request
Confirm action plan with supplier
Implement Process Change
A4‐A‐6144
Fig 4.4.1: Supplier Request for Process Change
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5.0 Non Conforming Product
5.1 Supplier Corrective Action Request
A Supplier Corrective Action Request (SCAR) will be raised by Supplier Quality Assurance
when a concern or quality issue is identified as supplier related and one or more of the
following criteria apply:
a) Concern investigation reveals risk of disruption to production
b) Concern involves a repeat issue previously communicated to the supplier.
c) Supplier has had similar concerns on other parts.
SCAR responses from suppliers should be received within a 24 hour period & include any
required containment actions.
Closure plans for SCARs should be agreed with Supplier Quality Assurance within 2 working
weeks of being raised. If a supplier requires additional time to collate permanent corrective
actions, they should request a time extension through their Supplier Quality Assurance
representative.
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The following process flow shows the process from concern identified at Lotus Cars Limited
to issue resolved at supplier:
SupplierLotus
SCAR RaisedInvestigate Concern
Implement Interim
Containment Action (ICA)
Review ICA
NoICA acceptable?
Yes
Implement Permanent
Corrective Action (PCA)
Contact Supplier to resolve
Review PCA
NoPCA acceptable?
Yes
Contact Supplier to resolve
Close SCAR
ICA req
uired
in 24 Hours
PCA req
uired
in 14 Days
A4‐A‐6361
Fig 5.1.1: Supplier Corrective Action Request Process
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5.2 Stock Swap
Where non‐conforming parts are identified a stock swap process is available whereby
suppliers can replace this material with good parts within an agreed window with Supplier
Quality Assurance.
Such parts will not be considered as reject material and hence will not impact on a supplier’s
PPM (Parts per Million) score but will still require SCAR (Supplier Corrective Action Request)
completion. The following process illustrates how stock swaps are handled:
SupplierLotus
Non‐Conforming parts identified
Review New Parts
NoParts OK?
Yes
Contact Supplier to resolve
Raise SCAR
Maximum 5 Days
Raise Reject NoteStockSwap?
No
SupplyNew Parts
Yes
A4‐A‐6361
Fig 5.2.1: Stock Swap Process
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5.3 Rejects
When a reject note has been raised, details are emailed to the supplier, who then has 5
working days to investigate the details of the rejection and to either; accept, rework or
query liability. At the end of this 5 day window, materials will be scrapped if they have not
been requested for return by the supplier. If parts are being returned to the supplier
transportation costs will be cross‐charged and debited from the supplier’s account:
SupplierLotus
Reject Note Raised
Reject NoteClosed
No
Hold Parts5 Days
PartsCollected?
Supplier Account Debited
(Incl Admin Fee)
Scrap Parts
Agree part collect / scrap
Yes
Fig 5.3. 1: Reject Part Process
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Important Note
From October 2013 the following may be cross‐charged to suppliers:
Administration charge for handling and processing reject notes
Inspection charges for undertaking time consuming batch / part reviews
Rework charges if non‐conforming parts are being reworked by Lotus Cars Limited
personnel
Consequential part costs if non‐conforming materials have been processed into
assembly or parts fitted to vehicles which need to be replaced
Warranty recovery costs may also be passed on to suppliers in some circumstances
Where applied, these charges will be debited from the suppliers account in addition to the
cost of the parts themselves.
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5.4 Supplier Request for Concession (SRC)
Where a supplier wishes to make a temporary change to the parts supplied a Supplier
Request for Concession (SRC) is required to gain approval for the proposed change in
advance of its implementation.
Changes requiring such approval include:
a) Material specification change
b) Cosmetic quality specification change
c) Dimensional specification change
The process for submission of the SRC form (A4‐A‐6441) and approval is as follows:
SupplierLotus
Supplier requires change / deviation
No
Yes
Complete SRC Document
Review SRC
RequestOK?
Contact supplier to resolve
Approve SRCImplement Request
A4‐A‐6441
Fig 5.4.1: Process for Supplier Request for Concession
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6.0 Materials Handling
In order to maintain the quality of finished goods during transit and storage suppliers should
refer to the Logistics Vendor Packaging Method (LVPM) policy (A3‐A‐6.21). This is used to
agree, develop and sign‐off the packaging method for all parts supplied into Lotus Cars
Limited. Copies of this policy and associated documentation for packaging approval can be
obtained from the suppliers’ Lotus logistics contact.
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7.0 Metrics and Reporting
7.1 Q‐Sheet
Supplier Quality Assurance will issue quality feedback to its suppliers via the Q‐Sheet A4‐A‐
6514 on a quarterly basis. This report contains key performance indicators (KPIs) covering
the following items:
Part Approval Status for parts supplied;
LPAP Status for new models;
SCARs – quantity and ageing profile;
PPM – reject rates for parts supplied;
Key issues and action items for both parties where appropriate;
The purpose of this report is to provide data for cascade through the supplier’s management
and organisation. This will then be used to drive a continuous improvement approach and
promote open and honest feedback between Lotus Cars Limited and the supplier.
7.2 Visit Report
When Supplier Quality Assurance visit the supplier to investigate a concern or follow‐up on a
previous activity a visit report (A4‐A‐60133) will be issued within 48 hours of the visit
completion. This report will include full details of the supplier team members seen and all
actions agreed from the meeting. Actions and status will be summarised with a RED‐
AMBER‐GREEN status and follow‐up will be conducted by Supplier Quality Assurance until all
items are completed and achieve a GREEN status.
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8.0 Glossary
Acronym Definition Description
ELV/RRR End of Life / Reduce – Reuse ‐
Recycle
Material / Chemical data for all
component parts used within Lotus
products that is required for vehicle
type approval.
FPA Final Part Approval Form used to request approval at the
end of LPAP process.
LPAP Lotus Part Approval Process Method implemented 2013 to
replace APQP/PPAP for new part
maturation and approval.
LPDS Lotus Product Development System Project management and delivery
process for new models at Lotus Cars
Limited.
LVPM Logistics Vendor Packaging Method Packaging requirements for
production parts.
PPM Parts Per Million Measure of defects supplied against
total quantity of supplied.
PQR Part Quality Requirements Documented quality standards and
checking method for production
parts.
PSS Part Submission Sheet Document for dimensional /
functional measurement submission
as part of LPAP.
SCAR Supplier Corrective Action Request Report submitted to supplier for
feedback regarding quality issues
found with their parts.
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Acronym Definition Description
SQA Supplier Quality Assurance Department responsible for
managing supplier performance.
Part of Quality Department.
SQM Supplier Quality Manual Manual with all supplier related
processes.
SRC Supplier Request for Concession Form used to request deviation
against technical specification /
process / PQR.
SRPC Supplier Request for Process Change Form used to request change to
process for manufacture of parts.