For Use with ISO/TS 16949: 2002

Visteon Corporation

Customer Specific Requirements

For Use With ISO/TS 16949: 2002

Printed Copies of this Page 1 of 20 December 17, 2003 Document are Uncontrolled Visteon Corporation Customer Specific Requirements to ISO/TS 16949:2002

1. Introduction

Quality professionals from Visteon collaboratively developed this document. The content of the document was developed using the Customer Specific Documents of several automotive OEMs and with the consultation of the Joint Task Force for Supplier Quality, Automotive Industry Action Group (AIAG). Key contact for interpretation of this requirements document is:

Visteon Corporation:

Supplier Development / Performance Manager Visteon Technical Center 16630 Southfield Road Allen Park, MI 48101 Fax: 313-755-9644 Email: [email protected]

2. Customer Requirements Document Structure

This document is structured as a companion document to ISO/TS 16949:2002. The paragraphs to this document mirror the paragraphs to ISO/TS 16949:2002. Where guidance by the customer is referenced, a requirement will be stated to clarify Visteon interpretation. For suppliers of semiconductor components, the Customer Specific Requirements (ISO/TS 16949:2002) Semiconductor Commodity uses this same structure and should be used as a companion requirements document to this document and ISO/TS 16949:2002. The requirements of all three documents must be met where applicable.

Some additional requirements are contained in the Annex B, which is not auditable by registrars. The contents of this entire document are considered requirements for doing business with Visteon and should be implemented even if the organization is not registered to ISO/TS 16949:2002. In second party audits, the expectation of Visteon is that all these requirements (where applicable) are implemented.

3. Reference Documents

The following reference documents are available through AIAG (248-358-3003) or Carwin Continuous (UK) in Europe (44-1-708-861333) and shall be used to develop the quality system. The AIAG reference manuals to the latest edition shall also be used.

Production Part Approval Process, PPAP Statistical Process Control, SPC Potential Failure Mode and Effects Analysis, FMEA Advanced Product Quality Planning and Control Plan, APQP Measurement Systems Analysis, MSA Materials Management Operations Guideline, MMOG

The Customer Specific Requirements (ISO/TS 16949:2002) Semiconductor Commodity is available from the Automotive Electronics Council website www.aecouncil.com. Semiconductor Assembly Council (SAC) documents are available through www.sacouncil.org.

Printed Copies of this Page 2 of 20 December 17, 2003 Document are Uncontrolled 1. Scope

ISO/TS 16949:2002 and this document define the fundamental quality system requirements for the Visteon Corporation supply chain. This document contains the company specific requirements supplemental to Technical Specification, ISO/TS 16949:2002. These supplemental requirements may also apply to QS-9000, ISO9001: 2000 and other similar registrations as applicable and developed within this document. These supplemental requirements shall be in the scope of the registration/certification audit in order to be recognized as satisfying the Visteon supplier criteria for third-party certification by an IATF recognized and contracted certification body.

All ISO/TS 16949:2002 requirements and the requirements of this document shall be documented in the organization's quality system. See 7.4.1.2 for further clarification of other applicable standards and the requirements.

The English language version of this document shall be the official version for purposes of third party registration. Any translations of this document shall be for reference only.

Copies of this document are available at:

Visteon Corporation: http://www.visteonsupplier.com

2. Normative references

See 3 above for a listing of references.

3. Terms and Definitions

ASDE (Supplier Performance Engineer, SPE, in Europe) Advance Supplier Development Engineering is the group of engineers within Visteon that are responsible for assisting suppliers on a new program to launch products.

Capacity verification A verification methodology to demonstrate that an organization can meet the capacity planning volume requirements as defined in the purchasing Request For Quote (RFQ).

Customer References within this document to “customer” shall be interpreted as Visteon. This pertains to the corporation receiving and purchasing product from the organization.

DVPR This is the Design Validation Plan and Report. It contains the validation plan and subsequent report of the results.

Family Parts These are groups of parts processed on the same production line, using the same control plan, PFMEA and process equipment. The parts differ only in end item value. PPAP for the “family” is approved for using the extreme values to the “family” specification to bound the “family”.

MMOG The Materials Management Operations Guidelines (MMOG) is a document jointly created by the Automotive Industry Action Group (AIAG), OEM representatives, and automotive suppliers.

MTBF Mean Time Between Failure is a metric to measure the reliability of equipment.

OEE Overall Equipment Effectiveness is a metric to determine the utilization of equipment in a manufacturing process.

Printed Copies of this Page 3 of 20 December 17, 2003 Document are Uncontrolled OEM Original Equipment Manufacturer (OEM) is intended to be the end item producer of the vehicle.

Organization Providers of production or service parts, or heat treating or other finishing services directly Visteon. Within Visteon, the organization is commonly referred to as the “supplier”.

Paynter Chart A Paynter Chart tracks specific defects or issues over time to verify effectiveness of containments and corrective actions.

Quality Roadmap A quality roadmap is a communication tool to provide the customer a plan to reduce quality defects. This tool includes the use of trend lines, performance goals, Pareto charts, Paynter charts and 8Ds.

Report Card An on-line information system that provides Quality and Delivery rating information to organizations that supply Visteon. The external website to access is Report Card (http://www.visteon-tpnet.com/)

RMA A returned material authorization is a tracking number supplied from an organization authorizing the return of material.

SDE Supplier Development Engineering (SDE) is the group of engineers within Visteon responsible for assisting suppliers with current model quality issues. Supplier, or organization, manufacturing sites are assigned to specific SDEs.

SPE Supplier Performance Engineering is the group responsible for APQP in Europe. They are equivalent to the ASDE group.

Shall A mandatory requirement.

Should Indicates a mandatory requirement with some flexibility allowed in compliance methodology.

Subcontractor Provider of production or service materials or services directly to the organization.

VPDS This is the Visteon Product Development System. It includes a series of performance gates to validate readiness to move to the next gate in the product development process. These gates include evaluation of supply chain readiness.

Printed Copies of this Page 4 of 20 December 17, 2003 Document are Uncontrolled 4. Quality Management System

4.1 General requirements

4.1S All ISO/TS 16949:2002 requirements and the requirements of this document shall be documented in the organization's quality system. See 7.4.1.2 for further clarification of other applicable standards and the requirements. The entire facility (producing automotive products for Visteon) must be registered to the applicable standard. Where the entire facility does not produce automotive products, a clear definition of what product lines are registered shall be included in the registration scope. 4.2 Documentation requirements

4.2.2S Quality manual

All ISO/TS 16949:2002 requirements and the requirements of this document will be included in the organization's quality system.

4.2.4.S Control of Records

Production part approvals, tooling records, purchase orders and amendments shall be maintained for the length of time that the part (or family of parts) is active for production and service requirements plus ten calendar years unless otherwise specified by Visteon for their respective products. This includes any customer owned tooling.

Production inspection and test records (e.g., control charts, inspection and test results) shall be retained for one calendar year after the year in which they were created. Records of inspection shall be maintained for each inspection or test performed. Where practical, the actual test result (variables or attributes) should be recorded. Simple pass/fail records of inspection are not acceptable for variables measurements.

Records for internal quality audits and management review shall be retained for three years.

Some programs may require longer retention periods than specified above. An organization may specify the retention period in its procedures or specifications.

The above does not supersede any regulatory requirements.

5. Management Responsibility

5.2S Customer focus

The organization shall demonstrate customer satisfaction through meeting continuous improvement objectives consistent with a well-developed QOS/BOS. See 5.6 for additional information on content and frequency. A self- assessment of QOS/BOS effectiveness shall be done yearly. Annex A contains a suggested outline of BOS/QOS metrics.

5.5 Responsibility, authority and communication

5.5.2.1S Customer representative

The organization customer representative is the primary interface to the customer. When the customer representative changes, the organization shall notify Visteon Supplier Performance, Commodity Purchasing and shall update the Report Card contacts as appropriate.

If the organization changes senior management responsible for quality or company ownership, Visteon Commodity Purchasing shall be notified within 10 business days. This notification may be completed through an email and copied to the SDE of record on Report Card.

Printed Copies of this Page 5 of 20 December 17, 2003 Document are Uncontrolled 5.6 Management review

5.6S The organization management shall hold monthly QOS/BOS performance meetings. These meetings shall review all facets of the business including design, manufacturing, logistics, customer satisfaction, subcontractor performance and new business development. The meetings need not be held as one meeting, but may be a series of meetings covering each of the metrics each month. The QOS/BOS process shall be documented as part of the organization documentation.

6.2 Human Resources

6.2.2.2S Training

The organization shall ensure that only trained and qualified personnel are involved in all aspects of the design and manufacture Visteon products. This training will include the appropriate Visteon systems.

Records of training will be traceable to the revision of the source training material (e.g., policy, procedure, work instruction). These records are to be maintained for 3 years from the date of the training.

6.3 Infrastructure

6.3.1S Plant, Facility and Equipment Planning

The organization shall have lean manufacturing implementation plans.

6.3.2S Contingency Plans

The organization shall prepare a contingency plan following guidelines available at visteonsupplier.com. Upon request, the organization shall provide a copy of their contingency plans to Visteon. The organization shall notify Visteon receiving plants, the buyer and the SDE of record on Report Card within 24 hours of organization production interruption. The nature of the interruption shall be communicated with the immediate actions taken to assure supply of product. Production interruptions may include (but are not limited to) natural disasters, political unrest, war, capacity issues, quality issues, labor strikes or other events that prevent the organization from meeting the specified capacity volumes

6.4 Work Environment

6.4.2S Cleanliness of Premises

This requirement includes the dunnage used to transport the product including returnable dunnage.

7. Product Realization

7.1S Planning of Product Realization

The AIAG Advanced Product Quality Planning and Control Plan reference manual shall be used as a guide to develop and report progress on new programs. Reporting of APQP status shall utilize the forms and process flows provided by the responsible ASDE (SPE in Europe) and available at visteonsupplier.com.

7.2 Customer-related Processes Registration to ISO 14001 is required by December 31, 2004. End of life vehicle (ELV) reporting requirements are required as follows: Report prior to PPAP of the product and confirm completion for PPAP. Please contact the World Wide Visteon IMDS Manager (313-755-7384) for specific reporting requirements and see visteonsupplier.com.

Printed Copies of this Page 6 of 20 December 17, 2003 Document are Uncontrolled 7.2.1.1S Customer-designated Special Characteristics

OEMs develop symbols for the definition of critical characteristics (safety sensitive) and significant characteristics (performance sensitive). Visteon has defined specific symbols for use on control plans, drawings or FMEAs and are documented in the Visteon Special Characteristics Identification Process at visteonsupplier.com. Some OEM programs may dictate the use of the OEM symbols. If so, the ASDE/SPE will notify the supplier of those requirements.

7.2.2.1S Review of Requirements Related to Product- Supplemental

Waiving of the requirement to review product requirements shall be obtained from the Commodity Buyer.

7.2.2.2S Organization Manufacturing Feasibility

Manufacturing feasibility reviews (AIAG, Advanced Product Quality Planning and Control Plan, Appendix E) shall include supplier and customer organizations as appropriate. Suppliers shall manage short-term product volume changes of less than 20%. The organization shall notify Visteon for volume changes of a more permanent nature, identify any capacity constraints and provide an evaluation of any risks to the customer.

7.2.3.1S Customer Communication-Supplemental

During the request for quote response, the organization shall verify the data exchange formats with Visteon. The Buyer will assist in the coordination of the definition of these requirements.

7.3 Design and Development

7.3.1.1S Multidisciplinary Approach

New Model Program Requirements

Personnel

The organization shall ensure that new Visteon programs are properly managed and resourced within the organization. A supplier Program Manager shall be appointed for each Visteon Program and an Organization Chart of their support team provided.

Advanced Product Quality Planning

The supplier shall carry out APQP on all new Visteon components. The Program Manager or their designee will lead the APQP Process for any new Visteon component and shall provide monthly updates of the APQP Status Report (and any supporting notes) to the Visteon Program Buyer. If a component has been designated as High Impact, the supplier shall also provide monthly updates to the Visteon Supplier Program Engineer (in Europe), Advance Supplier Development Engineer (at all other Visteon locations) or other designated person. All members of the organization’s support team shall be suitably trained in the particular APQP Process as defined by Visteon. An alternative quality planning process may be specified when required by Visteon's Customer Input Requirements.

Launch Readiness/Safe Launch Reviews

The Program Manager or their designate shall ensure that the Visteon designated LRR/Safe Launch Process is carried out on any new Visteon component that has been identified as high impact. All data integral to this process such as Overall Equipment Effectiveness (OEE) and compliance to MMOG shall be made available to Visteon for confidential review. Visteon shall specify the type of Review Process to be followed and the reporting frequency.

Printed Copies of this Page 7 of 20 December 17, 2003 Document are Uncontrolled PSW Submission

PSW submissions shall follow the AIAG PPAP manual, but the warrant shall be the Visteon form available at visteonsupplier.com. The organization’s PPAP Submission Level will be defined by Visteon in the APQP Process. This is normally set at the level identified in Report card, but may differ according to program or other requirements. An alternative approval process may be specified when required by Visteon's Customer Input Requirements.

Launch Support

As agreed in the supplier's Safe Launch Plan, appropriate supplier personnel will either be on-site at Visteon or on 24 hr call to support a Visteon plant's needs during a Launch Phase. Visteon will define the duration of this Phase.

Launch Concerns

The Supplier shall respond to Launch concerns in accordance with the 'Visteon Safe and Flawless Launch Expectations' available at visteonsupplier.com

FMEA and Control Plan Approvals

Design engineering and SDE/ASDE/SPE approval is required for FMEAs and control plans for designated safety or regulatory items regardless of the site's PPAP level. Approval may take the form of PSW approval by SDE/ASDE/SPE and the responsible design engineer, but the preferred method is to sign the documents. Approval of changes to these documents after initial acceptance is also required.

Visteon reserves the right to require approval of FMEA and/or control plans for any Visteon purchased part from any supplier organization.

The organization shall prepare documented process FMEAs for all part numbers supplied to Visteon. Where the organization is responsible for design, the organization shall prepare a documented design FMEAs for all parts it designs for Visteon. A formally documented design FMEA may be waived by the SDE/ASDE/SPE manager for parts that are commercial off the shelf items or which use computer aided design checks to check design integrity (e.g., design rule and manufacturability checks).

FMEAs may be written for families of parts where batch processes and common tooling are used. Families shall be clearly defined and have a full part number listing of the family. Visteon engineering shall approve the family designations.

Upon request by Visteon, the organization shall provide a copy of the FMEA documents for review. If the document is considered proprietary, the organization will provide qualified technical support and bring the FMEA to the requestor for review without retention of copies.

FMEAs shall be prepared using the AIAG Potential Failure Mode and Effects Analysis reference manual as a guide.

Control Plans

All Visteon parts shall have Control Plans. Family control plans may be used for parts with common processes. The family shall be clearly defined on the control plan so that applicability is defined. The AIAG Advanced Product Quality Planning and Control Plan reference manual shall be used as a guide for the development and format of Control Plans.

Design and process controls shall focus on prevention rather than detection and correction. Special attention shall be placed on the identification of input control characteristics rather than on post-processing inspection and containment. Repaired and/or reworked product shall be re-inspected to all control plan requirements and documented procedures.

Printed Copies of this Page 8 of 20 December 17, 2003 Document are Uncontrolled Control Plans for Control Items (Critical Characteristics) Fasteners

Heat-treated parts will conform to the reference standard in the drawing notes. Traceability shall be maintained for lot control to the chemical composition and/or quenched hardness testing. External laboratories used to test material shall conform to the Laboratory Requirements of 7.6.3.2S.

Changes to control plans for control items require the approval of the ASDE/SDE/SPE as appropriate and Engineering. Before implementation, the organization shall modify the control plans and submit them to ASDE/SDE/SPE and Engineering for signatures.

7.3.2.3S Special Characteristics

Many of the OEMs use special symbols to highlight special characteristics on control plans and drawings. Visteon uses the symbol set defined in the Visteon Special Characteristics Identification Process. If a Visteon customer requires the use of their own special symbol set, the Advanced Supplier Development Engineer shall notify the supplier during APQP development of the product.

If the customer does not designate any special characteristics, the organization shall identify appropriate product and process special characteristics consistent with Visteon's Special Characteristics Identification Process. These special characteristics shall be used and designated on the control plans. The Visteon Special Characteristics Identification Process can be found at visteonsupplier.com.

7.3.4S Design and Development Review

The organization shall use a Design and Development process similar to the Visteon VPDS process when reviewing product design and development stages. These reviews shall also include the APQP tracking documents available from visteonsupplier.com.

NOTE: The Visteon Product Development System (VPDS) is a phased approach to product development that includes several gates to establish readiness to move to the next phase. Organization involvement is typically monitored through the APQP process, but may include design review participation.

7.3.5S Design and Development Verification

The organization shall perform design verification to show conformance to Visteon Design Validation Plan and Report (DVPR) requirements. At component levels, the organization will develop a qualification plan with the design engineering activity at Visteon. Verification methods shall be recorded with the test results. Go/No Go results shall be avoided and where applicable the actual value for variable data will be recorded. Requirements documents are available from Engineering or Purchasing.

7.3.6.2S Prototype Program

The organization shall be responsible for the quality of the parts it produces and subcontracted services including subcontractors directed by Visteon. Prototype requirements shall be documented through the Visteon Program Purchasing Buyer.

The organization shall request confirmation of the need for prototype control plans from Visteon SDE/ASDE/SPE.

NOTE: Prototype control plans are normally required on High Impact parts during program development. Prototype Documentation Guidelines can be found at visteonsupplier.com.

Printed Copies of this Page 9 of 20 December 17, 2003 Document are Uncontrolled 7.3.6.3S Product Approval Process

Production Part Approval Process The organization shall comply with the AIAG Production Part Approval Process (PPAP) manual. Subcontractors are to meet all requirements of PPAP. For example, suppliers of subcomponents will use PPAP and the organization shall PPAP the final assembly. Copies of organization or subcontractor PPAPs shall be made available to Visteon upon request.

All proposed design, process, site, and sub-supplier changes, including supplier proprietary designs, shall be submitted to Visteon for approval prior to implementation. The Visteon Supplier Change Request (SCR) procedure shall be utilized for all proposed organization changes. The Visteon SCR form is an electronic document used to present the details of the requested change to the appropriate Visteon personnel. The Visteon SCR form is available at visteonsupplier.com.

NOTE: When PPAP submission is required, the Visteon SCR form is used only to approve the organization’s plan to implement the change. The organization cannot ship parts changed per the SCR until the PPAP is approved and part Functional Approval is either granted (using the Visteon FCR form) or waived by the appropriate using Visteon manufacturing plant(s). The initial shipment of a changed part shall have the packaging marked to identify it to the change. Contact the using Visteon plant for acceptable marking requirements.

NOTE: When a PPAP identifies that a part does not fully conform to all specifications, Visteon Product Development Engineering may raise an alert to authorize the organization to ship this product. The issue that required the alert must be corrected within 90 days or a second alert must be raised.

PPAP packages shall be submitted to the PPAP level designated for the organization's site code on Visteon’s Report Card system. Visteon reserves the right to change the PPAP submission level on individual submittals. An alternate approval process may be specified when required by Visteon’s Customer Input Requirements. When a Visteon plant does not use Report Card, product approval and validation may follow local procedures. The organization shall retain the original PPAP package and samples and make them readily (less than 24 hours after request) available to Visteon or a third party upon request. If an alternate process was used, that documentation shall be readily available.

PPAP documents shall be reviewed yearly for current applicability and updated as necessary. This review shall include, but not be limited to: reliability monitors, capability data, control charts, lay out inspection data, internal yield data, customer failure rates, warranty, conformance to engineering drawings. PSWs shall be re-issued after successful completion of the review and the PPAP package updated as necessary.

When specified in the APQP process, run at rate shall be performed as a production capacity verification.

NOTE: Commodity or batch based products may demonstrate run at rate by a process analysis to determine constraints and showing sufficient capacity is in place to support the product release rates.

7.4 Purchasing

7.4.1.1S Regulatory conformity

See 7.2 for End of Life Vehicle (ELV) reporting requirements for prohibited and reportable substances.

Printed Copies of this Page 10 of 20 December 17, 2003 Document are Uncontrolled 7.4.1.2S Supplier Quality Management

a. The organization is responsible for ensuring that the quality and conformance of their sub-contracted material meets Visteon's requirements. Evidence of conformance of the organization’s sub-contracted material shall be made available at Visteon's request unless it forms a direct part of the supplier's PPAP submission, in which case it will form part of that submission. b. Visteon reserves the right to audit the organization’s sub-contractor in the presence of the organization's representative. Coordination of the audit will be through the organization's representative. c. The organization shall ensure product delivered to Visteon is traceable according to the requirements of ISO/TS16949 and any program specific requirements. d. The organization shall cascade the intent of these customer specific requirements to their subcontractors.

Visteon satisfies the goal of organization conformity to ISO/TS16949: 2002 as follows:

a. The preferred method is to be registered to ISO/TS 16949: 2002 and including this customer specific document. b. As a minimum, the organization shipping to Visteon must be registered to ISO9001: 2000. (Suppliers must also prove their ability to conduct APQP and PPAP). c. Through 2006, an acceptable alternative method is to be registered to QS-9000 or VDA 6.1. NOTE: In 2006 QS-9000 will be obsolete. d. With each of the above, semiconductor organizations shall comply with the requirements of the ISO/ TS 16949:2002 Semiconductor Customer Specific Requirements The document shall be used in registrations to ISO/ TS 16949:2002. For QS-9000 registrations, the QS-9000 Semiconductor Supplement shall be used.

The registration selected by the organization will influence the quality rating and potentially the sourcing. The preferred registration is ISO/TS 16949:2002 with this customer specific document (and the semiconductor requirements). This strategy will provide the most quality rating points for the organization in the Visteon rating system.

All organizations supplying production material to Visteon shall be registered to ISO/TS 16949:2002 by July 1, 2005. See Annex B for further explanation for registration timing requirements. See Annex D for Full Service Provider requirements.

Those organizations not currently registered shall have a credible work plan to attain registration to ISO/TS 16949:2002 by July 1, 2005.

NOTE: Third party certification does not relieve the organization of the full responsibility of the quality of the product supplied.

7.4.3.1S Incoming Product Quality

The organization shall have incoming inspection of subcontractor material consistent with the risk and quality impact of the subcontractor. These inspections shall include variables data where appropriate and be used as a key indicator of subcontractor quality management. When sampling plans are used for lot acceptance, sample sizes shall be consistent with 90% confidence and shall use zero defects as the acceptance criteria.

7.4.3.2S Supplier Monitoring

Visteon customers expect 100% on time delivery/up to schedule. In support of this, Visteon require 100% on time delivery/up to schedule from our suppliers. Delivery metrics shall be included in QOS reviews and shall use 100% on time/up to schedule as a goal. The quality roadmap process of Trend, Pareto, Paynter charts shall be used to track and resolve issues when on time/up to schedule delivery goals are not attained. Delivery Performance is monitored by the Visteon Report Card (http://www.reportcard.visteonsupplier.com).

Printed Copies of this Page 11 of 20 December 17, 2003 Document are Uncontrolled 7.5 Production and Service Provision

7.5.1.1S Control Plans

The Advanced Product Quality Planning and Control Plan reference manual, available from AIAG, shall be used as a guide in developing and maintaining control plans. A change history shall be maintained as part of the control plan to document implementation of changes.

a. The supplier shall follow the control plan submitted in the PPAP (except for internally or externally approved changes). Any proposed changes to Special Characteristics (defined by the Visteon Special Characteristics Identification Process) shall be approved by the Visteon Supplier Change Request Process. b. If any Significant or Critical Characteristics have been identified, the supplier shall ensure ongoing process capability as defined in the AIAG PPAP and SPC manuals. Records of this data shall be maintained according to the requirements of ISO/TS 16949:2002 for a minimum period of 1 year. They shall also be made available for review by Visteon on request. c. The organization shall identify ongoing process improvements, for example through process and product audits to ensure ongoing conformance to Visteon requirements.

The organization shall carry out an annual layout for each component. This shall be made available to Visteon upon request. The annual layout data shall be included in the PPAP records (see 7.3.6.3S).

7.5.1.2S Work Instructions

Operators shall use the most current work instructions or those consistent with the revision level of the product.

7.5.1.3S Verification of Job Set-ups

Set-up verification requirements include manual tooling exchanges. Records of all job set-up verifications shall be maintained for one year.

7.5.1.4 S Preventive and Predictive Maintenance

The organization shall have a documented system for preventive maintenance. This shall include a timely review of planned maintenance activities and a documented action plan to address any backlog. The Management Review process shall include a review of key metrics such as OEE, MTBF, on-time maintenance, and others as appropriate to determine the effectiveness of the program. Wherever possible, the organization shall use predictive maintenance techniques. When used, the techniques shall be based on statistical techniques and consider the cost of quality prior to implementation. Examples of predictive maintenance include the replacement of saw blades after a number of cuts based on the edge chipping of the product or the replacement of a mold after a predetermined number of shots based on known wear on the tool.

7.5.5.1S Storage and Inventory

The organization shall use the AIAG MMOG process as a guide to maintain an orderly delivery system. The Visteon Report Card system provides a delivery rating system. The organization shall utilize the Report Card delivery rating system to monitor performance. Delivery ratings from customer sites shall be used as a metric in the Management Review process. Adverse trends and performance shall require corrective action via the Visteon Global 8-D process.

NOTE: RED performance to delivery metrics places the organization on the Visteon no-quote list and will impact the potential for future and current business. a. The organization shall agree on a packaging specification with the appropriate plant packaging engineer. It is the responsibility of the organization to ensure that material is delivered to the Visteon customer plant in accordance with the packaging specification approved by Visteon. The general specifications can be found on the Visteon supplier Web site visteonsupplier.com.

Printed Copies of this Page 12 of 20 December 17, 2003 Document are Uncontrolled b. Each package should be labeled according to Visteon labeling standards. These can be found on the Visteon supplier Website visteonsupplier.com. If delivery dates are not specified in a Purchase Order, the organizations shall ship only as authorized in shipment releases issued to the organization by Visteon.

7.6 Control of Monitoring and Measuring Devices

7.6.1S Measurement System Analysis

All gauges used for checking a Special Characteristic (significant, critical or organization identified) shall have a gauge study performed in accordance with the methods described in the latest AIAG Measurement Systems Analysis Manual (MSA) to determine measurement system capability. Gauges not meeting the specification in the MSA must have a containment plan (such as 100% inspection, gauge improvement, or other means) that is approved by Visteon Supplier Development or Advanced Program Development Engineering (SPE in Europe). Gauge study records shall be maintained for the time that the part is active for production and service requirements plus ten calendar years and repeated at least yearly for their respective products unless otherwise specified by Visteon.

7.6.3.2S External Laboratory

Commercial/independent laboratory facilities used by the organization for product testing, product validation or other acceptance processes shall be registered to ISO/IEC 17025 and have a scope and capability for the laboratory consistent with the test to be performed.

8. Measurement, Analysis and Improvement

8.1.1S Identification of Statistical Tools

The organization shall use the latest edition of AIAG SPC for manufacturing process controls and AIAG MSA for measurement system equipment management. When the organization is registered to VDA 6.1, the equivalent VDA documents may be substituted.

8.2.1.1S Customer Satisfaction -Supplemental

The Visteon Supplier Report Card shows the performance of each organization manufacturing location through the web at the Report Card / Scorecard login page. The organization shall register to access their Report Card at http://www.reportcard.visteonsupplier.com. The Report Card generates a Green, Yellow or Red Quality Rating. Maintaining a good quality rating is integral to be considered for future business as part of the commodity strategy. A RED quality rating will mean that the organization will be included on the Visteon No-Quote list. The organization shall commit to reviewing weekly and maintaining their Report Card entry. Where the organization shows consistent underperformance, it is expected that they will initiate the Quality Improvement "Roadmap" process to facilitate improvements. This can be found on the Visteon Supplier Website visteonsupplier.com. Where an organization delivers to a Visteon plant that does not use the Visteon Report Card system, local procedures and reporting shall apply. Report Card performance shall be included in the regular management review.

The Third Party Controlled Shipping or the Third Party Supplier Improvement process will be considered by ASDE, SPE and SDE management when quality improvement actions enacted by the organization do not stop the flow of non-conforming material to either Visteon plants or their Customers. The Third Party Controlled Shipping or Third Party Supplier Improvement process will be initiated based on, but not limited to, any of the following criteria being confirmed: a. Part quality non-conformance issue resulting in production line disruption or stop shipment at a Visteon plant or at a customer plant. b. Part quality non-conformance issue requiring 3rd party containment to assure continuous supply of conforming parts. c. Reoccurring Quality Rejection (QR) issues following ineffective corrective action. d. Quality issues impacting new product launches at either Visteon plants or at our Customer's.

Printed Copies of this Page 13 of 20 December 17, 2003 Document are Uncontrolled NOTE: If the organization is placed under either the Third Party Controlled Shipping or the Third Party Supplier Improvement process by the ASDE, SPE or SDE management groups, the organization will be required to pay the all costs associated with the third party process. When one or more of these programs are implemented, the organization shall notify their registrar. In cases of breach of trust or continued chronic quality spills, Visteon may take action to notify the certification/registration body and/or the accrediting body to inform them of the systemic issues.

8.2.2S Internal Audit

Internal auditors shall have completed an internal auditing training class. The organization should have at least one lead auditor who has passed an accredited lead auditor class. When the organization does not have a lead auditor meeting these requirements a contracted third party with the above qualifications shall perform the audits. Audit records shall be retained for a minimum of three calendar years.

For larger organizations, any nonconformance found in registrar audits and internal audits shall be summarized and communicated to the organization site quality leads. The local management representative shall evaluate the need to implement a similar corrective action at the respective site.

8.2.4S Monitoring and Measurement of Product

Engineering Specification (ES) Test Performance Requirements

In-process testing to the ES is typically specified through an IP test plan/control plan or in the ES. The organization shall develop a plan to meet those requirements and submit them for approval as part of the PPAP package. Reaction plans to failures shall be included in the IP test plan.

Surrogate data shall not be used unless it can demonstrate that the products are a “family” that use the same process equipment and process specifications. Clarification or approval of the use of surrogate/family data shall be through the appropriate Visteon SDE/ASDE/SPE.

8.2.4.1S Layout Inspection and Functional Testing

A layout inspection and functional verification (to all engineering material and performance requirements as specified in the design record) shall be performed annually. As part of this process, the organization will update the PPAP document files including the PSW.

Surrogate or “family” may be used if developed within the prior twelve months and if it meets the requirements of 8.2.4S. Visteon SDE of record on Report Card will approve the use of surrogate/family data by signature of the PSW.

8.2.4.2S Appearance Items

Appearance items will be designated on the engineering drawing. For specific direction on appearance item requirements, contact the respective Visteon Product Development group.

8.3S Control of Nonconforming Product

The organization shall have processes and systems in place to prevent shipment of non-conforming material to any Visteon facility or to Visteon customer locations. Visteon requires the organization to embrace the "Zero Defect" philosophy. The organization shall ensure that ongoing product quality shall meet the commodity expectations and continually improve towards zero defect expectations. Management of quality “spills” and control of nonconforming material is as follows:

Printed Copies of this Page 14 of 20 December 17, 2003 Document are Uncontrolled Identified by the organization: a. If there are any instances of non-conforming product in the production of Visteon material, the supplier shall react according to the following requirements: i. The organization shall ensure that adequate containment is in place to prevent receipt by Visteon. The organization shall also ensure that the root cause is investigated and corrective actions are implemented to prevent recurrence. ii. If there is any opportunity that the non-conforming product has escaped the organization's process, the organization shall notify Visteon at once. The organization shall immediately take all reasonable measures, with the assistance of Visteon if necessary, to ensure that the product is intercepted and quarantined.

b. If Visteon has already received or used the suspect product: i. The organization shall implement immediate containment for the concern at the supplier's location and agree the terms for immediate containment at the effected Visteon plant and evaluate the risk of any material contained in the supply chain. The organization shall open a Global 8D investigation and report D0 "Emergency Response Actions" immediately and then update down to D3 "Interim Containment" within 24 hours. ii. The supplier shall organize their own representatives or agree with the effected plant how to continue containment and sorting at the Visteon facility within 12 hours. iii. The organization, in consultation with the Visteon Supply Chain Management department shall immediately replace the non-conforming stock if required. iv. Completion of the investigation shall be timely and agreed with Visteon.

Identified by Visteon: a. If non-conforming product has been identified by Visteon or it's customer, the organization shall react according to the following requirements: i. The organization shall implement immediate containment for the concern at the supplier's location and agree the terms for immediate containment at the effected Visteon plant. ii. The organization shall report the mechanism for ongoing containment and/or sorting at the Visteon facility within 12 hours. iii. The organization, in consultation with the Visteon Supply Chain Management department shall immediately replace the non-conforming stock if required. iv. The organization shall open a Global 8D investigation into the issue and report down to D3 "Interim Containment" within 24 hours. v. Completion of the investigation shall be timely and agreed upon with Visteon.

b. Confirmation of corrective actions: i. Visteon normally requires 5 consecutive batches of product (or 5000 pieces if in the launch phase) free from the non-conformity before any exceptional containment measures at Visteon's receiving area will be removed. The duration of the containment measures shall be at Visteon's discretion given the due weight of the concern. ii. If the level of containment is considered inadequate and the corrective actions are ineffective a reduction will be made in the organization’s Report Card rating by using the Significant Quality Event and 3rd party Controlled Shipping may be invoked.

Any non-conforming product or process output shall be analyzed using the Visteon G8-D methodology to ensure root cause corrective action and problem prevention. The organization shall respond to quality rejects (QRs) within 24 hours with containment (D3) and with root cause (D4) targeted within 4 days. A corrective action plan shall be in place within 8 days. Containments shall not be removed until internal data shows the effective implementation of corrective action.

G8-Ds shall be submitted electronically to the plant issuing the QR and to the SDE of record on Report Card. When a QR is issued for a lot quantity, the organization will respond with an RMA and replenishment of unaffected product within 48 hours. Every effort shall be made to assure the plant is not using non-conforming product.

Printed Copies of this Page 15 of 20 December 17, 2003 Document are Uncontrolled 8.3.4S Customer Waiver

Normally, Visteon uses the Supplier Change Request (SCR) process (formerly the SREA as noted in the PPAP manual). For changes to process, product or for non-conforming product an SCR is to be submitted following guidelines available at visteonsupplier.com. The organization is not approved to ship non-conforming material until notification from the SCR process, which may include approval by the using plant to proceed with shipment of the non-conforming or changed product.

Printed Copies of this Page 16 of 20 December 17, 2003 Document are Uncontrolled Annex A BOS/QOS Suggested Metrics

The BOS/QOS should be developed to provide a link to Customer Expectations through setting objectives that are measures of consensus customer expectations. These metrics should be mapped to known customer expectations such as this document. The below should be used as a guideline in development of a BOS/QOS.

The BOS/QOS should encompass the entire business operations. It should include internal indicators, external indicators, field indicators and advanced quality/design. A sample structure is listed below. For metrics adverse to goal, the supplier shall have an improvement work plan.

External Customer Focus Quality rating Delivery rating QRs per month PPM 8-D closure status 8-D backlog and time to close (aging) Warranty R/1000 trends On time PPAP Premium freight cost Status of open customer concerns/QRs Others as necessary

Internal Customer Focus Process Capability (Cpk/Cp) Process Yields (First Time Thru) Cumulative Process Scrap Overall Equipment Efficiency Safety (lost days for accidents) Internal audit actions open Customer committed corrective actions open Absenteeism Training status Housekeeping audit results Gage studies done to schedule Others as necessary

Preventive Focus Subcontractor evaluation (capability) Subcontractor ratings, actions Advanced Quality Planning, LRR review summary Delivery self assessment, improvement plan FMEA corrective action tracking New equipment or changes first time success On time delivery of samples PV testing complete on time with success Others as necessary

Printed Copies of this Page 17 of 20 December 17, 2003 Document are Uncontrolled Annex B Second Party Specific Items

This Annex contains items that are specifically for Visteon use with its suppliers. Third parties should not audit to this document Annex.

ISO/TS 16949:2002 Registration Requirement

Organizations which do not hold third party certification to ISO/TS 16949:2002 at the time of sourcing may only be sourced if the organization agrees with their assigned Visteon Supplier Development Engineer an implementation plan to achieve ISO/TS 16949:2002 within 12 months after sourcing. In addition, a Visteon Supplier Assessment may need to be performed by the assigned Supplier Development Engineer. In this case, the organization will be notified during the negotiations. Any corrective actions that arise from that assessment shall be reviewed and timing agreed by the supplier's assigned Visteon Supplier Development Engineer.

If the supplier's manufacturing location has been determined to be a new manufacturing site by Visteon Supplier Development, then a Visteon New Supplier Assessment shall be carried out and the supplier shall plan to achieve third party ISO/TS 16949:2002 certification within 24 months of sourcing.

NOTE: Failure to meet the timing may result in no additional sourcing and desourcing of existing business.

Warranty In addition to the Warranty requirements identified in the General Purchasing Terms and Conditions, the organization shall be responsible for the quality of their products for the same period of warranty that Visteon is responsible to their customers. The organization should also subscribe to "Product Warranty Insurance" to cover any warranty costs should they occur after shipment.

NOTE: In the European Union, warranty for vehicles is now mandated at 36 months.

Identification of reasonable costs: Visteon Supplier Chargeback Process for Quality Incidents documents the Visteon process for chargeback of reasonable costs. Reasonable costs are to be charged back to the organization as a direct result of organization responsible concerns. Some examples of chargeable issues follow below, but are not exclusively limited to these: a. If suitable response and agreement is not secured within 12 hours, Visteon may return by expedited freight, at the supplier's expense, non-conforming product. This is to facilitate the supplier's containment and investigation activities. b. All non-conforming product identified as a result of the concern and remedial actions taken at the Visteon plant shall be returned to or disposed of by the organization at their expense. c. Any non-conforming material remaining at the Visteon location after a reasonable timescale identified by that location, will be disposed of at the organization’s expense after suitable prior notification. d. The cost of disruption to Visteon's production (e.g. immediate sorting operations until the organization has responded, machine breakdown caused by non-conformance, inefficiency to production, excess handling, recall of product supplied to Visteon's customer, expedited freight charges attributable to the concern, etc). e. The cost of disruption to Visteon's customer as a direct result of the supplier responsible concern (e.g. loss of production, expedited freight charges, recall campaigns, etc).

The administrative costs incurred by Visteon dealing with the supplier responsible concerns will be systematically charged back per the Visteon Supplier Chargeback Process available at visteonsupplier.com.

Delivery Conditions a. Visteon is not obligated to accept from the supplier any over shipments, early deliveries, late deliveries and partial deliveries. These may be returned to the supplier at the supplier's risk and expense for all excess packing, handling, sorting, and transportation costs. b. If delivery is not made on a timely basis, Visteon may require expedited routing at the supplier’s expense. Visteon reserves the right to contact the manufacturer directly to resolve delivery issues. All reasonable excess costs resulting from non-timely delivery will be borne by the supplier.

Printed Copies of this Page 18 of 20 December 17, 2003 Document are Uncontrolled Annex C Hardware Suppliers

Scope: The following requirements are to be used in addition to the requirements set forth in the Visteon Corporation Customer Specific Requirements For Use With ISO.TS 16949:2002 and the requirements set forth in ISO/TS 16949:2002.

1. Commodity definition Hardware includes commodities such as screws, nuts, bolts, clips, washers, etc, and commonly referred to as "fasteners".

2. Manufactured Parts To be supplied in accordance with this document.

3. Sub-Contracted (When the fasteners are not manufactured by the supplier) In addition paragraph 7.4.1 a. The supply chain shall be no greater than 2 tiers. b. Where the supply chain is greater than 1 tier, the supplier should ensure that there is a direct communication link between the supplier (Tier 1) and the manufacturer (Tier 2). c. In the event of a non-conformance, it is the responsibility of the Tier 1supplier to ensure Visteon is protected as detailed in paragraph 8.3 and to ensure timely resolution, as stated by Visteon, by the manufacturer. d. In the event of the Tier 1 supplier fails with respect to C, above. Visteon reserves the right to contact the Tier 2 manufacturer direct and to take necessary actions to resolve the issues. All reasonable costs resulting from these actions will be borne by the Tier 1 supplier. e. Tier 2 Manufacturing sites must be capable of supplying product validation information in compliance to ISO/TS 16949:2002.

Printed Copies of this Page 19 of 20 December 17, 2003 Document are Uncontrolled Annex D Full Service Providers

Scope:

1. Commodity definition Full service Providers are commodities that are not manufactured by a Tier 1 supplier, but sub-contracted to a Tier 2 supplier and this supplier is controlled by the Tier 1 supplier for all aspects of Quality, Delivery, Commercial & Technical

2. Manufactured Parts To be supplied in accordance with this document.

3. Sub-Contracted (When the products are not manufactured by the supplier) In addition to paragraph 7.4.1 a. The supply chain shall be no greater than 2 tiers. b. The supplier is expected to have a supplier performance engineering function similar to that of Visteon. c. When the supply chain is greater than 1 tier, the supplier should ensure that there is a direct communication link between the supplier (Tier 1) and the manufacturer (Tier 2). d. In the event of a non-conformance, it is the responsibility of the Tier 1supplier to ensure Visteon is protected as detailed in paragraph 8.3.and to ensure timely resolution, as stated by Visteon, by the manufacturer. e. In the event of the Tier 1 supplier failing with respect to C: Visteon reserves the right to contact the Tier 2 manufacturer directly and to take necessary actions to resolve the issues. All reasonable costs resulting from these actions will be borne by the Tier 1 supplier. f. Tier 2 Manufacturing sites must be capable of supplying product validation information in compliance to ISO/TS 16949:2002.

Printed Copies of this Page 20 of 20 December 17, 2003 Document are Uncontrolled