Customer-Specific Requirements Mercedes Benz Do Brasil Ltda

Mercedes-Benz do Brasil Ltda. Uma Empresa Daimler

Customer-Specific Requirements Mercedes Benz do Brasil Ltda.

Requirements related to the items of ISO TS 16949:2009 To be used along with ISO TS 16949 (edition 2009 /06 /15)

Change Status

Edition Date Notes

01 May/2004 Developing specific requirement for DaimlerChrysler do Brasil

02 July / 2006 Updating specific requirements Updating the following elements: 2, 3.6, 4.2.3.1, 7.1.1, 7.1.4, 7.3.6.3, 03 August/2007 8.2.1, 8.2.3.1, Changingnote 1 and company including name note 2from DaimlerChrysler do Brasil to Mercedes 04 February/2008 Benz do Brasil and acronym DCBr to MBBras Updating the following elements: 2, 3.6, 5.1.1, 7.1.1, 7.2.1.1, 05 November/2009 7.3,2,3, 7.3.6.3, Updated7.4.1.2, 7.5.1.1,elements: 7.6.3.2, 2, 3.5, 8.2.1,3.6, 4.2.3.1, 8.5.2 and7.1.1, including 7.1.4, 7.2.1.1, note 27.3.1, 06 November/2010 7.3.6.3, 7.5.4.1, Updated8.2.1, 8.2.3.1, elements: nota 1 3.6,e nota 4.2.4, 2 5.1.1, 5.5.1.1, 7.4.1.2, 7.5.1.1., 07 April/ 2012 7.6.3.2, 8.2.1. e 8.5.2.1, novo 8.2.2.2 08 February / 2014 Updated requirements: 4.2.4, 4.2.4.1, 7.3.2.3, 7.4.1.2, 7.6.1, 7.6.3.2

09 March / 2015 Updated requirements: 3.6, 7.3.1, 8.2.1, 8.5.2, Note: 1.

10 March/ 2016 Updated requirements: : 7.2.2, 7.3.6.3, 7.6.1, 7.6.3.2 e 8.2.4.1

1. General ISO/TS 16949 and this document are the key to define the quality system requirements for Mercedes Benz do Brasil suppliers. These requirements will be included in any scope to record/certify for ISO/TS16949 issued by a known IATF. It will be acknowledged as satisfactory in MBBras supplier criteria for the purpose of third party record/certification. It is expected that the supplier is aware of MBBras functional departments requirements (Development, Purchasing, Quality Management, Logistics and Production) in any price quote request and communication with the purpose of informing its organization and suppliers about such requirements and assess their implementation, including assessing performance and efficacy.

Mercedes-Benz do Brasil Ltda.

Av. Alfred Jurzykowski, 562 São Bernardo do Campo - SP 09680-900 Fone: +55 11 4173-6611 Mercedes-Benz – Marca registrada da Daimler, Stuttgart, Alemanha Fax: +55 11 4173-7667

All ISO/TS 16949 requirements and specific Mercedes Benz do Brasil requirements need to be known by the organization and documented in the supplier quality system. Specific Mercedes Benz do Brasil customer requirements will apply exclusively to all Mercedes Benz do Brasil suppliers, and if such supplier has another Daimler group site as a customer, the supplier will also meet this site specific requirements.

2. Normative reference MBST - Mercedes Benz Special Terms – current edition available on site www.mercedes- benz.com.br Purchasing Conditions MBBras – current edition DBL(s) or MBB-F(s) specification standards and material trials; Book of Requirements; VDA Standards – 1, 2, 4.3 e 6.3 – listed in section 4 requirements; Note: VDA volume copies are available on IQA - www.iqa.org.br

3. Terms and definitions If the terminology in this document does not match ISO/TS 16949, this document will prevail. Otherwise ISO/TS 16949 definitions will apply.

3.1 Terms and definitions for the automotive industry

3.1.1 Active part An active part is a part that is currently being supplied to an original equipment customer or provided services customer. Tooling of the active parts of MBBras property, when ending the useful life or they no longer serve to the end they were built for in the moment they were given in “loan for use” (comodato), the tooling shall be returned to MBBras. For tooling parts that do not belong to the customer or for situations when multiple parts are manufactured with the same tooling, a written confirmation is required from the customer to discontinue the part.

3.2 Spare Parts (Aftermarket) Replacement parts are parts that MBBras provides to their dealers and/or service stations that are designed for vehicle maintenance or repair purposes and components produced by the Daimler group companies. Replacement parts may or may not be produced according to the original equipment specifications.

3.3 Customer

For the purpose of ISO/TS 16949, “customer’ in this document means Mercedes Benz Brasil for suppliers that seek third-party certification for ISO/TS 16949.

3.4 Mercedes Benz do Brasil Mercedes Benz do Brasil includes all business units with manufacturing sites in Brazil for commercial vehicles, family cars, components and sales of replacement parts.

3.5 Initial Process Studies Initial Process Studies (Pp / Ppk) are short-term studies administered to gather, as early as possible, performance information of a new or revised process related to internal needs or customer requirements and specifications. In many cases, initial process studies should be administered in several points throughout the assessment of new processes (for instance, the equipment or tooling at the sub supplier plant after installation at the supplier plant). This study needs to be based on variable data gathered with the use of control letters. See Manual AIAG CEP (Statistical Process Control), VDA. 2 (Product and Process Approval) e MBST 13 (Proof Process Capacity).

3.6 Quality and Supplier Performance Quality Indexes  São Bernardo do Campo Site = EBSC (External Balanced Score Card) available on the portal Covisint  Campinas Site = EBSC (External Balanced Score Card) available on the portal Covisint  Juiz de Fora Site = EBSC (External Balanced Score Card) available on the portal Covisint

3.7 Suppliers Suppliers are defined as manufacturers of:  Raw materials,  Production parts or services and spare parts  Providers of thermal treatment services, surface treatment, painting, packaging of parts and other finish services directly for Mercedes Benz do Brasil.

3.8 Subcontractors or Sub suppliers Subcontractors or sub suppliers are defined as a supplier of raw materials, parts, production services, thermal treatment services, surface treatment, painting, packaging of parts and other finish services for a Mercedes Benz do Brasil supplier.

4. Quality Management System

4.2.3.1 Engineering Specifications

Every specification change will be previously notified to the customer to start a new approval process for the product and/or process with the customer approval, according to the requirements described in VDA.2, MBST 13 (Reasons for submission EMPB and notification areas MBBras) and Purchase Orders. Every product and/or process change must be recorded in the part’s curriculum.

4.2.4 Records control To define and control documents and records, VDA 1 standard directive needs to be considered. Traceability needs to be ensured for items with special characteristics DS/DZ and for items that are defined by the quality area representative for MBBras suppliers The identification the product with special characteristic DS/DZ must ensure traceability of the control records related the special characteristic DS/DZ

4.2.4.1 Records retention Documents and records of the quality associated with the special characteristics DS/DZ need be kept on file for a minimum period of 15 years Sample process documentation considers MBST 13 (aspect 15: Storage periods of the sample process documentation EMPB/PPF of items with Safety Characteristic DS/DZ)

5.1.1 Process efficiency High management critical analyses also need to consider results from audits carried out by MBBras, (audit process and/or another similar tool used by MBBras), key performance indicators published by MBBras and internal audit process.

5.5.1.1 Quality Responsibility To train employees whose functions can impact a product quality, it is required to consider the requirement described in sub element 6.1 “Personal / Qualification” in VDA standard. 6.3.

7.1.1 Product Realization Planning – Supplementary A supplier needs to include as a technical specification to DBL's (MBB-F’s) standards the Books of Requirements and Book of Obligations (as applicable), MBST, part purchase order, tool purchase order, Submission Requirements of the Sample, VDA(s) 1, 2, 4.3 e 6.3, AIAG Manuals – APQP, FMEA, CEP e MSA, current edition.

7.1.4 Change Control Any product or process change needs to be notified to MBBras and receive its agreement, whether it is a patented product and/or a Black Box. All product and/or process changes also need to be recorded in the part curriculum, recording the Q-Stand (level of change to the part in the process) and ZGS (level of

Mercedes-Benz do Brasil Ltda. Uma Empresa Daimler engineering change to the item) to start a new approval process for the product and/or process (EMPB), see MBST 13 (Reasons for submission EMPB and notification areas MBBras)

7.2.1.1 Special characteristics required by the customer These need to be considered in the books of requirements (as applicable), product drawings, purchase order and sample requirement. Consider definitions and requirements in VDA. 1, VDA 2, VDA 4.3 e manual AIAG - APQP. Symbol Daimler Group – DS (safety characteristic) and DZ (government characteristic)

7.2.2 Critical analysis of product-related requirements. The supplier needs to consider the definitions and requirements described in the book of requirements (as applicable), purchase order, drawings and DBL’s (MBN’s) The MBBras standards (DBL / MBN) should always be obtained by Doc-Master system, ensuring the update of the standards in use.

7.3.1 Development and Project Planning The supplier needs to consider the MBBras development timelines (closing a Project Quality Gates), sample requirements and the PSM (preventive Supplier Management) used to develop high-risk products (risk A)

7.3.2.1 Product project entries The supplier needs to consider the definitions and requirements in the purchase order and book of requirements (as applicable)

7.3.2.3 Special characteristics The supplier needs to be aware of all legal legislations and standards applicable to its product, and also consider the description in item 7.2.1.1 in this document. The symbology of the group Daimler DS and / or DZ need to be considered in the supplier drawings that are sent for MBBras approval in the product development phase. The area of development of MBBras product needs to be contacted to supply the necessary information. The symbology of the supplier can be applied to identify the characteristics special in the process control documentation (supplier drawings for internal process, process flowchart, FMEA, control plan, production plan, others), but it is necessary to keep a correlation table with a characteristics MBBras (DS and DZ). In development and production of parts with safety characteristics DS/DZ consider the definitions and requirement of the MBST 13 (aspects 8 e 12.1: Products with safety characteristic DS/DZ and Process Capability for Items with Safety Characteristics DS/DZ) and MBST14 (aspect 4: Relevance of Products with Special Characteristics)

7.3.6.3 Product Approval Process It is required to consider submission requirements VDA.2 and, including the sending for MBBras of the report of the composition of the material/substance inserted in the IMDS (International Materials Data System) It should be performed an assessment of suppliers that have protection application processes Superficial (painting, zinc, etc.). This review will occur when new EMPBs development occurs. After evaluation and completion of any action plan the supplier is registered in the "Suppliers List of Approved" to supply parts of this nature. MBBras suppliers need to use submission requirements of the VDA 2 or of the PAPP 4th edition requirements for its own suppliers.

7.4.1 Procurement It is required to consider sub suppliers’ capacity to meet development timelines and lot delivery, production capacity and quality assurance.

7.4.2.1 Supplier Quality Management System Development  MBBras suppliers need to have ISO TS 16949 certification.  For exclusive suppliers of spare parts and of remanufactured products, ISO 9001certification is also accepted  For suppliers MBBras service provider of thermal treatment, surface treatment, painting, and other finish services directly for production, ISO 9001 certification is also accepted  For sub suppliers, it is required ISO 9001 certification.

Mandatory notification for MBBras of the following documents:  Suppliers must send for MBBras copy of initial certification ISO TS 16949 and also copy of the renewals of certifications.  Exclusive suppliers of spare parts, of remanufactured products and service providers send the ISO 9001 certification  A letter of recommendation from OCC (Accredited Certifying Organization) is accepted by MBBras until the certificate is issued.  Maximum period of validity of the recommendation letter is 120 days, after issuance.  Letter from supplier stating be in the "follow up period" of the certification process, in the letter inform date realization the audit, name of the Accredited Certifying Organization and the target date to finalize the certification process.

Note: The documents must be send to:  Common supplier for plants S.B.C, Juiz de Fora and Campinas or exclusive supplier the plant S.B.C, e-mail: [email protected]

 Exclusive supplier the plant Juiz de Fora, e-mail: [email protected]  Exclusive supplier the plant Campinas e-mail: [email protected]

7.5.1.1 Control Plan For products with special characteristic (DS or DZ) the control plan must be submitted the MBBras. Proof of submission of the control plane is made by signing the supplier management (SM) in the control plan which shall remain with the supplier

7.5.4.1 Production Tool of Property Customer Rights and duties of the suppliers regarding the use of tools property MBBras for series production part and spare part are described in the current edition MBST 31.

7.6.1 Measurement systems analysis Consider manual AIAG – MSA , current edition. Waiver of equipment to study MSA in the development phase of the sample will be analyzed case by case basis by the specialist MBBras, according to equipment use. Acceptance criteria MBBras for study R & R

Measurement systems Measurment systems “Used” “New” R&R ≤ 20% RR > 20% R&R≤ 30% R&R > 30% APPROVED REPROVED APPROVED REPROVED

7.6.3.2 External laboratories The suppliers need to use laboratories of testing and calibration that have their accredited scope by INMETRO (RBLE Brazilian Network of Testing Laboratory e RBC Brazilian Network of Calibration) In cases that the laboratory to be used by the supplier does not have the necessary Accreditations with INMETRO, the services contracted of calibration and testing must be Recognized by a State Metrics Network.

Concessions MBBras valid until January 2016:  The supplier may use the testing and calibration laboratories with Qualified scope available on the IQA (Institute of Quality Automotive) site, http://www.iqa.org.br/website/abre.asp, or;  Utilization by supplier of laboratory that attesting (evidences) : 1. Traceability the Standards used in the Testing or Calibration; 2. Methods of Testing and Calibration validated and documented; 3. Qualified employee for carry out contracted service.

Note: Evidences must be kept on file by supplier and available for inspection when request by MBBras or Accredited Certifying Organization.

8.2.1 Customer Satisfaction A supplier performance is monitored according to the results from our indexes.

•São Bernardo do Campo Site = EBSC (External Balanced Score Card) •Campinas Site= EBSC (External Balanced Score Card) •Juiz de Fora Site = EBSC (External Balanced Score Card)

8.2.2.2 Audit of the manufacturing process The procedure for conducting internal audit of the manufacturing process must include the "Element Procedure P6" the VDA 6.3 2nd edition - 2010

8.2.3.1 Measuring and monitoring manufacturing process It is required to consider the requirements specified in VDA 2 (Item 4.5.3) and MBST 13 (Proof Process Capacity).

8.2.4.1 Layout Inspection and functional trials "Layout" inspections need to be performed on a yearly basis after EMPB is approved. Dimensional, material and functional analyses need to be performed according to the documentation of defined quality in EMPB and following the concept of production in which all products supplied MBBras were approved (approval for family or individual). It is necessary to define a quality documentation of the registration method that guarantees the traceability of the part at any time, especially in the case of the concept of family approval. Frequency changes in the layout inspection should only occur if it is proven that maintaining the quality of the product / process is assurance, thus ensuring the objective for which this procedure was developed, this should be validated in EMPB by MBBras.

8.2.4.2 Appearance Items Reports will be requested for appearance items in the sample requirement (submission requirements – VDA2)

8.5.2 Corrective Action Corrective actions generated after MBBras complaint will be provided through of eSEP++ Portal according to deadline, as below described:

Local Suppliers •Containment actions, parts available within 24 hours

•Containment actions carried out and corrective action planning notification within 5 days, in form 8D

International Suppliers •Containment actions carried out notification within 5 days •Within 30 days of corrective actions taken and 8D report responded

8.5.2.1 Problem solving Application MASP methodology, and the 8D, responded in a proper form of the supplier and the attached in the communication portal eSEP++ or answered within the form available on the portal itself eSEP++.

NOTES: 1. Questions related to specific customer requirements and waiver requests will be sent and checked by the following individuals:

São Bernardo do Campo Site Francisco Elias de Aguiar - Tel. 4173 -8539 E- mail [email protected]

Campinas Site Henrique de Faria - Tel. 019–3725 3318 E-mail [email protected]

Juiz de Fora Site Danilo Gonçalves – Tel. 032 – 3219 2772 E-mail [email protected]

2. Waiver request for specific requirement of customer MBBras Only may be request a waiver when there is no other alternative to meet the specific requirement, should be done as follows: •Waiver request needs to be made through a letter from supplier attached in the e-mail, letter cannot be protected or in PDF format, the waiver will be answered in the letter itself and will return to the supplier •It should not be requested more than a waiver by letter •In the letter the MBBras specific requirement needs to be described in full and then the waiver request •The waiver request needs to be clear and cite the reason for the request, because the specific requirement was not met and the period of adaptation •Action plan, implementation schedule, and other evidences, needed to be attached in same e-mail being sent the letter of the request waiver •Waiver should not be requested during the period of certification audit, we do not give waive this period where the OCC (Accredited Certifying Organization) is realizing the

Mercedes-Benz do Brasil Ltda. Uma Empresa Daimler audit.

We keep an on-line file with the answers to waiver requests, available for the OCC’s to check. Must only be considered as valid waiver issued by the representatives MBBras (Plants São Bernardo, Campinas e Juiz de Fora) mentioned above (note 1).

Original held by the issuer Francisco Elias de Aguiar Mercedes Benz do Brasil Ltda TE/XML - OLL – Management Supplier – Methods & Processes