SQN-A0490
Supplier Quality
LAUNCH RISK MITIGATION (LRM)
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Date: 05-DEC-2017
REGIONAL DOCUMENT
Change level Date Description of change
- 05-DEC-2017 Initial release
For Information, please contact the following references:
FCA US LLC Contact: Christine Kavka
Phone number/e-mail address: +1 248-420-5043 / christine.kavka@fcagroup.com
Department: SQ Business Process
ANY PRINTED COPY IS TO BE DEEMED AS UNCHECKED; THEREFORE THE UPDATED COPY MUST BE CHECKED IN THE APPROPRIATE WEB SITE
CONFIDENTIAL
THIS DOCUMENT MUST NOT BE REPRODUCED OR CIRCULATED TO THIRD PARTIES WITHOUT PRIOR WRITTEN CONSENT BY THE RELEVANT FCA COMPANY.
IN CASE OF DISPUTE, THE ONLY VALID REFERENCE IS THE ENGLISH EDITION
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LAUNCH RISK MITIGATION (LRM)
TABLE OF CONTENTS
1 GENERAL ................................................................................................................................................. 3
1.1 Purpose .................................................................................................................................................. 3
1.2 Coverage of this Standard ..................................................................................................................... 3
1.3 Limitations on Usage.............................................................................................................................. 3
2 REFERENCES.......................................................................................................................................... 4
3 DEFINITIONS/ABBREVIATIONS/ACRONYMS/SYMBOLS ..................................................................... 4
4 PROCEDURE DESCRIPTION ................................................................................................................. 5
5 FLOW-CHART OF THE PROCEDURE.................................................................................................... 6
6 DESCRIPTION OF ACTIVITIES (HOW)................................................................................................... 7
6.1 Identify Parts for LRM ............................................................................................................................ 7
6.2 Initiate Project / Submit for Approval...................................................................................................... 7
6.3 Establish / Revise Criteria ...................................................................................................................... 8
6.4 Request Quote / Provide Quote ............................................................................................................. 8
6.5 Lead Kick-Off meeting............................................................................................................................ 9
6.6 Sort Product / Initiate 3CPR Level 2 ....................................................................................................... 9
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1 GENERAL
1.1 Purpose
Launch Risk Mitigation (LRM) provides a means to inspect Supplier production parts that Supplier Quality
(SQ) suspects may be at risk for non-conformance. LRM may be implemented when a Supplier or a
Supplier part is identified as posing a risk to an FCA manufacturing facility or vehicle program.
The term “Customer” or “FCA”, as used in this process, refers to FCA US LLC, FCA Italy S.p.A., Maserati
S.p.A., FIASA, and all subsidiaries and Joint Ventures which manufacture Chrysler, Dodge, Ram, Jeep®,
FIAT, Alfa Romeo, Lancia, and Maserati brand vehicles. The word “Supplier” is intended to indicate both
external and internal Tier 1 Suppliers. The term “sub-tier suppliers” refers to all Tier 2 and lower
organizations, both internal and external. The term “NAFTA” refers to FCA US LLC and FCA Mexico S.A.
de C.V. personnel and facilities in the United States, Canada, and Mexico. “EMEA” refers to FCA Italy
S.p.A. personnel and facilities in Europe, the Middle East, and Africa. “LATAM” refers to FCA Fiat
Chrysler Automóveis Brasil Ltda. personnel and facilities in South and Central America. “APAC” refers to
FCA personnel and facilities in the Asia and the Pacific region. Suppliers providing parts to these regions
shall ensure they meet any region-specific requirements or processes called out in this document.
The term “SQE”, as used in this document, refers to the FCA Supplier Quality Engineer.
The term “shall”, as used in this document, ind icates mandatory requirements. The word “should”
indicates a suggestion or recommendation.
The terms “components” or “parts”, as used in this document, refer to all Tier 1 supplied parts,
assemblies, modules, and materials. “Sub-components” refers to items or processes supplied by sub -tier
suppliers.
1.2 Coverage of this Standard
PDSQ and BICEEP SQ select parts based upon the following guidelines:
Parts with a High program risk (or PPAP Level 5);
Parts with Safety requirements or high impact to vehicle functionality;
Suppliers on TPSL or NBH;
Suppliers with a Red IMQ or Warranty score;
Suppliers that have had historical launch issues
Note that LRM can be applied to any new or modified production part at any point in the production life
cycle, at the discretion of SQ.
1.3 Limitations on Usage
After a nonconformance is found, LRM is no longer applicable and Supplier-paid 3CPR is used.
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2 REFERENCES
Table 1 - References
Shield/Designator downloadable
Document (if applicable) for suppliers
Number Document Title from
<S,D,E,A> beSTandard
FGP.16 N/A Certified Shipping Level Yes
SQN-
N/A Third Party Containment and Problem Resolution (3CPR) Yes
XXXXX
3 DEFINITIONS/ABBREVIATIONS/ACRONYMS/SYMBOLS
3rd Party Containment and Problem Resolution: NAFTA process for
3CPR
containment of Supplier-responsible quality issues.
Asia and Pacific: Business region encompassing Asia and the Pacific
(China, India, Japan, Korea, etc.) Managed by FCA China in Shanghai,
APAC
China with support from Chennai, India; Pune, India; and Seoul, South
Korea.
Body/Exterior, Interior, Chassis, Electrical, Engine Systems,
BICEEP
Powertrain
Controlled Shipping Level: EMEA/LATAM process for containment of
CSL
Supplier-responsible quality issues. See FGP.16
Global External Balanced Scorecard: measure of a Supplier’s overall
GEBSC
performance to FCA. Includes IMQ, Warranty, Delivery, and Cost.
Europe, Middel East, and Africa: Business region encompassing
EMEA Europe, the Middle East, and Africa. Managed by FCA Italy S.p.A. based
in Turin, Italy.
FCA Fiat Chrysler Automobiles
Incoming Material Quality: portion of the EBSC that reflects a Supplier’s
IMQ
quality performance on parts coming in to FCA facilities.
An individual occurrence of a condition or event that is perceived as a
Incident non-conformance, there may not be enough information yet to define as
an issue.
An incident or group of incidents that is a confirmed non-conformance that
Issue
will affect customer perception or overall vehicle performance.
Latin America: Business region encompassing South America and
LATAM Central America. Managed by Fiat Chrysler Automóveis Brasil Ltda. in
Betim, Brazil.
Launch Risk Mitigation: NAFTA process of “proactive 3CPR” initiated
LRM by FCA to offer an additional level of protection againt issues / incidents
during launch.
North American Free Trade Agreement: Business region
encompassing those countries governed by the NAFTA agreement –
NAFTA Canada, Mexico, and the United States. Managed by FCA US LLC in
Auburn Hills, MI, USA and FCA Mexico S.A. de C.V. in Santa Fe, Mexico
City, MEX
New Business Hold: Process to restrict a Supplier who is identified with
NBH critical quality issues from quoting new business during the Sourcing
Process.
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PDSQ Product Development Supplier Quality
Safe Launch Plan: process to protect FCA facilities from quality issues
SLP
during launch phases.
SQE Supplier Quality Engineer
SQM Supplier Quality Manager
Top Problem Supplier Location: a process used to improve the quality
TPSL of the products manufactured by FCA's external suppliers with poor IMQ
and/or Warranty performance.
4 PROCEDURE DESCRIPTION
1. The responsible SQE or PDSQ determines the need for an LRM on a particular part.
2. The SQE begins the LRM project obtains financial approval from the Director of Powertrain or
Product Development & Plant Supplier Quality
3. The responsible SQE establishes the LRM project criteria consisting of the following elements:
o Approvers Name (Director)
o Lead SQE contact information (Individual the 3CPR Provider (LRM is performed by FCA
approved 3CPR Providers) will contact for details of the project)
Name
Phone
Email
o Project characteristics to be inspected (must be specific; “all” or “everything” is
unacceptable)
o Method of inspection required (visual, gages, test equipment, etc.)
o Project duration
o Project start date
o FCA Plant(s) associated with the sort
o FCA Plant Supplier Quality contact (if involved)
o Supplier Manufacturing Location Code (SMLC)
o Supplier Name
o Supplier Location/Address
o Supplier contact information (3CPR Provider will contact for details of the project as
needed)
Name
Title
Phone
Email
The SQ BICEEP Lead shall approve the inspection criteria (or delegate to the SQM).
4. The LRM Administrator shall forward this information to the appropriate 3CPR Provider to request a
quote (the SQ Operations Budget Administrator shall be copied on the request).
5. The 3CPR Provider shall provide a quote to the LRM Administrator. The LRM Administrator shall
forward the quote to the SQ Operations Budget Administrator, who issues the requisition.
6. The SQE shall lead a kick-off meeting, as required. This will include the Supplier and 3CPR provider,
and will review the criteria, duration, expectations, etc.
7. The 3CPR Provider begins sorting material on the Project start date
8. If the 3CPR Provider identifies non-conforming material during the sort, the Lead SQE shall be
contacted by the 3CPR Provider to discuss next steps. A Level 2 3CPR shall be issued, unless the
SQE, SQM, and SQ BICEEP Lead agree otherwise.
NOTE: Being placed on LRM does not affect a Supplier's IMQ rating. A Supplier who has a 3CPR project initiated as a result of a
found non-conformance will be affected normally, however.
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5 FLOW-CHART OF THE PROCEDURE
Figure 1 - LRM Process Flow
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6 DESCRIPTION OF ACTIVITIES (HOW)
6.1 Identify Parts for LRM
Direct Responsibilities: SQE, PDSQ
Support Functions: LRM Administrator
Input: High risk Suppliers and parts for a program, VP issues
Description of Activities:
The SQE and PDSQ identify those parts and Suppliers that they wish to have LRM implemented. This
information is communicated to the LRM Administrator via email.
Output: List of parts and Suppliers for LRM on a specific program.
Reference
Project Tracking Sheet
Documentations:
Document Filed by Catalogued by Period
Records Project Tracking LRM LRM Life of Program
LRM Site
Sheet Administrator Administrator + 1 year
6.2 Initiate Project / Submit for Approval
Direct Responsibilities: SQE
Support Functions: LRM Administrator, SQM, PDSQ
Input: LRM proposed projects
Description of Activities:
The SQE obtains approval from their SQM for the LRM project. The final list of Suppliers is distributed to
the SQ BICEEP Leads and SQMs. If there is disagreement with any, the SQE provides the LRM
Administrator and PDSQ an email with justification for the exclusion.
Output: Approved LRM project
Reference
Project Tracking Sheet
Documentations:
Document Filed by Catalogued by Period
Records Project Tracking LRM LRM Life of Program
LRM Site
Sheet Administrator Administrator + 1 year
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6.3 Establish / Revise Criteria
Direct Responsibilities: SQE
Support Functions: SQM, SQ BICEEP Lead, PDSQ
Input: LRM Approved Project
Description of Activities:
The SQE completes the LRM worksheet for each project, defining all criteria and information. The SQ
BICEEP Lead (or SQM delegate) shall approve the completed worksheet before the LRM project begins.
If there are any issues, the SQE will revise the criteria and worksheet and then resubmit for approval.
Output: Completed LRM worksheet
Reference
LRM Worksheet
Documentations:
Document Filed by Catalogued by Period
Records Life of Program
LRM Worksheet SQE SQE N/A
+ 1 year
6.4 Request Quote / Provide Quote
Direct Responsibilities: LRM Administrator
Support Functions: 3CPR Provider
Input: LRM quote
Description of Activities:
The LRM Administrator requests a quote from the 3CPR Provider for all LRM projects assigned to that
Provider. The Provider provides the quote, which the LRM Administrator reviews. If there are concerns,
the 3CPR provider shall update or revise the quote as necessary. If the quote is acceptable, the LRM
Administrator provides the quote to the SQ Operations Budget Lead, and the LRM projects may proceed.
Output: LRM project quote and PO
Reference
N/A
Documentations:
Document Filed by Catalogued by Period
Records LRM SQ Ops Budget
LRM project quote PSPR03 N/A
Administrator Lead
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6.5 Lead Kick-Off meeting
Direct Responsibilities: SQE
Support Functions: Supplier
Input: LRM worksheet
Description of Activities:
The SQE fills out and sends the “Supplier LRM notification” form to the Supplier. The SQE then schedules
and leads the kick-off meeting with the Supplier and 3CPR Provider. They review all parts of the LRM
project, including inspection criteria, reaction plans, intended duration, and an explanation of what
happens if a nonconformance is found (see 6.6).
Output: LRM Kick-Off meeting held
Reference
LRM worksheet, Supplier LRM notification
Documentations:
Document Filed by Catalogued by Period
Records Supplier LRM
SQE SQE 1 year LRM Site
notification
6.6 Sort Product / Initiate 3CPR Level 2
Direct Responsibilities: 3CPR Provider
Support Functions: SQE, LRM Administrator
Input: LRM worksheet
Description of Activities:
The 3CPR provider begins sorting product per the established criteria. The duration shall be a minimum of
30 days, but may be longer based upon the established criteria in the LRM worksheet. If the Provider
discovers a nonconformance during the LRM, the Provider shall initiate a Level 2 3CPR project (Supplier-
paid), and the LRM project ends at that time. Otherwise, the LRM project ends at the completion of the
established duration.
Output: LRM Kick-Off meeting held
Reference
LRM worksheet
Documentations:
Document Filed by Catalogued by Period
Records 3CPR duration
3CPR Level 2 3CPR Provider 3CPR Provider 3CPR
+ 1 year
