Data classification: Internal

Global Purchasing
Quality System Awareness Training
Revision 02/20/2007
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Global Purchasing
Roles & Responsibilities
Across every Global Purchasing department:
Organizational Overview final organization charts
Key Structural elements guiding principles for each department
Detailed roles & responsibilities expectations in our day-to-day jobs
Interfaces and dependencies how we coordinate and work together
across the various departments
Roles & Responsibilities Training
Go To FMeWorld/Departments/Global Purchasing
Click on Roles & Responsibilities
Review the training document
See your manager if questions
First Thing!
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Global Purchasing
Roles & Responsibilities
Data classification: Internal
What is the Global
Purchasing Quality System?
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This overview provides the latest
information on Global Purchasing quality
system.


What it is?

Where to find it?

What will the auditor ask me?


Overview
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Global Purchasing Quality System
The fundamental system used by Federal-
Mogul Global Purchasing that describes core
processes & functional interfaces, and details
roles & responsibilities.

The Federal-Mogul quality system emphasizes
defect prevention and the reduction of waste in
the supply chain.

It is the harmonization of Federal-Mogul and
customer requirements and is the foundation
for the way we do business.
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GPPS Document Title
GPP-100 Global Purchasing Processes
GPP-150 Document and Record Control
GPP-275 Training
GPP-300 Supplier Selection and Qualification
GPP-325 Supplier Performance Measurement
GPP-350 Supplier Development
GPP-375 Purchase of Capital Equipment
GPP-400 Purchase of Direct Materials
GPP-410 Purchase of Indirect Materials
GPP-425 New Program or Part Introduction
GPP-450 SAP Vendor Master Maintenance
Global Purchasing Procedures
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GPP-100
Title: Global Purchasing Processes

Provides overall picture of Global Purchasing.

KEY POINTS:
Shows where all GPPs fit.
Walks process through from Sourcing to Training of
Global Purchasing employees.

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Interfaces
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Request for new
material/service
supplier
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Supplier
Selection
and
Qualification
Supplier
Performance
Measurement
Existing
Supplier
Development
Document
and Record
Control
Sourcing of
Purchased
Product
Internal Audit
Training
Customer
Concern
GPP-100 Global Purchasing Processes
GPP-300
GPP-325
Audit Reports
GPP-350
GPP-400, GPP-425
GPP-410
Internal
Corrective
Action
GQP-8.2.2.0
GQP-8.5.2.0
GPP-150
GPP-275
Request for new
Capital Equipment
ASL
Purchase
Order
Score Card
SCAR
ECAP
Purchase
of Capital
Equipment
GPP-375
Internal Audit
Report
FMTiPs Report
Controlled
Documents
Training
Record
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F-M Manufacturing Plants
&
Distribution Centers
Who are Global Purchasing
customers?
Global Purchasing Customers
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GPP-150
Title: Document and Record Control
Defines control of Global Purchasing Quality
System documentation and records.

KEY POINTS:
Review of documents per a defined schedule.
Approved documents are published on F-M intranet
and are available to all employees.
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GPP Update Notification
When a GPP is updated or created, all the Global
Purchasing Directors and Global Team Leads (at
minimum) are notified of the change

Each Global Purchasing Director is responsible for
cascading the notification of the change to their team

The only valid version of procedures or forms is on
FMeWorld
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GPP-275
Title: Training
Documents process for managers to evaluate
their employees needed skills and provide
proper training.
KEY POINTS:
Manager is responsible for identifying the need(s) or
skill(s) required by the employee.
Employee schedules and receives the training.
Training effectiveness is reviewed.
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Training Info Found on Global
Purchasing Web Site
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GPP-300
Title: Supplier Selection & Qualification
Establishes a uniform method of selecting & qualifying
suppliers.
KEY POINTS:
All direct material suppliers must be certified to ISO 9001:2000 or
ISO/TS 16949:2002. No exceptions unless exempt only via a
customer-written waiver.
Customer-directed sources are utilized when dictated by the
customer. These suppliers must be qualified by F-M.
Each supplier location is qualified separately.
A supplier qualification audit is mandatory.
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Certification Required by type of
supplier per GPP-300
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GPP-300
GPP-300: Supplier Selection and Qualification
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Supplier Initial
Assessment
request to
SQD Director
SQ Manager
assigns Audit
Team Lead
Supplier Initial
Assessment is
conducted at
supplier
manufacturing
location
Supplier
completes
corrective
action
Audit Team
Lead issues
report
Supplier Initial
Assessment
& 3
rd
Party Cert
Stored
Corrective
action
verified
Supplier
Mfg
Location
Approved
Supplier Mfg
Location
Updated
TO GPP-
400 Gate 4
TO GPP-
400 Gate 1
Pass
Audit?
SQD Initiates
Conference
Call to discuss
Commodity
Strategy for
this Supplier
based on
Results of
Initial
Assessment
Fail
End Not in Strategy
Supplier
Development:
Correct Non-
Conformances
& Address F-M
Requirements
In Strategy
Pass
TO GPP-
400 Gate 1
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Certification to:

ISO 9001:2000
ISO/TS 16949:2002
ISO/IEC 17025 (Calibration Suppliers)


F-M Supplier Requirements
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GPP-325
Title: Supplier Performance Measurement
Establishes supplier performance measurements for direct
material suppliers to F-M. Applies to all F-M manufacturing
facilities and distribution centers. Does not apply to
Maintenance, Repair, and Operation or Non-Production
suppliers.
KEY POINTS:
Corporate Supplier Quality reports on Supplier performance via
SupplyNet for selected suppliers on a monthly basis. Suppliers are
selected based upon forecasted spend and/or the criticality of the
supplied product.
Corrective action is requested when unacceptable performance
exists.
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GPP-350
Title: Supplier Development
Provides guidance on the processes, roles,
responsibilities, and requirements for supplier
development.
KEY POINTS:
Defines Global SQ responsibility and F-M facility responsibility for
Supplier Development.
Gives general guidelines for determining and qualifying the need
for Global SQ intervention. (Intervention Required - 5.1.3)
Provides tools that may be used.
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GPP-375
Title: Purchase of Capital Equipment:
Documents the method for the quotation, purchase,
and payment of capital equipment.
KEY POINTS:
Competitive bids are required for all items of capital equipment.
An ECAP is formally approved by local plant management.
Purchasing must not order capital equipment valued over $25,000
unless ECAP is approved.
A pre-acceptance run-off is conducted at the supplier site and
then at F-M prior to authorizing final payment.
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GPP-400
Title: Sourcing of Direct Materials
Ensures that purchased product conforms to specified
purchase requirements and documents the process for
managing Letters of Intent, Supply Agreements, and
Purchase Orders.
KEY POINTS:
The F-M Purchase Order describes the product to be purchased
including all purchase requirements to the supplier.
Global Purchasing utilizes the Gate Process for sourcing
The location or Business Unit determines if PPAP is needed per
customer requirements.
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GPP-400
Gate
Database
GPP-400: Purchase of Direct Materials
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Gate 1:
Project
Initiation/
Idea
Gate
Database
Gate 1
Review
Fail
Gate 2:
Initial
Recommen-
dation
Supplier
Qualification
(GPP-300)
Pass
Market Test
or
Negotiation
Fail
Gate 2
Review
RFX Wizard
Pass
Fail
Gate 3:
Implementa-
tion Plan
Gate 3
Review
Pass
Fail
Gate 4:
Launch
Readiness
Gate 4
Review
Pass
Fail
Gate 5:
Verification
Gate 5
Review
Material
Validation
and PPAP
SAP 5.0 or
ASL
Gate
Database
Gate
Database
Gate
Database
SAM
Database
SAP 5.0 or
Local ERP &
ASL
SAM
Database
Supplier Development
New Part/New Program Introduction
(GPP-425)
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GPP-410
Title: Sourcing of Indirect Materials
Ensures that purchased product conforms to specified
purchase requirements and documents the process for
managing Letters of Intent, Supply Agreements, and
Purchase Orders.
KEY POINTS:
The F-M Purchase Order describes the product to be purchased
including all purchase requirements to the supplier.
Global Purchasing utilizes the Gate Process for sourcing
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GPP-410
Gate
Database
GPP-410: Purchase of Indirect Materials
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Gate 1:
Project
Initiation/
Idea
Gate
Database
Gate 1
Review
Fail
Gate 2:
Initial
Recommen-
dation
Pass
Market Test
or
Negotiation
Fail
Gate 2
Review
RFX Wizard
Pass
Fail
Gate 3:
Implementa-
tion Plan
Gate 3
Review
Pass
Fail
Gate 4:
Launch
Readiness
Gate 4
Review
Pass
Fail
Gate 5:
Verification
Gate 5
Review
Gate
Database
Gate
Database
SAM
Database
Gate
Database
SAM
Database
SAP 5.0 or
Local ERP &
ASL
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GPP 425
Title: New Program or Part Introduction
Ensures that new program or part introduction
conforms to specified purchase requirements in
support of the program development teams from new
business opportunity through to program production
launch.
KEY POINTS:
F-M sales engineers identify opportunities to quote product.
Component Sourcing Analysis Approval process.
Launch of Strategically important suppliers
Quality Tools.
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GPP 450
Title: SAP Vendor Master Maintenance
Ensures control and maintenance of the management
of vendor data in SAP 5.0 and provide guidance on
how requests are to be made and processed.

KEY POINTS:
Becomes effective as each location rolls-out SAP 5.0
Data classification: Internal
Where can I find it?
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Information Location
Location: FMeWorld/Departments/Global Purchasing
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Global Purchasing Procedures
(GPPs)
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Information Location
Location: www.federal-mogul.com/Suppliers
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Purchasing Policies
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Location: FMeWorld/Departments/Quality
Information Location
Data classification: Internal
What will the Auditor Ask?
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Continual improvement of the quality management system
Customers

Requirements

Customers

Satisfaction

Production and
Service Management
/ Product Realization
Input Output
Management
Responsibility
Measurement
Analysis and
Improvement
Quality
System
Information
Process Approach to a Quality System
Process Audit
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Roles & Responsibilities
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Commodity Managers
What factors do you consider when sourcing a new
supplier?

How does the gate process work?

Show me project XYZ on the gate database

Show me your documentation for making the sourcing
decision on project XYZ

Why did you source an uncertified supplier?

Where are GPPs found?
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Plant Purchasing Leads
How do you work with the Commodity Teams? When can
you source on your own?

What special requirements do your customers have?

Why did you buy from an uncertified supplier?

Where are GPPs found?

Show me your ASL ... (also called AVL, approved supplier
list, approved vendor list, etc.)

Why is there an uncertified supplier on your ASL?
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Advanced Purchasing Buyers
What factors do you consider when sourcing a new
supplier?

How does the AP database work?

Show me program XYZ on the AP database

Show me your documentation for making the sourcing
decision on program XYZ

Why did you source an uncertified supplier?

Where are GPPs found?
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Process Group
How do you determine improvement opportunities?

Show me an example(s) of an improvement project?

How did this project(s) improve the department metrics
(show the correlation)?

Where are GPPs found?
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Supplier Quality & Development
When do the commodity managers/advanced purchasing
buyers request a new supplier audit?

How does SupplyNet work?

When do the plants request assistance with poor
performing suppliers?

How are your working to develop suppliers?

Why did you source an uncertified supplier?

Where are GPPs found?
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Training and Its Effectiveness...
Each member of Global Purchasing is responsible for
scheduling and attending training as agreed upon with
their manager

Each manager in Global Purchasing is responsible for
assessing the effectiveness of the training received by
their employees and documenting it (e.g. TDD or other
method)

Be prepared to show documentation!
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It is Federal-Moguls objective to be recognized as a World-Class supplier of
automotive components, modules, and systems serving the worlds original
equipment manufacturers and the aftermarket. To achieve this we are
committed to:
Customer Satisfaction
Providing our customers with products and services that meet or exceed their requirements.

Continual Improvement
Measurable improvement of the effectiveness of our quality management system.

Employees
Providing training to employees to promote Continual Improvement.
Empowering our employees to use their skills and talents to achieve the quality policy and business plan
objectives.

Management System
Maintaining a management system compliant to ISO/TS 16949:2002, ISO 9001:2000, and ISO 14001:1996.
Reviewing our management system on continual basis for robustness.
Setting and reviewing quality objectives to meet our business goals.

Environment
Maintaining operations that protect the environment & natural resources of our communities, our states, & our
nations.

Safety
Providing a safe work environment for our employees and visitors.
Whats the F-M Quality Policy?
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Commodity Managers/Advanced Purchasing:
Meet customer requirements during sourcing activities
Source only ISO 9001:2000 or ISO/TS 16949:2002 direct material suppliers
Consider the quality performance of the supply base when sourcing

Plant Purchasing Leads:
Meet customer specifications in sourcing activities
Manage performance of local supply base and escalate as required
Participate in local audits
Process Group:
Focus on continual improvement with projects such as Gate Process,
Contract Repository, RFX Wizard, etc.
Provide training to employees to maintain consistency in processes (e.g.
GSS, RFX, Gate Process, etc.)
How does your job relate to the
Quality Policy?
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Questions
?