ŠKODA AUTO, a.s.

specific quality requirements

These specific ŠKODA AUTO a.s. quality requirements specifies cooperation

conditions between the supplier and the company ŠKODA AUTO in order to ensure
quality of the parts and the processes within the purchasing and supplier chain.

LAH 5E0 011 FAHRZEUG

Petr Štický
Head of prod.tech.-E/E and supplier audit
Tel.: +420-326-821139
E-Mail: petr.sticky@skoda-auto.cz
Version 3.0
1.3.2016

Frank Schreier Roman Mogalle-Kiebler

MGMT Quality Assurance ŠKODA AUTO a.s. Head of QS Product technique/purch.parts
Tel.: +420-326-811638 Tel.: +420-326-821135
E-Mail: frank.schreier@skoda-auto.cz E-Mail: roman.mogalle.kiebler@skoda-auto.cz

1
Introduction

The ŠKODA AUTO specific quality requirements describe general conditions for the
supplier of purchased parts in terms of the ŠKODA AUTO a.s. quality. The ŠKODA
AUTO specific quality requirements specify and complete the requirements for
quality defined in the documents of VW Concern Formel Q. The part specific
requirements are available in the part technical requirements documentation of the
technical development or in the technical specifications drawings.

During the demand phase, the supplier receives supported documents which
represent the quality requirements for the part requested (series of the Formel Q
documents and ŠKODA AUTO a.s. quality technical requirements). While processing
the offer, the supplier is obliged to consider the requirements and by submitting the
offer the supplier confirms that he is aware of the stated requirements in the
ŠKODA AUTO a.s. technical requirements and that he accepts them and will respects
and meets them without reservation. The supplier is responsible to implement the
requirements in his supply chain including orders placement (e.g. relocated
production processes, “outsourced” process operations, manufacture of parts in
another production site, hired labour etc.).

In case of any deviations or situations when the ŠKODA AUTO a.s. specific quality
requirements are not met, is the supplier obliged to specify them in the purchase
order for the purchasing department and to discuss the issue with specialized
divisions. If changes or non-observance of the requirements emerge while
implementing the development, production and supply of parts, the quality
department reserves the rights to transfer the related extra-costs arisen on behalf of
the supplier.

The Czech version of the quality technical requirements of ŠKODA AUTO

a . s . is the binding document. When contradictions arise, the Czech version
will prevail.

Copying, use and transfer of the technical requirements is only allowed to

the suppliers within the ŠKODA AUTO a.s. supplier chain.

The use of the applications in the protected zone of the supplier KBP platform
www.vwgroupsupply.com is needed for the supplier and ŠKODA AUTO quality
department cooperation. A prerequisite is a particular registration of the supplier in
the protected zone (login) and acceptance of individual applications, before placing
an order.

2
Contract documents in order to ensure quality of supplies to Co. ŠKODA
AUTO a.s.
Cooperation conditions between the supplier and the company AUTO a.s. are
specified in the documents below.

The supplier is obliged to familiarize with the documents and fulfil obligations
defined there.

The documents are being updated on a regular basis and the supplier is obliged to
follow the changes. Valid are documents as currently amended. Information about
updating of the ŠKODA AUTO .a.s quality requirements is available on the internet
(http://www.vwgroupsupply.com) by the means of the application INBOX.

All updated documents can be found at www.vwgroupsupply.com

Other related documents, for instance:

• Specific quality requirements for parts, related standards, drawings, etc.

• VDA publications and standards in the automobile industry, available at
www.vda-qmc.de
• TLD-BZD (Documentation of design status of cars from the point of view of
mandatory documented parts)
• Obligation of identification of fitment parts (BG) defined in TLD-BZD for the
supplier (see document on KBP)
• Legal regulations and requirements for supplied products – valid without
restrictions

3
Content

Introduction 2
Other related documents 3
Content 4
1. Demand and offer processing 5
1.1. Offer conditions 5
1.2. Tender documents 5
1.3. Processing of supplier concept 6
1.4. Framework agreement on quality 6
2. Contract awards quality criteria 7
2.1. Elements of supplier assessment 7
2.2. Measures to ensure contract awards 7
2.3. Agreement on liability for concept (KVV) 7
3. Working with suppliers in the product design process 8
3.1. New parts Integral qualification programme/Maturity level assurance/
Purchased part management 8
3.2. Important milestones for QPNi maturity levels 10
3.3. Cubing/Meisterbock evaluation 10
3.4. Requirements for measuring and measuring performance 11
3.5. Graining of mould / part 13
3.6. Sampling 13
3.7. 2-day production (2DP) 15
3.8. Changes in capacities during current serial production 15
4. Quality actions during serial production 16
4.1. Continuous guarantee of process capability 16
4.2. Product safety, product liability 16
4.3. Identification and solving of issues 16
4.4. Continuous improvement programme 16
4.5. Change management 18
4.6. Requalification 18
4.7. Lessons learned 18
4.8. Solving of liability for defect issues and solving of special issues 19
4.9. Supplier technical review (TRL) 19
4.10. “Critical supplier” programme 19
4.11. Applications review (AR) 19
4.12. External service providers 19
4.13. Supplier qualification to rating “A” 19
5. Additional information/requirements 19
5.1. Reasons to charge the supplier, charge-back by customer quality department 19
5.2. Requirements for internal/external auditors at suppliers 20
5.3. Quality technical requirements (QTR) 21
5.4. Use of recycled material 21
5.5. Requirements for observance of the ESD rules at the suppliers 21
Terms and abbreviations 22
List of revision

4
1. Demand and offer processing

1.1. Offer conditions

Chapter 1.1 Formel Q-Concrete valid without restrictions.

Other mandatory requirements:

• Access (registration) to the VW KBP platform of the Concern suppliers

www.vwgroupsupply.com
• Installation of other IT connections to ensure cooperation with the ŠKODA
AUTO A.S. quality department.
• Assurance of a German-speaking contact person.
• Correspondence with ŠKODA AUTO A.S. quality is carried out in
Czech/German language.

1.2. Tender documents

Chapter 1.2 Formel Q-Concrete valid without restrictions.

Other mandatory requirements:

Following documents and requirements need to be provided for the documents
stated in the point 1.2:

• Planning of defected parts flow from the quality point of view, see also VDA
standard “Analysis of defected parts from field” (Schadteilanalyse Feld)
• Control devices for the certain project (e.g. gauges, models of devices) must be
involved and specified clearly in an offer. Availability of general standard test
devices (e.g. 3D gauge, colorimeter etc.) is required.
• Electrical components, units and function parts: filled-in checklist
“Requirements for production and test technology of electric and electronic
production groups”.
• Coolant hose: Requirements for production and test technology of coolant
hoses
• Free of charge samples and documents necessary for release and sampling
(samples to approve prototypes, initial samples etc.)
• Observance of valid environment legal regulations
• Observance of generally valid legal regulations: the supplier is obliged to
ensure observance at the time of valid legal regulations in particular markets
and to prove them to ŠKODA AUTO a.s. where appropriate. ŠKODA AUTO a.s.
must be promptly informed about changes (e.g. loss of registrations or
certificates) (see also related documents “List of COP contact persons at ŠKODA
AUTO a.s.”).
• Obligation to register the production plant of the suppliers/sub-suppliers at the
platform www.vwgroupsupply.com. The supplier is obliged to define a name of
a product safety inspector (record to the LDB - VWGroupSupply.com),
responsibility lies with the supplier (obligation to provide the information).
Each production site must have an own DUNS number and must be registered
at LDB. This applies both for the current and new supplier, the sub-suppliers
(UL) as well as the potential suppliers.

5
1.3. Processing of supplier concept
Chapter 1.3 Formel Q-Concrete valid without restrictions.

Addition to nomination of responsible persons:

A qualified and well informed quality department representative involved in work
of the SET and project must be nominated until the project SOP. His name, function
and deputy are ranked to the production group SET and BTV/TV (responsible
component engineer) via the system LION for each project separately. Persons
responsible for quality control and product safety are written into the supplier
database (www.vwgroupsupply.com) – see chapter 4.2.

Production planning:
Presentation of planned production processes, distribution of the production within a
plant and supply chains is supposed to be done in an appropriate way, e.g. using a 3D
representation, image documentation.

1.4. Framework agreement on quality

Chapter 1.4 Formel Q-Concrete valid without restrictions.

Notification of changes in production process and supply chain:

Any production relocation (also within one production site) or essential changes1 in
the production process must be announced to the customer (dept. Purchasing,
Logistics, Quality, R&D) always in writing signed by authorized representatives of the
supplier in advance and a range of changes, a concept of deliveries and a timing plan
of the implementation specifying main milestones (implementation date, sampling,
BMG if relevant, pre-stock of parts, internal release after relocation, customer
release) must be provided. An approval by ŠKODA AUTO a.s. is required before the
implementation. If the ŠKODA AUTO a.s. Purchasing department does not agree
otherwise, the costs arisen will be transferred to the supplier.
After the production relocation, changes to the process or to the product, new
sampling of the parts and development release (BMG), if relevant for the part, are
required. Samples necessary for the release must be provided to the particular
department of ŠKODA AUTO a.s. Quality and R&D for free together with the current
life history of the part. Changes to the deliveries are informed to appropriate ŠKODA
AUTO a.s. plants through the LION system. The parts and supplies after the
implemented change or the production relocation must be visibly identified as per the
agreement with the quality operator of ŠKODA AUTO a.s. responsible for the specific
purchased part.
In case of the production relocation or significant changes to the production process is
the supplier obliged to carry out internal two-day production in order to confirm the
production capacities and quality of the supplied parts. The resulting report will be
provided to the Purchasing, Logistics, Quality and R&D.

______________________________
1
Changes in supplies, e.g. design, material and its composition, production procedure, sub-supplier
and/or production site

6
The supplier/sub-supplier is obliged to announce in writing any changes to the
address or the company’s name in LDB department GQD-3 Supplier audit and the
Purchasing department of ŠKODA AUTO a.s..

Additions to module suppliers and selected parts:

In case of several direct contracted suppliers, the supplier who supplies the final
assembly to the customer or who carries out the assembly, undertakes the
responsibility (system supplier).

The system supplier (the supplier of assemblies covering assembly activities and
responsible for individual components/assemblies) is also responsible to meet the
requirements for assuring the quality at his sub-suppliers.

In case of “selected parts” there are following points:

• To ensure and prove quality capability and performance of the supply chain1.
• To define agreements on quality assurance considering the ŠKODA AUTO a.s.
quality requirements.
• To ensure information flow between contract partners.
• Requirements for handling with D/TLD parts and for documents needed2.
• Requirements to assure the traceability of parts.
• To carry out initial sampling of all parts/assemblies from the sub-suppliers,
unless agreed by the customer otherwise during the offer phase.
• To carry out 2-day production prior to serial SOP at the sub-supplier (fulfillment
of quality programme QPNi according to the Formel Q New parts – Integral).
• To ensure quality and volume of supplied parts over the product life time.
• To implement the Formel Q requirements on the whole supply chain.
• To take over the responsibility for quality of purchased parts and “selected
parts” regarding assembly and condition of supplies during shipping.
• Initial sampling is done by the supplier of the assembly/system/module.
Deviations and exceptions of this statement agreed between the supplier,
Purchasing- and Quality department ŠKODA AUTO A.S. must be confirmed in a
written contract.

2. Contract awards quality criteria

Chapter 2 Formel Q-Concrete valid without restrictions.

2.1. Elements of supplier assessment

Chapter 2.1 Formel Q-Concrete valid without restrictions.
Consideration of rules and methods of QTR and UL.

2.2. Measures to ensure contract awards

Chapter 2.2 Formel Q-Concrete valid without restrictions.
A requirement to sustain the note of the audit is max. 1.1 (car audit).

2.3. Agreement on liability for concept (KVV)

Chapter 2.3 Formel Q-Concrete valid without restrictions.
________________
2
See also Formel Q Capability
7
3. Working with suppliers in the product design process
3.1. New parts Integral qualification programme / Maturity level assurance
/Purchased part management

Chapter 3.1 Formel Q-Concrete valid without restrictions.

Application in system LION:

Only online processing in the module LION QPNi via the supplier platform of the VW
Concern KBP is acceptable in case of new contracts. All requirements in the
documentation stated in the following chapters must be implemented online only in
LION with particular modules:
a. TTA (Parts-dates-contact persons)
b. QPNi (Qualification programme for new parts Integral)
c. CoRe (Commitment & Review)
d. TGS (Part generation level)
For given procedure there are requirements defined in the Formel Q new parts and
rules of application according to the QPNi manual for suppliers, LION. All data and
information must be available in the German language. Exceptions must be discussed
with a responsible person for the part.

Quality planning in design and pre-series phase:

The supplier is obliged update the quality framework schedule in the QPNi in order to
include all agreed milestones of the project defined by the customer (e.g. SOP, 0
series, PVS, quality assurance process, FMEA, test periods, BMG release, initial
sampling, 2DP, release).
The supplier is obliged to send electronically the data recorded in QPNi during the
project monitoring to the particular responsible component engineer (BTV) of the
ŠKODA AUTO a.s. Quality department (Prio A, B, C).
The supplier is responsible for implementing suitable QFD analyses, feasibility studies,
strategies of zero defect, FMEA design and process analyses (on request also in
German/English) including concepts to ensure quality and measurement (e.g.
statistical analyses of tolerances including assembly parts and assembly variability
influences), process flow graphs, operational equipment and maintenance plans. The
Design-FMEA is submitted to the technical development and the Process-FMEA to
relevant ŠKODA AUTO a.s. departments.
The supplier defines significant quality signs of the product and the process during the
development, proved by relevant customer departments, e.g. within the SET activity.
If the customer submits requirements, these must be considered primarily.
The supplier is obliged to create test plans (including requalification ones) and to
present them to a relevant department of ŠKODA AUTO a.s.. The checking signs of
the product and the process resulting from the defined quality signs are included in
these test plans. This rule is especially for the D/TLD parts. And all the signs together
with the mandatory documentation must be defined in the test plan.
Electrical parts, assemblies and functional parts must be 100% checked for the
function of the supplied unit. The supplier must prepare a COP test plan for supplies
8
significant for COP (worldwide valid legislations for production conformity).
The supplier is supposed to define or provide suitable test equipment until the first
serial tools (SWZ) or limited production tools (KSW) are made. Dimensioning of this
test equipment needs to be agreed with a responsible component engineer (BTV).
When procuring the test equipment, the possibility to carry out inspections of some
relevant parameters must be considered (e.g. function, dimension, fitment,
assembly). The capability of all test equipment is determined by analyses until the 0
series launch based on the general rules valid for the European automobile industry
summarized in the manual “Determination of capabilities of measuring systems”.
Within the responsibility of the supplier for the quality of related supplied parts
(complete systems) used for assembly of final assemblies during the preparative or
the final phase (e.g. cockpit, front end module), additional test equipment for
independent assessment (e.g. Meisterbock of parts, fitment and assembly cubing)
should be agreed at the supplier together with adequate measuring devices.
The supplier is obliged to update the QPNi module in the system LION throughout the
design phase and the process to ensure the possibility to monitor the activities during
their planning and implementing. Assessment and corrective actions are done
according to the QPNi classification. Parallel to the launch of the serial supplies, the
ppm programme for complaints from the 0 km and the customer field is discussed
and launched to ensure the continuous quality improvement of the serial production.
The ŠKODA AUTO a.s. quality department expects supplies according to the time
schedule, technical specifications and drawing requirements. The parts must meet all
functional-technical, assembly-technical, dimensional, physical, chemical, kinematic
and visual requirements as well as environment requirements, stated in the technical
documentation. Furthermore, all the requirements defined in this technical
requirement sheet must be met without restrictions.

Part history, parts marking, quality proving for pre-series:

The aim is to properly allocate the supplier and his manufacturing site as well as the
production data to the specific ŠKODA part number.

Part history:
Recording of the part history in the LION system begins together with first production
start of the pre-serial phase. All part changes, sampling notes, release and
modification are recorded in there. Repeated supplies without changes of the status
do not have to be recorded. During the pre-series, the part history must be attached
to the quality certification for each modification. In case of a requirement from ŠKODA
AUTO A.S. a.s. the supplier is obliged to feed data into the Lion TGS system

Quality certification for pre-series:

See document “Quality certificate for pre-series”.

Changes during serial supplies:

The supplier is responsible to announce all changes notifiable as stated in the chapter
1.4. (see also chapter 3.7 Initial sampling).

9
3.2. Important milestones for QPNi maturity levels

Chapter 2.1.1 Formel Q New part Integral is valid without restrictions.

3.3. Cubing / Meisterbock evaluation:

Regarding the milestones VFF / VFA the supplier will introduce, after agreement with
the responsible ŠKODA AUTO a.s. quality engineer (BTV), the current status of the
parts including complete measuring reports in order to provide evaluation on the
internal or external Cubing / Meisterbock. All the visual parts in the car interior and
particular fixing points are evaluated at Cubing / Meisterbock.

During this evaluation is also carried out correlation of the colour and gloss
measuring, if needed also other specific properties of the part.

The supplier is responsible for modification and approval of his supplies volume. The
supplier bears responsibility concerning the function, matching, appearance, haptic,
smell, throughput, fitment process capability, operator comfort (operating forces,
noises) and flexibility. The supplier together with the sub-suppliers carries out the
modification loops.

For Cubing / Meisterbock are supplied current samples in two versions (colour and
type agreed with the metrology of Cubing / Meisterbock). As circumstances may
require, more than two parts can be demanded.

Evaluation requirements for Cubing / Meisterbock:

Significant requirements are:

• Parts produced on serial tools or limited production tools / serial single tools
• Parts with corresponding marking
• Parts with particular measurement report together with:
- given fixing and reference points
- given sequential and functional contours
- dimension stability verification while comparing the nominal and actual values
- given settings

Deviations are displayed in a coordinates overview according to mathematical rules

about signs or using the overview perpendiculars (+ too much on part, - too little on
part).
When displaying sequential contours, e.g. according to cuts, it is needed to record the
course of the contours and display comparison of the regulation and the reality of the
data in the area in the rate of 1:1.
In principle, the data are edited and displayed to fulfill the report from measuring
(principle sketches), series numerical are not accepted. The method of representation
is agreed in advance together with the ŠKODA AUTO a.s. quality engineer (BTV).

10
3.4. Requirements for measuring and measuring performance

Positioning fixtures for 3D measuring

The measuring position of the part is primarily defined in the technical position (like
the part in the car). Exceptions must be agreed with ŠKODA AUTO a.s..

The design of the positioning fixtures for the 3D measuring must be according to
the standard 39D 690 - Werks-Norm für die Konstruktion von Bauteilaufnahmen /
Messaufnahmen (ehemals Handbuch 20).

The positioning fixture must enable scanning of RPS points in order to balance the
part directly on the measuring part. Secondary RPS points must be able to be
measured after single placing of the part into the fixed as well as free condition, i.e.
without fixation using clams either supports. Support of such secondary RPS point
must be designed as removable or shifting by 20mm.

The design of the positioning fixture of the supplier must be the same as the fixture
of Co. ŠKODA AUTO a.s., if ŠKODA AUTO a.s. has his own positioning fixture for the
particular part.

ŠKODA AUTO a.s. specifies a list with so called PRIO parts for the specific project,
the supplier must send them for approval to the quality department of ŠKODA AUTO
a.s., design proposal of the positioning fixture in the format 3D CAD compatible with
Catia V5.

The positioning fixture must be produced with accordance to the approved design
proposal which can be checked on site at the suppler by ŠKODA AUTO a.s..

The positioning fixture must be at the supplier at the latest by the date o f TBT VFF
ZP5/ZP7 based on the project plan.

Holes in metal parts

Holes in all the metal parts supplied to ŠKODA AUTO a.s. must be performed
according to the standard 39V 875 – Erstellen von Presswerkzeugen.

Measuring of parts
Regarding the measuring of the parts the supplier must use only SW which meets all
the requirements defined in the points below.
The measuring programme for measuring of the parts must be according to the PMP
points if they are available for the specific part and stored in KVS, measuring
principles defined in the PMP based on the VW 10126 standard must be followed
while measuring.

The direction of the normal deviation during measuring must be the same as the
direction defined in PMP.

The supplier defines a fixing plan for each measured part. Fixing plans for PRIO
parts to be provided in ŠKODA AUTO a.s. for approval.

11
ŠKODA AUTO a.s. reserves the rights to add other points above the range of the
ones defined in PMP.

The ŠKODA AUTO a.s. quality department provides a list with parts for which the
supplier will send measuring results to the SPL system. Measuring frequency and
results sending to the SPL system is once a week. ŠKODA AUTO a.s. reserves the
rights to change this frequency on the basis of the current needs.

The positioning of the parts and RPS measuring must meet the standard
VW 01055 – Classification of reference points (RPS).

Format of results of the measured values in SPL

The file of the measuring output must be a text format which is possible to read in
the SPL system. The output of the measuring elements must always contain at least
X, Y, Z, plus other items based on the type of the measured element, this does not
apply for distances.

Patterns for the acceptable formats of the measuring reports for the SPL system are
available on request in the quality department of ŠKODA AUTO a.s..

Requirements for cubing

For all parts must be cuing at the supplier including integration to the control plan,
deviations must be agreed in writing by the quality department ŠKODA AUTO a.s..

The positioning of parts in cubing must simulate the positioning conditions in a

car.

Required tolerances:
surfaces in area without relation to function ± 0,2 mm
outline and surfaces in area with relation to gaps ± 0,1 mm
basic surfaces and holes ± 0,1 mm
sizes of holes and cut-outs max. + 0,2 mm
basic frame - base ± 0,05 mm
acceptable total tolerance in assy incl. basic frame ± 0,2 mm

Material for cubing inserts: Required stainless steel: ČSN 17024 or EN 1.4031,
alloying: X39Cr13.

VW design regulation for cubing: 39D20501.

To perform reference elements for balancing of SMS as holes of ø20 with milled (or
grinded) front surface so that all the reference coordinates are accessible to the
measuring sensor from the measuring side of the part.

Identification of the measuring points and coordinate positions is done according to

the ŠKODA AUTO a.s. assignment and it is defined during the meeting about
dimensioning of the test equipment. The measuring data are always recorded and
processed electronically, manual data exchange is not accepted. Individual changes
must be agreed with the responsible quality engineer (BTV).
The way of measuring and fixing must simulate the actual conditions in a car (partial

12
Cubing) and it is a part of the product audit at the supplier.

3.5. Graining of mould / part:

The release for graining is done by the supplier in writing after approval with the
responsible quality engineer (BTV) and it is a part of the supplier’s timing plan.

3.6. Sampling

Initial samples and conditions for their release:

Also the requirement from Formel Q New parts Integral are valid without restriction.

Initial samples must be produced under the serial conditions by the use of the serial
equipment and are delivered to the Quality department of ŠKODA AUTO a.s. and
documented through the online system BeOn. The delivery dates for the initial
samples are approved by the Purchasing department and documented in the LION
system.

The use of the BeOn system is mandatory for initial and follow-up sampling. More
information is available at the B2B platform (www.vwgroupsupply.com).

The supplier is charged for additional costs arisen when not meeting the ŠKODA AUTO
a.s. requirements (e.g. not meeting the requirements for the serial production,
incomplete supply of required initial samples, incomplete documents for sampling,
sampling in another place than in the defined production site, delivery of samples to
wrong production site/ wrong unloading place, …). The supplier is obliged to inform
the company ŠKODA AUTO a.s. on time about any potential delay.

Incomplete documents as well as non-fulfilment of the technical specification

requirements leads to non-acceptance of the initial sampling report (total Note 6). For
parts with a sampling result 3 and 6, the supplier must carry out repeated/new
sampling.

Regarding the 0-series, a sampling result “Note 1” must be submitted.

For the initial sampling are submitted at least 5 parts (samples) including the initial
sampling inspection report (ISIR).
The exact quantity of parts is approved by the particular responsible component
engineer (BTV) in advance. On request also semi-finished products or individual
subcomponents of the part or a certain supply must be provided for the purpose of
the sampling (valid throughout the whole product service life time).

The initial sampling is required in case of:

- new parts
- each technical modification
- new and/or modified production facilities, tools/spare tools
- changed production processes/methods (internally or at the sub-suppliers)
- production relocation (internally or at the sub-suppliers, new sub-suppliers)
13
- longer production cut-off (> 1 year)
- new customer place of Volkswagen Concern

Sampling level according to VDA 2. Level 0: cover sheet, material data sheet,
certificate, e.g. for granulates, glues, colours. Level 1, 2 and 3: see VDA 2.

When unclear, the implementation and range of the repeated sampling has to be
discussed with a particular responsible component engineer (BTV) in advance.
Production conditions during the production of the parts intended for the sampling are
recorded. These are the basis for evaluation during 2DP (see also 3.7 – 2-day
production audit – 2DP).

If ŠKODA AUTO a.s. sampling does not confirm the test results of the supplier stated
in the ISIR and assessment is “Note 3” or “Note 6”, the supplier is charged for the
costs associated with the tests implementation. If there is a need to carry out an
inspection of the supplier process when “Note 3” or “Note 6”, the supplier may be
charged (e.g. travel expenses).

If the supplier declares and identifies all deviations from the technical specifications in
advance, there is no financial charge (e.g. unfinished BMG tests, missing graining,
incorrect function of SW, etc.).

Initial sampling inspection report content:

The documents for the initial sampling must be complete in the BeOn system.
Among others, these include:
- Completely filled-in cover sheet of the initial sampling report with appendix
according to the VDA 2 and the drawing document/specific quality requirements
- Production location with a number of the supplier (incl. index) and DUNS No.
- Part history
- Exact chemical composition of the used materials including all the substances of the
individual parts via the IMDS. Regular data transfer into the BeOn system may occur
in case of accepted records only. If the data about the material acceptance by ŠKODA
AUTO a.s. is not available in the IMDS, the initial sample is automatically assessed
with “Note 6”. In this case, a repeated sampling must be carried out. The recording
into the IMDS for complete parts and assemblies must be carried out according to the
rules about data feed for complete parts and assemblies
- Material safety data sheet according to the EU regulation on hazardous substances
for materials, fixtures and products, established under the European law on
hazardous substances
- The transfer of measured values for non-metal material interior parts is carried out
according to the valid standards. The results must be from a certified lab.
- The filled-in measuring report including drawing, or principal sketch with marked
measured points – no numeric columns. All unobserved characteristics or out of
tolerances dimensions or non-achievement of the defined values for the function tests
need to be agreed in advance with a particular designer. Deviations from the technical
specifications must be recorded in the ISIR documentation. If a deviation has been
issued by the ŠKODA AUTO a.s. R&D, this must be attached.
14
- Complete control report involving all the tests of single parts, function tests, surface
quality tests etc.
- Submission of the process capability for the defined significant features
- When sampling the assemblies, it is necessary to define sub-suppliers. The supplier
is obliged to provide results of individual parts/components sampling done at the
sub-suppliers and attach to the sampling documentation for ŠKODA AUTO a.s..
Within the supply chain, the sub-supplier will provide results of sampling for the
customer to the supplier and documents related to the sampling. On request of
ŠKODA AUTO a.s., all the sampling documentation within the supply chain shall be
provided to the appropriate Quality department of ŠKODA AUTO a.s..
- Weight data of parts/assemblies are always defined in grams per piece (g/pc).
- In case of repeated sampling, the part number with a previous generation index
level and particular number of the ŠKODA control report is recorded in the BeOn
system in the field “Previous ISIR”.

Delivery address of initial samples:

The initial samples for sampling need to be delivered according to the time schedule
and in the defined quantity to the particular customer plant, where the sampling will
be carried out. It will be informed by the Purchasing department of ŠKODA AUTO a.s.
a.s. while ordering. The packing units of the initial samples must be clearly identified
“Initial sample”.

3.7. 2-day production (2DP)

Requirements from Formel Q New parts Integral are valid without restriction.

Production release: obligation of the supplier to store the data about the stability of
the machines and the devices, the production and the products (Cm, Cmk ,Cp, Cpk,
SPC, …).

Product audit: the supplier must carry it out for at least 5 pieces of the product.
Destruction tests are required for 1 piece minimum. Visual inspections, function tests,
dimensional tests etc. are carried out for 5 pieces, if the customer does not specify
otherwise.

Product weight: if the production weight of the parts does not correspond to the
calculated weight defined in the drawing document, after analyzing it, is the supplier
obliged to inform the particular operator of the R&D department of ŠKODA AUTO a.s..
The final product weight has maximum tolerance +-5%.

3.8. Changes in capacities during current serial production

In case of significant rise or drop of the previously planned production capacities

(based on a nomination letter +15%) there needs to be carried out repeated 2DP. The
procedure needs to be discussed with the responsible quality engineer (BTV).

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4. Quality actions during serial production
4.1. Continuous guarantee of process capability

Chapter 4.1 standards of the Formel Q-Concrete valid without restrictions.

Additional requirements for process capability:

ŠKODA AUTO a.s. expects from the supplier and from the whole supply chain
consistent assurance of robust production process as per VDA and Formel Q.
Significant product signs are defined in the drawing documentation and the Specific
quality requirements of R&D, if available for the particular part.
The supplier must define production/process conditions in order to ensure the
required process capability to reach zero defect regarding the product and to describe
them in the production/process control plan.
For continuous check and approval of the process capability focused on selected
significant signs are valid the following boundary values:
• preliminary process capability Ppk >= 1,67
• long-term process capability Cpk >= 1,33, with continuous improvement
(goal: Cpk >= 1,67)

Both short-term and long-term capability is checked.

For SW relevant parts including assy supplies (JIT/JIS e.g. frontend, bumper,
dashboard) there is SW management to ensure up-to-dateness based on the
requirements of the Volkswagen Concern production plant – up-to-dateness of the
supplied SW/HW incl. appropriate SW/HW updates.

4.2. Product safety, product liability

Chapter 4.2 standards of the Formel Q-Concrete valid without restrictions.

4.3. Identification and solving of issues

Chapter 4.3 standards of the Formel Q-Concrete valid without restrictions.

4.4. Continuous improvement programme

Chapter 4.4 standards Formel Q-Concrete valid without restrictions.

Complaints from 0 km:

Only released sampled parts can be delivered to the series.

Claimed parts must to be sent to the supplier to carry out a prompt failure analysis.
Root causes, corrective actions and implementation dates are defined for failures. The
effect of the actions implemented is then checked. The same procedure refers to the
sub-supplier, too.

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The complain process is done online via the KPM Halle portal.

Current actual ppm values for the 0 km are available in the SCQ system on the KBP
portal “Process description to process insufficient supplies (claims from field) between
ŠKODA AUTO a.s. and supplier” (www.vwgroupsupply.com).
The agreed ppm values are obligatory and are taken into account when evaluating the
supplier – here apply FORMEL Q agreements (Formel Q-Concrete valid without
restrictions).

Sorting and re-working:

Only faultless parts (released parts) can be delivered to the series.

After detecting a failure on purchased parts in the ŠKODA AUTO a.s. plants, the
supplier must immediately and without delay, provide an expert assistance on site,
sorting activities, spare supplies or rework activities. If the supplier cannot ensure this
service by himself without delay, the purchased parts quality department of ŠKODA
AUTO a.s. is competent to implement a 100% check of the parts by an external
company at the production line by well-known Troubleshooting and additional cost is
transferred on the supplier in case his fault is proved.

When repeated issues occurred with the quality of supplies, the purchased parts
quality department ŠKODA AUTO a.s. can initiate a 100% check of the supplies via
WARENFILTER and the supplier is obliged to ensure the 100% check of the supplies
via this filter.

Other specifications of the warranty fulfillments remain the same.

Field complaints:

For claimed purchased parts from the field (complaints from contract services), the
supplier must ensure a prompt analysis, implementation of necessary corrective
actions and verification of the implemented measures efficiency, as well as required
measurements at the sub-suppliers.
To avoid failure repeating, reworking of the current process FMEA at the supplier is to
be always ensured. It is subsequently submitted to the quality department ŠKODA
AUTO a.s..
Besides these issues, which must be agreed with a responsible worker for parts, the
supplier is also obliged to ensure the NTF process (NTF no trouble found) according to
the VDA Analysis of defected part from the field for the NTF contribution bigger than
30%, based on minimal 15 defected parts per year. Other information related to this
process can be found in a document “Rules for further charge resulting from field and
0-km complaints caused by supplier / Regelung zur Weiterbelastung von
lieferantenverursachten Feld- und 0-km Beanstandungen“ in KBP.”.
The complaints are processed via the online portal KPM Halle if available to both
sides. Defect causes and accepted corrective actions are communicated through the
8D report.
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At the supplier is implemented an effective system of evidence/archiving of analysed
parts.

Early warning system

Chapter 4.3.2 Formel Q-Concrete valid without restrictions.

Obligation for own monitoring of the customer field

Chapter 4.3.3 Formel Q-Concrete valid without restrictions.

Customer field monitoring evidence:

Each supplier must know how his products behave when being used. The supplier
must be able to prove his activities which are running in order to be informed about
the performance of his parts when being used. For this purpose serve parts analyses
obtained from the field claims in the reference market. Moreover, the failure rate can
be monitored through the list of spare parts on a monthly basis worldwide.

Long-term quality:

The supplier participates actively on removing failures led by ŠKODA AUTO a.s. when
parts are being used (vehicle service life time), if the time of its usability (service life)
has not been limited by contract (generally technical requirements of R&D e.g. for
used parts such as brake lining or rubber wiper blades).
The supplier is obliged to carry out his own specific tests for volumes of supplies
important from the point of view of COP (internationally valid legislations) (see also
3.1). These tests are recorded and results sent to a contact person for COP in ŠKODA
AUTO a.s..

4.5. Change management

Chapter 4.5 Formel Q-Concrete valid without restrictions.

Immediate implementation of changes released by sampling by a responsible quality
engineer (BTV) is expected.

4.6. Requalification

Chapter 4.6 Formel Q-Concrete valid without restrictions.

Documentation: Tests and their documentation according to the ISO TS 16949,
chapter 8.2.4.1, need to be carried out at once in three years, unless otherwise
defined. For parts with the D/TLD documentation must be followed an interval for
requalification performance at least once a year (see Formel Q capability).

4.7. Lessons Learned

Chapter 4.7 Formel Q-Concrete valid without restrictions.

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4.8. Solving of liability for defect issues and solving of special issues

After being released by the customer, the supplier is still responsible for the product
safety and function as well as for informing him in case of any deviations from legal
requirements. Chapter 4.8 Formel Q Concrete s valid without restrictions.

4.9. Supplier technical review (TRL)

Chapter 4.9 Formel Q-Concrete valid without restrictions.

4.10. “Critical supplier” programme

Chapter 4.10 Formel Q-Concrete valid without restrictions.

4.11. Applications review (AR)

Chapter 4.11 Formel Q Capability is valid without restriction.

The application review is usually done at manufacturers of plastic parts for interior
and exterior.

4.12. External service providers

The supplier must have all equipment necessary for analyses. Also external service
providers may be invited to the analyses in exceptional cases (universities,
institutions, external laboratories). These external service providers must submit a
valid certification for these specific activities. The supplier is responsible for
documentation management towards ŠKODA AUTO a.s..

4.13. Supplier qualification to rating “A”

Formel Q Concrete valid without restriction.

5. Additional information/requirements
5.1. Reasons to charge the supplier, charge-back by customer quality
department

- Problem analysis (PA): confirmation of supplier’s fault

- Supplier self assessment (SL): repeated self assessment result < 90% or non-
confirmation of the self assessment result during the customer process audit. The
applicant for the order is not charged for the first audit cost.

- Supplier technical review (TRL): TRL result RED

- Process / product audit (VA):

1, “C“ – supplier evaluation (quality not capable)

2, Repeated evaluation “B“ – see Nomination agreement

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 - Sub-supplier management (UL): result RED (transferring costs to the direct
supplier)

- Quality target agreement: the target agreement about decreasing the failure
rate has not been fulfilled (HSF, ppm, SF, audit points)

- Vorcheck: result RED

- 2-day production (2DP): result RED or repeated YELLOW

- Production relocation: unplanned, unannounced or unapproved production

relocation

- Sampling of parts: re-sampling – comments to the documentation, incomplete

documentation, differences between the test results, the deadline of the re-
sampling was not met, none or very small improvement after re-sampling, the
deadlines defined at the „Readiness meeting“ was not met.

- Occurrence of defects C1, B, B1, A, A1 found by the customer at check points,

during drive tests DKA (Dynamische Kurzaudit – extended drive test) and car
audits.

- Car audit: the audit notes not reached during the car audit

- HSF– supplier responsibility, complaints from customer field: extra costs

incurred at the customer plant, VW Concern

Transferring costs to the supplier - quality extra costs for actions done at
the supplier

- Travel expenses incl. accommodation costs

- Daily expenses: expenses for creating reports according to the tariff rate
(occupational category of employees)

- Output: the number of man-days for the auditors of the Volkswagen Concern who
are on duty at the suppliers

- Critical supplier programme: integration into level 2 or 3

5.2. Requirements for internal/external auditors at suppliers

The lead auditor must be an iternal employee of the plant/company. Any differences
must be agreed in writing with a particular auditor of the Volkswagen Concern.

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5.3. Quality technical requirements (QTR)

Chapter 2 and 3 Formel Q Concrete and chapter 2.2 Formel Q New parts Integral valid
without restriction.
The ŠKODA AUTO a.s. Quality department reserves the right to carry out QTR
including actual check of the status on site at the supplier.

5.4. Use of recycled material

The use of recycled material is allowed only with a writing approval of the ŠKODA
AUTO a.s. R&D. The information about the recycled material ratio must be specified in
the drawing document of the product, sampling, IMDS. Repeated use of the recycled
material is prohibited.

5.5. Requirements for observance of the ESD rules at the suppliers

Requirements for fulfilment of the ESD rules at the suppliers of Assembly units
(bumpers, Frontend, Cockpit, assy headliners and sunroofs, seats, door modules,
powertrain)

It is highly necessary to follow the below stated rules while assembling ESD relevant
parts to assembly units based on the Specific quality requirements and standard VW
80132 (ESD-Richtlinie für Automobilhersteller):

Logistics: - check of ESD packing regarding damage at receipt from suppliers

- handling with parts in the designated area (EPA-zone)
- when repacking into internal packing units to follow basic rules for ESD
protection: earthed work area, ESD shoes and coats for operators, if
defined to use gloves as well
- to use ESD packing material for internal handling

Production: - to assemble ESD relevant parts only in designated areas which are
protected against unauthorized use (EPA)

- before entering the zone where ESD relevant parts are assembled, to
ensure testing of operators, at least once a shift, incl. records
- to provide ESD shoes and clothes, maybe also gloves, for operators
handling with the parts or who are in the EPA-zone
- in case of for final electric testing of parts, to ensure
appropriate inspection and maintenance for the devices

Before entering the zone where are ESD relevant parts assembled, to ensure
testing of operators, at least once a shift, including records. To ensure training in all
levels of the operators at all the work places.

For more details see the standard VW 80132 available to all suppliers at KBP.

21
 In case of further inquiries please contact:
Denis Mach, GQD-3, denis.mach@skoda-auto.cz

Terms and abbreviations

3D Three dimension
AE Abweicherlaubnis (Deviation permit)
Supplied Parts/products to be provided by ŠKODA/Volkswagen to the supplier for further treatment/processing at
products/parts the defined cost or free of charge.
BeOn System for online sampling of parts (Bemusterung Online)
BMG Release, approval of design sample
BTV/TV Responsible component engineer/technical responsibility ŠKODA AUTO a.s.
CAD Computer Aided Design (design with computer support)
Cpk Index of process capability
COP Conformity Of Production
ČSN České státní normy (Czech national standards)
EMPB Erstmusterprüfbericht – ISIR (Initial sampling inspection report)
HSF Hallenstörfälle (Defects on part at 0km)
HW / SW Hardware / Software
OK All correct
Supply chain Also sub-supply chain, Supply Chain: The supply chain include all planned and implemented
• Sub-suppliers of purchased parts,
• Defined creators of values (dislocated work place, dislocated production site,
production partner, sub-supplier, defined third side within production site)
• Development services,
• Test services and laboratories,
• Defined supporting function e.g. logistics, maintenance or
• Other services which may have a direct influence on the product quality or
production process.

EN European standards
KBP KonzernBusinessPlatform (Concern portal for suppliers)
KPM KonzernProblemManagement (VW Concern system)
KVS System for design data management of VW Concern
LDB Lieferantendatabank – database of supplier at vwgroupsupply.com
NTF No Trouble Found
PMP Plan of measuring and checking points
Ppk Preliminary Capability. Preliminary process capability
ppm Parts per Million. Defines a rate of defected parts to 1 million of supplied parts within a given period
QDX Quality Data Exchange (standard VDA to the data exchange for the 0 km / service network – field online
QFD Quality Function Deployment
QPNi Qualification programme for new parts / Formel-Q New parts Integral
QS Quality assurance
QTR Quality Technical Requirements
SCQ Quality assurance and parts monitoring system (Quality status)
RPS Reference Points system
SET Simultaneous Engineering Team (cross functional team, a group of representatives from various
departments of the company which are involved in the process of the product creation)

SMS Coordinate measuring device

SPL System for evaluation, presentation and work with measuring results on 3D SMS machines press shop
and weld shop
SW Software

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 Selected parts Parts being defined in written by ŠKODA/Volkswagen as individual parts or assemblies including a year
(setzteile) volume of purchase and prices in the framework agreement contracted with a third supplier which are;
however, purchased or being available via the system /module supplier. These “selected parts” are
sampled and released by workers of the system/module suppliers responsible for assemblies.
Volumes of the selected parts refer to parts and volumes which are submitted to the supplier by the
purchasing regarding the place of origin.

TBT VFF Teilebereitstellungstermin Vorserien-Freigabe-Fahrzeuge (delivery date of parts pre-series, release, car)

TL Technical delivery conditions

TLD Technical guideline for documentation
UL Management of sub-suppliers
VDA Association of AUTO A.S.motive industry
VFF Cars released to pre-series: with parts from serial tools before PVS
Zákazník ŠKODA AUTO, a.s.
ZP5 Zielpunkt 5
ZP7 Zielpunkt 7
ZSB Assembly of parts

Further definitions of terms see Formel Q-Concrete.

23
 Overview of versions
Version Date Description
1.0. 18.10.2010 Initial version, lastenheft proposal based on Audi AG
Work group - changing to Škoda Auto requirements
2.0, 2.1. 22.9.2011 New Škoda logo
Changing wording to Škoda requirements
Removing non-valid documents which were referred to
Removing references to documents which are already in FQ concrete
Adjusting single font type
Approving by head of Škoda Auto quality department, signed by Dr. Bort - publication, 3
language versions
2.2. 10.5.2012 Changing texts: p. 7 - specifying requirements for DUNS numbers
p. 9 - Audit note (vehicle audit)
p. 15 - adding text Note 3, individual notes, overall note
p. 17 - process audit - removing scoring system
Saving LAH into KVS and employee portal
Reviewing text format
2.3. 16.11.2012 Changeover to KBP - p. 3 - removing reference to quality documents valid on B2B
Changing texts: p. 3 - LAH.893.909.A changing index to C
p. 16 - adding text to tests results according to TL1010
Removing logo "Qualitätssicherung" from all headings of all pages
2.4. 5.3.2013 Changing texts: p.4 - instead "News" is "INBOX"
p.19 - Sorting and re-working - Correction of text
2.5. 27.6.2013 Changing texts: p. 1 - Updating names of Škoda's managers
p. 2 - Replacing "costs" by "extra costs"

p. 3 - Purchasing conditions for production material - "for Škoda Auto"

deleted

p. 11 - Completing sentence - requirement for Lion TGS

p. 12 - Quality certificate for pre-series - correcting document's title
p. 14 - Deleting sentence: The VDA volume 4.1 and the Škoda regulation…

p. 17 - Deleting sentence: Checklist “Requirements for production and test

technology…

p. 19 - Deleting title of VDA volume

p. 21 - Replacing "anytime" by "by mutual agreement"
2.6. 18.2.2014 Changing texts:  p.  1 - Updating names of Škoda's managers
                         p.  6 - Content
                         p.  15 - Initial sampling inspection report content – correction of the text
                         p.  21 - Point 4.14. – new subject
                         p.  22 - Updating the contact persons
3.0. 1.3.2016 Complete changes acc. to the new versions of the Formel Q documents: Formel Q Concrete,
Formel Q Capability, Formel Q New parts Integral

Changes mainly include:

Changes to the text in the whole document acc. to Formel Q
Removal of invalid references/chapters
New chapters or new titles of chapters, different numbering, etc..