Audit

Appendix to Formel Q Capability

The Formel Q Capability Contains Agreed Contract
Requirements for the Companies of theses and also
Components of the

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1. Edition January 2011

2. Revised edition June 2015

This part of the contract will only be available to suppliers in the current version
electronically through the Volkswagen Group Business Platform under
www.vwgroupsupply.com.

Up to date valid and binding documents are generally available on the

aforementioned Group Business Platform.

The German language edition of the Formel Q Capability is binding.

Property of Volkswagen AG
Duplication, usage and distribution are only permitted to suppliers within the
Supply Chain of the Volkswagen Group.

The brochure is copyright protected. All rights are with Volkswagen AG.

Issued: Volkswagen AG
Group Supplier Quality Assurance
Group Quality Supplier Audit
Letterbox 1467/0, 38436 Wolfsburg
Germany

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Contents
 

1 Process Audit (VA) -------------------------------------------------------------------------------4

1.1 General ---------------------------------------------------------------------------------------4
1.2 Evaluation of Process Audit Results ---------------------------------------------------5
1.2.1 Overall Rating of Process Audit ------------------------------------------------------4
1.3 Upgrading criteria --------------------------------------------------------------------------6

2 Additional Formel Q Capability Requirements that exceed VDA 6.3

Requirements-----------------------------------------------------------------------------------------7

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1 Process Audit

1.1 General

The Process Audit is used to evaluate the Quality Capability of Suppliers. The
Process Audit is conducted according to VDA 6.3 and uses the questions of the
Process Elements P5 – P7.

Additionally there are further requirements listed in the section of this document
“Additional Formel Q Capability Requirements that exceed VDA 6.3
Requirements”.

The Process Audit focuses on the requirements of the Customer for Products or
Product Groups and related manufacturing Processes. This also applies for
Bought-In Parts and Outsourced Processes.

Insufficient compliance could put an existing certification of the QM-System into

question and could lead to a Customer “new business on hold” status. (See
Formel Q Konkret).

1.2 Evaluation of the Process Audit Results

The Evaluation for “EP” is described in VDA 6.3 for each Product Group.
Additional results from the Product Audit conducted at the same time will be
taken into account. The Grading rules must be applied to determine the overall
result (EP per Product Group) for quality capability.

1.2.1 Overall Rating of Process Audit

Grading guidelines for Quality Capability with Product Groups EPN are according
to VDA 6.3.

Reasons for Grading from A to B, despite grade of fulfilment EPN>=90%:

 At least one Process Element P5-P7 or Process Step E1-En is rated with
less than <80%.
 Grade of fulfilment for at least one Sub-element of P6 (EU1-EU7):
Process input, Operations content, Process support, Material resources,
Grade of effectiveness, Process result, Transport and Parts Handling is <
80%.
 At least one of the * - questions is rated with 4 points or less.
 At least one of the questions from the Process Audit is rated with 0 points.
 Evaluation according to the generic approach for Process responsibility,
Target orientation, Communication and Risk Orientation is < 70%.

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Additional guidelines according to Formel Q Capability version 8 for
downgrading from A to B, despite grade of fulfilment EPN>= 90%.

 A System Certification acc. to either ISO/TS 16949 or VDA 6.1 is not

available.
 During the Product Audit a B-class fault or a systematic C class fault was
identified.
 Yellow classification of an Applications Review.
 Risks within the supply chain which will have an impact on the quality of
products of the direct supplier to Volkswagen were identified. This will lead
to a downgrading of the direct Supplier. An indicator for such risks could be
"amber" ratings of the Sub-supplier, e.g. during a Sub-Supplier Audit.

Reasons for Grading to C, despite grade of fulfilment EPN>=80%

 At least one Process Element P5-P7 or Process Step E1-En are rated with a
grade of fulfilment <70%.
 Grade of fulfilment of the Sub-Elements of P6 as e.g. Process Inputs,
Operations Content, Process Support, Material Resources, Grade of
Effectiveness, Process Results, Transport and Parts Handling rated with <
70%.
 At least one *-question rated with 0 points.

Additional downgrading guidelines according to Formel Q Capability version 8

despite grade of fulfilment EPN>=80%:

 Target dates for Project Investment / Improvement programmes are not

due to be fixed by the Supplier before SOP.
 A-class faults or systematic B-class faults identified during Product Audit.
 More than 2 questions for the verification of D/TLD parts are evaluated
with “No” (if no risk for complying with law requirements or meeting the
parts functional requirements exist).
 A question in D/TLD documentation is answered “No“ if a risk for
complying with law requirements or meeting the parts functional
requirements exist.
 Identified Risks within the Supply Chain which will directly impact on the
Quality of Products from the Direct Supplier delivered to Volkswagen.
This will lead to a downgrading of the Direct Supplier. An indicator for
such a risk could be a “red” rating of the Sub-Supplier, e.g. during a Sub-
Supplier Audit.
 Red classification of an Applications Review.

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Reasons for post-audit Grading to C

 Implementation of the Improvement Programme refused or not realised.

 Self Audit < 80%.
 Quality targets of the Customers not achieved within agreed deadlines (“A”-
Rating).
 Risks within the Supply Chain identified which will directly impact the Quality
of Products from the Direct Supplier delivered to Volkswagen. This will lead
to a downgrading of the Direct Supplier. An indicator for such a risk could be
a "red" rating of the Sub-Supplier, e.g. during a Sub-Supplier Audit.
 A Supplier can also be rated as “C”-rated after any Audit, if there is a
negative rating, or a Special Product Risk identified during a TRL, D/TLD,
Problem Analysis, or a visit by a VW-Auditor.

Effect of the Q-Performance on the Q-Capability

An existing C rating for Quality Performance (Level 3 in the program "Critical

Supplier") may result in justified cases to a re-grading in the quality capability.
A reasonable case can be: The deficit in the Q Performance can be clearly
linked to issues in the Q Capability.

The Supplier is informed in writing by the Customer Audit Department about the
rating result.

1.3 Upgrading Criteria

Generally an upgrading can only be achieved through a Customer Audit at the

manufacturing site of the Supplier when the required grade of fulfilment as
specified above, is reached.

An upgrading from C to B will only be established once a “robust B” rating

during a Customer Audit is achieved (i.e. > or = 85%).

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2 Additional Formel Q Capability Requirements that exceed
VDA 6.3 Requirements
These requirements are additions to questions of VDA 6.3 and must be
considered during evaluation of Potential Analysis, Process Audits and for the
Sub-Supplier Audits(UL).

Reference
question
Evaluation Relevant Requirements
in
VDA 6.3
5.1  Outsourced processes (e.g. external suppliers, other owned manufacturing sites
etc.) and extended external work benches are also to be considered.
5.2  A product safety responsible representative (PSB) for each individual step in the
supply chain must be nominated.
5.4  Documentation of Materials and Masses (weights).
5.7  The audits in the supply chain must by conducted by certified VDA 6.3 auditors.
(see auditor qualification in Section 3.2 of FQF 8.0).
6.1.4  Labelling according to Customer Regulations (material card VDA 4902),
plausibility (Bar Code content)
6.2.3  Controls for Process Influencing Parameters must be protected from
unauthorised access.
6.2.4  Technical documentation for D /TLD parts available acc. to valid change level,
identified as D/TLD and specific D/TLD features outlined.
Comment*: If the supplier uses a different identification for his documents and
records, he is required to utilise a correlation matrix for the obligatory
identification symbols (e.g. overview matrix with identity symbols for each
individual customer and their internal identity symbols); the document shall be
kept as a controlled document.
 Full completion of the Catalogue of Requirements
o Audit Plan.
o For D/TLD acc. Formel Q Capability or equivalent.
o For D/TLD at least 15 years archiving.
 Defining and monitoring of the Improvement Programme.
 Including Sub-Suppliers.
 Formal written confirmation of legal conformity parts, assemblies etc.
 Data on IMDS complete and up-to date.
 Volkswagen Specifications, especially VW 91101, Material List see IMDS.
(www.mdsystem.com)
 Tracking list for all “D/TLD parts of the Customers.”
 Conducting a D/TLD-Self Audit at least every 12 months.
 Input the date of the last D/TLD Self Audit in BeOn.
 Specifications, Sampling Documents for Customers.
 Considering the ABG-requiring components as special features.
 Compliance of labelling of Products with National and International conformity
requirements. (e.g. ABG-requiring components CCC, ECE, DOT…)
 Controlling the functional relevant dimensions according to the catalogue for
functional dimensions.
6.2.6  Identification according to Customer Standards.
 (Material identity card acc. to VDA 4902), plausibility (barcode contents).

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Reference
question
Evaluation Relevant Requirements
in
VDA 6.3
6.4.2  Suitability of Inspection Processes – consideration of Measuring accuracy in the
Inspection Processes (VW10119).
 VDA Volume 5.
6.5.2  Process Capability review for Measurable characteristics (VW 10131)
6.5.4  Compliance of labelling of Products with National and International conformity
requirements. (e.g. ABG-requiring components CCC, ECE, DOT…)
6.6.1  The Quality Performance in series needs to be continuously assessed and
documented. Corresponding data Information and experiences are to be used
for product improvement, production optimization and supplier evaluation.
6.6.2  Outsourced Process Steps (additional Product risks within the Transport chain
e.g. caused by Parts Handling, Transport Routes, etc.)
 First-In, First Out. (FIFO)
6.6.3  Label position (card folder, holder). Removal of out of date Labels.
7.1  QM-System Certification ISO TS 16949 alternatively VDA 6.1
 Agreement to target Zero Failures according to Formel Q Capability
 Implementation of requirements of Formel Q-New Parts Integral (QPN) incl.
approval of the 2 Day-Production Run.
 Data transfer (e.g. VDA Data Transfer Standard 4927) according to EDI
Implementation Guidelines Volkswagen AG.
 Certificates supporting conformity with National and International regulations
(e.g. ABG requiring component CCC, ECE, DOT, etc.). Withdrawal of
Certificates / Releases must be immediately reported to Customers plants and
the responsible people at Purchase and Quality Assurance Departments of
Volkswagen Group and involved companies.
 The current quality performance shall be evaluated in FQF Self-Audit report
(including Q-performance, customer ratings).
7.2  Maintaining the supplier database (LDB-B2B): among others Production
Location, Contact data, Performance Range / DUNS No. / KRIAS No.
 Access approval for the VOLKSWAGEN Group Communication Platform and
other brand-specific portals.
 Initial / Follow-up sampling for each individual location with DUNS No. of the
producing manufacturing site.
 Obligation to keep the parts history up to date (see VW01155 / VDA Volume 2)
7.4  In House essential analysis / testing capabilities. (Laboratory, Testing Facilities,
Personnel)
7.5  The process of Failure Analysis is implemented. Mandatory requirement: VDA
Volume "Failure Analysis".
7.6  External Qualification of at least one Senior Management member for the
basics of Product Safety and Product Liability law.
 Nominated Product Safety Responsible Associate to be entered into the
Supplier Database (Group Business Platform - LDB) for each site specific
name.
 Knowledge of the function and purpose of use of the product in the vehicle.
 Self Audits must be conducted by VDA 6.3 certified Auditors (see auditor
qualification in Section 3.2 of FQF 8.0).

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