Delphi Technologies

Aftermarket
Customer Specific
Requirements

For Use with ISO 9001:2015

and IATF16949:2016

Revision 9
Effective 01 Feb 2018

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Introduction

In addition to being an introduction to Delphi Technologies Aftermarket requirements

for all direct material suppliers this document is also structured as a companion
document to ISO 9001:2015 and IATF 16949:2016. Some sections within this
document are numbered to correspond with the paragraphs to ISO 9000/IATF 16949.
The requirements of the normative reference documents listed below are also
applicable. In addition, certain other Delphi requirements for Suppliers are also set
forth below.

Exceptions to any of these requirements must be approved in writing by the

appropriate Delphi functional area contact. Contact your Delphi buyer with any
questions regarding this document.

1. Scope

This document applies only to external direct material suppliers to Delphi Technologies
Aftermarket.

The English language version of this document shall be the official version. Any
translations of this document are for reference only.

Copies of this document are available at: www.delphi.com/suppliers.

2. Normative Reference Documents

The following reference documents are vital to the development of a quality system
that meets Delphi’s standards. Therefore, the Supplier shall follow the requirements of
the following documents:

Production Part Approval Process, PPAP

Statistical Process Control, SPC
Potential Failure Mode and Effects Analysis, FMEA
Advanced Product Quality Planning and Control Plan, APQP
IATF Guidance to ISO/TS16949: AIAG Edition.
APQP Measurement Systems Analysis, MSA
AIAG CQI-8: Layered Process Audit Guideline
AIAG CQI-9 Special Process: Heat Treat System Assessment
AIAG CQI-11 Special Process: Plating System Assessment
AIAG CQI-12 Special Process: Coating System Assessment
AIAG CQI-14: Consumer-Centric Warranty Management
AIAG CQI-15 Special Process: Welding System Assessment
AIAG CQI-16: ISO/TS 16949 Guidance Manual
AIAG CQI-17 Special Process: Soldering System Assessment
AIAG CQI-18: Effective Error Proofing
AIAG CQI-19: Sub-Tier Supplier Management Guideline
AIAG CQI-20: Effective Problem Solving Practitioner Guide

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 AIAG CQI-21: Effective Problem Solving Leader Guide
AIAG CQI-22: The Cost of Poor Quality Guide
AIAG CQI-23 Special Process: Molding System Assessment
IATF Guidance to ISO/TS16949: AIAG Edition.
Automotive Certification Scheme for ISO/TS 16949, Rules for Achieving IATF
Recognition.
Technical Specification ISO/TS 16949
Delphi Global Technical Requirement - GTR

The latest edition of the reference documents listed above applies unless otherwise
specified by Delphi. Copies of all reference documents except those specific to Delphi
are available from the AIAG at the following link: www.aiag.org. Copies of ISO
documents are also available from the American National Standards Institute (ANSI) at
http://www.iatfglobaloversight.org/publications.aspx.

3. Terms and Definitions:

AIAG – Automotive Industry Action Group

Family Parts - Groups of parts processed on the same production line, using the same
control plan, PFMEA and process equipment. The parts differ only in end item value.
PPAP for the “family” is approved by using the extreme values of the “family”
specification to define the “family” boundary.

ASN - (Advanced Shipment Notification) - An Electronic Data Interchange (EDI)

transaction that provides the receiving company with specific detailed information
about the shipment in advance of delivery.

FTQ - (First Time Quality) - A measure of the number of pieces rejected in a

manufacturing process versus the total number of pieces attempted. FTQ can be
measured at any step in the manufacturing process where parts are rejected. FTQ is
reported in parts per million (PPM) defective.

OTIF - On-Time-In-Full which relates to Delphi Technologies Aftermarket delivery

expectations

PRR - A Delphi Problem Case (PRR) is issued to suppliers to formally report a

Quality Issue.

Site - A specific supplier physical location under one address, such as a

manufacturing plant, that can be assigned or has a DUNS or User Block number.

SQD - (Supplier Quality & Development Engineer) - Group of engineers within Delphi
responsible for managing current production quality issues and continuous
improvement with Supplier.

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Sub-supplier - Providers of production materials, production or service parts,
assemblies, heat-treating, welding, painting, plating or other finishing services directly
to any Delphi Supplier.

MCA - Manufacturing Capability Assessment is an audit conducted at the supplier

premises by the SQD Engineer that provides an audit score and is used to develop
corrective action plans (CAP). Prior to the actual audit, “New potential supplier” MCA is
typically required.

Immersion improvement During improvement period based on CAP, immersion

improvement might be required by Delphi SQD to speed up CAP progress to make
sure the key projects can launch on time.

EDI - Electronic Data Interchange (EDI) is the computer-to-computer exchange of

business documents in a standard electronic format between business partners.

PSO - Product Safety Officer is the requirement of Delphi Technologies Aftermarket

for OEM direct material suppliers, such suppliers must identify the post and provide
that person’s contact information to Delphi Technologies Aftermarket SQDE.

SOP - Start Of Production

QFS - Quality Focus Supplier

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ISO 9001 The IATF 16949 standard is a supplement to ISO9001, hence, ISO9001 clause numbers
Clause are referenced.

4.3 Quality Management System. All ISO9001 or IATF16949 or ISO14001 requirements

and all of the requirements of this document shall be integrated into the Supplier's
quality system. Delphi requires its Suppliers of automotive products and services to
have a quality management system certified to ISO9001 (unless otherwise authorized);
with the ultimate objective of becoming certified to both ISO 9001 and IATF16949.

4.4 General Requirements.

Supplier’s entire facility shall be registered to the applicable standard. Delphi satisfies the
goal of Supplier conformity to ISO 9001:2015 and preferred IATF16949/ISO14001 as
follows:
a. Registration to ISO9001 or IATF16949 for Quality system applies to
Suppliers that manufacture direct product or materials for Delphi.
b. Registration to ISO14001 for Environment system applies to Suppliers
that manufacture direct product or materials for Delphi. If supplier
doesn’t have it, supplier can provide a plan before the SOP, to show
how they get ISO14001 certificate if agreed upon the implementation of
the standard between Delphi and the Supplier.
c. Delphi shall be added to the scope at Supplier’s initial certification or
recertification.
d. Only accredited certification bodies shall be used for registration to
ISO9001 or IATF16949 or ISO14001.
e. Every manufacturing site of a Supplier shall be individually registered
either by single site or by corporate scheme. (See IATF Certification
Reference or consult the certification body.)
f. A clear summary definition of what product value added process shall
be included in the registration scope (example: manufacturing,
assembly, etc.) along with the address for each manufacturing site.

7.5 Control of Records. Production part approvals, tooling records, purchase orders and
amendments shall be maintained for the length of time that the part (or family of parts) is
active for production and service requirements, plus one (1) calendar year, unless otherwise
specified by Delphi for the respective products. This includes any Delphi owned tooling.

Production inspection and test records (e.g., control charts, inspection and test results) shall
be retained for one (1) calendar year after the year in which they were created. Records of
inspection shall be maintained for each inspection or test performed. The actual test result
(variable or attributes) shall be recorded.

Records for internal quality audits and management review shall be retained for three (3)
years.

Some programs may require longer retention periods than specified above. Supplier may
specify the longer retention period in its procedures or specifications.

The above shall not supersede any regulatory requirements.

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8.2.1 Customer communication. Suppliers registered to ISO 9001 or ISO/TS 16949 shall notify
Delphi of Certificates that are revoked or placed on suspension. Supplier shall notify its Delphi
SQE if it plans change registrars in a maximum of seven (7) working days after the official
receipt of the accrediting body.

Manufacturing Site Change. Supplier shall not change manufacturing location without prior
written approval from Delphi’s authorized change management responsible personnel. Any
request by Supplier to change manufacturing location shall be submitted through SQE. Any
manufacturing site changes require new PPAP.
Customer Representative Change. If Supplier’s customer representative changes, the
Supplier shall send new contact information to SQE/Purchase representative.
The official way of customer communications is by enterprise mailbox, to send and receive all
type of information.

8.3.4 Design and Development Review. When reviewing product design and development
stages, the Supplier shall participate in and execute APQP requirements.

Design and Development Verification. The Supplier shall perform design verification to
show conformance to Delphi design validation and qualification requirements. Verification
methods shall be recorded with the test results. Go/No Go results should be avoided and,
where available, the actual value for variables data shall be recorded.

Product Approval Process. The Supplier shall comply with the current edition of the AIAG
PPAP manual unless otherwise specified by Delphi. Delphi Technologies Aftermarket uses
PPAP Level 4 to define specific submission requirements which will be communicated as
required.

Copies of Supplier PPAPs shall immediately be made available upon request from Delphi.

8.3.6 Control of design and development changes. The Supplier shall retain documentation of
Delphi approval of all implemented changes for the life of the material. Delphi approval must
be sought in advance for any changes to design ,process or location. Supplier shall label
shipments of new or revised material per instruction from the Delphi receiving location until
notified by Delphi Production Control.

8.4.2 Statutory and Regulatory Conformity (Material Expectations). Supplier shall provide
samples, testing, environmental and MSDS (Material Safety Data Sheet) information within the
timeframe stated by Delphi. MSDS is required for bulk or raw materials, and for any rust
preventative, grease, lubricating oil or other chemical material that is on a part or assembly
provided to Delphi.

Substances of Concern and Recycled Content. Supplier shall disclose the composition of
all parts supplied or proposed to be supplied.

Incoming Product Quality. The Supplier shall ensure the quality of the parts it produces, its
sub-supplier’s quality and delivery performance and subcontracted services, including that
sub-suppliers directed by Delphi meet Delphi specifications and requirements. When the
Supplier determines incoming inspection of sub-supplier material is necessary, this activity
shall be consistent with the risk and quality impact of the Supplier on Delphi’s product quality.
Such incoming inspections shall include variables data where appropriate and be used as a
key indicator for sub-supplier quality management. Where high risk has been identified in the
sub-contracted process, the Supplier shall ensure containment is in place to protect Delphi.
For attribute data sampling, the acceptance level shall be zero defects.

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8.5.1 FMEAs. FMEAs shall be prepared using the AIAG Potential Failure Mode and Effects Analysis
reference manual unless otherwise approved by Delphi Supplier Quality.

FMEAs may be written for families of parts where batch processes and common tooling are
used. Families shall be clearly defined and have a full part number listing of the ftq. Family
designations must be approved by Delphi Engineering and Supplier Quality.

Upon request by Delphi, the Supplier shall provide a copy of the family FMEA documents for
review. If the document is considered proprietary, the Supplier may provide the applicable
section, or provide qualified technical support and bring the FMEA to the Delphi requestor for
review without retention of copies. A letter stating the proprietary nature of the FMEA shall be
included in the Production Part Approval submission package.

NOTES*:
When developing PFMEA's for production parts or material supplied to Delphi, the Delphi
rating tables for 'Severity', 'Occurrence' and ‘Detection’ shall be used in place of the rating
tables referenced in AIAG FMEA Current Edition, unless otherwise approved by Supplier
Quality, based on the specific part or program circumstances. Delphi’s approval of Supplier’s
PPAP shall serve as the approval for the rating method utilized.

Potential failure modes with a severity of seven or greater shall be continually improved to
reduce the occurrence to a one or reduce the detection to a five or lower.

Control Plans. The APQP manual, available from AIAG, shall be used as a guide in
developing and maintaining control plans. Supplier shall maintain a change history as part of
its control plan to document implementation of changes.

Supplier shall have control plans for all parts supplied to Delphi. Family control plans may be
used for parts with common processes. Supplier shall clearly define the family on the control
plan so that applicability is defined. The control plan shall include, as a minimum, the elements
specified in ISO/IATF 16949.

Supplier’s design and process controls shall focus on prevention rather than detection and
correction. Special attention shall be placed on the identification of input control characteristics
rather than post processing inspection and containment.

Repaired, reworked or out-of-process product shall be re-inspected to all control plan

requirements and documented procedures.

8.5.2 Identification and Traceability Labels. Supplier shall package and label products in
accordance with Delphi’s requirements.

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8.5.3 Tool Inventory/Disposal. The Supplier shall furnish a tool inventory of all Delphi-owned tools
(active and inactive) in the Supplier’s possession. The tool inventory shall be submitted to the
Delphi buyer annually by January 31st. The inventory shall contain the following information
for each Delphi-owned tool:

Tool part number(s) (typed in numerical order)

Current tool revision
Description
Date parts last ordered
Total cost of tool
Quantity of parts produced from tool
Remaining tool life
Previous part number if tool has been changed to produce a new part number
Delphi Design Engineer name

Delphi shall determine the disposition of all Delphi-owned tooling and such disposition shall be
communicated to the Supplier in writing by Delphi and include a Return Material Authorization.

If requested by Delphi, Supplier shall mark tooling Property of Delphi, or Property of Delphi’s
customer, as applicable.

8.7.1 Control of Nonconforming Product. The Supplier shall have an internal containment
procedure that integrates the requirements of the Delphi Supplier Containment Procedure.
Delphi will specify if / when Controlled Shipping is required and any costs associated with third
party inspection will be paid by the Supplier.

9.1.1 Identification of Statistical Tools.

Supplier shall use the latest AIAG Statistical Process Control (SPC) manual for manufacturing
process controls and the latest AIAG MSA for measurement system equipment management.

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9.1.2 Customer Satisfaction. Delphi requires Supplier to establish processes and designs to
achieve zero defects and green Scorecards indicators.

Scorecards. Delphi monitors and issue a monthly Supplier scorecard for measuring
Supplier Performance in Quality, Delivery and Commercial. Supplier shall review and
verify this monthly update and ensure action plans are developed as applicable to achieve
green indicators.

Scorecard Usage to Drive Improvement. If the scorecard has red indicators or

quality/shipping scores, the Supplier shall establish aggressive plans to drive improvement
to green.

If Supplier has a yellow quality or shipping score, supplier shall develop and implement
action plans to improve to green.

Control shipping is used and based on the conditions of Scorecard indicators and also for
non-conformity identified in supplier side, it can protect Delphi and customers and push
supplier solve quality issues in time. Normally it include 2 level, called “control shipping
level 1” means suppliers do tighten control by themselves, “control shipping level 2” means
besides supplier self-tighten control, 3rd party pointed by Delphi double control for
products. Currently the pointed 3rd party company is 4Es, and all cost for control shipping
level 2 need paid by supplier.

If Supplier is in Controlled Ship Level 2, in New Business Hold or has a twelve (12) month
average score of red on its quality and/or shipping scorecard, supplier shall expedite
appropriate corrective action steps.

In addition, supplier shall notify its registrar in writing within 5 working days of being placed
on Controlled Shipping Level 1, 2 and/or New Business Hold.

9.2.2 Internal Audit. Supplier’s internal auditors shall be qualified as recommended in ISO
19011 Guidelines for quality and/or environmental management systems auditing. In
addition, its internal auditors shall be competent in understanding and applying the Process
Approach of Auditing (see ISO/IATF 16949) and the AIAG.

Supplier Development of Specially Designated Small Sub-Suppliers of Direct

Automotive Product and Materials. When a sub-supplier to Supplier is so small as to not
have adequate resources to develop a system according to ISO/IATF 16949 or ISO 9001,
or supplies non-engineered products, certain specified elements may be waived by the
Supplier. “Small” here may refer to the volume supplied to the automotive industry or to the
sub-supplier’s annual sales volume. Supplier shall consistently apply the assessment
criteria below to determine the specially designated sub-suppliers to which this provision
may apply.

At a minimum, Supplier shall assess the sub-supplier’s size, dollar value of the business,
type of product supplied, quality system, manufacturing and delivery systems capability
and any risk to Delphi caused by the sub-supplier’s failure to develop a quality system. In
addition, Supplier shall ensure that sub-suppliers develop a quality management system
that facilitates defect prevention, monitoring and improvement.

9.3 Management Review. The Supplier Management shall hold regularly scheduled quality /
business operating system performance meetings to review the customer-focused metrics,
objectives and performance trends. Quality (Problem Cases) and OTIF delivery metrics
shall be included in the Supplier’s management reviews and shall use zero defects (PRRs)
and 100% on time as the goals.

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10.2 Corrective Action. Problem Case (PRR) Response: Supplier shall monitor and respond to
all PRR issued by Delphi. Supplier shall complete a 5-Why Analysis as a means of
ascertaining and verifying root cause analysis.

Delphi shall communicate any cost recovery to Supplier with a Problem Case and through
a cost recovery notice. Supplier shall respond to the cost recovery notices within seven
(7) working days.

Problem Case (PRR) Process:

Step 1: Problem Identification. Delphi Technologies Aftermarket provides a

detailed description of the problem and its impact.

Step 2: Supplier’s Initial Response & Containment.

Actions required ensure the customer is protected from receiving further non
conformances. Response required within 1 business day.

Step 3: Delphi Accepts or Rejects Initial Response. Reply required within 1 business day.

Step 4: Supplier Determines the Root Cause(s) Detailed investigation of what caused the
problem. Delphi prescribes 5 why as the tool to determine root cause.

Step 5: Supplier Develops Corrective Action/Solution.

Actions taken to eliminate the root cause.

Step 6: Supplier Implements and Verifies the Corrective Action.

Detail of dates and plans for implementation and verification that the corrective action is
effective. Supplier final response required within 15 calendar days. Supplier may submit an
extension request.

Step 7: Delphi Accepts or Rejects Final Response

Reply required, including extension request, within 2 business days.

Step 8 Supplier provides verification evidence data, charts or other documents as

requested.

Step 9: Delphi evaluates verification evidence and accepts or rejects response based on
the evidence.

Step 10: Delphi Closes the Problem Case (PRR)

Other Delphi Technologies Aftermarket Requirements:

End of Life Vehicle Directive. Declaration of Compliance with ELV Directive

(2000/53/EC),REACH (EC) No 1907/2006 and Carriage of Dangerous Goods

Conflict Minerals. Suppliers must be compliant with the EICC’s and GeSI’s tools and
processes that support the management of Conflict Minerals Reporting, the EICC Code of
Conduct and GeSI’s responsibility audits.

Block Exemption. Supplier commitment to Commission Regulation (EC) No. 1400/2002

compliance for the parts provided to Delphi Technologies Aftermarket.

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Ethics. All Delphi employees must conduct their business activities with suppliers
exhibiting the highest ethical standards. Such conduct enables Delphi Technologies
Aftermarket to have mutually beneficial relationships with its suppliers. If a Delphi
employee solicits a gift or favour from your company, the request is to be tactfully declined.
The solicitation of gifts from suppliers by Delphi Technologies Aftermarket Employees is
strictly prohibited. In the event a Delphi Technologies Aftermarket employee does solicit a
gift from your company, the Delphi Ethics Line should be notified. The phone numbers for
the ethics line are provided on the following link: Ethics Line & Gift and Gratuity Policy.

EDI. Supplier agrees to implement, as required, EDI communication for transmittal of

schedules and ASNs. All goods and services should have a Purchase Order document
associated with them. Work must not commence without proper authorization from Delphi
Global Supply Management in the form of a Purchase Order.

Proactive containment on first delivery. The Supplier shall have an early containment
procedure for any new product launched. Delphi will specify if / when third party inspection
on first delivery is required and any costs associated with third party inspection will be paid
by the Supplier.

PSO. The OEM direct material suppliers of Delphi Technologies Aftermarket must have the
post, supplier also need provide the person’s contact information to Delphi Technologies
Aftermarket SQDE. The PSO reports directly to management, ensures the quality of
information (clearly specifying the characteristics of the defect, its definition, the probability
of failure, etc.) and the confidentiality of communication. The PSO must have ability to
suspend components for the current series

QFS. The supplier continually have poor quality performance (2 continual Quarterly score
card are “RED”), Delphi Technologies Aftermarket will defined them as “Quality Focus
Supplier”. SQDE will use onsite audit/training/resident etc. methods to help supplier
improvement in 6months, to exit QFS route. All the cost during such period, include
travel/meal/hotel/labour cost ($25/hour) will charge to supplier.

Warranty. For any warranty & return issues, Delphi Technologies Aftermarket warranty
handling process shall be followed, ask responsible SQD for any query or assistance in
your region.

PPAP. Approved PPAP must be obtained prior to any delivery, Delphi Technologies
Aftermarket keeps the right to disposal for any violation.

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Change Log Date:
Update DPSS for Delphi Technologies Aftermarket 01/23/2018
Insert clause 9.1.1 01/23/2018
Section 4.4 for “preferred” IATF16949:2016 01/23/2018
Change all clauses number to reference ISO9001:2015 01/23/2018
Updated on Standards, cover page 09/27/2017
Section 2. Normative Reference Documents, new requirements added 09/27/2017
Section 3. Terms and Definitions, added ASN 09/27/2017
Section 4.1, update “preferred” ISO14001, item b updating the plan option for ISO 09/27/2017
14001 certification for suppliers do not have.
Section 4.2.2 update according Corporate CSR 09/27/2017
Section 4.2.4 deleted “(Refer to Section 8.2.4.1)” 09/27/2017
Section 7.2.3 added entire section according corporate CSR 09/27/2017
Section 8.2.1 update clarification about Scorecards, CS1, CS2 and notification 09/27/2017
Section “Other Requirements”, Added information about Warranty and PPAP 09/27/2017

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