IMDS PAP Sampling or a few words on

IMDS & PAP Sampling or a few words on IMDS Change Management by the MMDS Working Group A. Grützner / S. Dully / H. Traiser / C. Dietsche / R. Dües / K. Nigl PAP = Product Approval Process April 2015

Just a few basics • Today the IMDS Change Management Rules stipulated in the IMDS REC 001 describe when an IMDS Material Datasheet (MDS) must be updated by the supplier and the supply chain. • A change in the MDS is connected with a PAP sampling. A new/updated IMDS creates a new/updated PAP. • A PAP sampling is the agreed Product Approval Process (like PPAP or VDA sampling) between supplier and customer. • The PAP sampling concludes the commercially agreed contract between both parties, supplier and customer. MMDS Working Group

How does the sampling process work with IMDS? Supplier proposes product and IMDS to customer Customer & Supplier agree product design e st b u M Customer & Supplier agree product & timing ne i l in h wit co ct a r nt Always IMDS datasheet must be in compliance to agreed contract conditions! Customer reviews supplier‘s product and IMDS Customer approves supplier‘s product and IMDS … Supplier continues to supply for agreed time and design MMDS Working Group

Changes of relevance during Product Lifetime? IMDS Change Management (CM) is defined by the 3 Deltas (∆s): • ∆ Part Number - a new p/n requires a MDS • ∆ Product Weight - is +/- 5 -10% of the assembly weight • ∆ Product Material - changes in material composition o Production Move is not an argument – not in CM! o Outdated IMDS data is not an argument – not in CM! o IMDS Application Code is not an argument – not in CM! Ø Again: IMDS data have to be in compliance to bilaterally agreed contract conditions ! MMDS Working Group

Why do we have „Dates“ in IMDS? This IMDS REC 001 does not stipulate any IMDS Change Management Requirements! This MDS does not have any must-update Conditions! MMDS Working Group

*MMDS = Material MDS Must the mentioned MMDS* be changed? Tier 0 Supply MDS from 2004 MDS Example: Tier 1 Supply Tier 2 Supply Tier 3 Although the Tier-0 could have reviewed the apply-able CM conditions from 2004, he instead applied the new CM conditions from 2014. …which contradicts the bilaterally agreed contract conditions. ! g ! n t Possible Consequences: i s t r i c f e j s e submission • Tier-0 does not accept PAP, for IMDS data is lacking e l R u e R r many. Ddiscussions) o S • Delays in the PAP processese(…and f b M I k • Delays in the programs/projects (…and many more discussions) e n l i b h T frompfurther ca complications resulted from this holdup i • Costs encountered l p entire supply chain. a • Charge backs within the w ie v e R Proposal: Put MDS in „seen“ and review contract conditions before rejecting MMDS Working Group

Why do we have Change Management Rules? • …because the IMDS Data Validation Process is not an arbitrary act. We want Reliability in the Acceptance of our IMDS data ! Always IMDS datasheet must be in compliance to agreed contract conditions! • …because also IMDS must follow Conditions that were agreed upon at Contract Conclusion. We want Stability in the Contractual Conditions, bilateral requirements and IMDS Acceptace Criteria ! MMDS Working Group

Ethics and Moral “Against the backdrop of complex business relationships, we are responsible for our own conduct as well as for the activities of our partners – both in a moral sense and MDS from 2004 MDS with respect to the law. We can uphold our high ethical MDS only if all partners pull together and have a shared understanding of values. ” standards Tier 0 Supply Tier 1 Supply Tier 2 Supply Tier 3 Tier 2 and 3 have a bilateral contract Negative Impact to… • Ignoring IMDS Change Management Rules creates incorrect rejections to the subtier IMDS data, the data flow comes to a hold and impacts sub-tier relations in such a negative way that those become negatively impacted as well. • All sub-tier business partners understand this as tortious, unethical interference ! MMDS Working Group

MDS Materials or a few words on the future of …the Material Data Sheet by the MMDS Working Group A. Gruetzner / S. Dully / H. Traiser / C. Dietsche / R. Dües / K. Nigl MMDS = Material Data Sheet =

ü Quality Enhancement to all MMDSs …talking about “Quality of Data”: Our Team intends to install a new MMDS type and method ! Check & Approve MMDSs directly from the start in the chain (quality principle; Accuracy of Content) • Centralized MMDS accuracy check directly after creation • Check must be done in connection with IMDS SC material expertise • To assess the data quality, the data must be visible to the auditing person/company • MMDS creation by Material Manufacturers only !

ü Quality Enhancement to all MMDSs Database of approved MMDS - once approved, it’s approved for all • Formally approved MMDS IDs stored in central DB for later use by all MMDS customers ü Further formal MMDS checks NOT necessary (covers >80% supply chain rejection reasons) Pre-Condition & Action Items: • Harmonized MMDSs Validation Criteria Catalogue to implement • Initiate and control MMDS processes for the supply chain (how to get the accurate data)

MMDS Data Flow MMDS creating Company Centralized check for Material Data Approval atio id Val n IT checks provided by HP Expertise provided by SC CMDS Creator 3 CMDS Creator 2 approved MMDS ID ch ly pp (ready for sending or publishing) CMDS ID 002 • CMDS ID 001 • “normal” MMDS ID • approved MMDS ID CMDS Creator 1 • approved MMDS ID CMDS ID 001 • “normal” MMDS ID ? • approved MMDS ID ü ain Approved MMDS “normal” MMDS IDs IMDS inbox checked (? ) formal inbox check excluded (ü) NOT to reject for quality or formal criteria Su Rejected MMDS ? ? ü ü ü ü

Thanks a lot… …for listening …and your kind understanding