DESCRIPTION OF THE SERVICE ACTIVITIES. 5.1 Industrial Operations & Quality will provide the following services: (a) Product and Process related activities, in the areas of Stamping, Body in White, Paint Shop, Final Plant, Geometry & Logistics.
DESCRIPTION OF THE SERVICE ACTIVITIES. 5.1 The service will be provided in three main phases:
1. Strategic - strategic alignment for Polestar Vehicle. Volvo Cars Procurement is responsible to lead the overall strategic work including CBP, Design to Profitability (“DtP”) and benchmarking and will align the strategy and the targets with Polestar.
2. Sourcing - Volvo Cars Procurement will lead the sourcing including team set-up, planning, execution, negotiation, contract, including performing needed supplier quality assessments.
3. Industrialization - Volvo Cars Procurement will lead the industrialization including, risk assessment, PPAP and capacity verification.
5.2 The service deliveries will be the following: Sourcing work including cost estimates and capacity leading up to a Sourcing Strategy and Sourcing Decision in SCM/SCC. • Prepare Supplier contracts and Contracted Weekly Capacity (“CWC”) (to be signed by Polestar). • Place build, tool, prototype, engineering and production orders (blanket) and price updates. Ordering will be done in SI +/SAP with Polestar order template when Polestar owned tool orders. For Volvo Cars Procurement to be able to place orders in SI+, Polestar unique suppliers need to be registered and included in supplier base system VSM/Parma. Polestar orders will be approved in SI+ according to Volvo Delegation of Authority. • PSW/PPAP per part number, approved by Volvo Site SQM including Verified Weekly Capacity. • Okm Supplier quality assurance up to Start of Production + 90 days.
5.3 Volvo Cars Procurement will perform procurement deliveries through the following functions and their activities: • Program management/XXX - Scope and plan the sourcing activities and drive that tasks are met timely, both for Polestar Technology and platform related parts and xxxxxxx Capacity Increase Requests (“CIR”). • Capacity and volume pre-requisites team - Provide, via SP-tool, volume pre-requisites for the buyers RFQ and Contracted Weekly Capacity to the SQM supplier capacity verification • Hardware, Software and Propulsion Buyers - Perform supplier evaluation (SEM), lead the sourcing, negotiation, supplier selection and contract signing including ordering. • Cost estimator - Perform cost estimates based on LCE and OCE and communicate with the Buyer. • Forward Sourcing Buyer - Manage sourcing process and analysis in sourcing system VGS • SQM - Perform supplier evaluations (MSA), PPAP and verify supplier capacity. • Resident SQM - Plant situated SQM, will secure supplier quality at lau...
DESCRIPTION OF THE SERVICE ACTIVITIES. 5.1 The service will be provided in two main areas:
1. Running commercial purchasing and SQM activities
2. End-of-Production activities
5.2 Running commercial purchasing and SQM activities at supplier:
1. Purchasing for unique Polestar components. Service provider will handle all eventual VPC (Volvo Parts Concern) that need commercial discussions with suppliers.
2. Supplier quality for unique Polestar components. Will fully handle quality assurance and constraints management on supplier site both for product and supplier. If relocation is needed, supplier quality (SQM) will lead the supplier evaluation and qualification work.
DESCRIPTION OF THE SERVICE ACTIVITIES. The relevant IT systems will be upgraded with new functionality, configured and tested to support the [***] production in VCCD—including the global IT solution supporting the new Battery Assembly, new Merge Centre at Business milestone PP (Pilot Production) and new/upgraded Infrastructure. The products involved are: Prepare production, Product control, Quality, Plant maintenance, Connected shopfloor. Material Demand, Factory Support (Infrastructure), ProdOrder&Scheduling, Finance The goal for this project is to have all necessary IT deliverables in place to support the [***]-production in Chengdu at the right moment in the business project phases. Within the project we are aiming to re-use the existing VCC processes and IT solutions that are deployed globally. Any deviation must be investigated and prioritized within the project. High level overview of activities in scope of this project: • BIW Sub-assembly automatic steering: solution exists, need to be implemented. • BIW Pre-order solution: new development and implementation • Paint buffer solution: solution exists, to be implemented • VCATS upgrade for SPAII and i-Flex devices and testing new SWDL and ECOS • SJC server set up for new supplier Desoutter • Battery plant solution: carry back the solution implemented in AELQ with adaptive changes supporting higher JPH. • Merge flow of sequence parts: carry back Gent’s solution with adding some adaptive changes • Extra Andon stations: solution exists, extended to new area • Integrations with new PLCs: solution exists, need to be implemented • New optical fiber from DC1 and DC2 to new battery plant • Network cabling in battery plant & C shop • Cabinet movement in A shop • Canopy for batter plant • IT shop floor devices • Additional servers and network hardware Configurations—upgrades—integrations-testing needed for yellow marked applications in picture below. [***]
DESCRIPTION OF THE SERVICE ACTIVITIES. The Parties have agreed that the Service Provider is responsible for the development of the complete [***] according to the product definitions, technical specifications and quality targets set forth in this Agreement and further specified in Appendix 1.01-1.15 (a list of Appendixes is included in Section 8).
DESCRIPTION OF THE SERVICE ACTIVITIES. 5.1 The Service will be provided in two main phases:
1. Sourcing-Volvo Cars Procurement will lead the sourcing including team set-up, planning, execution, negotiation, contract, including performing needed supplier assessments.
2. Industrialization -Volvo Cars Procurement will place orders and lead the commercial Modification Change Requests.
5.2 The Service deliveries will be the following: • Sourcing work leading up to a Sourcing Strategy and Sourcing Decision in SCM/SCC. Prepare Supplier contracts (to be signed by Polestar). • Place orders. Ordering for Polestar will be done in SRM with Polestar order template. Polestar requisitions will be approved in Polestar Delegation of Authority and orders will be approved in SRM according to Volvo Delegation of Authority.
DESCRIPTION OF THE SERVICE ACTIVITIES. 5.1 Volvo Car Manufacturing Engineering will provide the following services:
(a) Process related activities, in the areas of Stamping, Body in White, Paint Shop, Final Plant & Geometry.
(b) Release Process Inspection Instructions and script updates for the Hardware and Software intros.
(c) Perform the product, process and logistics engineering work according to the Volvo Product Development System (VPDS) pre-requisites. This for all running changes that affects the Polestar 2 vehicle.
DESCRIPTION OF THE SERVICE ACTIVITIES. 5.1 The service will be provided in three main areas:
1. In-plant PSCD activities covering full [***] . From the plant perspective monitor suppliers’ incoming quality, deliveries and capacity issues and feedback to suppliers and SQM. Procurement Plant Teams (PPT) on-site at PSCD responsible to handle all procurement related issues (quality & delivery): • The PPT will be responsible for all 8D with possibility to request help from Site SQM if extra expertise is needed • PPT will be responsible for both Q and A reports from D4. • Meetinrg structure in several steps (daily plant meetings with SCC and IMQ, weekly plant meetings with plant mgmt., weekly regional meeting including previous functions plus procurement line organization + constraint + capacity mgmt., and finally a global alignment/escalation meeting Capacity and constraints Management situated in Procurement office in Shanghai: • volume re-calculations and needed changes in MPS towards suppliers • constraints coordination
2. Purchasing for unique Polestar components. Handling of all VPC (Volvo Parts Concern), eventual claims and capacity requests that need commercial discussions with suppliers.
3. Supplier quality for unique Polestar components. Will fully handle quality assurance and constraints management on supplier site both for product and supplier. If relocation is needed, supplier quality (SQM) will lead the supplier evaluation and qualification work.
5.2 Volvo Cars Procurement will perform procurement deliveries through the following functions and their activities:
DESCRIPTION OF THE SERVICE ACTIVITIES. 5.1 The Services are described in this Appendix 1 and in its Schedule A, column C “Description of services”.
5.2 Both Parties should be entitled to request a change of the Scope of Services, service levels etc defined in this Appendix 1 with a notice period of six (6) months, unless otherwise agreed between the Parties.
5.3 The Services shall be provided in the following countries: Sweden, Norway, Germany, The Netherlands, Belgium and the United Kingdom. The actual implementation timeframe and launch dates of each specific country must be agreed in writing between the parties.
DESCRIPTION OF THE SERVICE ACTIVITIES. 5.1 The roles and responsibilities between the Parties can generally be described as follows; Volvo Cars is responsible for Manufacturing Engineering and Logistics activities, including support to Indirect Procurement.
5.2 Volvo Cars Manufacturing Engineering is responsible for process related activities, in the areas of Stamping, Body in White, Paint Shop, Final Plant, Geometry, and In-plant logistics including, but not limited to:
5.2.1 Specify, support purchase, install and verify production process as well as secure needed logistic set ups.
5.2.2 Perform needed investigations to secure the appropriate and most efficient changes within the Volvo plants that will take place to allow production of the Polestar Vehicle.
5.2.3 Define all specifications for the equipment, racks and packaging to be installed for Polestar Vehicle production.
5.2.4 Be the main contact towards the equipment suppliers in order to secure a technical perspective and Volvo Cars standards.
5.2.5 Be in close contact with the equipment suppliers during the design and manufacturing phase to secure they receive all needed information and get the equipment agreed on at the right timing.
5.2.6 Define and secure deliveries of test material to pre-series and tooling equipment.
5.2.7 Follow up the installation progress and support with needed process information to the suppliers and securing that the suppliers are delivering according to agreed quality and timing.
5.2.8 Secure to keep the production management informed about progress and make necessary agreements to fulfil production requirements.
5.2.9 Design plant layout and logistics flows as well as line facade concepts.
5.2.10 Develop packaging to be used from Tier 1 suppliers. Tier 2 suppliers are the responsibility of Tier 1.
5.2.11 Support pre-series activities to secure the quality and delivery of process as well as the timing aspects.
5.2.12 Manage Launch activities according LQ.OS process.
5.3 The process related activities, including detailed lists of planned investments and investment budget, will be aligned with Polestar.
5.3.1 Approximations (targets and estimations) of investment cost and investment budget will be supported and provided by Volvo Cars Manufacturing Engineering.
