Common use of Development Planning Clause in Contracts

Development Planning. a.) If the order to the supplier includes developing duties, the requirement specification of the contracting partners has to be in written form for example as a target specification. The supplier obligates himself already in the planning phase of products, in operations and other trans-sectoral duties to apply project management and to grant examination into the project documentation to the customer by request. b.) All the technical documents necessary for the support of the standard development like specifications, drawings, parts lists, CAD data must be checked on receipt by the supplier on completeness and consistency. If it is recognizable that the claims agreed upon in the technical documents contain faulty, unclear or incomplete descriptions of the product, these are to be indicated to the customer unsolicited in an adequate form. The same is valid, if product requirements can be substituted with more suitable, more economic and more effective procedures. c.) For the development stage the contracting partners agree to apply suitable preventive methods of the quality planning. The experiences (process expiries, process data, ability studies etc.) from similar intentions are to be considered. Features with special demands for the documentation and archiving are to be fixed. d.) For prototypes and pre-standard parts the production and testing terms are to be aligned and documented between customer and supplier. Aim is to produce the parts under production-oriented conditions. e.) For the known – regulated or agreed – function-relevant features the supplier must carry out analyses of the suitability of the used production facility and document it. If agreed ability values are not achieved, the supplier must either optimize his facilities and processes accordingly or carry out adequate checks in the manufactured products to prevent defective deliveries. f.) Before starting serial production and within serial production the supplier has to carry out the process and product release according the guidelines of VDA Band 2 (PPF) or QS 9000 (PPAP). The same approach is valid for: 1. Product changes 2. Tool changes 3. New production of tools 4. Process changes 5. Material changes

Development Planning. a.a) If the an order to the supplier includes developing dutiesdevelopment tasks, the requirement specification of requirements shall be agreed by the contracting partners has to be parties in written form form, for example as in form of a target requirement specification. The supplier obligates himself already shall operate its project management activities beginning in the planning phase of products, in operations processes and other transinter-sectoral duties to apply project management divisional tasks and to grant examination into the project documentation to shall allow the customer by to inspect its progress upon request. b.b) The supplier himself is responsible for the choice of the procedures and processes for the production process layout and finished product quality. c) All the technical documents necessary for the support of the standard development like such as specifications, drawings, parts lists, CAD data files being necessary must be checked on receipt by the supplier on for completeness and consistency. If Shall it is recognizable become evident, that the claims agreed upon in determined requirements to the technical documents contain faultyproduct are flawed, unclear inexplicit, or incomplete descriptions of the productin their descriptions, these are to they must be indicated shown to the customer unsolicited without any prior written request in an adequate formappropriate manner. The same is valid, if valid in case the product requirements can could be substituted with replaced by more suitableconvenient, more economic economic, and more effective efficient procedures. c.d) For the development stage phase the contracting partners contractors agree to apply suitable upon the application of suitable, preventive methods of the quality planningplanning according to IATF 16949 Core tools. The experiences knowledge (process expiriessequences, process data, ability capability studies etc.) gained from similar intentions are to projects must be consideredtaken into consideration. Features with special demands for specific requirements to the documentation and archiving archival storage are to be fixeddetermined by the customer. d.e) For prototypes and pre-standard series parts the production production- and testing terms are to examination conditions must be aligned and documented determined between customer and suppliersupplier and must be documented. Aim The object is to produce the production of the parts under productionnear-oriented series conditions. e.f) For the known – regulated known, regulated, or agreed – simplified function-relevant features features, the supplier must carry out make and document the analyses of about the suitability applicability of the used production facility and document itfacilities. If agreed ability values fixed capability characteristics are not achievedreached, the supplier must either optimize his facilities and processes accordingly or carry out adequate checks in make appropriate examinations on the manufactured products to prevent defective deliveriesreach the zero-defect target. f.g) Before starting the serial production and within serial production production, the supplier has to carry out must make the process process- and serial product release according the guidelines of to VDA Band 2 (PPF/EMPB) or QS 9000 9000/AIAG (PPAP)) (depending on the customer requirement) and to present serial samples. The same approach This procedure is also valid for: 1. Product changes) Changing a product 2. Tool changes ) Changing a tool 3. ) New production of tools 4. Process changes 5. Material changestool construction

Development Planning. a.a) If the order to placed with the supplier Supplier includes developing dutiesdevelopmental work, the requirement requirements specification shall be set out in writing by the contractual partners, i.e. in the form of the contracting partners has to be in written form for example as a target specificationspecification sheet. The supplier obligates himself already in Supplier shall be obliged to use project management as early as the planning phase stages of products, in operations processes and other trans-sectoral duties to apply project management cross functional tasks and to grant examination into allow the Customer access to the project documentation to the customer by requestdocumentation. b.b) All the technical documents documentation necessary for the support of the standard development like mass production such as specifications, drawingsdesigns, parts listslist of items, CAD data must be checked on receipt by the supplier on Supplier upon receipt for completeness and consistency. If it is recognizable becomes apparent, that the claims agreed upon product requirements set out in the technical documents contain faultydocumentation include descriptions that are defective, unclear or incomplete descriptions of the productincomplete, then these are to must be indicated shown to the customer unsolicited Customer in an adequate appropriate form, without the Customer having to request so. The same is valid, also applies if product the products requirements can may be substituted with more replaced by suitable, more economic and more effective proceduresprocesses. c.c) For the development stage the contracting The contractual partners agree to apply suitable preventive use suitable, preventative quality planning methods of during the quality planningdevelopment stage. The Previous experiences (process expiriesprocesses, process data, ability competence studies etc.) from similar intentions are to projects shall be consideredtaken into consideration. Features with special demands for the documentation and archiving requirements must be determined. Characteristics with special requirements for documentation and archiving should be defined. The VDA Band special characteristics serves as a starting point for the identification, definition, tracking, documentation and archiving of special characteristics. Special features are to be fixedidentified throughout the supply chain: - to be agreed between customer and supplier and - within an organization. d.d) For Manufacturing and test conditions for prototypes and pre-standard parts series models must be coordinated between the production Customer and testing terms are to be aligned the Supplier and documented between customer and supplierdocumented. Aim The goal is to produce the build prototypes and pre-production parts under conditions similar to mass production-oriented conditions. e.e) For the known – regulated or agreed – function-relevant features the supplier The Supplier must carry out and document analyses of the suitability of the used production facility and document itfacilities deployed for the known functional relevant features - regulated or agreed. If agreed ability any of the determined characteristic capability values are not achieved, the supplier Supplier must either optimize his facilities and processes its systems accordingly or carry out adequate checks suitable inspections of the produced products in the manufactured products order to prevent defective exclude faulty deliveries. f.f) Before starting serial production and within serial production Prior to the supplier has to carry out commencement of mass production, the Supplier must obtain approval for process and product release according the guidelines of to VDA Band Volume 2 (PPFEMPB or Initial sample test report) or QS 9000 Production Part Approval Process (PPAP). The same approach is valid forThis procedure also applies to: 1. Product changesamendments 2. Tool changes Changes to instruments 3. New production Replacement of tools instruments 4. Process changes 5. Material changesamendments