Common use of Escalation Procedure Clause in Contracts

Escalation Procedure. In the event of serious deviations from the quality requirements, the Buyer reserves the right to initiate escalation proceedings with the Supplier. Possible triggers for the initiation of an escalation procedure are - repeated faulty delivery despite completed problem solution (8D) - repeated production disturbances at the Buyer's premises due to defective deliveries - repeated/critical complaints by customers of the Buyer, caused by errors at the Supplier - insufficient complaint management of the Supplier - imminent production standstill at the Buyer's or the Buyer's customers' premises caused by faults at the Supplier critical measure from a supplier audit not implemented - deficient order processing by the Supplier - loss of OEM approval or the Supplier's QMS certificate (ISO 9001 or EN/AS 9100 or ISO/TS 22163) A structured escalation procedure with the Supplier is intended to ensure a smooth production and project flow and to solve or sustainably eliminate any problems that may arise as quickly as possible. The Buyer has implemented a three-level escalation procedure. In the first escalation level (problem solution by Supplier not successful), the Supplier is invited to a meeting at the Buyer's premises where the problem is discussed, and remedial measures are de- fined and scheduled. Xxxxx 0 of escalation (external help necessary to solve the problem at the Supplier) follows escalation level 1 if the result is unsatisfactory. In escalation level 2, a root cause analysis is carried out on site at the Supplier or the Buyer. This problem analysis can be carried out by the Buyer as a process audit. The agreed action plan is to be executed by the Supplier within the specified time frame. An unsatisfactory result of escalation level 2 leads to the initiation of level 3 (Supplier is not suitable) or even to a Supplier block. The customer of the Buyer is included in escalation level 3, if Supplier was approved by the customer or if there is a risk for the customer of the Buyer. If the result of the effectiveness test in the respective escalation level is positive, the Supplier is notified of the lifting of the escalation (de-escalation). The de-escalation procedure is carried out in stages.

Escalation Procedure. In the event of With serious deviations from the quality requirements, requirements the Buyer reserves the right to initiate an escalation proceedings procedure with the Supplier. Possible triggers Triggers for the initiation of initiating an escalation procedure are may e.g. be the following: - repeated faulty delivery deliveries despite completed problem solution solving (8D) - repeated disruptions of Buyer´s production disturbances at the Buyer's premises due to defective caused by faulty deliveries - repeated/repeated/ critical complaints by customers of the Buyer, caused by errors at the faults of Supplier - field failures and recall actions respectively, by customers of Buyer, caused by faults of Supplier - insufficient complaint management of the Supplier - imminent Long-term insufficient adherence to delivery dates or quantities - impending stoppages of Buyer´s production standstill at the Buyer's or the Buyer's and their customers' premises ´ production respectively, caused by faults at the of Supplier - critical measure from a action out of supplier audit not implemented - deficient order processing unsatisfactory project management of supplier - special status of the supplier assigned by the Supplier - loss of OEM approval or the Supplierbuyer's QMS certificate customer (ISO 9001 or EN/AS 9100 or ISO/TS 22163e.g. controlled shipping level 1-2-3; C category, etc.) 1) A structured escalation procedure with the Supplier is intended to ensure a smooth production and project flow and to solve or sustainably eliminate any problems that may arise as quickly as possible. The Buyer has implemented a three-level stage escalation procedure. By means of a structured escalation procedure with suppliers, a smooth run of production as well as project shall be ensured; arising problems shall be solved sustainably. In the first escalation level stage (problem solution by Supplier supplier is not successful), ) the Supplier supplier is invited to a meeting at an interview with the Buyer's premises where customer, during which the problem is discussed, discussed and remedial measures are de- fined and scheduled. Xxxxx 0 Escalation to stage 2 (outside assistance required for solving of escalation (external help necessary to solve the problem at the SupplierSupplier´s) follows escalation level in case result of stage 1 if the result is unsatisfactory. In escalation level 2, Escalation stage 2 provides for a root cause analysis is carried out on that may take place on-site at the Supplier Supplier´s, or at the BuyerBuyer´s facility. This problem analysis can may be carried out performed by the Buyer as a process audit. The agreed action plan agreed is to be executed by the Supplier within in the specified time framestipulated period. An unsatisfactory result of to escalation level stage 2 leads to the initiation initiating of level stage 3 (Supplier is not suitable) or even to removing the Supplier as a Supplier blocksupplier to the buyer and their customers. The Buyer's customer of the Buyer is included in the escalation level 3, if Supplier was approved it is a supplier specified by the Buyer’s customer or if there is a risk for the customer of Buyer's customer. In the Buyer. If the result of the case where effectiveness test in evaluation at the respective escalation level is positivestages shows positive results, the Supplier is shall be notified of the lifting of the escalation procedure (de-escalation). The de-de- escalation procedure is carried out in stagesshall be dealt with step by step.

Escalation Procedure. In the event of With serious deviations from the quality requirements, requirements the Buyer reserves the right to initiate an escalation proceedings procedure with the Supplier. Possible triggers Triggers for the initiation of initiating an escalation procedure are may e.g. be the following: - repeated faulty delivery deliveries despite completed problem solution solving (8D) - repeated disruptions of Buyer´s production disturbances at the Buyer's premises due to defective caused by faulty deliveries - repeated/repeated/ critical complaints by customers of the Buyer, caused by errors at the faults of Supplier - field failures and recall actions respectively, by customers of Buyer, caused by faults of Supplier - insufficient complaint management of the Supplier - imminent impending stoppages of Buyer´s production standstill at the Buyer's or the Buyer's and their customers' premises ´ production respectively, caused by faults at the of Supplier - critical measure from a action out of supplier audit not implemented - deficient order processing unsatisfactory project management of supplier - special status of the supplier assigned by the Supplier buyer's customer (e.g. controlled shipping level 1-2-3; C category, etc.) - loss of OEM approval or the Supplier's supplier´s QMS certificate (ISO 9001 or EN/AS 9100 or 9001, ISO/TS 2216316949 resp. IATF 16949, VDA 6.1) A structured escalation procedure with the Supplier is intended to ensure a smooth production and project flow and to solve or sustainably eliminate any problems that may arise as quickly as possible. The Buyer has implemented a three-level stage escalation procedure. By means of a structured escalation procedure with suppliers, a smooth run of production as well as project shall be ensured; arising problems shall be solved sustainably. In the first escalation level stage (problem solution by Supplier supplier is not successful), ) the Supplier supplier is invited to a meeting at an interview with the Buyer's premises where customer, during which the problem is discussed, discussed and remedial measures are de- fined and scheduled. Xxxxx 0 Escalation to stage 2 (outside assistance required for solving of escalation (external help necessary to solve the problem at the SupplierSupplier´s) follows escalation level in case result of stage 1 if the result is unsatisfactory. In escalation level 2, Escalation stage 2 provides for a root cause analysis is carried out on that may take place on-site at the Supplier Supplier´s, or at the BuyerBuyer´s facility. This problem analysis can may be carried out performed by the Buyer as a process audit. The agreed action plan agreed is to be executed by the Supplier within in the specified time framestipulated period. An unsatisfactory result of to escalation level stage 2 leads to the initiation initiating of level stage 3 (Supplier is not suitable) or even to removing the Supplier as a Supplier blocksupplier to the buyer and their customers. The Buyer's customer of the Buyer is included in escalation level 3, if Supplier was approved it is a supplier specified by the Buyer’s customer or if there is a risk for the customer of Buyer's customer. In the Buyer. If the result of the case where effectiveness test in evaluation at the respective escalation level is positivestages shows positive results, the Supplier is shall be notified of the lifting of the escalation procedure (de-escalation). The de-de- escalation procedure is carried out in stagesshall be dealt with step by step.

Escalation Procedure. In the event of serious deviations from the quality requirements, requirements the Buyer reserves the right to initiate ini- tiate an escalation proceedings procedure with the Supplier. Possible triggers for the initiation of initiating an escalation procedure are process, e.g.: - repeated faulty delivery deliveries despite completed problem solution solving (8D) - repeated production disturbances interruptions at the Buyer's premises ’s site due to defective faulty deliveries - repeated/repeated/ critical complaints by customers of Buyer, caused by faults of Sup- plier - field failures or recall action by customers of the Buyer, caused by errors at faults of the Supplier - insufficient complaint management of the Supplier - imminent impending stoppages of Buyer´s production standstill at the Buyer's or the Buyer's and their customers' premises ´ production respectively, caused by the faults at the of Supplier - critical measure from a resulted out of the supplier audit not implemented - deficient order processing by insufficient project management of the Supplier - loss Special status of OEM approval or the Supplier's QMS certificate (ISO 9001 or EN/AS 9100 or ISO/TS 22163) A structured escalation procedure with the Supplier is intended to ensure a smooth production and project flow and to solve or sustainably eliminate any problems that may arise as quickly as possible. assigned by the Buyer's customer (e.g. controlled shipping level 1-2-3; C category, etc.) 1) The Buyer has implemented a three-level stage escalation procedure. Through a structured escalation procedure with the Supplier, a smooth run of production as well as project shall be ensured; arising problems shall be solved sustainably. In the first escalation level stage (problem solution by Supplier supplier is not successful), ) the Supplier supplier is invited to a meeting at an interview with the Buyer's premises where , during which the problem is discussed, discussed and remedial measures are de- fined and scheduled. Xxxxx 0 Stage 2 of the escalation (external help necessary to solve the problem at with the Supplier) follows escalation level stage 1 if the result of Level 1 is unsatisfactory. In escalation level 2, Escalation stage 2 provides for a root cause analysis is carried out on that may take place on-site at the Supplier Supplier´s, or at the BuyerBuyer´s facility. This problem analysis can may be carried out performed by the Buyer as a process audit. The agreed action plan is to be executed by the Supplier within the specified time frametimeframe. An unsatisfactory result of to escalation level stage 2 leads to the initiation initiating of level stage 3 (Supplier is not suitablesuita- ble) or even to a Supplier block. The Buyer's customer of the Buyer is included in escalation level 3, if it is a Supplier was approved specified by the Buyer’s customer or if there is a risk for the customer of the Buyer's customer. If the result of the effectiveness test in check at the respective escalation level is positive, a message is sent to the Supplier is notified of the lifting of informing him that the escalation (de-escalation)) has been lifted. The de-escalation procedure process is carried out in stages.

Escalation Procedure. In the event of With serious deviations from the quality requirements, requirements the Buyer reserves the right to initiate escalation proceedings an escala- tion procedure with the Supplier. Possible triggers Triggers for the initiation of initiating an escalation procedure are may e.g. be the following: - repeated faulty delivery deliveries despite completed problem solution solving (8D) - repeated disruptions of Buyer´s production disturbances at the Buyer's premises due to defective caused by faulty deliveries - repeated/repeated/ critical complaints by customers of the Buyer, caused by errors at the faults of Sup- plier - field failures and recall actions respectively, by customers of Buyer, caused by faults of Supplier - insufficient complaint management of the Supplier - imminent impending stopages of Buyer´s production standstill at the Buyer's or the Buyer's and their customers' premises ´ production respectively, caused by faults at the of Supplier - critical measure from a action out of supplier audit not implemented - deficient order processing unsatisfactory project management of supplier - Special status of the supplier assigned by the Supplier buyer's customer (e.g. con- trolled shipping level 1-2-3; C category, etc.) - loss Loss of OEM approval or the Supplier's supplier´s QMS certificate xxxxxxxxxxx (ISO 9001 or EN/AS 9100 or ISO/TS 22163XXX 0000, XXXX 00000, XXX 6.1) A structured escalation procedure with the Supplier is intended to ensure a smooth production and project flow and to solve or sustainably eliminate any problems that may arise as quickly as possible. The Buyer has implemented a three-level stage escalation procedure. By means of a structured escalation procedure with suppliers, a smooth run of production as well as project shall be ensured; arising problems shall be solved sustainably. In the first escalation level stage (problem solution by Supplier supplier is not successful), ) the Supplier supplier is invited to a meeting at an interview with the Buyer's premises where customer, during which the problem is discussed, discussed and remedial measures are de- fined and scheduled. Xxxxx 0 Escalation to stage 2 (outside assistance required for solving of escalation (external help necessary to solve the problem at the SupplierSupplier´s) follows escalation level in case result of stage 1 if the result is unsatisfactory. In escalation level 2, Escalation stage 2 provides for a root cause analysis is carried out on that may take place on-site at the Supplier Supplier´s, or at the BuyerBuyer´s facility. This problem analysis can may be carried out performed by the Buyer as a process audit. The agreed action plan agreed is to be executed by the Supplier within in the specified time framestipulated period. An unsatisfactory result of to escalation level stage 2 leads to the initiation initiating of level stage 3 (Supplier is not suitablesuita- ble) or even to removing the Supplier as a Supplier blocksupplier to the buyer and their customers. The Buyer's customer of the Buyer is included in escalation level 3, if Supplier was approved it is a supplier specified by the customer Buyer’s Customer or if there is a risk for the customer of Buyer's customer. In the Buyer. If the result of the case where effectiveness test in evaluation at the respective escalation level is positivestages show positive re- sults, the Supplier is shall be notified of the lifting of the escalation procedure (de-escalation). The de-de- escalation procedure is carried out in stagesshall be dealt with step by step.

Escalation Procedure. In the event of With serious deviations from the quality requirements, requirements the Buyer reserves the right to initiate escalation proceedings an escala- tion procedure with the Supplier. Possible triggers Triggers for the initiation of initiating an escalation procedure are may e.g. be the following: - repeated faulty delivery deliveries despite completed problem solution solving (8D) - repeated disruptions of Buyer´s production disturbances at the Buyer's premises due to defective caused by faulty deliveries - repeated/repeated/ critical complaints by customers of the Buyer, caused by errors at the Supplier faults of Sup- plier - insufficient complaint management of the Supplier - imminent impending stopages of Buyer´s production standstill at the Buyer's or the Buyer's and their customers' premises ´ production respectively, caused by faults at the of Supplier - critical measure from a action out of supplier audit not implemented - deficient unsatisfactory order processing by the of Supplier - loss Loss of OEM approval or the Suppliersupplier's QMS certificate (ISO 9001 or EN/AS 9100 or ISO/TS 221639100) A structured escalation procedure with the Supplier is intended to ensure a smooth production and project flow and to solve or sustainably eliminate any problems that may arise as quickly as possible. The Buyer has implemented a three-level stage escalation procedure. By means of a structured escalation procedure with suppliers, a smooth run of production as well as project shall be ensured; arising problems shall be solved sustainably. In the first escalation level stage (problem solution by Supplier supplier is not successful), ) the Supplier supplier is invited to a meeting at an interview with the Buyer's premises where customer, during which the problem is discussed, discussed and remedial measures are de- fined and scheduled. Xxxxx 0 Escalation to stage 2 (outside assistance required for solving of escalation (external help necessary to solve the problem at the SupplierSupplier´s) follows escalation level in case result of stage 1 if the result is unsatisfactory. In escalation level 2, Escalation stage 2 provides for a root cause analysis is carried out on that may take place on-site at the Supplier Supplier´s, or at the BuyerBuyer´s facility. This problem analysis can may be carried out performed by the Buyer as a process audit. The agreed action plan agreed is to be executed by the Supplier within in the specified time framestipulated period. An unsatisfactory result of to escalation level stage 2 leads to the initiation initiating of level stage 3 (Supplier is not suitablesuita- ble) or even to removing the Supplier as a Supplier blocksupplier to the buyer and their customers. The Buyer's customer of the Buyer is included in escalation level 3, if Supplier was approved it is a supplier specified by the customer Buyer’s Customer or if there is a risk for the customer of Buyer's customer. In the Buyer. If the result of the case where effectiveness test in evaluation at the respective escalation level is positivestages show positive re- sults, the Supplier is shall be notified of the lifting of the escalation procedure (de-escalation). The de-de- escalation procedure is carried out in stagesshall be dealt with step by step.

Escalation Procedure. In the event of serious deviations from the quality requirements, the Buyer reserves the right to initiate an escalation proceedings procedure with the Supplier. Possible triggers for the initiation of initiating an escalation procedure are - process:  repeated faulty delivery despite completed problem solution (8D) -  repeated production disturbances disruptions at the Buyer's ’s premises due to defective faulty deliveries -  repeated/critical complaints complaint by the Buyer’s customers, caused by errors of the Supplier  field failure or recall action by customers of the Buyer, caused by errors at the Supplier - insufficient complaint management defects of the Supplier -  inadequate complaint management on the part of the Supplier  imminent production standstill stoppage at the Buyer's ’s or the Buyer’s customer's customers' premises premises, caused by faults defects of the Supplier  critical measure resulted out of the supplier audit is not implemented  insufficient project processing of the Supplier  special customer status of the Supplier at the Supplier critical measure from a supplier audit not implemented - deficient order processing by the Supplier - loss of OEM approval or the Supplier's QMS certificate Buyer’s customer (ISO 9001 or EN/AS 9100 or ISO/TS 22163e.g. Controlled Shipping Level 1-2-3; C- classification etc.) 1) A structured escalation procedure with the Supplier is intended to ensure a smooth production and project flow and to solve or sustainably eliminate any problems that may arise as quickly as possible. The Buyer has implemented a three-level stage escalation procedure. Through a structured escalation procedure with the Supplier, the smooth production and project flow is to be guaranteed and any problems that have arisen are to be solved or eliminated in the long term. In the first escalation level stage (problem solution by Supplier not successful), the Supplier is invited to a meeting at an interview with the Buyer's premises where , during which the problem is discussed, and remedial measures are de- fined and scheduled. Xxxxx 0 Stage 2 of escalation (external help necessary to solve the problem at the Supplierwith suppliers) follows escalation level stage 1 if the result is unsatisfactory. In escalation level stage 2, a failure root cause analysis is needs to be carried out out, which takes place on site at the Supplier supplier or at the Buyer’s premises. This problem analysis can be carried out as a sup- plier audit by the Buyer as a process auditBuyer. The agreed action plan is to be executed approved by the Supplier within the a specified time frame. An unsatisfactory result of escalation level 2 leads to the initiation introduction of level 3 (Supplier supplier is not suitablesuit- able) or even to a Supplier supplier block. The Buyer’s customer of the Buyer is included in escalation level 3, 3 if Supplier was approved it is a supplier specified by the customer of the Buyer or if there is a risk for the customer of the Buyer’s customer. If the result of the effectiveness test in check at the respective escalation level is positive, a message is sent to the Supplier is notified of the lifting of informing him that the escalation (de-escalation)) has been lifted. The de-escalation procedure process is carried out in stages.

Escalation Procedure. In the event of serious deviations from the quality requirements, the Buyer reserves the right to initiate escalation proceedings with the Supplier. Possible triggers for the initiation of an escalation procedure are - repeated faulty delivery despite completed problem solution (8D) - repeated production disturbances at the Buyer's premises due to defective deliveries - repeated/critical complaints by customers of the Buyer, caused by errors at the Supplier - insufficient complaint management of the Supplier - imminent production standstill at the Buyer's or the Buyer's customers' premises caused by faults at the Supplier critical measure from a supplier audit not implemented - deficient order processing by the Supplier - loss of OEM approval or the Supplier's QMS certificate (ISO 9001 or EN/AS 9100 or ISO/TS 22163) A structured escalation procedure with the Supplier is intended to ensure a smooth production and project flow and to solve or sustainably eliminate any problems that may arise as quickly as possible. The Buyer has implemented a three-level escalation procedure. In the first escalation level (problem solution by Supplier not successful), the Supplier is invited to a meeting at the Buyer's premises where the problem is discussed, and remedial measures are de- fined and scheduled. Xxxxx 0 of escalation (external help necessary to solve the problem at the Supplier) follows escalation level 1 if the result is unsatisfactory. In escalation level 2, a root cause analysis is carried out on site at the Supplier or the Buyer. This problem analysis can be carried out by the Buyer as a process audit. The agreed action plan is to be executed by the Supplier within the specified time frame. An unsatisfactory result of escalation level 2 leads to the initiation of level 3 (Supplier is not suitable) or even to a Supplier block. The customer of the Buyer is included in escalation level 3, 3 if Supplier was approved by the customer or if there is a risk for the customer of the Buyer. If the result of the effectiveness test in the respective escalation level is positive, the Supplier is notified of the lifting of the escalation (de-escalation). The de-escalation procedure is carried out in stages.

Escalation Procedure. In the event of With serious deviations from the quality requirements, requirements the Buyer reserves the right to initiate escalation proceedings an escala- tion procedure with the Supplier. Possible triggers Triggers for the initiation of initiating an escalation procedure are may e.g. be the following: - repeated faulty delivery deliveries despite completed problem solution solving (8D) - repeated disruptions of Buyer´s production disturbances at the Buyer's premises due to defective caused by faulty deliveries - repeated/repeated/ critical complaints by customers of the Buyer, caused by errors at the Supplier faults of Sup- plier - insufficient complaint management of the Supplier - imminent impending stopages of Buyer´s production standstill at the Buyer's or the Buyer's and their customers' premises ´ production respectively, caused by faults at the of Supplier - critical measure from a action out of supplier audit not implemented - deficient unsatisfactory order processing by the of Supplier - loss Loss of OEM approval or the Suppliersupplier's QMS certificate (ISO 9001 or EN/AS 9100 or ISO/TS 221639100) A structured escalation procedure with the Supplier is intended to ensure a smooth production and project flow and to solve or sustainably eliminate any problems that may arise as quickly as possible. The Buyer has implemented a three-level stage escalation procedure. By means of a structured escalation procedure with suppliers, a smooth run of production as well as project shall be ensured; arising problems shall be solved sustainably. Escalation Stage 1: In the first escalation level stage (problem solution by Supplier supplier is not successful), ) the Supplier supplier is invited to a meeting at an interview with the Buyer's premises where customer, during which the problem is discussed, discussed and remedial measures are de- fined and scheduled. Xxxxx 0 Escalation Stage 2: Escalation to stage 2 (outside assistance required for solving of escalation (external help necessary to solve the problem at the SupplierSupplier´s) follows escalation level in case result of stage 1 if the result is unsatisfactory. In escalation level 2, Escalation stage 2 provides for a root cause analysis is carried out on that may take place on-site at the Supplier Supplier´s, or at the BuyerBuyer´s facility. This problem analysis can may be carried out performed by the Buyer as a process audit. The agreed action plan agreed is to be executed by the Supplier within in the specified time framestipulated period. Escalation Stage 3: An unsatisfactory result of to escalation level stage 2 leads to the initiation initiating of level stage 3 (Supplier is not suitable) or even to removing the Supplier as a Supplier blocksupplier to the buyer and their customers. The Buyer's customer of the Buyer is included in escalation level 3, if Supplier was approved it is a supplier specified by the customer Buyer’s Customer or if there is a risk for the customer of Buyer's customer. In the Buyer. If the result of the case where effectiveness test in evaluation at the respective escalation level is positivestages show positive results, the Supplier is shall be notified of the lifting of the escalation procedure (de-escalation). The de-de- escalation procedure is carried out in stagesshall be dealt with step by step.

Escalation Procedure. In the event of serious deviations from the quality requirements, the Buyer reserves the right to initiate escalation proceedings with the Supplier. Possible triggers for the initiation of an escalation procedure are - repeated faulty delivery despite completed problem solution (8D) - repeated production disturbances at the Buyer's premises due to defective deliveries - repeated/critical complaints by customers of the Buyer, caused by errors at the Supplier - insufficient complaint management of the Supplier - imminent production standstill at the Buyer's or the Buyer's customers' premises caused by faults at the Supplier critical measure from a supplier audit not implemented - deficient order processing by the Supplier - loss of OEM approval or the Supplier's QMS certificate (ISO 9001 or EN/AS 9100 or ISO/TS 22163) A structured escalation procedure with the Supplier is intended to ensure a smooth production and project flow and to solve or sustainably eliminate any problems that may arise as quickly as possible. The Buyer has implemented a three-level escalation procedure. In the first escalation level (problem solution by Supplier not successful), the Supplier is invited to a meeting at the Buyer's premises where the problem is discussed, and remedial measures are de- fined and scheduled. Xxxxx 0 Level 2 of escalation (external help necessary to solve the problem at the Supplier) follows escalation level 1 if the result is unsatisfactory. In escalation level 2, a root cause analysis is carried out on site at the Supplier or the Buyer. This problem analysis can be carried out by the Buyer as a process audit. The agreed action plan is to be executed by the Supplier within the specified time frame. An unsatisfactory result of escalation level 2 leads to the initiation of level 3 (Supplier is not suitable) or even to a Supplier block. The customer of the Buyer is included in escalation level 3, if Supplier was approved by the customer or if there is a risk for the customer of the Buyer. If the result of the effectiveness test in the respective escalation level is positive, the Supplier is notified of the lifting of the escalation (de-escalation). The de-escalation procedure is carried out in stages.