Common use of PRODUCT AND PROCESS FMEA Clause in Contracts

PRODUCT AND PROCESS FMEA. A Failure Mode and Effects Analysis (FMEA) shall be conducted to investigate possible risks and evaluate them in terms of importance, probability of occurrence and likelihood of detection. These risks shall be minimized by initiating appropriate measures. Therefore, the FMEA is an important means of avoiding defects. The FMEA must be conducted in due time so that results and measures can be included in the planning. An FMEA must take into account all phases of the product life cycle, such as design, production, assembly, packaging, transport and use by the customer as well as recycling and disposal. FMEAs shall be prepared or revised on the following occasions (non-exhaustive list):  development / production of new parts,  introduction of new manufacturing process,  site relocation,  changes to drawings,  changes to process,  lessons learned,  occurrence of defects. VDA Volume 4 or AIAG FMEA describe the methodology in detail. A product (design) FMEA shall be conducted for all components that are within the supplier’s design responsibility. A process FMEA shall be conducted for every step in the process of manufacturing a component. The results of the product FMEA and the special characteristics (SC/CC) shall be given special consideration. In addition, an analysis of similar parts (danger of confusion) and a fault simulation shall be integrated. Risks identified with the aid of an FMEA must be minimized in a cost-neutral manner by taking suitable measures. Deadlines and persons responsible for implementing the measures must be designated so that the measures are implemented before the start of series delivery. The measures taken shall be reevaluated with respect to the effectiveness test that was carried out. voestalpine must be promptly informed of any necessary design changes or procedural changes. TEST PLANNING / DEVELOPMENT APPROVAL Suppliers with development responsibility shall develop and implement a plan in conformity with VDA Maturity Level Assurance for New Parts or APQP under which the design (development results) is checked for fulfillment of the design specifications. This plan must, among other things, provide information about the timing, nature and scope of the validation and about the samples. The difference between the plan and its realization shall be evaluated. TESTING PLAN Based on the production control plan, the supplier shall prepare a testing plan, indicating all the characteristics to be tested and the relevant testing equipment for every operation. Alternatively, these items can also be part of the production control plan. In addition to the expense of implementation, the planning shall take into account the training of employees and the setting up of workstations in terms of statistical process control (SPC).

PRODUCT AND PROCESS FMEA. A Failure Mode and Effects Analysis (FMEA) shall be conducted to investigate possible risks and evaluate them in terms of importance, probability of occurrence and likelihood of detection. These risks shall be minimized by initiating appropriate measures. Therefore, the FMEA is an important means of avoiding defects. The FMEA must be conducted in due time so that results and measures can be included in the planning. An FMEA must take into account all phases of the product life cycle, such as design, production, assembly, packaging, transport and use by the customer as well as recycling and disposal. FMEAs shall be prepared or revised on the following occasions (non-exhaustive list):  development / production of new parts,  introduction of new manufacturing process,  site relocation,  changes to drawings,  changes to process,  lessons learned,  occurrence of defects. VDA Volume 4 or AIAG FMEA describe the methodology in detail. A product (design) FMEA shall be conducted for all components that are within the supplier’s design responsibility. A process FMEA shall be conducted for every step in the process of manufacturing a component. The results of the product FMEA and the special characteristics (SC/SC/ CC) shall be given special consideration. In addition, an analysis of similar parts (danger of confusion) and a fault simulation shall be integrated. Risks identified with the aid of an FMEA must be minimized in a cost-neutral manner by taking suitable measures. Deadlines and persons responsible for implementing the measures must be designated so that the measures are implemented before the start of series delivery. The measures taken shall be reevaluated with respect to the effectiveness test that was carried out. voestalpine must be promptly informed of any necessary design changes or procedural changes. TEST PLANNING / DEVELOPMENT APPROVAL Suppliers with development responsibility shall develop and implement a plan in conformity with VDA Maturity Level Assurance for New Parts or APQP under which the design (development results) is checked for fulfillment of the design specifications. This plan must, among other things, provide information about the timing, nature and scope of the validation and about the samples. The difference between the plan and its realization shall be evaluated. TESTING PLAN Based on the production control plan, the supplier shall prepare a testing plan, indicating all the characteristics to be tested and the relevant testing equipment for every operation. Alternatively, these items can also be part of the production control plan. In addition to the expense of implementation, the planning shall take into account the training of employees and the setting up of workstations in terms of statistical process control (SPC).

PRODUCT AND PROCESS FMEA. A Failure Mode and Effects Analysis (FMEA) shall be conducted to investigate possible risks and evaluate them in terms of importance, probability of occurrence and likelihood of detection. These risks shall be minimized by initiating appropriate measures. Therefore, the FMEA is an important means of avoiding defects. The FMEA must be conducted in due time so that results and measures can be included in the planning. An FMEA must take into account all phases of the product life cycle, such as design, production, assembly, packaging, transport and use by the customer as well as recycling and disposal. FMEAs shall be prepared or revised on the following occasions (non-exhaustive list):  ⮚ development / production of new parts,  ⮚ introduction of new manufacturing process,  ⮚ site relocation,  ⮚ changes to drawings,  ⮚ changes to process,  ⮚ lessons learned,  ⮚ occurrence of defects. VDA Volume 4 or AIAG FMEA describe the methodology in detail. A product (design) FMEA shall be conducted for all components that are within the supplier’s design responsibility. A process FMEA shall be conducted for every step in the process of manufacturing a component. The results of the product FMEA and the special characteristics (SC/CC) shall be given special consideration. In addition, an analysis of similar parts (danger of confusion) and a fault simulation shall be integrated. Risks identified with the aid of an FMEA must be minimized in a cost-neutral manner by taking suitable measures. Deadlines and persons responsible for implementing the measures must be designated so that the measures are implemented before the start of series delivery. The measures taken shall be reevaluated with respect to the effectiveness test that was carried out. voestalpine must be promptly informed of any necessary design changes or procedural changes. TEST PLANNING / DEVELOPMENT APPROVAL Suppliers with development responsibility shall develop and implement a plan in conformity with VDA Maturity Level Assurance for New Parts or APQP under which the design (development results) is checked for fulfillment of the design specifications. This plan must, among other things, provide information about the timing, nature and scope of the validation and about the samples. The difference between the plan and its realization shall be evaluated. TESTING PLAN Based on the production control plan, the supplier shall prepare a testing plan, indicating all the characteristics to be tested and the relevant testing equipment for every operation. Alternatively, these items can also be part of the production control plan. In addition to the expense of implementation, the planning shall take into account the training of employees and the setting up of workstations in terms of statistical process control (SPC).

PRODUCT AND PROCESS FMEA. A Failure Mode and Effects Analysis (FMEA) shall be conducted to investigate possible risks and evaluate them in terms of importance, probability of occurrence and likelihood of detection. These risks shall be minimized by initiating appropriate measures. Therefore, the FMEA is an important means of avoiding defects. The FMEA must be conducted in due time so that results and measures can be included in the planning. An FMEA must take into account all phases of the product life cycle, such as design, production, assembly, packaging, transport and use by the customer as well as recycling and disposal. FMEAs shall be prepared or revised on the following occasions (non-exhaustive list):  ⮚ development / production of new parts,  ⮚ introduction of new manufacturing process,  ⮚ site relocation,  ⮚ changes to drawings,  ⮚ changes to process,  ⮚ lessons learned,  ⮚ occurrence of defects. VDA Volume 4 or AIAG FMEA describe the methodology in detail. A product (design) FMEA shall be conducted for all components that are within the supplier’s design responsibility. A process FMEA shall be conducted for every step in the process of manufacturing a component. The results of the product FMEA and the special characteristics (SC/CC) shall be given special consideration. In addition, an analysis of similar parts (danger of confusion) and a fault simulation shall be integrated. Risks identified with the aid of an FMEA must be minimized in a cost-neutral manner by taking suitable measures. Deadlines and persons responsible for implementing the measures must be designated so that the measures are implemented before the start of series delivery. The measures taken shall be reevaluated with respect to the effectiveness test that was carried out. voestalpine must be promptly informed of any necessary design changes or procedural changes. TEST PLANNING / DEVELOPMENT APPROVAL Suppliers with development responsibility shall develop and implement a plan in conformity with VDA Maturity Level Assurance for New Parts or APQP under which the design (development results) is checked for fulfillment of the design specifications. This plan must, among other things, provide information about the timing, nature and scope of the validation and about the samples. The difference between the plan and its realization shall be evaluated. TESTING PLAN Based on the production control plan, the supplier shall prepare a testing plan, indicating all the characteristics to be tested and the relevant testing equipment for every operation. Alternatively, these items can also be part of the production control plan. In addition to the expense of implementation, the planning shall take into account the training of employees and the setting up of workstations in terms of statistical process control (SPC).

PRODUCT AND PROCESS FMEA. A Failure Mode and Effects Analysis (FMEA) shall be conducted to investigate possible risks and evaluate them in terms of importance, probability of occurrence and likelihood of detection. These risks shall be minimized by initiating appropriate measures. Therefore, the FMEA is an important means of avoiding defects. The FMEA must be conducted in due time so that results and measures can be included in the planning. An FMEA must take into account all phases of the product life cycle, such as design, production, assembly, packaging, transport and use by the customer as well as recycling and disposal. FMEAs shall be prepared or revised on the following occasions (non-exhaustive list):  ⮚ development / production of new parts,  ⮚ introduction of new manufacturing process,  ⮚ site relocation,  ⮚ changes to drawings,  ⮚ changes to process,  ⮚ lessons learned,  ⮚ occurrence of defects. VDA Volume 4 or AIAG FMEA describe the methodology in detail. A product (design) FMEA shall be conducted for all components that are within the supplier’s design responsibility. A process FMEA shall be conducted for every step in the process of manufacturing a component. The results of the product FMEA and the special characteristics (SC/SC/ CC) shall be given special consideration. In addition, an analysis of similar parts (danger of confusion) and a fault simulation shall be integrated. Risks identified with the aid of an FMEA must be minimized in a cost-neutral manner by taking suitable measures. Deadlines and persons responsible for implementing the measures must be designated so that the measures are implemented before the start of series delivery. The measures taken shall be reevaluated with respect to the effectiveness test that was carried out. voestalpine must be promptly informed of any necessary design changes or procedural changes. TEST PLANNING / DEVELOPMENT APPROVAL Suppliers with development responsibility shall develop and implement a plan in conformity with VDA Maturity Level Assurance for New Parts or APQP under which the design (development results) is checked for fulfillment of the design specifications. This plan must, among other things, provide information about the timing, nature and scope of the validation and about the samples. The difference between the plan and its realization shall be evaluated. TESTING PLAN Based on the production control plan, the supplier shall prepare a testing plan, indicating all the characteristics to be tested and the relevant testing equipment for every operation. Alternatively, these items can also be part of the production control plan. In addition to the expense of implementation, the planning shall take into account the training of employees and the setting up of workstations in terms of statistical process control (SPC).

PRODUCT AND PROCESS FMEA. A Failure Mode and Effects Analysis (FMEA) shall be conducted to investigate possible risks and evaluate them in terms of importance, probability of occurrence and likelihood of detection. These risks shall be minimized by initiating appropriate measures. Therefore, the FMEA is an important means of avoiding defects. The FMEA must be conducted in due time so that results and measures can be included in the planning. An FMEA must take into account all phases of the product life cycle, such as design, production, assembly, packaging, transport and use by the customer as well as recycling and disposal. FMEAs shall be prepared or revised on the following occasions (non-exhaustive list):  development / production of new parts,  introduction of new manufacturing process,  site relocation,  changes to drawings,  changes to process,  lessons learned,  occurrence of defects. VDA Volume 4 or AIAG FMEA describe the methodology in detail. A product (design) FMEA shall be conducted for all components that are within the supplier’s design W K H V X S responsibility. A process FMEA shall be conducted for every step in the process of manufacturing a component. The results of the product FMEA and the special characteristics (SC/CC) shall be given special consideration. In addition, an analysis of similar parts (danger of confusion) and a fault simulation shall be integrated. Risks identified with the aid of an FMEA must be minimized in a cost-neutral manner by taking suitable measures. Deadlines and persons responsible for implementing the measures must be designated so that the measures are implemented before the start of series delivery. The measures taken shall be reevaluated with respect to the effectiveness test that was carried out. voestalpine must be promptly informed of any necessary design changes or procedural changes. TEST PLANNING / DEVELOPMENT APPROVAL Suppliers with development responsibility shall develop and implement a plan in conformity with VDA Maturity Level Assurance for New Parts or APQP under which the design (development results) is checked for fulfillment of the design specifications. This plan must, among other things, provide information about the timing, nature and scope of the validation and about the samples. The difference between the plan and its realization shall be evaluated. TESTING PLAN Based on the production control plan, the supplier shall prepare a testing plan, indicating all the characteristics to be tested and the relevant testing equipment for every operation. Alternatively, these items can also be part of the production control plan. In addition to the expense of implementation, the planning shall take into account the training of employees and the setting up of workstations in terms of statistical process control (SPC).

PRODUCT AND PROCESS FMEA. A Failure Mode and Effects Analysis (FMEA) shall be conducted to investigate possible risks and evaluate them in terms of importance, probability of occurrence and likelihood of detectiondete ction. These risks shall be minimized by initiating appropriate measures. Therefore, the FMEA is an important means of avoiding defects. The FMEA must be conducted in due time so that results and measures can be included in the planning. An FMEA must take into account all phases of the product life cycle, such as design, production, assembly, packaging, transport and use by the customer as well as recycling and disposal. FMEAs shall be prepared or revised on the following occasions (non-exhaustive non -exhaustive list):  ¾ development / production of new parts,  ¾ introduction of new manufacturing process,  ¾ site relocation,  ¾ changes to drawings,  ¾ changes to processprocess ,  ¾ lessons learned,  ¾ occurrence of defectsdefects . VDA Volume 4 or AIAG FMEA describe the methodology in detail. A product (design) FMEA shall be conducted for all components that are within the supplier’s design $ SURGXFW GHVLJQ )0($ VKDOO EH FRQGXFWHG IRU DOO responsibility. A process FMEA shall be conducted for every step in the process of manufacturing a component. The results of the product FMEA and the special characteristics (SC/CC) shall be given special consideration. In addition, an analysis of similar parts (danger of confusion) and a fault simulation shall be integrated. Risks identified with the aid of an FMEA must be minimized in a cost-neutral cost -neutral manner by taking suitable measures. Deadlines and persons responsible for implementing the measures must be designated so that the measures are implemented before the start of series delivery. deliver y. The measures taken shall be reevaluated with respect to the effectiveness test that was carried out. voestalpine must be promptly informed of any necessary design changes or procedural changes. TEST PLANNING / DEVELOPMENT APPROVAL Suppliers with development develo pment responsibility shall develop and implement a plan in conformity with VDA Maturity Level Assurance for New Parts or APQP under which the design (development results) is checked for fulfillment of the design specifications. This plan must, among other things, provide information about the timing, nature and scope of the validation and about the samples. The difference between the plan and its realization shall be evaluated. TESTING PLAN Based on the production control plan, the supplier shall prepare a testing plan, indicating all the characteristics to be tested and the relevant testing equipment for every operation. Alternatively, these items can also be part of the production control plan. In addition to the expense of implementation, the planning shall sh all take into account the training of employees and the setting up of workstations in terms of statistical process control (SPC).

PRODUCT AND PROCESS FMEA. A Failure Mode and Effects Analysis (FMEA) shall be conducted to investigate possible risks and evaluate them in terms of importance, probability of occurrence and likelihood of detection. These risks shall be minimized by initiating appropriate measures. Therefore, the FMEA is an important means of avoiding defects. The FMEA must be conducted in due time so that results and measures can be included in the planning. An FMEA must take into account all phases of the product life cycle, such as design, productionproduc tion, assembly, packaging, transport and use by the customer as well as recycling and disposal. FMEAs shall be prepared or revised on the following occasions (non-exhaustive non -exhaustive list):  development / production of new parts,  introduction of new manufacturing process,  site relocation,  changes to drawings,  changes to processprocess ,  lessons learned,  occurrence of defectsdefects . VDA Volume 4 or AIAG FMEA describe the methodology in detail. A product (design) FMEA shall be conducted for all components that are within the supplier’s design W K H V X S responsibility. A process FMEA shall be conducted for every step in the process of manufacturing a component. The results of the product FMEA and the special characteristics (SC/SC/ CC) shall be given special consideration. In addition, an a n analysis of similar parts (danger of confusion) and a fault simulation shall be integrated. Risks identified with the aid of an FMEA must be minimized in a cost-neutral cost -neutral manner by taking suitable measures. Deadlines and persons responsible for implementing implementin g the measures must be designated so that the measures are implemented before the start of series delivery. The measures taken shall be reevaluated with respect to the effectiveness test that was carried out. voestalpine must be promptly informed of any necessary ne cessary design changes or procedural changes. TEST PLANNING / DEVELOPMENT APPROVAL Suppliers with development responsibility shall develop and implement a plan in conformity with VDA Maturity Level Assurance for New Parts or APQP under which the design (development d evelopment results) is checked for fulfillment of the design specifications. This plan must, among other things, provide information about the timing, nature and scope of the validation and about the samples. The difference between the plan and its realization realiza tion shall be evaluated. TESTING PLAN Based on the production control plan, the supplier shall prepare a testing plan, indicating all the characteristics to be tested and the relevant testing equipment for every operation. Alternatively, these items can also be part of the production control plan. In addition to the expense of implementation, the planning shall take into account the training of employees and the setting up of workstations in terms of statistical process control (SPC).