GM_1927-57_CS2_Entry_letter

(date)NamePresident/CEOSupplier Co NameMfg Location Duns:Pres/CEO’s Corp Address (Street)Pres/CEO’s Corp Address (City, ST ZIP)Subject: Entry into Controlled Shipping-Level 2Dear Mr. /Mrs./Ms. (last name only):Controlled Shipping is part of General Motors Supplier Processes and Measurements Procedure, GP-5, and is part of the Supplier Quality Improvement Process. Controlled Shipping is a containment and problem solving process. General Motors has determined that current controls by your organization are insufficient to insulate initiating GM (list affected GM plant name/s and state/s) Plant from the receipt of non-conforming parts/material produced by your facility. This letter is formal notification and confirms discussions held with your organization that effective (date), your (manuf’g location City, ST) facility has been placed into Controlled Shipping-Level 2(CS2). CS2 includes compliance to GP-5 as evaluated by a third party Provider assessment, for the following non-conformances. See table below:***This Controlled Shipping-Level 2 process may be completed on ALL similar part numbersor similar manufacturing processes for these listed non-conformances for ALL possibly affected General Motors vehicles or product lines at the discretion of General Motors.Therefore,you must immediately:1. Implement CS2 containment and pay the costs of the approved third-party CS2 Containment andAssessment Provider. The GM-defined Controlled Shipping-Level 2 Process activities are in addition to any existing controls and containment activities. The list of GM-approved containment and assessment providers is attached.2. Controlled Shipping-Level 1 containment must remain in effect. If Controlled Shipping-Level 1 is not inplace, consider this CS2 Entry letter as formal notification to immediately implement CS1 for the specifieddefect(s) in accordance with GM General Procedure 5 (GP-5).3. Pay the costs of the GM-approved CS2 Provider assessments, plus any spill prevention activities asrequired and follow up activities associated with any PRR action items. Follow up activities will continue and will be monitored until supplier compliance to GP-5 is validated.4. Implement and pay the costs of GM defined containment activities over and above your current processcontrols and containment activities. The supplier must enter into a contract with a GM-approved CS2Provider within 24 hours.∙The CS2 Provider must establish the CS2 containment and conduct a CS2 Kickoff Meeting within 24 hours of receiving a Purchase Order.∙The first assessment shall be initiated within 3 business days and submitted to GM within 5 business days after receiving the Purchase Order.∙Follow up assessments shall be conducted on the 15th working day, and every 30 working days thereafter, until a passing assessment is achieved.∙The required documentation includes the CS2 Assessment, Matrix, Masterdot Action Plan, 5Y Analysis USING THE DRILL DEEP WORKSHEET and Read Across.The Training Needs Verification must be completed within 5 days and updated after 45 days unless the supplier has exited CS2.5. Return the attached “Controlled Shipping Confirmation Reply” within 24 hours of the receipt of this letter.6. Clearly identify the qualified shipments to indicate that the authorized Controlled Shipping Provider hascompleted the containment process.7. GM requires that your Irreversible Corrective Action plans for CS2 issues be submitted to the GM andCS2 Provider representatives for review.8. Submit your Irreversible Corrective Action plans to your TS16949 registrar for review and/or assessment.Please authorize your registrar to submit the review and/or assessment findings to General Motors.Note: Failure to comply with this process or the inability to implement successful CS2 action plans or containment activities will result in the implementation of New Business Hold-Quality. Reference the GM Supplier Quality Processes and Measurements Procedure GP-5 at for additional details concerning Controlled Shipping.The attached CS2 Confirmation Reply form must be completed and returned within 24 hours to the GM contacts noted below.If you have any questions, your GM contacts are:(Initiating SQE’s name) - SQE @ (phone number), fax: (fax number), & e-mail: (address), who, along with the CS2 Provider Quality Engineer, will be monitoring and defining your Controlled Shipping activities, andNote to TS16949 Registrar: pursuant to this CS2 notification letter, General Motors requests your assessment findings be submitted to the individuals noted above.Sincerely,__________________________________________(Name)Group ManagerNAVOGeneral Motors CorporationAttachmentsCopy:Attachment: Entry into CS2 letter,Supplier Responsibilities During Controlled Shipping-Level 2:∙Maintain Controlled Shipping-Level 1 inspections and communications.∙Contain all non-conforming parts at the supplier, warehouses, in transit, and at any General Motors locations immediately upon notification of Controlled Shipping status.∙Participate in all Controlled Shipping-Level 2 meetings as required.∙Establish an CS2 containment area that is separated from the normal production and from the Controlled Shipping-Level 1areas. This containment area may be located within the normal production area if the General Motors representatives approve the location based on material flow, possible damage due to excessive handling, or product design considerations.∙Provide gaging, tooling, or equipment, if required, for product or process inspections.∙Validate data-supported Corrective Actions. Outline your plans for reviewing your CS2 data.∙Track and report your progress by using the GM-approved report formats as specified by the GM representatives and the TS16949 Registrar monitoring these activities.∙Participate and pay the costs of GM approved Supplier Assessment process as required by GM.∙Meet the defined CS2 exit criteria.Exit Criteria:∙No PRRs issued for the listed defects and inspection data showing no rejects into the inspection area for a minimum of 20 working days AFTER implementation of Irreversible Corrective Actions. If deemedappropriate by Supplier Quality, the duration of the Controlled Shipping activities may be adjusted.∙Implement Error Proofing as appropriate within your process for the defect(s) noted above.∙Supplier corrective actions that are classified as Error Proofing solutions require only 5-days’inspection data for validation. Criteria are as follows :1.The corrective action is classified with a detection score of 1, 2, or 3 as per the AIAG PFMEA manual.2. “Master rejects” have been made to validate the error proofing on a regular basis in production. The CS2PQE must verify that the “master rejects” work correctly and are used to validate error proofing in production.This must be added to the supplier’s process control plan.3. The GM SQE and CS2 Provider PQE agree to the above.∙Evidence that a thorough problem-solving process was used, the true root causes of the problems were discovered, and effective Irreversible Corrective Actions were implemented and validated.∙Statistical Process Control used when appropriate to confirm stable and capable processes during the 20 working days after implementation of Irreversible Corrective Actions.∙All documents [Potential Failure Mode and Effects Analysis (PFMEA), Process Control Plan, Pre-Launch (GP-12) Control Plan, Process Flow Diagram, Operator Work Instructions, training records, PM Plans, approved PRR response per GP-5, etc.] must be modified and approved, and PPAP submitted and approved as required.∙Pass CS2 assessment and close all items in the CS2 Action Plans.∙Statement from your TS16949 registrar of review and approval of the specific issue corrective actions.∙Evidence of layer audits specific to the issue corrective actions.∙Evidence of successful completion of required workshop action plans. GM may require workshops based upon assessments or as results of visits into supplier facilities.∙Required workshops, such as an LEP workshop for a mislabel CS2, must be taken to exit CS2. Completion of all workshop action items is NOT required to exit CS2. Long-term corrective action items are required for CS1 exit. Note: Supplier may exit CS2 only when all CS2 exit criteria are met. The supplier may be required to remain in CS1 until all long-term action items from workshops are completed.∙GM SQEs must respond to a supplier’s request from exit from CS2 within 72 hours of exit pa ckage receipt.1. CS2s will be considered approved for exit if there is no GM response within 72 hours.2. Denial of CS2 exit requires GM SQE to submit a business case with a manager signature (see attached ExitRequest Denial Form).∙The supplier is required to copy the initiating SQE's team leader for all exit packages.The supplier will remain in Controlled Shipping status until written authorization to exit CS is received from: (Initiating SQE’s name) - SQE @ (phone number), fax: (fax number), & e-mail: (address).MAJOR DISRUPTION PREVENTION SUMMARY SHEET1) This initiative is Supplier Funded and Supported by GM Approved Third Party Engineers (PQE). GM PQEs aretrained in the procedure.2) This initiative must be implemented at all Supplier Facilities utilizing similar processes or producing similarproducts.3) This initiative covers all PRRs issued to the supplier facility for the preceding 8 weeks at the supplier facility, plusall additional PRRs issued while the CS Activity is in place.4) At the CS2 Kickoff Meeting, the PQE will initiate the Major Disruption Prevention Initiative. Final details will bedecided at that point.5) Five Why Analysisa) Five Why Analysis will be utilized to determine true root causesi) Corrective Actions must be implemented for each “why” root cause.b) Five Why Analysis will be utilized to determine why the problem was not detected.i) Corrective Actions must be implemented for each escape “why” root cause.c) Five Why Analysis will be utilized to determine why the problem was not prevented. This investigatessystemic issues.i) Corrective Actions must be implemented for each prevention “why” root cause.d) Corrective Actions must be verified.e) Results must be included on Lessons Learned.6) Major Disruption Prevention Read Acrossa) PRR Read Across must be created for all supplier locations utilizing similar processes or producing similarproducts.7) Cost of Qualitya) Supplier must track the cost of quality relative to spills and/or this PRR.8) Action Plana) Supplier must maintain a Master Dot Action Plan for tracking all action items related to the CS and SpillPrevention Activities. This includes items determined by the read across, 5 Why analysis, CS2 Assessment, CS2 Matrix and any GM Required Workshops.b) CS2 exit requirements on Read Across:∙Original duns must be color coded Green for corrective action on all Read Across items for CS2 issue.∙Other duns location with similar process must be Yellow (minimum) on CS2 issue.∙Other PRR's within 8-week window must be Green (duns on CS2) or Yellow (other locations) for containment. Other read across items (i.e. predict corrective action) can be Red if closure dates areidentified.GENERAL MOTORS GUIDELINES FOR CONTROLLED SHIPPING EXIT PACKAGE (S) Documentation should be sent to the Originating Plant SQE and other GM Personnel as defined in the kickoff meeting.All documentation should be contained in a binder or report folder indexed for easy location of all documentation. Package should include:1. Letter requesting exit on company letterhead2. Updated PFMEA, Control Plan, Operator Work Instructions, Preventative Maintenance Plan, Flow Chart, andPrelaunch Control Plan (GP-12) with changes highlighted3. Evidence of error proofing, including implementation, validation and periodic verification.4. Well-illustrated Corrective Action Report (5Y, Quad report...)5. Acceptable PRR response. The author decides whether the response is accepted.6. Containment Data7. Training records8. PPAP documentation, if related to corrective action9. Evidence of layered audits related to the corrective action.10. Evidence of attendance and implementation of action plans generated by required workshops, if any11. GP-12 data when requested12. Other documentation and information as requested by GM13. Statistical data as appropriate.The following information is only required for CS2:14. Copy of Passing Assessment and completed action plans.15. TS 16949 Registrar’s statement of approval (or plan) for all activities undertaken by supplier related to thecontrolled shipping issue (s). GM can require additional activities.Do not separate this page from the rest of the letter & do not scan – keep in MS Word format.TO:GM SQE Assigned to supplier dunsEmail Address: GM SQE@(Plant or Organization name)(Address Street)(Address City, ST Zip Code) FROM:Supplier Co NameManuf’g Location DunsManuf’g Address (Street)Manuf’g Address (City, ST ZIP Code)We acknowledge receipt of your letter dated, (insert date), advising us that our above facility has been placed into Controlled Shipping-Level 2.Did you notify your TS16949 registrar? (mandatory for exit)If "NO" please explain:It is MANDATORY that you choose a GM approved provider. (GM Approved CS2 Providers can be found in GM SupplyPower – Quality Library – 3rd Party Provider Management – 3rd Party Provider Services – link below)https:///apps/supplypower/NASApp/spcds/CDSRetrieval?id=137952&togglefolder=20219&d oc_lang=en&lob=qualityGM is concerned with cases of GM personnel directing a supplier to choose a specific provider from thelist of GM’s approved providers above. Suppliers are free to choose from any of the provide rs listed asGM Approved service providers in GM SupplyPower as stated above in this letter. To address suchconcerns, please answer the following question - Have you been required any GM representative touse the specified CS provider you have indicated above? If you answer “yes” to this statement,please explain why: (Description of requirement to use a given provider)(double click on box to check) /(single click on blue area & type)We understand the CS2 containment process requirements:The Purchase Order # (mandatory)PO#, or other terms of agreement: verbal, blanket PO dated: PO date .Provider Contact Name type name @ e-mail address: type e-mailWe do not fully understand the containment process requirements.Please contact: Name of Contact at phone#: (Telephone number)The following is a description of how conforming parts and shipments will be identified to indicate that they have been certified as conforming to requirements.The CS2 containment activities will be performed at the following location:The person responsible for the CS2 containment activities:Name: Title: .Phone: Fax: E-mail: .(Signature of person responsible for containment) (Date)。