Supplier Capacity Verification

Guidelines
DRiV Document n° RDCL-00085 Revision: 1 9/15/2020 Purchasing

Purpose :
The purpose of Run @ Rate is to verify whether the actual supplier's manufacturing process is capable of producing components that meet the customer quality requirements, at
quoted tool capacity for defined period of time. Furthermore that the supplier's process conforms the manufacturing and quality plan documented by the supplier in the PSW
documentation and other required documentation.

Set-up
The first step in analyzing the production capacity is the calculation of the availability of the production equipment. The "Shared Allocation" worksheet can be used also to analyze
the current workload of an equipment to get information about free production capacity without having a Run@Rate production run.

The run at rate verification form is used to verify the supplier has acceptable capacity in place based on the established work schedule, volumes, projected utilization and actual run-
off results. The verification is based on the quoted annual volume + a percentage of flexibility.
DRiV expects a basic level of mistake proofing to be implemented for identifying non-conforming product during the Run@Rate production run. Action plans may be required for
standard checklist items as well as other items determined by the DRiV representative.

The Run@ rate should be conducted during normal working condition:

- amount of team members used as quoted, quality controls to be executed according to the production control plan.
- all used material and components should be PPAP approved.
- additional controls to demonstrate process capability should be done off-line and should not impact the Run@Rate output.

It is manatory that the supplier informs the team members of the purpose of the Run@Rate.
Interpreting Results
The installed capacity is verified against the daily maximum capacity requirement by using the available production time.

SUMMARY
Process Utilization % max parts per day Capacity Status (MCR)

76,60% 327 Acceptable

Bottleneck process pipe bending

Capacity Status (MCR),

The Run@Rate is "Approved", if the supplier is able to meet the daily capacity requirement including the defined flexibility (D_MCR).
If the supplier meets the D_MCR, but the process utilization of the bottleneck process is more than 90%, them the result is "Approved with Caution". In this case a capacity review
needs to done and documented.If the output is below the D_MCR, then the Run@Rate status will be "Red" and the current capacity is rated as "Unacceptable". A capacity review
needs to done and corrective actions needs to be defined. A follow up Run@Rate may be required.

Process Utilization % ,
is the percentage of needed capacity of the bottleneck process for the required maximum daily volume (Maximum daily requirement / available daily output)
Max parts per day:
Maximum production output of good parts of the slowest process

Capacity < MCR

available free
production time
Capacity >= Daily MCR, but process
utilization >90%
total available production time

Capacity > Daily MCR

Already blocked
production time
for other
componets or
products.

The current capacity need to be verified against the available free production time, plannded to be used to produce the part for DRiV. The available production time equals the
normal production regime as installed at the supplier (e.g. 5 days, 2 shifts) BUT should not exceeding a 100 hours /week regime (= 5 days/week- 3 shifts/day – 8hours/shift) and 240
days/years. In case the normal production regime of the supplier is different, the supplier should contact DRiV to get aligned prior the Run@Rate takes place.

-1- Availability for Shared Equipment

Before a Run@Rate evaluation can be done, it is required to know the free capacity - as percentage of the total capacity - of the needed production equipment. This file contains a
worksheet which can be used to estimate the current free capacity . The calculation considers the standard working hours, numbers of available machines as well as the setup
times and scrap rates.
The availability information needs to be calculated for each process step of the manufacturing process. Additional worksheets can be created easily by click on the "Add new sheet"
button.

Standard working information of the equipment used for the process / operation

Information about current workload

and free capacity for this process / Operation.
If the total used capacity will exeed 80 % the status will be
"Yellow". If total workload is >=100% the status is "Red"

Part-no related information for the

analysed process/ operation

available
capacity
available free capacity

total available capacity

if this is a shared process/Operation add the information needed capacity for part D
for all part-no's which use also this equipment = 100%

currently used
capacity
needed capacity for part C

needed capacity for part B

needed capacity for part A

-2- Capacity Evaluation (Run@Rate)

The DRiV Capacity Evaluation consists of 3 phases :
Phase 1 : Supplier Working Standard
 Process / Operation Input here: the process number, enter the required process steps downstream

Process describtion Input here: a brief process describtion

Input here: enter a x in the field in case the Process / Operation is direct linked with the following process. For linked
linked Process / Operation
operations/processes the scrap rate of the current process step is taken into account of the previous process step.

Working hours/shift Input here: the number of actual working hours per shift without any planned downtime

Planned downtime hours/shift Input here: any planned downtime due to maintenance, meal breaks, cleaning, setups/changeovers, etc

Nbr of identical machines Input here: Amount of identical machines available to run this operation or process step.

Shifts/ day Input here: the number of shifts per day.

Days / week Input here: the number of normal working days per week. Do not include overtime days

Weeks/year Input here: the number of working weeks per year. Do not include any shutdown weeks

Total Available Time (hours/day) Calculated: number of working hours per day that the equipment could run, without planned downtime.
(Working hours per shift - Downtime per Shift ) * Shifts/Day * Nbr of identical machines
Total Available Time Calculated: number of working hours per week that the equipment could run, without planned downtime.
(hours/week) (Available working hours per day * Days per week)

Phase 2 : Supplier Quoted Capacity Data

Input here: percentage this machine /process (for shared machine / operations) is free to be used for the analysed DRiV Product.
Available Capacity
You can use the calculation sheet to determine the percentage. Total availabe production time = 100%.

Qutoed Output Rate Input here: quoted production rate (pcs/hour) of the operation.

Calculated scrap rate Input here: quoted percentage of expected rejecteted parts (set-up parts, destructive test, non-conform).

Net Available Time Calculated: available production time in hours per day to produce the part.
(total available time * percentage of free time for the specific part)

Planned Output Rate Calculated: planned output, based on net available time, planned production rate and expected scrap rate
(Net available time * Theoretical cycle time * 1-%scrap)
Req'd good parts to support next Calculated: total amont of parts required @ MCR to support next operation considering the expected scrap rate
process (MCR) (Daily MCR * 1- % scrap), for linked operations (Daily MCR* 1-%scrap + scrap rate of previous operation)

Line utilization @ MCR Calculated: percentage of needed capacity for the maximum required annual volume.
(Annual maximum requirement / annual planned output rate)

Phase 3 : Capacity Verification Result

Input here: Duration time of the Run@Rate production run in hours
Monitored production run
(if duration less than 1 hour calculate duration time as Minutes / 60)
Input here: sum of any downtime / operation stopp in hours
Downtime (unplanned)
(if duration less than 1 hour calculate duration time as Minutes / 60)

Total number of parts produced Input here: the number of total parts produced during the Run@Rate

Total number defective parts Input here: the number of non conforming or bad parts produced during the Run@Rate

Operating Time Calculated: Real production time during the Run@Rate.

(monitored production time - downtime)

Achived production rate Calculated: Output of good parts per hour, day, week, year based on achived production rate .
(total parts run - total defects) / monitored production run

Available Output Calculated: Available capacity per day, week, year calculated with achived production rate.
(Achived production rate * available production time (days, week, year)

Calculated: Achieved Availability

Achieved Availability
(Operating Time / Monitored production run)

Achieved Performance Calculated: Achieved Performance

(Theoretical Cycle Time × Total Number of Parts) / Operating Time

Achieved Quality Calculated: percentage of produced good parts.

(total parts run - total defect) / total parts run

Achieved O.E.E. Calculated: percentage of produced good parts.

(total parts run - total defect) / total parts run

Achieved utillization @ D_MCR Calculated: percentage of needed capacity for the required maximum daily volume.
(Maximum daily requirement / available daily output)

Deviation Cycle time Calculated: percentage of deviation of achieved production output (parts/hour) time and theoretical production rate (parts/hour).
(achieved production rate / planned output rate)

-3- Process Documentation

This page has some yes/o questions to document the process used to produce the parts at the time of the Run@ Rate

-4- Process Capability

All defined critical or significant characteristics should be inspected using the control method as defined in the supplier control plan. The results of this inspection must be
documented in the "Process Capability Sheet". The inspection / measurement process of this parts should not interrupt the Run@Rate production unless, it is part of the production
process.

SPECIFICATION DATA AND MEASUREMENT RESULTS

 Critical or Lower Cpk*
Characteristic Sample Size Average Standard Deviation Upper Specification
Signficant? Specification assume NV

Characteristic or Specification Input here: Description the characteristic (i.e.: flatness, hole position etc)
Critical or Signficant? Select here: Definition of the characteristic, either CC for critical, SC for significant or NA for not defined
Sample Size Input here: Number of parts inspected
Average Input here: average value of the measured characteristic
Standard Deviation Input here: value of the standard deviation of the measured characteristic
Upper Specification Input here: Upper specification limit , If there is no specification limit available (single side tolerance), leave this field blank
Lower Specification Input here: Lower specification limit , If there is no specification limit available (single side tolerance), leave this field blank
Cpk* (assume NV distibuted data) Calculated: Process Capability, based on the formular for normal distributed data.
 Shared allocation for machine
Working hours/shift hours YELLOW CELLS ARE CALCULATED AND PROTECTED

Planned downtime hours/shift hours

Nbr of identical machines nbr
Shifts/day shifts
Days /week days
Weeks/year weeks
Total Available Time hours/year
Total Available Time hours/month

Process / Operation number

Process description
Working hours Working hours
Month month year escalation rules
Total used capacity (incl. part in line 0) 0.00% 0 0 1 >80%=Yellow;
Current used capacity (excl. part in line 0) 0.00% 0 0 1 >100%=Red;
Available capacity 100.00% 0 0

actual /
Number of Setup Production Required
Monthly estimated Monthly working Annual working Required Scrapped
work orders Setups per time/run Rate in production
Volume scrap rate hrs required hrs required Allocation parts
month (hrs) pcs/hr volume
%
hrs/month hrs/year % pcs/month pcs/month
 A B C D E F G H I J K
2 Capacity Verification Form
3 CUSTOMER: SUPPLIER: DRiV Part Description
4 DRiV inc. DRiV Part Number
5 Revision
6 Annual Volume (LCR) Flexibility
7 CUSTOMER RESPONSIBLE PERSON: SUPPLIER RESPONSIBLE PERSON: Annual Volume (MCR)
8 Contact : Contact : Daily Capacity D_LCR / D_MCR
9 Phone n° : Phone n° : Weekly Capacity W_LCR / W_MCR
10 e-mail : e-mail : DRiV Customer / Plattform Code
11 TEN Document n° RDCL-00085 Revision: 1 9/15/2020 Purchasing
12 Process / Operation number
13 Process description
14 enter x for linked Process / Operation
Supplier Working

15
16 Working hours/shift hours
Standard

17 Planned downtime hours/shift hours

18 Nbr of identical machines nbr
19 Shifts/day shifts
20 Days /week days
21 Weeks/year weeks
22 Total Available Production Time hours/day
23 Total Available Production Time hours/week
24
25 Available Capacity %
26 Qutoed Output Rate pcs/hour
Supplier Quoted
Capacity Data

27 Calculated scrap rate %

28 Net Available Time hours/day
29 pieces/day
30 Planned Output Rate pieces/week
31 pcs/year
32 Req'd good parts to support next process (MCR) pcs/day
33 Line utilization @ MCR %
34
35 Monitored production run hours
36 Downtimes (unplanned) hours
37 Total number of produced parts pcs
38 Total number defective parts pcs
Capacity Verification

39 Operating Time hours

40 Achived production rate pcs/hour
41 pcs/day
Result

42 Available Output pcs/week

43 pcs/year
44 Achieved Availability %
45 Achieved Performance %
46 Achieved Quality %
47 Achieved OEE %
48 Achieved utillization @ D_MCR %
49 Deviation of Output % 0%
50
51 SHADED CELLS ARE CALCULATED and protected
52 The Overall Process Utilization are acceptable and meet capacity planning volume requirements: Yes No limits SUMMARY
53 The attached capability study results meet requirements: Yes No 5% Process Utilization % max parts per day Capacity Status (MCR)
54 Process follows Control Plan and Process Flow Diagram? Yes No 10%
55 Corrective actions are required: Yes No 90%
56 New production readiness trial run is required: Yes No Bottleneck process
57
58 Date of Capacity Verification:
59 Supplier representative signature: Auditor signature:

60
Comments:
 Capacity Verification Process Documentation
CUSTOMER: SUPPLIER: DRiV Part Description
DRiV Part Number
Revision
DRiV Annual requirement
CUSTOMER RESPONSIBLE PERSON: SUPPLIER RESPONSIBLE PERSON: Annual Volume Flexibility
Contact : Contact : Daily Capacity D_LCR / D_MCR
Phone n° : Phone n° : Weekly Capacity W_LCR / W_MCR
e-mail : e-mail : DRiV Customer / Plattform Code
DRiV Document n° RDCL-00085 Revision: 1 Revision date: 9/15/2020 Purchasing

Manufacturing Process Result Comments*

Is the product being manufactured at the production side using the production tooling, gauging, process materials, team members, Yes No
1
environment and process settings ?

Does the actual process flow agree with the Process Flow Diagram? (Review the facility plan and layout. Walk through the process
2
with the flow chart.) Yes No

3 Are team members instructions / visual aids available and adhered at each work station ? Yes No

4 Is all in-process documentation, such as process control charts, in place at the time of the Capacity Verification ? Yes No

5 Is the documentation utilized to drive a defined reaction plan and corrective action process ? Yes No

6 When required, are the boundary samples approved by the responsible personel ?
Yes No

7 Are critical spare parts identified and repair and maintenance parts available ? Yes No

8 Is there planned downtime for preventive maintenance?

Yes No

9
Were any problems identified, during the review of in process packaging and final shipment packaging for prevention of part quality Yes No
and ease of use by supplier's team members loading and unloading parts ?

Does the supplier's method for process and final shipping packaging and handling effectively eliminate the potential for process
10
errors or mixed stock ? Yes No

11 Are all production checking fixtures complete, with acceptable measurements system studies (i.e., Gauge R&R) performed? Yes No

12 Are all in process gauging and controls complete, functional and in place ? Yes No

13 Do the process Control Plan agree with the actual process ? Yes No

14 Does production part check and statistical monitoring take place as outlined on the process Control Plan ? Yes No

15 Are potential failure modes, as identified in the P-FMEA, addressed through error-proofing or Control Plan ? Yes No

16 Does the process Control Plan, reaction plans and the supplier's corrective actions ensure effective containment and correction? Yes No

17 Is the launch containment process established and working for that product as per DRiV guidelines in supplier manual?
Yes No
 Capability Verfication Process Capability
CUSTOMER: SUPPLIER: DRiV Part Description
DRiV Part Number
Revision
DRiV Annual requirement
CUSTOMER RESPONSIBLE PERSON: SUPPLIER RESPONSIBLE PERSON: Annual Volume Flexibility
Contact : Contact : Daily Capacity D_LCR / D_MCR
Phone n° : Phone n° : Weekly Capacity W_LCR / W_MCR
e-mail : e-mail : DRiV Customer / Plattform Code
DRiV Document n° RDCL-00085 Revision: 1 Revision date: 9/15/2020 Purchasing

SPECIFICATION DATA AND MEASUREMENT RESULTS

Critical or Sample Upper Lower Cpk*

Characteristic or Specification Average Standard Deviation
Signficant? Size Specification Limit Specification Limit assume NV

1
2
3
4
5
6
7
8
9
10

ATTRIBUTE DATA RESULTS

Critical or Inspected 95% ppm confidence level
Characteristic or Specification defected parts ppm est. Cpk
Signficant? parts worst case best case
1
2
3
4
5
6
7
8
9
10
 History
DRiV Document n° RDCL-00085 Revision: 1 Revision date: 9/15/2020

Document Revision History :

DATE Change
September 15, 2020 Form protected - semantics adapted
January 30, 2020 Form transferred from RDCL-00024 v0 into a separate document number