Important Note:
Each supplier wishing to do business with Tenneco is required
to meet the guidelines indicated in this European Supplier Manual,
as well as the Worldwide Supplier Manual.

Tenneco Europe Policy

It is the committed policy of Tenneco Europe to achieve the manufacture and supply of defect free products to our customers (zero ppm).

To ensure we achieve and maintain our goals, a vigorous policy of never ending improvement has been developed dedicated to creating the necessary attitude and environment throughout the company.

TOTAL QUALITY can be achieved only by a coordinated team approach in all areas of the company and SUPPLIERS are the first and one of the most important parts of it.

We believe that the operation of these procedures by all our suppliers is the only way in which we can achieve our objectives, and therefore their:

APPLICATION IS MANDATORY

1.1

Objectives and Scope

1.1.1

This standard places on the supplier the responsibility for the provision and maintenance of a quality and management system which will ensure that supplies and services meet the specifications established in the purchase orders.

The supplier will create and carry out all the necessary processes to assure that these requirements will be achieved, and Tenneco Europe will carry out audits on the product and / or process when considered necessary.

1.1.2

The compliance of the requirements stated in this manual will be considered as a part of our purchasing conditions but never a substitution of them.

Tenneco Europe will offer all the necessary assistance to the supplier continuous improvement program, but in any case all the responsibility for the quality of the products and services is of the manufacturer.

1.1.3

Full compliance and approval to this procedures is mandatory for a producer be able to supply all Tenneco Europe plants.

1.2

Mission Statement

Our Mission : "To be the world's leading marketer and manufacturer of high-quality ride and emission control products and services which furnish the best value to the customer in both the replacement and original equipment markets. To sustain consistent long-term growth and strong financial performance which provide the resources to reinvest in our people, products, and processes, while providing attractive returns to our owners. To be responsible to our customers, employees and communities."

Our philosophy is to achieve our objectives through working with suppliers who are also seeking to establish a partnership based on mutual trust and cooperation and who have a commitment to continuous improvement following a customer oriented quality philosophy.

To be a world class supplier of ride and emission control products we need a strong supplier base: our suppliers are a key element in achieving our objectives and therefore we need an instrument to select and evaluate them. This instrument was created by Tenneco Worldwide and is used by the whole Tenneco group. It selects and evaluates suppliers on the basis of their performance in terms of Quality, Delivery, Value and Service. Our suppliers will get a European performance rating. This is the rating given for delivering parts and services to the ride control sites of Tenneco Europe.

We hope that this brochure provides you with a clearer explanation of our supplier performance system. We look forward to working together with you.

Should you have any questions, please feel free to contact your commodity buyer.

Advanced Quality Planning

2.1

Feasibility

When a new product is required, the supplier must evaluate the possibility of introducing it according to the specifications, and engineering requirements on the drawings, including environmental and any other applicable regulatory requirements.

This feasibility exercise is absolutely necessary to ensure that the product can be consistently manufactured on a production basis to the highest quality standard at an economical cost, and it is recommended that a project manager is nominated for this job.

2.2

Process Flow Chart

Process flow chart is required during feasibility analysis as a base for other advanced quality planning techniques such as FMEA, control plans etc., and a detailed review of process is to be adopted to ensure that any lessons learned from previous concerns and experiences are incorporated.

2.3

Failure Mode and Effect Analysis (FMEA)

2.3.1

The FMEA assists in the prevention of the problems that could occur during the manufacturing process and must be developed by the supplier team before the manufacturing of samples and is required for new or changed products. The FMEA is a living document and must be updated throughout the product life.

This system includes the analysis of potential failure modes, severity of failure in case of occurrence, possibility of detection and the actions taken to eliminate them.

2.3.2

The FMEA carried out by the supplier must be available for any inspection requested by representative of Tenneco Europe.

2.3.3

This FMEA can be done using the latest FMEA guidelines and Tenneco Europe will offer any kind of help to the supplier, as required.

2.3.4

Product characteristics and process parameters identified by the FMEA as “significant" or “critical” will be the key for the development of the control plan.

2.3.5

The supplier must develop as part of the manufacturing control system, fool proofing techniques to prevent defective products passing to the next operation. All fool proofing techniques must be clearly identified.

2.3.6

The FMEA is not required to be submitted to Tenneco Europe but must be available for review at the supplier’s location.

2.4

Control Plan

The control plan will be developed by suppliers, showing all significant, critical characteristics -dimensions, ES tests and process parameters- connected to the product.

All control plans must clearly indicate check frequencies, statistical controls, specifications, evaluation methods and sample sizes as well as reaction in case of encountering out of control conditions.

The Supplier Development Specialist or quality representative of Tenneco Europe will review the control plans before the preparation of the P.P.A.P. submission. It is mandatory that a copy of the control plan is sent with the final P.P.A.P. submission documentation

Essential elements included in the control plan are:

Process steps and description,
Machine and tooling used on each step,
Control process procedure including sample size, frequency and specification and gauging method,
Analysis method and statistical controls used throughout the process,
Reaction to out of control conditions,
Identification of significant-critical characteristics.

2.4.1

A full documented layout and functional testing program for all external fit and functional parts must be carried out by the supplier. This requirement must be agreed by Tenneco Quality and Engineering and clearly identified in the agreed Process Control Plan.

2.5

Gauge Planning

The choice of gauging and testing equipment are essential for quality planning. Suppliers must obtain wherever possible variable data measurement.

Suppliers will arrange an effective calibration and control system for all and each of their gauges and testing equipment, conducting measurement system variation studies for all gauges and measuring equipment wherever necessary (repeatability and reproducibility studies).

Acceptance criteria based on R & R studies are:

< 10 % of tolerance ---> accepted
10 - 30 % of tolerance ---> accepted on importance and application
> 30 % of tolerance ---> unacceptable

At the same time it is the suppliers responsibility to provide all the necessary equipment to carry out all the Engineering tests specified on drawings, unless agreed otherwise with TAE Purchase and Engineering.

2.6

Preliminary Process Capability

Before starting the manufacturing process, suppliers will conduct all the preliminary capability studies required on the characteristics identified on the control plan.

These short term studies are conducted to obtain early information on the performance of a new process and are based on as many measurements as possible, 50 at least, and once the stability of the process is shown with a significant subgroups of measurements. The values obtained indicate the preliminary process potential Pp, and the preliminary process capability (Ppk) to differentiate them from ongoing results of process Cp and Cpk although the numerical calculations are the same.

Minimum acceptable values for these preliminary studies will be achieved when the interval of the mean plus/minus five standard deviations will be less than the specified tolerance. This means that a minimum value of capability index of 1.67 has been achieved. This Ppk value must be indicated on the Initial Sample Inspection Report to be approved. By exception Ppk values between 1.33 and 1.67 could be approved when the supplier reports corrective actions to improve this preliminary index.

PRELIMINARY PROCESS CAPABILITY

Feature Type	Cpk < 1.00	Cpk 1.00 < 1.33	Cpk 1.33 < 1.67	Cpk > 1.67
Critical	100 % + corrective actions	100 % + corrective actions	100 % + corrective actions	Acceptable
Significant	100 % + corrective actions	100 % + corrective actions	Acceptable	Acceptable
Others	100 % + corrective actions	Acceptable	Acceptable	Acceptable

2.7

P.P.A.P. & I.M.D.S Submission Requirements

As standard Tenneco refers to the AIAG Production Part Approval process, latest revision to the date of the initial production samples submission. It is mandatory for any supplier to Tenneco to follow the same standard when issuing initial production samples to Tenneco.

2.7.1

Requirements

It is mandatory that suppliers shall inspect and supply initial samples provided from production tooling and set up. In the case of multi cavity tool, results from each cavity are required. Initial sample presentation is required prior to:

First production of a new part.
First production after a engineering change.
First production after a process, tooling or location or manufacturing change.
First production after a production stop for more than 1 year.

Mind that, in case the process/tooling has been modified as part of an action improvement plan resulting from a reported Non-Conformity (as part of an 8D process), the supplier shall verify (and confirm with the quality department of the Tenneco Manufacturing site reporting the Non-Conformity) whether he needs to initiate the P.P.A.P. – process.

2.7.2

P.P.A.P Procedure

2.7.2.1

When samples from production tooling and set up are available, the supplier will conduct full dimensional, laboratory tests and engineering testing as required by the purchase orders and relevant drawings.

According the official European Directive “2000/53/EC” ,every producer of a product, will be responsible for all aspects of the product (operations, use, removal, disposal etc.) for its entire life. Therefore, before any P.P.A.P. will be entered in the approval cycle at Tenneco, the IMDS data must be made available.

2.7.2.2

External suppliers

I.M.D.S. – process

The communication of the IMDS data to Tenneco Europe has to go via the IMDS database on website www.mdsystem.com.
The company ID of Tenneco Europe Emission Control: 751
The company ID of Tenneco Europe Ride Control: 4076
Any substance found in the Tenneco Europe black list on http://www.tasupplier.com/ (Supplier Manual\Europe\8.Appendices) is prohibited for parts supplied to Tenneco Europe. [exceptions only allowed with approval of material engineer (see Black list)]

Failing to comply with the Tenneco I.M.D.S. directive will automatically lead to rejection of the P.P.A.P.

P.P.A.P. - process

P.P.A.P. level 3 is the default level for all external suppliers. The suppliers must complete and send to the nominated Tenneco Manufacturing site, the following documents :

· Completed PSW document must be submitted

· Dimensional Inspection Report to be completed and available for review from at least 5 different components, mentioning each result separately (= per characteristic, a minimum of 5 measurements + the average of these 5 measurements) A Measurement System Analysis (MSA) needs to be conducted and communicated for all measurement systems used (or planned to be used) to obtain variable or attribute data on either significant and/or critical characteristics identified by Tenneco or it’s customer, during the P.P.A.P. validation AND the designed production process (as identified in the control plan). For any guidelines, Tenneco refers to the lastest revision of the AIAG standatrd on Measurement System Analysis.

· Material Certification including chemical and physical tests, must be approved by Tenneco manufacturing and available for review Durability test results if specified to be available for review

· Quality Control Plan to be available for review

· Process Flow Diagram

· Ppk values on characteristics identified on the control plan must be available for review

· Process Run@Rate and OEE Overall Equipment Effectiveness status to be available for review

· Process Run@Rate and OEEC Overall Equipment Effectiveness status.

· IMDS information -> Submitted into a database

· If applicable, the supplier shall have a laboratory scope and documentation showing that any external laboratories used for testing/calibration are qualified to ISO/TS-17025 or the national equivalent.

IF ANY OTHER P.P.A.P. LEVEL IS REQUIRED, THIS WILL BE SPECIFIED ON THE TEN PURCHASE ORDER.

A Run@ Rate study is required where the launch team and/or Global Supply Chain Management determines that any of the following apply:

The supplier part is considered to be a critical part to the Tenneco finished part.

The Tenneco customer requirements mandate that the supplier perform a Run@ Rate.

The supplier is considered a high risk supplier.

The supplier-part combination is considered as a high risk.

The launch team has a compelling reason not list to want a run@ rate performed

All P.P.A.P. approval documentation should be submitted by electronic mail (preferred format is pdf or tif) or by fax to the personal fax number of the TEN nominated recipient, see 2.7.2.3 P.P.A.P – communication requirements.

2.7.2.3

Tenneco P.P.A.P.- communication requirements. To facilitate the Production Part Approval Process (P.P.A.P.), all documents must be supplied either

in an electronic format by email to the PPAP address
or by fax to the fax n°

of the Tenneco Manufacturing Site of final industrialization. In case the component is scheduled at different Tenneco manufacturing sites, the Tenneco Manufacturing Site of highest volume requirements or first usage is responsible for the P.P.A.P. process, unless stated differently by the Global Supply Chain Commodity responsible.

Dedicated Tenneco Manufacturing Site P.P.A.P. e-main addresses / FAX n°:

For Ride Control: TEN Gliwice:      PPAP-TAGLW@taeu.com      +48 322302961 TEN Hodkovice:      PPAP-TAHOD@tenneco.com      +42 0485145110 TEN St Truiden:      PPAP-TASTR@tenneco.com      +32 11703641 TEN Port Elisabeth:      PPAP-TAPLZ@tenneco.com      +27 414017380 TEN Ermua:      ermua.quality.supplier@tenneco.com      +34 943176029 TEN Gijon:      qualidadgijon@tenneco.com       +34 985163536

The documents shall be submitted according to P.P.A.P. level 3 in an electronic format to fulfill the Tenneco Submission Requirements. The preferable format is a PDF or TIF file.

The documents must be sent in one (1) email with the seven (7) separate documents included.
The documents shall be sent according to the following naming conventions:

Document nr. 1 : partnumber_PSW.ext      for example 12345678_PSW.pdf
Document nr. 2 : partnumber_DIM.ext      for example 12345678_DIM.tif
Including the MSA reports      for example 12345678_MSA.pdf
Including lab certificate (if applicable)      for example 12345678_lab.pdf
Document nr. 3 : partnumber_MC.ext      for example 12345678_MC.pdf
Document nr. 4 : partnumber_CP.ext      for example 12345678_CP.tif
Document nr. 5 : partnumber_FLOW.ext      for example 12345678_FLOW.pdf
Document nr. 6 : partnumber_INIT.ext      for example 12345678_INIT.pdf
Document nr. 7 : partnumber_IMDS.ext      for example 12345678_IMDS.pdf

2.7.2.4

P.P.A.P. approval will be granted subject to evaluation (for both internal and external suppliers):

On availability of the I.M.D.S. data
On availability of samples and satisfactory test results the supplier shall notify Tenneco Automotive purchasing department.
A minimum of 50 of tool samples shall be dispatched to the Tenneco nominated manufacturing site, using the Initial Sample Labels provided.
A copy of the approved or rejected PSW document will be sent to the supplier.
In case the P.P.A.P. submission is being rejected, the supplier must re-submit a corrected P.P.A.P.
After P.P.A.P. approval, Tenneco purchasing department shall authorize the supplier to proceed with bulk production, in line with scheduled requirements.

A supplier to Tenneco is entitled to deliver 1 P.P.A.P. – submission free of Tenneco charges. In case the P.P.A.P. was rejected by Tenneco, due to the inability of the supplier to meet the Tenneco P.P.A.P. submission requirements or the Tenneco component requirements, the supplier can be charged with all the costs Tenneco is forced to make in order to complete the homologation cycle of the component.

The supplier will not proceed with bulk production without Tenneco authorisation. Any discrepancies will be immediately notified to the supplier who must take corrective actions and submit further samples.

2.7.3

Prototypes

Prototype parts should be manufactured wherever possible using final production process and stated on relevant paper work.

2.8

Important Parts

These special characteristics, described as Ñ, safety critical etc., will be properly identified on drawings, FMEA's, Control Plans and in all material documents to ensure that everybody has the adequate information for their requirements.

Such supplies require certification of conformance and records relative to their manufacture and supply these must be retained to the local legal or customer requirements.

A training program about their measurement, evaluation and failure effects, must be developed for all employees involved.

2.9

EC Approved Parts

In case EC approval of the supplies is required, this will be in accordance to Tenneco Europe Product Engineering policies, which will be communicated as part of the specifications / requirements. These approvals will be in the name of Tenneco Europe as specified in the specifications / requirements.

2.10

Packaging Planning

Appropriate packaging to protect and preserve the quality of the product is to be considered during feasibility evaluation.

Suppliers must use appropriate packaging, to assure that all products will arrive at Tenneco plants free of any damage and it can be transported, stored and used efficiently.

The packaging system need to be approved by the purchasing department of the Tenneco receiving plant, and specified on the purchase order.

2.11

Training

The supplier must demonstrate a comprehensive training program for all levels of staff.

Training must be applicable to each job function, supported by documented evidence of the standards achieved by each individual.

The Program should be based upon the principles of total quality management and include:

Advanced Quality Planning,
Statistical Process Control,
Team Oriented Problem Solving.

Achievement of Quality

3.1

Quality System at Supplier

T = Technical parts

F = Functional parts

Direct Material

O.E. suppliers

a) Technical parts

Approved by accredited company to a current version of either of the accreditations below is mandatory by 1^st August 2003 :

TS 16949

QS 9000

VDA 6.1

EAQF "A"

Approval by accredited company to :

A current version of TS 16949 is mandatory by July 2004

b) Functional parts

Approval by accredited company to either of the accreditations below is mandatory by end year 2002 :

A current version of ISO 9002 (minimum requirement) or any of the accreditations required for technical parts

Approval by accredited company to :

A current version of ISO 9001 (minimum requirement) or any of the accreditations required for technical parts

c) Indirect materials (product related tools / spare parts / etc. )

Approval by accredited company to a current version of ISO 9002 is mandatory by end year 2003.

Exemption is possible by T.A. agreement

d) Standard parts or material

Approved by accredited company to ISO 9000. Suppliers of materials in this category can also be approved to supply by signing a TAE form committing that all products / material supplied will fully comply with TAE purchase order requirements.

It is strongly recommended that suppliers to TAE achieve ISO 14001 as the basis for an environmentally friendly quality system, but this is not mandatory to be a TAE supplier at this point in time.

e) ISO 14001

It is strongly recommended that suppliers to Tenneco achieve accreditation approval to ISO 14001 as the basis for an environmentally friendly quality system. This is not a mandatory requirement at this point in time.

3.2

Concessions and Deviations

In certain instances nonconforming supplies may be accepted under concession or deviation. This will totally depend on the nature and extent of the nonconformance, and acceptance will be authorized in writing to the supplier.

Under no circumstances must the supplier ship such supplies without written approval and all shipments must refer to the concession / deviation agreement.

Supplier Quality Performance

Supplier Quality Performance will be measured and evaluated as per the Tenneco Europe Supplier Performance Rating Guideline and Tenneco Europe Supplier Quality Rating System.


TAE Supplier PPM Rules
1. TAE plant returns defective batch	complete batch counted in PPM
2. TAE plant sorts defective batch	complete batch counted in PPM
3. Defective batch sorted by supplier at TAE premises by agreed supplier representative within given timeslot	only defective parts counted in PPM
4. Intercompany parts - all parts returned or scrapped - if defective parts are accepted and used	are included in PPM are not included in PPM

4.1.	Supplier Performance Rating


	Supplier Quality Rating System Definition by category All suppliers to TAE will have their products categorized and placed in one of the following grades: · Technically significant / critical parts or material · Functional parts or material · Standard parts or material The product material grade determines the minimum quality system certification or approvals required before a supplier can be placed on the TAE approved supplier list. Definition by category 1. Technically significant / critical parts or material This category is for parts or material which are designated as having direct critical influence on the finished product, safety of performance. 2. Functional parts or material This category is for parts or material which form part of the finished product, and are fit for use, and do not directly affect product performance or safety. 3. Standard parts or material This category is for parts or materials which have no effect on the performance or safety of the product, and have no direct influence on finished product manufacture and final customer assembly. If you are unsure in which category your product falls, please contact your local SCM Manager. Quality system mandatory requirements SEE SECTION 3.1. Supplier quality system rating - exemption procedure It is possible in unavoidable circumstances that a supplier can be approved to supply parts or material to Tenneco plants without a Tenneco quality system rating approval. In order for this to happen a Tenneco supplier quality system waiver form must be completed showing reasons for the request and submitted by the commodity manager for approval by the Tenneco GSCM Executive Director Strategic Supplier Development and Quality. If the request is approved it must be for a stated specific time period.

5. Non Conformancies

All non conformancies that are found at a Tenneco site or at the end customer will be reported for urgent corrective and preventive actions to the supplier. The supplier must submit completed, corrective action report (8D).

Timely reaction to these reports is required. It is expected that the supplier will provide sorting/rework resources within 24 hours of a concern being reported. Exceptions to this will be agreed with local SCM.

Format to be used is to the requirements as set by the relevant Tenneco Europe site.

TAE Supplier PPM rules
THE MANDATORY PPM TARGET FOR SUPPLIERS IS 25 PPM

List of attached documents

6.1. 8D Concern Analysis Report

6.2. Part Submission Warrant Document (PSW) (3 pages)

6.3. Control Plan

6.4. Dimensional Inspection Report (2 pages)

6.5. Initial Sample Tag

6.6. Receiving Inspection Report

6.7. Rejected Good Advice Note

6.8. Standard Material Supplier Commitment Form

6.9. Supplier Development / TVM-Kaizen Visit Report (2 pages)

6.10. Supplier Quality System Waiver Authorization Form

Or equivalent

Local forms

QS Forms

VDA Forms

Etc.

Cpk 1.00 < 1.33

External suppliers

Direct Material

TAE Supplier PPM Rules