Dana strives to clearly define the expectations of its suppliers, provide a process to deliver on these expectations and a method for corrective action where expectations are not achieved.  These expectations define how all Suppliers contribute to increasing the ability of the extended enterprise to continually improve the value we provide to our customers and society.  An understood responsibility of the supply base is to actively contribute to help define these expectations in the effort to eliminate waste and reduce variation in our products and processes.

The Problem Solving Process provides a comprehensive checklist of actions to be considered for each of the steps or phases of developing corrective and preventive actions for a problem.  The process also recommends data collection and analysis tools to be used at each step to assure the process actions are based on facts and root cause is addressed and the solution is proven effective.  In summary the steps are:

1. Identify Concerns

2. Non-Conformance Initiation

3. Notify Supplier of Corrective Action Request

4. Initial Response and Containment

5. Measurement and Analysis to Validate Root Cause(s)

6. Plan and Execute Implementation of Permanent Solution

7. Verify Effectiveness of Permanent Solution and System Changes

8. Develop Roll-Out Plan to Similar Processes and Suppliers

9. Standard Charge back for Non-Conformance

A. Identify Concerns

A concern is defined as an undesirable effect experienced by Dana or its customers.  Concerns can be identified by anyone within Dana Limited.  Concerns can be applied to the quality of production parts, their delivery, packaging, supporting information (such as Production Part Approval Process documents, Corrective Action Requests, Capability Reports, etc.).

The Concern shall include a description of the suspected non-conformance, its type (product, delivery or information), its effect and its relative severity to Dana or its customers.  The help documentation on the Concern Record provide additional details on the form.  Completed Concern Records are sent to the Plant Supplier Quality activity or Purchasing / Supplier Development.
 

B. Non-Conformance Determination

The Concern Records are reviewed by the appropriate discipline and organizational level dependant on the effect and severity of the concern.  The purpose of this review is to determine if the concern is a result of a non-conformance with stated requirements, standards, or specifications.

Where a concern is determined to be a non-conformance, a Corrective Action Request (CAR,SCAR, DMR, NCMR) will be generated.  The Plant Supplier Quality will initiate Correction Action Requests for non-conformities that are within the scope of their respective facility.  The Supplier Development or the Buyer will initiate Corrective Action Requests for non-conformities that are beyond the scope of a single Dana facility.

C. Notify Supplier of Corrective Action Request

Your organization’s identified Customer Representative will be notified of the CAR.  If your organization has not identified its Customer Representative, the highest ranking official on file will become the default Customer Representative of your organization.  This notification includes additional requirements for containment, material identification and response timing.  Should an OEM format for containment results be required, the initiator of the Corrective Action Request is responsible to provide the appropriate documents to your organization.
 

D. Initial Response and Containment Implementation

Your organization is responsible for providing the resources to implement effective containment of the non-conformity.   Evidence of containment requires documentation of the results of containment actions and shall be included in the Corrective Action Report.

It is the responsibility of your organization to update the Corrective Action Request and provide an initial response within 24 hours of notification. 

Containment results shall include the results from the your organization’s current production controls, dock-audits, and containment actions.   Your organization is responsible for completing the containment results section of the Corrective Action Report or attaching the appropriate OEM format for containment results to the Corrective Action Report.

Where Restricted Shipping is required, Supplier Development will initiate the Restricted Shipping process.

E. Measurement and Analysis to Validate Root Cause(s) and Select Solutions

It is your organization’s responsibility to confirm the root cause(s) of the problem, identify and select effective solutions to eliminate the true root cause(s).  There are many potential tools to assist your organization with this including (but not limited to); brainstorming, capability (quality) index, control chart, decision matrix, design error-proofing / process mistake-proofing, design of experiments, histogram, hypothesis testing, linear regression analysis, run and trend charts, and the design and process failure mode effects analysis. 

Although Dana does not prescribe a specific root cause analysis method, your organization shall demonstrate root cause validation on the Corrective Action Report.  Supplier Development is responsible to review the submitted root cause validation.  Where the measurement and analysis plan does not clearly validate the potential root cause(s), Supplier Development may reject the Corrective Action Report. 

Where the root cause(s) have been effectively validated, your organization is responsible for proposing a plan to implement permanent solutions and verify their effectiveness.  Supplier Development is responsible for communicating the proposed plan to internal Dana functions (such as Quality, Engineering and Sales, as appropriate) to approve the initiation of the proposed changes.  Where proposed changes impact the design of the product, an Engineering Change Request shall be generated, referencing the Corrective Action Request.

If the proposed plan is rejected, your organization is responsible for providing alternative plans to provide conforming material. 

F.  Execute Plan for Permanent Corrective Action

Once approved, your organization is responsible for implementing the proposal.  The Corrective Action shall be updated by your organization to indicate progress.  Supplier Development shall monitor the progress based on milestones on the planned activities.

Where assistance is required to achieve the plan, the plan cannot be implemented as defined or will not solve the original problem, your organization shall notify Supplier Development before due dates are compromised.

G. Verify Effectiveness of Permanent Solution and System Changes

Your organization is responsible for providing evidence of the effectiveness of the permanent solutions to prevent or control the root cause(s) of the non-conformity.  This evidence shall be included in the Corrective Action Report.  Where the evidence provided does not clearly indicate the problem has been solved, your organization shall be notified to include additional or more comprehensive evidence. 

Your organization shall include the updates to their Failure Mode and Effects Analysis as part of the evidence in the Corrective Action Report.

If concerns persist after permanent corrective actions have been implemented, your organization will be issued another Corrective Action Request for repeat failure modes.  These types of corrective actions are elevated for regional and corporate attention and place your organization on Restricted Shipping II Status.  'Suppliers with ineffective problem solving processes will be subject to applicable Dana Supplier Development processes and controls as required to ensure the quality of products in compliance with all other contract requirements.'

H.  System Wide Deployment

Your organization is responsible for identifying areas in their organization that may share similar process characteristics (failure modes) that may benefit from the permanent corrective actions applied in response to a known non-conformity.

I. Standard Charge-back for Non-Conformance

The following charge back amounts will be applied when reconciling costs of a Supplier Corrective Action.  Your organization is responsible for the inspection and containment activities associated with non-conformances or poor performance.   These costs should not be deemed to be exclusive.  Your organization shall be responsible for any other costs attributable to a corrective action, whether or not set forth below.