KMMG Supplier Q

KMMG Classification:
KMMG Supplier Quality Manual Confidential
KR-GA-PD-SQD-S-0001
Revision Date: 04/13/2020 Owner: Supplier Quality Development Revision Level: 11.0
PURPOSE
1.0 PURPOSE
The purpose of this section is to define the overall purpose of the KMMG Supplier
Quality Manual (KSQM).
2.0 RESPONSIBILITY AND AUTHORITY

SQD Manager has the responsibility and authority for this procedure.
3.0 PROCEDURE
3.1 The purpose of KSQM is to provide a consistent approach to communicate
procedures and guidelines. In addition, the KSQM ensures all KMMG suppliers of
products and services meet the required specifications and agreements for quality.
3.2 The KSQM serves as a guideline to establish an effective partnership with all
suppliers and to create a path for open two-way communications and mutual
success.
3.3 KMMG is committed to developing and maintaining positive working relationships
with all supplier partners, through a cooperative mindset, proactive actions, and self
responsibility.
KR-GA-PD-SQD-S-0001
SCOPE
1.0 PURPOSE
The purpose of this section is to define the overall scope of the KMMG Supplier Quality
Manual.

3.0 PROCEDURE
3.1 The scope of this document includes all suppliers of all parts, products, modules, and
sub-assemblies supplied to KMMG (does not include General Purchasing suppliers,
MIP suppliers or Global Sourced suppliers). All defined suppliers shall embrace a
process-based Quality Management System (QMS).
3.2 Suppliers shall ensure confidentiality of KMMG specific products and projects under
development and related product information. No information shall be
communicated to any external parties without the written approval of KMMG.
3.3 For all documents/records and all internal audits (systems, product and process) of
processes related to KMMG products, the supplier shall use the IATF 16949
specification as minimum system requirements.
Printed Copy for Reference Only

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DEFINITIONS
1.0 PURPOSE
The purpose of this section is to define all abbreviations used in KSQM.

DEFINITIONS
Abbreviations Term Definition
AMP Panel Report AMP Panel Report KMMG’s problem reporting format
A philosophy of managing the workspace

5S Sift, Sort, Sweep, Sanitize, Sustain and work flow with the intent to improve
efficiency. See www.lean.org
AIAG Automotive Industry Action Group An automotive industry group
A framework of procedures and

APQP Advanced Product Quality Planning techniques used to develop products. See
www.aiag.org
A management process whereby customer
CI Continuous Improvement valued processes are constantly evaluated
and improved
CKD Complete Knock Down Imported parts
A device for measuring the physical

CMM Coordinate Measurement Machine geometrical characteristics of an object
DDTZ Drive Defects to Zero Kia’s Quality Slogan
A document that recognizes and evaluates

DFMEA Design Failure Mode Effect Analysis the potential failure of a design and its
effects
A verification method to ensure the part
DV Testing Design Validation Testing meets the design intent
EO Engineering Order The design or drawing level of a part
FG Finished Goods A part that is ready to ship to the customer

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An inventory method to ensure product
FIFO First In First out gets used in the correct order
FMVSS Federal Motor Vehicle Safety Standards Government regulation requirements
A method a approving a new part for each

FP First Piece shift
A concept to insure stabile measurements
GR&R Gage Repeatability and Reproducibility where a single person gets the exact same
results each time
ISIR Initial Supplier Inspection Report A approval of a part or a change
International Organization for An international organization. See

ISO www.iso.org
Standardization
IT Information Technology Computer hardware and software
An inventory strategy designed to reduce

JIT Just-In Time inventory
KMA Kia Motors America Design and sales in North America
KMC Kia Motors Corporation World wide organization
KMMG Kia Motors Manufacturing Georgia, Inc. Kia’s plant in West Point GA
A collection of quality procedures for Kia

KSQM KMMG Supplier Quality Manual suppliers
The phase or production after New Model

MP Mass Production Launch
A check sheet issued by KMMG to asses a

MPR Minimum Process Requirements process
An evaluation of the test method,
measuring instruments, and the entire
MSA Measurement System Analysis process of obtaining measurements to
ensure the integrity of data
A part considered not acceptable to be
NG Un-Acceptable Part placed onto a vehicle assembly
A part considered acceptable to be placed

OK Acceptable Part onto a vehicle assembly
A document that recognizes and evaluates
PFMEA Process Failure Mode Effect Analysis the potential failure of a process and its
effects
An issue that occurred in the past that
PPH Past Problem History must be corrected for future models

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PPM Parts Per Million A metric used to quantify rejected parts
Testing completed to show adherence to a

PV Testing Part Validation Testing specification.
A set of policies, processes and
procedures required for planning and
QMS Quality Management System execution (production / development /
service) of the core business area of an
organization
A number issued to each vehicle by
SEQ Sequence Number KMMG
A method of controlling a process with

SPC Statistical Process Control control charts
A division of the KMMG Quality

SQ Supplier Quality Control Department
The primary section responsible for this

SQD Supplier Quality Development system at KMMG.
The primarily window person at KMMG for

SQS Supplier Quality Specialist supplier quality issues
A unique number issued by KMMG to

VIN Vehicle Identification Number each vehicle
A term refereeing to the inventories

WIP Work in Process between processes.
A strategy utilized by the supplier to

ZDS Zero Defect Strategy ensure Zero Defects to the KMMG

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BASIC REQUIREMENTS
1.0 PURPOSE
The purpose for this section is to define the basic requirements for the supplier Quality
Management System.

3.0 PROCEDURE
3.1 The supplier‘s Top Management shall ensure the supplier’s Quality Management
System supports KMMG’s quality expectations. This shall be carried out through all
phases of production.
3.2 The Quality System shall be documented and reviewed on a regular basis by the
supplier’s Top Management (minimum once per 3 months).
3.3 The supplier’s Top Management shall establish metrics and goals for all processes
defined within the QMS and all elements of the KMMG supplier scorecard for the
purpose of tracking and monitoring process performance.
3.4 All correspondence submitted to KMMG related to requirements of the KSQM must
be in English. Document translation is the responsibility of the supplier.
3.5 A permanent senior management level position at the plant location will be
designated for overall quality assurance. This customer management
representative will be responsible to ensure fulfillment of the KSQM within the
supplier facility.
3.6 The Parts Development Agreement is the governing document that will be the final
judgement of supplier responsiblity.

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BASIC REQUIREMENTS
3.7 KMMG reserves the right to audit the suppliers’ facility and sub suppliers’ facilities at
KMMG discretion (per the Parts Develpment Agreement).
3.8 The supplier shall complete any corrective action requests as directed by KMMG.
This includes but not limited to timely completion of the AMP Panel Report.
4.0 ATTACHMENT
4.1 Basic Requirements Matrix
Minimum Requirements for Tier 1 Standard KMMG (Lead Role in Bold)

Understand all KMMG requirements for all
KSQM SQ, Procurement, Logistics
quality functions and processes.
Supplier shall provide a current organizational
chart for both mass production and the project Supplier Document SQ, Procurement, Logistics
phase upon request
Have a documented training program for all new
and temporary team members to include evidence IATF 16949 SQ, Procurement
of competence.
Supplier shall achieve accreditation to IATF
IATF 16949 Procurement,SQ
16949 registered Quality Management System
Maintain a documented preventative maintenance
program for all machine and tools used for KMMG IATF 16949, KSQM SQ
parts/product.
The supplier shall have a Continuous
Improvement Program, which is documented and KSQM, IATF 16949 SQ, Procurement, Logistics
tracked (performance to target).
Notify KMMG of any Union activity for initial voting Formal
and contract renewal and should include any sub- communication TR, Procurement
suppliers. required
Maintain lot traceability and control for all product IATF 16949, FMVSS,
SQ, Procurement
produced for KMMG. KSQM
Manage nonconforming or suspect part quality. IATF 16949, KSQM SQ
The supplier shall maintain all records for KMMG KMMG policies,
SQ, Procurement
products. FMVSS
Supplier shall have a documented escalation Clearly defined levels
procedure for internal and external quality within the hierarchy of SQ, Procurement
concerns. the supplier.

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Minimum Requirements for Tier 1 Standard KMMG (Lead Role in Bold)

Supplier shall provide test results according to test
KSQM, IATF 16949,
specifications as identified by Kia/Hyundai Motor SQ, Procurement
ISO17025
Group.
The supplier shall pay for production shutdown if Rate as established SQ, Procurement,
due to Supplier’s process or product. by Purchasing Logistics
Develop plan to ensure smooth launch of any New KQSM, APQP

Procurement, SQ
Model as applied to KMMG Manual

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APQP
1.0 PURPOSE
The purpose of this section is to define the requirements and guidelines for all New
Model Development activities for supplied product to KMMG. This includes all
Major/Minor Model changes and awards of new business.

SQD Manager has responsibility and authority for this procedure.
3.0 PROCEDURE
3.1 The supplier shall establish a master start up schedule. The master schedule must
match the KMMG Project Planning Image and program-specific Vehicle
Development Plan. The Vehicle Development Plan shall be approved by KMMG
Procurement Management.
3.2 Detailed check items for each project phase are defined in the AIAG APQP manual.
3.3 The supplier shall establish a cross functional team with a defined organization chart
and roles/responsibilities for New Model project management.
3.4 The supplier’s Top Management shall monitor and track the New Model process at
defined intervals. These evaluations shall be completed prior to each trial
event/shipment (example: P1, LP2, etc.). The inputs into these reviews shall include
but not be limited to: results from internal audits (control plan accuracy, part
measurements, etc.), customer feedback, sub-supplier status, design changes,
process capability, and status of items noted by KMMG.

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APQP
3.5 The supplier shall ship parts to the Engineering Order (EO) ordered by KMMG or
authorized by KMMG Procurement Management.
3.6 The supplier shall establish a time line for new equipment, tooling and facilities. The
timing of these items be approved by KMMG Procurement Management.
3.7 The supplier shall assess the feasibility of the New Model products, parts or services.
Customer design responsibility does not exclude the supplier from reviewing
feasibility. The supplier’s approval must be documented and approved by supplier’s
Top Management. Any issues that could impact a successful launch shall be
communicated to KMMG.
3.8 The supplier shall establish packaging plans for internal and external packaging. All
KMMG packaging must be approved by KMMG Materials Management group (refer
to KMMG Production Control Guidelines for requirements and timing).
3.9 The supplier shall review the production location’s Quality Manual for any additional
controls, system updates or changes related to the KMMG New Model project. The
supplier shall establish a measurement system analysis plan. This shall include
gage linearity, accuracy, repeatability, reproducibility, and correlation (duplicate
gages). Refer to the AIAG MSA manual for specific requirements. The supplier shall
include gage verification as part of the engineering level change verification process.
3.10 The critical quality aspects for each part shall be defined during the New Model
process (as defined on the engineering drawing/specifications, as documented on
the ISIR agreement, and KMC Advanced Quality Division). The critical quality
aspects for each part shall be referred to on all relevant quality documentation
(Control plans, work instructions, FMEA, etc). Data may be requested by KMMG at
any point during the product life cycle. The supplier shall document process and part
capability.
3.11 Process settings (example: Cycle time, Temperature, Air pressure, etc.) are to be
determined by the supplier. Process settings are to be verified at a minimum of once
per Lot Number.

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APQP
3.12 Critical process settings capability may be required on some parts or products as
determined by the ISIR documents or Drawing Specification.
3.13 The supplier shall verify once per Lot Number all error proofing devices. All devices
shall be verified in the Positive and Negative conditions. Such devices shall be
identified with a unique number and calibrated on a periodic basis by qualified
personnel. Control plan should include all error proofing devices and activities.
3.14 The supplier shall ensure these requirements are met during the New Model
process:
• Determine the necessary competence for personnel performing work
affecting product quality. This includes quality and production requirements.
• Provide training or take actions to satisfy these needs.
• Evaluate the effectiveness of actions taken. All evaluations of effectiveness
shall have 100% accuracy on critical control points and skills (see Training
Progression Chart) to progress to the next level.
• Ensure all personnel are aware of the relevance and importance of their
activities and how they contribute to KMMG customer satisfaction.
3.15 The skill level of the employees must be tracked according to the Training
Progression Chart. The supplier may use a different training scale; however the
ratings must be equivalent. The supplier shall ensure 95% of required staff (Direct
Labor) for a New Model shall be certified to a Level 2 working standard prior to the
supplier’s shipment of product for customer sellable vehicles.
3.16 The supplier shall establish process work instructions. These work instructions shall
be based on: FMEAs, Control Plans, engineering drawings/specifications, process
flow charts and other quality related documents. These work instructions shall
include machine settings and part specifications. Work instructions shall be
accessible at the work station. Training requirements shall be defined for each Work
Instruction.

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APQP
3.17 The supplier shall establish DFMEA, PFMEA and a Control Plan (Prototype, Pre-
Launch and Mass Production) during the design development phase. These
documents shall be in the KMMG approved formats (see portal for PSO documents).
The usage of any other format must be approved by the KMMG. DFMEA
requirements only apply to suppliers who are design responsible.
3.18 For appearance parts, the supplier shall submit an Appearance Approval Request to
document visual approval of master samples. The criteria for appearance defects
(example: appearance zone, size of defects and type of defect) shall be included in
the Inspection Standard.
3.19 The supplier shall establish a Safe Launch Plan. The Safe Launch Plan shall include
additional checks to the Mass Production Control Plan. The plan shall be in place for
a minimum of 90 days of production volumes after start of production at KMMG
Location. The exit critera is Zero Defects, approval of senior managment at the
supplier and notification to KMMG Supplier QC. Requirements of the plan include but
not limited to:
• Increased frequency/sample size of receiving process and/or shipping
inspections.
• Mandated sub-supplier containment and or sub-supplier support/audits
• Addition of inspection/control items
• Increased verification of label accuracy
• Enhancement of process controls such as error proofing
• Error proofing validation through introduction of known quality sample parts
(OK & NG Masters)
• Additional activities as directed by KMMG
3.20 The supplier shall conduct and document a periodic inspection of the part and the
process that ensures part quality.
• Part Classification -- “Safety (Regulatory)”, “Critical”, “General” as defined
on the drawing and BOM
• Inspection items shall be the defined on the ISIR Inspection Agreement.

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APQP
Classification Safety (Regulatory) Critical Part General Part
Inspection Frequency Every 6 Months Every 6 Months Every 12 Months
6.0 ATTACHMENT
6.1 KMMG Project Planning Image
Kia Motors Manufacturing Georgia

Project Planning Image
Planning
Product Design and Development
Process Design and Development
Product and Process Validation
Production
Feedback, Assesment, and Corrective Action
Training Progression Chart

Contents
• Ability of quality improvement
1
• Guiding activity & multi-working ability
• Attainment of work completion & proficiency
2 • Work independant Level (no trainer)
Level
• Work within cycle time (single-handed process)

• Master quality standards
3 • Master work / proficiency
• Work within 3 times as cycle time
• Understanding of work & quality standards
4 • Training of vehicle disassembling & assembling
• Refer to method of assembling & practice

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LOT CONTROL AND TRACEABILITY
1.0 PURPOSE
Lot control and Traceability is an important element in any overall Quality System. The
data and information retained by the Lot Control and Traceability system ensures timely
identification of suspect ranges, accurate suspect ranges and detailed information for
problem solving. Additional traceability requirements may be added to satisfy safety,
regulatory, legal and other requirements.

3.0 PROCEDURE
3.1 A “lot” is a group of parts/material produced under the same circumstances during a
finite period of time. Each “lot” shall be identified with a unique number. The total
parts per lot shall not exceed one production shift of total production by part/material
number. This shall be the basic group of parts that has traceablity.
3.2 A new lot shall be defined as:
• A new production shift begins.
• A line, machine, or area ends production of one part number and begins
production on another part number.
3.3 The supplier shall establish records of the raw material and components of each lot
number throughout the entire life cycle of the product.

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LOT CONTROL AND TRACEABILITY

3.4 The supplier must adhere to all part labeling requirements stated on the part
drawing, part specification or applicable regulations. Label requirements for KMMG
labels shall be defined in the KMMG Production Control Guidelines.
3.5 The supplier shall maintain all inventory using FIFO methods. This applies to all
supplier product (in process and completed parts). The requirements for FIFO shall
apply to all products removed from normal process flow (i.e., rework or repair).
3.6 The supplier shall establish a procedure for start up confirmation at the start of each
defined lot number. The responsibility for approval shall be included into such
procedure. Each start up sample shall be maintained at a minimum until the next lot
is approved or as designated by KMMG SQC.
3.7 The supplier shall maintain traceability records for all products removed from normal
production flow (i.e., rework or repair).
4.0 ATTACHMENT
NA

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GAUGE REQUIREMENTS
1.0 PURPOSE
The purpose of this section is to define the requirements and guidelines for gauges used
to accept and reject KMMG parts and sub assemblies.

SQD Manager has responsibility and authority for this
procedure.
3.0 PROCEDURE
3.1 The supplier shall submit gauge documentation upon request to KMMG. This
documentation shall include, but not be limited to:
• Datum scheme shall be defined on the drawing
• SPC points shall be defined on the gauge drawing
• A detailed checking plan attached to the gauge drawing
• Approved gauge drawing by HKMC/KMMG
3.2 The supplier shall maintain an annual calibration for each gauge.
3.3 The supplier shall refer to the AIAG MSA manual for minimum GR&R requirements.
3.4 The supplier shall ensure the clamping on the gauge does not distort the parts when
in the fixture.
3.5 Refer to the KMMG Gauge Reference Standard (see appendix) for additional details.
3.6 The supplier shall calibrate all gages, scales, devices used to show compliance for
all items noted on the control plan. This shall also include any scales or devices used
to validate assembly completeness or tote packing quantities.
4.0 ATTACHMENT
None

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NON-CONFORMING MATERIAL
1.0 PURPOSE
The purpose of this section is to outline the correct process for handling any parts,
components, or modules that do not meet KMMG drawing requirements, specifications,
or design intent.

SQD Manager has responsibility and authority for this
Procedure.
3.0 PROCEDURE
3.1 If non-conforming product shipped or may have shipped to KMMG, the supplier shall
immediately notify KMMG SQC with both verbally and written communication
describing:
• Description of the non-conformance
• Quantity involved
• Identification of 1st OK Lot
• Applicable shipping/lot information
• Clean point time line
3.2 KMMG Supplier Quality department shall determine the level of corrective action for
each occurrence of the supplier notifying KMMG of shipment of non-conforming
material (this may include issue AMP Panel Report, PPM for rejected parts, etc).

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3.3 The supplier shall be notified of all non-conforming product discovered at KMMG.
The supplier shall complete a AMP Panel Report. All non-conforming parts
confirmed by the KMMG Supplier Quality department may be counted towards
supplier’s rating.
3.4 KMMG shall issue approval of a part or process changes with an Management
Deviation or Product Deviation Request. These documents are the only official
approval of changes outside the ISIR approval.
3.5 Upon issue of a corrective action request, the supplier shall contain all non-
conforming product. This includes, but is not limited to the following product
locations:
• Completed vehicles – KMMG finished vehicle storage
• Partially complete vehicles – on production line
• KMMG line side/warehouse inventory
• In transit to, at, and in-between KMMG and the supplier’s location
• Supplier’s warehouse/production facility
3.6 KMMG reserves the right to contract an external company to administer the entire
containment process for any non-conforming product that is found within the KMMG
facility. This includes “yard campaigns,” in-house sorting / verification and customer
directed containment at any of the supplier’s locations.
3.7 The supplier shall take actions to initiate on-line containment and establish a clean
point immediately upon notification. This must be submitted in writing to the KMMG
Supplier Quality department within 24 hours of notification.
3.8 A supplier representative must be designated and available at all times during the
rework process for supervision and contact purposes. This includes day shift, night
shift, or during the time period between shifts.
3.9 KMMG has the sole authority to start and stop any sorting activities at all locations.
3.10 The supplier must identify each container of sorted or reworked temporary
countermeasure parts. The identification method must be approved by KMMG
Supplier QC.

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3.11 If a loss of containment occurs (at supplier or KMMG), the supplier must immediately
notify the KMMG Supplier Quality department. In this event, the Supplier is expected
to reinitiate the containment process and provide a new clean point to the Supplier
Quality Department.
3.12 The supplier is required to contact the responsible KMMG SQC when any rework is
required on a part or sub-assembly. All costs associated including labor, rework
tools, and any damage incurred to KMMG property with rework shall be the
supplier’s liability. KMMG requires the supplier to have a documented rework
procedure in their Quality Management System. The supplier shall take all
measures to minimize rework at KMMG (this may include stock swap and verifying
shipments at the suppliers location).
3.13 All rework work instructions shall be approved by KMMG SQ. This approval must be
for all rework completed anywhere within the supply chain (KMMG, Tier 1, all sub-
suppliers etc.).
3.14 Supplier shall ensure that any Supplier Team Member, Supplier Representative, or
Containment Company is trained in the defined rework process. This training shall
be documented and available for the KMMG SQC to review during the rework
activity.
3.15 When deemed necessary by KMMG SQC, testing shall be completed to ensure
rework will not adversely affect the performance requirements as specified in the part
or subassembly technical specification. For any testing that is required, the Supplier
shall assume all costs associated with the testing.
3.16 KMMG Rework Instructions approval does not negate the Supplier from warranty
liability. Any warranty issue found due to rework shall be the Suppliers’ liability.

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3.17 Rework product shall be identified by the Supplier on each part or sub-assembly. In
certain cases where the identification mark may create a problem, the shipping
container will be required to have identification for the rework activity. The
identification mark must be approved by the KMMG SQC prior to reworked product
being delivered to KMMG.
3.18 Rework product shall be tracked and documented by the Supplier. At minimum the
rework records should track quantity, OK/NG %, production date(s), shipment
date(s), and which team member performed the rework. The supplier shall
communicate these results to KMMG on a daily basis or upon request. Records
shall be maintained by the supplier according to the record identification and
retention requirements.
3.19 Supplier shall not stop any rework activity once initiated before prior contact and
approval by KMMG SQC. Supplier should submit a contingency plan and risk
assessment for the rework activity to provide an understanding of the severity,
potential impact to KMMG production and implementation of a long term
countermeasure.
3.20 KMMG has the discretion to initiate any rework activity to ensure no disruption will
occur to the production line. KMMG SQC will notify the supplier within a maximum of
1 business day of such activities.
3.21 KMMG reserves the right to disposition the final number of non-conforming parts
during containment sorts and rework campaigns for PPM (count toward rejected
parts) and/or Supplier Evaluation purposes.
3.22 KMMG reserves the right to scrap any and all non-conforming and suspect product.

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3.23 Suppliers shall be financially liable for any disruptions and expenses to KMMG
operations caused by non-conforming material as governend by the Parts
Development Agreement.
Examples of items charged for include, but are not limited to:
• Rework and Inspection charge backs
• Materials / Labor / Investigation
• Down time charge backs
• Charge backs for non-sellable vehicles, modules, or components due to a
supplier’s non-conforming part.
• Shipping fees for replacement parts
• Internal transportation costs at KMMG

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CHANGE CONTROL
1.0 PURPOSE
The purpose of this document is to ensure that no quality or production issues occur due
to changed product. The supplier must receive approval from the responsible KMMG
Specialist based on the requirements below. The supplier’s quality department is
responsible for understanding the contents of any change and ensuring the change has
no negative effect on the overall product or vehicle quality. If there is a shipment critical
change, contact KMMG SQC.

3.0 PROCEDURE
3.1 The supplier shall obtain KMMG approval prior to any change of product or process.
3.2 The supplier shall submit a 4M Change request to KMMG Procurement for approval
of the change and implementation plan PRIOR TO BEGINNING of the change.
3.3 The method of submission is defined by KMMG Procurement. Suppliers must
submit required documentation electronically by E-ISIR system (VAATZ). KMMG
may request additional items for approval.
3.4 The supplier shall submit an E-ISIR to KMMG Procurement Management.
Procurement Management will submit to KMMG SQ for approval of the change.
3.5 The supplier shall allow at minimum 14 days for review and approval of any E-ISIR.
3.6 Global approvals (HKMC, Hyundai, etc.) are not valid at KMMG without approval
documents from KMMG Procurment and Quality.
3.7 All part testing shall be done by certificated lab (ISO 17025 or HKMC Approval) for
ISIR. The testing requirements shall be within the scope of the labatory.

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CHANGE CONTROL
4.0 ATTACHMENT
4.1 Change Control Matrix
No Change Type Definition and Examples
An engineering order from HKMC design group to change a part or

1 EO Change
update specification. This includes changes to fit, function or form.
New parts submitted to KMMG for support of New Model

2 New Part development. This includes MY changes, new vehicles and major
model changes.
All other changes from the supplier that could impact KMMG.
Examples:
Material – New/change in sub-supplier, raw material spec/grade, sub-
supplier location change, Supplier locaiton change.
Method – Change of manufacturing method from Control Plan
(including inspection methods).
3 4M Change Machine – New (main line or sub-assy) machine, location move within
existing plant.
Manpower – Change in ceritifcaiton requirements for operation,
changes in training level of steps on control plan, organization change
of managment respondsiblity.
If suppliers have any questions about 4M requirements, contact the

Procurement Representative.

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TIER SUPPLIERS (SUB-SUPPLIER CONTROL)
1.0 PURPOSE
The purpose of this section is to define the controls required and responsibilities of the
Tier 1 supplier to KMMG for overall management of all sub-suppliers.

3.0 PROCEDURE
3.1 Each sub-supplier to a Tier 1 supplier to KMMG is defined as one of the
classifications below:
• Self Procured Source – The Tier 1 has authority to source and purchase
components/materials from any sub-supplier. The Tier 1 supplier has total
responsibility for assuring quality for Tier 2 and below.
• Customer Directed Source – KMMG specifies the sub-supplier for the given
component or material. KMMG Procurement negotiates costing information.
The Tier 1 shall purchase components / materials from customer directed
source(s). The Tier 1 supplier shall lead the responsibility for assuring quality
for Tier 2 and below with KMMG support.
3.2 The supplier shall define roles and responsibilities for sub-supplier quality
management within the organization and QMS.
3.3 The supplier shall issue a Supplier Quality Manual to all sub-suppliers within the
QMS. This manual shall ensure all KMMG requirements relevant to the sub-
suppliers are included.

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TIER SUPPLIERS (SUB-SUPPLIER CONTROL)
3.4 The supplier shall create a performance measurement system to track sub-supplier
performance. This system shall include: monthly reporting to sub-suppliers,
targets/goals and action plans from sub-suppliers who do not meet defined criteria.
3.5 The supplier shall create a system of receiving inspection based on: sampling plans,
sampling audits, past problem history, and critical nature of the component or
material. All inspection methods shall match between the Tier 1 and sub-suppliers.
3.6 The supplier shall create a system of corrective action management for the defined
sub-suppliers. This system shall include reporting methods, status tracking, reply
approval and evidence of effectiveness.
3.7 The supplier shall perform audits by qualified personnel on the sub-supplier on a
defined schedule. The audits shall include review of sub-supplier’s production
process and quality system against predetermined criteria. The frequency of audits
shall be based on critical nature of the product/material and sub-supplier’s
performance. KMMG reserves the right to review and/or participate in any such
audit.
3.8 The supplier shall establish a contingency plan for sub-supplier disruptions, including
but not limited to: natural disasters, labor disruptions, fire, building loss and financial
issues. The supplier shall establish a monitoring system for all sub-suppliers for risk
to impacting production.
3.9 Any critical aspect defined by KMMG that is manufactured/controlled by a sub-
supplier shall be included as a critical aspect in sub-suppliers QMS. In addition, the
Tier 1 supplier shall have a detection system in place to control and ensure the Final
product is judged to be acceptable.

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KR-GA-PD-SQD-S-0001
CONTINGENCY PLAN
1.0 PURPOSE
The purpose of this section is to ensure no product flow disruptions to KMMG. The
opportunity of disaster always exists. The most effective way to mitigate such issues is
to have a defined plan of action.

3.0 PROCEDURE
3.1 The supplier shall establish a documented Contingency plan to ensure no product
flow disruptions occur to KMMG. The plan shall include roles and responsibilities,
contact information and timing of customer notification. The plan shall be reviewed
on an annual basis by supplier’s Top Management. The plan should include a risk
assessment of all aspects within the Tier 1 supply chain. The plan shall include but
not limited to:
• Labor disputes / shortages / Financial issues
• Utility disruptions (power, gas, water, telephone and IT systems)
• Natural disasters (including Fires)
• Catastrophic damage to tooling or key equipment
• Tier 2 and below supplier issues
4.0 ATTACHMENT NA

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KR-GA-PD-SQD-S-0001
CONTINUOUS IMPROVEMENT
1.0 PURPOSE
The purpose of this section is to clarify the requirements of suppliers for Continuous
Improvement. These requirements are based on a process based quality management
system. These improvement activities will allow a competitive advantage to be built and
maintained among the KMMG supply base.

3.0 PROCEDURE
3.1 The supplier’s Top Management shall define and monitor a Continuous Improvement
system. This system must achieve a zero defect target for product shipped to
KMMG.
3.2 Improvement actions should utilize the quality targets, internal audit results, analysis
of data from various feedback loops and corrective actions. The improvement
activities should be based on Manufacturing Best Practices and Lean Manufacturing
principals.
3.3 The Continuous Improvement process should be modeled after “Plan-Do-Check-Act”
cycle (See attachment section 4.1).

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KR-GA-PD-SQD-S-0001
CONTINUOUS IMPROVEMENT
3.4 Data collected during the production process shall be analyzed and used for
improvement activities. Data collected during the shift shall have a defined process
for improvement to ensure timely actions to quality issues. Such activities should be
for both short and long term goals and include production auditing systems by top
management (example: Layered process audits).
4.0 ATTACHMENT
4.1 KMMG CI Process
(ACT) (PLAN)
Product Management
Realization Responsibility
Output
Input
KMMG KMMG
0 Defects Requirements
(CHECK) (DO)
Measure, Data, Allocate
Analysis Resources

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KR-GA-PD-SQD-S-0001
KMMG SUPPLIER SCORECARD
1.0 PURPOSE
The purpose of this section is to define the system by which KMMG will monitor and
track supplier performance compared to the supply base to KMMG. The expectation is
the KMMG suppliers shall ship defect free product and services.

3.0 PROCEDURE
3.1 KMMG rates the supplier based on the Supplier Rating Matrix (see 4.1)
3.2 The supplier shall take, create and maintain an improvement plan to improve the
overall supplier performance. The supplier shall submit the plan to the KMMG
responsible department until the supplier’s score reaches an acceptable level as
determined by KMMG.
3.3 KMMG may use the supplier’s performance to determine new business, reduction of
current business or loss of business.
3.4 The supplier score card status is available on the KMMG SAP Portal.
3.5 The SQD Group will review the overall performance of the supplier.
3.5.1 Each month, SQD group will review supplier actions.
3.5.2 Ensure actions are submitted.
3.5.3 Monitor trend data for the lowest scoring suppliers.

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KR-GA-PD-SQD-S-0001
KMMG SUPPLIER RATING

4.0 ATTACHMENT
4.1 KMMG Supplier Rating Matrix
Goal
Weight
# Item Remark
(points)
Green Yellow Red
1 PPM 25% 0-15 NA 16 + Quality Issues
2 FTTQ 25% Less than NA Greater Than Quality Issues

1/Day 1/Day
3 DPPM 25% Less than NA Greater Than Delivery Issues

3/Month 3/Month
4 Responsiveness 25% 85% or NA Less Than Reply to PPR

Greater 85%
100 75 50 or under
5 Total Supplier Score --- (0,1,2 Green)
(4 green) (3 Green)
Quality and Delivery Downtime are tracked; however they are reference performance indicators.
* Individual Suppliers maybe assigned Supplier Specific Goals (KMMG Supplier Data Center).

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KR-GA-PD-SQD-S-0001
CORRECTIVE/PREVENTIVE ACTION
1.0 PURPOSE
The purpose of this section is to define the minimum requirements for a suppliers
internal corrective and preventive action system.

3.0 PROCEDURE
3.1 The supplier shall establish a system to review issues occurring after shipment of
product to KMMG. This includes any field investigations.
3.2 The supplier shall determine the root cause of each issue using a standardized
problem solving method as determined by the supplier. The supplier shall report to
KMMG via Kia AMP Panel Report.
3.3 The supplier shall assign each Corrective/Preventive action a unique number. In
addition, the Quality department shall report to Top Management on status of each
request at a minimum of once per month.
3.4 The supplier shall assign each Corrective/Preventive action to the responsible
department for root cause and countermeasure.
3.5 The supplier quality department shall evaluate each response for effectiveness for
closure.
3.6 The supplier shall report to KMMG status of each Corrective/Preventive request if
determined by KMMG.

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KR-GA-PD-SQD-S-0001
CORRECTIVE/PREVENTIVE ACTION
3.7 Once the root cause of a field claim is determined, the supplier shall take
containment actions to prevent further claims. This includes but not limited to part
sorts, part testing, and vehicle inspections as per KMMG direction.
3.8 For Field Claims, if the supplier cannot determine the cause of failure, the supplier
shall communicate results of investigation to KMMG QA. KMMG QA will advise on
required actions to address the issues.

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KMMG Supplier Quality Manual Confidential

2.0 RESPONSIBILITY AND AUTHORITY

2.0 RESPONSIBILITY AND AUTHORITY

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2.0 RESPONSIBILITY AND AUTHORITY

Abbreviations Term Definition

A philosophy of managing the workspace

AIAG Automotive Industry Action Group An automotive industry group

A framework of procedures and

CKD Complete Knock Down Imported parts

A device for measuring the physical

DDTZ Drive Defects to Zero Kia’s Quality Slogan

A document that recognizes and evaluates

EO Engineering Order The design or drawing level of a part

FG Finished Goods A part that is ready to ship to the customer

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Abbreviations Term Definition

FMVSS Federal Motor Vehicle Safety Standards Government regulation requirements

A method a approving a new part for each

ISIR Initial Supplier Inspection Report A approval of a part or a change

International Organization for An international organization. See

An inventory strategy designed to reduce

KMA Kia Motors America Design and sales in North America

KMC Kia Motors Corporation World wide organization

A collection of quality procedures for Kia

The phase or production after New Model

A check sheet issued by KMMG to asses a

A part considered acceptable to be placed

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Abbreviations Term Definition

PPM Parts Per Million A metric used to quantify rejected parts

Testing completed to show adherence to a

A method of controlling a process with

A division of the KMMG Quality

The primary section responsible for this

The primarily window person at KMMG for

A unique number issued by KMMG to

A term refereeing to the inventories

A strategy utilized by the supplier to

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2.0 RESPONSIBILITY AND AUTHORITY

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Minimum Requirements for Tier 1 Standard KMMG (Lead Role in Bold)

Manage nonconforming or suspect part quality. IATF 16949, KSQM SQ

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Minimum Requirements for Tier 1 Standard KMMG (Lead Role in Bold)

Develop plan to ensure smooth launch of any New KQSM, APQP

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2.0 RESPONSIBILITY AND AUTHORITY

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Inspection Frequency Every 6 Months Every 6 Months Every 12 Months

Kia Motors Manufacturing Georgia

Training Progression Chart

• Work within cycle time (single-handed process)