WIXLIB

Supplier Quality Manualwith this code as a minimum requirement.Linamar Corporation reserves the right to auditany supplier’s compliance to this code.The guiding principles set forth in this Coderequire that we: Foster an employee environment ofopportunity and mutual respect; Ensure our global operations, do notutilize child or forced labor, employees are freeto work without intimidation, harassment orundue influence; Remain committed to the continuousimprovement of workplace health and safety; Ensure our products’ raw materials arecomprised of “DRC conflict free” minerals inaccordance with the Conflict Free SourcingInitiative and ensure our suppliers do the same(see www.conflictfreesourcing.org) Focus on the satisfaction of thestakeholders on each leg of the LinamarStepping Stool (i.e. Employee, Customer, andFinancial) Promote healthy working conditions andenvironmental responsibility while abiding byall applicable environmental laws; and Seek suppliers who agree to commit tothe same principals in an effort to ensureadequate working conditions across our supplychain.2.3.5 REACH regulation EuropeTo follow the regulations in Europe the sellerwarrants that the Goods comply in all respectswith all statutory requirements (of any status) orregulations of the United Kingdom and/orEuropean Union applicable thereto which shallbe in force at the date of delivery and thereafter,and that the Seller has complied with all of itsobligations in relation to the Goods under anysuch statutory requirements or regulations,including, but not limited to, Regulation (EC)No 1907/2006 concerning the Registration,XR-12-C03-01-14 Rev 4.8Evaluation, Authorization and Restriction ofChemicals (REACH), Directive 2002/95/ECrestricting the use of certain hazardoussubstances in electrical and electronic equipmentand Directive 2002/96/EC on waste electricaland electrical equipment (WEEE), including anyand all domestic legislation enacting orincorporating these regulations and directivesinto law.2.4 AUDITS2.4.1 The Supplier must allow LinamarCorporation to establish through audits whetherits quality assurance procedures and policiesfulfill the requirements defined in this manual.The audit can be a potential supplier assessment,control plan audit, product audit, MMOG/LEaudit, or tooling audit. The Supplier will benotified in advance of the audit date.The Supplier will allow Linamar Corporationpersonnel and its customer representatives asapplicable all reasonable access to verify, at theSuppliers manufacturing premises, that productand subcontracted product or service conformsto specified requirements. The Supplier willfurther allow access for Linamar Corporationpersonnel to evaluate the Supplier’s ability tosustain the contracted production capacity. TheLinamar Supplier Quality Engineer shall specifyboth the arrangements and method of performingthese verifications2.4.2 The Supplier is to grant LinamarCorporation all reasonable access to alloperating sites, checkpoints, stores, adjoiningareas, and related quality documents required tocomplete the audit.2.4.3 Linamar Corporation may require theSupplier to implement corrective actions and/oraction plans to improve product or processesbased on the audit results. The plan must includeresponsibility and due dates for completion.8

Supplier Quality ManualSupplier will report the status of the plan peragreement to Linamar Supplier Quality.2.4.4 When quality or other problems emergethat have been caused by products, services,and/or deliveries by the subcontractor of theSupplier, the Supplier is responsible for auditingtheir Supplier and identifying, implementing allrequired improvement actions.2.5 SUPPLIER SELECTION /AWARD PROCESS (RFQ /SELECTION)2.5.1 The Linamar Corporation Buyers willselect Suppliers from the current supply baseand other Supplier listings with the agreement ofLinamar Corporation Purchasing management.Suggested or customer selected Suppliers mustbe approved prior to award of business.All present and potential Suppliers to LinamarCorporation shall be able to demonstrate, withobjective evidence, that they have implementedand maintain a Quality Management System thatconforms to the requirements detailed in ISO9001. Third party registration to ISO 9001 (orIATF-16949) is required by LinamarCorporation for automotive Suppliers of allIATF-16949 certified Linamar plants.A Potential Supplier Assessment (PSA) by aLinamar Corporation Supplier Quality Engineeron behalf of the Buyer may be required prior tothe approval of a purchasing agreement. ThePSA is structured to evaluate the Supplier’sQMS conformance to ISO 9001, AIAG andVDA requirements. The PSA may containadditional requirements, which would becommunicated to the supplier prior to thesurvey.Further, the Supplier shall be able todemonstrate, upon request, compliance withlocal, national and international standards andregulations regarding health, safety andXR-12-C03-01-14 Rev 4.8environmental issues relevant to the Supplier’sbusiness.Pre-award/Technical reviewAt the discretion of the Buyer, a preaward/technical review meeting for new orcurrent Suppliers offering new products orservices may be conducted prior to thecommencement of supply. Technical, quality,manufacturing, engineering, purchasing,delivery, capacity and business issues shall bereviewed during this meeting to provide:A.The Supplier with a thoroughunderstanding of Linamar Corporation’srequirements and expectations andB.Linamar Corporation a thoroughunderstanding of the Supplier‘s capabilities,program risks and limitations.2.5.2 The Supplier quote must include tooling,equipment, gauging, and piece price costs alongwith PPAP timing and INCO terms to LinamarCorporation. In some circumstances Tier IISuppliers may be required to identifysubcontractors and/or Suppliers of raw material(i.e. steel mill) in their quote response.2.5.3 The Supplier has accepted manufacturingfeasibility of the product by submitting the quoteto Linamar Corporation, unless explicitly notedon their feasibility document as an exception(s).NOTE: This applies to prototype material aswell.2.5.4 The Linamar Corporation Buyer with inputfrom the program team will select a Supplierbased on quality (current or anticipated), toolingcost, piece price, timing, QMS, risk assessment,financial stability, and Supplierrating/performance. In Europe, significantenergy use will also be taken into considerationfor supplier selection, (ISO 50001).2.5.5 Linamar Corporation will notify thenominated Supplier of the new business award9

Supplier Quality Manualby issuing a Letter of Intent to Purchase and/or aPurchase Order for the program.2.6 PRODUCT/PROCESSDEVELOPMENT ANDPLANNING (APQP)2.6.1 GENERAL DEVELOPMENTREQUIREMENTS2.6.1.1 The Supplier shall plan and developquality systems and manufacturing processesrequired for product acceptance (PPAP) basedon their quote and Linamar Corporation programtiming. The plan must facilitate communicationwithin the organization to ensure all requiredsteps are completed on time, at acceptablequality and cost levels.Each Supplier shall develop a quality plan thatpromotes continual improvement in all activitiessuch as quality, cost, and delivery and whereappropriate, design and development. This planshall include education and training in problemsolving techniques (including statistical problemsolving), employee involvement and Cost ofQuality data analysis. The plan shall incorporateassigned responsibilities, target dates andregularly scheduled management reviews.Documentation providing evidence of adherenceto this plan shall be made available to theBuyer/SQE upon request. For any characteristicnot meeting the capability criteria, a correctiveaction plan with applicable timing andresponsibilities must be submitted to LinamarCorporation Supplier Quality and/or the plantquality engineer for approval.All correspondence, records and reportsprovided to Linamar Corporation shall be in theunit of measure of the design data (specification,drawing etc.) identified on the Purchase Order.XR-12-C03-01-14 Rev 4.82.6.1.2 Supplier must review and approvefeasibility of the product required by LinamarCorporation prior to initiating a quote and/oraccepting a Purchase Order. Feasibility mustinclude manufacturing, appearance, materialperformance, and any functional requirementbased on customer product requirements. Note:Suppliers of prototype material are likewiserequired to review and approve feasibility oftheir products. Feasibility agreements will beprovided by the prototype buyers.All production part sample submissions shallinclude all requirements listed in the AIAGmanuals, VDA and customer specificrequirements. Any deviations from theserequirements shall only be authorized byLinamar Corporation Supplier Quality and/or theplant quality engineer. The need for anAppearance Approval Report (CFG-1002) andother discretionary requirements will be clearlyidentified as a condition on the Purchase Order.The default level of PPAP is Level 3.All PPAP submissions are preferred to be inelectronic media.Changes in Approved ProcessesUnapproved changes are considered by LinamarCorporation to be extremely serious and raisevery significant risks to the Supplier, LinamarCorporation and our customers. The conditionswhich require the resubmission and approval areclearly stated in the AIAG - PPAP manual. Toensure there is no misunderstanding of theseconditions, Linamar Corporation feelscompelled to restate that the changes to apreviously approved manufacturing process,including changes of sub-Suppliers, require theSupplier to contact the appropriate Buyer and/orcorporate supplier quality and/or Linamar plantquality engineer. Revalidation testing and itsassociated costs may be required. Failure tocomply with these requirements shall make theSupplier fully responsible for the absorption ofall costs relating to customer acceptance of the10

Supplier Quality Manualchanged component and any failures (includingfield failures) attributed to the change. LinamarCorporation may choose to inform the Supplier’sthird party registrar of these violations. If thereis any doubt on the part of a Supplier regardingthe need for re PPAP of a previously approvedcomponent, it is strongly recommended thatLinamar Corporation Supplier Quality beconsulted.Note: The above applies to prototype materialas well where changes are expected.2.6.1.3 Linamar Corporation expects itsSuppliers to identify, document andcommunicate any issues or concerns withdesign, materials, performance, appearance, anddurability based on their expertise, knowledgeand lessons learned from similar products.2.6.1.4 The Supplier is responsible fordisposition of all product requirement concernsprior to accepting the Linamar CorporationPurchase Order.2.6.1.5 The Supplier must ensure confidentialityof Linamar Corporation designs andspecifications for products and processes underdevelopment. Linamar Corporation will ensureconfidentiality of Supplier’s proprietary designsand processes under development. In highlysensitive cases a documented confidentiality orno compete agreement may be required between,Linamar Corporation, and Supplier.2.6.1.6 The Supplier must allow LinamarCorporation to review product and processdevelopment and planning via on-site reviewand confirmation during development or at anytime during part production, if requested.Reference Process Control Plan Audit form XF02-C03-01.2.6.1.7 Supplier must notify LinamarCorporation Purchasing/Corporate SupplierQuality/Linamar plant program manager if thereis a change in program timing and a risk tomeeting agreed upon tooling completion orXR-12-C03-01-14 Rev 4.8PPAP date. Supplier will be required to addadditional resources and/or work additionalhours (7 Days, 24 Hours) to ensure date is met.2.6.1.8 The qualification and approval of tools,equipment and gauges will be defined andcontrolled by Linamar Corporation. Approvalmay include run at rate, process capability,gauge R&R, and PPAP.2.6.1.9 SAFE LAUNCH Process - It is theSupplier’s responsibility to ensure all productionprocesses are launched in such a manner thatthey will not adversely impact LinamarCorporation or its customer’s productionprocesses to meet timing and quantity. In theexecution of a SAFE LAUNCH the use of toolssuch as Pre-production Product Flow Diagramsand Control Plans is, at a minimum, required.See also section 2.6.9.4.NOTE: Safe Launch does not apply toprototype material.2.6.2 DESIGN / PROCESS CONTROL2.6.2.1 The Supplier shall have a process tocontrol and react to design and process changes.The Supplier is responsible for verifying that therequired Linamar Corporation written approvalor amended, or new Purchase Order has beenobtained prior to proceeding with any change.2.6.2.2 The Supplier is responsible for changefeasibility of their product to Purchase Order andLinamar Corporation defined requirements.Documented feasibility is required for any newor changed manufacturing process or productdesign.2.6.2.3 Supplier must be capable of receiving allmath data files for product development or toolchange from Linamar Corporation.2.6.2.4 All special and critical characteristicsmust be defined on all process controldocuments. (I.e. Drawings, Process Flows,Control Plans, PFMEA, Inspection Plans, etc.)11

Supplier Quality Manual2.6.2.5 Supplier must have an effectivecontinuous improvement process that reducesthe Risk Priority Number (RPN) by operation.Note: RPN reduction does not apply toprototype material.2.6.2.6 Dependent upon customer requirements,SPC is required for all SC or CC dimensions andfunctions listed in the design record and controlplan. Process capability must be documentedand evaluated. All critical characteristics (CC)should be error proofed to prevent failure modes.100% verification is required when acceptablecapability is not demonstrated. NOTE: SPC isnot typically required for prototype material,although Linamar may request analysis ofshort term, very low volume data.A significant characteristic is a feature of anycomponent/process, which requires particularattention on the part/process of the manufacturerto ensure conformance to the specification.Some examples are the application of specialsymbols on the engineering drawings, material& process specifications and appearance on acontrol characteristic list.Minimum required ongoing process capabilityindices for all SC’s shall be Xpk 1.33 minimumwhere index is chosen per AIAG requirementsor CSR.Those items not meeting the capability criteriawill be inspected 100% until capability isresolved.2.6.2.7 Error proofing sensors and function mustbe verified with test masters or “rabbits” at thebeginning of each shift and documented. Note:Not required for prototype material.Quality Engineer. Note: Not required forprototype material.2.6.3 PROCESS APPROVAL2.6.3.1 Process requirements and documentationat a minimum must meet the latest edition of theAIAG manuals, VDA and CSR. LinamarCorporation may require additional evaluation orrecords as required. Linamar Corporation willsubmit those requirements to the Supplier inadvance. Note: Not required for prototypematerial.2.6.3.2 The Supplier shall provide and maintaina timing plan to meet the contract agreement.Timing status will be submitted to the identifiedLinamar Corporation team members. Note:Applies to prototype material.2.6.3.3 Equipment, tooling, and components willbe evaluated and approved based on drawing orspecified requirements along with run at rate andcapability evaluation. Capital equipmentrequires buyoff at the Supplier and LinamarCorporation plant unless otherwise agreed upon.2.6.3.4 Equipment and tooling ownership mustbe permanently marked and verified prior toPPAP approval. Identification shall be detailedby customer requirement. Note: Applies toprototype material.2.6.3.5 Special Processes shall be assessed usingthe document listed below as applicable:CQI-9-Heat Treating assessmentCQI-11-Plating assessment2.6.2.8 The supplier shall monitor capabilitydata on an ongoing basis and maintain records.Linamar has the option to request this capabilitydata on a periodic basis.CQI-12-Coating assessment2.6.2.9 To ensure continuing conformance, thesupplier shall complete an annual layoutinspection unless waived in writing by LinamarCorporation Supplier Quality Engineer or plantCQI-23-Molding assessmentXR-12-C03-01-14 Rev 4.8CQI-15-Weld

The basis for Linamar Corporations Supplier Quality System Requirements is a combination of the Quality Management System - Requirement ISO 9001 and the AIAG's Quality Core Tools (VDA tools in Europe). Linamar Corporation prefers third party registration and certification to IATF 16949. These systems complement each other and are the framework