Advanced Product Quality Planning Status Reporting Guidelines

Level 6 Edition December 2010

APQP STATUS REPORTING GUIDELINES A3-A-6.48

Foreword to the Level 6 Edition

At Lotus, we strive to deliver products & services that exceed customer expectations. To achieve these high standards, we use an Advance Product Quality Planning (APQP) System. This is a flexible system that promotes a structured approach to suit all product introductions. This system forms the foundation for continuous improvement & on-time project deliverables. This is a cross-functional team activity that must be supported at all levels to maximise the benefits of APQP. This document is the Level 6 Edition of Lotus Cars Ltd Advanced Product Quality Planning Status Report Expectations. The document was issued to incorporate the new Corporate Identity a number of revisions were made in Level 5 which include: An explanation of the initial Kick Off Meeting detailed in section 2. A revision to the rating system for the four focus element ratings in section 4.2. An addition of section 7 detailing the use of the program need date guide. The addition of element 12 on the Status Report which considers the Team Feasibility Commitment. Documents used within the Lotus APQP procedure, are added to the Appendix section.

The Lotus Cars Ltd APQP Status Report Expectations Level 6 obsoletes the Level 5 Edition effective December 2010 unless otherwise specified by Lotus.

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Contents 1. INTRODUCTION -------------------------------------------------------------------------------- 3

1.1 APQP Definition 1.2 Goal 1.3 Purpose 1.4 Approach 3 3 3 3

2. APQP FUNDAMENTALS --------------------------------------------------------------------- 3

2.1 Teams 3

3. THE APQP STATUS REPORT -------------------------------------------------------------- 4

3.1 Purpose 3.2 Status Reporting Responsibility 3.3 Reporting Requirements 4 4 4

4. RATINGS AND ASSESSMENT ------------------------------------------------------------- 4

4.1 GYR Status 4.2 Focus Element Rating 4.3 Rating Scale 4 5 5

5. APQP STATUS REPORT FIELD DESCRIPTIONS ------------------------------------ 6 6. APQP ELEMENT DESCRIPTIONS--------------------------------------------------------- 7 7. APQP STATUS REPORT PND GUIDE ------------------------------------------------15 APPENDIX A, B, C--------------------------------------------------------------------------------17 APPENDIX D APQP RASIC MATRIX -----------------------------------------------------17 APPENDIX F----------------------------------------------------------------------------------------18

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1. Introduction
1.1 APQP Definition Advanced Product Quality Planning (APQP) is a structured method for defining and executing the actions necessary to ensure a product satisfies the customer. APQP is supplier-led and required of all system, subsystem and component manufacturing locations. The goal of APQP is to facilitate communication with all persons involved in a program and ensure that all required steps are completed on time, at acceptable cost and quality levels. The purpose of this guideline is to establish: Common APQP expectations for the internal and external suppliers to Lotus. Common APQP process metrics A common program status reporting format Roles and responsibilities for APQP elements 1.4 Approach This guideline focuses on 23 key APQP disciplines. Lotus expectations are defined for these key disciplines in definitions and detailed checklists. The status for these disciplines is summarised on the APQP Status Report. This guideline is written from a supplier standpoint. A supplier is an internal or external supplier of materials, components, subsystems, or systems that will be delivered to a customer. A customer is the recipient of the suppliers product. Besides customers, every supplier will have subcontractors. A subcontractor is the provider of materials or parts to a supplier.

1.2 Goal

1.3 Purpose

2. APQP Fundamentals
2.1 Teams The first step in the Advanced Product Quality Planning Process is to assign responsibility to a cross-functional team. Effective product quality planning requires the involvement of more than just the quality department. The team should include representatives from engineering, manufacturing, material control, Logistics, purchasing, quality, sales, field service, subcontractors, and customers (as appropriate). In the majority of cases Lotus SQA will facilitate an 'APQP Kick Off' meeting to formally start the APQP process and communicate the project requirements and expectations. The meeting will be attended by the Lotus Commodity Advisory Group (CAG) along with the Engineering function and any other disciplines key to the product(s) to be sourced. The Suppliers core team will be expected to attend the kick off meeting. A standard agenda will be used for the kick off meeting. Minutes will be generated and issued by the responsible SQA Engineer (See Appendix F). The frequency of APQP Status Report submission will be agreed during the kick off meeting and noted in the meeting minutes.

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The supplier is responsible for submitting against the agreed schedule. Note 1: failure to submit APQP Status Reports to the agreed timing schedule will result in demerits to the Suppliers Quality rating within the Lotus QCD system. Note 2: Where a kick off meeting is not held the supplier will be asked to submit an initial APQP status report defining the suppliers core team. The APQP status report submission schedule and ability to meet the project milestones, will be agreed in writing with the responsible SQA Engineer.

3. The APQP Status Report

3.1 Purpose The APQP Status Report summarises the program status for the 23 key APQP elements. The Status Report facilitates communication between suppliers and customers, particularly when information, direction or support is required. It also provides a dated record that future programs can reference.

3.2 Status Reporting Responsibility

The supplier has primary responsibility for the Status Report. The supplier must conduct the focus element rating assessments and GYR (Green-Yellow-Red) assessments on the 23 APQP elements. The status report summarises the results of the assessments. See Appendix D APQP RASIC Matrix for further information on primary responsibilities for each APQP element.

3.3 Reporting Requirements

The Status Report must be submitted to the customer at all major program reviews. Customers or suppliers should conduct more frequent reviews as needed. The customer must provide a list of all scheduled program status review dates to the supplier. Supporting documentation must be submitted upon customer request.

4. Ratings and Assessment

4.1 GYR Status Green-Yellow-Red (GYR) Status communicates the progress toward the successful completion of an APQP element by the program need date. Program need date is the last possible date an element can be completed and not adversely affect quality or timing of the program. The GYR Status column of the report shows the assessment for each element. Definitions for Green, Yellow and Red follow: Green G ratings are given before the program need date to indicate the element will meet program need date and will meet all quality & cost expectation. G ratings given on the program need date indicate the element is complete and meets all quality expectations (see section 6 for element expectations).

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Yellow Y ratings are given prior to the program need date to indicate an element may not meet the program need date or quality expectation. To be considered Y a recovery plan must be in place for the element. Y ratings indicate a need for program management attention. A Y rating can only be given to an element prior to the program need date. Red R ratings are given prior to the program need date to indicate an element will not meet the program need date or quality expectations. R signifies the program is at risk and needs immediate management attention. H & P status the H column is for indicating the historical review status of each element. The P column is for the current status of each element.

4.2 Focus Element Rating

Four focus elements are assessed for quality of the event using the appropriate Focus Element Rating Checklist (see Appendix C). Expectations Cover the basic requirements for the successful completion of the element. Must be complete by the program need date for the element to be considered closed. Can be waived by the customer

4.3 Rating Scale

The checklists use a 0 to 3 rating scale, with the score of 3 Indicating all customer expectations have been met. An explanation of the scoring follows: 0 - Less than half of the Expectations are completed. A 0 rating is acceptable during early program status reviews, but signals a need for management action as the program need date approaches. 1 - At least half, but not all of the Expectations are completed. A 1 rating indicates there is a progress towards element completion by program need date. A 1 rating is acceptable during early program status reviews, but signals a need for management action as the program need date approaches. 2 75% of all Expectations are complete. A 2 rating must be achieved by the program need date for the element to be considered closed. 3 - All expectations are complete. A 3 rating signals the need for positive management recognition is achieved by the program need date.

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5. APQP Status Report Field Descriptions

The following section describes how to complete each of the fields on the APQP Status Report. 1 Date 2 Review Number Enter the current date. Enter the number of the status report review with the customer. Increment the number after each review. Enter the company name. If the supplier is delivering the product to another department within the manufacturing facility, a department number or group name may be entered here. Enter the location of facility manufacturing the system, subsystem or component. Enter the Lotus Supplier code for the facility listed in item 5. This section identifies risk associated with the supplier and/or product. Check the boxes, as appropriate, for new sites, new technology, or new processes. If applicable, briefly describe other risks and check the box. Enter the name of the customer program. Enter the model year for the customer program. Enter the part number or lead part number for families of parts (i.e. same part, different colour) being supplied to the customer. For families of parts, attach a list of all part numbers associated with the lead part number to the status report. Enter the name of the part. Enter the latest engineering release notice number associated with the part. Enter the name of the customer plant(s) to which the lead part number will be shipped for assembly or manufacture in the next higher system, subsystem or component. Enter core APQP team members. The first team member to be noted must be the supplier program manager. Identify the company and title of each core team member. List each core team members phone and fax number. List each prototype build required by the customer. Enter the customers material required date for each prototype build listed in the build level column. Enter the quantity required to support each prototype build. Enter the number of significant characteristics concurred with the customer and supplier for each prototype build.

3 Supplier

4 Location

5 Supplier Code 6 Risk Assessment

7 Program 8 Model Year 9 Part Number

10 Part Name 11 Design Level

12 User Plant

13 Team Members

14 Company/Title 15 Phone/e-mail 16 Build Level 17 Material Required Date

18 Quantity 19 Number SCs Concurred

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20 Number CCs Concurred

Enter the number of critical characteristics concurred with the customer and supplier for each prototype build.

21 APQP Elements

A list of the APQP documents, tasks, and disciplines which must be completed to support a customer program. See detail under individual headings. GYR assesses whether the expectations of the element will be completed in time to meet the program need date. See Section 4.1 for GYR definitions and assess procedures. Enter G, Y, or R as appropriate. Determine if all of the expectations have been met using the appropriate focus element rating checklist. Enter the result. Note: the score must be at (2) or greater at the program need date to be considered closed. See Section 4.3 for detailed description of the scoring system. This is the last possible date the element can be completed without adversely affecting quality, cost or timing of the program. However this section is automatically populated when completing the PND Guide. See section 7 for a completion guide. Enter the date the element is currently planned to be completed. Whenever timing changes, there should be comments in the Remarks column that explain why the original was revised. Enter the date the element is successfully completed. Successful completion means that all expectations listed in the APQP Elements Definitions and Expectations for the element has been met. Focus elements must have a rating of (2) or greater to be considered closed. If an element is reported as (Y)ellow or (R)ed, assign the element to a team member, and enter their initials in the box. The responsible engineers full name and phone number must also be listed in the Team Member block. For any APQP element reported as Y or R, enter a brief remark addressing the situation. If the original timing has been revised, note the reason for the change. Enter any additional comments regarding the status of the program.

22 GYR Status

23 Focus Element Rating

24 Program Need Date

25 Supplier Timing Date

26 Closed Date

27 Champions Initials

28 Remarks

29 Comments

6. APQP Element Descriptions

The following section describes each of the APQP elements found on the Status Report. 1) Sourcing Decision Following completion of market studies on preferred suppliers the sourcing decision is then made by the APQP team. The Sourcing Decision is completed and communicated to the supplier by use of Letter Of Intent (LOI) before the program need date.

Expectations

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1a) PCR sign off complete

The PCR (Product Change Request) is the new or modified part release procedure and is used to approve the release of the part to place orders for tooling and piece. This is the responsibility of the Release Engineer The PCR is signed off by all signatories in advance of the program need date Tooling or piece orders (per build phase) affecting the program critical path have been placed. This is the responsibility of the commodity buyer Where tooling lead times are identified, the supplier has received order cover in advance of the program need date. Where no tooling is required the supplier has a piece order cover sufficiently in advance of the program need date to allow the supplier to complete the APQP process

Expectations

1b) Critical path Order placement

Expectations

2) Supplier Master Timing Plan

Program timing is a plan that lists tasks, assignments, events and timing required to provide a product that meets customer needs and expectations. Program timing dates must be communicated for the following: Relevant APQP Elements Tooling Program status reviews Design freeze Prototype builds Material required dates Job 1

3) Customer Input Requirements

Customer input requirements are the design criteria and the program requirements necessary to initiate the supplier Advanced Product Quality Planning process. Design goals are a translation of the voice of the customer into tentative and measurable design objectives. The supplier must receive initial system and component designs and specifications including: product assumptions functional performance dimensions weight materials

Expectations

3) cont

Reliability and quality goals are established based on customer wants and expectation, program objectives, and reliability benchmarks. The supplier should receive reliability and quality goals that include the following targets: PPM Cpk & Cmk SCAR response times Warranty targets

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Affordable cost targets have been communicated for the vehicle, system, subsystems, and components. Capacity Planning volumes have been given to the supplier. A list of Key Contact Personnel within Lotus has been given to the supplier. The list should include names, locations and phone numbers of the program manager, design and release engineers, purchasing agent, Supplier Quality Assurance Engineers, and others as appropriate. 4) Design Failure Mode & Effects Analysis

A Design or system FMEA is a systematic approach used by a design responsible team to assure that potential design failure modes and their associated causes have been considered and addressed. Design responsibility the DFMEA must be competed with input from all relevant parties.

Expectations

5) Design Reviews

Design reviews are regularly scheduled meetings led by the suppliers design activity and must include other affected areas. Design reviews are a series of verification activities that are more than an engineering inspection. The design review is an effective method to prevent problems and misunderstanding; it also provides a mechanism to monitor progress and report to management. Design feasibility concerns are resolved in time to support each build material required date. Review Design Verification Plan and Sign Off Report (DVP & SOR) progress. Unanticipated failure modes encountered during design verification testing should be addressed in the design FMEA. The APQP Status Report must be reviewed during the design reviews. Review progress toward achieving reliability, quality, costs and timing targets.

Expectations

6) Design Verification Plan

The Design verification plan is a document that lists the engineering evaluation and test required to establish that the design is fit for use in its intended environment.

Expectations

The DVP is a team approach. The outcome of which identifies specific tests, methods, equipment, acceptance criteria, sample sizes, design level and timing. Tests should include variation within tolerance on team-selected product characteristics. The Design Verification should include test requirements for design, material, or manufacturing processes that apply to the

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production trial and include tests which address environmental ageing, dimensional wear, and material fatigue. Tests, which address the useful life of the product, climate, road surface conditions etc

7) Subcontractor APQP Status

Subcontractor APQP Status is a supplier summary of its suppliers or subcontractors APQP status. Suppliers should cascade APQP requirements to their suppliers or subcontractors and conduct APQP reviews as appropriate. The results of those reviews are summarised on line 6 of the APQP Status Report. All suppliers must assess risk and specify the level of their suppliers APQP participation. Subcontractors that affect special characteristics must follow APQP disciplines. Suppliers will allocate sufficient resources to work with their subcontractors as part of a cross-functional APQP effort. Suppliers will hold regularly scheduled APQP status reviews with their subcontractors. Concerns are reported to the customer and action plans are developed for elements that do not meet quality, cost and timing objectives. Lotus SQA must agree the level of APQP to be performed on all relevant Sub Suppliers.

Expectations

8) Facilities, Tools and Gauges

Facilities, tools and gauges, are those additional, new, refurbished and relocated resources required to produce the product at the customer specified quantity and quality levels. Facilities, permits, planning approval, drawings, and utilities must be included on the product quality timing plan and funding approval must be complete. Tooling, equipment and gauges must be sourced with statistical requirements and acceptance criteria agreed upon. Equipment, tooling and gauges should be qualified at the machines builders location using a trial run. Corrective actions for all gauges and tooling that do not meet customer requirements must be completed prior to the production trial run. Equipment, tooling and gauges must be delivered set-up and approved prior to the production trial run.

Expectations

8a) Recruitment & Training Plan

Recruitment and training plans detail the quantity and training of staff required to support all trial builds and production volume. Staff are recruited to support all trial builds and production volumes.

Expectations

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A skills matrix and training plan are to be completed to ensure that all staff are fully trained prior to production manufacture including all key process & relevant functions.

9) Prototype Build Control Plan

Prototype build control plans are a description of the dimensional measurements, material and functional test that will occur during prototype build. See focus element rating checklist in Appendix C.

Expectations

10) Prototype Builds

Prototype builds are the manufacture or assembly of components, systems or subsystems supplied to the customer for builds occurring prior to the production trial run. All customer prototype material required dates (MRD) will be met with the correct level parts, customer specified date and customer approval for all non-conformances. The prototype build control plan must followed during the manufacture of the prototype build. Control Plan must be reviewed after each Prototype build stage.

Expectations

10a) Prototype ISIR

Prototype ISIR are the dimensional and material / performance reports, which are required with all parts prior to PPAP / PSW approval. All parts supplied to the customer for builds occurring prior to start of production must have a Prototype ISIR. No parts to be shipped to the customer if there are any deviations from drawing, unless written agreement from the relevant SQA Engineer is received.

Expectations

11) Drawings and Specifications

Drawings and specifications cover all engineering drawings, CAD data, material specifications and engineering specifications. Program need dates must be communicated to the customer. The drawings and specifications program need dates is the last possible date the supplier can accept a design change and support PSW delivery at the Material Required Date. Drawings and specifications should include engineering specification tests, product validation test requirements and must be documented in time to support pre-launch control plan development. Batch control & traceability information must be detailed on to level drawings. Major feasibility concerns must be resolved prior to the production trial run.

Expectations

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11a) Visual acceptance standards

Visual acceptance standards should define all potential visual concerns that may occur on the parts (i.e. grain, gloss, colour, surface imperfections etc). Visual standards should be developed jointly between the customer and the supplier, and should be approved prior to design release Eg:- A, B & C surfaces to be defined in line with Lotus requirements. Team Feasibility is a cross-functional approach to determining whether a proposed design can be manufactured within guidelines & specifications. A cross-functional review team is to be established by the supplier and charged with assessing design feasibility. Once workability is established, the supplier undertakes the responsibility for the design/manufacturing review process and the reassessment of feasibility for any design/part change that may occur. The Team Feasibility Commitment document A4-A-6484 (See Appendix E) is to be used by the suppliers Product quality planning team to assist with the product feasibility evaluation. This document is not intended to be all-inclusive in performing a feasibility evaluation and the supplier must consider all other inputs associated with customer requirements. Upon signing this document the supplier confirms that a detailed analyses has taken place and concur their ability and those of any subcontract suppliers within their supply chain to meet all customer specified requirements. It is fundamental that any concerns in relation to feasibility regardless of the perceived risk must be identified within the Team Feasibility Commitment document. All no answers shall be supported with attached comments identifying concerns and /or proposed changes to meet customer requirements. If there are other concerns that have not been identified as part of the standard consideration requirements but have been identified within the supplier internal feasibility assessment. The supplier shall forward attachments with the Team Feasibility Commitment Document recording the overall status within the Conclusion box prior to signing and returning to Lotus.

Expectations

12) Team Feasibility Commitment

Expectations

13) Manufacturing Process Flow Chart The process flowchart is a graphic representation of the current or proposed manufacturing process flow. Expectations Process flow chart must detail each process stage from goods receipt to despatch.

14) Process FMEA

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Expectations

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15) Measurement Systems Evaluation Measurement systems evaluation assesses the variation of the measurement system and determines whether the measurement system is acceptable for monitoring the process. Expectations The customer should approve the measurement system evaluation methods, standards, acceptance level, statistical and analytical requirements. This must include an agreement with the customer regarding correlation when duplicate gauges and test equipment exist. All gauges and test equipment must be modified to reflect the latest engineering level prior to the production trial run. The customer must be given the opportunity to review and concur with the gauge and test equipment study results prior to the production trial run. Measurement systems evaluation must be repeated and approved following all gauge and test equipment modifications. Type one & or two R & R studies must be completed for each gauge.

16) Pre-Launch Control Plan

The pre-launch control plan is a description of the dimensional measurements and material and functional tests that will occur after prototype and before full production. Pre launch Control Plan must include all additional checks for Pre Launch builds to ensure component quality. This document must be reviewed after each build stage.

Expectations

17) Operator Process Instructions

Operator Process Instructions describe the details of controls and actions that operating personnel must perform to produce quality products. See focus element rating checklist in Appendix C

Expectations

18) Packaging Specifications

The Advanced Product Quality Planning Team should ensure that individual product packaging for shipment (including interior partitions) is designed and developed. Customer packaging standard or generic packaging requirements should be used when appropriate. Packaging requirements will be agreed to by the supplier and the customer plant. Packaging evaluations should test the packaging under the expected conditions of transport and material handling. The packaging design must ensure that the product performance and characteristics will remain unchanged during packing, shipping and unpacking.

Expectations

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19) Production Trial Run

The production trial run is a validation of the effectiveness of the manufacturing process, using production tooling, equipment, environment (including production operators), facilities and cycle time. Output of the production trial run is used for Production Part Approval and noted on the Part Submission Warrant (PSW). The pre-launch control plan is followed during the production trial run. The trial run must be used to confirm or add linkages between product and process characteristics. Corrective design and process actions must be established for concerns identified during trial run.

Expectations

19a) Run @ Rate study

Run @ rate studies are used on new parts / processes as a production capacity confirmation check.

Expectations

Suppliers should carry out run @ rate studies on all new parts and process to confirm that production capacity is correct to the suppliers original planned capacity.

20) Production Control Plan

The production control plan is a written description of the systems for controlling parts and processes during full production. See focus element rating checklist in Appendix C

Expectations

21) Preliminary Process Capability Study

The preliminary process capability study is a statistical assessment of the ability to produce product within specification. Refer to Lotus Production Part Approval Process manual for details concerning the preliminary process capability study. All special characteristics must be studies and have Cp and Cpk 1.33. Statistical and analytical techniques used to determine capability must be acceptable to the customer. Preliminary capability studies must be performed as documented in the pre-launch control plan. Preliminary capability studies must be completed and the customer given the opportunity for review before Production Part Approval.

Expectations

22) Production Validation Testing

Production validation testing refers to engineering tests, which validate that products made from production tools and processes meet engineering standards. Parts for production validation testing must be selected from the production trial run per the sample sizes and frequencies outlined in the pre-launch control plan.

Expectations

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All customer-specified dimensional, material, functional and reliability tests must be completed prior to production part approval. If not, appropriate action plans and customer approvals are required. 23) Production Part Approval & PSW Part Delivery at MRD

Production part approval is the documented verification that all customer engineering design requirements are met by the supplier and the process has the potential to produce to these requirements during an actual production run. All items of the Lotus Production Part Approval Process manual must be completed and the required documentation provided to the customer with the Part Submission Warrant. Production part approval is complete before the material required date for the user plants production trial run. This will normally be at least one week before MRD. PSW part delivery at Material Required Date (MRD) is the latest date that fully approved (PSW) material must be received at the customers plant to support their production trial run.

Expectations

The customers material required date must be included in the suppliers timing plan. Production part approval requirements must be completed prior to user plant MRD.

PSW submission will default to level 3. The warrant level may change depending on the parts category & risk. Additional supporting documentation maybe required depending on SQA Engineering requirements. However any submission change must be agreed with the relevant SQA Engineer.

7. APQP Status Report PND Guide

The Programme Need Date for each element of the APQP Status Report is the last possible date that the particular element must be completed by, in order to meet over-all Programme Timing objectives. The PND Guide has been developed to assist Suppliers establish realistic Programme Need Dates for each element. This guide requires the Supplier to answer a series of simple questions. The first of these questions relates to the Lotus Cars Production MRD Date for the Project and then works backwards from this date, through each of the 23 elements of the APQP Status Report to finally identify the date when the sourcing decision for the component or assembly in question must be completed in order to achieve a timely PSW Approval. The answer to each subsequent question relates to the number of calendar days the Supplier requires to achieve an objective. On entering this timing into the relevant blank space(s) on the PND Guide spreadsheet, dates are automatically generated and transferred onto the APQP Status Report thereby giving a Programme Need Date for the appropriate element. UNCONTROLLED IF PRINTED
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For example: A Project has a Production MRD date of 23rd September 2008. On entering this date into the blank space on the PND Guide, dates for elements 23 onwards change from the default level (00/01/1900) to 23/09/2008. Working backwards through the elements of the APQP Status Report, the supplier is then asked to answer two questions relating to Element 23 of the APQP Status report:

a) How many days will it take the Supplier to ship parts once the PSW is approved by Lotus Cars? b) How many days will it take to submit PSW parts and documentation to Lotus Cars, and receive approval? If the answer to these questions is 10 days and 15 days respectively then, on entering this information into the relevant blank spaces on the PND Guide, a date of 29/08/2008 is generated and transferred to Element 23 of the APQP Status Report. This is the last possible date that the Supplier must achieve PSW Approval and meet the Project MRD Date of 23/09/2008. Similarly the next question relates to Element 22 of the APQP Status Report - Production Validation Testing. The Supplier is asked to identify how many calendar days it will take to compile the Production Part Approval submission once all requirements, such as testing and control plans etc., are completed. If the answer to this question is 10 days then, entering this information into the blank space on the PND Guide generates a date of 19/08/2008, which is transferred to Element 22 of the APQP Status Report. This is the last possible date that the Supplier must complete all Production Validation testing and documentation in order to meet the Project MRD date, 23/09/2008. This question and answer process then continues from Element 21 through to Element 1 of the APQP Status Report. At this point the Supplier is asked to confirm the last possible date that the sourcing decision must be completed by Lotus Cars, in order to enable the timing dates generated through the previous 22 Elements, without affecting part or process development and Project timing. An example of the PND Guide can be observed in Appendix B.

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Appendix A, B, C
Please see document A4-A-6481 APQP Status Reporting Form

Appendix D APQP RASIC Matrix

APQP Element
1) Sourcing Decision 1a) PCR/EDR Release 1b) Purchase order coverage 2) Supplier master timing plan 3) Customer Input Requirements 4) Design FMEA 5) Design Review(s) 6) Design Verification Plan 7) Subcontractor APQP Status 8) Facilities, Tools, and Gauges 8a. Recruitment & training plan 9) Prototype Build Control Plan 10) Prototype Builds 10a Prototype ISIR submission 11) Drawings and Specifications 11a Visual acceptance standard 12) Team Feasibility Commitment 13) Manufacturing Process Flow Chart 14) Process FMEA 15) Measurement Systems Evaluation 16) Pre-Launch Control Plan 17) Operator Process Instructions 18) Packaging Specifications 19) Production Trial Run 19a Run @ Rate capacity study 20) Production Control Plan 21) Preliminary Process Capability Study 22) Production Validation Testing 23) Production Part Approval (PSW) R R R R R R R S S S S R + R R R R * * * R R R R R R * R R R R R R R S S S R R R R S R S S S R S S R S R R R R R R S R R S R S R S

Primary Responsibility
Lotus \ Client R R R R R R R Supplier R

Responsibility within Lotus \ Client

Purchasing Engineering S R S R R R R R S R R S R R S S R S S S R Quality SQA S Mat'l Control S

* = Where the Supplier is responsible for the design they will also be responsible for these elements + = Where Lotus \ Client are supplying the tools they will also be responsible for these elements R = Responsible S = Support R = Lotus \ Client responsibility to ensure supplier has fulfilled requirements S = Lotus \ Client support to responsible person to ensure supplier has fulfilled requirements

Lotus reference documents to be used: Group Lotus Supplier Handbook Issue 9 December 2010 Document Reference A5-A-6001.

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Appendix E
Please see document A4-A-6484 Team Feasibility Commitment

Appendix F
Please see document A4-A-6485 APQP Kick Off Meeting Agenda

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