supplier quality faq

A white paper issued by: Siemens.

Siemens AG 2016. All rights reserved

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PRODUCTION PERMIT/ CONCESSION FORM GUIDELINES

Issue 04

22nd February 2017



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Contents

1 Purpose 3

2 Scope of Applicability 3

3 Definitions and glossary / terminology 3-4

4 General guidelines for the application 5-6

5 Application disposition results 6-9

5.1 Decision classified as REJECT

5.2 Decision classified as SCRAP

5.2.1 Supplier Owned Parts

5.2.2 Customer Owned Parts

5.3 Category of the dispositioned application

5.3.1 Category 1

5.3.2 Category 2

5.3.3 Category 3

6 Submission of the completed application 9

7 Withdrawal of the submitted application 9

8 Supplier Quality Team at Siemens Canada 10 9 Top Level view of application flow 11 10 Color Chart and instructions on how to fill the form 12-20

11 Production Permit/Concession Form template 21

12 Change History 22



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1. Purpose

The purpose of this document is to formally communicate Siemens Canada Limited

SCL, Industrial Turbines Company (UK) Ltd ITCL and Siemens Energy Inc.(Mount

Vernon) SEI requirements and expectations to the global supply chain related to the

submission of Concession and Production Permit applications.

The instructions described below are the guidelines to complete Production Permit and

Concession forms for Siemens AGT. This guide will also be used internally by Siemens

AGT to capture Right First Time (RFT) data against submissions.

2. Scope of Applicability

These guidelines are applicable to first tier suppliers who supply product related to

Siemens Canada Limited SCL, Industrial Turbines Company (UK) Ltd ITCL and

Siemens Energy Inc. (Mount Vernon) SEI contracts / purchase orders unless otherwise

specified in the contract / purchase order. The first tier suppliers shall ensure

compliance to these guidelines for the submitted application.

3. Definitions and glossary / terminology

SCL Siemens Canada Limited.

ITCL Industrial Turbines Company (UK) Ltd

SEI Siemens Energy Inc.(Mount Vernon)

RFT Right First Time

PIR Problem Investigation Report

CMM Coordinate Measuring Machine



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RCA Root Cause Analysis

MRB Material Review Board

NCC Non Conformance Cost



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4. General guidelines for the application

The Concession/ Production Permit application is ONE file submitted as a PDF containing all the documents as listed below:-

a. Completed applications must contain two main pages (Page 1 and Page 3-

Signatures sheet) in addition to the supporting documents listed below. Page 2- Continuation sheet can be used number of times as required. Please Note: - Reformatting of the template is not allowed in any circumstances.

b. Photographic evidence (where required), e.g. Damage / false cut- photos and dimensions recorded on the photograph.

c. Confirm all CMM reports & Charts are attached. d. Salvage details- sketch and drawings where required- if reworked, give before

and after conditions. e. Other supporting documentation & dimensional data is supplied as deemed

suitable by the supplier. f. Completed 7 Step PIR or alternate as agreed with the Supplier Quality

Engineer prior to the submission of the application

All boxes shaded yellow in color chart requires completing by the supplier prior to the submission.

All boxes shaded green in color chart are filled in by certain suppliers but in general are not used and should be marked N/A by the supplier.

All details shall be legible- the document may be photocopied a number of times during its approval cycle, it must therefore reproduce on a photocopier and remain legible.

This application shall never be used to circumvent another facility of the Siemens Quality management System.

The application must be understandable to someone who has neither seen or knows the part but has a reasonable level of engineering knowledge.

All handwritten comments shall be avoided however if required must be fully legible and written in clear block capitals.



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One application shall be submitted covering:-

a. Same part number b. Different quantities c. Different dimensional deviations d. Supplier must submit RCA report using PIR template or alternative as

agreed by supplier quality contact covering each dimensional deviation.

Application type Declaration:- Ensure application type in the header of Page 1 shows applicable details. As an example: - Concession application will show PRODUCTION PERMIT/CONCESSION with Production Permit strike through and Vice Versa.

5. Application disposition results :-

Application when dispositioned i.e. approved or rejected shall be supplied to Vendor/Originator by the Supplier Quality Engineer responsible for the vendor account.

Dispositioned version of the application will contain comments under below listed positions. These shall be reviewed and complied.

Section 5 under MRB / Design Decision and Quality Decision, Bottom of Signatures page

5.1 Decision classified as REJECT: -

Reject do not classify the product as scrap, application will contain the reasoning behind Rejection. Any associated rework if applicable shall be completed in accordance with controls specified within the process specifications on the product definition or to an agreed rework procedure authorized by the Energy Business.

A concession re-submission as a result of an application rejected for lack of or poor information (non-compliance to these guidelines), shall be counted as a second and separate application and subject to separate concession NCC charges as per the Suppliers Quality Costs Brief.



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5.2 Decision classified as SCRAP:-

5.2.1 Supplier Owned Parts:-

Supplier shall permanently engrave these parts as SCRAP with associated Concession application number.

Supplier shall submit evidence (Photo) within 48 Hrs. of receiving the Concession application to Siemens Supplier quality and purchasing contacts.

Supplier must scrap these parts as per internally defined process.

5.2.2 Customer Owned Parts:-

Supplier shall permanently engrave these parts as SCRAP with associated Concession application number.

Supplier shall submit evidence (Photo) within 48 Hrs. of receiving the Concession application to Siemens Supplier quality and purchasing contacts confirming ownership of the parts.

Supplier shall wait for the scrap authorization form from Siemens prior to scrapping the parts

5.3 Categories of the dispositioned application:-

5.3.1 Category 1 (Cat1):-

Category 1 is classified as Major non-conformance and will not normally be accepted unless in exceptional circumstances. A Unique number will be issued to all concessions identified as Cat1. The purpose of this number is to allow the specific requirements, and area which holds the original data, to be quickly identified. The method and location of marking shall be in accordance with finished drawing requirements. If its different to finished drawing requirement, the method will be covered by the disposition on the application. Supplier release notes for the product delivered shall be clearly endorsed with the applicable concession application and concession numbers.



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An example of the marking on the product is:-


Category 2 is classified as Minor non-conformance. A Unique number will be issued to all concessions identified as Cat2. The purpose of this number is to allow the specific requirements, and area which holds the original data, to be quickly identified. The method and location of marking shall be in accordance with finished drawing requirements. If its different to finished drawing requirement, the method will be covered by the disposition on the application. Supplier release notes for the product delivered shall be clearly endorsed with the applicable concession application and concession numbers. An example of the marking on the product is:-



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Category 3 is classified as Minor non-conformance. A Unique number is not issued for this category of components Supplier release notes for the product delivered shall be clearly endorsed with the applicable concession application and concession numbers.

6. Submission of the completed application

Email Addresses to submit Concession/ Production Permit application

Inboxes Applicable facility

[email protected]

Siemens Canada Limited SCL, Industrial Turbines Company (UK) Ltd ITCL

[email protected]

Siemens Energy Inc.(Mount Vernon) United

States

7. Withdrawal of the submitted application Application can be withdrawn by sending an email to the submission inbox covering the reason for withdrawal.

mailto:[email protected]:[email protected]



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8. Supplier Quality Team at Siemens Canada ( Process Support)

Name Title Email Address

Cristina Curceanu

Supplier Quality Manager [email protected]

Hamidreza Mehrizi

Supplier Quality Specialist [email protected]

Amrit Singh


Majid Shakeel


Liliana Bonillaguillen


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9. Top Level view of application flow

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10. Color Chart and instructions on how to fill the form :- Page 1

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Color Chart- Page 2 (Continuation Sheet)

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Production Permit / Concession form guidelines

RFT: Yes/No

Supplier Name: Vendor Code: Date: / /

Concession / Production Permit application - Continued

Box

Ref

Form Requirement Acceptable entries / Guidelines Acceptable Action required

1 Correct Form - Supplier to use deviation / concession document in non-colored WORD format

Yes/No Correct and re-submit,

Accepted only for this application.

1.1 Identification of Customer - Insert Siemens AGT Yes/No Correct and re-submit,

Accepted only for this application.

1.2 Identification of supplier/

subcontractor

- Strikethrough Supplier or Subcontractor (as applicable)

- Add Unique Vendor Code and Supplier Name


Accepted only for this application

1.3 Document reference

number

- Supplier # = Unique supplier reference

- Customer # = No Supplier input required

N/A N/A

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Box

Ref


1.4 Document Issue: - Leave Blank N/A N/A

1.5 Category: - Leave Blank N/A N/A

1.6 Number of sheets: - Ensure that the sheet numbers are marked on

all the sheets of the concession i.e. Sheet 1 of X etc.



2.1 Model of

product/program:

- Fill this section by obtaining info from the drawing. The drawing will show Engine type this part is used on.

Yes/No Correct and re-submit


2.2 Part number: - The concession must have only 1 part number on it, if a concession applies to a family of parts, then 1 concession application is required per part number.



Drawing issue: - The drawing issue number / letter must be added to the issue box.



2.3 Part Description:

- The part description must be as per the Engineering drawing or specification.



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Box

Ref


2.4 Part Serial

number/Batch/Effectivity

Number/Lot Number:

- Supplier to identify the serial number or lot number affected by the non-conformance. If multiple serial numbers apply, enter Various and list all serial numbers in box 3.1.



2.5 Quantity - The supplier is to identify the quantity of parts

affected (Note 2). Yes/No Correct and re-submit


2.6 Product Number: - Product number, the supplier should enter N /

A. Unless for example non-conformance is on a lower level / sub level part number (i.e. Forging / casting) in which case, insert the sub level part number.



2.7 Work/Purchase Order

Number:

- The Siemens ADGT purchase order number is to be applied to the concession.

Yes/No - Correct and re-submit

- Accepted only for this application

2.8 Assembly Serial

Number:

- If the component is part of an assembly (Note 3) then the assembly serial number is to be inserted, if not, then N / A should be added to this box.



2.9 Assembly Drawing

Number:

- If box 2.8 contains a serial number, the assembly drawing number is to be added to box 2.9



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Box

Ref

Form Requirement Acceptable entries / Guidelines Acceptable

Action required

3 DESCRIPTION OF NON-CONFORMITY

3.1 Detailed description of

the non-conformity

- Nothing is to be added to box 3.1 itself. All details of the non-conformance are to be tabulated in the larger box below (Note 4)



- All details of the non-conformance are to be tabulated in accordance with Note 4.



Previous submissions

of similar nature

- The supplier shall declare all previous submissions of deviation permits / concessions for the given part number and or similar part numbers. (Note 5). If none apply then NONE should be inserted.



Previous submissions

to actual item

- All deviation permits / concessions applicable to the specific part or serial number for which the application has been submitted are to be declared here (Note 5).

- If none apply then NONE should be inserted.



4 Description of Cause/

Corrective Action

- Insert PIR reference number. Yes/No - Correct and re-submit


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Box

Ref


5 DISPOSITION OF NON-CONFORMITY

5.1 MRB/Design Decision:

Quality Decision :

- Leave Blank N/A N/A

5.2 Limitations imposed on

the part:

- Leave Blank N/A N/A

6 Originator - The representative from the supplier shall print their name, sign the concession and add the date of submission.



7 Distribution List: - Leave Blank N/A N/A

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Specific Notes:

Note Description

1 - The concession / production permit shall be submitted by the supplier in receipt of the Siemens ADGT purchase order (i.e. first-tier supplier).

2 - A concession is a documented event of non-conformance identified once the part has been manufactured; it usually covers one part or a batch of parts.

- A concession/ production permit is usually a premeditated intent to make a part away from the requirements defined in the drawing or specification prior to manufacture. For a deviation permit, box 2.5 shall contain a quantity.

- NOTE: Prior to raising a permit the duration of the non-conformance shall be established and the corresponding number of parts defined.

3 - Box 2.8 and 2.9 affect design make suppliers of systems such as actuators where concessions are required for piece parts within the system as this affects the top level performance of the assembly.

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4 - Endorse box 3.1 on sheet 1 with See sheet 2 for details of serial numbers and non-conformance and enter the data on continuation sheet 2 and any additional continuation sheets as required.

Note 4A

- The description of the non-conformance should be comprehensive and detailed. Where necessary the description should be supported with pictures, sketches and engineering drawings, all should be annotated to justify their inclusion within the concession and which particular line item they address / detail.

- Example 1 allows the supplier to identify each line item of non-conformance that can be referenced within the rest of the concession and on the relevant PIR.

Note 4B

- When defining the non-conformance, the supplier should state the actual dimension. For example, a dimension of 10,00 mm has a +/- tolerance of 0,10 mm and the part was made over size by 0,15 the form should read: Nominal Max Min Actual dimension.10,00 10,10 9,90 10,25

5 - Previous Submissions of a Similar Nature:

The supplier is required to provide a comprehensive list of previous concessions submitted, where a similar error has

occurred, against the part number concerned, predecessors of the part number concerned. The supplier should quote

Siemens AGT ref number (Customer #:)

Previous Submissions to Actual Item:

The supplier is to provide a list of all previously submitted deviation permit /concession applications made against the

specific part covered by the application. The supplier should quote the relevant Siemens AGT ref number (Customer # :)

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11. Production Permit / Concession form Template

Please double click on the Icon to open the template

Or

Right Click on the Icon to save embedded file to the Disk.

Template Icon

PRODUCTION PERMIT/CONCESSION

Customer ATLAS Ref. :

1.DOCUMENT IDENTIFICATION

1.1. Identification of customer: Siemens AGT

1.3. Supplier Document reference number :

1.5. Category:

1.2. Identification of supplier/subcontractor:

1.4. Document Issue:

1.6. Number of sheets:

Sheet of

2. IDENTIFICATION OF PRODUCT AFFECTED

2.1. Model of product/program:

2.2. Part number:

Drawing Issue

2.4. Part Serial Number/Batch/Effectivity Number/Lot Number:

2.5. Quantity:

2.8. Assembly Serial Number:

2.3. Part Description:

2.6. Product Number:

2.7. Work/Purchase Order Number:

2.9. Assembly Drawing Number:

3. DESCRIPTION OF NON-CONFORMITY

3.1.Detailed description of the non-conformity

5. DISPOSITION OF NON-CONFORMITY

Serial Number

Qty.

DWG Ref.

Sheet / Loc.

Defect Characteristics / Specified Requirements

5.1. MRB/Design Decision:

Quality Decision :

NOMINAL

MAX.

MIN.

ACTUAL DIMENSION

Previous Submissions of a similar nature:

Previous Submissions to actual item:

4. DESCRIPTION OF CAUSE/CORRECTIVE ACTION:

5.2. Limitations imposed on the part:

COMPLETE BELOW FOR CATEGORY 1 CONCESSIONS ONLY

Are any of the following adversely affected?

Material Structure of Properties:Yes / No

Life:Yes / No

Interchangeability:Yes / No

Functioning or Reliability:Yes / No

Maintainability:Yes / No

Suitable for Spares:

Yes / No

HEALTH & SAFETY AFFECTEDYes / No

Effect to Customer on Cost / DELIVERY:Affected / Not Affected

6.

ORIGINATOR

DESIGN

QUALITY

Name:

Signature:

Date:

7. DISTRIBUTION LIST :

Continuation Sheet..

3. DESCRIPTION OF NON-CONFORMITY

3.1.Detailed description of the nonconformity

5. DISPOSITION OF NON-CONFORMITY

Serial Number

Qty.

DWG Ref.

Sheet / Loc.

Defect Characteristics / Specified Requirements

5.1. MRB/Design Decision:

Quality Decision :

NOMINAL

MAX.

MIN.

ACTUAL DIMENSION

Page 1

Page 2

z003f72yFile Attachment

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12. Change History

Revision Date Description of Change Owner Author

1 Nov 2015 This document is an initial issue of Siemens Energy, Inc.

Quality Requirements

Supplier Quality Amrit Singh

2 May 2016 Clarified method of opening the template on Page 16 Added

a note on Page 1- Point 1A:- Reformatting of the template not

allowed


3 Dec 2016 Added - Content section, Category of dispositioned

application, Supplier Quality team, Flow of the Process


4 Feb 2017 Concession Template revised Supplier Quality Amrit Singh

supplier quality faq

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