DNEA Special Terms 2010.pdf

The Special Terms 2010 (related to OM 457 parts supply) Daimler North East Asia Ltd. herein referred to as DNEA - Preliminary - 2 Table of Contents: 1. General Logistics Terms 5 1.1. General 5 1.1.1. Availability of contacts 5 1.1.2. Decision-making authority for special measures. 5 1.2. Stock keeping/material buffering and shipping 5 1.3. Ownership 6 1.4. Emergency plan 6 1.5. Requirements in the event of technical changes and new parts 6 1.6. Supplier Readiness. 6 1.6.1. Self-Assessment. 6 1.6.2. Logistics Process Analysis (LPA). 6 2. Delivery Call-off 8 3. General Packaging Regulation 9 3.1. General 9 3.2. Ownership of package and package payment. 9 3.3. Package definition 9 3.3.1. Package design and approval 9 3.3.2. Package improvement and redesign . 11 3.3.3. Package identification. 11 3.3.4. One-way package . 12 3.3.4.1. Standard dimension 12 3.3.4.2. One-way package supplier 13 3.3.4.3. Package test. 13 3.3.5. Returnable package 14 3.3.5.1. Standard dimension 14 3.3.5.2. Requirement planning and requirement determination 14 3 3.3.5.3. Liabilities and control of supplies for returnable packaging. 14 4. Shipment of Goods16 4.1. General 16 4.1.1. Deliveries in accordance with Incoterms 2000 Ex works or Free Carrier (forwarder designated by DNEA) 16 4.1.2. Deliveries in accordance with Incoterms 2000 Delivered Duty Paid (forwarder designated by supplier) 16 4.1.3. Goods with target time (Only for case of emergency or JIS transports) 16 4.1.4. Shipping/transport disturbances 16 4.1.5. Excess/prior deliveries. 16 4.1.6. Weight and volume determination. 17 4.1.7. Information obligation. 17 4.1.8. Shipment of hazardous goods. 17 4.1.9. Driving bans 17 4.1.10. Return goods 17 4.1.11. Stock taking on inventories 17 4.2. Types of Shipping. 18 4.2.1. Truck shipment. 18 4.2.2. Rail or sea shipments 18 4.3. Shipment Processing 18 4.3.1. Notification. 18 4.3.2. Provision. 19 4.3.3. Shipping order/waybill. 19 4.3.4. Goods labels. 19 4.3.5. Loading. 19 4.3.6. Processing times 20 4.3.7. Proof of delivery 20 4 4.3.8. Extra tours 20 4.3.9. Production supply. 20 4.3.10. Delivery note 20 5. Just In Sequence (JIS) Process22 5.1. General 22 5.2. Requirements for supplier sequence procedure 22 5.2.1. Release of sequence information 22 5.2.1.1. Requirements of data transportation. 22 5.2.1.2. Content of release (according to last EDI released information) 22 5.2.2. Working hours 23 5.2.3. Area of JIS facility . 23 5.2.4. Packaging (consult packaging special terms) 23 5.2.5. Transportation for sequence. 23 5.2.6. Equipment requirements and in house representative. 23 5.2.7. Management of stock buffer. 24 5.2.8. Responsibilities. 24 5.2.9. Ownership transfer. 24 5.3. Documents provided by supplier 24 5.3.1. Process concept. 24 5.3.2. Emergency concept 25 6. Communication with DNEA.26 6.1. Communication via EDI 26 6.2. Delivery note recording via the internet as an alternative to classic-EDI 26 6.3. EDI training 27 5 1. GENERAL LOGISTICS TERMS 1.1. General The supplier must meet the logistics requirements for ensuring supply security. The requirements are minimum standards which are binding for all suppliers and must be fulfilled by the start of series delivery. 1.1.1. Availability of contacts DNEA assumes that during the working times specific to the DNEA plant (in all shift models) the supplier will provide a competent contact that is fluent in English and Chinese with the necessary decision-making competence in Logistics. Outside these working times the supplier must have emergency phones installed and notify the DNEA of this availability. The supplier's stand-in arrangement for the DNEA must be sufficiently ensured by a competent employee and communicated to the DNEA. The supplier is also required to provide a logistic organizational chart, including a description of responsibilities. 1.1.2. Decision-making authority for special measures The supplier must clearly specify the decision-making authority on the initiation of special measures (e.g. special transports, etc.), including the stand-in arrangement. The supplier must provide a process description for the initiation implementation of special measures The supplier must verify implementation of these measures at all times and communicate them to DNEA. 1.2. Stock keeping/material buffering and shipping Storage of Raw and Finished Materials The supplier must specify the amount of finished goods stock depending on the supply frequency and the internal batch size. The supplier must stock raw materials in sufficient quantities depending on the replacement lead time. 6 The supplier must be able to demonstrate his current level of finished goods on hand in a transparent manner. The supplier must ensure FIFO and unique identification of all materials throughout all processes. 1.3. Ownership The ownership for warehouse deliveries (non-JIS) will be transferred to DNEA when DNEA warehouse confirms the receipt of it. 1.4. Emergency plan In order to ensure a smooth production process and supply to the DNEA site, the supplier must work out emergency concepts, discuss them with all parties involved, publish them and continually update them. For analyzing the processes, the supplier must employ the FMEA method (failure mode and effects analysis). Urgent delivered parts are also handled via the warehouse. The supplier must ensure that means of transport is available for repeat orders. 1.5. Requirements in the event of technical changes and new parts Information Flow between the DNEA and the Supplier If the supplier is notified of technical changes or new parts, the Logistics department of the DNEA plant is to be contacted immediately by the supplier. 1.6. Supplier Readiness 1.6.1. Self-Assessment After placement of business, suppliers may receive a self-assessment questionnaire regarding the required basic logistics planning concepts. The suppliers internal delivery concept planning will be evaluated accordingly. Supplier will be expected to fill out this document, add some additional documents (e.g. concept slides, etc.), and return the document to DNEA. 1.6.2. Logistics Process Analysis (LPA) LPA is a detailed Logistics Process Analysis which will be accomplished by DNEA at the supplier's production facility. Its used generally in the launch and ramp-up phase highlighting logistics and manufacturing processes on part level. The LPA may result in corrective action 7 having to be implemented for which measurement criteria will be agreed between supplier and DNEA. The LPA will be conducted on Management Level for which advance notification will be given. Each supplier has to arrange LPAs with his sub-supplier. If necessary the supplier can ask DNEA logistics for support regarding the LPA methodology only. 8 2. DELIVERY CALL-OFF DNEA's parts requirements are calculated using a mechanical process and are electronically transmitted, per item, in the “delivery call-off“ form via electronic data transmission (classic EDI) or via EDI-web, only in exception via FAX. The form fields defined in the following correspond to ODETTE recommendation. The classic EDI procedure has to be used by JIS suppliers, besides; non-JIS-suppliers who would like to use classic EDI may use it. The contents of delivery note for the call off are to find in the EDI handbook. The required quantities are allocated to precise calendar days over a short-term period 3 months including 1 month finished goods, 2 months raw material. Besides that, there are still 6 months forecast, which serve only information purposes. These daily deadlines must be adhered to as input deadlines. Required quantities must only be delivered on the basis of the latest delivery call-off. In the event of full or partial annulment of order quantities, DNEA undertakes the purchase commitment for the ordered product (one month) and the raw material (two months) from the last call-off. Delivery call-off confirmation is not necessary, as DNEA assumes that the specified requirement quantities and delivery dates will be adhered to. In exceptional cases, requests for changes are to be immediately discussed and agreed with the materials scheduling unit in charge and, where appropriate, confirmed using a copy of the call-off. If the supplier is unable to meet the delivery deadline, it is obliged to notify DNEA logistics department. As the required quantities are calculated on the basis of the incoming goods sequence number, it is vital that the supplier check the plausibility of the delivery sequence number of the most recent delivery call-off and that the responsible material requirement planner be informed immediately in the event of differences. DNEA must inform the supplier of changes regarding the required quantity forecast in the DELFOR (delivery call-off). If the supplier, relying on notification of the forecast, required quantity, has produced goods and DNEA's actual requirements have changed due to circumstances which lie within the scope of DNEA's risks. 9 3. GENERAL PACKAGING REGULATION 3.1. General The general packaging regulation defines the responsibilities for packages between the supplier's last delivery location/production facility and DNEA. DNEA distinguishes between one way and returnable packages. Within these groups DNEA differentiates small packages (KLT) and large packages (GLT). Furthermore DNEA defines standardized dimensions for both one-way packages and returnable packages which are described in detail in part 3.3.4 and 3.3.5. The supplier is allowed to use these packages for deliveries to DNEA only. 3.2. Ownership of package and package payment The supplier is responsible for planning, design and procurement regarding one way and returnable packages. For returnable packages the supplier is also responsible for maintenance and repair. The costs for package planning, procurement, maintenance and repair have to be calculated into the piece price by the supplier. DNEA will be the final owner of the packaging, after series all returnable packaging belongs to DNEA. 3.3. Package definition 3.3.1. Package design and approval The suppliers responsibility is to develop one way or returnable package proposal under consideration of cost-effectiveness and logistic process safety. The package design should insure part quality; also satisfy transportation, material flow, line side, stacking, loading, unloading and DNEA standard dimension, etc. It is allowed that there is only one type of part in each package. Approval are including following steps: a) Concept approval: As a first step the supplier has to present a quotation and package concept for one way and returnable package as an alternative which have to pass the DNEA logistics package approval process. 10 The package concept has to contain the following details: ? Two technical drawing and package description with and without parts as printout and as softcopy ? Inner and outer package dimensions (length, width, height) in mm ? Tare weight in kg ? Total weight (tare weight + part weight) in kg ? Maximum loading weight in kg ? Maximum superimposed load in kg ? Parts per package ? Used material for main package components. ? Calculated parts per standard planning truck with the inner dimensions 12.3 m x 2.3 m x 2.3 m. ? Confirmation of supplier that ESD (Electrostatic discharge), anti dust protection, anti theft protection, anti explosion protection are considered if necessary. ? The amount of inlay and the amount of part each inlay ? Operation instruction of returnable package b) Package sample approval: In a second approval step the package sample has to be provided and sent by the supplier to DNEA (costs borne by the supplier) four month before start of production at the latest. Supplier must follow the time schedule provided by DNEA. The package sample has to contain the following details: ? Package with parts (rejected parts allowed) filled according to the approved packing pattern ? Layers, foams, grids, foils and any other packing material which will be used for serial deliveries ? Package material specifications ? Package identification (see below in part 3.3.3) 11 After sample release DNEA will authorize the supplier to start the serial package procurement. The serial packages including parts have to be delivered to DNEA for the start of production test one if required by DNEA. In the serial phase the supplier must use the approved package, and pack according to the approved package concept. In case of any not agreed package and package concept deviations in the serial phase, DNEA will charge the supplier for all expenses. 3.3.2. Package improvement and redesign If it is necessary to change the package concept, the supplier is required to follow the direction of DNEA. For any recommendation regarding design of concept change the supplier must first get approval from DNEA. 3.3.3. Package identification Package identification is including package information and package mark. In general the package information is on the logistic label. The label is printed by EDI system. According to requirement of DNEA the supplier has to equip every package and loading unit with printed DNEA standard label on the outside package. Package mark is the identification and coding of package and package material. In addition to that every metal and wooden returnable package requires two metal plates for identification. The metal plates have to contain the following information: ? DNEAs name or logo ? Suppliers name ? Package number ? Maximum loading weight ? Maximum superimposed load in kg ? Tare weight ? Year of package production ? The same package number has to be printed on the returnable package. ? The color of returnable package is according to direction of DNEA. 12 For carton of one-way package identification the following information has to be printed on both front and back sides of each package: ? Package number ? Maximum loading weight ? Maximum stacking factor ? Tare weight ? Year of package production 3.3.4. One-way package The suppliers responsibility is to define the amount of one-way packages which are needed to deliver parts to DNEA according to DNEA production volume. 3.3.4.1. Standard dimension DNEA established standardized one-way package types with standardized dimensions which the supplier has to use. If a part does not fit into the standardized one way packages it is permitted to use other dimensions as an exception. However DNEA must approve the exception. These dimensions of the packages are described in Table 1. The supplier will be informed in case of changes. 13 Table 1: One-way package dimensions 3.3.4.2. One-way package supplier DNEA will make a frame contract with one-way package suppliers who are able to fulfill the DNEA requirements regarding one-way package (pallet and cardboard box) dimensions and quality. The frame contract will not include one way layers, grids, foams etc. The frame contract will be valid for all suppliers who are allocated as a part supplier f