PRODUCTION PERMIT/ CONCESSION FORM GUIDELINES
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1 PRODUCTION PERMIT/ CONCESSION FORM GUIDELINES Issue 05 9 th April 2018 A white paper issued by: Siemens. Siemens AG All rights reserved
2 Contents 1 Purpose 3 2 Scope of Applicability 3 3 Definitions and glossary / terminology General guidelines for the application Application disposition results Decision classified as REJECT 5.2 Decision classified as SCRAP Supplier Owned Parts Customer Owned Parts 5.3 Category of the dispositioned application Category Category 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 Color Chart and instructions on how to fill the form Production Permit/Concession Form template Change History 22 A white paper issued by: Siemens. Siemens AG All rights reserved
3 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 ITCL SEI RFT PIR CMM Siemens Canada Limited. Industrial Turbines Company (UK) Ltd Siemens Energy Inc.(Mount Vernon) Right First Time Problem Investigation Report Coordinate Measuring Machine A white paper issued by: Siemens. Siemens AG All rights reserved
4 RCA MRB NCC Root Cause Analysis Material Review Board Non Conformance Cost A white paper issued by: Siemens. Siemens AG All rights reserved
5 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. A white paper issued by: Siemens. Siemens AG All rights reserved
6 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 Supplier s Quality Costs Brief. A white paper issued by: Siemens. Siemens AG All rights reserved
7 5.2 Decision classified as SCRAP: 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 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: 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 it s 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. A white paper issued by: Siemens. Siemens AG All rights reserved
8 5.3.2 Category 2 (Cat2):- 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 it s 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 Category 3 (Cat3):- 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 Addresses to submit Concession/ Production Permit application Inboxes adgtconcessions.energy@siemens.com Applicable facility Siemens Canada Limited SCL, Industrial Turbines Company (UK) Ltd ITCL mtvsupplierquality.energy@siemens.com Siemens Energy Inc.(Mount Vernon) United States A white paper issued by: Siemens. Siemens AG All rights reserved
9 7. Withdrawal of the submitted application Application can be withdrawn by sending an to the submission inbox covering the reason for withdrawal. 8. Supplier Quality Team at Siemens Canada ( Process Support) Name Title Address Cristina Curceanu Supplier Quality Manager cristina.curceanu@siemens.com Hamidreza Mehrizi Supplier Quality Specialist hamidreza.mehrizi@siemens.com Amrit Singh Supplier Quality Specialist amritpal.singh@siemens.com Majid Shakeel Supplier Quality Specialist majid.shakeel@siemens.com Liliana Bonilla guillen Supplier Quality Specialist liliana.bonillaguillen@siemens.com Mohamed Mesroua Supplier Quality Specialist mohamed.mesroua@siemens.com Hossein Heidariroshani Supplier Quality Specialist hossein.heidariroshani@siemens.com A white paper issued by: Siemens. Siemens AG All rights reserved
10 9. Top Level view of application flow 10
11 10. Color Chart and instructions on how to fill the form :- Page 1 11
12 Color Chart- Page 2 (Continuation Sheet) 12
13 Production Permit / Concession form guidelines RFT: 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 Correct and re-submit, Accepted only for this application. 1.1 Identification of Customer - Insert Siemens AGT 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 Correct and re-submit, Accepted only for this application 1.3 Document reference number - Supplier # = Unique supplier reference - Customer # = No Supplier input required N/A N/A 13
14 Concession / Production Permit application - Continued Box Ref Form Requirement Acceptable entries / Guidelines Acceptable Action required 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. Correct and re-submit, Accepted only for this application 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. Correct and re-submit Accepted only for this application 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. Correct and re-submit Accepted only for this application Correct and re-submit Accepted only for this application Correct and re-submit Accepted only for this application 14
15 Concession / Production Permit application - Continued Box Ref Form Requirement Acceptable entries / Guidelines Acceptable Action required 2.4 Part Serial number/batch/effectivity Number/Lot Number: 2.5 Quantity 2.6 Product Number: 2.7 Work/Purchase Order Number: 2.8 Assembly Serial Number: 2.9 Assembly Drawing 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 The supplier is to identify the quantity of parts affected (Note 2). - 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. - The Siemens ADGT purchase order number is to be applied to the concession. - 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. - If box 2.8 contains a serial number, the assembly drawing number is to be added to box 2.9 Correct and re-submit Accepted only for this application Correct and re-submit Accepted only for this application Correct and re-submit Accepted only for this application - Correct and re-submit - Accepted only for this application - Correct and re-submit - Accepted only for this application - Correct and re-submit - Accepted only for this application 15
16 Concession / Production Permit application - Continued Box Ref Form Requirement Acceptable entries / Guidelines Acceptable Action required 3 DESCRIPTION OF NON-CONFORMITY 3.1 Detailed description of the non-conformity Previous submissions of similar nature Previous submissions to actual item 4 Description of Cause/ Corrective Action - 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. - 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. - 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. - Insert PIR reference number. - Correct and re-submit - Accepted only for this application - Correct and re-submit - Accepted only for this application - Correct and re-submit - Accepted only for this application - Correct and re-submit - Accepted only for this application - Correct and re-submit - Accepted only for this application 16
17 Concession / Production Permit application - Continued Box Ref Form Requirement Acceptable entries / Guidelines Acceptable Action required 5 DISPOSITION OF NON-CONFORMITY 5.1 MRB/Design Decision: Quality Decision : 5.2 Limitations imposed on the part: - Leave Blank N/A N/A - 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. - Correct and re-submit - Accepted only for this application 7 Distribution List: - Leave Blank N/A N/A 17
18 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. 18
19 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, 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 # :) 19
20 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 20
21 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 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 Supplier Quality Supplier Quality Amrit Singh Amrit Singh 3 Dec 2016 Added - Content section, Category of dispositioned application, Supplier Quality team, Flow of the Process Supplier Quality Amrit Singh 4 Feb 2018 Concession Template revised Supplier Quality Amrit Singh 5 April 2018 Category marking examples removed Supplier Quality Amrit Singh 21
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