Supplier Board

Determining the key figures concerning delivery performance and quality

Information for Suppliers of ZF Friedrichshafen AG

Dear Madam/Sir,

In order to better assess your supply quality of production materials (incl. aftermarket), ZF has introduced, in addition to the "PPM complaint rate", a new Q-KPI (Quality Key Performance Indicator) "Number of Complaints" and "Supplier Nonconformity Costs". Furthermore the complaint source and the severity of the complaints will be evaluated. On the following pages of this document, you will find the exact definitions and counting methods of these key figures. If you have any further questions concerning this, please get in touch with your contacts in the Purchasing and Quality departments.

Special note to Division A (the former TRW Automotive) suppliers:

The definitions of complaint source and severity detailed below mimic the practice currently in place within the Vendor Information Network (VIN) with only minor semantic differences