Fourth Edition | November 2022

Global Supplier Quality Manual

Allison Transmission is the world’s largest manufacturer of commercial-duty automatic transmissions
and a leader in electric hybrid propulsion systems. Our brand promise is to provide the most reliable andvalued propulsion solutions in the world to enable our customers to work more efficiently. In support ofour promise, we team with suppliers to provide high-quality products and services for our customers.
The purpose of this manual is to describe the process and requirements of suppliers doing businesswith Allison Transmission. This manual and Allison engineering design records detail customer-specificrequirements referenced in ISO-9001/IATF16949.
As a supplier to Allison Transmission, your commitment to meeting these requirements is vital to thecontinued growth and success of our mutually beneficial relationship.

Sincerely,

Christopher McCleland
Executive Director, Supplier Quality
and Development

The Allison Promise
Provide the most reliable and valued propulsion solutionsin the world to enable our customers to work more efficiently.

Quality
Customer Focus
Integrity

Innovation
Teamwork

The Allison Vision
Be the global leader in commercial-duty propulsion solutions
that improve the way the world works.

The Allison Quality Policy
Allison Transmission is committed to high-quality products andservices that generate customer enthusiasm. This goal will beachieved by executing and continuously improving the Allison
Quality Management System in support of the Allison Promise.

Table Of Contents
1. Scope .................................................................................................................................................... 3
2. Quality Systems Requirements........................................................................................................... 3
3. Forms And References......................................................................................................................... 4
4. Acronyms And Definitions.................................................................................................................. 6
5. Sourcing Process................................................................................................................................... 8
5.1. Potential Supplier Assessment (PSA)............................................................................................... 8
5.2. Best Practices.................................................................................................................................. 8
5.3. Technical Review............................................................................................................................. 9
6. Quality Planning................................................................................................................................. .9
6.1. Advanced Product Quality Planning (APQP).................................................................................... 9
6.2. Design Verification, Plan And Report (DVP&R).............................................................................. 11
6.3. GP-11 Pre-Production And Prototype Parts................................................................................... 11
6.4. Production Part Approval Process (PPAP)....................................................................................... 126.5. Master Part Samples..................................................................................................................... 13
6.6. Casting/Forging Layout/Scan Requirements.................................................................................. 13
6.7. Design Failure Modes And Effects Analysis (DFMEA)..................................................................... 13
6.8. Process Failure Modes And Effects Analysis (PFMEA)..................................................................... 13
6.9. Special Characteristics.................................................................................................................. 14
6.10. Pass Through Characteristics (PTC)............................................................................................. 16
6.11. Measurement System Analysis (MSA)...................................... ...................................................16
6.12. Tooling, Gages And Fixturing...................................................................................................... 17
6.13. Error Proofing............................................................................................................................. 17
6.14. Product Identification And Traceability........................................................................................ 17
6.15. Production Trial Runs (PTRs)........................................................................................................ 18
6.16. GP-12 Early Containment........................................................................................................... 19
6.17. Layered Audits........................................................................................................................... .21
6.18. Run At Rate................................................................................................................................ 22

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Table Of Contents Continued
7. Quality Management........................................................................................................................ 25
7.1. Product/Process Change Requests................................................................................................ 25
7.2. Sub-Tier Supplier Management.................................................................................................... 25
7.3. Process Control Plan Audits (PCPAs).............................................................................................. 25
7.4. Advanced Problem-Solving Methods............................................................................................ 26
7.5. Non-Conforming Product............................................................................................................. 26
7.6. Production Support Requirements................................................................................................ 26
7.7. Formal 8D Notifications................................................................................................................ 27
7.8. Special Processes.......................................................................................................................... 31
7.9. Continuous Improvement............................................................................................................. 32
7.10. Supplier Scorecards..................................................................................................................... 33
7.11. Cost Recovery Process................................................................................................................ 34
7.12. Controlled Shipping.................................................................................................................... 35
7.13. Allison Supplier Improvement Program (ASIP)............................................................................. 38
8. Control of Customer-Owned Tooling............................................................................................... 39
9. Packaging, Labeling, Preservation And Shipping........................................................................... 40
9.1. Packaging..................................................................................................................................... 40
9.2. Labeling ...................................................................................................................................... 40
9.3. Shipping ...................................................................................................................................... 40
9.4. Schedule Performance.................................................................................................................. 40
10. Revision History................................................................................................................................ 41

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1.

Scope

The Global Supplier Quality Manual applies to direct material suppliers to Allison
Transmission, Inc. (Allison).
Supplier responsibilities are defined in the Allison general terms and conditions and in this supplier quality
manual.
In the event requirements stated in this Supplier Quality Manual conflict with Allison’s General Terms And
Conditions, the General Terms And Conditions will take precedence.

2.

Quality Systems Requirements

Unless exempted by Allison, all providers of on-highway products and services directly to Allison Transmission must be certified to IATF16949. Suppliers of off-highway, service only and regional value-added services (VAS) parts shall be certified to at least ISO-9001. Suppliers shall submit a copy of their
Quality Management Systems certification to Allison at certsandreps@allisontransmission.com.
Allison Transmission utilizes Quality Issue Management (QIM) as the system to support many of its
supplier quality related processes. All direct material suppliers to Allison shall maintain a registration
profile to QIM. Instructions for registration are located on the Supplier Forms section at
www.allisontransmission.com.

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3.

Forms And References

AIAG Manuals
Note: Automotive Industry Action Group (AIAG) documents can be obtained by contacting AIAG. Documents can be ordered at aiag.org.
•

Advanced Product Quality Planning & Control Plan (APQP) Reference Manual•

FMEA Handbook (AIAG & VDA)•

Fundamental Statistical Process Control (SPC) Reference Manual•

Measurement Systems Analysis (MSA) Reference Manual•

Production Part Approval Process (PPAP) Manual

Allison-specific forms/procedures can be obtained at allisontransmission.com under the
supplier forms link.

Pre-Production/Prototype Forms
AT-1820

GP-11 Pre-Production/Prototype Procedure

AT-1826-1

GP-11 Supplier Warrant Of Material

AT-1827

GP-11 Pre-Production Prototype Container Label

AT-1828

GP-11 Pre-Production Prototype Part Tag

Supplier Quality Forms
AT-1411

Interim PPAP Form

AT-1927-02

APQP Timing Chart

AT-1927-05

Open Issues Template

AT-1927-13

Tech Review Checklist

AT-1927-14

Kickoff Meeting Checklist

AT-1927-16

Process Control Plan Audit

AT-1927-19

Manufacturing Feasibility Letter

AT-1927-30

Supplier Product Change Evaluation

AT-1927-66

I-ChartAT-1927-85

Impregnation Audit Procedure

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AT-1927-86

Heat Treat Approval Procedure

AT-1927-87

Allison Heat Treat Supplier Approved List

AT-1927-88

Heat Treat Certification Addendum

AT-1960-C3

Run At Rate Worksheets

AT-1804/1810 Supplier Piece Cost Breakdown Worksheet And Production Tooling Cost Line Up
AT-101522

QMS (Quality Management System) Waiver Form

AT-101659

IMDS Requirements

Transportation and Packaging
AT-0048

Production Trial Run (PTR) Label

AT-1387

PPAP Part Sample

AT-1700

Allison Packaging And Identification Requirements

AT-1703

Container Assumption

AT-1724

Shipping Parts ID Label Standard

AT-101658

Deviated Part Tag

AT-101106

Allison Transportation Routings (secured form; reference section 10.3)

AT-101370

Returnable Container – Dunnage Request

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4.

Acronyms And Definitions

AGSQ		
Allison Global Supplier Quality
AIAG		
Automotive Industries Action Group (Organization formed by General Motors,		Ford and Daimler-Chrysler to develop common standards and expectations
		for automotive suppliers)
APQP		
Advanced Product Quality Planning
ASN		
Advanced Shipping NoticeCI		Continuous Improvement OR Customer Impact
CIC		
Customer Impact CharacteristicCM		Commodity Manager
CMM		
Coordinate Measuring MachineCP		Control Plan
CQI		Continuous Quality Improvement (AIAG-based forms for best practices)
CS1		
Controlled Shipping Level One
CS2		
Controlled Shipping Level TwoCV		
Concept Validation
DEV		Deviation
DFMEA		Design Failure Modes And Effects Analysis
DFSS		
Design For Six Sigma
DMR		Defective Material Return
DOE		
Design Of Experiments
DR		Documentation Required Characteristic
DV		
Design Validation
DVP&R		Design, Verification, Plan And Report
EAU		
Estimated Annual Usage
EDI		Electronic Data Interchange
FMEA		
Failure Modes And Effects Analysis
FV		
Factory Validation
GD&T		
Geometric Dimensioning And Tolerancing
GP		
General Procedure
GSC		
Global Supply Chain
JIT		
Just In TimeKPC		Key Product Characteristic
LCL		
Lower Control Limit
LCR		
Lean Capacity Rate (Allison daily capacity requirement)
LSL		
Lower Specification Limit
MCR		
Maximum Capacity Rate (Allison maximum capacity requirement)
MRD		
Material Required Date

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MSA		
NBH		
OS		
PCP		
PCPA		PDC		PFEP		PFMEA		PLT		POCE		
PPAP		
PPM		
PQC		
PSA		
PSC		
PTC		
PTR		
PV		
QIM		
QMS		
R@R		
RFQ		
RMA		
RPN		
SC		
SCoC		SCR		SPCE		
SQ		
SQE		
TES		
TIS		
TMS		
TPS		
UCL		
USL		

Measurement Systems Analysis
New Business Hold
Opportunity Scenario
Process Control Plan
Process Control Plan Audit
Process Dependent Characteristic
Plan For Every Part
Process Failure Modes And Effects Analysis
Product Line Team
Process Of Concurrent Engineering
Production Part Approval Process
Parts Per Million
Product Quality Characteristic
Potential Supplier Assessment
Process Significant Characteristic
Pass Through Characteristic
Production Trial Run
Process Validation
Quality Issue Management
Quality Management System
Run At Rate
Request For Quotation
Return Material Authorization
Risk Priority Number
Standard Care Characteristic
Supplier Code of Conduct
Supplier Capacity Rate
Supplier Product Change Evaluation
Supplier Quality
Supplier Quality Engineer
Transmission Engineering Specification
Transmission Inspection Specification
Transmission Material Specification
Transmission Process Specification
Upper Control Limit
Upper Specification Limit

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5.

Sourcing Process

There are three components of the sourcing process that are performed prior to the final sourcing
decision and are critical to ensuring as-delivered part quality. These process steps are executed withcross-functional Allison teams.

5.1. Potential Supplier Assessment (PSA)
The PSA is an audit conducted at the potential supplier’s facility by cross-functional Allison representatives
and is utilized prior to the final sourcing decision. The PSA ensures Allison has confidence that the potential
supplier has the facilities, personnel, equipment and quality management systems to supply parts toAllison’s standards. The Supplier Quality Engineer (SQE) will notify the potential supplier that a PSA will be
conducted. Allison will perform the on-site assessment, summarize assessment results and submit to the
Commodity Manager (CM) and Supplier Quality Manager.

5.2. Best Practices
If an Allison Best Practice exists for the commodity, the supplier’s proposed process must be reviewed
for conformance. The supplier shall complete the Best Practice record and submit it to the SQE. Bestpractice reviews shall be completed prior to sourcing.

If the tier one or sub-tier suppliers will utilize a process that is covered by an AIAG CQI, the suppliershall perform a self-assessment to the appropriate CQI and provide those results to their SQE contact.

The following CQIs are currently available at AIAG.org:• CQI-9Heat Treat Assessment• CQI-11

Plating System Assessment• CQI-12

Coating System Assessment• CQI-15

Welding System Assessment• CQI-17

Soldering System Assessment• CQI-19

Sub-Tier Management• CQI-20

Effective Problem Solving Guide• CQI-23

Molding System Assessment• CQI-27

Casting System Assessment

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5.3. Technical Review
The Technical Review is a meeting attended by the supplier and various cross-functional Allison
representatives. The purpose of the meeting is to ensure all requirements in the request for quote(RFQ) package have been understood, and the supplier has potential to produce parts meeting
Allison requirements (any item related to the manufacturability of the part, including timing, design,
manufacturing capability, packaging, etc.).
The CM invites potential suppliers to Technical Review meetings. Technical Review meetings will typically
include multiple Allison functions, including but not limited to: Purchasing, Supplier Quality (SQ), GSC,
Manufacturing Engineering and Product Engineering.
The supplier should address topics related to timing, design capability (if applicable), manufacturabilityof the part as designed, traceability, validation, quality processes, capacity, packaging and transportation(Reference AT-1927-13). The required documentation shall include a completed copy of the Allison
Transmission commodity-specific best practices acknowledgment.
Open issues as a result of the Technical Review should be captured on form AT-1927-05, or equivalent.

6.

Quality Planning

6.1. Advanced Product Quality Planning (APQP)Suppliers must use an Advanced Product Quality Planning Process that follows AIAG standards andensures production readiness with parts that meet all of the product’s specifications.
Allison uses the AIAG APQP manual as its primary guidance to its suppliers. In some areas in which
Allison has additional requirements, Allison supplements the AIAG manual with additional tasks,
procedures and forms as detailed in Table One. Tasks are detailed within this manual. General
Procedures (GPs) and forms may be found at allisontransmission.com.

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Table One: Allison Supplement to AIAG APQP Requirements

APQP Activity

AIAG
Process?

Allison
Addition/
Requirements

Specific
Allison Form

1

Technical Reviews

No

Section 5.3

AT-1927-13

2

Purchasing APQP Assessment & Sourcing

No

Section 5.1, 5.3

3

Timing Charts/Open Issues

Yes

Section 5.1, 5.3

AT-1927-02
AT-1927-05

4Feasibility & Manufacturing
Assessment Letters

Yes

No

AT-1927-19

5

Flow Chart

Yes

No

No

6

DFMEA (Supplier Design Responsible)

Yes

No

No

7

Gage, Tool And Equipment Review

Yes

No

No

8

Pre-Production/Prototype (GP-11)

Yes

Section 6.3

AT-1826-1
AT-1827
AT-1828

9

PFMEA

Yes

Section 6.8

No

10

Process Control Plan

Yes

Section 6.9.6

No

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Early Production Containment (GP-12)

No

Section 6.16

No

12

PPAP

Yes

Section 6.4

AT-1387
AT-101249
TMS-70007
AT-1411

13

Run At Rate

No

Section 6.18

AT-1960-C2C3

14

Production Trial Run

No

Section 6.15

AT-0048

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During the APQP process, the supplier should:• Create and maintain an APQP Timing Chart and APQP Open Issues List
- Each APQP Timing chart must include key program deliverables and payment milestones.
• Maintain detailed planning to complete each program timing event on schedule• Develop recovery plans on issues impacting timing and drive the plan to stay on time for the program• Identify and communicate any changes to SQE; supplier must utilize APQP Open Issues List
to capture all issues, including lessons learned• Identify and communicate key timing and program issues with PPM and SQE
The intent of the APQP Timing Chart and the APQP Open Issues List is to provide an example of how
this information can be documented. An alternate format may be used as long as it contains the same
information, as a minimum.

6.2. Design Verification, Plan And Report (DVP&R)
If a DVP&R or validation plan is required either at the supplier location or at Allison, thoserequirements will be communicated to the supplier representative.

6.3. GP-11 Pre-Production And Prototype Parts
To support design verification, planning and reporting, the supplier may be asked to provide prototype
or pre-production parts. Allison’s definition of pre-production or prototype parts are those parts thathave not been PPAP approved. Procedure AT-1820 is located on allisontransmission.com under the
supplier forms link and describes the requirements for pre-production or prototype parts.
The supplier shall develop a pre-production or prototype control plan to ensure parts are
manufactured that meet the design record.
All pre-production or prototype parts containers shall be identified with labels AT-1827, and parts shallbe tagged with AT-1828.

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6.4. Production Part Approval Process (PPAP)
The purpose of production part approval is to determine if all Allison engineering design recordand specification requirements are properly understood by the supplier and that the process has thepotential to produce product meeting these requirements during an actual production run at thequoted production rate.
Suppliers are not approved to ship production material to Allison or its affiliates without at least aninterim PPAP approval.
The supplier representative should work with their Allison SQE to determine the PPAP level ofsubmission. Records to be submitted or retained by the supplier are defined by the submission level
and the AIAG PPAP manual.
Note: The supplier shall initiate a PPAP discussion with their SQE for any of the circumstances listed in the AIAG PPAP
manual, Section 3.
During PPAP, a bubbled print will be required with the dimensions identified that are affected by thereason for the PPAP. For new part PPAPs, all dimensions should be identified with a unique number on
the bubbled print. This print shall be used to provide (1) dimensions results, and (2) a control plan thatreferences each of the bubbled dimensions/requirements on the blueprint.
If the PPAP is not fully approved, it is the supplier’s responsibility to submit interim PPAP form AT-1411
to their SQE.
Allison utilizes an electronic PPAP submission system. The supplier representative shall obtain aregistered user ID and password and utilize the electronic system for all PPAP activity.

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6.5. Master Part Samples
The supplier shall retain a master sample for the same period of time as the PPAP records, or until
a new master sample is produced for the same part number for new approval.
The master sample shall be identified as such and shall show the customer approval dateon the sample.
The supplier shall retain a master sample for each position of a multi-cavity die, mold, tool or pattern.
When the part size or production volume makes storage of a master sample difficult, the retention
requirements may be modified or waived by the Allison SQE.

6.6. Casting/Forging Layout/Scan Requirements
Suppliers shall document the frequency of each casting/ forging layout or laser scan on eachproduction tool cavity in their control plan. If the casting/forging is provided by a sub-tier supplier,the tier one supplier to Allison is responsible for ensuring the layout/scan is performed by the sub-tiersupplier. The results of the layout at the supplier or its sub-tier suppliers shall be provided to Allison
upon request.
Other circumstances that would require at least a partial casting layout or laser scan include:• Design changes• Tool repair/replacement

6.7. Design Failure Modes And Effects Analysis (DFMEA)
If the supplier is design responsible, they shall utilize the DFMEA process. Documentation of the supplier
DFMEA will be a required input for PPAP approval.
Reference the AIAG & VDA FMEA Handbook for methods of prioritizing the reduction of risk andassigning the Risk Priority Number (RPN).

6.8. Process Failure Modes And Effects Analysis (PFMEA)
As a tool in risk evaluation, PFMEA is considered to be a method to identify severity of potential
effects of failure and to provide an input for mitigating measures to reduce risk.
Reference the AIAG & VDA FMEA Handbook for methods of prioritizing the reduction of risk andassigning the Risk Priority Number (RPN).
PFMEAs shall be developed for all process steps identified in the process flow, from receiving
to final shipment.

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6.9. Special Characteristics
Special Characteristics are the features or properties of a part, component or assembly described onengineering part drawings, in engineering specifications or in other primary engineering informationthat are likely to affect product quality, reliability, form, fit, function or customer satisfaction.

6.9.1. Customer Impact (CI)
Any characteristic identified by the customer as critical to their process or application is a Customer
Impact feature. These features are normally associated with vehicle assembly compatibility features.
Characteristic must be within the tolerance, and immediate dissatisfaction will occur if parts areoutside the tolerance.

6.9.2. Product Quality Characteristic (PQC)

PQC

A characteristic where the reasonably anticipated variation within specification (target or tolerance)
is likely to significantly affect safety, compliance with government regulations, fit, function or
customer satisfaction.
The supplier must show continuous improvement until process capability meets standards
defined below.

KPC (fit/function),
Note: Older engineering drawings may identify special characteristic types:
KCC Key Control Characteristics or S
TES 170 (critical features). The engineering drawings
will be updated over time to change these to PQCs. During the transition, these characteristics shallbe held to the requirements for PQCs outlined in this document.

6.9.3. Process Dependent Characteristic (PDC)
Process Dependent Characteristics cannot be defined physically (or are not readily measurable
in a non-destructive manner) and are a function of the process. The intent of this designation
is NOT to drive specific capability or documentation requirements, but rather to ensure that the
manufacturing process that generates certain features is not changed without notification andapproval from Product Engineering.
These features are designated by a black diamond, and an explanation will be documented on
the drawing. Examples: “Must hob and shave,” “Must grind,” etc. Note that defining a specificprocess on an engineering drawing should be the exception rather than the rule, and should only
be implemented where testing has shown that one process provides clearly better performance.

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6.9.4. Process Significant Characteristic (PSC)
Process Significant Characteristics are the part features or process parameters which are known
to have a significant impact on subsequent manufacturing operations and where reduced variation
or targeting will provide needed improvement in the capability of subsequent operations.

6.9.5. Documentation Required Characteristics (DRC)

DR

This characteristic designation appears on some Allison engineering drawings for parts that are
unique to General Motors. This designation is not recognized in Allison process documentationor control plans, and characteristics identified with the symbol on engineering drawings willbe treated as Standard Care Characteristics (unless deemed “Special” for some other reason).
Note: All part features not identified as “Special Characteristics” or “Process Dependent
Characteristics” are Standard Care Characteristics. This category represents most part features.

6.9.6. Capability And Monitoring Requirements
6.9.6.1 For Standard Care Characteristics
Capability requirements at PPAP for Standard Care Characteristics will be determined by
the SQE. There are no requirements for ongoing capability monitoring on Standard Care
Characteristics.

6.9.6.2 For Special Characteristics
All Special Characteristics shall be identified in the control plan with the appropriate symbol
placed adjacent to the characteristic on the verbiage sheet. See the definitions above for theappropriate symbols.
Special Characteristics must be specifically referenced in the PFMEA.
The supplier shall apply appropriate defect prevention and detection techniques to Special
Characteristics to ensure that variation is maintained or minimized around the target value.
Typically, this will be accomplished with a variable gage. Attribute gaging is acceptable, butshould be used with “safe limits” (80% gages) where practical.
A quality record is required for Special Characteristics. A quality record may be a variable control
chart or attribute check sheet.
Note: Characteristics inspected with a 100% post process gage with data storage of results
do not require an additional quality record. Mastering of the post process gage at least once
per shift should be defined in the control plan.

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Special Characteristics shall be held to the following capability standards (for characteristics
inspected with variable gaging):• Cpk and Ppk (or Cp,Pp if centering is not desired): 1.67 at PPAP
• Cpk and Ppk (or Cp,Pp if centering is not desired): 1.33 Ongoing
Capability studies will include at least 30 pieces, either from a consecutive run or at the gaging
frequency in the control plan.
Note: Reference Statistical Process Control from AIAG for a discussion of Ppk and Pp
calculations and definitions. Also, note the discussion of the use of these indices forunilateral tolerances. Special Characteristics shall be held to 100% pass for attribute gaging.
If during Product/Process development you believe there will be difficulty meeting the above
capability, you MUST immediately notify your SQE and develop a plan to assure complianceor obtain formal written approval to deviate from the capability requirements.

6.10. Pass Through Characteristics (PTC)
A Pass Through Characteristic is a part feature that is manufactured by a supplier to Allison
and will “pass through” Allison’s manufacturing and assembly process unverified. Pass ThroughCharacteristics that are customer interface features shall be error-proofed or 100% inspected by the
supplier. PTCs shall be identified during the Technical Review process.

6.11. Measurement System Analysis (MSA)
All families of gages referenced on the supplier’s process control plan shall be verified with an MSA
utilizing the AIAG MSA manual as guidance. MSA for gages on the supplier’s control plan will be
reviewed by the SQE during the PPAP.

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6.12. Tooling, Gages And Fixturing
The SQE may request a review of gage designs prior to the start of construction. Gage designs shallincorporate approved Geometric Dimensioning And Tolerancing (GD&T) datum schemes.
Gage designs for attribute gages used to monitor Special Characteristics should, where practical, be
designed to a maximum 80% tolerance.
Functional testing and final inspection shall ensure product performs as designed under actual vehicle
conditions or as performance is defined on the Allison design record (blueprint).

6.13. Error Proofing
Suppliers shall implement error-proofing strategies for the control of materials, processes and labelingfor all products provided to Allison. Suppliers shall implement error-proofing techniques to ensure
mistakes are detected and corrected before becoming a defect (i.e. make it impossible to produce
defective items even if an error occurs). Error-proofing requirements will be discussed at the pre-techreview, tech review and continued through APQP.
All error-proofing devices at the supplier shall have masters that the supplier utilizes at an appropriate
frequency to ensure the error-proofing device is functioning properly. Error-proof verification checks
with these masters shall be documented on a quality record by the supplier.

6.14. Product Identification And Traceability
A traceability scheme shall be developed. This scheme may include manufacturing date code, lot control
and part serialization. Items to be traced shall be determined during the APQP process and may also be
identified on the component or assembly design record.
Product shall be identified at appropriate steps during the supplier’s manufacturing and assembly process
and shall minimize the risk of mixed material.
The supplier shall identify all suspect material either by dedicated location or with identification tags.
Rejected material shall be identified, and a method should be utilized to ensure the rejected material
cannot be reintroduced into the manufacturing or assembly processes.

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6.15. Production Trial Runs (PTRs)
The purpose of the PTR is to determine if there is an unintended logistics, machining or assembly
impact caused by the item which has just been PPAP approved. The PTR is not an evaluation of the
supplier’s manufacturing process and/or its ability to capably produce parts within acceptable print
tolerances (this is what the PPAP is evaluating).
If a PTR is rejected and it is found to be due to features or variation outside of acceptable print
tolerances, the following consequences may occur:• Issuance of an Allison 8D• Revocation of PPAP approval• CS1 or CS2
The supplier is notified by Allison of the PTR requirement, quantity and timing. The supplier preparesand ships required quantity and labels according to AT-0048.

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6.16. GP-12 Early Containment
GP-12 Early Production Containment requires a pre-launch control plan that represents increased
inspection frequencies and redundant checks for targeted features compared to the supplier’s
production control plan and raises the confidence level to ensure all products shipped will meet
Allison’s requirements. The pre-launch control plan will also serve to validate the production control
plan. The pre-launch control plan should take into consideration all known critical conditions of thepart as well as potential areas of concern identified during PPAP. The purpose of GP-12 early
containment is to:• Validate the supplier’s production control plan
• Protect Allison’s assembly and manufacturing centers and service part warehouses from quality
non-conformances• Ensure any quality issues that may arise are quickly identified, contained and corrected
at the supplier’s location• Increase involvement and visibility of the supplier’s top management
The supplier shall work with the Allison SQE to define the duration of the GP-12 containment
and the characteristics that will be inspected. The GP-12 plan shall be documented in the Allison
Transmission quality system.The supplier shall designate a separate area in their facilities for the
GP-12 containment activity.

6.16.1. GP-12 Plan Development
The supplier shall establish a GP-12 plan that contains the following elements:•

Identification of the staff person responsible for ensuring the development and implementationof the verification process•

GP-12 entry date, exit criteria and exit date as defined by Allison•

Containment stations which must be off-line; separate and independent checks
from the normal manufacturing process and should be located at end of process.
In-process containment stations may be utilized and must be documented and approvedby the Allison SQE•

Additional inspections, testing and dimensional checks required at the GP-12 containment
station based on Special Characteristics, critical measurement points, high RPN or issues
identified during product and process development•

Trained personnel relative to the standardized work performed at the GP-12
containment stations•

An audit process of the GP-12 containment utilizing levels of management (layered audit),
including site leadership, to ensure conformance to the pre-launch control plan

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Data submission to the Allison SQE for all Special Characteristics and criticalmeasurement points•

An overall visual inspection of the part for gross manufacturing defects and general
workmanship (e.g., surface defects, cast defects, discoloration, omitted part features, etc.)•

Increased frequency of sample size from that stated in the production control plan•

Verification of packaging and label requirements, including service and accessory part
requirements, which may include country of origin labels on parts•

Verification of the effectiveness of error proofing•

Immediate implementation of containment and irreversible corrective action when a single
non-conformance is discovered in the GP-12 containment area or at the receiving location

6.16.2. GP-12 Required Documentation
The supplier shall document:•

The pre-launch control plan using the control plan format referenced in the AIAG APQP
reference manual. The pre-launch control plan is not a substitute for the production control
plan but is an addition to the production control plan and is used to validate it.

•

Inspection work instruction for the GP-12 containment station to ensure standardized work•

Evidence of execution and validation of the control plan utilizing the I-chart (AT-1927-66) orother format agreed upon by the Allison SQE. The SQE shall determine and communicate therequired reporting frequency for the I-chart data. The data must be readily available at any time
for review upon the SQE request.

6.16.3. Duration of GP-12
GP-12 must be implemented for a period of time or quantity of parts as agreed by the Allison SQE.
At a minimum, GP-12 will remain in effect as follows:•

30 days for the on-highway product lines•

The next two (2) production runs for all other product lines, as well as all service parts

GP-12 inspection is mandatory for 100% of all parts required during the GP-12 period.
Based on documented acceptable performance, which includes no issues identified at GP-12
or at Allison, the Allison SQE may approve a reduction of the 100% inspection requirements
after manufacturing validation builds at Allison. This must be documented and approved by the
Allison SQE.

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6.16.4. GP-12 Identification
To indicate compliance with the GP-12 requirements, attach to each shipping label a green
circular sticker, approximately 25mm in diameter, signed or initialed by the staff person
accountable for ensuring proper implementation of GP-12.

6.16.5. GP-12 Exit Criteria
The supplier will be eligible to exit GP-12 after validating the effectiveness of the Process Control
Plan and shipping the number of pieces required to meet production requirements as specified
by Allison for the GP-12 period with no problems identified in the GP-12 or at Allison. If the
supplier is unable to meet the exit criteria or the supplier’s GP-12 plan continues to identify nonconformances, the supplier shall continue the necessary containment measures to insulate Allison
until the quality concerns have been resolved to the satisfaction of both the supplier and Allison,and the supplier’s production control plan is validated.
If a problem is identified in GP-12 or at Allison, the duration restarts after corrective action is
implemented, and GP-12 must remain in effect for the specified amount of time as originallydesignated. If the GP-12 plan continues to identify non-conformances, it must be kept in place
until process controls and capabilities have proven effective, and the production control plan isvalidated.
Final exit of GP-12 will be completed by written acceptance of the final submission of the I-chart(AT-1927-66) or other document originally agreed upon by the Allison SQE.

6.16.6. GP-12 Consequences Of Shipping Non-Conforming Material:
Failure to execute GP-12 or shipment of non-conforming material during GP-12 may result inControlled Shipping Level 2 (CS2) and other possible consequences.

6.17. Layered Audits
A documented layered audit plan shall exist. Non-conformities shall be addressed immediately,
and corrective action shall be documented. The audit plan shall include multiple levels ofmanagement. Site leadership shall verify compliance to the documented plan.

21

Back To Top6.18. Run At Rate
The purpose of the Run At Rate is to verify that a supplier’s manufacturing process:••Is capable of producing quality components, systems or modules, as stated in the contract
Includes adequate tooling and is capable of producing the daily contracted production rate
in one production day (including scrap and unplanned downtime)

A Run At Rate may be requested in the following cases:••••

Production of new components/systems or modules
Change in existing capacity on previously contracted volume
Tool and equipment moves to new locations
Changes to existing processes where capacity of the system could be affected

6.18.1. Duration Of Run At Rate
The duration of the Run At Rate will be sufficient to verify that the process can meet the contracted
production rate. The default length of the Run At Rate will be equal to the supplier’s standard
daily work hours. However, the Allison SQE may deviate from the default duration after taking into
consideration the following factors:
•
•
•
•
•

Product complexity
Shelf life
Storage and packaging
Cost
Production day length

6.18.2. Timing Of Run At Rate
The Run At Rate should be performed after the supplier has attained a PPAP statusof “Full” or “Interim” and will be scheduled by the Allison SQE.

22

Back To Top6.18.3. Supplier Preparation For Run At RateTo ensure readiness before the formal Run At Rate is performed, it is recommended that the
supplier conduct a practice Run At Rate and communicate the results to the Allison SQE. The
supplier shall submit to Allison upon request:• AT-1810 (Production Tooling Costs)• Process Flow Diagram reflecting all internal assembly and sub component lines• AT-1960-C3 (Run At Rate Worksheets)
EAR/ITAR part-related Run At Rate documentation shall be retained by the supplier.

6.18.4. Required Run At Rate Participation And Coverage
Supplier Monitored
The lead supplier representative is responsible for ensuring that the Run At Rate is performed as
detailed in this requirement. The lead supplier representative or their designee must be present
during the entire Run At Rate.
Within 24 hours of completing the formal Run At Rate, the supplier must complete the Run At
Rate Worksheets (AT-1960-C3) and forward them to the Allison SQE.
Customer Monitored
Unless agreed to in advance by the Allison SQE, a representative from Allison is to be present for
the entire Run At Rate.
Equipment suppliers or subcontractors may be asked to participate in either Customer or Supplier
Monitored Run At Rates.
The supplier will not be deemed ready for a Customer Monitored Run At Rate until all required
documentation has been properly filled out and forwarded in advance to the Allison SQE.

6.18.5. Subcontractor/ Tier Two Run At Rate Requirement
Suppliers are required to ensure the capacity of their suppliers. Written confirmation of daily
contracted requirements, as well as actual system performance for quality, capacity and delivery,
must be provided to the Allison SQE upon request prior to the tier one Run At Rate.

6.18.6. Run At Rate Inventory
Finished inventory resulting from production runs to prepare for or complete a Run At Rate will be
the responsibility of the supplier. This inventory will be held until scheduled for shipment by Allison.

23

Back To Top6.18.7. Run At Rate Approval
During the Run At Rate, the supplier’s manufacturing process will be assessed to verify its ability tomeet the quality and capacity requirements as contracted and detailed in AT-1960-C3.
The Run At Rate will be assessed with one of the following results:
Pass
A status of “Pass” indicates that all Run At Rate requirements have been met and that thedemonstrated capacity is equal to or greater than the Lean Capacity Rate (LCR) in the Scheduling
Agreement.
• The AT-1960-C3 has passed• The subcontractors’ abilities to meet the capacity and quality requirements have been
confirmed in writing by the supplier• All parts produced meet Allison’s quality and packaging requirements
StagedA status of “Staged” indicates that the supplier is meeting the approved plan for the gradualintroduction of tooling, machinery or shifts required to meet the LCR.
FailA Status of “Fail” indicates that a non-conformance exists in AT-1960-C3 that requires action by the
supplier to correct, or the supplier failed to provide written confirmation of a subcontractor’s abilities
to meet the quality, capacity and delivery requirements.

6.18.8. Run At Rate Corrective Actions
Should the Run At Rate results fail to meet the requirements of this procedure for quality orcapacity, a corrective action plan must be submitted to and approved by the Allison SQE.
Upon full implementation of the corrective action plan, the Allison SQE will determine the methodof verification, which may require an on-site review or a new Run At Rate study.

6.18.9. Required Documentation for Submission and Retention
The supplier should retain original versions of AT-1960-C3 and submit copies
to the Allison SQE.

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7.

Quality Management

7.1. Product/Process Change Requests
The supplier shall formally notify Allison of any process, product or sub-tier supplier change (reference
AIAG PPAP Manual Table 3.1). Form AT-1927-30 (Supplier Product Change Evaluation, SPCE) shall be
used by the supplier to request any change. The supplier shall submit the SPCE to the appropriate Allison
Commodity Manager. Suppliers are not authorized to make product or process changes until the SPCE
has been reviewed and approved by Allison.

7.2. Sub-Tier Supplier Management
Suppliers are responsible for the management of their suppliers. Suppliers should utilize AIAG CQI-19 asa guide for sub-tier supplier management.
Suppliers shall certify parts and processes from their sub-tier suppliers via the PPAP process.
Any change in a sub-tier supplier to Allison must be communicated in advance with an SPCE, form AT1927-30.

7.3. Process Control Plan Audits (PCPAs)
PCPAs are comprehensive audits of the supplier’s processes and manufacturing system and will be
conducted by the Allison SQE. The purpose of the PCPA is to ensure the supplier is following the
documented process flow diagram and executing the current Process Control Plan (PCP). It is also toensure the supplier is maintaining and updating said documents, including process flow diagrams,
PFMEAs and Process Control Plans, while executing continuous improvement. AT-1927-16 is the form
for the audit and can be located at the Allison corporate website allisontransmission.com under the
supplier forms link.
The Allison SQE will provide notice prior to visiting a supplier to perform a PCPA. The results of the PCPA
will be presented by the Allison SQE after the completion of the PCPA. The supplier representative will be
asked to sign the cover sheet of the PCPA, and a formal follow-up date and audit will be scheduled forany items that do not meet Allison’s expectations.

25

Back To Top7.4. Advanced Problem-Solving Methods
Suppliers should have the capability to solve complex problems using advanced problem-solving
techniques, such as Design Of Experiments (DOE), Design For Six Sigma (DFSS), Shainin® Red X® and
Kepner-Tregoe®.

7.5. Non-Conforming ProductIn the event suspect or known non-conforming product has been or will be shipped, the suppliers
shall notify their Allison SQE in writing immediately. The SQE will work with the supplier as well as
the appropriate cross-functional personnel at Allison to review the non-conformity and determine if a
deviation can be authorized. In the event a deviation is authorized, the SQE will coordinate the formal
authorization with the supplier representative.
If a deviation is granted for the supplier to ship non-conforming material, the supplier shall mark allaffected shipments on the exterior packaging with deviated part tag form AT-101658 filled out.

7.6. Production Support Requirements
Upon request of SQ or Allison Plant, the supplier will provide on-site support during all pre-productionbuild phases and production activities.
The supplier shall designate a specific supplier representative that will support each production shift.
At a minimum, the supplier designate should have the responsibility to:•

Implement immediate countermeasures to contain discrepant parts and to confirm defective parts
are not shipped to an Allison plant•

Approve Allison requests for rework and sorting•

Coordinate and provide resources to rework and sort parts•

Provide sub-assemblies/components for required repair, as related to quality issues•

Provide clear information regarding any defective parts en route to an Allison plant, including how
to identify the defect and provide disposition guidelines•

Coordinate expediting and/or special delivery of certified parts

The supplier shall provide quality-related data (e.g., historic inspection, first time quality, reject data) toAllison upon request. This data may be required to determine trends and to determine root cause for
quality problems at Allison.

26

Back To Top7.7. Formal 8D Notifications
Allison will issue the supplier an 8D Notification if non-conforming material has been identified.
In addition, a formal 8D notification may be issued for the following conditions, but are not limited to:
•
•
•
•
•
•

Issues and concerns with the transportation and delivery of production parts or material to Allison
Issues and concerns related to the delivery of parts according to Allison provided schedule
Supplier responsible warranty for special cause concerns
Supplier responsible engineering design issues
Procedural or process non-conformity (e.g., failure to communicate in a timely fashion, failure tocomply to procedures, failure to meet deadlines)
Program management (i.e., timing, deliverables, execution)

Formal 8D notifications will be categorized based on their impact to the Allison business:•••

Category 1 – a quality defect that results in a disruption, an OEM or end-user complaint or atransmission reliability audit teardown reject
Category 2 – a quality defect that results in an assembly or manufacturing cell problem, where 		more than one part is involved in either the initial complaint or during the routine Allison 		
containment activity, or a repeat quality issue
Category 3 – a quality defect that results in an assembly or manufacturing cell problem where
only one part is involved, and no additional parts are identified during the routine Allison 		
containment activity

27

Back To TopFormal 8D reports will be required for Category 1 and 2 8D notifications. However, Allison reserves theright to request a formal 8D report for a Category 3 8D notification.
Notification of the issuance of a formal 8D will be emailed to the supplier representative identified inAllison’s SAP system. The supplier is expected to immediately begin containment activity for all 8Ds
as well as an 8D problem-solving root cause and corrective action for a Category 1 or 2 8D, or as
requested by Allison for a Category 3 8D. The supplier representative will be required to fill out the
web-based 8D problem-solving form. At the discretion of the plant Quality Manager, the supplierrepresentative will be required to submit the 8D, participate in a Fast Response teleconference toreview the 8D or attend an Allison on-site Fast Response review of the 8D. The supplier representative
will be notified which of the review options will be required.

7.7.1. Initial Supplier Response
The supplier shall provide an initial response consisting of the following:• Immediate and ongoing containment actions to prevent further shipments of non-conforming
parts or material. Containment shall include data collection and analysis.
• Rework or sorting as an immediate containment at each Allison location. Rework or sorting 		
may be performed by Allison, supplier or a third party company.
• Disposition of the non-conforming parts or material at Allison locations and in-transit.
The supplier must analyze the entire supply chain to identify any suspect material at any 		
supplier location or in-transit to any Allison location. This should be documented and supplied
to Allison via the containment summary worksheet in the 8D D3 step.
• Date of the next shipment of conforming parts or material, including how it will be identified.
The supplier must consider that the conforming material ship date should reflect all Allison 		
plants receiving the corrected parts or material.
• Name, title and phone number of the supplier representative who provided the above 		
information
The supplier shall promptly complete appropriate problem-solving activities. Examples include, but
are not limited to, capability studies, cause and effect diagrams and 5-Why analysis.

28

Back To Top7.7.2. Final Response
The final response should include:• Containment actions taken• Methods used to evaluate the success of containment actions taken• Root cause of the problem, including methods used to identify the root cause• Identification of corrective and preventive actions and target implementation dates• Elements of the proposed implementation process• Contact information of those assigned responsibility for actions taken• Verification method for the effectiveness of the proposed corrective actions• How the solution is to be institutionalized with respect to other similar processes and products• Dates when review process FMEA and Process Control Plan will be available. If no revisions were
made, then enter today’s date and make a note in the corrective action text field indicating thatno revisions were made.
• Identification of the responsible tier two supplier, if applicable. This does not absolve
the tier one supplier of any responsibility, but rather documents where the issue may
have originated.
Failure to respond, without prior notification, may result in additional formal 8D notifications, entryof the supplier into Controlled Shipping Level One or Two (CS1 or CS2), New Business Hold (NBH)
or entry into a supplier escalation program.

29

Back To Top7.7.3. Formal 8D Notification Appeal Process
The supplier may appeal the issuance of a formal 8D or specific information contained in the formal
8D notification. To appeal, the supplier shall provide objective evidence, in writing, to the issuinglocation demonstrating rationale for the appeal. The appeal shall be documented in the 8D.
Any request to change a formal 8D notification due to an error should be submitted within 15
business days of issuance of the 8D.
If the issuing location and the supplier do not agree and the supplier wants to pursue the appeal
further, the appeal should be directed to the applicable Supplier Quality Management, Materials
Management or Quality Management personnel for revision or deletion.

7.7.4. Containment Requirements
All non-conforming and suspect material must be controlled, and the method must be clearly
defined. All non-conforming material must be segregated and identified.
A list of every Allison plant or location the parts are shipped to, who was contacted at that facility
and what was done to protect them from the issue shall be documented in the containment
section of the 8D.

7.7.5. Containment, Response And Closure Requirements
The timing of initial containment, initial Root Cause And Corrective Action determination, and final
closure for the 8Ds, in target business days, are listed in the table below. “Target RC And CA”
represents the target, in business days, for the supplier’s initial Root Cause And Corrective Action
responses, while “Target Closure” represents the target for full implementation of all identified
corrective actions and full formal 8D notification closure.

Category

Description

TargetContainment

TargetRC And CA

Target Closure

1

Disruption OEM or end-user reject
Reliability audit reject

1 day

10 days

40 days2

Plant issue, multiple rejected parts

2 days15 days

80 Days3

Plant issue,
single rejected part2 days

N/A

N/A

30

Back To Top7.8. Special Processes
7.8.1. Heat Treatment
Suppliers and sub-tier suppliers that provide commercial heat treat services must be authorized on
the Allison approved heat treat supplier list. For a complete listing of approved heat treat suppliers,
reference the Allison corporate website allisontransmission.com under the supplier forms link.
Tier one and sub-tier suppliers utilizing heat treatment shall perform an annual AIAG CQI-9 orequivalent assessment. The Allison SQE may review this documentation at the supplier site.
The supplier may be required to submit metallurgical samples to Allison for analysis.
If a supplier would like to have a heat treat provider that is not on the approved list reviewed
for authorization, they should submit an SPCE to their CM.

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Back To Top7.8.2. Plating
For non-fasteners, the supplier shall utilize an approved material. For a listing of approved materials,
contact your Allison SQE.
For fasteners, the supplier shall utilize both an approved material and applicator. For a listingof approved applicators, contact your Allison SQE.
Tier one and sub-tier suppliers utilizing plating shall perform an annual AIAG CQI-11 assessment.
The Allison SQE may review this documentation at the supplier site.

7.8.3. Other Special Processes
Tier one and sub-tier suppliers utilizing the following special processes shall perform an annual
AIAG CQI assessment. The Allison SQE may review this documentation at the supplier site, andother key performance indicators.
•

Coating

CQI-12•

Welding

CQI-15•

Soldering

CQI-17•

Molding

CQI-23•

Casting		

CQI-277.9. Continuous Improvement
The supplier shall have an ongoing process for continuous improvement of the product, related
manufacturing processes, and other key performance indicators. The intent is to reduce variation andto ensure process stability and capability over time. Suppliers are required to measure their first-time
quality, and update FMEAs, process flow diagrams and control plans based on actual performance.
They must also have an ongoing RPN reduction process that drives error proofing. There must be a
performance attitude for zero defects. Typical continuous improvement processes focus on:•

Scrap reduction•

First-time quality or process yield improvement•

RPN reduction•

Customer complaints reduction•

Customer or supplier warranty reduction•

Improvement in process throughput•

Reduction in set-up or lead time•

On time delivery
32

Back To Top7.10. Supplier Scorecards
Supplier scorecards contain supplier performance metrics by vendor code and are available
to suppliers on a monthly basis. Each vendor code receives a composite scorecard value basedon the following metrics:

Quality
•
•
•
•
•
•

3-month supplied part PPM
Formal 8D notifications issued in the past 3 months
Formal 8D notifications in the past month
3-month formal 8D on time closure performance
Number of disruptions and cases of Controlled Shipping or New Business Hold
IATF16949 or ISO-9001 certification

PPAP
•
•

Percent of targeted PPAPs scheduled to target
Percent of PPAPs approved on-time

Delivery••

Percent on-time delivery in the past month
Average percent on-time delivery in the past 3-months

Commercial Performance
•
•
•
•
•

Payment terms
Number of open cost recoveries
Foreign exchange clause participation
Long-term contract participation
Financial rating

Suppliers are expected to develop an action plan to improve performance for any category not meeting
Allison standards. If performance fails to improve over a period of time, such performance is subject toreview by Allison leadership.
Grading Scheme:Green

90% or above in a category Supplier has met ATI's Goals.

Yellow 61 - 89.9% in any category Suppliers are expected to review and improve their scorecard
performanceRed
0 - 60% in any category
Supplier are expected to develop an action plan to improve
performance for any category not meeting Allison standards.
33

Back To Top7.11. Cost Recovery Process
Allison uses a cost recovery process to recover costs incurred as a result of a supplied part quality
or delivery issue.
Allison will gather costs associated with a supplied part issue, which may include the following, at aminimum:
•

•
•
•
•

Labor costs at the affected Allison locations related to:- Containment, sorting and inspection of suspect material at Allison or our customers- Rework of suspect material, assemblies or transmissions at Allison or our customers- Downtime within the manufacturing cells, sub-assembly and main assembly line of theAllison plant- Activities related to evaluation of the supplied part issue and required interaction with the 		
Allison supplier and customers
Premium freight
Expenses incurred by Allison for travel to our supplier or customer locations
Incidental laboratory, machining or retrofit costs
Allison warranty and field action expenses

The supplier shall provide a response to any cost recovery request issued to them by Allison within 14
calendar days.
Cost recoveries with no supplier response can be debited through the financial organization to the
supplier after 14 calendar days from issuance of cost recovery request.

7.11.1. Cost Recovery Appeal Process
If the supplier does not agree and the supplier wants to pursue the appeal process, the appeal
should be directed to the Commodity Manager within 14 calendar days. Failure to reply or appeal
within 14 calendar days will be interpreted as acceptance of the cost recovery and may result in an
automatic debit of the cost recovery amount.
The supplier shall provide objective evidence that the charge is inaccurate. If Allison and the
supplier agree on a revised cost, the cost recovery request shall be amended and the revisedamount shall be debited or invoiced to the supplier.
If no agreement is reached within six weeks of issuance of the cost recovery request and Allison
has approved no extension, the original cost requested may be debited or invoiced to the supplier.

34

Back To Top7.12. Controlled Shipping
Controlled Shipping Levels One And Two (CS1 and CS2) are enhanced containment processes that
may be required when the supplier’s normal containment process and prototype, launch or standard
controls are not sufficient to protect Allison from receiving defective product. The redundant inspection
must be in addition to normal controls, and the data obtained from the redundant inspection process
is critical as both a measure of the effectiveness of the secondary inspection process and the corrective
actions taken to eliminate the initial nonconformance.
Controlled Shipping One may be required as a result of:
•
•
•
•
•
•

Unauthorized changes
Repeat quality issues
Dock audit failure at supplier location
Internal/External supplier data
Quality issue in the field
Disruption at Allison

For CS1 the redundant inspection must be in addition to normal controls and is enacted by the
supplier’s employees.
Controlled Shipping Two may be required as a result of:••••

Quality issue in the field
Disruption at Allison
CS1 failures
Failure of GP-12

For CS2 the supplier is required to utilize a third party redundant inspection process to sort for a specificnon-conformance while maintaining CS1. The supplier will contact a Controlled Shipping third party
to perform the required certification and issue a purchase order for CS2 activities within 24 hours ofreceiving the CS2 letter. The supplier shall notify their registrar of their entry into CS2.
The supplier will be made aware of their entry into Controlled Shipping by Allison Transmission, and aControlled Shipping entry letter will be provided to the supplier’s Quality Manager.

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The Allison SQE will conduct a kickoff meeting for the Controlled Shipping entry toreview the following:
•
•
•
•
•
•
•

The non-conformance
The Controlled Shipping certification method
Location of sort
Certified part ID requirements
Certified dunnage ID requirements
Exit criteria
I-Chart distribution list and timing

As a result of Controlled Shipping status, the supplier shall:•

Return the signed controlled shipment confirmation letter•

Immediately establish a separate containment activity area at their location that is acceptable
to Allison•

Mark individual parts, materials and containers, as agreed upon by Allison, to identify parts certified
for production•

Commence the sort activities and display the results in a public and visible location•

Perform a redundant inspection of all suspect non-conforming products per the agreed upon
process, and ensure defect-free material is delivered to Allison•

Document containment data in I-chart format and distribute as agreed in the kickoff meeting•

Conduct a daily management meeting at the sort location to review the results, ensure thecorrective actions taken are effective and plan required changes•

Communicate the action plan, inspection status and results of problem resolution activities
to Allison in a format and with a frequency agreed to by SQE

36Back To Top7.12.1. Controlled Shipping Exit
The supplier can request exit from Controlled Shipping no earlier than 30 days (or approved exitplan) following implementation of corrective action with no additional findings.
To exit Controlled Shipping status, the supplier shall:• 		 Meet the defined exit criteria•
Request exit from Controlled Shipping and provide supporting documentation and 				assessments on corrective actions to the responsible SQE

37Back To Top7.13. Allison Supplier Improvement Program (ASIP)
Suppliers with chronic warranty, quality or on-time delivery issues will be considered for placement in
the focused program. Entrance will be communicated by the Allison Transmission team and can be as aresult of the following:
•
•
•
•
•
•
•
•
•

Quality-related disruption
Significant or repeated warranty failures
Loss of IATF16949 or ISO-9001 certification
Failure to meet required milestones during APQP
Repeat formal 8D notifications for the same quality or delivery issue
Multiple formal 8D notifications for various quality or delivery issues
Consistent poor delivery performance
Continued Process Control Plan Audit failures
Chronic poor supplier composite scorecard performance

Depending on the reason for entry into the ASIP, a cross-functional team from Allison, led by an Allison
representative, will work with the supplier on systemic improvements. This cross-functional team may
include representatives from one or more of the following functional organizations:
•
•
•
•
•
•
•
•

Supplier quality
Procurement
Global supply chain
Procurement program management
Operations – manufacturing, production and schedulingIndustrial engineering
Manufacturing engineering
Product engineering

The supplier’s leadership and cross-functional resources are required to participate in meetings held
at a frequency determined by the Allison representative until the supplier exits the program.
While in the ASIP, suppliers are required to work with their Allison representative to establish exit
criteria. Completion of the exit criteria will be tracked with the Open Issues Template (AT-1927-05)
as appropriate.

38

Back To Top8.

Control Of Customer-Owned Tooling

Refer to AT-101127, “Tool And Gage Guidelines,” on the allisontransmission.com supplier section
for requirements related to Allison-owned tooling and gaging.

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9.

Packaging, Labeling, Preservation And Shipping

9.1. Packaging
Parts supplied to Allison will normally have a standard packaging plan. The pack design comprehends
several factors including supplier location, rate of demand, Allison process design and part protection.
In most cases, parts are received at Allison directly from containers as packaged by the supplier.
It is critical to implement a design that properly protects parts from damage and contamination
while avoiding excessive waste. Guidelines for packaging materials for Allison are included in the
Allison Packing, Identification And Global Supply Chain Requirements document, AT-1700. Allison
may request that suppliers utilize returnable containers or ship in expendable packaging. Supplierpackaging plans are to be documented on the packaging assumptions form AT-1703 during thequoting process. While Allison may recommend use of specific returnable containers, the supplier is
responsible for packaging plans that protect their parts from damage, contamination and corrosion
for normal transportation conditions and storage for the lead time designated in AT-1700.

9.2. LabelingPart shipments must be marked (labeled) for shipment in accordance with the Shipping Parts ID LabelStandard, form AT-1724.

9.3. Shipping
When shipping parts to Allison, suppliers are expected to abide by the Allison Transportation
Routings, form AT-101106.
Note: AT-101106 will only be accessible to suppliers once they have been granted access to theAllison supplier extranet. Suppliers are required to provide advanced electronic notification (ASN) at
the time of shipment. Suppliers have two current ASN communication options available: via manual
web portal entry using Allison third party logistics (3PL) provider Ryder Integrated Logistics, or via
electronic data interchange (EDI) directly to Allison.

9.4. Schedule Performance
Suppliers are expected to ship on time per their Allison release schedules. If suppliers are not able
to meet on-time deliveries, they are required to notify Allison so an alternative mutually agreeable
delivery plan can be made.
Failure to conform to Allison requirements associated with packaging, labeling, shipping and schedule
performance could result in the creation of a formal 8D notification for corrective action.

40

Back To Top10. Revision History
EditionChangeFourthUpdated cover, branding, edition number, date
Updated Christopher McCleland title

Previous
SectionPrevious
Page

New
Section

New
Page

Changed
By

Date

a

a

D. Wagner

Nov '22bb

Removed From Allison General Terms And
Conditions: line

13

Updated Supplier responsibilities paragraph 3

13

Added "Unless exempted" line and email contact2

3

Added QIM paragraph2

3

Removed AT-101249
Added AT-1927-87, AT-1927-88 w/ descriptions
Replaced AT-101522 description
Added AT-101659, AT-101658 with descriptions

3

5

Added AGSQ Allison Global Supplier Quality
Deleted ASIP, DCR entries

46

Added PFEP Plan For Every Part,QIM Quality Issue Management,
SCoC Supplier Code of Conduct,
SQE description is now Supplier Quality Engineer;
Deleted PPM Purchasing Program Manager

4

7

Changed assessment results and submission line
recipients to CM and SQM

5.1

8

Added CQI-19 and CQI-20 with descriptions

5.2

8

Replaced items 8, 9, 11, 12 and entries

6.1

10

Added sub-bullet (APQP) , deleted second bullet

6.1

11

Replaced paragraph (DVP&R or validation plan)

6.2

11

Deleted paragraph "If engineering validation is required...."

6.4

12

Replaced first sentence and second bullet, removed
word annual

6.6

13

Added new paragraph (AIAG & VDA FMEA Handbook...assigning RPN)

6.7

13

Deleted " The only acceptable reason...."
sentence, deleted 2nd bullet

6.15

18

Added sentence regarding GP-12 plan

6.16

19

Replaced first sentence (GP-12 implementation)

6.16.320

Replaced entire paragraph

6.16.621

Changed altered to affected

6.18

22

Added description to AT-1810

6.18.3

23

Deleted Conditional Pass heading and text

6.18.724

Replaced first paragraph, delete last paragraph, moved
back one page

6.18.825

6.18.824

Moved back one page

6.18.925

6.18.9

24

26

7.2

25

Added AIAG to CQI-19
41

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Previous
Page

New
Section

New
Page

Replaced second paragraph(now references deviated part tag form AT-101658)

27

7.5

26

Deleted word "launch"first paragraph

27

7.6

26

Deleted second sentence and all bullets

28

7.7

27

8D conditions text additions and replacements

28

7.7

27

Replaced 7th bullet, Replaced "development" with"escalation"

30

7.7.2

29

Deleted On-Site Fast Response Review heading andparagraph below

32

7.7.6

31

Replaced text paragraph 1 regarding forms link andadded AIAG paragraph 2

32

7.8.1

31

Added AIAG paragraph 3

33

7.8.2

32

33

7.8.3

32

Added new bullets with CQI numbers

33

7.8.3

32

Added "and other key performance indicators"

33

7.9

32

Added bullet "On time delivery"

33

7.9

32

33

7.10

33

Added "and field action" to last bullet

35

7.11

34

Added two paragraphs "For CS1..."and "For CS2..."

36

7.12

35

Deleted Sections 7.12.1 and 7.12.2

38

EditionChangeFourth(cont'd)Previous
SectionReplace heading and text with new heading"Other Special Processes" and new text

7.8.3

Edited Suppliers paragraph before table and yellow andred grading descrptions in table

7.10

7.12.338

7.12.1

37

Deleted section 7.13

7.13

39

N/A

N/A

Deleted section 7.13.1

7.13.1

40

N/A

N/A

Renumbered section

7.14

40

7.13

38

Changed ASIP to focused program, communicationteam change, functional organizations updated

7.14

40

7.13

38

45

42

Date

37

Renumbered section, replaced first paragraph

Back cover branding updates and date

ChangedBy

45

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New
Page

Changed
By

Date

Changed terminology from Supplier Quality
Notification, SAP Quality Notification, SQN toeither formal 8D notification or 8D

VariousD. Wagner

Oct '19

Changed from Potential Failure Mode and Effects
Analysis Reference Handbook to AGIG and VDA
FEMA Handbook

4,13

EditionChangeThird

Previous
SectionPrevious
Page

New
Section

5,10,22,

Removed references to Run at Rate Summary
Form AT-1960-A

23,25

Replaced IPM Integration Program Manager with
PPM Purchasing Program Manager

6

Replaced SD Supplier Deviation and SP Special
Production Release with DEV Deviation

7

Removed reference to iPPAP system

12

Removed reference to SQN with reference to 8Ds

7.7

28-31

Rewrote section on supplier scorecards

7.10

34

N/A

N/A

7.2

Removed section on Quality Systems Basics

43

14

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Edition

ChangePrevious Section

Previous
Page

New
Section

New
Page

Changed
By

SecondRevised SQ Manual Introduction Letter

N/A

N/A

N/A

N/A

D. Wagner

Revised Allison Quality policy

N/A

N/A

N/A

N/A

Revised Quality System requirements

2.0

3

2.0

3

Updated Forms and References

3.0

4-5

3.0

4-5

Removed Section 5 - Allison Key Supplier Contacts

5.0

8-9

N/A

N/A

Revised wording to state best practice to becompleted prior to sourcing

6.2

10

5.2

8

Rewrote section on APQP

7.1

11-13

6.1

9-11

Removed section on Quality Systems Basics

7.2

14

N/A

N/A

Added requirement for bubbled print andcorresponding dimensional results and control
plan documentation

7.5

15

6.4

12

Reworded paragraph related toEngineering documentation

7.5

15

6.4

12

Removed references to Allison PFMEA ranking
charts. Removed part and process cleanliness
requirement for PFMEA process

7.9

17

6.8

13

Removed requirement that supplier should haveability to check a completed assembly

7.13

20

6.12

17

Removed paragraph 5 related to fixtures and
CMM fixtures

7.13

20

6.12

17

Removed Process Control Plan Audit
requirement during Run At Rate

7.19.728

6.18.7

24

Removed “Pending PPAP” as a potential Run
At Rate outcome

7.19.728

6.18.7

24

Removed paragraphs 4-7

7.19.929

6.18.925

Removed statement for sub-tier suppliers to becertified at a minimum to ISO-9001

8.2

30

7.2

26

Rewrote Supplier Quality
Notification section

8.7

32-34

7.7

28-32

Rewrote Supplier Scorecard section

8.10

36

7.10

34

Rewrote Cost Recovery section

8.11

37-38

7.11

35

Rewrote Controlled Shipping and New Business
Hold sections

8.12/8.13

38-43

7.12-7.13

36-40

Rewrote Allison Supplier Improvement
Program section

8.14

44

7.14

40-41

44

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