Post on 12-Jan-2022
NIO Quality Premium Partner Manual
18 Aug, 2020 V 1.3
Vision of NIO Quality Premium Partner
As a pioneer in the smart electric vehicle market, NIO has developed cutting-edge proprietary technologies in vehicle, such as E-powertrain, intelligent HMI, and smart connectivity, beyond vehicle and revolutionary charging solutions.
Close and healthy cooperation with our partners in development, manufacturing, and quality is the key to fulfil our vision of“Shape a joyful lifestyle”.
NIO Quality Premium Partner (Hereinafter referred to as NQPP) is a system which comprehensively reviews our partners’ overall performances from three perspectives. It is created to reflect our partners’ operations and management status and to identify opportunities for their continuous improvements. We believe that the NQPP program is also beneficial to the partnersin providing encouragement and support, so as to achieve an excellence standard through continuous communication.
NIO Quality Premium Partner aims at fostering a mutual relationship. To be more specific, when our partners put great efforts into improving themselves to meet NIO quality standards, NIO stands ready to offer our expertise, experience and assistance throughout the NQPP quality journey.
NIO Quality Premium Partner puts the discipline in place to achieve consistent excellence and guides the cooperation between NIO and our partners for superior quality.
To Create Premium Quality Together with Partners.
Content
Content
1. Benefits of NQPP
2. NQPP Overview
3. NQPP Evaluation Items-Score Threshold
4. NQPP Requirements and Score
5. NQPP Application and Revocation Rules
6. NQPP Application vs. NQPP Retention
7. NQPP Status
8. NQPP on NIO Partner Portal
9. Apply for NQPP
10. Abbreviations
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1Benefits of NQPP
Benefits of NQPPWe encourage our partners to manage their own performance with NQPP policy for continuous improvements in quality and a long-term win-win result. NQPP is more than just a title. It will bring the following benefits to our partners:
Premium Quality and ProcessThe NQPP award is a recognition of the partners’ product quality and manufacturing process.
Preferred Partners for New BusinessNQPP partners will be given favorable consideration in NIO’s new business sourcing.
Branding and ReputationNQPP award is a positive reputation for a partner to enhance its own branding.
Representatives of NIO PartnersNQPP is an award for the outstanding representatives among the NIO partner base.
Growing Together with NIONQPP is a bridge to connect partners and NIO. We join hands and achieve great success together.
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2NQPP Overview
NQPP OverviewAny partner’s manufacturing site (including DB and consignment partner manufacturing site) which has at least 6 months of acceptable production and at least 3000 pieces delivered to NIO and NIO production plants, is eligible for NQPP consideration.
A NQPP means the partner’s facility achieves excellence in these key areas: Quality, Logistics and Cooperation. NQPP Score = Quality Score+ Logistics Score + Cooperation Score
If a partner fails to meet one of these metrics, including CSL, Field Performance, System Assurance, APQP Delivery, Integrity (hereafter referred to as revocation triggers), the NQPP award will be revoked regardless of the NQPP score.
A partner with more than 850 NQPP points (680 points for DB partner) and no revocation trigger is eligible to apply for or retain NQPP.
If a NQPP partner has received NQPP score which is no greater than 850 points (680 points for DB partner), the NQPP award revoking process will be triggered.
Logistics
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Quality
Cooperation
3NQPP Evaluation Metrics and Score
Distributions
NQPP Evaluation Metrics and Score Distributions
Section Item Definition Full Score Frequency of Assessment
Quality650 Points
PPM Defects Part Per Million 150 Once a month
CSL Controlled Shipping Level* 50 Once a month
QR Quality Rejection 50 Once a month
Field PerformanceStop shipping, recall or service campaign in the
field caused by partner quality issue *50 Once a month
IPTV in 3 MISIncident Per Thousand Vehicles in 3 Months in
Service50 Once a month
System Assurance
IATF 16949 & other qualifications required by regulations* 50 Once a year
ISO 14001
NPQS Assessment NIO Partner Quality System assessment result 150 Once a year
APQP Delivery APQP achievement* 50 Every 6 months
Integrity Violation of trust* 50 Once a month
Logistics200 Points
LogisticsLogistic performance
(not applicable for DB partner)200 Once a month
Cooperation150 Points
Engineering Engineering performance 100 Every 6 months
Fast Response Fast Response to PQM/CMQ team support 50 Once a month
* Revocation Trigger 10
4NQPP Requirements and Score
NQPP Requirements and Score
PPM NQPP Score Full Score
PPM ≤ Benchmark 150 Points
150 PointsBenchmark < PPM ≤ 2 x Benchmark 100 Points
2 x Benchmark < PPM ≤ 3 x Benchmark 50 Points
3 x Benchmark < PPM 0 Points
QUALITY
NQPP uses nine key metrics in determining a partner’s score in terms of Quality Performance:
Quality is the top priority of a business. We expect our partners to maintain a stable quality, so as to support NIO in providing high quality products to our users.
1.PPM
Parts Per Million. Each manufacturing site has a set benchmark PPM according to the product it has. In NQPP assessment, we compare the partner’s actual total PPM in the past 6 months with the benchmark in order to ensure that the partner is consistently delivering high quality products. The Tier 1 partner is required to submit PPM data of their DB/consignment partner to NIO PQM.
Data Owner: IQC Support Team: Launch PQM
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NQPP Requirements and Score
QUALITY2.CSL
Controlled Shipping Level. It is a special shipping control for a partner when it is confirmed incapable of delivering qualified products. CSL is classified into 2 levels based on the severity of the issue and partner’s coordination.
CSL NQPP Score Full Score
No CSL1 and CSL2 50 Points
50 Points
CSL1 = 1, and no CSL2 30 Points
CSL1 = 2, and no CSL2 10 Points
CSL1 ≥ 3 0 Point
CSL2* ≥ 1 0 Point
*When a CSL2 is triggered, the partner’s NQPP award will be revoked even its score exceeds 850.
Data Owner: PQM Support Team: -13
NQPP Requirements and ScoreQUALITY
3.QR
Quality Reject. The total number of quality rejects in the past 6 months of one partner, which is classified into 4 ranks according to different levels of severity. The Tier 1 partner is required to submit QR data of their DB/consignment partner to NIO PQM. When the QR count number is converted into NQPP score, we grant each QR rank its own conversion rate.
QR number: Number of A50*100%+Number of B20*40%+Number of B10*20% +Number of C5*10%
QR Level Conversion Rate Data Source
A50 100% IQC
B20 40% IQC
B10 20% IQC
C5 10% IQC
QR Count NQPP score Full Score
QR Count = 0 50 points
50 Points0 < QR Count < 0.2 30 points
0.2 ≤QR Count 0 points
Conversion Rate of QR Rank QR Count Score Metrics
Data Owner: IQC Support Team: Launch PQM
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NQPP Requirements and Score
QUALITY
4.Field Performance
We expect our partners to keep paying attention to the quality of the product in the full lifecycle, instead of the quality while in NIO’s plant. A quality performance beyond expectation in the field will bring good reputation to both NIO and our partners. NIO always puts great emphasis on avoiding stop shipping, recall and service campaign which will bring extra cost and have negative impacts on reputation. Any partner’s responsibility related stop shipping, recall or service campaign in the field occurred in the past 12 months will be counted as a Field Performance.
Field Performance NQPP Scoring Full Score
Stop shipping, recall or service campaign = 0 50 Points
50 PointsStop shipping, recall or service campaign * ≥ 1 0 Point
*As long as a recall occurred in the past 12 months, the partner will lose 50 points and the NQPP award will be revoked at the same time.
Data Owner: PQM Support Team: ASQ
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NQPP Requirements and Score
QUALITY
5.IPTV in 3 MIS
Incident Per Thousand Vehicles in 3 Months in Service. The quality we pursuit is not temporary quality or quality in a certain situation, but long-term reliable quality. We set each partner an IPTV in 3 MIS benchmark according to its product supply.
IPTV (3 MIS) Scoring Full Score
IPTV ≤ Benchmark 50 Points
50 PointsBenchmark < IPTV ≤ 2 x Benchmark 20 Points
2 x Benchmark < IPTV 0 Point
Data Owner: PQM Support Team: CMQ
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NQPP Requirements and Score
QUALITY
6.System Assurance
NQPP evaluates this aspect of business management by a third party certification, namely IATF16949 quality management standard. We expect NIO partners to be IATF16949 certified. Only a partner with valid IATF16949 is eligible to apply for NQPP. Partners who are requested to have other qualifications required by regulations, such as CCC/CE, must make sure all these certifications are always valid. PQM conducts a follow-up check for those certifications in annual audit.
System Assurance Content NQPP Score Full Score
IATF 16949 & Other qualifications required by regulations
Obtained Certificate 30 Points
50 PointsNo / Loss* 0 Point
ISO 14001Obtained Certificate 20 Points
No / Loss 0 Point
*If IATF16949 is missing or invalid, the partner’s NQPP award will be revoked regardless of its NQPP score. For those partners requested other qualifications required by regulations such as CCC/CE, if these certifications are missing or invalid, the partner’s NQPP award will be revoked as well.
Data Owner: PQM Support Team: -
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NQPP Requirements and Score
QUALITY
7.NPQS Assessment
NIO Partner Quality System Assessment. It is an overall assessment for a manufacturing site management. A good quality management at the manufacturing site is a strong guarantee of product quality control. We expect our partners to develop and maintain excellent process quality control, so as to lay a solid foundation for product quality. NPQS assessment determines whether the site meets NIO expectations and identifies any opportunity for improvement. Only if the site meets all NIO expectations or has a robust working plan for improvement can the partner become eligible for NQPP nomination.
NPQS Assessment Result NQPP Score Full Score
Green 150 Points
150 PointsYellow 100 Points
Red 0 Point
Data Owner: PQM Support Team: -18
NQPP Requirements and ScoreQUALITY
8.APQP Delivery
Delivery of Advanced Product Quality Planning. We encourage our partners to allocate superior resources to support NIO program development. High quality delivery of all APQP deliverables on time is always highly appreciated. We expect our partners to focus on the following 6 aspects:
Schedule submissions timely Provide the required APQP deliverables for each phase in due time Keep up with the timing, actions and documentations of PPAP Close any nonconformity before the deadline Escalate the open issues if any delay or missing occurs Manage the APQP performance of the sub-contractor if necessaryIf the partner does not undertake NIO’s new projects within the past 6 months, the latest APQP delivery score will be followed.
APQP Delivery Status NQPP Score Full Score
100% APQP completion 50 Points
50 PointsAPQP Phase Review Report is not submitted on time 30 Points
Open Y or R issues in APQP Phase Review are not closed by the due date* 0 Point
*As long as any open issues are not closed by the due date and impact NIO program development, the partner will lose 50 points and the NQPP award will be revoked regardless of total NQPP score it gets.
Data Owner: PQM Support Team: -
NQPP Requirements and ScoreQUALITY9.Integrity
Violation of trust. An effective and smooth communication between our partners and NIO is highly appreciated. Any changes of process, material, design and engineering are expected to be timely reported and summitted to NIO’s team in charge for approval. A NQPP eligible partner is requested not to have any violation of trust occurred in the most recent 6 months. If a partner has the following performance, we will consider it to have violated the integrity policy.
Change product design and/or manufacturing process without PQM permission. Change partner’s manufacturing location without PQM permission. Change sub-contractor without PQM permission. Change component or material without PQM permission. Launch ramp-up result fails to meet NIO NPDP milestones or capacity demand. PSW supporting data is not robust.
Content NQPP Score Full Score
No Integrity Violation 50 Points
50 PointsAny violation performance related to:
1) Design/Process; 2) Production site; 3) Sub-contractor;4) Component/ Material; 5) Capacity; 6) PSW supporting data,
etc.*
0 Point
*Once there is violation of trust over the past 6 months, the partner will lose 50 points and the NQPP award will be revoked regardless of total NQPP score it gets.
Data Owner: PQM Support Team: -
NQPP Requirements and ScoreLOGISTICS
Logistics
Qualified products are required to be shipped on time, at the correct location, in the proper quantity and with the correct information. The data is input by NIO logistic team and based on the performance in the currentmonth. The score of logistic performance is given from the following 5 aspects and needs to be transferred into NQPP score before being used in NQPP award. If the partner does not deliver in the current month, follow the logistics performance score of the last supply. Logistics score is not applicable for DB partner.
Partner’s preparation Completion and update of partner’s files Supply chain coordination Daily operation Major problems of supply guarantee
*For detailed rating standard of logistic performance, please refer to the logistic team.
Logistics NQPP Score Full Score
LOG = 100 200 points
200 points
95 ≤ LOG < 100 150 points
90 ≤ LOG < 95 100 points
85 ≤ LOG < 90 50 points
LOG < 85 0 points
Data Owner: Logistic Support Team: -21
NQPP Requirements and Score
COOPERATION
We expect our partners to have good cooperation with NIO in various aspects, including engineering and fast response.
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1.Engineering
Continuous product iteration can make contributions to winning the market share rapidly. We expect that our partners are capable of allocating superior resources and providing NIO with high quality engineering development support via engineering. Thus, NQPP also includes the partner performance in engineering and software development. The partner is evaluated from 4 aspects:
New product development progress
Technical issue solving
Engineering quality performance
Technical support cooperation
If the partner does not undertake NIO’s new projects within the past 6 months, the latest engineering score will be followed.
NQPP Requirements and Score
COOPERATION
1.Engineering (Continued)
Definition Content Score Full Score
E1: New product developmentprogress
No delay 30 Points
100 Points
Within 2 delays -10 Points each delay
More than 2 delays 0 Point
E2: Technical issue solving
All technical issues closed on time 30 Points
Within 5 times technical issues closed delays -5 Points each time
More than 5 times technical issues closed delays 0 Point
E3: Engineering quality performance
No engineering quality deviation 20 Points
Within 3 times engineering quality deviation -5 Points each time
More than 3 times engineering quality deviation 0 Point
E4: Technical support cooperation
Provide strong technical support 20 Points
Provide weak technical support 10 Points
No effective support 0 Point
The rating of NQPP engineering consists of 4 aspects as below:
*For detailed rating standard of engineering, please refer to the EQ team.Data Owner: Engineering Support Team: EQ
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NQPP Requirements and Score
COOPERATION
2.Fast Response
We expect our partners to provide fast response to support NIO in solving issues during the phases of 0km, mass production, aftersales, etc. The partners are also required to submit supporting data and documents to deal with urgent cases. This metric combines the score of each of the following target together :
Content NQPP Score Full Score
No downtime of production line caused by partner’s issue 20 Points
50 Points
Take emergency actions in time and meet NIO requirement 15 Points
Take corrective/preventive actions in time and meet NIO expectation 10 Points
Provide reports in time and meet NIO requirement 5 Points
24Data Owner: PQM Support Team: CMQ
5NQPP Application and Revocation Rules
NQPP Application and Revocation Rules
NQPP Application NQPP Revocation NQPP Re-application
1. 3000 pieces delivery;
2. 6 months delivery;
3. NQPP score is greater than
850 points (680 for DB
partner);
4. No revocation trigger
5. PQM Endorsement
approved
Not eligible to reapply for NQPP in 6
months from revocation date.
As long as partner fails in any of the five
revocation trigger items, NQPP award is
revoked immediately.
The NQPP award will also be revoked from a
partner with NQPP score ≤ 850 points (680 for
DB partner) if it fails in any of the following 3
aspects:
1. Submission of an improvement plan
within 3 months;
2. NPQS Assessment evaluation result is
Green, or Yellow but with acceptable
improvement plan;
3. NQPP score remains above 850 points
(680 for DB partner) in 3 consecutive
months after improvement report
submitted.
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6NQPP Application vs. NQPP Retention
NQPP Application vs. NQPP Retention
Category NQPP Application NQPP Retention
PPM Total PPM in 6M ≤2x benchmark Current month PPM ≤3X benchmark
CSL No CSL occurred in past 6 months No CSL2 occurred in current month
QRCompare total QR count in the past 6 month with QR
threshold range Compare current month QR count with QR threshold
range.
Field Performance No recall or service campaign in the past 12 months No recall or service campaign in current month
IPTV in 3 MIS N/A N/A
System AssuranceValid IATF 16949 & other Regulation Required
QualificationsValid IATF 16949 & other Regulation Required
Qualifications
NPQS AssessmentNPQS assessment result is Green, or Yellow but with
acceptable improvement planNPQS assessment result is Green or Yellow
APQP No APQP Phase Review delay in the past 6 months Y or R issues in APQP Phase Review are closed in time
Integrity No violation of trust issue occurred in the past 6 months No violation of trust issue occurs in current month
Logistics N/A N/A
Engineering N/A N/A
Fast Response N/A N/A
NQPP Score >850 points > 850 points
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7NQPP Status
NQPP Status
All partners’ initial status on the NIO Partner Portal
NQPP Module is “Potential”.
Four categories are defined to show the partner’s status. NQPP Admin changes the status according to the partner’s performance, and updates it in NQPP module on the NIO Partner Portal timely.
Potential
If the average NQPP score for 6 months of the
“Enabled" status partner is higher than 850 points and
at least 3 months’ NQPP score is higher than 850 points
(DB partner above 680 points), and the official
endorsement is signed, the status will be changed to
"Qualified".
Qualified
Partners with performance score over 850 (680 for DB
partner) in current month will be in the status
“Enabled”.
Enabled
It means NQPP is revoked and the partner cannot re-
apply for NQPP in 6 months.
Revoked
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8NQPP on NIO Partner Portal
NQPP Summary NQPP Reviews
NQPP Homepage
NQPP on NIO Partner Portal
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9Apply for NQPP
1. Partner self-evaluates its own performance
2. Partner makes a request to PQM to apply for NQPP
3. Partner prepares NQPP Endorsement and submits it to PQM for signature
4. PQM prepares NQPP Quality Report
5. PQM submits the NQPP management letter for signature, and NQPP Quality Report
6. PQM informs NQPP Admin to change partner’s status in the system
7. PQM sends an approved management letter to the partner as an official notification from NIO
Apply for NQPP
PROCESS
DOCUMENTS NEEDED
Apply for NQPP
Documents for NQPP Application Prepare
Endorsement Letter Partner
NQPP Quality Report PQM
NQPP Management Letter PQM
Documents for NQPP Revocation Prepare
NQPP Revocation Letter PQM
NQPP Revocation Report PQM
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10Abbreviations & Change Log
Abbreviations
Abbreviations Full Name
NQPP NIO Quality Premium Partner
DB Directed Buy Parts
PPM Part Per Million
CSL Controlled Shipping Level
QR Quality Rejection
IPTV in 3 MIS Incident Per Thousand Vehicle in 3 Months in Service
NPQS NIO Partner Quality System
APQP Advanced Product Quality Planning
PQM Partner Quality Management
ASQ Aftersales Quality
CMQ Current Model Quality
IQC Incoming Quality Control
EQ Engineering Quality
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Change Log
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Page Original Content Changed Content Change DateManual Version
10 Process audit assessment result NIO Partner Quality System assessment result 5 Aug.2019 V1.1
12we evaluate compare the percentage of a partner’s actual total PPM in the past 6 months with against with the benchmark…
we compare the partner’s actual total PPM in the past 6 months with the benchmark
5 Aug.2019 V1.1
20Change sub contractor or Tier 2 partner without PQM permission.
Change sub contractor without PQM permission. 5 Aug.2019 V1.1
23 More than 4 times engineering quality deviation 4 times or more engineering quality deviation 5 Aug.2019 V1.1
26 4. No revocation trigger item. 4. No revocation trigger. 5 Aug.2019 V1.1
30Partners in “Enabled” status who have achieved NQPP performance over 850 and signed the official Endorsement will be in the status Qualified.
Partners in “Enabled” status who have achieved NQPP performance over 850 and signed the officialEndorsement will be in the status “Qualified".
5 Aug.2019 V1.1
37 Sub-title "DOCUMENTS NEEDED" Delete this sub-title 5 Aug.2019 V1.1
Change Log
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Page Original Content Changed Content Change DateManual Version
10Fast Response to APQM/CPQM/Launch PQM/CMQ/ASQ team support
Fast Response to PQM/CMQ/ASQ team support
9 Dec. 2019 V1.2
13 Data Owner:CPQM Support Team:APQM Data Owner:PQM Support Team:- 9 Dec. 2019 V1.2
15 Data Owner:CPQM Data Owner:PQM 9 Dec. 2019 V1.2
16 Data Owner:CPQM Support Team:ASQ Data Owner:PQM Support Team:CMQ 9 Dec. 2019 V1.2
17 Data Owner:APQM Support Team:APQM Data Owner:PQM Support Team:- 9 Dec. 2019 V1.2
18 Data Owner:PQM System Support Team:APQM Data Owner:PQM Support Team:- 9 Dec. 2019 V1.2
19 Data Owner:APQM Support Team:APQM Data Owner:PQM Support Team:- 9 Dec. 2019 V1.2
20 Data Owner:APQM Support Team:APQM Data Owner:PQM Support Team:- 9 Dec. 2019 V1.2
21 Data Owner:Logistic Support Team:Logistic Data Owner:Logistic Support Team:- 9 Dec. 2019 V1.2
24Data Owner:CPQM Support Team:APQM/CPQM/Launch PQM/CMQ/ASQ
Data Owner:PQM Support Team:CMQ/ASQ
9 Dec. 2019 V1.2
37 APQM/CPQM Deleted APQM/CPQM 9 Dec. 2019 V1.2
8,10,12,14,15,16,19,21,22,23,24,26,
30,37- Gray bottom marking content 20 Aug. 2020 V1.3