Issued by: Bettina Wolff

1. Control Level Definition (=CLD) Version 1.0 Issued by: Bettina Wolff Approved by: Halvar Jonzon, Leif Berntsson, Svante Mogefors, ASPP/ASM-Core-Team 01-May-2005

2. ! Interface/Medium CLD is an ALV-internal ASPP-procedure, which is executed by Autoliv and just for information purpose also published to our suppliers through ASM. APP Supplier Manual (ASM) Suppliers External ALV Internal AGI Autoliv Sourcing and Purchasing Process (ASPP) Autoliv- Employees CLD=Control Level definition Autoliv Product Development System (APDS) Autoliv Production System (APS) CLDin ASPP and ASM

3. Advanced Sourcing Project Purchasing Serial Purchasing & Management Commodity Purchasing ASPP Updates and Revision Status Where is CLD found in ASPP ? CLD

4. Where is CLD found in ASM ? CLD

5. Control Level Definition • What is Control Level Definition (CLD)? • a rating method to identify areas of risk associated with the launch of any project in order to prioritize Autoliv focus of the S-APQP effort.

6. Control Level Definition • Purpose of CLD? • assess and rate the combined risk of: • the selected serial suppliers • the supplier product • the supplier process

7. Control Level Definition • Why do we need to execute CLD? • to raise awareness of high risk situations • to prioritize resources to manage high risk situations for Autoliv • Determines the amount of resource required • Determine Follow up method and frequency • Standard Procedure

8. Control Level Definition • Who does CLD? • Project Team • Purchasing Project Coordinator/Buyer (responsible to lead the efforts) • Supplier Quality Advanced • Design Engineer *) • Process Engineer • Others as required • *) Note: When the project contains elements of design that are controlled by DA or CDA or CPA, these individuals shall determine if the supplier product is to be defined as CLD 4 product or not. See next slide for an example of responsibility. • (CDA - Corporate Design Authority - is an individual Team who is appointed to a specific product type or to a product family. CPA - Corporate Product Authority - is an individual Team who is appointed to same customer products delivered to multiple customer locations and/or produced at multiple ALV locations. See further AS 115)

9. Define Interaction & Split Responsibility Example of CDA, CPA and Local APDS Project Team involvement in a customer product Implement Global Strategy Top Assembly e.g. Seatbelt Customer project owned and approved by Project Team Leader(PTL) Also approved by CPA Sub-Assembly e.g. Retractor Component 1 e.g. Webbing Component 2 e.g. Tongue Owned and approved by CDA Component 3 e.g. Frame Component 4 e.g. Spindle

10. Control Level Definition • When is CLD performed? • after supplier selection • prior to S-APQP • in accordance with APDS (normally in phase 1)

11. Control Level Definition • General process • Step 1 : Determine if the supplier product is of the category of products defined as a “CLD 4 -supplier product” ( see next slide ) • If “Yes ==> CLD level is determined as CLD 4 • If “No ==> Go to step 2 • Step 2 : Answer the questions about “Key definitions” : • Current or New Supplier ? • Current or New Technology/Process ? • Current or New Supplier Product Design ? • Step 3: Use the CLD Matrix to determine CLD level.

12. Control Level Definition • Step1: Determine, if product/component is a “CLD-4-supplier product: • Question: What is a “CLD 4 - supplier product” ? • A CLD 4- supplier product is a component which has a critical impact on Autoliv product performance in it´s product application(asdefined by CDA/CPA and/orlocalproject team and • CDA/CPA and/or project team experience shows that thorough follow-up during the APQP process is of outmost importance in order to reduce risk (product performance, project, etc). • For this category of supplier products, CLD 4 is the default level.

13. Control Level Definition • Step1 (continue): • Examples for CLD-4-supplier products: # Generant # Initiator # Accelerometer # Inflator # MGG

14. Control Level Definition • Step 2 : Determine key definitions required to establish CLD: • a) Supplier : Current or New ? • current supplier are any serial supplier doing business in the current ALV business region ( i.e.: ANA, ASA, AEU, AAP, AJP, ALE) • new supplier site is “New supplier”

15. Control Level Definition • Step 2 (continue): Determine key definitions required to establish CLD: • b) Technology/Process : Current or New ? • new technology means new to supplier. • “new” indicates a significant change in, raw material, sub supplier, machines, tool concept, process steps/sequence, or testing procedure to produce like or similar components.

16. Control Level Definition • Step 2 (continue): Determine key definitions required to establish CLD: • c) Supplier Product Design : Current or New ? • New means: • any significantchange to form, fit or function of the supplier product • significant change to an existing raw material • new raw material

17. Control Level Definition • Additional consideration to determine CLD • Normal/Compressed Timing • time is compressed if there is a need to expedite resources required to meet a targeted time. • the CLD level will be increased by the project team, if the team has the impression that additional attention/support of ALV will help the supplier to meet the targeted timeline. • examples could be production equipment, tooling, raw material availability or personnel availability • past due actions will not be cause for redefining of CLD

18. Control Level Definition Step 3: Use the CLD Matrix to determine CLD level: CLD Determination Matrix:

19. Control Level Definition • Step 3 (continue): Using the “CLD determination matrix”: • a) Put “X” in relevant columns of “CLD-determination matrix” according to step 2. • b) CLD-Determination: • CLD Level # 1 • No (0) “X” in the column “New supplier”, “New technology/process”or “New Design” • CLD Level # 2 • One (1) “X” in the column “New supplier”, “New technology/process”or “New Design” • CLD Level # 3 • Two (2) or three (3) “X” in the column “New supplier”, “New technology/process”or “New Design”

20. Control Level Definition • Step 3 (continue): • Summary / Control Level definition Table:

21. Control Level Definition • What are the Control Levels (CLD 1 - 4) ? • and • What are the requirements within these levels ?

22. Control Level Definition

23. Control Level Definition • Additional consideration to CLD 1 - 3 • AS-2 Audit or AS 69 Audit • may be required in all or part at any level on the CLD matrix

24. Examples for Control Level Definition

25. Example - Airbag • Example Situation • Driver Airbag – Mfg by AWM – A Mexican Steering Wheel Facility • New Autoliv Customer • New Cover Design • Existing Supplier, New technology • New Emblem • Existing Yellow Supplier • Existing aluminum rivet • Existing Supplier • 1st (New) Driver OPW cushion • Existing Green Supplier, New technology

26. Example - Airbag CLD Determination Matrix

27. Example - Seat Belt • Situation • Rear Center Seat Belt – Mfg by KLE Facility • New Autoliv Customer • Existing Technology • Webbing – New Color for VOA According to CLD determination matrix == > CLD 2 (see also next slide) • Expedited Lead Time – 12 weeks SOP Project Team determined attention/support of ALV will help the supplier to meet the targeted timeline • CLD level to increased by the project team - Team decision : CLD 3

28. Example - Seat Belt CLD Determination Matrix