Supplier Escalation Process

Escalation B

Description –
Level B escalation is the result of continuing product, process or system failures with a supplier. Status is indicated in the Timken GASL database.

Purpose –
The implementation of the required actions to ensure that we protect our customers and the Timken brand name.

Consequence –
The Supplier will be placed as Business Restricted.

Supplier Quality Escalation Process

Escalation B Entrance Criteria –Terms from P-PR-74010-COP

If a supplier reaches levels defined for 3 or more of the 5 metrics listed here, a review with appropriate Supplier Quality and Purchasing associates shall take place to determine if escalation is warranted.

1. DMRs: Supplier in top 10 for global DMRs over past 3 months
2. DMRs: Supplier has increasing rate of DMRs (3 mo avg / 12 mo avg) > 1.3 (30%
   increase rate)
3. DMRs: 2 or more DMRs with no response within 30 days (statuses: “Email sent after
   logging” and “Email seen but not responded”)
4. Repeat/Pass Thru >= 1 (12 months running)
5. PMM rating (if applicable) = High

Escalation C

Description –
This is step Three of the Supplier Quality Escalation Process. Level C escalation is the result of continuing process or system failures with a supplier or failed of some High Risk factors or a trust event. Status is indicated in the GASL database.

Purpose –
The implementation of the additional and aggressive actions to ensure that we protect our customers and the Timken brand name.

Consequence –
The Supplier will be placed as New Business Hold.

Escalation C Entrance Criteria 
Level C escalation is the result of continuing process or system failures with a supplier. Status is indicated in the GASL database.

For any one of 3 situations as below, Level C escalation will be triggered accordingly.

– A supplier shown deterioration in performance while on escalation

• Excessive complaints and quality spills
• Demonstrated a significant or total loss of control of quality system

– A High profile DMR issued by one of Timken facilities.

– A High Risk DMR, Overheating or mixed steel, which meet the condition of high profile issue.

Additional Criteria

Trust events (Relative to ethic and integrity), based on severity, team can review and directly trigger escalation B or C, even D.

– Any violation of trust events found by Timken (purchasing/ SQD/ PMM/SQA/ Engineering etc.)

– Trust events include but are not limited to the following:

• Falsification of quality record and data. (During an audit and quality issue investigation.)
• Outsourced process or product without Timken approval.
• Not inform to Timken major abnormalities which agreed before.

Escalation D

Timken will stop the business with the supplier.

Sourcing initiate a project to looking for new qualified source .
Follow Sourcing process flow chart.