STANDARD OPERATING PROCEDURES MANUAL

Material Planning & Logistics

Futuris Automotive Interiors

Packaging Specifications for

[ International Suppliers ]
Version 1.0

Copyright © Futuris Automotive All Rights Reserved The Futuris logo is a registered trademark [1]
 Copyright © Futuris Automotive Interiors (Australia) Pty Ltd All Rights Reserved

This document must not be reproduced, transmitted, adapted, distributed,

sold, modified or published in any way, or any of the material used
except with the prior written consent of Futuris Automotive Interiors

Copyright © Futuris Automotive All Rights Reserved The Futuris logo is a registered trademark [2]
 Foreword

The Packaging Specifications for International Suppliers (PSIS) was prepared by Futuris
Automotive Pty Ltd
The PSIS is a manual that provides standards for packaging and shipping products into
Futuris facilities
Deviations from the PSIS must be approved by Futuris in writing before delivery

Copyright © Futuris Automotive All Rights Reserved The Futuris logo is a registered trademark [3]
 Table of contents
Introduction
Purpose
References

General Requirements
System performance requirements
Supplier responsibilities
Futuris receiving location responsibilities
Packaging approval process

Expendable Packaging Systems

Requirements for expendable carton
Standard for corrugated containers
Intercontinental standard pallet
ISO pallet and unit load
Closure and securement
Labelling requirements

Acceptable and unacceptable shipping practices

Packaging best practices

Copyright © Futuris Automotive All Rights Reserved The Futuris logo is a registered trademark [4]
 Introduction

Purpose

It is the objective of Futuris Automotive Pty Ltd to standardize packaging to achieve:

Protection to the parts in transport, while packing parts in the most cost effective and efficient
way for transportation
Minimized or eliminated decanting and handling of packs from our suppliers to our production
lines for direct use
Parts supply systems to meet just-in-time (JIT) principles for manufacturing requirements
Where possible, minimize use of disposable packaging by using returnable or reusable
packaging

Copyright © Futuris Automotive All Rights Reserved The Futuris logo is a registered trademark [5]
 Introduction

Purpose

It is the supplier's responsibilities to:

Design their own packs complying with the FSIS guidelines

Obtain Futuris packaging approval before delivering any production parts using the packaging
data forms
Correctly and clearly label all packages in line with FSIS
Review packaging and labelling condition before sending parts to Futuris

Copyright © Futuris Automotive All Rights Reserved The Futuris logo is a registered trademark [6]
 Introduction

References

Logistics and packaging manual V2

Futuris packaging approval and data form (PAD)

Copyright © Futuris Automotive All Rights Reserved The Futuris logo is a registered trademark [7]
 General requirements

System performance requirements

The supplier is responsible for the packaging design, performance and the quality of the
part thought the supply chain
Packaging materials must protect part quality for a minimum 120 calendar days for inter-
continental shipments
Parts presented with operator ergonomics and work cell efficiency considered
Achieve minimum 85% cube utilization for intercontinental transport sea container
All material must be palletized to permit handling with forklift truck
Maximum load heights (containers plus pallets) must not exceed 1100 mm for standard sea
container and 1250mm for high cube sea container
All manually handled cartons are required to be Half-Slotted Containers (HSC) with a
removable lid
Weight limit for manually handled cartons is 12 kilos
All wood packaging material must comply with the International Standards for
Phytosanitary Measures (ISPM 15 – Web site: www.ippc.com)
All packaging plans shall be communicated using PAD form

Copyright © Futuris Automotive All Rights Reserved The Futuris logo is a registered trademark [8]
 General requirements

Supplier responsibilities
The supplier shall maintain responsibility for the design, procurement and
implementation of any expendable packaging
The supplier must develop the packaging in accordance to PSIS. Failure to comply with
PSIS will result in an issuance of a Problem Reporting and Resolution for cost recovery
due to part damage or safety concerns
Changes to part number, quantities, packaging materials or dimensions require a re-
submittal of the PAD form
Packaging costs must be included in all part quotations and clearly defined in the piece
price
Suppliers are required to submit a completed Packaging Approval and Data form (PAD)
which must be submitted for approval
When a new part number is being quoted or when a packaging update is required, the
PAD form shall be attached to part quotation
No price increases will be granted for increased cost to correct defective and/or non-
conforming packaging and fail to comply with PSIS
Suppliers are encouraged to provide continuous improvement opportunities regarding
packaging

Copyright © Futuris Automotive All Rights Reserved The Futuris logo is a registered trademark [9]
 General requirements

Futuris receiving location responsibilities

The Futuris Supply Chain Engineer is responsible to review the packaging proposal from
the submitted PAD form to understand it’s compliance to the PSIS
Upon review, the Futuris Supply Chain Engineer will coordinate internally the
approval/rejection for all submitted PAD forms
The Supply Chain Engineer must work with the supplier to optimize the packaging if
required
Final expendable packaging approval will be made after successful production
shipments have been made

Copyright © Futuris Automotive All Rights Reserved The Futuris logo is a registered trademark [10]
 General requirements

Packaging approval process

Futuris Packaging Approval and Data (PAD) form represents an agreement between Futuris
and the Supplier regarding the packaging plan for products received by Futuris
manufacturing facilities
Packaging costs must be included in all part quotations and clearly defined in the piece
price
PAD forms shall be filled out by the supplier for all part numbers
PAD forms shall be completed using the specifications for container dimensions (pages 17 -
20)
The completed PAD form shall then be signed by the supplier and then forwarded to Futuris
for distribution to the appropriate Supply Chain Engineer to obtain the specified signatures
in the plant
The following reference pages contain an example of how a typical PAD form should be
filled by the supplier

Copyright © Futuris Automotive All Rights Reserved The Futuris logo is a registered trademark [11]
 General requirements

Packaging approval process

Supplier basic information

Part and program information

Packaging information

Shipping and logistics

Pictures

Copyright © Futuris Automotive All Rights Reserved The Futuris logo is a registered trademark [12]
 Packaging approval process

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 Expendable packaging systems

Requirements for expendable carton

All material must be shipped in box sizes shown in the standard for corrugated containers menu
(Table 1 & 2)
Suppliers should use Half Slotted Containers (HSC) for direct to line side strategy and elimination
of Regular Slotted Cartons (RSC)
Containers must be palletized to ensure part protection and to permit handling with industrial
trucks
All manually handled expendable containers shall have a weight limit of 12 kilos
Mixed part numbers on the same carton are not permitted
Wire bound wood pallet boxes or wood crates are not acceptable
To ensure load integrity, containers must not overhang the pallet
Flute direction must be vertical to optimize compression strength of the carton
Corrugated in shipping containers must have adequate strength to allow the parts to arrive at the
using location in the same quality condition in which they were manufactured
The Supplier should test and validate the pack design prior to the first shipment to the Futuris
receiving location. The Supplier must provide documentation that proves validation tests have
been made (reference test protocol: ASTM D4169)

Copyright © Futuris Automotive All Rights Reserved The Futuris logo is a registered trademark [14]
 Expendable packaging systems

Standard for corrugated containers

Half Slotted Container (HSC) with Cover

Half Slotted Container (HSC) with a Common Lid

Hand-holds should not exceed 105 mm length and 40 mm height

Hand-holds should be located on the short side of the container

Copyright © Futuris Automotive All Rights Reserved The Futuris logo is a registered trademark [15]
 Expendable packaging systems

Standard for corrugated containers

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 Expendable packaging systems

Standard for corrugated containers

Bulk Box

Bulk containers should be implemented when weight restrictions prevent the use of
manually handled cartons
Copyright © Futuris Automotive All Rights Reserved The Futuris logo is a registered trademark [17]
 Expendable packaging systems

Standard for corrugated containers

Bulk containers should be implemented when weight restrictions and part characteristics
prevent the use of manually handled cartons

Copyright © Futuris Automotive All Rights Reserved The Futuris logo is a registered trademark [18]
 Expendable packaging systems

Standard for corrugated containers

Bulk containers should be implemented when weight restrictions and part characteristics
prevent the use of manually handled cartons

Copyright © Futuris Automotive All Rights Reserved The Futuris logo is a registered trademark [19]
 Expendable packaging systems

Intercontinental standard pallet

The use of the following pallet size is required 1140 x 980 x 127 mm
Full four way entry pallet with openings at both ends and sides is required
All wood packaging material must comply with the International Standards for Phytosanitary
Measures (ISPM 15 – Web site:www.ippc.com)
All wood pallets are required to be ISPM 15 certified and stamped in two opposite sides of
the pallet
Maximum load heights (containers plus pallet) must not exceed 1100 mm for standard, or
1250 mm for high cube sea container
All packs must be level layered. No pyramid stacking of cartons is allowed
Corrugated pallets, wood pallets, plywood pallets, laminated pallets are alternatives
Approved bulk only modular pallets;
– 1140mm (length) x 1140mm (width) x 130 (height)
– 1470mm (length) x 1140mm (width) x 130 (height)
Oversized pallets for heavy parts must be approved by Futuris in writing before delivery

Copyright © Futuris Automotive All Rights Reserved The Futuris logo is a registered trademark [20]
 Expendable packaging systems

Intercontinental standard pallet

Copyright © Futuris Automotive All Rights Reserved The Futuris logo is a registered trademark [21]
 Expendable packaging systems

ISO pallet and unit load

1087 1087 1087 1087

20CPL 10CPL 9CPL 6CPL

1087 1087 1087

5CPL 4CPL 3CPL

Maximum load heights (containers plus pallet) must not exceed 1100 mm for standard, or 1250 mm for high cube
sea container

Copyright © Futuris Automotive All Rights Reserved The Futuris logo is a registered trademark [22]
 Expendable packaging systems

Closure and securement

Plastic strapping
– Two bands lengthwise and two bands width wise are required
Metal banding, clips or buckles are prohibited
Stretch wrap
– Linear low-density polyethylene (LLDPE) and clear in colour are required
Polyvinyl chloride (PVC) film is prohibited

Copyright © Futuris Automotive All Rights Reserved The Futuris logo is a registered trademark [23]
 Expendable packaging systems

Labelling requirements
The Supplier is responsible to ensure correct labelling is provided for all packaging
Suppliers must label and ship in compliance with the requirements of carriers and follow all applicable
dangerous goods transportation requirements from organizations like International Maritime Dangerous
Goods (IMDG) and International Air Transport Association (IATA), including UN Hazard Communications
Standards.
All labels must be legible and electric scanner compliant
The labels must show the following details
– Futuris part number
– Product description
– Quantity
– Bar code
– Date/batch number
– Vendor name
There are 4 types of approved labels
– Shipping label: a label used to identify the contents of a shipping container
– Master label: a label used to identify and summarize the contents of a multiple pack
– Break point labels: a label used to identify parts which have been modified or have materials,
process or source of supply changes
– Mixed load labels are not permitted for trim pallets

Copyright © Futuris Automotive All Rights Reserved The Futuris logo is a registered trademark [24]
 Expendable packaging systems

Labelling requirements

Shipping label

Inner individual containers

should have labels with the
following minimum details
– Futuris part number
– Product description
– Quantity
– Bar code
– Date/batch number
– Vendor name

Copyright © Futuris Automotive All Rights Reserved The Futuris logo is a registered trademark [25]
 Expendable packaging systems

Labelling requirements

Master label

A master label must be used

to identify and summarize
the contents of a bulk or
multiple pack
A master label must show
the following details for each
component;
– Part number
– Description
– Quantity
A master label must be used
if the box contains two or
more different parts
numbers

Copyright © Futuris Automotive All Rights Reserved The Futuris logo is a registered trademark [26]
 Expendable packaging systems
Labelling requirements

Label placement
Shipping label (inner
label) must be placed on
the smallest and in the
right-hand side of the
box. Another label must
be placed in the same
position in the opposite
side

Bulk packaging labels

must be displayed in front
of every fork lift access.
The label must be placed
on the right-hand side of
the highest level of the
box.

A master label must be

used if the box contains
two or more different
parts numbers

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 Acceptable and unacceptable shipping practices

Packaging best practices

Acceptable Unacceptable

External or internal wooden supports are prohibited

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 Expendable packaging systems

Packaging best practices

HSC RSC
Half Slotted Container with Cover Regular Slotted Container

Acceptable Unacceptable

All box stiles are required to be Half Slotted Containers (HSC)

Regular Slotted Containers are prohibited (exception cartons that have perforated top flaps
for rip-away removal)

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 Acceptable and unacceptable shipping practices

Packaging best practices

Acceptable Unacceptable

Ensure the pack density is maximized

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 Acceptable and unacceptable shipping practices

Packaging best practices

Additional packaging to level unit load

Acceptable Unacceptable
Ensure correct level unit loads for shipment
Use additional packaging material to level unit load when required
Additional packaging must be used in the top layer only
Copyright © Futuris Automotive All Rights Reserved The Futuris logo is a registered trademark [31]
 Acceptable and unacceptable shipping practices

Packaging best practices

2000mm

1100mm

Acceptable Unacceptable

The maximum unit load height must not exceed 1100 mm for standard sea container and
1250mm for high cube sea container
Copyright © Futuris Automotive All Rights Reserved The Futuris logo is a registered trademark [32]
 Acceptable and unacceptable shipping practices

Packaging best practices

Acceptable Unacceptable

Pyramid or incomplete packs are unacceptable

Copyright © Futuris Automotive All Rights Reserved The Futuris logo is a registered trademark [33]
 Acceptable and unacceptable shipping practices

Packaging best practices

Acceptable Unacceptable

Overhang pallets are unacceptable

Copyright © Futuris Automotive All Rights Reserved The Futuris logo is a registered trademark [34]
 Acceptable and unacceptable shipping practices

Packaging best practices

Acceptable Unacceptable

Single stack is unacceptable

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 Acceptable and unacceptable shipping practices

Packaging best practices

Acceptable Unacceptable

Non standard load unit pallets are unacceptable

Copyright © Futuris Automotive All Rights Reserved The Futuris logo is a registered trademark [36]
 Acceptable and unacceptable shipping practices

Packaging best practices

Acceptable Unacceptable

Ensure good cube utilization of sea container

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