By Matthew Pavelek Boise State University ISO/TS 16949:2002 This presentation is on the new automotive standard ISO/TS 16949:2002 By Matthew Pavelek Boise State University

What will be covered Definition Brainstorming Exercise Explanation The purpose and benefits Example Summary

Definition ISO/TS 16949:2002 is the newest automotive quality standard which was developed to be aligned with the ISO 9001:2002 standard It is a worldwide accepted standard for suppliers of automobile manufacturers ISO/TS 16949:2002 was released in March, 2002, and will replace the ISO/TS 16949:1999 standard which was cancelled with the release of of the 2002 standard.

Brainstorming Exercise Brainstorm on how a new quality standard can benefit your company Brainstorm on the type of quality improvements that can be made in your company Have people brainstorm and write or say what they think of

Developers of ISO/TS 16949:2002 The ISO/TS 16949:2002 standard was developed by an ad hoc group of automotive manufacturers and their respected trade associations The goal was to develop a universally accepted set of quality management standards for the automotive industry The goal of the ISO/TS 16949 standard was to develop a universally accepted set of standards that would replace the need to have multiple certifications to serve Europe, the U.S., and Asia

Developers of ISO/TS 16949:2002 The partnership that developed the ISO/TS 16949 standard was comprised of the following groups International Automotive Task Force (IATF) Japan Automobile Manufacturers Association (JAMA) With the support of the ISO technical committee ISO/TC 176 The IATF included the BMW Group, DaimelChrysler, Fiat Auto, Ford Motor Company, General Motors Corporation, PSA Peugeot-Citroen, Renault SA and Volkswagen, plus national trade associations, AIAG (America), VDA (Germany), SMMT (UK), ANFIA (Italy) and FIEV (France). Japanese vehicle manufacturers association, JAMA, have been involved in the development of ISO/TS16949:2002, and are expected to join IATF as full members in due course.

Development of ISO/TS 16949:2002 ISO/TS 16949:2002 is the international equivalent and combination of the following standards QS-9000 (USA) EAQF (France) VDA6 (Germany) AVSQ (Italy) It is the equivalent of QS 9000 when coupled with customer specific requirements. It was developed rather than continue with another revision of QS-9000 The ISO/TS 16949 standard was developed by the IATF, with Asian manufacturer input, and combined the main requirements of existing automotive quality standards

Development of ISO/TS 16949:2002 ISO/TS 16949:2002 was developed to be aligned with the new ISO 9001:2000 ISO/TS 16949:2002 was implemented in March 2002 to replace ISO/TS 16949:1999 The revision of the ISO/TS 16949 documentation was necessary to align itself with the ISO 9001:2000 text.

Development of ISO/TS 16949:2002 BSI Management Systems-available at emea.bsi-global.com

Purpose of IATF in ISO/TS 16949 Development To develop a consensus regarding international quality requirements Develop policies and procedures to ensure worldwide consistency Provide training to support ISO/TS 16949 Establish formal liaisons to support objectives The goal of the quality requirements consensus pertained to the participating companies’ direct suppliers of materials, parts, or finishing services.

Reasons for ISO/TS 16949:2002 implementation Recognized internationally There are no plans to update QS-9000, VDA6.1, EAGF, or AVSQ Suppliers are either required or encouraged to upgrade to ISO/TS:16949 Provides a set of quality standards and requirements that is recognized internationally Vehicle manufacturers are either requiring suppliers to upgrade to ISO/TS 16949 or encouraging suppliers to upgrade with future requirements likely

Reasons for ISO/TS 16949:2002 Eliminates the need for multiple registrations Technical specifications compliment current quality improvement methodologies Avoids requirement of VDA6.1, EAQF, AVSQ, & QS-9000 It complements improvement philosophies such as Six Sigma, PPAP, and FMEA

QS-9000 Current plans are not to eliminate No current plans to update Has reached the end of its development life Is no longer supported by manufacturers or suppliers Will expire on December 15, 2003 Though there are no current plans to eliminate the QS-9000 standard but there are no plans to update the latest QS-9000 standard Many vehicle manufacturers and their suppliers feel that the Qs-9000 standard has reached the end of its development life certification to QS-9000 will have until 14th December 2006 to upgrade to ISO/TS16949:2002.New certification to QS-9000 will be possible until 14th December 2006, but all QS-9000 certificates will become obsolete from 15th December 2003

Problems with QS-9000 Problem suppliers are able to maintain registration Does not utilize the process approach to quality management Falling credibility of certification process Is not a universally accepted certification Problem suppliers have been able to maintain QS-9000 certification and bureaucracy has made change or further development difficult. QS-9000 has not been updated to the current business thinking of process utilization in the approach to quality management QS-9000 suppliers would need to obtain VDA6.1, EAQF, and AVSQ certifications for Europe and Asia

ISO/TS 16949:2002 Implementation Is not at this time an overall replacement for QS-9000 Renault and PSA strongly recommend upgrading to ISO/TS 16949 Ford, GM, and DaimlerChrysler currently recognize ISO/TS 16949:2002 Ford, GM, and DaimlerChrysler will replace QS-9000 with ISO/TS 16949 Ford, GM, and DaimelChrysler will require ISO/TS 16949 instead of QS-9000 after December 14,2006

ISO/TS 16949:2002 VS QS-9000 More demanding than QS-9000 by requiring Senior management involvement Product realization Analysis and improvement Supplier development Organizational performance It is more demanding because it has strengthened key areas that will benefit the manufacturers and customers Requires senior managers to communicate and set quality objectives Requires product realization throughout the process from planning all the way to after sales service Analysis and improvement is used continually to improve product quality and processes Organizations must commit to improving their own supply base Organizational performance must focus on quality, delivery, and customer performance

Goals of ISO/TS:16949 Continual improvement Defect prevention Reduction of variation Reduction of waste in the supply chain

ISO/TS 16949:2002 Requirements A focus on continual improvement Customer satisfaction requirements Preventative action process Improved employee training requirements The ISO/TS system has gone beyond QS-9000 with an incresed focus on continual improvement, requirements to monitor customer satisfaction, and an emphasis on employee training and education

ISO/TS 16949:2002 Requirements Required communication with suppliers and customers to assure quality Improved employee quality responsibilities Employees are more responsible for quality, and quality assurance employees have enhanced requirements for availability

ISO/TS 16949:2002 Requirements Includes detailed, sector specific requirements for Employee competence Awareness and training Design and development Production and service provisions Control of monitoring and measuring devices Measurement, analysis, and improvement Employee competence is required through education and quality responsibility

Benefits of ISO/TS 16949:2002 Improved supplier product Improved process quality Improved global sourcing confidence Common, consistent quality systems approach The ISO/TS 16949 certification has increased supplier product and process quality requirements. It also provides global sourcing confidence sue to the alignment of certification requirements.

Example Wescast Industries earned ISO/TS 16949 certification Certified for all five of its Ontario manufacturing facilities Recognizes commitment to quality and customer requirements Significant to customers Will increase global presence Wescast’s five Ontario manufacturing facilities obtained the certification in 2002. CEO of Wescast Industries stated that they were “proud to receive this internationally recognized standard of quality.” he further stated that “this certification is significant to our current and future customers and will increase our global presence”.

Summary ISO/TS 16949 is clearly the superior certification due to Worldwide acceptance Only one necessary certification Support from both suppliers and manufacturers

Summary Cont. Compatibility with current quality improvement philosophies Improved focus on senior management development, employee involvement, and customer significance Enhanced certification requirements Focus on processes

References International Organization for Standards: Ref.:818, March21,2002 BSI Management Systems-available at emea.bsi-global.com International Automotive Oversight Bureau-available at www.iaob.org Supplier letter from DaimelChrysler, GM,and Ford. Dated August 2002

References Eagle Group USA, INC-available at www.eaglegroupusa.com Future of APQP and PPAP in doubt. Quality; Troy: Jan2002; Roderick A Munro Wescast Earns ISO/TS 16949 Certification. Business Wire; July 2, 2002