December 2003

Managing Product Quality - A Guide to ISO/TS 16949:2002

The automotive industry has, for many years, led the development and adoption of quality systems. Vehicle Manufacturers consistently see improved performance from suppliers who implement quality management systems.

Several distinct automotive sector based variants of the ISO 9000 series were developed by major automotive groups to be more automotive specific. This meant that suppliers serving multiple vehicle manufacturers had to comply with differing quality system requirements. ISO/TS 16949:2002 provides a common standard for major automotive quality requirements and will eventually replace other standards.

How was it developed?

With a vision to harmonise automotive quality system requirements, an International Automotive Task Force (IATF) was established, with representatives from many of the major European and North American vehicle manufacturers, suppliers and automotive trade associations. In collaboration with the International Standard Organisation (ISO), the group developed and published " ISO/TS16949: 1999-Quality Systems-Automotive Suppliers-Particular requirements for the application of ISO9001: 1994". The specification was developed with input from the four established automotive standards, QS-9000, VDA6.1, EAQF and AVSQ, to define requirements that guarantee quality products to automotive customers worldwide and was revised and updated in 2002.

What does ISO/TS16949: 2002 require?

ISO/TS16949: 2002 focuses on an organisation's ability to achieve its stated goals and objectives - to achieve customer satisfaction by delivering conforming parts on time, to specification and at an acceptable cost. It links the company's business plan, quality policy, quality objectives and quality measures with planning how goals can be achieved.

Key requirements include:

Top management involvement including establishing and implementing a business plan, related to clearly defined and measurable quality objectives.
Clear definition of responsibilities, covering shift activities and authority to stop production to correct quality problems.
Top management review of the performance of the quality system, including reporting and evaluating the cost of poor quality.
Human Resource management processes such as defining competence requirements, providing training (including on the job training for employed and temporary / agency personnel), and verifying the effectiveness of actions taken.
Motivating employees to achieve quality objectives, makes continual improvement, and creates an environment to promote innovation.
Measuring the extent to which personnel are aware of the relevance and importance of their activities and how they contribute to the achievement of the quality objectives.
Improving product and process design.
Use of core tools: Statistical Process Control (SPC), Failure Mode Effect Analysis (FMEA) and Measurement System Analysis (MSA).
Development of suppliers to also use ISO/TS16949: 2002.
Controlling production by use of control plans including provision of adequate work instructions.
Ensuring effective control of internal and external laboratories.
Measuring customer perception and satisfaction .
Undertaking effective system, process and product audits. Effective analysis of data to drive continual improvement .
Providing evidence of continual improvement through the organisation and manufacturing process improvement .

Why is implementing TS 16949 important?

With the "Big 3" OEM's, and many lower volume manufacturers all publicly declaring their commitment to ISO/TS16949, the supply chain pressure to adopt the standard is increasing. For some 1st tier suppliers, customer deadlines of mid-2004 are looming. However implementation and accreditation are slow processes and therefore this target may well need to be re-evaluated. Writing, developing and implementing quality management systems depend on time and money. Whilst 1st and 2nd tier suppliers may adapt, smaller suppliers may need help as the requirement for ISO/TS 16949 is implemented down the supply chain.

A combined approach to developing systems, where companies use shared knowledge and experience is seen as an ideal method for smaller automotive suppliers to benefit from the necessary changes. This networking approach has been successfully implemented across many systems-based areas through Pro Enviro's own "Network for Change" programmes. These are run in conjunction with the Accelerate Team from Birmingham and Solihull Chamber of Commerce. Non-competing companies from within the automotive sector are encouraged to interact with each other in order to overcome many of the obstacles and issues that implementing systems can cause. Each company can then develop its own system from the common platform that Pro Enviro helps create.

To survive in an ever-competitive automotive supply chain achieving ISO/TS16949 will become a minimum requirement. Many vehicle manufacturers are mandating their suppliers to comply with ISO/TS16949 and others are sure to follow.

For more details on the "Network for Change" programme contact Aneeta Patel.