by Robin O’Connell
As anyone who’s experienced
the process can attest, implementing a quality standard
can be an intimidating task. Certainly ISO/TS 16949:2002,
the new quality management system for the automotive industry,
seems at first glance as daunting as others of its kind.
However, knowing how to address implementation challenges
in advance makes achieving a successful management system
much more realistic. Implementation veterans agree that
starting the ISO/TS 16949 process early will save unnecessary
headaches and costly problems in the future.
The International Automotive Task Force designed ISO/TS
16949:2002 with smooth implementation in mind. One of IATF’s
goals was to improve the implementation process, which had
been criticized by many organizations that implemented QS-9000
and ISO/TS 16949:1999.
To assist ISO/TS 16949’s new approach to quality
management, the Automotive Industry Action Group published
an implementation guide. Developed by a committee of suppliers,
automotive manufacturers and certification industry experts,
the manual walks readers through the complete implementation
process.
Delphi Corp.’s Terri Pratt and American Axle and
Manufacturing’s Kelli Rogers went through the ISO/TS
16949:2002 registration process. They both contributed to
the AIAG’s guide and, in doing so, identified five
crucial points an organization should master before designing
an ISO/TS 16949:2002 quality management system.
ISO/TS 16949:2002 is based on the ISO 9001:2000 quality
management system standard. ISO 9001:2000’s approach
to quality management is significantly different than that
of ISO 9000:1994, the quality standard on which QS-9000
and ISO/TS 16949:1999 were based. ISO/TS 16949:2002 includes
new guidance for automotive suppliers, but ISO 9001:2000
is the central tenet of ISO/TS 16949:2002. Companies implementing
ISO/TS 16949:2002 will find ISO 9001:2000’s relevant
content highlighted in boxed text.
“The single most significant change in 2002’s
ISO/TS 16949 is the dramatic increase in customer focus,”
Pratt notes. Significantly more emphasis is placed on customer
satisfaction in the latest revision. The IATF, which developed
ISO/TS 16949, expects 2002 audits to focus heavily on customer-oriented
processes, or COPs.
COPs underscore the need for organizations to include
customer input as an essential part of meeting customer
requirements. “Understanding customer requirements
drives not only the COPs but also the measurement and goal
of customer satisfaction--both major focuses of ISO/TS 16949:2002
audits,” Pratt adds. “By meeting customer requirements,
customer satisfaction can be achieved.”
Customer satisfaction is accomplished by adding value
to the product-realization processes. These processes include
developing, constructing, distributing and managing an organization’s
product.
There are 15 new or expanded requirements in ISO/TS 16949:2002.
Four major differences from previous automotive quality
requirements include:
Management commitment. Management’s role as a key
player in the process is emphasized more in ISO/TS 16949
than it was in QS-9000. Top management has certain responsibilities
that it must accept rather than delegate to others. Prepare
top managers to become more involved with the registration
audits.
Customer communication. At least 50 percent of the audit
will focus on customer-specific requirements.
Measurement. Metrics, trends, analysis and improvement are
heavily reviewed during audits.
Internal auditor qualifications. Focus on customer-specific
requirements for auditor qualifications.
ISO/TS 16949:2002 made a great leap from the 1999 version’s
vertical breakdown of the process approach. ISO/TS 16949:1999
divided organizations into distinct units--also called the
“silo” approach--and assessed each part as a
separate entity. This didn’t account for the sequence
and interaction of their processes.
“The process approach is horizontal,” Rogers
says. “A process is a set of interrelated or interacting
activities that transform inputs to outputs. It considers
the entire system and its linkages. The process approach
can look at the links within an organization and confirm
that they’re functioning or if there’s a disconnect.
Determining disconnects opens opportunities for improvement
not previously recognized under QS-9000 or ISO/TS 16949:1999.”
Determining what customers require will help an organization
develop its quality management system. The figure on page
25 illustrates how customer requirements are applied to
each step of a product’s life cycle. The final output
should result in customer satisfaction.
The process approach begins and ends with the customer.
“Jumping from an elemental approach to the process
approach is a challenge,” Pratt admits. “The
key isn’t just containing problems discovered while
implementing and auditing ISO/TS 16949, which may be a temporary
fix, but also addressing daily business with the links in
mind.”
An organization’s measurement techniques are also
highlighted for review during ISO/TS 16949 audits. Does
the organization understand the measurements? Do they make
sense? Correctly selecting what business elements to measure
and how to approach that process will lead to greater customer
satisfaction.
“Avoid frequently used measurements that don’t
provide useful feedback,” Rogers recommends. “Instead,
choose measurements that apply to the individual characteristics
of the organization. The goal is to communicate productive
information with the results and provide a baseline for
continual improvement. Auditors will have an idea of areas
to measure, but internal management knows best what will
be most telling for the company.”
Frank Lomas, BSI’s technical certification manager,
was another member of the team that put together the AIAG’s
implementation guide. “Customer rating and customer
complaint measurements are a good place to start when looking
to assess internal results,” he says. “Customer
complaint responses are particularly useful for tracking
efficiency and effectiveness, the ultimate objectives of
ISO/TS 16949.”
Align organizational activities to the measurements most
important to the customer. Using customer feedback captured
by pertinent measurements will help ensure that the customer’s
perspective is central to the management system’s
objectives.
Measurement on the manufacturing floor is done in a variety
of ways, but measuring a process in an office environment
can be more difficult. Carefully scrutinize potential measurements.
Are they the right ones? Do you need to create a new measurement,
or does one naturally lead to another? Be sure to align
measurements with the objectives of the process approach.
“The great thing about ISO/TS 16949 is that it was
developed with an aim of getting away from the compliance
that grew out of QS-9000,” Lomas emphasizes. “The
assessments are focused on improving efficiency and effectiveness.”
Unlike QS-9000, ISO/TS 16949 goes beyond basic compliance
and seeks organizational efficiency and effectiveness from
quality management systems.
Effectiveness is determined by assessing the system’s
outputs in relation to its inputs, comparing process outputs
to the organization’s objectives and analyzing the
measurements used to track progress. If measurements aren’t
telling the right story, they must be reconsidered.
The quality management system’s effectiveness will
be extensively reviewed during audits. The ability to show
examples of business tracking and striving for continual
improvement will also be expected.
Meeting expectations might satisfy certification requirements,
but a little extra thought and effort can provide additional
bottom-line savings and overall business improvement. “This
is a common-sense standard,” says Pratt. “If
you have an ‘implement and forget it’ attitude,
you’ll miss the point and the benefits that ISO/TS
16949 can provide.”
Being both effective and efficient creates a common language
between the customer and the organization. For example,
a company might be effective in producing a quality product
due to containment efforts, and customer ratings might show
this. But at the same time, the process to achieve these
results might not be efficient because of the extra personnel
needed to sort the product.
“Efforts to achieve balance go hand in hand with
continual improvement,” Lomas explains. “ISO/TS
16949’s flexibility allows audits to tailor to individual
organizations--they don’t have to fit the same model
to accomplish company goals.”
“Learn from other companies’ pitfalls,”
advises Rogers. “Others have already gone through
the process of upgrading and have encountered situations
that should be avoided. Knowing these situations ahead of
time is a great way to start.”
Techniques for avoiding the common pitfalls of each stage
of implementation follow.
Select a registrar. Not all registrars accredited to register
companies to QS-9000 are qualified to register to ISO/TS
16949. Delphi and American Axle used BSI Management Systems
to register more than 50 sites. Delphi consolidated 35 sites
to a single “corporate” registration. American
Axle upgraded 11 facilities to ISO/TS 16949:2002 with 11
unique registrations.
Switch registrars if needed. If you decide to change from
your QS-9000 registrar, you’ll not be able to receive
a discount on personnel-days for your upgrade.
Have customer-specific requirements. Many automotive manufacturers
have developed certain documented requirements. Note that
several OEMs and tier-one customers have likewise composed
customer-specific requirements of their own. “Obtain
copies of all requirements before registration and plan
accordingly,” Lomas stresses. “Too often these
are overlooked, and the certification process is delayed.”
Ensure the timeliness of registration. OEMs won’t
be sympathetic to suppliers that miss the required registration
date. Organizations should plan well in advance for their
transition. Remember, there are significantly fewer accredited
registrars and auditors available to perform ISO/TS 16949
services than there are for ISO 9001 services.
Schedule multiple sites. When several sites are involved
in a company’s registration, it’s advisable
that the sites with the supporting processes be audited
first. During multiple site registrations, auditing the
supporting processes during the earlier stages of registration
allows the audit team to adequately assess the interactions
among all the sites. The manufacturing site can’t
receive registration until the support sites have been audited.
Know the auditor. ISO/TS 16949 has certain requirements
for third-party auditors, including prior experience in
the organization’s field. Being familiar with an auditor’s
background can assist the organization in determining the
auditor’s areas and level of expertise. Requesting
a biography or other information from new auditors for review
is common.
Management responsibility. Management should play
a supportive and directive role in an organization’s
quality management system. A show of management support
and direction for ISO/TS 16949 is required.
Competence, awareness and training. ISO/TS 16949
training requirement goes beyond QS-9000 requirements. Not
only must the organization show that it has trained its
employees appropriately, but it must also show that employees
are competent at their jobs.
“Employees must be aware of their effect on the
quality objectives and goals of the organization,”
Rogers says. “Auditors will seek proof that employee
competence requirements are in place and actively followed.”
Act quickly. A follow-up of any major or minor
nonconformances found by the registrar should be addressed
quickly, with any necessary corrective actions planned and
organized immediately. During the initial audit, if a major
or minor nonconformance is issued, the registrar will inform
the organization of the time required for submitting a corrective
action.
Auditors are on the lookout for organizations that try
to sell their developed ISO/TS 16949 plans but don’t
practice them on a daily basis. Management must not only
understand the management system in place but must also
continually participate in its upkeep.
As automotive supplier deadlines approach in 2004 and
beyond, getting a jump-start on ISO/TS 16949 planning is
a wise move. Audits will focus on activities and objectives
most important to customer satisfaction. Begin by understanding
the process approach and then practice it daily. “Step
back and see your management system as a whole,” Rogers
recommends. “Use common sense, and take advantage
of the standard to improve your business.”
Robin O’Connell is head of public relations for
BSI Management Systems in the Americas. Contact O’Connell
by calling (703) 464-1903, or visit www.bsiamericas.com.
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