Challenges in Automotive Quality Standards

Challenges in Automotive Quality
Standards
(6July 2018)
For:
Cohu Malaysia Sdn Bhd
Heavy Industrial/Machinery/Equipment
No 5203-1, Jalan PAK 2/3,
Kaw. Per. Air Keroh Fasa 4,
75450, Air Keroh, Melaka
Presented by;
Timothy Wooi
ITS Management Sdn Bhd
Challenges in Automotive Quality Standards

 International Educational Leadership Speaker.
Provides consultation on Lean and leads Kaizen,
TPM, Cellular system & Moonshine set up.
 A multi skill Innovator with Mechanical background
that adopts Green Living and rode 18,290km thru 24
Countries over 5 months from Penang to London on
a 125 CC Kapcai.
 Founder of Tim’s Waterfuel, an alternative HHO gas
supplement using Water that adds power, millage &
reduce Co2 emission on automobiles.
 An NGO Community worker for Prison, Drug
Rehabilitation and Crisis Relieve & Training (CREST)
Malaysia, an organization that respond to Crisis &
Flood.
Timothy Wooi
Certified HRDF Trainer & Principal Consultant for Lean Management
and a Kaizen Specialist with 30 over years working experience.

Course Objective
This seminar training focus on the on the
Challenges in Automotive Quality Standards to
provide and equip Participants with a better
understanding of the requirement/s of TQM in an
Automotive Industry, its practices and to
understand the importance
to ensure Quality is built
into the product with Safety
in mind to safeguard
Customers from receiving a
Defect.

Class outlines:
This seminar/training covers understanding of Quality
requirements in Automotive Industry from evolution of the
Industry to Quality standards required in the Industry with
topics: 1) Evolution of Quality Management
2) Evolution of Automotive Industry
3) Lean Manufacturing
4) Evolution of Automotive Quality
Standards IATF 16949
5) Implementation of IATF 16949 with
ISO 9001:2015 Certification
6) Transition from ISO/TS 16949
7) Key changes in IATF 16949
8) Getting started with IATF 16949 with Tips
9) Getting support through IATF 16949
implementation
10) Relevant Trainings & References

What does ‘Quality’ means to you ?
Delighting .. 1st
meet, then exceed and 3rd
make you
happy!

In 21st
Century, Quality is “ Delighting the Customer by
continuously meeting and improving upon agreed specifications,
also continuous innovation on improvements”

continuously improve
the organization’s
processes,
products and
services.”
TQM involves ALL employees in using quantitative
methods to……………..

The Wasteful Factory, Craft Manufacturing
• Late 1800’s
• Car built on blocks in the barn as workers
walked around the car.
• Built by craftsmen with pride
• Components hand-crafted, hand-fitted
• Excellent quality
• Very expensive
• Few produced
Evolution of Automotive IndustryEvolution of Automotive Industry

• Assembly line - Henry Ford 1920s
• Low skilled labor, simplistic jobs, no pride in work
• Interchangeable parts
• Lower quality
• Affordably priced for the average family
• Billions produced – all identical “ You can choose any
color as long as its Black ”
The Wasteful Factory, Mass Manufacturing

• Cells or flexible assembly lines
• Broader jobs, highly skilled workers, proud of product
• Interchangeable parts with more variety
• Excellent quality mandatory
• Costs being reduced through process
improvements.
• Penetrate Global market and competition.
Pioneered by Taichii Ohno (Toyota Company) in 1970’s. A
new paradigm to simultaneously improve quality reduce cost
and reduce delivery time (QCD) from start of order.
The Lean Factory, Lean Manufacturing

Toyota Production System
Best Quality - Lowest Cost - Shortest Lead Time
Through shortening the Production Flow by Eliminating Waste
Just in Time
“The right part
at the right time
in the right amount”
• Continuous Flow
• Pull System
• Level Production
(Heijunka)
Jidoka
“Built in Quality”
• Manual / Automatic
Line Stop
• Labor-Machine
Efficiency
• Error Proofing
• Visual Control
Flexible, Capable,
Highly Motivated
People
Standardized Work
Total Productive Maintenance
Robust Products & Processes
Supplier Involvement
Operational
Stability
LEAN Manufacturing in Automotive IndustryLEAN Manufacturing in Automotive Industry

The globalization of trade
has exposes local
industries to new
Competitive pressures.
Old View: Cost + Profit = Price
New View: Price – Profit = Target Cost
Order Qualifiers in a Global Market:
Superior Quality, Competitively Priced, Quick Delivery
Order Winners in a Global Market:
Products and Services that are valued by the customer.

What is Automotive Quality Management
Standard?
IATF 16949 - the globally recognized Quality
Management Standard for the automotive industry.
It brings together
standards from Europe &
the US and provides a
framework for achieving
best practice with
regards to the design
and manufacture of
products for the
automotive supply chain.
Automotive Quality Management Standards

The standard developed by the International
Automotive Task Force (IATF) brought together
common processes from across the industry sector.
 Ford,
 Chrysler,
 VW,
 Renault,
 Citroen and Fiat
- along with national automotive trade organizations
from USA, UK, France, Germany and Italy.
IATF comprises of 9 member vehicle manufacturers:
 GM,
 BMW,
 Daimler,
 PSA Peugeot,

History
Started in 1999, as an ISO/TS 16949 technical
specification aimed to develop a quality
management system for Continuous Improvement,
emphasizing;
 defect prevention
and reduction of
 variation and waste
in the automotive
supply chain.

ISO/TS 16949, first developed in 1999,
has now become one of the most widely
used INTERNATIONAL STANDARDS in
Automotive Industry
IN 2016, International Automotive Task
force (IATF) evolved a new Global
Automotive Industry Standard named
IATF 16949.
Transition from ISO/TS 16949 to IATF 16949

To deal with the new challenges and constant changes
in the automotive industry, IATF and ISO discontinue
their ISO/TS 16949 with a new standard: IATF 16949.
Challenges in Quality Standards meeting Changes
This new standard
supersede and
replace ISO/TS
16949:2009, defining
the requirements for
automotive industry.

IATF 16949 aligns with the most recent version of
ISO 9001:2015, fully respecting its structure and
requirements.
This means that companies
seeking
IATF 16949 certification
must also comply with
ISO 9001: 2015
requirements.
Implementation of IATF 16949 with ISO 9001:2015

IATF 16949 management system integrates with
ISO 9001:2005 QMS.

Therefore, IATF 16949 alone will not be a self-
sufficient quality management standard.
The goal is to emphasize;
defect prevention,
provide continuous
improvement, and
reduce waste & disparity
in the supply chain.

The four phases in the Plan-Do-Check-Act Cycle
The Plan-Do-Check-Act (PDCA) methodology

The Plan-Do-Check-Act (PDCA) cycle is the
operating principle of all ISO management system
standards, including IATF 16949.
Whether you are the
managing, setting the
direction of the business, or
focusing on a specific task,
the PDCA cycle is a very
useful tool in achieving
continuous improvement.

The four phases in the Plan-Do-Check-Act Cycle involve
Correct and improve
your plans to meet
and exceed your
planned results
Establish objectives and
draft your plans (analyse
your organization’s
current systems,
establish overall
objectives, set interim
targets for review and
develop plans to achieve
them)
Measure and
monitor your actual
results against your
planned objectives
Implement your plans within a
structured management
framework

Quality Management Techniques has long made
Automotive Industry efficient and productive within
the global economy.
Certification to the
standard provides firm
evidence that your
management system
meets the exact
requirements of the
automotive sector.
Why IATF 16949 Certification

The certificate is valid for ony three years and must
be confirmed annually (as a minimum) by an IATF
Certified Auditor (3rd Party Auditor) of an
IATF recognized certification body.
Re-certification is
required at the
expiry of the three-
year period.
Certification to IATF 16949

Internal Audit is required to ensure compliance
for Re-certification before the expiry of the
three-year period.
Certification to IATF 16949

For organizations currently certified to ISO/TS 16949,
here is a 5 step recommendation action plan for
transitioning:
 1. Familiarize yourself with ISO 9001:2015 and
IATF 16949.
 2. Perform a gap analysis against ISO 9001:2015
and IATF 16949 to identify the differences that
need to be addressed to meets all the new
requirements, including those related to external
providers.

 3. From results of the gap analysis, develop an
implementation plan specific to your
organization.
 4. Provide appropriate training for all
individuals involved in implementing ISO
9001:2015 and IATF 16949 at your
organization.
 5. Update your existing system and provide
evidence that your organization meets the new
requirements.

Gap analysis to identify potential loopholes.
At your discretion, identify your ‘current situation’,
any weaknesses and ‘where you want to be’.
Draw an Action plan to fill the identified gap..

Shaping IATF 16949 to fit the needs of your business
IATF 16949 is used by automotive companies of all
types and sizes. Adopting IATF 16949 with your
present systems need not be an expensive process.
A project action plan is all
that is needed to
accommodate the
requirements of smaller
organizations with different
challenges.

Project Implementation Plan to adopt IATF 16949

07/04/18 35
I build it,
You inspect
I inspect,
You build
Quality is Everyone’s responsibility

IATF 16949 ensures quality requirements are met,
reducing the risk of product and service failure for
automotive production, service and/or accessory
parts organizations.
Certification to IATF
16949 is mandatory for
organizations who wish
to manufacture parts for
the automotive industry.
Why IATF 16949 is required in Automotive Industry?

The 6 key changes in IATF 16949
1.Risk-based thinking
2.Specific customer requirements
3.Competence of first and second party auditors
4.Product safety
5.Manufacturer feasibility
6.Warranty management
The key changes in IATF 16949

1.Risk-based thinking
To maximize potential of planned activities & minimize
chance of failures in new programs development, a
number of specific risk-related requirements re
included.
The requirements are;
All companies to ensure the compliance of all
products, processes, parts and services, including
all those that are outsourced.
The company must have a system to mitigate
the risks of non-conformity throughout the supply
chain.

2.Specific customer requirements
Some common industry practices found in customers’
specific requirements were incoporated. The objective
is to facilitate demand for specific customer
requirements in these areas.
It is also crucial to
distinguish customer
requirements and
customer-specific
requirements (TSRs).
These two terms are
defined in IATF 16949.

3.Competence of first and second party auditors
Requirements added to IATF 16949 concerning
first and second party auditors, includes:
 Companies must have a documented process to
verify the competence of the internal auditor.
 When training internal auditors, documented
information should be kept to demonstrate the
trainer’s competence with regard to the additional
requirements.
 Companies must demonstrate the competence of
second party auditors, and second party auditors
must meet the client’s specific requirements for
auditor qualification.

4.Product safety
Companies in transition must have documented
product safety management processes related to
product and manufacturing processes.
This clause is to ensure that every product
performs its intended or designated function,
without causing any unexpected loss or damage.
Processes must be implemented in all
companies to ensure the safety of products
throughout their lifecycle.

5.Manufacturer feasibility
In the new IATF 16949, the company must assess
whether it has the ability to meet the time and
performance targets stipulated by customers,
known as manufacturer feasibility. ISO/TS 16949
also required the same analysis of manufacturer
feasibility, but specific requirements were not
imposed.

6.Warranty management
Added based on the increasing importance of
warranty management, consolidating IATF OEM
(Original Equipment Manufacturer) specific
customer requirements.
To validate No Trouble Found (NTF), the warranty
management process must address and integrate all
specific customer requirements and warranty analysis
procedures.
In addition, where applicable, decisions must be
agreed upon by the customer.

Getting started with IATF 16949
IATF 16949 is applicable to any organization
regardless of size or geographical location.
While the standard sets
out a best practice
framework for automotive
quality management, it is
written in a way which
gives you flexibility to
adapt, to meet your
individual business
objectives

IATF 16949 requires you to demonstrate that you
have a systematic approach to quality management
specific to the automotive industry.
To achieve this, the
standard requires you to
review and improve your
system to ensure on-going
best practice and a
commitment to continual
improvement.

Purchasing a copy of the standard is your first step.
The standard details the processes you will need to
put in place in order to meet the requirements of
IATF 16949.
The principal requirements of the standard
are illustrated below:

Establish,
implement,
maintain and
improve a quality
management
system in line
with the
requirements
of IATF 16949
Demonstrate
processes
are in place
to measure,
document
and analyze
performance
to identify areas
for improvement
Follow a
systematic
approach to
achieving
continual
improvement

HIGH RISK, HIGH COST
Automotive industry produces high-risk, high cost
products and services with tightly controlled industry
requirements; therefore, IATF 16949 better aligns with
the needs of its stakeholders.
The goal of this standard is
to develop of a QMS that
provides for continuous
improvement, emphasizing
defect prevention, and the
reduction of variation and
waste in the supply chain.

10 tips on making IATF 16949 work for you
1.Top management commitment is vital for the
system to be introduced successfully.
Make sure senior
managers are actively
responsible, involved,
approve resources and
agree to the key
processes.

2.Make sure your whole business and supply chain
are committed to business improvement.
Engage them
with a sound
communications
strategy.

3.Establish a competent and knowledgeable
implementation team to deliver best results.
Share roles and
responsibilities

4.Review systems, policies, procedures and
processes you have in place at the moment.
Compare with IATF 16949 and get supply chain
and stakeholder feedback on your current quality
processes.

5.Adapt the basic principles of ISO/TS 16949
standard to your specific business objectives
and environment.

6.Clearly lay out a well-communicated plan of
activities and time scales.
Make sure
everyone
understands
them and
their role in
achieving
them.

7.Consider using a quality Management Software
to manage your system.
This will help
you achieve
sustained
compliance
with key IATF
16949
requirements.

8.Train your staff to carry out internal audits.
Audits can provide
valuable feedback on
potential audits and
opportunities for
improvement.

9.Encourage your supply chain to become certified
to IATF 16949 .
It allows them to
benefit from a robust
end to end system.

10.Regularly review your IATF 16949 management
system.
Make sure it remains
appropriate, effective
and delivered continual
improvement.

Get support throughout the implementation of IATF 16949
If you are new to management systems, this may
seem rather daunting at first, don’t worry-
– engage a certified IATF
Quality System Consultant
to help you on the
implementation of IATF
16949 and put you on the
right track for success

Once you have a Quality System in place, exercise
best practice on your journey towards excellence.
Commit to best practice and start making
excellence a habit
Your staff get started
using useful self-
assessment tools in
the automotive
sector and will clearly
understand the
specific challenges.

Engage your team and the rest of the organization
Success will depend a lot on team effort so get the
backing of your organization by helping them
understand how they can contribute to the system.
Consider whether
people have the
necessary skills and
if not equip them
accordingly.

Get ahead with pre-assessment and identify
potential loopholes
Many clients like to get reassurance that they are on
the right track before committing to the official stage 1
assessment.
At your discretion, the
consultant will carry out
an optional ‘gap-analysis’
or pre-assessment visit to
help you identify any
weaknesses or omissions
prior to the formal
assessment.

Celebrate the achievement of your official IATF
16949
The Consultant will assess your management
system in two stages.
‘Stage 1’
Visit will involve the review of the system
against the requirements of the standard.
‘Stage 2’
A follow-up to check that you have corrected and
progressed any issues raised in the first stage.
Now is the time to celebrate your success.

Use your certificate to promote your business
Once certified, you’ll be able to make your own mark
by displaying the Assurance Mark.
It’s a valuable
marketing tool that you
can use to promote
your organization,
differentiate you from
your competitors and
win new business

Help for continuous improvement
The consultant firm support has to extend far beyond
the issue of a certificate.
Your certificate is valid for
three years however the
Consultant team will
continue to work with you
to ensure that your
business remains
compliant and you strive
for continual improvement.

For Choosing ITS Management Sdn
Bhd
As Your Training Provider
If you have questions or require further assistance
later, please email to:
Itslc98.help@gmail.com
Email Subject: “Attn: Timothy Wooi”
Other inquiries, please email to:
itslc98@gmail.com

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