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ISO/TS 16949 & the
      Automotive Industry



www.cebos.com
Wrong Publicity = Damage
   Automobile recalls can damage a company's reputation &
   sales
• Public image takes a beating


   Toyota – recalled floor mats, sticky accelerator pedals,
   brake lights & airbags…




   Many foreign & U.S. automakers have had to deal
   with recalls affecting hundreds of thousands of vehicles

Page 2
Total Quality Management (TQM)




                     Began in Japan
                   • W. Edwards Demming and other TQM
                     pioneers brought new quality standards;
                     the quality management revolution began


                     Revolution Moved Around the
                     Globe
                   • ISO: 9001:2008 is the global quality
                     standard



Page 3
Quality Standards – Many Variations
   Specific industries have customized the quality
   management system

   ISO/TS 16949:2009
• Latest version for the automotive industry sector
• Specific quality requirements for the application of ISO 9001:2008


   Standard applies to:
• Manufacturers (e.g. GM, Ford, Toyota)
• Automotive parts/supplies/materials providers
• Auto-related services




Page 4
The Blame Game
                   Faulty Assembly?
                   Production?
                   Parts?
                   Not simple to pinpoint
                   the cause
                 • Thousands of parts &
                   processes
                 • Vehicle assembly     system &
                   subsystems

                   Wide variety of
                   suppliers
                 • Domestic & international


Page 5
Supply Chain Management
     Critical to
     producing a
     quality product     Well-defined,
                         documented &
                         controlled quality
                         management system

                       • Should exist at each step in the
                         automotive process

                       • Inspection programs are not
                         enough… no matter how
                         sophisticated



Page 6
ISO/TS 16949:2009
   Replaced 2002 version

   Emphasizes:
• Continuous improvement
• Elimination of variation, defects & waste in production & supply chain


   Components of ISO 9001:2008
• Quality system training can vary from operator to operator & includes
  employee job skills




Page 7
No Quality Management? The Price…
   Assembly lines running 24/7
• Defective parts or variation in assembly results in:
   • Lost money
   • Lost production time
   • Decreased customer satisfaction
   • Poor quality
   • Defective final products
   • Recalls
   • Exposure to liability
   • Negative publicity




Page 8
Automotive Supply Chain
   ISO 16949:2009 is generally required
• For suppliers to automotive OEMs
• ISO 9001:2008 quality system certification - optional for many industries



   Using suppliers without ISO certification weakens
   supply chain integrity

   Quality of end product is compromised




Page 9
OEM & Supplier Requirements




                        Use a process approach to
                        quality
                     • Verified & current procedures
                     • Proper documentation & records
                     • Available to all end users in production
                       process & supply chain


Page 10
OEM & Supplier Requirements
   Take a proactive approach to customer satisfaction
• Define customer requirements
• Build safety/reliability vs. fixing problems later


   Emphasize continuous improvement
• Everyone’s responsibility
• Best ideas may come from those who do the work every day
• Includes corrective & preventative action, plus proactive approaches
• Will minimize or eliminate need for corrective action & repeat problems




Page 11
Achieving Automotive Quality
  ISO/TS 16949 certification   Keep automotive
  is 1st step                  manufacturers off the
                               recall list – and drivers
  Next: ensure all OEM         safely on the road
  suppliers are certified

  Manage & continuously
  improve quality
  management systems

  Listen to customer
  requirements; exceed
  customer expectations

Page 12
Thank You
                                                         5936 Ford Court, Suite 203
                                                                Brighton, MI 48116
                                                              Phone: 810.534.2222
                                                           E-mail: info@cebos.com

        http://www.cebos.com/understanding-iso-ts-16949-and-the-automotive-industry/




www.cebos.com          Images used with permission from Microsoft.

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ISO TS 16949 and the Auto Industry

  • 1. ISO/TS 16949 & the Automotive Industry www.cebos.com
  • 2. Wrong Publicity = Damage Automobile recalls can damage a company's reputation & sales • Public image takes a beating Toyota – recalled floor mats, sticky accelerator pedals, brake lights & airbags… Many foreign & U.S. automakers have had to deal with recalls affecting hundreds of thousands of vehicles Page 2
  • 3. Total Quality Management (TQM) Began in Japan • W. Edwards Demming and other TQM pioneers brought new quality standards; the quality management revolution began Revolution Moved Around the Globe • ISO: 9001:2008 is the global quality standard Page 3
  • 4. Quality Standards – Many Variations Specific industries have customized the quality management system ISO/TS 16949:2009 • Latest version for the automotive industry sector • Specific quality requirements for the application of ISO 9001:2008 Standard applies to: • Manufacturers (e.g. GM, Ford, Toyota) • Automotive parts/supplies/materials providers • Auto-related services Page 4
  • 5. The Blame Game Faulty Assembly? Production? Parts? Not simple to pinpoint the cause • Thousands of parts & processes • Vehicle assembly system & subsystems Wide variety of suppliers • Domestic & international Page 5
  • 6. Supply Chain Management Critical to producing a quality product Well-defined, documented & controlled quality management system • Should exist at each step in the automotive process • Inspection programs are not enough… no matter how sophisticated Page 6
  • 7. ISO/TS 16949:2009 Replaced 2002 version Emphasizes: • Continuous improvement • Elimination of variation, defects & waste in production & supply chain Components of ISO 9001:2008 • Quality system training can vary from operator to operator & includes employee job skills Page 7
  • 8. No Quality Management? The Price… Assembly lines running 24/7 • Defective parts or variation in assembly results in: • Lost money • Lost production time • Decreased customer satisfaction • Poor quality • Defective final products • Recalls • Exposure to liability • Negative publicity Page 8
  • 9. Automotive Supply Chain ISO 16949:2009 is generally required • For suppliers to automotive OEMs • ISO 9001:2008 quality system certification - optional for many industries Using suppliers without ISO certification weakens supply chain integrity Quality of end product is compromised Page 9
  • 10. OEM & Supplier Requirements Use a process approach to quality • Verified & current procedures • Proper documentation & records • Available to all end users in production process & supply chain Page 10
  • 11. OEM & Supplier Requirements Take a proactive approach to customer satisfaction • Define customer requirements • Build safety/reliability vs. fixing problems later Emphasize continuous improvement • Everyone’s responsibility • Best ideas may come from those who do the work every day • Includes corrective & preventative action, plus proactive approaches • Will minimize or eliminate need for corrective action & repeat problems Page 11
  • 12. Achieving Automotive Quality ISO/TS 16949 certification Keep automotive is 1st step manufacturers off the recall list – and drivers Next: ensure all OEM safely on the road suppliers are certified Manage & continuously improve quality management systems Listen to customer requirements; exceed customer expectations Page 12
  • 13. Thank You 5936 Ford Court, Suite 203 Brighton, MI 48116 Phone: 810.534.2222 E-mail: info@cebos.com http://www.cebos.com/understanding-iso-ts-16949-and-the-automotive-industry/ www.cebos.com Images used with permission from Microsoft.