Automobile

1. ISO/TS 16949:2002

2. Expiration of QS-9000
ISO (Geneva, Switzerland) has stated that
QS-9000 has been extended by 3 years,
and will expire on 14 December, 2006
ISO has indicated that there is virtually no
chance of additional extensions,
nominally, the ISO 9000:1994 standard
embedded within QS-9000 will expire 15
December, 2003.

3. Two Key Organizations
International Automotive Task Force
International Automotive Oversight Bureau

4. Purpose of the IATF
 Develop consensus for international quality
system requirements (automotive)
 Develop policy & procedure for registration
 Provide appropriate training
 Serve as formal liaison

5. IATF Members
 Authoring Organization of ISO/TS 16949
includes:
 Vehicle manufacturers: BMW, DaimlerChrysler,
FIAT, Ford Motor, GM, PSA, Renault, Volkswagen
 Industry trade organizations: AIAG, ANFIA, FIEV,
SMMT, VDA
 Guest members: JAMA

6. IATF Oversight
 ANFIA, IAOB, IATF-France, SMMT, VDA-QMC
 Implementation of IATF registration scheme and
rules via a common process
 Witness audits
 Auditor qualification training and exam
 Monitor CB/auditor performance
 Apply and implement IATF policy and decisions
 Coordinate special projects and work teams
 Develop sanctioned interpretations and
recommendations for improvement
 Database management

7. Purpose of IAOB
 Implement and manage 16949 registrations
 Manage and coordinate with IATF Europe
 Support further global consistency
 Develop and maintain central database

8. Which Car Manufacturers Will
Accept ISO / TS 16949?
 The users of -
QS-9000 - US Big 3
VDA 6.1 - German
AVSQ - Italian
EAQF - French

9. Why Upgrade to TS?
From the OEM subscriber’s view:
 TS 2nd is based on the current ISO 9001:2000
 Includes Customer Specifics to achieve
conformity
 Improved control of the auditing process
 Reduced audit variation
 Better control of certification and its value

10. Why Upgrade to TS?
From the supplier’s point of view:
 Reciprocal recognition (one size fits all)
 Vocabulary is consistent with ISO 9001:2000
 Process audit is aligned with the way the
automotive business is run
 Continual improvement from earlier requirements
documents (e.g., TS 1st, QS-9000, EAQF, AVSQ,
VDA 6.1)
 Closer oversight – greater value in certification

11. ISO/TS 16949:2002 Addresses
Significant QS-9000 issues
• The Oversight process
- Tighter registrar control than with QS-9000 Accreditation Body
method, and higher quality auditors
• International recognition of ISO/TS 16949:2002
- The Multinational OEM authoring group reduces the number of
certification requirements in Europe, and therefore cost
• ISO/TS 16949:2002 is based on and includes ISO 9001:2000
- ISO 9001:2000 includes strengthened management reporting,
continuous improvement and customer satisfaction metrics
(aligned with Q1 2002)

12. Eight Principles
Customer focus
Leadership
Involvement of people
Process approach
System approach to management
Continual Improvement
Factual approach to decision making
Mutually beneficial supplier relationships

13. Introduction
The goal of this Technical Specification:
 development of a quality management system
 provide for continuous improvement
 emphasize defect prevention
 reduction of variation and waste in the supply
chain

14.  “The intent of this international standard is to
encourage the adoption of the process approach to
manage an organization.”
 Process approach - “for organizations to function
effectively, they have to identify and manage
numerous interrelated and interacting processes.
The systematic identification and management of
the processes employed within an organization and
particularly between such processes is referred to as
process management.
Through industry standards -
ISO9001:2000 & ISO/TS16949:2002.

15. How Will the Audit Change?
 Process audit approach
 Automotive application
 Line of sight from the organization to the customer
 Audit plan
 Identification of key processes impacting the customer
 Based on the processes as defined by the organization
 Performance
 Linked to common metrics for
 Organization
 Supplier
 Oversight

16. Management
Responsibility
Resource
Management
Product
Realization
Measurement,
Analysis
& Improvement
Inputs
Product
C
U
S
T
O
M
E
R
Outputs
R
E
Q
U
I
R
E
M
E
N
T
S
C
U
S
T
O
M
E
R
S
A
T
I
S
F
A
C
T
I
O
N
C.I.
Continual Improvement Cycle

17. Scope and Applicability
ISO / TS 16949
 Applicable to production and service part
supplier sites that are providing:
 Parts or materials
 Heat treating, painting, plating, other finishing services
 Other customer specific products
 May also be applied throughout supply chain

18. What’s New (and Different)
 Based on ISO 9001:2000 not ISO 9001:1994
 Greater focus on the customer and customer
satisfaction
 New focus on the “Process” approach vs. the
“elemental” approach
 Clarification of requirements for continual
improvement

19. New and Different (Cont.)
 Greater emphasis upon the role of top
management
 Measurable quality objectives
 Reduced emphasis on documented
procedures

20. New and Diff. (Cont.)
 Modification in the purpose of internal audits
 Use the “Deming Cycle” of Plan, Do, Check,
and Act as a basic methodology
 Process Conrol and improvement is
expanded from product to include all
activities of the organization.

21. ISO 9001 Supply Chain Terms
Customer
Organization
SUPPLIER Was
Subcontractor
in QS-9000
Was
Supplier in
QS-9000

22.  Adds sector terminology
 Control plan
 Design responsible org.
 Error proofing
 Laboratory
 Laboratory scope
 Outsourcing
 Predictive maintenance
 Premium freight
 Remote location & “site”
 Special characteristics
 Modifies ISO terms
 Continual improvement
 Manufacturing
Automotive Specific
Terminology

23. ISO 9001 Core Sections

24. Permissible Exclusions
ISO / TS 16949
 The only permitted exclusions may be in 7.3
• Where the organization is not responsible for product design and
development
• Permitted exclusions do NOT include manufacturing process
design
• Justified with details in the quality manual
• Conformity should not be claimed otherwise
 Only IATF will prescribe authorized exclusions for
vehicle assembly plants

25. Mandatory Procedures
 ISO 9001:2000
 Control of Documents
 Control of Records
 Internal Audit
 Control of
Nonconforming Product
 Corrective Action
 Preventive Action
 ISO/TS 16949:2002
 Laboratory
 Field Service (i.e.
Warranty)
 Training

26. Key Differences between
QS-9000 & TS16949
TS16949 focuses on the business processes required to
satisfy customer requirements (The “Process Approach”).
QS-9000 follows the 20 elements (The “Conformity
Approach”)
Process audit (TS16949) vs. documentation audit (QS-
9000)

27. Contrast between QS-9000 &
TS-16949:2002
Procedures Are:
 Driven by task completion
 Issued
 May be completed by different
departments with different objectives
 Are segmented
 Satisfy the standard
 Define the sequence of steps to
perform a task
 Static
Processes Are:
 Driven by desired output
 Managed
 May be completed by different
departments with the same objectives
 Flow to conclusion
 Satisfy the stakeholders
 Transform inputs into outputs
 Dynamic
QS-9000
(Procedure Based)
TS-16949:2002
(Process Based)

28. 1 2 3 4
Functional Goals
A FUNCTIONAL
ORGANIZATION
WITH PROCESS
OVERLAYS…
Management of Processes
Process 2
1
2
3
4
Process 1
Process 3
Process 4

29. • All work is performed to achieve some objectives
• The objective is achieved more efficiently when related resources
and activities are managed as a process
• Objectives of the organization which serve to meet its mission will
be met more effectively when the organization is managed as a
system of interrelated processes.
Recognizes:

30. The Process Approach
Inputs Outputs
Process
Objectives
Results
Risks
Purpose
• Stakeholder Wants & Needs
• Specifications
• Schedule/Timing
• Market Data
• Industry Trends
• Economic Conditions
• Products
• Information

31. Process Mapping
Forms and Form Instructions
Supporting Instructions
Program Planning &
Launch
Manufacturing
Marshall Key Processes
Shipping
LRP/OP
Manufacturing
Roadmap
Information
Management
Corrective
Action
Internal Auditing Preventive Action
Document
Control
Business Processes
Management
Review / Continuous
Improvement
Quality
Objectives
CQR/CQA
Support Processes
Asset Management
Human Resource
Management
Materials
Management
Capacity Planning Purchasing
DFM
Supplier
Management
Non-conforming
Material
Laboratory Records Retention
Component Quality
Customer Support 5S Audit

32. Process Mapping
• How do I get started mapping????
• First map out our processes at your location at
the macro level
• Identify the process owner
• Map out your processes at the micro level that
support the processes at the macro level

33. Process Mapping
 You will need to identify
• The inputs to your processes
• The outputs of your processes
• And then map out the activities in between that
define the processes
 You might find sub processes
• Identify metrics to measure the effectiveness
of your processes (must tie to the process
objective)

34. Process Mapping
 Identify your customers and your process
objectives/outputs (TS16949 section 4.2.2.c)
• Internal (other processes) and External
customers
• Show interactions between the various
processes

35. Process Mapping
 Identify your customers and your process outputs
(TS16949 section 4.2.2.c)
• Physical products
• Documents
• Information
• Services
• Decisions
• On time to schedule
• Meet profit margins

36. Process Mapping
 Identify suppliers to your process (internal and external)
(TS 16949 section 4.2.2.c)
• What are their inputs to your process
 Other processes
 Labor
 Material
 Ideas
 Information
 Environment
 Procedures, Forms, Documents, Records

37. Process Mapping
 Identify support to your processes (TS16949 section
4.2.2.c)
• Human Resources
• Training
• Purchasing
• Finance
• Quality Assurance
• Etc.

38. Process Mapping
 Establish a goal against which to measure your metrics
• You will need to monitor your metrics and implement
corrective actions if you don’t meet your goal
• Look for opportunities of continual improvement to
improve your processes

39. Process Mapping
 Identify risks to the process and the objectives
• Compressed Timing
• Failure to meet schedule timing
• Incomplete customer requirements
• Test/performance failures
• Rejected approvals (appearance, PPAP)
• Underestimated costs
• Premium freight

40. Process Mapping
Flow chart the process.
Note:
Indicating forms/records to be filled out at each step of the
process can eliminate or reduce the need for procedures to
document activities at each step.
A well done flow chart can eliminate the need for a
procedure to describe the process.

41. Questions to Help with Mapping
 Purpose
• Why does this process exist?
• What is the purpose of this process?
• What is the outcome?
 Outputs
• What product does this process make?
• What are the outputs of this process?
• At what point does this process end?
 Customers
• Who uses the products from this
process?
• Who are the customers of this process?
 Inputs/Suppliers
• Where does the information or
material you work on come
from? Who are your suppliers?
• What do they supply?
• Where do they affect the process
flow?
• What effect do they have on the
process and on the outcome?
 Process steps
• What happens to each input?
• What conversion activities take
place?

42. P ro cess Objective: Suppo rt P ro cesses:
Configuration M anagement
M anufacturing
Program M anagement
Purchasing
Inputs Outputs R ules/ R espo nsibilities
( 5) If parts are required, parts may be ordered by
Engineering, Sales or supplied internally from a TRW
manufacturing facility.
( 6 ) Prototypes built in accordance to build checklist,
drawings & specifications.
( 7) Engineering to coordinate deviation or customer
concurrence.
( 8 ) Quality Assurance performs & documents inspections
using inspection standards or prototype control plans,
depending upon the specific customer requirements.
( 9 ) Quality Assurance coordinates any required deviations
using the specific customer forms.
( 10 ) Quality Assurance documents results using the specific
customer paperwork and maintains copies for future reference.
Paperwork may be sent with the prototype parts or forwarded
to the customer via mail or fax depending upon specific
customer requirements.
( 11) Shipping Department packas parts and coordinates
develivery. Sales isrwponsbile for alerting shipping in advace
if expidated develiry will be require3d.
( 12 ) Finance Department coordinates billing and collection.
Sales Department may assist in overdue collection through
direct customer contact.
( 3 ) Team usually can consists of Engineering, Quality, Sales,
Program M gt., M anufacturing.
( 1) Sales Department.
( 2 ) Sales Department.
Document No./ Release No.
345643/ERD 2345
P ro cess
Process Name / Level:
Prototype Process - Farmington Hills (Level 2)
Build and deliver on-time,
prototype parts that meet
customer design &
performance requirements.
1. On-time delivery.
( 4 ) Sales Department.
P ro cess M easurables:
P ro cess R isks:
1. M issed delivery date to the customer.
2. Parts do not meet customer requirements in quality or performance. 2. Prototype rejections by the customer.
Customer
Order
( 1) Receive
Customer P.O.,
EDI, Phone, Fax,
M ail
Prototype
Parts
Order
Issues ?
No
Yes
Drawings
( 2 ) Enter order
into SAP System
( 3 ) Review Order
Requirements with
Prototype Team
Specifications
( 4 ) Resolve with
Customer
Revised
P.O.
Req'd?
Yes
( 5) Components
Inventory Check
No
( 6 ) Build
Prototypes
Functionally Test
Prototypes
Prototype
Paperwork
( 7) Resolve
with the
Customer
Test
Issues ?
( 8 ) Quality
Inspection
No
Quality
Issues ?
No
( 11) Packing &
Shipping
( 10 ) Complete
Prototype
Paperwork
( 9 ) Resolve
with the
Customer
( 12 ) Issue
Billing to
Customer
Customer
Invoice
Components
Yes
Yes

43. Document No. Revision
MPM0078 A
P ro cess Objective: Suppo rt P ro cesses:
M aterial M anagement
Document Control
Non-Conforming M aterial
Inputs Outputs R ules/ R espo nsibilities/ C o mments
1. Shipping instructio ns.
2. Go vernment R egulatio ns
3. C usto mer R equirements
6. Customer requirements not met. 6. Finished Goods Accuracy
4. Customer not notified (no ASN) 4. Customer Quality
5. No invoice or not correct. 5. Finished Goods Inventory
Go verning D o cuments
P ro cess M easurables:
3. Premium Freight.
1. Shipping A sso ciate
P ro cess
Process Nam: Back to Marshall Key Processes
Marshall Shipping Process
Ship quality product per
customer requirements.
1
. On-time delivery performance report (internal).
3. The shipment is not on time to the customer schedule.
P ro cess R isks:
1
. On-line system goes down and customer orders are missed.
2. The wrong quantities are shipped. 2. On-time delevery performance report (external)
Report and
M ove to
Finished Goods
Pull Signal to
M anufacturing
Assemble/Verify
Shipment
Invoice
Customer
Warehouse
Storage
Ship Product

44. Document No. Revision
MPM0079 A
P ro cess Objective: Suppo rt P ro cesses:
M aterials M anagement
Document Control
Non-Conforming M aterial
Inputs Outputs R ules/ R espo nsibilities/ C o mments
1. Shipping A sso ciate
2. Shipping C lerk
1. C usto mer P ackaging Specificatio ns
2. D elivery N o te
3. H o nda D elta System
4. D C X SM A R T System
5. F o rd D D L
6. M M OG
4. Customer not notified (no ASN)
5. Dropped parts.
4. Customer Quality
5. Finished Goods Inventory
P ro cess R isks:
1
. On-line system goes down and customer orders are missed.
2. The wrong quantities are shipped. 2. On-time delevery performance report (external)
P ro cess
Process Nam: Back to Marshall Key Processes
Assemble / Verify Shipment
Ship quality product per
customer requirements.
1
. On-time delivery performance report (internal).
3. The shipment is not on time to the customer schedule.
P ro cess M easurables:
3. Premium Freight.
6. Finished Goods Accuracy
Go verning D o cuments
Delivery Note
from Customer
Service
Place on truck
Review Pick List
Is all stock
available?
Shipment
Configuration
Stored Finished
Goods
Assemble order
per customer
directives
Consult SAP
inventory screen.
Contact
M anufacturing or
Customer Service
Pull Order
Is stock in
the correct
quantity?
Reference on-hand inventory screen
when picking shipment
Is container
within the two
week window
of stock
Is another box
required?
Identify out of rotation or missing box
and forward to inventory analyst. (2)
Yes
No
Yes
No
No
Yes
Yes
No
Is the box
damaged or
dropped?
No
Warehouse
Nonconformance
Yes

45. What About the AIAG
Reference Manuals?
 The AIAG reference manuals (PPAP, FMEA,
MSA, APQP & SPC are still viable documents.
 References to these manuals will be included in
DCX, Ford and GM’s respective customer
specifics for TS16949.
 Certification to TS16949 also includes the
requirements defined in the AIAG reference
manuals.

46. Questions?