ISO/TS 16949:2002

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.
Two Key Organizations
International Automotive Task Force

International Automotive Oversight Bureau
Purpose of the IATF
Develop consensus for international quality
system requirements (automotive)
Develop policy & procedure for registration
Provide appropriate training
Serve as formal liaison
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


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

Purpose of IAOB
Implement and manage 16949 registrations
Manage and coordinate with IATF Europe
Support further global consistency
Develop and maintain central database
Which Car Manufacturers Will
Accept ISO / TS 16949?
The users of -
QS-9000 - US Big 3
VDA 6.1 - German
AVSQ - Italian
EAQF - French

Why Upgrade to TS?
From the OEM subscribers view:
TS 2
nd
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
Why Upgrade to TS?
From the suppliers 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 1
st
, QS-9000, EAQF, AVSQ,
VDA 6.1)
Closer oversight greater value in certification
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)
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
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


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.
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
Adherence to the Rules and Common Global Process
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

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

Whats 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
New and Different (Cont.)

Greater emphasis upon the role of top
management
Measurable quality objectives
Reduced emphasis on documented
procedures
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.
ISO 9001 Supply Chain Terms
Customer
Organization
SUPPLIER
Was
Subcontractor
in QS-9000
Was
Supplier in
QS-9000
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
ISO 9001 Core Sections
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

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
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)


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)
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
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:
The Process Approach

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

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
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


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)



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
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

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
Process Mapping
Identify support to your processes (TS16949 section
4.2.2.c)
Human Resources
Training
Purchasing
Finance
Quality Assurance
Etc.
Process Mapping
Establish a goal against which to measure your metrics
You will need to monitor your metrics and implement
corrective actions if you dont meet your goal
Look for opportunities of continual improvement to
improve your processes
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

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.
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?
P rocess Object ive: Support P rocesses:
Conf igurat ion Management
Manuf act uring
ProgramManagement
Purchasing
Input s Out put s Rules/ Responsibilit ies
( 5) If part s are required, part s may be ordered by
Engineering, Sales or supplied int ernally f roma TRW
manuf act uring f acilit y.
( 6 ) Prot ot ypes built in accordance t o build checklist ,
drawings & specif icat ions.
( 7) Engineering t o coordinat e deviat ion or cust omer
concurrence.
( 8 ) Qualit y Assurance perf orms & document s inspect ions
using inspect ion st andards or prot ot ype cont rol plans,
depending upon t he specif ic cust omer requirement s.
( 9 ) Qualit y Assurance coordinat es any required deviat ions
using t he specif ic cust omer f orms.
( 10 ) Qualit y Assurance document s result s using t he specif ic
cust omer paperwork and maint ains copies f or f ut ure ref erence.
Paperwork may be sent wit h t he prot ot ype part s or f orwarded
t o t he cust omer via mail or f ax depending upon specif ic
cust omer requirement s.
( 11) Shipping Depart ment packas part s and coordinat es
develivery. Sales isrwponsbile f or alert ing shipping in advace
if expidat ed develiry will be require3d.
( 12 ) Finance Depart ment coordinat es billing and collect ion.
Sales Depart ment may assist in overdue collect ion t hrough
direct cust omer cont act .
( 3 ) Teamusually can consist s of Engineering, Qualit y, Sales,
ProgramMgt ., Manuf act uring.
( 1) Sales Depart ment .
( 2 ) Sales Depart ment .
Document No./ Release No.
345643/ERD 2345
P rocess
Process Name / Level:
Prototype Process - Farmington Hills (Level 2)
Build and deliver on-t ime,
prot ot ype part s t hat meet
cust omer design &
perf ormance requirement s.
1. On-t ime delivery.
( 4 ) Sales Depart ment .
P rocess M easurables: P rocess Risks:
1. Missed delivery dat e t o t he cust omer.
2. Part s do not meet cust omer requirement s in qualit y or perf ormance. 2. Prot ot ype reject ions by t he cust omer.
Cust omer
Order
( 1) Receive
Cust omer P.O.,
EDI, Phone, Fax,
Mail
Prot ot ype
Part s
Order
Issues ?
No
Yes
Drawings
( 2 ) Ent er order
int o SAP Syst em
( 3 ) Review Order
Requirement s wit h
Prot ot ype Team
Specif icat ions
( 4 ) Resolve wit h
Cust omer
Revised
P.O.
Req' d?
Yes
( 5) Component s
Invent ory Check
No
( 6 ) Build
Prot ot ypes
Funct ionally Test
Prot ot ypes
Prot ot ype
Paperwork
( 7) Resolve
wit h t he
Cust omer
Test
Issues ?
( 8 ) Qualit y
Inspect ion
No
Qualit y
Issues ?
No
( 11) Packing &
Shipping
( 10 ) Complet e
Prot ot ype
Paperwork
( 9 ) Resolve
wit h t he
Cust omer
( 12 ) Issue
Billing t o
Cust omer
Cust omer
Invoice
Component s
Yes
Yes
Document No. Revision
MPM0078 A
P rocess Object ive: Support P rocesses:
Material Management
Document Control
Non-Conforming Material
Input s Out put s Rules/ Responsibilit ies/ Comment s
1. Shipping inst ruct ions.
2. Government Regulat ions
3. Cust omer Requirement s
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
Governing Document s
P rocess M easurables:
3. Premium Freight.
1. Shipping Associat e
P rocess
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 rocess Risks:
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
Move t o
Finished Goods
Pull Signal t o
Manuf act uring
Assemble/ Verif y
Shipment
Invoice
Cust omer
Warehouse
St orage
Ship Product
Document No. Revision
MPM0079 A
P rocess Object ive: Support P rocesses:
Materials Management
Document Control
Non-Conforming Material
Input s Out put s Rules/ Responsibilit ies/ Comment s
1. Shipping Associat e
2. Shipping Clerk
1. Cust omer P ackaging Specif icat ions
2. Delivery Not e
3. Honda Delt a Syst em
4. DCX SM ART Syst em
5. Ford DDL
6. M M OG
4. Customer not notified (no ASN)
5. Dropped parts.
4. Customer Quality
5. Finished Goods Inventory
P rocess Risks:
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 rocess
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 rocess M easurables:
3. Premium Freight.
6. Finished Goods Accuracy
Governing Document s
Delivery Not e
f romCust omer
Service
Place on t ruck
Review Pick List
Is all st ock
available?
Shipment
Conf igurat ion
St ored Finished
Goods
Assemble order
per cust omer
direct ives
Consult SAP
invent ory screen.
Cont act
Manuf act uring or
Cust omer Service
Pull Order
Is st ock in
t he correct
quant it y?
Ref erence on-hand invent ory screen
when picking shipment
Is cont ainer
wit hin t he t wo
week window
of st ock
Is anot her box
required?
Ident if y out of rot at ion or missing box
and f orward t o invent ory analyst . (2)
Yes
No
Yes
No
No
Yes
Yes
No
Is t he box
damaged or
dropped?
No
Warehouse
Nonconf ormance
Yes
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 GMs respective customer
specifics for TS16949.

Certification to TS16949 also includes the
requirements defined in the AIAG reference
manuals.

Questions?