qualityaustria Automotive News VDA-QMC Symposium/new requirements in the supply chain/customer specific requirements/VDA 6.3 new – absolutely required/auditor training/ “Core Tools” of German automotive industry/supplier audits/VDA 6.3 red print, … Automobile companies certified by Quality Austria Ltd. were informed on the imminent changes in a Special Newsletter as early as some months ago. Basically this information lead only is available as a service to the companies certified by us. As the following information has effects on the overall supply chain, we have decided also to put this news onto the official homepage of Quality Austria Ltd. Please first bear in mind that even German automotive industry has its “Core Tools”, which have to be considered in the course of ISO/TS 16949 certification. Further details and developments can be taken from the Internal Automotive Newsletters soon. News about VDA’s Spring Conference in Frankfurt In late April, VDA’s Spring Conference (more than 200 participants) and IATF’s Veto Commission Meeting were carried out as always. There were lectures and decisions about the following topics, which will partly enter into force soon:

failure culture and management; FMEA – special features; IATF News; IATF – customer specific requirements; VDA 6.3 – red print, new; VDA 6.3 in practice (VW AG Group)

Failure culture and management A.P. Geiwitsch (formerly BMW) from Regensburg held a very interesting lecture. This lecture particularly presented very interesting aspects relating to such topics as Six Sigma, “How good are we really?”, failure prevention – failure management in supplier industry and showed we had still a lot to learn when it comes to handling failures. FMEA – special features The workgroup headed by Mr. Hans–Joachim Pfeufer/BMW AG gave an overview of the new yellow print, which will probably be passed on September 15, 2010. This means it can be assumed release and putting into force as a blue/gold print can be expected for November this year. As the name already says, it is a question of the definition of “special features” and considering them when making FMEA’s. After the document has appeared, it can be assumed that this volume also must definitely be regarded as being a German Standard.

IATF News A picture says more than 1000 words (by courtesy of VDA-QMC):

Number and distribution of the ISO/TS 16949 Certificates valid world‐wide 

© IATF 2010 

Total: 41.241

Status: 31.03.2010

ISO/TS 16949 has asserted itself as the Standard in automotive industry with 41,000 Certificates valid world-wide. Up to now Quality Austria Ltd. has issued little less than 2000 Certificates and is not only the market leader in Austria but presently also is the leading Certification Body in China (number of certificates/CB). We are particularly proud our customers are among the best subsuppliers in the industry. At the moment there are no IATF rules that are really new. However, more and more customer specific requirements are being taken into account, and German automotive industry, in particular, exerts pressure relating to compliance with their “Core Tools”, which currently include about 60 volumes. These tools increasingly form the subject of the contracts between the OEM’s and supplier industry (throughout the supply chain). Still another service consists in preventing the number of falsifications of Certificates from increasing even more. This is particularly popular in Asia. The latest trick: The company has itself certified and then lays back the Certificate while continuing to work with a copy throughout the cycle without a Surveillance Audit. In order to prevent this abuse, it is now very easy to crosscheck the validity of Certificates on the IATF Homepage. Just try yourself: You visit the homepage of IATF at www.iatfglobaloversight.org and only need the IATF Number of the Certificate (Note: ISO/TS Certificates without IATF Numbers basically are invalid), enter this number in the search field for the Certificate Validity Check. This is all you need to do to obtain the name and address as well as information on whether the Certificate is valid. All the buyers will be pleased to avail of this service.

IATF – customer specific requirements This is a topic that continues to be complex: Basically the following is true: The OEM will oblige the OEM’s supplier to keep the OEM’s rules and may, if relevant, oblige the supplier to involve the supplier’s suppliers and their suppliers. This means the overall supply chain should meet the OEM’s requirements. As this demonstrably does not really work well, a new workgroup headed by Mr. Ernst Pollak (Johnson Controls) has started to deal with this topic. For the first time, the yellow print “Joint quality management in the supply chain”, which discusses the creation of customer specific requirements relating to quality management systems on the basis of ISO/TS 16949, was presented (at the moment it can still be called as a yellow print in the internet at VDA-QMC). The document will probably be published as a red print in this year’s October and will definitely significantly contribute to improving understanding of the issue. VDA 6.3 – new red print “Process Audit”, Issue 2010 As we have already reported in our most recent Newsletter, we are heading for many new requirements relating to “process audits” at suppliers’ as well as internally. By now the yellow print is no longer available. The red print was discussed on the occasion of this symposium for the first time. First of all – there will be significant differences between the yellow print and the red print, which will appear soon (in July). And what is particularly important – the volume will immediately take effect upon its publication without any additional transition period. This means companies that are requested in their contracts to apply the relevant methodology (e.g. the whole VW AG Group, Porsche or Daimler) will have to start implementation and adaptation immediately. Below, please find an overview of the focal points:

making a distinction between process audit – analysis of opportunities and potentials; identifying process risks (risk analysis); requirements placed on auditors/auditor qualification/code of conduct; new process approach; making a distinction between an internal and external approach for application (analysis

of opportunities and potentials); new assessment criteria for the analysis of opportunities and potentials

(red/yellow/green); assessing single questions – considering the risk even more than before; new overall rating/classification: Only 3 performance classes are left - A/B/C; the fact that C Grading implies a degree of implementation of 80 % and does not mean

“quality capability”; the fact that B Grading implies a degree of implementation of 80 – 90 % and means

“restricted quality capability”; the fact that * also needs to be considered in future (graduation); new (adapted) catalogue of questions; examples of information suppliers give about themselves; guide for assessment; practical examples

Furthermore, it should be noted that there now also is a compulsory recognized training of auditors with progress control (examination/Certificate and corresponding evidence of practical experience). At the moment trainings recognized in this respect are already being offered by VDA-QMC and Quality Austria Ltd. (further details will be given later).

VDA 6.3 in practice (VW AG Group) Dipl. Ing. Roland Assmann/Management Corporate Site Audit Suppliers & Corporate Site Q Purchasing Exterior presented integration of the new VDA 6.3 as part of the “Driving Permit for Suppliers” within the formula for quality capability and expressly emphasized how important it is to be able to rely on “Certificates”. There was a short presentation of how VDA 6.3 is to help to ensure process capability throughout the supply chain. Mr. Assmann’s final words were as follows: “VDA 6.1/ISO/TS 16949, which is supplemented by process qualification acc. to VDA 6.3, is the starting point for Automotive Excellence …” This takes us to the News of Quality Austria Ltd. – how can we contribute to ensuring the new requirements can definitely be met? New compulsory training acc. to VDA 6.3 As for the Automotive Sector of Quality Austria Ltd., we have decided only to formulate hints relating to the new training rules until the end of the year. For at the moment the trainings are only available to a limited extent, and the contracts between OEM’s and the supply chain also need to be adapted. As Quality Austria Ltd., we will offer corresponding courses and upgrades for those who have already successfully completed the course about process audits acc. to VDA 6.3 from July 2010. For beginners: Target group Employees from all areas who conduct internal and external process audits or are responsible for their conduct (Quality Managers, Project Managers, Salespersons, Process Owners) Excerpt from the contents

• introduction into the new VDA 6.3; • requirements placed on process auditors; • the audit process (from the audit plan to post-processing); • the analysis of opportunities and potentials (selection and assessment of possible

suppliers); • assessment acc. to VDA 6.3; • using the catalogue of questions (analysis of opportunities and potentials, single and

overall assessment) for project management, supplier management, series production and services;

• teamwork for enabling correct use / discussing the results; • examination

Duration 3 days, 09:00 – 17:00 incl. progress control (examination) The first course will take place in Graz from July 27 to 29, 2010. As for details, please refer to the qualityaustria Homepage. Certificate Once the participants have passed the examination, they will get the Certificate “Internal/External Process Auditor acc. to VDA 6.3”. In combination with the prescribed job / audit experience, they will be entitled to conduct internal/external process audits according to the requirements placed by automotive industry. Period of validity of the Certificate 3 years

Prolongation criteria • evidence of 3 years’ job experience in automotive industry (e.g. confirmation written by

the employer, interim report, self-declaration); • attending the qualityaustria Refresher Training for Internal/External Auditors

Automotive (at least 1 x within 3 years); • audit evidence for the past period of validity (3 years) – at least 6 process audits

For persons who successfully completed our course earlier, we offer a 2 days’ upgrade with an examination. Upgrade Internal/External Process Auditor Automotive acc. to VDA 6.3 Overview The participants of the prior qualityaustria Training for Process Auditors in Automotive Industry (courses up to 2010) are given the opportunity of obtaining a topical Certificate as qualification evidence by attending this course and taking the final examination. Basic requirements

• attending an earlier course “Process Audit in Automotive Industry” provided by Quality Austria Ltd. (courses up to 2010);

• audit evidence for the past period of validity (3 years) – at least 6 process audits Employees from all areas who conduct internal and external process audits or are responsible for their conduct (Quality Managers, Project Managers, Salespersons, Process Owners) Contents

• introduction into the new VDA 6.3 (amendments to the version of 1998); • requirements placed on process auditors; • refresher course - the audit process (from the audit plan to post-processing); • the analysis of opportunities and potentials (selection and assessment of possible

suppliers); • changes in the catalogue of questions and assessment procedure; • teamwork for enabling correct use / discussing the results; • knowledge check

Duration 3 days, 09:00 – 17:00 incl. progress control (examination) The first course will take place in Graz from September 13 to 14, 2010. As for details, please refer to the qualityaustria Homepage. Certificate Once the participants have passed the examination, they will get the Certificate “Internal/External Process Auditor acc. to VDA 6.3”. In combination with the prescribed job / audit experience, they will be entitled to conduct internal/external process audits according to the requirements placed by automotive industry. Period of validity of the Certificate 3 years; as for prolongation, see above

In case of relevant needs, in-house trainings can also be coordinated. Basic requirement: More than one company takes part in order to ensure the public character. Recognition of trainings in automotive industry for auditors At the moment there are many institutions offering relevant courses. Therefore, you should review carefully whether the criteria/requirements placed on the trainer are actually met so that you can be certain later on that these trainings will also be recognized in the course of certification. As for the statements of requirements to be met by the trainer, we would like to hint at the various customer requirements of the OEM’s or the industry rules, such as VDA Volume 6. All Automotive Trainers of Quality Austria Ltd., who are employed in the field of auditor training, are 3rd party auditors and thus demonstrably fulfil these criteria. New seminars for “Selection and development of suppliers” Quality Austria Ltd. has successfully offered courses about this topic for many years. We would like to point out even now that there will be a complete revision and updating in summer 2010 and new topics, such as the analysis of opportunities and potentials, will be taken into account. “Core Tools” of German automotive industry by taking the IATF Headline Daimler Customer Specific Requirements – Mercedes Benz Cars (MBC) as an example Remarks We have pointed out for many years that the German VDA Volumes or additional requirements placed by the OEM’s had to be considered in addition to the Core Tools of QS 9000 (APQP, PPAP, MSA, etc.). Now MBC has, as of February 22, 2010, made it clear on the IATF Homepage what VDA Volumes needed, at least, to be considered in terms of their contents in connection with ISO/TS 16949 certification. Examples:

VDA 6.1, 6.2, 6.3, 6.4 / 7 / 13 for audit activities (and thus, of course, also VDA 6 as a basis);

VDA 1 (duty of documentation); VDA 2 (purchasing / sampling); VDA 3.X (method tools); VDA 4.3 (quality planning process); VDA 10 (customer satisfaction); … and many more

Other German manufacturers will follow the trend. Also visit the homepage of VDA-QMC in this respect. We recommend you to study these requirements. Quality Austria Ltd. also offers special courses for this within its training activities. Hoping to have helped you to update and optimize your quality management system once again, we wish you good luck for implementing and reading the next Automotive Newsletter. If you have additional technical questions, you can, of course, continue to personally contact me. Gerald Perschler Authorized Representative Sector Management Automotive/Aeronautics