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S P E C I A L
R E P R I N T
…your source for the latest information on international management system standards
®
© 2001 by INFORM & ASQ
This reprint is provided with the compliments of…
How Can You Move From QS-9000 to TS 16949:2000?
Key Challenges of the QS-9000to TS 16949:2002 Tr ansit ion
By Chad Kymal andDavid Watkins
Publisher’s Note: This article has beenreprinted with permission from TH E
INFORMED OUTLOOK Newsletter, November 2001 issue.
The final draft of ISO Tech-
nical Specification (TS)
16949:2002 is now available.
Although its circulation is limited to a
small group within the international qual-
ity management standards community, it
is a sign that ISO/TS 16949:2002, Qualitymanagement systems—Automotive suppli-
ers—Particular requirements for the applica-tion of ISO 9001:2000, will be soon
released to the larger public. Voting on TS
16949:2002 will conclude in December
2002, with the second edition’s release
expected by March 1, 2002.
What is still missing are the cus-
tomer-specific requirements of the original
equipment manufacturers (OEMs) for the
use of TS 16949:2002. These require-
ments, usually available on an OEM’s web
site and accessible by its suppliers, must be
used by a supplier to achieve quality man-
agement system (QMS) conformance with
TS 16949:2002 so as to satisfy the require-ments of a particular existing or poten-
tial OEM customer (e.g., BMW,
DaimlerChrysler, Fiat, Ford, GM,
Pugeot, Renault, Volkswagen) beyond
what TS 16949 requires. OEMs requir-
ing use of TS 16949 and customer-specific requirements may eventually
include Japanese and South Korean
OEMs.
Most QS-9000-registered suppliers
will transition their quality systems to
TS 16949:2002 by December 15, 2003,
when ISO 9001/2:1994 and TS
16949:1999 certificates of registration
will no longer be recognized. There are
two reasons why most suppliers will
make the transition:
1. Customers will soon be mandating
TS 16949:2002 registration by Decem-
ber 2003 as a contractual requirement
(for the latest on the Big Three’s registra-
tion requirements, see the box below).
2. Suppliers will want an ISO
9001:2000-registered QMS to gain the
improvements in the 2000 edition and
satisfy requirements of nonautomotive
customers.
As we stated in “A Plan for the
Transition From Q S-9000 to TS
16949:2002” (THE OUTLOOK , Au-
gust 2001), the second in our series of guidance articles on preparing for and
making the transition, TS 16949:2002
is more influenced by ISO 9001:2000’s
new structure than any new automo-
tive-based requirements change.
For the most part, the first edition
of TS 16949 has been faithfully mapped
into the ISO 9001:2000 framework to
create TS 16949:2002 (for more infor-
mation, see “The Impact of ISO
9001:2000 on QS-9000 and ISO/TS
16949”, THE OUTLOOK , May 2001,
the first article in this series).
O m n e x , In c .7 3 4 -7 6 1 -4 9 4 0 4 w w w . o m n e x . c o m
What Ar e t he Big Thr ee Requir ing Now ?
Rumors have it that DaimlerChrysler, Ford and GM will require their tier 1
suppliers to become registered to TS 16949, preferably the second edition.
Also, QS-9000 is expected to be extended to 2005 for those suppliers that have
contracts only with domestic US facilities of the Big Three. Suppliers that are
not t ier 1 and do not want the ISO 9001:2000/TS 16949:2002 registration
could technically stay QS-9000-registered for the time being.
In other words, QS-9000 will not be revised to align with ISO 9001:2000.
Also, per the International Accreditation Forum (IAF), all certificates of registra-
tion to ISO 9001/2/3:1994—including sector-specific ones involving QS-9000
(and thus ISO 9001/2:1994) will have to be upgraded to ISO 9001:2000 by
December 15, 2003. 1994-based certificates will not be considered valid after that
date (except by the Big Three, as noted).
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The biggest challenge for QS-9000-
registered companies will be the cus-
tomer focus and process focus contained
in this Technical Specification. What we
consider the most significant changes
that organizations transitioning from
QS-9000 to TS 16949:2002 will face
are contained in 15 clauses and
subclauses of ISO 9001:2000/TS
16949:2002 that are summarized in
Table 1 below.
In this article, we will explore three
Reprinted with permission from
THE INFORMED OUTLOOK November 2001 issues
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E-Mail: [email protected] 4Web Site: HTTP: WWW.INFORMINTL.COM
Contact us TODAY for a FREE sample issue
…and a SPECIAL subscription offer (code TS-0111)!
of these clauses—4.1, Quality Manage-
ment System—General Requirements,
7.3, Design and Development, and 7.4,
Purchasing.
4.1, Quality ManagementSystem—General Requirements
This clause in ISO 9001:2000 and
TS 16949:2002 will require an organi-zation to go beyond Q S-9000 and iden-
tify the processes within its hierarchical
organizational structure. The organiza-
tional structure and the chain of com-
mand follow Fredrick Winslow Taylor’s
theory of “specialization”—what is
known in the automotive industry as
organizational silos or chimneys, as
shown in Figure 1 on page 3.
In TS 16949:2002 terms, products
are “realized” by processes, which would
thus require a QS-9000-registered orga-
nization to identify the “product realiza-tion” processes and the “support”
processes. These processes provide not
just for the product, but are also respon-
sible for satisfying the customer.
Two ISO 9001:1994 paradigms
need to be discarded at this stage. One is
that the organization can exclude pro-
cesses not specified in the requirements
of TS 16949:2002. Clause 1.2, Applica-
tion, in ISO 9001:2000 and TS
16949:2002 is careful to point out that
only processes that do not “affect the
organization’s ability, or responsibility,
to provide product that meets customer
and applicable regulatory requirements”
can be excluded from the QMS’s scope.
A “requirement” is defined in 3.1.2
of ISO 9000:2000, Quality management systems—Fundamentals and vocabulary,
as a “need and expectation”. In other
words, an organizational entity or a
process can only be “scoped out” from
the QMS if it does not affect customer
needs or expectations.
Now, it is questionable if organiza-
tions can scope out research and devel-
opment (R&D) centers or sales offices,because customer needs cannot be met
without them if your organization has
Table 1. The 15 Tr ansit ion Challenges for QS-9000 Or ganizati onsClause/ Subclause Influenced by Challenges
4.1, Quality Management ISO 9001:2000 Requirements for process map (orSystem—General equivalent) and process managementRequirements
5.2, Management ISO 9001:2000 Decision on customers vs. interestedResponsibility— parties. Need for process to gatherCustomer Focus “needs and expectations” of customer/
interested parties
5.4.1, Planning— ISO 9001:2000 & Deployed Objectives addressingQuality Objectives TS 16949:1999 customer expectat ions
5.5.3, Internal ISO 9001:2000 Creation of internal communicationCommunication processes suitable to organization
5.6, Management Review ISO 9001:2000 & Revision of previous managementTS16949:1999 review process (TS adds additional items
to be reviewed)
6.1, Resource Management ISO 9001:2000 Establishment of a resource allocation—Provision of Resources process
6.2, Human Resources ISO 9001:2000 & Provision of job competency, on-the-job(particularly 6.2.2.3 on TS 16949:1999 training and employee motivationempowerment) (6.2.2.3 and 6.2.2.4)
7.0, Product Realization ISO 9001:2000 Documents for “effective control” of allprocesses in process map
7.1.4, Change Control New (actually Minor change for most suppliersFord’s Q-101)
7.3, Design and New Inclusion of design and development of Development processes, not just product (note
required development and use of FMEAs)
7.4, Purchasing New Inclusion of service suppliers in cover-age; ISO 9001:2000 registration of suppliers
8.2.1, Monitoring and ISO 9001:2000 Customer rating for quality and deliveryMeasurement—Customer insufficient; monitoring of “customerSatisfaction perceptions” of quality
8.2.2, Internal Audit TS 16949:1999 Manufacturing process and productaudits
8.2.3, Monitoring and ISO 9001:2000 & Process studies on manufacturing pro-Measurement of Processes TS 16949:1999 cesses. Measurement of all processes in
process map
8.4, Analysis of Data ISO 9001:2000 Increased scope from QS-9000
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them. Furthermore, TS 16949 has ex-
panded the applicability of Clause 7.3,
Design and Development, to both prod-
uct and processdesign by including
7.3.2.2, Manufacturing Process Design
Input, and 7.3.3.2, Manufacturing
Process Design Output. No organiza-
tion implementing TS 16949:2002 can
exclude 7.3, Design and Development,because every product and service parts
supplier has production processes that
need to be designed and developed
using the QMS.
The other paradigm is that an orga-
nization does not have to control its
supplier’s processes unless the customer
requires it. The last paragraph of 4.1 in
ISO 9001:2000 and TS 16949:2002
clearly states that, when the organization
“chooses to outsource any process that
affects product conformity with require-
ments, the organization shall ensure
control over such processes.”
Subclause 4.6.2, Evaluation of
Subcontractors, in ISO 9001:1994 and
QS-9000 does require an organization
to exercise control over its suppliers, but
only to meet customer requirements for
subcontractors and to the extent neces-
sary to ensure supplier-provided product
meets specifications relative to the
organization’s product.
With TS 16949:2002, an organiza-
tion will need to include outsourced
processes within its process map and
QMS whenever a supplier can affectthe organization’s product, including
heat treating or plating or any compo-
nent of an assembly manufactured by
that supplier.
A process map is a flowchart that
maps out all the processes and their
elements that define what your organi-
zation does, including all its key activi-
ties and more. When creating a process
map, an organization will need to go
beyond the clauses and subclauses of TS
16949:2002 to truly meet its require-
ments for an effective QMS.Telltale signs to auditors that a
QMS is not truly effective is a process
map that only includes QMS elements
related to the standard being audited
against. Inherently, a “process focus” is
different from a “departmental focus” in
that a process may move through every
department within an organization.
The antithesis of the process ap-
proach promoted by ISO 9001:2000
and TS 16949:2002 is the compliance-
driven approach of many organizations,
which implemented quality system
procedures based solely upon elements
of QS-9000 without any thought to
creating systems that actually support
and enhance the processes within their
operations.
Our organization recommends thatyour organization study four types of
processes for inclusion in the process
map:
q TS 16949 Processes
q Product Realization Processes
q Support Processes
q Business Processes.
TS 16949:2002 processes are those
that inherently fulfill the requirements
of the TS. Product Realization Processes
include product ideation, R&D, mar-
keting, design and development all the
way through to delivery of product and
post-delivery services. Support Processes
aid the overall organization, including
operations such as training, purchasing
and document control. Business Pro-
cesses are those that differentiate your
organization from its competitor and
help fulfill “customer needs and expecta-
tions”. Business Processes are the most
important for the success of a business.
Of course, there is overlap in the four
types of processes, as shown in Figure 2
on page 4.
By definition, Product Realization
and Support Processes are exclusive. Inother words, a process can either be a
support process or a product realization
process, while TS 16949 Processes and
Business Processes can be both product
realization and support processes.
After studying the different pro-
cesses, your organization can create a
process map that identifies its processes.
The process map also can show the “se-
quence and interaction” of these pro-
cesses. Two diagrams presenting completeprocess maps appeared as Figure 1 in
both previous articles in this series.
7.3, Product Realization—Design and Development
The two most significant changes
in Clause 7.3 of TS 16949:2002 are the
exclusion of advanced product quality
planning (APQP) as a requirement and
the inclusion of manufacturing process
design as a new requirement. APQP was
excluded because most OEM representa-
tives to the International AutomotiveTask Force (IATF) do not support the
Big Three’s approach of requiring APQP,
which is expected to become a customer-
specific requirement of DaimlerChrysler
Corporation, Ford and GM.
The inclusion of manufacturing
process design input and output require-
ments (7.3.2.2 and 7.3.3.2) by the IATF
is significant. QS-9000-compliant orga-
nizations will need to carefully study the
requirements in 7.3 for process design
and make the necessary changes to their
APQP process. The real challenge comes
when an organization actually has toimplement these changes. In some QS-
9000-registered organizations, the pro-
Process Variation Output
w w
Figur e 1. Pr ocess Focus: Theor y of “ Specialization”
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cess-engineering group is only one or
two people who will be responsible for
conformance.
However, QS-9000-registered orga-
nizations should not view this change as
a negative. When the first edition of QS-
9000 was released in August 1994, the
payback to design-responsible organiza-
tions was a systematic design process.Many organizations went from chaotic
product design to systematic design
development. With TS 16949:2002, one
payback will be a systematic process for
manufacturing process design.
What are the challenges of incorpo-
rating manufacturing process design
into a QMS? Although TS 16949:2002
only specifies design input and output
requirements, to satisfy the TS’s require-
ments effectively an organization will, in
actuality, need to carefully create a de-
sign and development plan that covers
all phases of process design, including:
q Manufacturing process design input
q Manufacturing process design out-
put
q Design and development reviews
q Monitoring of process design
q Design and development verification
q Validation of the manufacturing
process.
Organizations can decide whether
to include process failure mode and
effects analysis (PFMEA) as a verifica-
tion process and/or machine runoff as a
validation process. One opportunity isto build Mean Time to Repair (MTTR)
and Mean Time to Failure (MTBF) into
the process design, while another is to
build in the entire Reliability and Main-
tainability (R&M) methodology.
Leading-edge organizations are
already practicing these processes and
methodologies. An organization inter-
ested in the up-front involvement of its
tooling and equipment (TE) suppliers
can use the TE Supplement to QS-9000,
which offers guidelines and specifiesmethodologies for PFMEA, machine
runoff, R&M, MTTR and MTBF for
the entire life cycle of the manufactur-
ing process.
Process design has been elevated to
the same importance as product design
in TS 16949:2002. Now both design
and product have the same type of
expectations for inputs, outputs, verifi-
cation and validation. Tools such as
design FMEA, special characteristics,
Design Verification Plan and Report
(DVP&R) on the product design side
and tools such as process flow, PFMEA
and control plans on the process design
side need to be linked.
This is the “effectiveness in prac-
tice” or the results that can be derived
from implementing good product and
process design practices. Think of it as
preparing to take advantage of the com-
ing economic upturn, when the best-
run operations will win.
Another requirement closely
aligned with Clause 7.3 is TS
16949:2002’s 8.2.3.1, Monitoring and
Measurement of Manufacturing Pro-cesses, which requires all new processes
to be statistically studied. The closest
point of comparison is QS-9000’s Pro-
duction Part Approval Process (PPAP)
manual, which requires processes with
only special characteristics to be studied.
Many organizations will implement this
requirement as the last step of the
“Manufacturing Process Design and
Development” process.
The change in design and
development’s scope with Clause 7.3 toinclude process design will require both
new documentation and subsequent
implementation. But, if implemented
properly, this new requirement will
result in profits for organizations.
7.4, PurchasingThe purchasing requirements have
not changed very much from QS-9000.
Organizations will need to continue
following their purchase order process
(7.4.2, Purchasing Information), sup-
plier development process (7.4.1.2,Supplier Quality Management System
Development) and receiving inspection
process (7.4.3, Verification of Purchased
Product). What has changed is the scope
of supplier development and the new
requirement for supplier development
that involves a registration deadline.
With TS 16949:2002, there will
also be no leeway on what constitutes a
purchased product. NOTE 1 to 7.4.1,
Purchasing Process, defines purchased
products as “all products and services
that affect customer requirements….”
Organizations will be required to care-fully study their supplier lists and add in
all suppliers that affect customer needs
and expectations, per the previously
mentioned ISO 9000:2000 definition of
“requirement”.
As for registration requirements,
7.4.1.2, Supplier Quality Management
System Development, requires an organi-
zation conforming to TS 16949:2002 to
require its suppliers to register “to ISO
9001:2000 by an accredited third-party
certification body.” NOTE 1 to 7.4.1.2
requires that suppliers “comply” with ISO9001:2000 by December 15, 2003—the
IAF’s date for termination of the transition
to ISO 9001:2000. This, of course, is the
first step in the ultimate OEM goal of
driving the manufacturing supply base to
TS 16949, Second Edition.
Although NOTE 2 indicates that a
customer may “mandate alternative
requirements” for subcontractors, this
registration requirement is causing con-
Business andISO/TS 16949
Pr ocesses
Pr oductRealizationPr ocesses
Suppor tPr ocesses
Figur e 2. Relat ionship Among Pr ocesses in a TS 169 49-Based Or ganization
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cern among QS-9000-registered organi-
zations, many of which do not feel they
have the clout to impose registration
requirements on their supply base. Our
organization has seen the effects of
quality system requirements on client
supply bases since Ford’s Q-101 and
GM’s Targets for Excellence.
Nevertheless, we encourage yourorganization to move forward as follows:
1. Determine your product and ser-
vice supply base (i.e., expand your key
supplier lists).
2. Determine the criteria and dead-
lines for supplier development require-
ments, including ISO 9001:2000
(December 15, 2003) and TS
16949:2002 (subsequently).
3. Announce the requirements and
criteria to your supply base.
4. Have evidence that you are trying
to comply with TS 16949:2002’s intent.Organizations typically mention all
the exceptions in justifying why they
cannot implement supplier development
(i.e., suppliers are unwilling, too small
or strategic). However, our organization
recommends that its clients formulate
their strategies around the 95% of their
supply base that is likely to cooperate,
rather than around the exceptions. If
you follow this strategy, both your cus-
tomer and your registrar’s auditor(s) are
likely to understand the odd exceptions.
Since no one is indispensable, the odd
exceptions will lose out in the long-term
by failing to adopt an effective way to
manage their operations.
We have just explored 3 of the 15
significant challenges we believe will
face Q S-9000-registered organizations
transitioning to TS 16949:2002. There
is a lot of work ahead for companies
that likely have only a little more than
two years remaining before an OEM
will be expecting registration to this
second edition. Organizations need to
make their plans to transition to the
second edition of TS 16949 today.How much work your organization
has ahead of it depends on the quality of
its Q S-9000-registered quality system.
To help you gain a better understanding
of what the transition will likely involve
for your organization, we have identified
an anonymous organization willing to
serve as a case study for transitioning to
TS 16949:2000.
Case Study of an International Tier1 Supplier
QSTS had a contract with an ac-
credited registrar qualified to conduct
QS-9000 registration assessments, but
the registrar was not on the Interna-tional Automotive Oversight Bureau
(IAOB) list of registrars qualified to
conduct TS 16949 assessments. At the
end of the registrar’s contract for QS-
9000, QSTS decided to switch to a
registrar included on the IAOB list
because it planned to transition to TS
16949:2002, thereby obtaining ISO
9001:2000 registration as well.
QSTS was confident it could very
easily transition to both ISO 9001:2000
and TS 16949, since it had already been
working for more than five years onmeeting excellence standards such as the
Malcolm Baldrige National Quality
Award.
The new registrar’s initial audit
provided for a QMS assessment that
would permit a registration transition
from ISO 9001:1994 and the third
edition of QS-9000 to ISO 9001:2000
and TS 16949:1999. However, the audit
was a wake-up call instead. The assess-
ment of QSTS ended up identifying
several major nonconformances, includ-
ing one that required the organization
to align itself with a “site” since it was
technically a “remote location”, despite
the fact that QSTS had a design center,
sales, purchasing and some senior man-
agement located in the US.
Some of the nonconformances
resulted from the lack of preparation by
the registrar’s auditors. In fact, they had
not completed a document review
(desktop audit) prior to the on-site
audit. The other nonconformances
existed because the organization was not
prepared for conformance to both ISO
9001:2000 and TS 16949:1999.QSTS has a few special circum-
stances that need to be mentioned (even
though they do not excuse legitimate
nonconformances), including that it has
10-15 product lines located in the
United States, while several of the busi-
ness units they report to are located in
Europe. What then is the definition of
“top management”?
After the poor showing on the audit,
QSTS contacted our organization. We
collectively decided that it did not make
sense for them to pursue ISO 9001:2000
and TS 16949:1999, but that they
should instead pursue ISO 9001:2000
and TS 16949:2002, which had justbecome available in final draft form.
The implementation is in its in-
fancy, and the scoping of the implemen-
tation is the first challenge. The second
challenge will be the requirements of
ISO 9001:2000 and TS 16949:2002,
especially Management Review, linkage
of processes and purchasing. This case
study will be expanded in upcoming
articles that will explore the remaining
12 challenges of TS 16949:2002 and
their impact on QSTS.
For now, any organization would bewise to focus on the three clauses of TS
16949:2002 discussed above, since they
are the starting point for effective con-
formance with ISO 9001:2000 and the
second edition of TS 16949. ###
Chad Kymal is Chief Executive Officer of Omnex, Inc., an international consulting,training and software organization specializ-ing in business quality improvement method-ologies. Omnex has worked with hundreds of organizations to meet the requirements of ISO9001/2/3, QS-9000 and ISO/TS 16949worldwide and obtain registration. He assistsorganizations worldwide in his capacity as aconsultant and trainer. Mr. Kymal recentlyserved on the Malcolm Baldrige NationalQuality Award Board of Examiners, has a
BSME from General Motors Institute and hasan MS in Industrial Operations Engineeringand an MBA from the University of Michi-gan. He can be contacted by e-mail([email protected]).For more information,visit www.omnex.com.
David Watkins is President of Omnex, Inc.,
and is a senior trainer/consultant. He has awide range of international experience fo-cused on enhancing the ability of organiza-tions to create value for their customers and stockholders and integrating QMSs and other management systems to enhance perfor-mance. Mr. Watkins can be contacted by e-mail ([email protected]).
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$295.00*
* Regular price: $325. Plus $25 to Canada/Mexico…Plus $75 to other international addresses.
US rate
MENTION CODE: TS-0111
… IS YOUR ANSWER!
P H O N
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F A X :
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