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SMMT IF ISO/TS16949: 2002 Newsletter Volume 5, Issue July 2006 Welcome to this fifth edition of the SMMT IF ISO/TS16949: 2002 newsletter. This regular publication is aimed to keep readers up to date with developments with ISO/TS16949 and SMMT IF services. Any comments and suggestions for future editions would be welcomed, addressed to
[email protected]
Update of AIAG core tool manuals PPAP The fourth edition of the AIAG PPAP manual was issued in March 2006. The requirements become effective from the 1st June 2006. Changes to the fourth edition includes the following: Identified issues in the application of PPAP • Removal of QS-9000 references • Necessary edits including typographical or grammatical corrections • Removal of OEM customer specifics • Some rearrangement of clauses to improve flow • The change bring into line the PPAP requirements with the ISO/TS16949 process approach, and now includes an example process flow:
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There is also more emphasis in keeping the customer notified of any proposed changes that may trigger the need for re-submission. Customer specific requirements for PPAP can be found on relevant websites. For example on www.iaob.org, you can find the PPAP customer specific requirements for Daimler Chrysler and GM, which were updated in May 2006. FMEA The FMEA third edition manual is currently under review but no date for a revised version has yet been established. Watch this space!
Growth in demand for ISO/TS16949: 2002 As at the end of May 2006 22727 organisations had been registered against the requirements of ISO/TS16949: 2002. As the deadline date for the end of QS-9000 approaches the growth in registrations is set continue, and early indications is that many organisations will not meet the deadline and hence will loose their automotive approvals.
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SMMT IF 2006 course programme For full details of SMMT IF open and in-house course programmes visit www.industryforum.co.uk In addition to our range of established ISO/TS16949: 2002 courses: • • • •
Two-day Internal Auditor Five-day Supplier Auditor certification course Management/employee awareness Automotive core tools FMEA o SPC o MSA o APQP/PPAP o
We now offer the following new courses: Two-day ISO/TS16949: 2002/ ISO14001 integrated audit training The course focuses on using the process approach to develop and audit an integrated system Currently may organizations ISO14001 systems are based upon the clauses of the standard, and auditing is purely linked to compliance, and in many cases not focused on the effectiveness of the system to meet the legal and regulatory requirements, and the organizations objectives and targets. The following diagram shows one possible approach to developing a process based integrated system. The organization identified and maps each high level business process, and then considers the issues at each stage of the process related to environment and heath and safety
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The following diagram shows an example for the goods receiving and storage process:
The diagram shows the process, and the link to the relevant key performance indicators (linked to objectives and targets) Once processes are defined, processes can be auditing utilizing the process approach using turtle diagrams to plan the audits: Process Audit Preparation "Turtle Diagram" M anufacturing With What? - (Materials / Equipment) ISO/TS16949 Plant and machinery (6.3) Process equipment (6.3) Measuring equipment (7.6) Tooling (7.5.1.5) Maintenance (7.5.1.4) Packaging/labelling (7.5.5) Cleanliness of premises (6.4.2) Customer property (7.5.4) Transportation (6.3)
With Who? - (Competence / Skills / Training)
ISO14001 Operational control (4.4.6) Monitoring and measurement (4.5.1)
ISO/TS16949 Competence criteria (6.2.1) Induction/ training records (6.2.2) Agency/ Contract labour (6.2.2.3) Job responsibilities/ authorities (5.5) Training effectiveness (6.2.2) SPC awareness (8.1.2) Personnel safety (6.4.1) Awareness of policy/ objectives (6.2.2.4)
ISO14001 Environmental policy (4.2) Resources, roles, responsibility and authority (4.4.1) Competence, training and awareness (4.4.2) Communication (4.4.3)
Inputs
Process
Outputs
Customer schedule (7.5.1.6, 4.3.2) Raw materials (7.4)
Manufacturing Process (7.5, 4.4.6)
Conforming product delivered to customer schedule (8.2.1.1)
How? -
(Procedures & Methods)
ISO/TS16949 Control plans (7.5.1.1) Work instructions (7.5.1.2) Preventive maintenance (7.5.1.4) SPC (8.1.1) Nonconforming product procedure (8.3) Dispatch process (7.5.1.7) Contingency plan (6.3.2) Document control/ records (4.2.3) Chan e control 7 1 4
ISO14001 Environmental aspects (4.3.1) Legal and other Requirements (4.3.2) Objectives, targets and programme(s) (4.3.3) Documentation (4.4.4) Control of documents (4.4.5) Operational control (4.4.6) Nonconformity, corrective action and preventive action (4.5.3) Emergency preparedness and response (4.4.7)
What Results? - (Performance Indicators) ISO/TS16949 Analysis of data (8.4.1) Customer satisfaction (8.2.1) Other Organisational objectives (5.4.1) Maintenance objectives (7.5.1.4) Cost of poor quality (5.6.1.1) Process capability (8.2.3.1) Management review (5.6.) Continual improvement results (8.5) Audit records (8.2.2)
ISO14001 Environmental aspects (4.3.1) Objectives, targets and programme(s) (4.3.3) Monitoring and measurement (4.5.1) Evaluation of compliance (4.5.2) Internal audit (4.5.5) Management review (4.6)
Support Processes: IT, Human resources, Logistics, Sales, Quality, Preventive maintenance
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To find out more visit www.industryforum.co.uk One-day Auditor refresher course Many organizations train auditors and then because of priorities/pressure of work they do not put into practice the skills learnt. We offer a one-day course specifically developed for auditors that want to refresh their skills, or for practicing auditors who want an update on the current thinking from IATF and the process approach. The course can be run in-house, or at open venues. To find out more visit www.industryforum.co.uk Two-day ISO9001: 2000 Internal auditor course This course is applicable for organizations in the automotive supply chain that are not eligible for ISO/TS16949: 2002 certification, but want to understand and implement the process approach to quality management and auditing. To find out more visit www.industryforum.co.uk If you have any questions related to any of the above courses, please visit our website, or contact Karen Smith on 121 717 6614.
Value added auditing Auditors often ask how the finance/accounts function can be audited within the context of a quality management system, as there is little reference to cost within ISO/TS16949: 2002 Firstly 7.2.2 requires that an organization reviews the customer contract and resolves any issues prior to acceptance. This should include verification of product and shipping costs. For design responsible organizations product cost is also mentioned in 7.3.2.1 Some recent audits have shown that in some organizations the process to ensure the customer is invoiced the correct price is not robust, and the link between the relevant functions involved in the process is not effective. This can cause customer dissatisfaction, maybe resulting in wasted time and credit/debit notes, or internal issues related to efficiency (the customer may not complain if not charged enough!) Given this situation it may be worth auditing this utilizing the process approach. Several customer contracts/orders could be selected, agreed prices noted, and then invoices selected in accounts related to products shipped related to the contracts/orders to ensure they match. As part of the process audit the process on how any agreed price changes, maybe resulting from an engineering change or cost down initiative are communicated to all concerned. 5
ISO/TS16949: 2002 also requires and organization to verify the effectiveness (customer satisfaction) and efficiency (organization or stakeholder satisfaction) Effectiveness could be integrated into the audit by reviewing credit/debit notes and ensuring there is any effective process to analyze the root cause of such problems and effective actions are taken to prevent reoccurrence. Efficiency could be reviewed by looking at the costing process and asking the question “ are we making any money from the sale of the product?” I would be interested in the results of any audits undertaken!
Feedback from recent ISO/TS16949: 2002 audits In discussing with organizations findings from external audits, there are a number of common themes running through the results. The following gives details of two issues: Quality Policy External auditors are encouraged to focus more on the organization policy, how it is linked to the organizations objectives and how it is effectively deployed through the organization. Many organizations have policies that contain bold or ambiguous statements. Internal audits should: Verify that any statements made are objective, and can be linked to the organizations objectives: Examples may be: “ABC is a world-class manufacturer of______” The audit questions should be: What is world class? Where are you in relation to the world-class criteria? Where there are any identified shortfalls what is being done to address this? “ABC strives to exceed customer requirements_______” The auditor questions should be: What is the process to understand customer expectations? How do you measure customer satisfaction? How do you strive to exceed customer requirements? Maybe by asking such questions this will encourage top management to review the policy for continued suitability and effectiveness.
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Production scheduling ISO/TS16949: 2002 clause 7.5.1.6 requires an organization: “Production shall be scheduled to meet customer requirements, such as just in time supported by an information system that permits access to production information at key stages of the process and is order driven” Many organizations implementing ISO/TS16949: 2002 have struggled to understand and meet this requirement. The first part of the requirement focuses on having a scheduling system that is geared up to meet customer requirements. The next part intimates that it should be possible through a system (note this does not say an electronic system) to find out the status of work in progress/finished stock. The last part states that the process is order driven. An organization may elect, as part of contingency planning, to carry a fixed minimum stock (this is also sometimes mandated by customers, but the intent of the requirement is that product is made to order/schedule, and not in anticipation of sale. Internal audits should focus on auditing this as a process (which may cut across several departments in an organization) to ensure the process is effective to meet customer requirements and efficient to meet the organizations requirements.
Funding SMMT Industry Forum has access to several programmes that provide funding to SME’s in the West Midlands area. If your organization would like to investigate this further, or if you have any suppliers that may be interested in such funding, please contact Paul Hardiman on
[email protected] or on 07790 771230 and we can investigate possible options.
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