by Robin OConnell

As anyone whos experienced the process can attest, implementing a quality standard can be an
intimidating task. Certainly ISO/TS 16949:2002, the new quality management system for the
automotive industry, seems at first glance as daunting as others of its kind. However, knowing how to
address implementation challenges in advance makes achieving a successful management system
much more realistic. Implementation veterans agree that starting the ISO/TS 16949 process early will
save unnecessary headaches and costly problems in the future.
The International Automotive Task Force designed ISO/TS 16949:2002 with smooth implementation in
mind. One of IATFs goals was to improve the implementation process, which had been criticized by
many organizations that implemented QS-9000 and ISO/TS 16949:1999.
To assist ISO/TS 16949s new approach to quality management, the Automotive Industry Action Group
published an implementation guide. Developed by a committee of suppliers, automotive
manufacturers and certification industry experts, the manual walks readers through the complete
implementation process.
Delphi Corp.s Terri Pratt and American Axle and Manufacturings Kelli Rogers went through the ISO/TS
16949:2002 registration process. They both contributed to the AIAGs guide and, in doing so,
identified five crucial points an organization should master before designing an ISO/TS 16949:2002
quality management system.

Step 1: Know the major additions

ISO/TS 16949:2002 is based on the ISO 9001:2000 quality management system standard. ISO
9001:2000s approach to quality management is significantly different than that of ISO 9000:1994,
the quality standard on which QS-9000 and ISO/TS 16949:1999 were based. ISO/TS 16949:2002
includes new guidance for automotive suppliers, but ISO 9001:2000 is the central tenet of ISO/TS
16949:2002. Companies implementing ISO/TS 16949:2002 will find ISO 9001:2000s relevant content
highlighted in boxed text.
The single most significant change in 2002s ISO/TS 16949 is the dramatic increase in customer
focus, Pratt notes. Significantly more emphasis is placed on customer satisfaction in the latest
revision. The IATF, which developed ISO/TS 16949, expects 2002 audits to focus heavily on customeroriented processes, or COPs.
COPs underscore the need for organizations to include customer input as an essential part of meeting
customer requirements. Understanding customer requirements drives not only the COPs but also the
measurement and goal of customer satisfaction--both major focuses of ISO/TS 16949:2002 audits,
Pratt adds. By meeting customer requirements, customer satisfaction can be achieved.
Customer satisfaction is accomplished by adding value to the product-realization processes. These
processes include developing, constructing, distributing and managing an organizations product.
There are 15 new or expanded requirements in ISO/TS 16949:2002. Four major differences from
previous automotive quality requirements include:
Management commitment. Managements role as a key player in the process is emphasized more in
ISO/TS 16949 than it was in QS-9000. Top management has certain responsibilities that it must
accept rather than delegate to others. Prepare top managers to become more involved with the
registration audits.

Customer communication. At least 50 percent of the audit will focus on customer-specific

requirements.
Measurement. Metrics, trends, analysis and improvement are heavily reviewed during audits.
Internal auditor qualifications. Focus on customer-specific requirements for auditor qualifications.

Step 2: Understand the new

approach
ISO/TS 16949:2002 made a great
leap from the 1999 versions
vertical breakdown of the process
approach. ISO/TS 16949:1999
divided organizations into distinct
units--also called the silo
approach--and assessed each part
as a separate entity. This didnt
account for the sequence and
interaction of their processes.
The process approach is
horizontal, Rogers says. A process
is a set of interrelated or interacting activities that transform inputs to outputs. It considers the entire
system and its linkages. The process approach can look at the links within an organization and confirm
that theyre functioning or if theres a disconnect. Determining disconnects opens opportunities for
improvement not previously recognized under QS-9000 or ISO/TS 16949:1999.
Determining what customers require will help an organization develop its quality management system.
The figure on page 25 illustrates how customer requirements are applied to each step of a products
life cycle. The final output should result in customer satisfaction.
The process approach begins and ends with the customer. Jumping from an elemental approach to
the process approach is a challenge, Pratt admits. The key isnt just containing problems discovered
while implementing and auditing ISO/TS 16949, which may be a temporary fix, but also addressing
daily business with the links in mind.

Step 3: Measure up
An organizations measurement techniques are also highlighted for review during ISO/TS 16949
audits. Does the organization understand the measurements? Do they make sense? Correctly selecting
what business elements to measure and how to approach that process will lead to greater customer
satisfaction.
Avoid frequently used measurements that dont provide useful feedback, Rogers recommends.
Instead, choose measurements that apply to the individual characteristics of the organization. The

goal is to communicate productive information with the results and provide a baseline for continual
improvement. Auditors will have an idea of areas to measure, but internal management knows best
what will be most telling for the company.
Frank Lomas, BSIs technical certification manager, was another member of the team that put together
the AIAGs implementation guide. Customer rating and customer complaint measurements are a good
place to start when looking to assess internal results, he says. Customer complaint responses are
particularly useful for tracking efficiency and effectiveness, the ultimate objectives of ISO/TS 16949.
Align organizational activities to the measurements most important to the customer. Using customer
feedback captured by pertinent measurements will help ensure that the customers perspective is
central to the management systems objectives.
Measurement on the manufacturing floor is done in a variety of ways, but measuring a process in an
office environment can be more difficult. Carefully scrutinize potential measurements. Are they the
right ones? Do you need to create a new measurement, or does one naturally lead to another? Be sure
to align measurements with the objectives of the process approach.

Step 4: Be efficient and effective

The great thing about ISO/TS 16949 is that it was developed with an aim of getting away from the
compliance that grew out of QS-9000, Lomas emphasizes. The assessments are focused on
improving efficiency and effectiveness.
Unlike QS-9000, ISO/TS 16949 goes beyond basic compliance and seeks organizational efficiency and
effectiveness from quality management systems.
Effectiveness is determined by assessing the systems outputs in relation to its inputs, comparing
process outputs to the organizations objectives and analyzing the measurements used to track
progress. If measurements arent telling the right story, they must be reconsidered.
The quality management systems effectiveness will be extensively reviewed during audits. The ability
to show examples of business tracking and striving for continual improvement will also be expected.
Meeting expectations might satisfy certification requirements, but a little extra thought and effort can
provide additional bottom-line savings and overall business improvement. This is a common-sense
standard, says Pratt. If you have an implement and forget it attitude, youll miss the point and the
benefits that ISO/TS 16949 can provide.
Being both effective and efficient creates a common language between the customer and the
organization. For example, a company might be effective in producing a quality product due to
containment efforts, and customer ratings might show this. But at the same time, the process to
achieve these results might not be efficient because of the extra personnel needed to sort the product.
Efforts to achieve balance go hand in hand with continual improvement, Lomas explains. ISO/TS
16949s flexibility allows audits to tailor to individual organizations--they dont have to fit the same
model to accomplish company goals.

Step 5: Avoid pitfalls

Learn from other companies pitfalls, advises Rogers. Others have already gone through the process
of upgrading and have encountered situations that should be avoided. Knowing these situations ahead
of time is a great way to start.
Techniques for avoiding the common pitfalls of each stage of implementation follow.

Before the audit

Select a registrar. Not all registrars accredited to register companies to QS-9000 are qualified to
register to ISO/TS 16949. Delphi and American Axle used BSI Management Systems to register more
than 50 sites. Delphi consolidated 35 sites to a single corporate registration. American Axle
upgraded 11 facilities to ISO/TS 16949:2002 with 11 unique registrations.
Switch registrars if needed. If you decide to change from your QS-9000 registrar, youll not be able to
receive a discount on personnel-days for your upgrade.
Have customer-specific requirements. Many automotive manufacturers have developed certain
documented requirements. Note that several OEMs and tier-one customers have likewise composed
customer-specific requirements of their own. Obtain copies of all requirements before registration and
plan accordingly, Lomas stresses. Too often these are overlooked, and the certification process is
delayed.
Ensure the timeliness of registration. OEMs wont be sympathetic to suppliers that miss the required
registration date. Organizations should plan well in advance for their transition. Remember, there are
significantly fewer accredited registrars and auditors available to perform ISO/TS 16949 services than
there are for ISO 9001 services.
Schedule multiple sites. When several sites are involved in a companys registration, its advisable
that the sites with the supporting processes be audited first. During multiple site registrations,
auditing the supporting processes during the earlier stages of registration allows the audit team to
adequately assess the interactions among all the sites. The manufacturing site cant receive
registration until the support sites have been audited.
Know the auditor. ISO/TS 16949 has certain requirements for third-party auditors, including prior
experience in the organizations field. Being familiar with an auditors background can assist the
organization in determining the auditors areas and level of expertise. Requesting a biography or other
information from new auditors for review is common.

During the audit

Management responsibility. Management should play a supportive and directive role in an
organizations quality management system. A show of management support and direction for ISO/TS
16949 is required.
Competence, awareness and training. ISO/TS 16949 training requirement goes beyond QS-9000
requirements. Not only must the organization show that it has trained its employees appropriately, but
it must also show that employees are competent at their jobs.

Employees must be aware of their effect on the quality objectives and goals of the organization,
Rogers says. Auditors will seek proof that employee competence requirements are in place and
actively followed.

After the audit

Act quickly. A follow-up of any major or minor nonconformances found by the registrar should be
addressed quickly, with any necessary corrective actions planned and organized immediately. During
the initial audit, if a major or minor nonconformance is issued, the registrar will inform the
organization of the time required for submitting a corrective action.

Ready to begin?
Auditors are on the lookout for organizations that try to sell their developed ISO/TS 16949 plans but
dont practice them on a daily basis. Management must not only understand the management system
in place but must also continually participate in its upkeep.
As automotive supplier deadlines approach in 2004 and beyond, getting a jump-start on ISO/TS
16949 planning is a wise move. Audits will focus on activities and objectives most important to
customer satisfaction. Begin by understanding the process approach and then practice it daily. Step
back and see your management system as a whole, Rogers recommends. Use common sense, and
take advantage of the standard to improve your business.

About the author

Robin OConnell is head of public relations for BSI Management Systems in the Americas. Contact
OConnell by calling (703) 464-1903, or visit www.bsiamericas.com.