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Half day Seminar for Automotive Vendors / Suppliers of Dewan Mushtaq Groups Automotive Division
At the initiative of Mr. Habib Uddin Sharf
General Manager Manufacturing Division

March 29, 2005

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INTRODUCTION TO

The Fine Art of Consulting Services

We strive to provide one-stop shopping to customers with diverse business needs such as sustainable Capacity Building, Corporate Ethics, Regulatory and Social Compliance, Governance and Communications.
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OUR MISSION
n Facilitating

business-houses to foster

in

creating

an and

environment

leadership

sustainable capacity building in all spheres of their business processes so as to integrate their business goals with social and environmental aspirations of the civil society with the help, support and guidance of all the stakeholders.

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OUR VISION
n We visualize that Pakistani business-houses

shall

be

committed

to

harness and

Quality,

Efficiency, by

Transparency

Accountability improving

Culture in Business and Production processes imparting training, communication and initiating dialogues with all the stakeholders, in order to effectively operate in the multilateral trading system.
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BUSINESS AND ECONOMIC SCENARIO UNDER WTO

n With

the abolition of Tariff Barriers Local

Industries (LIs) will not have tariff protection.

n LIs have to compete with International Players

even to sell in the domestic market.

n LIs have no option but to harness quality,

efficiency, culture in

transparency their

and

accountability production

business

and

processes to meet the challenges of becoming competitive in the market.

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IATF
IATF comprises Automotive OEMs, National Industry Associations, Certification Bodies and other organizations associated with Automotive Industry. The primary goal of IATF is development of a Single and Global a QUALITY credible and MANAGEMENT result oriented SYSTEM model ensure for Automotive Supply Chain

Certification process for this specification.

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ISO/TS 16949:2002 CONSOLIDATION OF VARIOUS AUTOMOTIVE STANDARDS

ISO/TS 16949:2002 is today recognized as acceptable alternative to various Automotive

Standards by Automotive Business Community across the globe.

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SURVEY OF BENEFITS SHOW THAT AFTER QS-9000 IMPLEMENTATION

n 48% improvement in Defect Rate; n 38% improvement on Delivery Performance.

The findings prove savings to Vendors through:

n Continual Improvement; n Defect Prevention; n Reduction of Waste.
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CUSTOMERS EXPECTATIONS

n Automotive

Customers

today

expect

their

Supplier organizations to Implement Systems based on ISO/TS 16949:2002.

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GOAL OF PRESENTATION

n Background of QS-9000 and ISO/TS 16949:2002 n How it is different from ISO 9001:2000 n Goal of ISO/TS 16949:2002 n Benefits of getting Certified

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BACKGROUND - QS 9000

n First time published in 1994; n Established by big three i.e. Ford, Chrysler

and General Motors;

n ISO 9001:1994 is the basic standard; n Specific requirements of automotive industries

are added.
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APPROACH -- ?

Requirements of QS-9000 are taken from:

n Chryslers supplier Quality Assurance Manual; n Fords Q-101 Quality System Standard; n General Motors NAO targets for excellence.

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IMPLEMENTATION OF QS-9000

n It is the requirement of 3 Big and Truck

manufacturers that suppliers must establish, document, implement effectively a Quality Management System based upon the requirements of QS-9000.

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BACKGROUND ISO/TS 16949:2002

n Established by International Automotive Task

Force (IATF), Japan Automobile Manufacturing Association and ISO TC 176;

n First time published in 1999, revised in 2002; n Replace QS-9000 by end of year 2006.

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SCOPE ISO/TS 16949:2002

This Standard specify the requirements Of QMS where an Organization:
n Need to demonstrate its ability to consistently

provide product that meets customers applicable regulatory requirements;

and

n Aim to enhance customer satisfaction via Continual

Improvement;

n Applicable to all sites where customers parts are

manufactured;

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ISO/TS 16949:2002 STRUCTURE

Business Planning

ISO 9000
Advanced Product Quality Planning Production Part Approval Process

ISO/TS 16949:2002

FMEA
Measurement System Analysis

SPC ISO/TS 16949:2002 17

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ISO/TS 16949:2002 STRUCTURE BUSINESS PLAN

n Establish a comprehensive Business Plan; n Must include the Short Term and Long Term

Objectives;

n Plan to achieve those objectives.

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ISO/TS 16949:2002 STRUCTURE APQP

n Concept initiation and feasibility review; n Product design; n Process design; n Product and process validation; n Feedback; n Establishment of Control Plans.

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ISO/TS 16949:2002 STRUCTURE FMEA

n A complete Risk Assessment of each process; n Mode of failure, effects, causes and control are

determined;
n Processes are classified as risky or non-risky; n Actions are taken to reduce the risks.

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ISO/TS 16949:2002 STRUCTURE MSA

n Error due to Equipment; n Error due to Operator; n Error among different Operators; n Error due to Environment; n Error due to Continuous Usage; n It

should Tolerance.

be

less

than

30%

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of

Product

ISO/TS 16949:2002 STRUCTURE SPC

n Determination of CPk; n Process capability should be more than 1.33,

ultimate target is 1.67;

n Observe abnormalities by applying X-R Chart; n Apply PARETO Chart for attribute data.

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ISO/TS 16949:2002 STRUCTURE PPAP

n Pilot lot should of 300 parts or as defined by

customers;
n CPk should be between 1.33 to 1.67; n Complete analysis of Pilot lot; n Attach defined formats.

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ISO/TS 16949:2002 STRUCTURE CONTINGENCY PLAN

n Establish plan for emergencies like Power Shut

Down, Labor Shortage, Strikes etc.

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BENEFITS OF PRODUCING QUALITY PRODUCTS

n Customer Satisfaction; n Conformance to Quality Requirements; n Reduction in Variation and Waste; n Reduction in Cost; n 100% on Time Delivery; n Lower Inventory Levels; n Increased Efficiency; n Increased Productivity; n Improved Delivery; n Improved Communications.
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PROJECT DURATION

n Around 6-8 months if organization is certified

to ISO 9001:2000;
n Minimum of one visit per week; n This would cover Training, Documentation,

Implementation and Internal Auditing.

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PROJECT COST INCLUDING CERTIFICATION

The Project Cost essentially depends upon following:

n Outcome of Gap Analysis to be carried out by

free of cost;
n Number of Employees / Number of Factories /

Locations.
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POSSIBILITIES OF TECHNICAL COLLABORATIONS AND JOINT VENTURES

n Implementation of ISO/TS 16949:2002 will

help in opening doors to Local Vendors for Technical Collaboration and or Joint Ventures with reputed International names.
n

can provide assistance to Local Vendors and devise methodologies to approach and get Technical Collaboration and or Joint Ventures with reputed International names. 16949:2002 ISO/TS
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METHODOLOGIES TO RAISE FINANCES FOR

n Product Development n Fixed Capital Investment n Timely Delivery of Quality Products

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Thanks for your attention and patience hearing Now the house is open for Question and Answer Session

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