Automotive Quality Systems Handbook
Automotive
Quality Systems
Handbook
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Automotive
Quality Systems
Handbook
David Hoyle
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Butterworth-Heinemann Ltd
Linacre House, Jordan Hill, Oxford OX2 8DP
225 Wildwood Avenue, Woburn, MA 01801-2041
A division of Reed Educational and Professional Publishing Ltd
A member of the Reed Elsevier plc group
OXFORD BOSTON JOHANNESBURG
MELBOURNE NEW DELHI SINGAPORE
First published 2000

Quality 19
Classification of products and services 20
Quality and price 22
Quality and cost 22
High quality and low quality; poor quality and good quality 23
Quality characteristics 24
Quality, reliability, and safety 25
Quality parameters 25
Dimensions of quality 26
Achieving, sustaining, and improving quality 28
Quality control (QC) 31
Quality improvement (QI) 34
Quality assurance (QA) 37
Quality goals 40
Quality systems 41
Quality and ISO/TS 16949 43
A postscript on definitions 44
Chapter 3 The differences 45
Provisions of ISO/TS 16949 45
Scope of the standard 46
Differences with ISO 9001 46
Differences between existing automotive quality system requirements 48
Additional requirements 58
Removed requirements 60
Contents
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Chapter 4 Implementing ISO/TS 16949 61
Step 1 Coherence check 62
Step 2 Cultural analysis 62
Step 3 System analysis 63

Quality planning (4.2.3) 186
Product realization (4.2.4) 196
Plant facility and equipment planning (4.2.5) 212
Tooling management (4.2.6) 214
Process improvement (4.2.7) 215
Quality system performance (4.2.8) 215
Chapter 3 Contract review 221
Scope of requirements 221
Procedures for contract review (4.3.1) 223
Coordinating contract review activities (4.3.1) 224
Ensuring that the requirements are adequately defined and
documented (4.3.2.1a) 225
Resolving differences (4.3.2.1b) 227
vi Contents
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Ensuring that the supplier has the capability to meet contractual
requirements (4.3.2.1c) 227
Identifying cost elements (4.3.2.2) 229
Meeting customer-specific requirements (4.3.2.2) 230
Amendments to contract (4.3.3) 230
Maintaining records of contract reviews (4.3.4) 231
Application of requirements 231
Chapter 4 Design control 235
Scope of requirements 235
Design procedures (4.4.1) 237
Design and development planning (4.4.2) 238
Design interfaces (4.4.3) 242
Design input (4.4.4) 245
Design optimization (4.4.5.2) 250
Design output (4.4.5) 251

Verification of customer supplied product (4.7.1) 334
Storage of customer supplied product (4.7.1) 335
Maintenance of customer supplied product (4.7.1) 335
Reporting problems to the customer (4.7.1) 336
Marking customer-owned tooling (4.7.2) 337
Contents vii
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Chapter 8 Product identification and traceability 339
Scope of requirements 339
Procedures for identifying product 340
Traceability 341
Chapter 9 Process control 345
Scope of requirements 345
Planning production, installation, and servicing processes (4.9.1.1) 347
Ensuring that work is carried out under controlled conditions (4.9.1.1) 348
Documented procedures and job instructions (4.9.1.1 and 4.9.2) 352
Suitable production, installation, and servicing equipment (4.9.1.1b) 355
Suitable working environments (4.9.1.1b) 355
Compliance with reference documents (4.9.1.1c) 356
Controlling process and product characteristics (4.9.1.1d) 357
Approval of processes and equipment (4.9.1.1e) 358
Workmanship criteria (4.9.1.1f) 358
Maintenance of equipment (4.9.1.1g and 4.9.1.5) 359
Special processes (4.9.1.1) 362
Maintaining cleanliness of premises (4.9.1.2) 364
Preparing contingency plans (4.9.1.3) 365
Designation of special characteristics (4.9.1.4) 366
Process capability and process control (4.9.1.1g and 4.9.3) 366
Verification of job set-ups (4.9.4) 369
Appearance items (4.9.5) 370

Chapter 13 Control of nonconforming product 433
Scope of requirements 433
Classifying nonconformities 435
Ensuring that nonconforming product is not used (4.13.1.1) 436
Identifying nonconforming product (4.13.1.1 and 4.13.1.2) 436
Documenting nonconforming product (4.13.1.1) 437
Evaluation of nonconforming product (4.13.1.1) 438
Segregation of nonconforming product (4.13.1.1 and 4.13.1.2) 438
Disposition of nonconforming product (4.13.1.1) 438
Nonconformity reduction plan 439
Defining disposition responsibility (4.13.2) 439
Review of nonconforming product (4.13.2, 4.13.3, and 4.15.3.2) 440
Use of nonconforming product (4.13.2 and 4.13.1.3) 443
Deviating from approved processes (4.13.4) 444
Recording the actual condition of nonconforming product (4.13.2) 445
Re-inspection of repaired and reworked product (4.13.2) 445
Chapter 14 Corrective and preventive action 449
Scope of requirements 449
Corrective and preventive action procedures (4.14.1.1) 452
Assessing the degree of corrective and preventive action necessary (4.14.1.1) 453
Implementing and recording changes in procedures (4.14.1.1) 453
Corrective action (4.14.2) 454
Preventive action (4.14.3) 462
Chapter 15 Handling, storage, packaging, preservation, and delivery 473
Scope of requirements 473
Handling, storage, packaging, preservation, and delivery procedures (4.15.1) 475
Handling (4.15.2) 475
Storage (4.15.3) 476
Inventory (4.15.3.2) 479
Controlling packing, packaging, and marking processes (4.15.4.1) 480

Scheduling quality audits (4.17.1) 515
The independence of auditors (4.17.1) 516
Reporting the results of audits (4.17.1) 517
Taking timely corrective action (4.17.1) 518
Follow-up audits (4.17.1) 519
Auditor qualification (4.17.3) 519
Chapter 18 Training 525
Scope of requirements 525
Identifying training needs (4.18.1) 527
Providing for training (4.18.1 and 4.18.3) 529
Qualification of personnel (4.18.1) 531
Evaluation of training effectiveness (4.18.2) 532
Maintaining training records (4.18.1) 533
Increasing sensitivity to customer requirements (4.18.3) 534
Chapter 19 Servicing 537
Scope of requirements 537
Performing servicing (4.19.1) 539
Reporting that services meet specified requirements (4.19.1) 541
Verifying that servicing meets specified requirements (4.19.1) 543
Communication of service concerns (4.19.2) 543
Servicing agreements with customer (4.19.3) 544
Chapter 20 Statistical techniques 547
Scope of requirements 547
Identifying the need for statistical techniques (4.20.1) 548
Implementing and controlling the application of statistical techniques (4.20.2) 550
Knowledge of basic statistical concepts (4.10.4) 550
Appendices
A Glossary of terms 553
B Acronyms 567
C Bibliography 568

advantage. Although in the automotive industry the sector quality system requirements
do address many of the weaknesses of ISO 9001, there has been distrust with the certi-
fication schemes, as the effectiveness of these schemes is only as good as the auditors
employed by the certification bodies. By harmonizing the certification schemes and hav-
ing binding agreements with all vehicle manufacturers, auditor competency will be
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enhanced, a higher level of confidence should begin to develop within the global auto-
motive industry, and product quality will improve  not that quality has been a
significant problem in the automotive industry in the last 10 years!
I bought my first car in the mid 1960s, at a time when rust started to appear before cars
were three years old. Major repair became necessary before engines had done 40,000
miles. On the other hand, I recently sold my 10-year-old car and although it had done
70,000 miles, there was not a sign of any rust and it had never left me stranded away
from home. There are countless cars that have traveled more than 100,000 miles and
remain in good working order. Durability, however, is not the characteristic challenging
the automakers. Safety is number one, followed by reliability and production cost, but
it is cost that drives the quest for better methods, better processes, and better ways of
preventing defects.
The book is in two parts, with the first part devoted to the origins of the standard and
the differences between ISO/TS 16949 and other automotive quality system require-
ments, with some guidance on implementation. I have included a chapter on basic
concepts from my
ISO 9000 Quality Systems Handbook
, with some slight modification.
The second part is divided into chapters that reflect the order of subsections in section
4 of the standard. Each chapter dissects the requirements of ISO/TS 16949, taking each
shall statement and sometimes part of a shall statement and explaining the mean-
ing and the applicability, and offering a range of solutions. At the end of each chapter is
a task list, questionnaire, and list of dos and donts.
Although the book addresses all the requirements of ISO/TS 16946, readers are strong-

Shorma of Plexus-Training, who with the other members of the Training Council creat-
ed an environment rich in ideas, knowledge, and experience.
Extracts from BS EN ISO 9001:1994 are reproduced with permission of BSI under
license PD\1999 0881. Complete copies of the standard can be obtained by post from
BSI Customer Services, 389 Chiswick High Road, London W4 4AL.
Extracts from ISO/TS 16949 and the
Rules for Achieving IATF Recognition
are pro-
duced with permission of the IATF. Complete copies of these documents can be
obtained from SMMT, Forbes House, Halkin Street, London SW1X 7DS.
I am also indebted to Manfred Martelock of VDA and Robin Lock of SMMT for their cri-
tique and help during the final stages.
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Part 1
Understanding ISO/TS 16949
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+D=FJAH
The origins
ISO 9000 is now a familiar label to many organizations. Since 1987 it has dominated
the field of quality management and sometimes even to the exclusion of all other qual-
ity issues. To some it conjures up mountains of paperwork, bureaucratic procedures,
form filling, and non-value added activities, a kind of demon let loose in the workplace!
To others it is just common sense, merely codifying principles that have been applied by
successful businesses for generations. Both are right because the ISO 9000 family of
standards is what people perceive it to be. For a document to become an international
standard it must be acknowledged by many nations as defining good practice. This does
not mean the standard defines all practices that one should adopt. Standards are min-
imums not maximums. Like hygiene standards, there is a minimum standard below

consis-
tent
quality from their suppliers. In place of purchaser-specified general quality
management requirements, ISO 9000 became the common requirement and hence
eliminated the need for such requirements. As a consequence, it provides suppliers that
meet its requirements with a demonstrable capability that others may not possess and
hence such capability becomes a persuasive marketing tool that will increase market
share. ISO 9000 was also intended for application to all types of industry and therefore
did not contain requirements for any specific industry sector or type of products or serv-
ices. Partially due to the scope of misinterpretation and the degree to which particular
industries have common supplier requirements, certain industry sectors perceived the
need for harmonizing such requirements in a form that added to those requirements in
ISO 9000.
The drive for these additional requirements has come not from the suppliers but from
users, such as the automotive, utilities, telecommunications, software, and aerospace
industries which purchase millions of products and services used to produce the goods
and services they provide to the consumer. Rather than invoke customer-specific condi-
tions in each contract, the larger purchasers perceive real benefits from agreeing
common quality system requirements for their industry sector. Quite often a supplier will
be supplying more than one customer in a particular sector and hence costs increase for
both the supplier and the customer if the supplier has to meet different requirements that
serve the same objective. All customers desire products and services that
consistently
meet their requirements. While the physical and functional requirements for the product
or service will differ, the requirements governing the manner in which their quality is to
be achieved, controlled, and assured need not differ. Differences in quality system
requirements may arise between industry sectors where the technology, complexity, and
risks are different.
There are those who see the emergence of sector standards as a retrograde step, having
reached the stage where we have condensed all the worlds national quality system stan-

mittee was formed. Using BS 5750 as its basis, the ISO 9000 series of standards was born.
Although the UK, and in particular the UK automotive industry, had been at the fore-
front of the development of non-military quality system standards, harmonization within
the automotive sector beyond BS 5750 was believed too difficult to achieve. Using
BS 5750 as a baseline only, the UK motor manufacturers continued to develop their
own supplementary standards, many of which are still in use today. BS 5750, and its
successor ISO 9000, was enforced by the UK automotive industry and no further har-
monization took place.
The American contribution
In 1988, the Purchasing and Supply Vice Presidents of Chrysler, Ford, and General
Motors chartered a Task Force to standardize reference manuals, reporting formats, and
technical nomenclature, resulting in five standardized reference manuals.
The origins 5
2
Standards, Quality and International Competitiveness
(HMSO, July 1982)
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In 1992, the Chrysler, Ford, and General Motors Task Force set out to harmonize the
fundamental supplier quality system manuals and assessment tools and produced
QS-9000. This new standard embodied the requirements of ISO 9001 and added gener-
ic requirements, sector-specific requirements, and customer-specific requirements.
QS-9000 was first published in August 1994 and is a harmonization of Chryslers
Supplier Quality Assurance Manual
, Fords
Q101
, and General Motors
Targets for
Excellence
, with some input from the Truck Manufacturers. It is pertinent that it was the
Purchasing Vice Presidents of Chrysler, Ford, and General Motors that set up the task

The Italian contribution
In 1994, ANFIA published AVSQ 94 with the title
ANFIA Evaluation of Quality Systems
 Guidelines for Use
. This consisted of both a checklist and a user guide. For each ques-
tion in the checklist there are guidelines on interpretation that are specific to the
automotive industry. The checklist of questions is placed on the left-hand page and the
guidance on the right-hand page. The guidance actually reads more like requirements,
as in many statements the word must is used  although this could be translation error
and not intent. The questions are derived from ISO 9001. ANFIA published a second
document that lists the same questions and includes evaluation forms for completion.
By 1995, AVSQ 94 was in the third edition, in which VDA 6 second edition, EAQF 94,
and ISO 9004-1:1994 have been used. Thus reciprocal recognition at the European
level was achieved whereby certification to AVSQ 94 was recognized as equivalent to
VDA 6.1 and EAQF 94 certification.
Like VDA 6.1, AVSQ 94 does not include the requirements of ISO 9001. In this way
issues of copyright are overcome, a practice shared by VDA and EAQF but not QS-
9000. However, unlike VDA 6.1, AVSQ 94 follows the 20 elements of ISO 9001 with
two additional elements, covering financial considerations and product safety. Those
questions that go beyond ISO 9001 are marked and as every question is numbered it
simplifies the evaluation process. A scoring method is employed to classify organizations
in terms of a conformity index. Each question is awarded a point (0, 2.5, 5, 7.5, or 10),
where 10 points means full compliance, 7.5 points means minor inadequacies, 5 points
means inadequacies in application requiring improvement, 2.5 points means serious
inadequacies in application, and 0 points is used for criteria not applied. Unfortunately
all questions carry the same weight as no account of the impact of omission on product
quality or customer satisfaction is included.
The French contribution
In 1990, PSA Peugeot-Citroen and Renault released a supplier quality assurance publi-
cation with the title

phenomenon. Ford chose another way, by building manufacturing plants overseas and
designing and producing cars for the local market. In Europe that market has grown
beyond a single country and although the cars may have different names they have the
same body parts and engines. GM bought the British company Vauxhall in 1925 and
the German company Adam Opel in 1929, then in 1931 GM bought the Australian
company Holden. The Big Three (Ford, GM, and Chrysler) have been global players for
many years. In Europe acquisitions have been rather slower. In 1969, VW bought Audi
and then, after a long gap, acquired Seat in 1986.
There are several joint ventures, such as the Multi Purpose Vehicles (MPV) that Ford,
Nissan, and VW produce: exactly the same vehicle with slight modifications. Ford, Seat,
and VW also produce a common MPV and there are several partnerships, such as Rover
engines being supplied to Proton, Ford, and Honda. Lada get their chassis from Fiat and
their engines from GM. Mitsubishi build the Carisma in Holland in the same plant that
Volvo build the S40. The Porche Boxster is assembled in Finland by the same compa-
ny that assembles the Saab 9-3 cabriolet, and so on. One cannot be sure who owns the
company that makes your car, where the components come from, and where it is assem-
bled. What matters is that it meets your needs and expectations and this can only be
achieved if there are some common systems in use in each of the countries, so that who
owns who and who builds what becomes irrelevant to customer confidence. It is report-
ed that within 20 years there may only be six vehicle manufacturers left in the world
3
.
8 The origins
3
Auto Express
, January 1999
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The origins 9
Marque Origin Est.
Owner

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10 The origins
Figure 1.1 Contributors to ISO/TS 16949
QS-9000
General Motors
Daimler-Chrysler
Ford
Fiat Auto
IVECO
.
PSA Peugeot
Citroen
Renault
AVSQ
EAQF
VDA 6.1
Ford Werke
BMW
Daimler Benz
Audi
VW
Adam Opel
IATF
ISO/TS 16949
ANFIA
FIEV
VDA
AIAG
SMMT
Both Adam Opel AG and Ford