7 key benefits of IATF 16949 implementation

Dear Alejandro,

It can be hard to sell a new idea or process to upper management, especially when
it is difficult to show direct ROI.

However, implementing a Quality Management System, like IATF 16949, has the
following direct benefits you can use to convince them:

 Improvement of your credibility and image

 Qualification to supply the automotive industry
 Improvement of customer satisfaction
 Better process integration
 Improved evidence for decision making
 Creation of a continual improvement culture
 Engagement of employees

Here’s an article that explains these benefits in more detail – just click the link and
go to the “Benefits” section.

Introduction

What is IATF 16949?

“What is IATF 16949?” Are you looking for a simple

answer to this question?
Well, you’re not alone. This overview guide can help you learn why IATF 16949 creates
benefits across your organization, discover what the IATF 16949 requirements are, and
learn the practical steps you need to take to get certified.

Your simple introduction to the basics of IATF 16949

One of the automotive industry’s most widely used international standards for quality
management, ISO/TS 16949, is evolving with the publication of a new global industry
standard by the International Automotive Task Force (IATF). This latest version was
developed with an unprecedented level of industry feedback and engagement by AIAG
members representing North America.
ISO/TS 16949 from 2009, a technical specification for automotive sector quality
management systems, has become one of the most widely used international standards in
the automotive industry, harmonizing the different assessment and certification systems in
the global automotive supply chain.

On October 3, 2016, IATF 16949:2016 was published by the IATF and therefore
supersedes and replaces the current ISO/TS 16949:2009, defining the requirements of a
Quality Management System for organizations in the automotive industry.

A survey of ISO/TS 16949 certification at the end of 2015 shows that in spite of the global
recession, the number of companies that have implemented an ISO/TS 16949 Quality
Management System still shows a general positive trend worldwide

Data taken from the 2015 ISO Survey

What is a Quality Management System?

What is a Quality Management System?

The Quality Management System, which is often referred to as a QMS, is a collection of
policies, processes, documented procedures, and records. This collection of documentation
defines the set of internal rules that will govern how your company creates and delivers
your product or service to your customers. The QMS must be tailored to the needs of your
company and the product or service you provide, but the IATF 16949 standard provides a
set of guidelines to help make sure that you do not miss any crucial elements that a QMS
needs to be successful.
Importance of IATF 16949

Getting to the heart of why IATF 16949 is important

As stated above, IATF 16949:2016 is the global technical specification and quality
management standard for the automotive industry based on ISO 9001:2015. It is designed
to be used in conjunction with ISO 9001:2015, and contains supplemental requirements
specific to the automotive industry rather than being a stand-alone QMS.

IATF 16949:2016 brings together standards from across Europe and the U.S., outlining
everything you need to know about achieving best practice when designing, developing,
manufacturing, installing, or servicing automotive products. It is intended to be used by
organizations of any size or industry, and can be used by any company. As an international
standard, it is recognized as the basis for any company to create a system to ensure
customer satisfaction and improvement, and as such, many companies demand this as the
minimum requirement for an organization to be a supplier.

Because you are auditing your processes, as well as having a certification body audit them,
your customers themselves do not need to audit your company. It is because of this that
IATF 16949 has become a necessity for many companies to compete in the market.

Structure of IATF 16949

What does IATF 16949 actually look like?

The IATF 16949 structure is split into 11 sections. The first three are introductory, with the
last seven containing the requirements for the Quality Management System. Here is what
the seven main sections are about:

Section 4: Context of the organization – This section requires the organization to

determine its context in terms of the Quality Management System, including interested
parties and their needs and expectations. It also defines the requirements for determining
the scope of the QMS, as well as general QMS requirements.

Section 5: Leadership – This clause of the standard requires top management to

demonstrate leadership and commitment to the QMS, along with defining corporate
responsibility and the quality policy. The top management must also assign process owners
along with other roles and responsibilities.

Section 6: Planning – The section on planning defines requirements for addressing risks
and opportunities and the requirements for risk analysis. This clause also includes
requirements for preventive actions, contingency plans, and quality objectives and plans to
achieve them.
Section 7: Support – In this clause you can find requirements for the resources and
supporting processes needed for an effective QMS. It defines requirements for people,
infrastructure, work environment, monitoring and measuring resources, organizational
knowledge, competence, awareness, communication, and documented information.

Section 8: Operation – The product requirements deal with all aspects of the planning and
creation of the product or service. This section includes requirements on planning, product
requirements review, design, purchasing, creating the product or service, and controlling
the equipment used to monitor and measure the product or service. IATF 16949 allows for
requirements in clause 8.3, regarding design and development of products, to be excluded if
they are not applicable to the company.

Section 9: Performance evaluation – This section includes the requirements needed to

make sure that you can monitor whether your QMS is functioning well. It includes
assessing customer satisfaction, internal audits, monitoring products and processes, and
management review.

Section 10: Improvement – The last section of the standard defines the requirements for
continual improvement of the QMS, including requirements for nonconformities and
corrective actions, problem solving, and error-proofing processes.

These sections are based on a Plan-Do-Check-Act cycle, which uses these elements to
implement change within the processes of the organization in order to drive and maintain
improvements within the processes.

Benefits of IATF 16949

Why is IATF 16949 a good idea for your organization?

The benefits of IATF 16949 cannot be overstated; companies large and small have used this
standard to great effect, discovering and securing tremendous cost and efficiency savings.
Here are just a few of these benefits:

Improve your image and credibility – When customers see that you are certified by a
recognized certification body, they will understand that you have implemented a system
that is focused on meeting customer requirements and improvement. This improves their
trust that you will deliver what you have promised.

Qualify to supply the automotive industry – This is one of the main drives for companies
to get certified against IATF 16949. In order to get big customers from the automotive
industry, you have to demonstrate that you are able to provide high-quality products with
no defects, and an IATF 16949 certificate will prove it.
Improve customer satisfaction – One of the key principles of the IATF 16949 QMS is the
focus on improving customer satisfaction by identifying and meeting customer
requirements and needs. By improving satisfaction, you improve repeat customer business.

Fully integrated processes – By using the process approach of IATF 16949, you not only
look at the individual processes in your organization, but also at the interactions of those
processes. By doing this, you can more easily find areas for improvement and resource
savings within your organization.

Use evidence-based decision making – Ensuring that you are making decisions based on
good evidence is a key to the success of an IATF 16949 QMS. By ensuring that your
decisions are based on good evidence, you can better target resources to the best effect to
correct problems and improve your organizational efficiency and effectiveness.

Create a culture of continual improvement – With continual improvement as the main

output of the QMS, you can attain ever-increasing gains in savings of time, money, and
other resources. By making this the culture of your company, you can focus your workforce
on improving the processes they are directly responsible for.

Engage your people – Who better than the people working within a process to help find
the best solutions for improving that process? By focusing your workforce on not only
managing, but also improving the processes, they will be more engaged in the outcome of
the organization.

Certification

What are the practical steps to becoming IATF 16949

certified?
What is IATF 16949 certification? There are two types of certification: certification of a
company’s Quality Management System against the IATF 16949 requirements, and
certification of individuals to be able to audit against the IATF 16949 requirements. This
section discusses the necessary steps for a company to implement an IATF 16949 Quality
Management System and have it certified.

IATF 16949 certification for your company involves implementing a QMS based on the
IATF 16949 requirements, and then hiring a recognized certification body to audit and
approve your QMS as meeting the requirements of the IATF 16949 standard.

Starting with management support and identifying the customer requirements for the QMS,
you will need to start with defining your quality policy, quality objectives, and quality
manual, which together define the overall scope and implementation of the Quality
Management System. Along with these, you will need to create the mandatory and
additional processes and procedures necessary for your organization to properly create and
deliver your product or service. For a good explanation on this, take a look at the article
List of mandatory documents required by IATF 16949.

This creation of documents can be done internally by your company, or you can get help
through hiring a consultant or purchasing standard documentation. To see samples of
documentation, visit this free IATF 16949 downloads page.

Once all of the processes and procedures are in place, you will need to operate the QMS for
a period of time. By doing this, you will be able to collect the records necessary to go to the
next steps: to audit and review your system and get certified.

Implementation

Mandatory steps to finish implementation and get your

company certified
After finishing all your documentation and implementing it, your organization also needs to
perform these steps to ensure a successful certification:

Internal audit – The internal audit is in place for you to check your QMS processes. The
goal is to ensure that records are in place to confirm compliance of the processes and to
find problems and weaknesses that would otherwise stay hidden.

Management review – A formal review by your management to evaluate the relevant facts
about the management system processes in order to make appropriate decisions and assign
resources.

Corrective actions – Following the internal audit and management review, you need to
correct the root cause of any identified problems and document how they were resolved.

The company certification process is divided into two stages:

Stage One (documentation review) – The auditors from your chosen certification body
will check to ensure your documentation meets the requirements of IATF 16949.

Stage Two (main audit) – Here, the certification body auditors will check whether your
actual activities are compliant with both IATF 16949 and your own documentation by
reviewing documents, records, and company practices.
Training for individuals

What IATF 16949 training and certification is available

if you’re an individual?
Training in the concepts of IATF 16949 is available, and there are a range of course options
for individuals to choose from. Only the first of these can lead to certification for the
individual to be able to audit for a certification body, but the others are very useful for those
who will be using these skills within their own company:

IATF 16949 Lead Auditor Course – This is a four- to five-day training course focused on
understanding the IATF 16949 QMS standard and being able to use it for auditing
management systems against these requirements. The course includes a test at the end to
verify knowledge and competence, and it is only with an accredited course that an
individual can become approved to audit for a certification body.

IATF 16949 Internal Auditor Course – This is commonly a two- or three-day course that
is based on the lead auditor course above, but does not include the test for competence, so
this is most useful for someone beginning to do internal audits within a company.

IATF 16949 Awareness and Implementation Course – Several courses are offered that
provide knowledge of IATF 16949 and how to implement it. These can be one- or two-day
courses, and can even include online e-learning sessions as a method of teaching the
material. These courses are good for those who need an overview on the IATF 16949
standard, or those who will be involved in the implementation within a company, and many
are more economical than investing in the lead auditor course for those involved at this
level.

There are a number of accredited training organizations around the world where you can
gain individual qualifications in IATF 16949.