IATF 16949:2016 8.4.2.3     Supplier quality management system development

Supplier quality is a supplier’s ability to deliver goods or services that will satisfy customers’ needs. Supplier quality management is defined as the system in which supplier quality is managed by using a proactive and collaborative approach.It’s in an organization’s best interest to ensure that its service or material suppliers are providing the highest quality products and services while also conforming to pre-established requirements. This is often accomplished through the use of supplier quality management systems (QMS), which allow companies to monitor supply chains and inspect or audit materials and services at regular intervals. Supplier quality management begins early in the product design and supplier selection process. It continues through the entire life cycle of a product and for the duration of the relationship with that particular supplier. Proper supplier quality management tactics include taking inputs (such as employee work, marketplace requirements, operating funds, raw materials, and supplies) and effectively and efficiently converting them to outputs deemed valuable by customers. Supplier performance and quality management go beyond securing a low purchase price or getting the best deal on bulk materials. It also includes: The costs of transactions, communication, problem resolution, and switching suppliers The reliability of supplier delivery, as well as the supplier’s internal policies (e.g., inventory levels, all impact supply-chain performance). The benefits of supplier partnerships includes less variation in vital process inputs when working with fewer suppliers and reduced need for constant monitoring of suppliers and products if the suppliers have proven to be effective at controlling their output. Establishing an effective supplier management process requires mutual trust and relationship building to share expertise and resources and reduce risk. An understanding of both organizations’ unique roles in the process as well as the support from executives or upper management of both companies involved.

Ensuring that your suppliers establish a Quality Management System (QMS) in line with IATF 16949:2016 requires a proactive and collaborative approach. Here are some steps you can take to achieve this:

1. Clearly Communicate Expectations: Clearly communicate your quality expectations to your suppliers. Provide them with the ISO 9001:2015 and or IATF 16949:2016 requirements and any additional customer-specific requirements that they must comply with.
2. Assess Supplier Capabilities: Before engaging with a supplier, conduct an initial assessment of their capabilities and current QMS, if any. Evaluate their readiness to meet the ISO 9001:2015/IATF 16949 requirements.
3. Supplier Onboarding Process: Develop a comprehensive onboarding process that includes discussions about quality expectations, documentation requirements, and compliance with industry standards.
4. Provide Training and Resources: Offer training and resources to help suppliers understand the IATF 16949 requirements and how to implement them effectively. This may include workshops, webinars, or sharing relevant documentation.
5. Conduct Supplier Audits: Perform regular supplier audits to assess their QMS compliance. Use these audits as opportunities to identify areas for improvement and offer support to address any shortcomings.
6. Corrective Action Plans: If any non-conformances are identified during audits or performance monitoring, work with the supplier to develop and implement corrective action plans to rectify the issues.
7. Share Best Practices: Facilitate knowledge sharing and collaboration among suppliers. Encourage the sharing of best practices and successful approaches to meeting the IATF 16949 requirements.
8. Encourage Certification: Encourage suppliers to seek ISO 9001:2015 /IATF 16949 certification from accredited certification bodies. Certification demonstrates a commitment to quality and compliance with industry standards.
9. Performance Monitoring: Continuously monitor supplier performance metrics, including quality-related KPIs. Use these metrics as a basis for evaluating their QMS effectiveness.
10. Supportive Relationship: Foster a supportive and collaborative relationship with suppliers. Offer guidance and assistance as they work to establish and improve their QMS.
11. Supplier Development Programs: Consider implementing supplier development programs to help suppliers enhance their QMS capabilities. These programs can include training, mentoring, and process improvement initiatives.
12. Regular Communication: Maintain open and frequent communication with suppliers. Address any concerns they may have and keep them updated on changes to quality requirements.
13. Recognize and Reward Improvement: Acknowledge and reward suppliers that demonstrate significant improvements in their QMS and overall performance.
14. Management Review Meetings: Conduct periodic management review meetings with suppliers to discuss QMS performance, challenges, and improvement opportunities.
15. Continuous Improvement Approach: Emphasize the importance of continuous improvement and encourage suppliers to strive for excellence in their QMS.

By following these steps and working collaboratively with your suppliers, you can help ensure that they establish a robust Quality Management System that aligns with IATF 16949:2016 requirements. Remember that effective supplier management requires ongoing communication, support, and a commitment to driving quality throughout the supply chain.

8.4.2.3    Supplier quality management system development

The organization ensures that their suppliers of automotive products and services to develop, implement and improve a quality management system certified to ISO 9001, unless otherwise authorized by the customer , with the ultimate objective of becoming certified to Automotive QMS standard. Unless otherwise specified by the customer, the following sequence should be applied to achieve the requirement. a)Compliance to ISO 9001 through second-party audits b)Certification to ISO 9001 through third party Audits unless specified by the customer, suppliers to the organization shall demonstrate conformity to ISO 9001 by maintaining a third party certification issued by a certification body bearing the accreditation mark of a recognized IAF MLA member (International Accreditation Forum Multilateral Recognition Arrangement),and where the accreditation body’s main scope includes management system certification to ISO/IEC17021; c)Certification to ISO 9001 with compliance to other customer-defined QMS requirements (such as Minimum Automotive Quality Management System Requirements for Sub-Tier Suppliers [MAQMSR] or equivalent) through second-party audits; d)Certification to ISO 9001 with compliance to IATF 16949 through second-party audits; e)Certification to IATF 16949 through third-party audits (valid third-party certification of the supplier to IATF 16949 by an IATF-recognized certification body).

Compliance to ISO 9001 through second-party audits

Ensuring suppliers’ compliance with ISO 9001 through second-party audits involves a systematic and thorough assessment of their quality management systems. Second-party audits are conducted by your organization directly or by representatives you appoint to assess your suppliers’ processes, practices, and adherence to ISO 9001 requirements. Here’s a step-by-step guide to conducting effective second-party audits:

1. Establish Audit Criteria: Define the criteria and requirements against which you will assess your suppliers’ compliance with ISO 9001. These criteria should align with the relevant clauses and processes of the ISO 9001 standard.
2. Select Suppliers for Audit: Prioritize suppliers based on factors such as criticality of the supplied products or services, historical performance, and risk assessment. Focus on key suppliers initially and then gradually expand the audit scope to cover more suppliers.
3. Pre-Audit Communication: Inform the suppliers about the upcoming audit, its objectives, scope, and the areas that will be evaluated. Request access to relevant documentation and records that are part of their quality management system.
4. Audit Planning: Develop a detailed audit plan that outlines the audit scope, objectives, criteria, audit team members, and the schedule. Assign roles and responsibilities to the audit team members.
5. Conduct the Audit: Conduct on-site visits or remote audits, depending on the feasibility and the nature of the supplier’s operations. During the audit, gather evidence through interviews, document reviews, and observations to assess compliance with ISO 9001.
6. Audit Techniques: Use various audit techniques, such as interviews, process observations, and document reviews, to assess the effectiveness of the supplier’s quality management system. Verify that the supplier has established and implemented the necessary processes to meet the requirements of ISO 9001.
7. Non-Conformance Identification: Identify any non-conformances or deviations from the ISO 9001 requirements. Clearly document these findings with specific references to the standard’s clauses and provide evidence to support the observations.
8. Audit Reporting: Prepare a comprehensive audit report that includes the audit findings, both positive aspects and non-conformities. Present the report to the supplier’s management and discuss the results.
9. Corrective Actions and Follow-up: Work collaboratively with the supplier to develop and implement corrective actions for addressing non-conformities. Set appropriate timelines for the supplier to complete the corrective actions and conduct follow-up audits to verify their effectiveness.
10. Continuous Improvement: Provide constructive feedback to the suppliers to help them improve their quality management system continually. Encourage an open and collaborative approach to address any ongoing concerns and promote a culture of continuous improvement.

By conducting well-planned and effective second-party audits, you can ensure that your suppliers are in compliance with ISO 9001, which ultimately contributes to a more robust and reliable supply chain.

Suppliers to the organization maintaining a third-party ISO 9001 certification by a recognized IAF MLA

Requiring suppliers to maintain a third-party certification issued by a certification body bearing the accreditation mark of a recognized International Accreditation Forum (IAF) Multilateral Recognition Arrangement (MLA) member is a stringent approach to ensure their conformity to ISO 9001. The IAF MLA is a framework that establishes mutual recognition of certification bodies’ competence and their ability to provide reliable and credible certification services. Here’s how you can enforce this requirement effectively:

1. Communicate the Requirement: Clearly communicate to all suppliers that they must possess a valid ISO 9001 certification issued by a certification body accredited by an IAF MLA member. Include this requirement in your supplier contracts or agreements to make it a binding obligation.
2. Maintain an Approved List of Certification Bodies: Establish and maintain an approved list of certification bodies that are accredited by recognized IAF MLA members. This list should be regularly updated and made available to your suppliers.
3. Verification of Certifications: Regularly verify the validity and authenticity of your suppliers’ ISO 9001 certifications. Check that the certifications are from the approved list of accredited certification bodies and that they are up-to-date.
4. Audit Certificates: Request copies of your suppliers’ ISO 9001 certificates during the supplier selection process and conduct periodic audits to validate the certifications’ authenticity and compliance.
5. Supplier Audits: While the third-party certification provides a level of assurance, it’s still essential to conduct periodic audits of your suppliers’ processes and quality management systems. Supplier audits offer a more in-depth evaluation and help identify any areas of concern.
6. Risks and Non-Conformities: Assess the risks associated with suppliers’ non-compliance with ISO 9001. If any supplier is found to have lapsed certification or significant non-conformities, work with them to address the issues promptly.
7. Continuous Monitoring: Monitor changes in your suppliers’ certification status and promptly address any lapses or changes in the certification body’s accreditation.
8. Encourage Continuous Improvement: Encourage your suppliers to use their ISO 9001 certification as a foundation for continuous improvement. Collaboration and sharing best practices can lead to enhanced quality and efficiency across the supply chain.

By requiring third-party certification from accredited certification bodies, you ensure a higher level of confidence in your suppliers’ conformity to ISO 9001. The IAF MLA member accreditation adds further credibility to the certification process and helps create a strong quality assurance mechanism throughout the supply chain.

Certification to ISO 9001 with compliance to other customer-defined QMS requirements

Requiring suppliers to have ISO 9001 certification with compliance to other customer-defined Quality Management System (QMS) requirements, such as Minimum Automotive Quality Management System Requirements for Sub-Tier Suppliers (MAQMSR) or equivalent, through second-party audits is a robust approach to ensure that suppliers meet specific industry standards and customer expectations. Here’s how you can implement this requirement effectively:

1. Document the Requirements: Clearly document the additional QMS requirements, such as MAQMSR or any other specific standards, that your organization expects suppliers to comply with. Ensure that these requirements are communicated to all relevant suppliers.
2. Selection of Suppliers: When selecting new suppliers, consider their ability to meet the specified QMS requirements. Assess their previous experience, certifications, and readiness to comply with the customer-defined standards.
3. Pre-Audit Communication: Prior to conducting second-party audits, inform the suppliers about the additional QMS requirements that they must comply with. Provide them with relevant documentation and guidance to help them understand the expectations.
4. Audit Planning: Develop a detailed audit plan that outlines the scope, objectives, criteria, audit team members, and schedule for the second-party audits. Ensure that the audits cover both ISO 9001 compliance and the customer-defined QMS requirements.
5. Conduct the Audits: Perform on-site or remote second-party audits to evaluate the suppliers’ QMS and assess their compliance with ISO 9001 and the additional customer-defined requirements. Use a combination of interviews, document reviews, and observations during the audits.
6. Non-Conformance Identification: Identify any non-conformances related to ISO 9001 and the specific customer-defined QMS requirements. Clearly document these findings and provide evidence to support the observations.
7. Audit Reporting: Prepare comprehensive audit reports that include the audit findings, positive aspects, and any non-conformities identified. Present the reports to the suppliers’ management and engage in discussions to address any concerns.
8. Corrective Actions and Follow-up: Collaborate with the suppliers to develop and implement corrective actions for addressing the identified non-conformities. Set appropriate timelines for completing the corrective actions and conduct follow-up audits to verify their effectiveness.
9. Continuous Improvement: Encourage a culture of continuous improvement within your suppliers’ organizations. Provide constructive feedback and support to help them enhance their QMS and meet both ISO 9001 and the customer-defined requirements.
10. Supplier Development: Offer assistance and resources to suppliers who may need help in achieving compliance. Work with them to build their capabilities and ensure that they maintain the required standards.

By conducting second-party audits and verifying compliance with ISO 9001 and additional customer-defined QMS requirements, you can have greater confidence in your suppliers’ ability to meet industry-specific standards and deliver products and services that align with your organization’s expectations.

Certification to ISO 9001 with compliance to IATF 16949 through second-party audits

Requiring suppliers to have certification to ISO 9001 with compliance to IATF 16949 through second-party audits is a robust approach to ensure that your suppliers meet the high-quality standards set by the automotive industry. Here’s how you can effectively implement this requirement:

1. Communicate the Requirement: Clearly communicate to all suppliers that they must possess a valid ISO 9001 certification and demonstrate compliance with IATF 16949 requirements. Include this requirement in your supplier contracts or agreements to make it a binding obligation.
2. Selection of Suppliers: When selecting new suppliers, consider their existing ISO 9001 certification and their readiness to comply with IATF 16949. Evaluate their experience in the automotive industry and their commitment to quality.
3. Pre-Audit Communication: Prior to conducting second-party audits, inform the suppliers about the requirement to comply with both ISO 9001 and IATF 16949. Provide them with relevant documentation and guidance to help them understand the expectations.
4. Audit Planning: Develop a detailed audit plan that outlines the scope, objectives, criteria, audit team members, and schedule for the second-party audits. Ensure that the audits cover both ISO 9001 compliance and the specific requirements of IATF 16949.
5. Conduct the Audits: Perform on-site or remote second-party audits to evaluate the suppliers’ Quality Management System and assess their compliance with both ISO 9001 and IATF 16949 requirements. Use a combination of interviews, document reviews, and observations during the audits.
6. Non-Conformance Identification: Identify any non-conformances related to ISO 9001 and IATF 16949. Clearly document these findings and provide evidence to support the observations.
7. Audit Reporting: Prepare comprehensive audit reports that include the audit findings, positive aspects, and any non-conformities identified. Present the reports to the suppliers’ management and engage in discussions to address any concerns.
8. Corrective Actions and Follow-up: Collaborate with the suppliers to develop and implement corrective actions for addressing the identified non-conformities. Set appropriate timelines for completing the corrective actions and conduct follow-up audits to verify their effectiveness.
9. Continuous Improvement: Encourage a culture of continuous improvement within your suppliers’ organizations. Provide constructive feedback and support to help them enhance their Quality Management System and maintain compliance with ISO 9001 and IATF 16949.
10. Supplier Development: Offer assistance and resources to suppliers who may need help in achieving compliance with IATF 16949. Work with them to build their capabilities and ensure that they maintain the required standards.

By conducting second-party audits and verifying compliance with both ISO 9001 and IATF 16949, you can have greater confidence in your suppliers’ ability to meet the stringent quality requirements of the automotive industry and contribute to a more reliable supply chain.

Certification to IATF 16949 through third-party audits

Requiring suppliers to have certification to IATF 16949 through third-party audits is a stringent approach to ensure that your suppliers meet the high-quality standards set by the automotive industry. Here’s how you can effectively implement this requirement:

1. Document the Requirement: Clearly document the requirement for your suppliers to have a valid third-party certification to IATF 16949 by an IATF-recognized certification body. Include this requirement in your supplier contracts or agreements to make it a binding obligation.
2. Maintain an Approved List of Certification Bodies: Establish and maintain an approved list of certification bodies that are recognized by IATF for conducting audits and providing IATF 16949 certifications. This list should be regularly updated and made available to your suppliers.
3. Selection of Suppliers: When selecting new suppliers, verify their IATF 16949 certification status and ensure that their certification is issued by one of the approved certification bodies on your list.
4. Pre-Audit Communication: Prior to engaging in business with a new supplier, confirm their IATF 16949 certification status and ask for copies of their certification documentation. Verify that the certification body is one of the IATF-recognized bodies.
5. Audit Certificates: Request copies of your suppliers’ IATF 16949 certificates during the supplier selection process. Ensure that the certificates are up-to-date and valid.
6. Continuous Monitoring: Regularly monitor changes in your suppliers’ IATF 16949 certification status. Verify the validity and authenticity of their certification documentation.
7. Risk Assessment: Assess the risks associated with suppliers’ non-compliance with IATF 16949. If any supplier’s certification lapses or significant non-conformities are identified, work with them to address the issues promptly.
8. Continuous Improvement: Encourage your suppliers to use their IATF 16949 certification as a foundation for continuous improvement. Collaborate and share best practices to enhance quality and efficiency throughout the supply chain.
9. Audit Suppliers: While third-party certification provides a level of assurance, it’s essential to conduct periodic supplier audits to ensure their ongoing compliance with IATF 16949 requirements.
10. Supplier Development: Offer assistance and resources to suppliers who may need help in maintaining their IATF 16949 certification. Work with them to build their capabilities and ensure they continue to meet the required standards.

By requiring valid third-party certification of your suppliers to IATF 16949 by an IATF-recognized certification body, you can have greater confidence in their ability to meet the stringent quality requirements of the automotive industry, contributing to a more reliable supply chain.