Valeo TOP MANAGEMENT COMMUNICATION

05/07/2017 CONFIDENTIAL
 AUTOMOTIVE MANAGEMENT SYSTEM
WHAT YOU NEED TO KNOW ABOUT IATF
16949:2016

05/07/2017 CONFIDENTIAL
AGENDA

▶ International Automotive Task Force structure

▶ Overview IATF 16949

▶ IATF 16949 core sections- What is new?

▶ Expectations by clause - Summary

▶ Remote location

▶ Succeed IATF 16949

▶ Timeline for transition

▶ Group Supplier Quality Director message

▶ Quiz
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INTERNATIONAL AUTOMOTIVE TASK FORCE STRUCTURE (IATF)

LEVEL 1 : IATF is a group of vehicle manufacturers and industry trade associations.

Common goal is to implement a single, global automotive quality system standard and registration process.

ORIGINAL EQUIPMENT MANUFACTURERS INDUSTRY TRADE ASSOCIATIONS

LEVEL 2 : IATF Global Oversight offices are the operational structure of IATF.
It is organised by region (ex: third party auditor qualification, monitoring of certification bodies,
registration of TIER N supplier).

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 OVERVIEW OF IATF 16949

● IATF has published the new standard for automotive quality management system called “IATF 16949”
in October 2016, replacing “ISO/TS 16949:2009” standard.
● IATF 16949 is no more an ISO standard but IATF document property
● IATF 16949 follow ISO 9001:2015 norm structure (generic norm applicable to any business activities)
● IATF 16949 standard does not contain any text from ISO 9001:2015
● IATF 16949:2016 only contains Automotive additional requirements.

Valeo suppliers sites shall get both

standards and satisfy to both of
them.

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 IATF 16949 CORE SECTIONS - WHAT IS NEW?
Continuous Improvement with PDCA - ISO 9001 / 2015
IATF 16949 follow ISO 9001:2015 document structure with the following clauses organization :
(Clause 1 to 3 are generic and introductory clauses information’s, not shown in this presentation)

Clause 4 CONTEXT OF THE ORGANISATION

Clause 5 LEADERSHIP
PLAN:
Target : set objectives and build processes necessary to deliver results.
Clause 6 PLANNING

PDCA approach Clause 7 SUPPORT

DO:
Clause 8 OPERATION Target : Implement what was planned.

CHECK:
Clause 9 PERFORMANCE EVALUATION Target : Monitor and measure processes and results against the objectives,
including effectiveness, efficiency and risk.
ACT:
Clause 10 IMPROVEMENT Target : Take actions to improve results.

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 IATF NEW REQUIREMENTS

Risk Based Thinking

IATF complemented ISO 9001:2015 with most recent Product Safety

requirements from Automotive market and supply
chain stakeholders. Manufacturing Feasibility
What are targets and expectations ?
Development of Product with
Embedded Software

Warranty Management

Integration of Customer
Specific requirements

First & Second Party Auditors

competencies

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RISK BASED THINKING

Based on ISO 9001:2015, TARGET RISK BASED THINKING APPROACH

IATF 16949 standard
focus on the adaptability
and anticipation of risks in Market safer and more stable ● Identifying and mitigating risks (ex : legal, technological, competitive,
market, cultural as FMEA)
Automotive actors
processes.

● Multidisciplinary approach
Mitigate risks during ● Full product lifecycle checked from development phase until
product and process development product / process approval

Valeo suppliers sites need ● Assessing the manufacturing feasibility

to prevent all risks of Manage the product/process ● Evaluate design changes
change and adapt all changes ● Control and react to the changes
● Adjust the internal audit according to changes frequency
processes accordingly

● Conducting Contingency planning reviews with testing

Complete supply chain ● Ensuring Customer targets and Quality objectives
prevented from risks ● Implementing corporate responsibility initiatives (anti-bribery policy,
an employee code of conduct, and an ethics escalation policy).

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 PRODUCT SAFETY
Product Safety is a new requirement in IATF 16949. The purpose is to reinforce product safety and reliability throughout its
lifetime,starting from the development phase, through the end of its use by the customer.
In all instances, the product needs to keep its integrity, reliability and performance and what the purpose of its design.

TARGET PRODUCT SAFETY APPROACH WITH DOCUMENTED PROCESS

● Control plan approvals

Valeo suppliers sites shall ● D/PFMEA
Product Design and ● Training organization / customer & related
have processes to ensure Product should perform manufacturing process processes regarding statutory and regulatory
product safety throughout for its design intent without product safety requirements
robustness
the entire product life cycle. causing hazard or damages ● Supply chain robustness regarding product
safety requirements

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 MANUFACTURING FEASIBILITY
On the same way than organization shall integrate risk management in their process. Manufacturing capabilities are keys to satisfy
clients requirements and targets. This approach will have to be conducted regarding both, expected and unexpected sources of change

TARGET MANUFACTURING FEASIBILITY APPROACH

Valeo suppliers sites shall

assess their capacity to ● Multidisciplinary approach
Capabilities to demonstrate ● Manufacturing process and process design analysis for :
satisfy customer target in that performance and timing ✓ New product technology
both delivery timing and targets specified by customer ✓ New manufacturing process
product performances. are satisfied ● Product, process modification

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 DEVELOPMENT OF PARTS WITH EMBEDDED SOFTWARE
More and more devices and equipment are connected to the numerical world, so IATF 16949 introduced detailed requirements for products
with embedded software. Suppliers need to ensure the robustness of their equipment in term of reliability, performance all along the supply
chain and lifetime of products.

TARGET DEVELOPMENT EMBEDDED SOFTWARE

Valeo suppliers sites shall also

● Product Validation for embedded software
implement and maintain a Product / manufacturing products
system for software quality Process & supply Chain ● Sourcing from origin management in front of Cr
assurance of these products. robustness ● Risk management of sourcing & material change

VDA QMC has a document available: Automotive SPICE, which may be helpful. Software Process Improvement and
Capability determination

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 WARRANTY MANAGEMENT
IATF 16949 standard integrate the necessity to comply with the increase of warranty management importance. The warranty management
process should address and integrate all applicable customer-specific requirement

TARGET WARRANTY MANAGEMENT PROCESS

● Address and integrate applicable Customer special

Valeo suppliers sites shall requirements
Capability to provide warranty
implement process of for the product when ● Warranty party analysis procedure to address NTF (no Trouble
warranty with anticipating requested found)
approach before complains ● Decision making process to be shared and agreed with the
customer when applicable
arrive.

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NEW REQUIREMENTS: OTHER IATF SPECIFICITIES

IATF 16949 clarifies also Customer Req. (ex: Technical document as product specifications )
CR & CSR and Customer Specific Requirement supplemental requirements linked to Automotive QMS (Ex
of CSR : core tools as FMEA, APQP, SPC, MSA).

■Documented process compiling auditor competency

■Organization, through documentation, shall be able to demonstrate the competencies of their
1st & 2nd Party (New)
trainers.
Auditor
■Competencies of 2nd Party Auditor shall be also demonstrated (New)
■2nd Party Auditors shall meet CSR for auditor qualification. (New)
■Software assessment methodologies when applicable (SPICE or equivalent). (New)
■2nd Party party audit for services supplier (ex :transport). (New)

■Valeo suppliers shall identify as input of design process, alternative design solutions for
Design alternative solutions
product and manufacturing. (New)

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NEW REQUIREMENTS: OTHER IATF SPECIFICITIES

■Valeo suppliers shall identify, document, and maintain a list of process controls that includes both
Temporary manufacturing process the primary process control (example: automated nut driver) and the approved back-up or
alternate methods (example: manual torque wrench). (New)

■IATF make difference between reuse and rework of product and add customer agreement for
Reuse & rework change/validation of reuse and rework. (New)
■FMEAs should identify and address risks related to each possible rework of the characteristics
stated in the control plan. (New)

■IATF introduces External providers instead of supplier. Valeo suppliers shall demonstrate supply
chain management enlarged to supplier of services (ex : transport). Same requirements as
External providers monitoring
component supplier in terms of monitoring (quality management system, 2nd Party audit) .(New)

■TPM should be fully integrated within the manufacturing processes and any necessary support
Total productive maintenance processes.(New)

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 EXPECTATIONS BY CLAUSE - Summary

All the issues that may impact Valeo suppliers objectives needs to be addressed and
Clause 4 CONTEXT OF THE ORGANISATION
assessed :
This is prerequisite to plan quality management system
There are many models which can be used to identify and analyze internal and
external impacts.
•7S Model = internal issues (internal culture, products, services…)
•PESTEL Model = external issues (regulations, social…)
•6 Markets Model = interested parties (authorities, shareholders…)

Clause 5 LEADERSHIP
Top-level commitment and empowerment of senior management has been raised up
by the new standard, which means that the responsibility will not lie on one person
like the quality manager.
The quality policy shall include a commitment to improve all relevant aspects of the
QMS.

Process pilots shall understand their role and are competent.

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EXPECTATIONS BY CLAUSE - Summary

In clause 6.1 the emphasis is made the actions planning to address risks identified.
In a ‘note’, it is suggested that the options to address these risks may include
Clause 6 PLANNING avoidance of risk, taking the risk in order to pursue an opportunity, eliminating the
source of risk, changing the likelihood or consequences of risk or acceptance of risk
by informed decision.
Reference to preventive actions is now removed from the standard.

Management of all resources is covered under the support clause. Outsourced

products and services, monitoring and measuring equipment and people and
organizational knowledge as a resource have been added.

Valeo suppliers shall provide the necessary manpower for the effective operation of
Clause 7 SUPPORT
the QMS and its processes.

When addressing changing needs and trends it shall consider current knowledge and
how to acquire or access additional necessary knowledge.

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EXPECTATIONS BY CLAUSE - Summary

Implement planned activities at appropriate stages to verify that product and

services requirements have been met.
Clause 8 OPERATION
Delivery shall not proceed until the planned activities to verify conformity, are
met unless it is approved by a relevant authority and, where applicable, by the
customer.

Documented information shall provide traceability to the people authorizing

release of products and services for delivery to the customer

Performance evaluation process will start with definition of targets and KPI (Key
Process Indicators).

It will be the key step that will allow your organization to evaluate its performance
Clause 9 PERFORMANCE EVALUATION
in relation with action plans defined regarding targets.

Part of KPIs will have to reflect the customer satisfaction and how your
organization plans to fulfill it.

A KPI target not reached is considered as a non conformity and shall be followed by
an action plan to mitigate the gap / target.
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 EXPECTATIONS BY CLAUSE - Summary

ACT is last step of PDCA continuous improvement process.

During this step, the main targets will be problem solving of quality defects or customer
issues.
Clause 10 IMPROVEMENT
It’s also during the «ACT» that the lesson learn process need to be addressed. It will be a
source for defining new actions plans in a fully continuous improvement approach of
standard (New or Existing).

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 REMOTE LOCATION / IATF 16949 SCOPE
All IATF 16949 requirements are applicable to a manufacturing site. If any activity is managed outside the audited Valeo suppliers
manufacturing site or managed by another area of the company, Valeo supplier manufacturing site shall describe those activity called
remote function (non-production activity that supports a production site).
Example of scenario : IATF 16949 AUDIT SCOPE FOR A MANUFACTURING SITE “A”

Headquarter of sites “A”, “B” Supplier manufacturing site “A” Supplier manufacturing site “C“ supporting site “A”

● Shared services (ex : transport,

● P2 project (Support to P1) Internal functions sorting company selection,
● SQA (auditor qualification, PQA, ● Manufacturing/Shipping laboratory services, consulting…)
SRM...) ● Site HR
● Sales (RFI, RFQ, CAA, CDP...) ● Site quality
● Site purchasing (panel)
Supplier manufacturing site “D” supporting site “A” ● P0 project Supplier manufacturing site “B” supporting site “A”
External functions in blue are
called remote functions.
IATF audit is requested in site ● project development (from project
● Purchasing commodities (ex : “B”,”C”,”D” to validate “IATF certificate kick off to “tool go”)
electronics, steel, lighting component 16949” for site “A” ● Internal laboratory (product
supplier selection...) validation)
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 REMOTE LOCATION / IATF 16949 SCOPE

There are 3 options to fulfill remote function requirements for site “A” :

● Supplier manufacturing sites supporting functions for site A are IATF certified and their IATF audit
reports include description of activity with site A and address of manufacturing site A.

● Supplier office (ex : headquarter) supporting functions for site A is ISO 9001:2015 certified and its
report include description of activity with site A and address of manufacturing site A

● Supplier office (ex : headquarter) is part of audit scope of site A and IATF audit team includes the
supplier office in its audit plan and physical visit is organized (no conf call allowed).

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REMOTE LOCATION / IATF 16949 SCOPE

Any missing remote function discovered by IATF auditor will result in major non conformity and additional audit in concerned
remote location.

IATF prerequisite about remote location :

● Transition Audit has to be conducted for any supporting functions first, and only then to conduct the Transition Audit at the
production site.
● Based on audit team appreciation, it can be acceptable to provide a gap analysis of the supporting function according to the new
requirements of IATF 16949 prior to the audit at the production site. If agreed with auditor team the gap analysis and action
plans shall be available for the Transition Audit at the related Valeo supplier production site. Otherwise, an initial certification
audit must be conducted at this site.

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 WHY VALEO SUPPLIERS SHALL SUCCEED IATF TRANSITION?

IATF 16949 certification transition completion means for Valeo suppliers :

● Being recognized by regulatory authorities

● Being approved supplier to design, manufacture safe and reliable products
● Meeting or exceeding customer requirements
● Improving processes and documentation system

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 SUCCEED IATF TRANSITION : STEPS AND TARGETS PROPOSAL
■Get trained with the new IATF 16949. While new requirements have been added and few
Step 1 GET TRAIN TO IATF 16949
have been modified, some requirements indeed remain the same.

Step 2 PERFORM THE GAP ANALYSIS ■Perform organizational gap assessment which need to be addressed to meet the new
requirements.

■Develop an implementation plan with key actions, milestones, deadlines and

Step 3 IMPLEMENT THE ACTION PLAN
responsibilities (ex : training and awareness including internal, 2nd auditor training…)

■Conduct Internal audit as per IATF 16949:2016 requirements and close the gaps if any.
Step 4 IATF INTERNAL AUDIT

■Conduct management reviews as per IATF 16949 requirements.

Step 5 MANAGEMENT REVIEW
■ Initiate actions decided in the Management review

■Complete third party transition audit (audit, NC management) including remote location
Step 6 TRANSITION AUDIT IATF
audits

■IATF 16949 certificate is issued after successful completion of transition audit (Audit, NC
Step 7 RELEASE OF NEW IATF CERTIFICATE
Management, Certification decision). A new audit cycle starts with transition audit.

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 SUCCEED IATF TRANSITION : STEPS AND EFFORT FOR A SITE
From 10 to 20 weeks to fulfill step 1 to 6 for a site. Timing can increase depending on complexity of activity (mono/multi product
site, mono/multi PG interactions). Success is widely depending on involvement of management and IATF expectations understanding.

Step 1 GET TRAIN TO IATF 16949 ■From 2 to 3 days for IATF introduction program

■From 1 to 3 weeks to fill GAP tool and document discrepancies by IATF project
Step 2 PERFORM THE GAP ANALYSIS
leader

■From 1 to 2 weeks to define with multi pluridisciplinary approach to define action/pilot.

Step 3 IMPLEMENT THE ACTION PLAN ■From 3 to 8 weeks to update existing quality system and evidences

Step 4 IATF INTERNAL AUDIT ■From 1 to 3 weeks to audit manufacturing site and solve open points

Step 5 MANAGEMENT REVIEW ■From 1 to 2 weeks to prepare and organise management review compliant to IATF 16949

■From 1 to 2 weeks to pass IATF audit

Step 6 TRANSITION AUDIT IATF

■Till 120 days from end of step 6 to get new certificate released after closing of gaps and
Step 7 RELEASE OF NEW IATF CERTIFICATE
green light from IATF.

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 TIMELINE FOR TRANSITION - ANTICIPATION IS KEY

Jan 1st 2017 May 14th 2018 Sep 14th 2018

1st Transition audit Critical period : 120 days before end of No more valid ISO/TS certificates
possible according ISO TS 16949:2009 Certificates IATF 16949:2016 transition completed
IATF 16949

Are you prepared ? From 10 to 20 weeks workload to be organized before MAY 14th 2018

All Valeo suppliers sites with certificate expiring 4 months before Sept 14th 2018, need to plan their
audit before May 14th to avoid risk of expired certificate with initial audit cycle. Only then will there
be enough time to close any non-conformities and finalize the certification process in time.

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 KEY MESSAGES FROM Didier DIMUR

▶ IATF 16949 a prerequisite to remain in Valeo supplier panel

▶ IATF 16949 aim to be automotive baseline expressed by our customers
▶ IATF 16949 is no more a quality specialist matter but a manager's matter
▶ Success in IATF transition is required and not optional

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 USEFUL LINKS

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 QUIZ

One or more answers are possible :

IATF 16949 is a standard dedicated to:

❑Tiers 1 supplier
❑Tiers 2 supplier
✓Tiers 1 and Tier- N supplier
❑Original equipment manufacturer

Inside Deming cycle, step « A» is :

❑Sorting the data
✓Taking actions for Continuous improvement of standard
❑Assign actions

Leadership management means :

❑Nominated one quality leader with authorities to manage quality management system
✓Taking accountability to manage efficiently quality management system
✓Leading by example
✓Promoting continuous improvement

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 QUIZ

IATF means :

✓ Industrial Automotive Task Force

❑ Industrial Automotive Task Federation
❑ Industrial Automotive Team Force

ISO 9001:2015 is a standard dedicated to :

❑ Automotive industry
❑ Automotive and aeronautic industry
✓ Any business activity

Which of following requirement is new in IATF 16949:

❑ Management review
❑ Business plan
✓ Embedded software

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 QUIZ

Core tools are :

✓ Customer Specific Requirement

❑ Software
❑ Member of IATF

Which of following requirement is not a new in IATF 16949:

❑ Interested parties
✓ Continuous improvement
❑ Product Safety
❑ Warranty process requirement

What is meaning of CSR:

❑Customer Special Requirement
❑Continuous Specific Requirement
❑Customer Specific recommendation
✓Customer Specific Requirement

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 QUIZ

IATF 16949 is :

❑ an ISO norm
✓ IATF property document
❑ Tier 1 property document

IATF 16949 certificate is applicable for :

✓ An automotive manufacturing site

❑ A sale office
❑ Car dealer

A remote location is :

꣘ An autonomous production unit

✓ An activity that support a manufacturing site

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 QUIZ

Classify each clause with associated cycle step of PDCA :

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