What is IATF 16949 and What Are Its Benefits for Your Organization
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What is IATF 16949 and What Are Its Benefits for Your Organization

Published in August 21st, 2024

IATF 16949 is a technical specification developed to establish a quality management system in the automotive industry. Its main focus is defect prevention, variation reduction, and waste minimization in the supply chain and the automobile assembly process.

It is one of the most widely used quality standards in the international automotive industry, developed with unprecedented feedback from automakers and groups like the Automotive Industry Action Group (AIAG).

With the emergence of new challenges and constant changes in the automotive industry, the International Automotive Task Force (IATF) and the International Organization for Standardization (ISO) agreed to discontinue their partnership with the ISO/TS 16949 standard, which was the previous version of the standard.

Principles of IATF 16949

IATF 16949 shares the same seven principles as ISO 9001. The task force members decided to reuse these precepts to ensure that those implementing the standard can indeed improve their systems and processes.

7 principles of IATF 16949

These principles serve as a guide on this journey, allowing managers to focus on preventing errors, achieving zero defects, and consistently meeting customer requirements. 

The seven principles of IATF 16949 are:

  1. Customer Focus
  2. Leadership
  3. Engagement of People
  4. Process Approach
  5. Continuous Improvement
  6. Evidence-Based Decision Making
  7. Relationship Management

Difference Between IATF 16949 and ISO 9001

IATF 16949 was implemented in conjunction with ISO 9001:2015, functioning as a complement to the popular certification. This means that the IATF standard is not self-sufficient. Nevertheless, it aims to emphasize defect prevention, provide continuous improvements, and reduce waste and supply chain disparity.

The main difference between the IATF and ISO standards lies in the responsible entities. ISO 9001 is managed by the International Organization for Standardization, while IATF 16949 was developed by the IATF with significant contributions from members of the automotive industry, including automakers and groups like the AIAG.

As mentioned earlier, among them were automakers and groups like the Automotive Industry Action Group.

Below, check out the major differences between IATF 16949:2016 and ISO 9001:

  • Support. ISO 9001 includes guidelines for resources, personnel, infrastructure, and measurement traceability. Additionally, IATF certification references plant, facility, and equipment planning, along with calibration and laboratory requirements.
  • Leadership. ISO certification addresses leadership and commitment. In contrast, IATF 16949 focuses on issues such as corporate responsibility, process owners, and the effectiveness and efficiency of procedures.
  • Context of the Organization. While ISO 9001 discusses the quality management system and its processes, the IATF standard complements it by addressing product safety and process compliance.
  • Planning. The ISO standard deals with actions that can address risks and opportunities. The IATF standard also includes risk analysis, preventive actions, and contingency plans.
  • Performance Evaluation. ISO centers on concepts like monitoring, measurement, analysis, and evaluation. IATF 16949 specifies issues such as the identification of statistical tools and the application of statistical concepts.
  • Operation. ISO 9001 addresses issues like operational planning and control, design and development planning, as well as the type and extent of control over externally provided processes, products, and services. IATF 16949 includes additional requirements related to confidentiality, product design capabilities, supplier monitoring, and second-party audits.
  • Improvement. ISO 9001 addresses nonconformity and corrective action. IATF 16949 emphasizes additional issues like problem-solving, error-proofing, and warranty management systems.

Key Changes from ISO/TS 16949 to IATF 16949

The transition from ISO/TS 16949 to IATF 16949 brought several significant changes aimed at improving quality management systems in the automotive industry. These changes reflect the evolution of industry practices and the need to meet more stringent and specific requirements.

Here are the main changes from the former ISO/TS to the current IATF:

Risk-Based Thinking

To maximize the potential realization of planned activities and minimize the chance of failures during the development of new programs, IATF 16949 included several specific risk-related requirements.

An IATF 16949 requirement is that all companies ensure compliance with all products, processes, parts, and services, including those that are outsourced. This means that the company must have a system to mitigate non-conformity risks throughout the supply chain.

Customer-Specific Requirements

Several common industry practices found in customer-specific requirements were also incorporated into IATF 16949.

The goal of integrating these practices is to facilitate the demand for customer-specific requirements in these areas. It is also crucial to distinguish between customer requirements and customer-specific requirements (TSRs). These two terms are defined in IATF 16949.

First and Second-Party Auditor Competencies

More requirements were added to IATF 16949 concerning first and second-party auditors, including:

  1. Companies must have a documented process to verify the competence of internal auditors.
  2. During internal auditor training, it is necessary to maintain documented records to prove the instructor’s competence concerning additional requirements.
  3. Companies need to prove the competency of second-party auditors, and these auditors must meet specific customer requirements to be qualified as auditors.

Product Safety

The IATF standard has a completely new section called Product Safety. This section requires transitioning companies to document product safety management processes related to product and manufacturing processes.

The focus of this clause is that every product must perform its intended or designated function without causing any harm or unexpected damage. Processes must be implemented to ensure product safety throughout their lifecycle in all companies.

Manufacturing Feasibility

In the new IATF 16949, companies must assess whether they have the capability to meet the time and performance goals stipulated by customers, known as manufacturing feasibility.

ISO/TS 16949 also required the same analysis of manufacturing feasibility, but specific requirements were not imposed.

Warranty Management

A new requirement was added to IATF 16949 based on the growing importance of warranty management, consolidating IATF OEM (Original Equipment Manufacturer) customer-specific requirements.

To validate No Trouble Found (NTF), the warranty management process must address and integrate all customer-specific requirements and warranty analysis procedures.

Additionally, whenever possible, decisions should be approved by the customer.

What is Needed to Implement IATF 16949

The International Automotive Task Force standard is quite rigorous, outlining the requirements for a quality management system within automotive organizations.

To implement this certification in your organization, you should follow these steps:

1. Seek Commitment from Top Management

Leadership is one of the most important principles of IATF 16949, so it is essential that the top management of your organization is engaged and committed to its implementation.

Managers need to provide the necessary resources, set clear objectives, and lead by example. This “top-down” approach ensures that the importance of the standard is demonstrated to all employees.

2. Understand the Requirements

Although we have mentioned the certification requirements in this article, it is still necessary to have a complete understanding of what the standard dictates. Conduct a detailed study of its requirements and identify how they apply to your specific operations.

Consider recruiting internal specialists or even hiring external consultants who are well-versed in the IATF 16949 requirements. This will facilitate the conduct of workshops or training sessions with your team.

Requirements of IATF 16949

3. Conduct a Gap Analysis and Develop an Implementation Plan

A gap analysis will help identify the difference between your current processes and the certification requirements. This is essential to understand what changes are needed to achieve compliance in your processes and prioritize areas for improvement.

Once the evaluation is complete, develop a detailed implementation plan. Remember to delegate responsibilities and set realistic deadlines.

Include in the plan the steps necessary to address gaps, achieve compliance, and prepare your organization for certification. Establish mechanisms to monitor progress and address any challenges that arise.

4. Train Your Employees and Implement Process-Based Thinking

Promote workshops and training sessions to ensure that your employees are qualified and understand their role in meeting the IATF 16949 requirements. Invest in development programs that not only teach specific details of the standard but also the principles of quality management and continuous improvement.

Another factor emphasized in the standard is process-based thinking. This methodology requires understanding and managing interrelated processes as a system, aiming to increase the organization’s efficiency and effectiveness in achieving its objectives. Identify, document, and manage the essential business processes to foster an integrated view of operational performance.

Training and need analysis from SoftExpert Suite

5. Focus on Risk Management

Risk-based thinking should be integrated into all aspects of your quality management system.

This involves identifying potential risks and opportunities, assessing their impact, and taking steps to mitigate risks while capitalizing on opportunities.

Risk assessment tool on SoftExpert Suite

6. Strengthen Supplier Relationships

A unique characteristic of the automotive industry is its complex supply chain. Therefore, managing supplier quality is crucial for the success of any automaker.

Work closely with your suppliers to ensure they understand the IATF 16949 requirements. Additionally, ensure that they can consistently provide materials or components that meet these strict quality criteria.

7. Promote Continuous Improvement

Continuous improvement is one of the core principles of the International Automotive Task Force standard. Therefore, you should create a culture where every employee actively seeks ways to improve processes, products, and services.

Frequently evaluate performance metrics and customer feedback to identify areas for improvement.

Also, prepare to conduct several internal audits. After all, these assessments are an important tool for evaluating the effectiveness of the quality management system. They also help identify areas for improvement.

Finally, it is crucial that your organization prepares for external audits. Ensure that your records are well-organized and that employees understand their role in the audit process.

Conclusion

The implementation of IATF 16949 is an essential step for organizations looking to stand out in the automotive industry, where quality and compliance are fundamental to success. This standard not only strengthens quality management but also promotes a culture of continuous improvement, defect prevention, and waste reduction.

Adopting IATF 16949 can lead to a more robust supply chain, more efficient manufacturing processes, and high-quality final products, resulting in greater customer satisfaction and competitiveness in the market. 

By following the steps for implementation, organizations can ensure they are well-prepared to achieve certification. The emphasis on risk management and strengthening supplier relationships are critical components that complement the principles of IATF 16949 and ensure a holistic approach to quality management. 

Ultimately, IATF 16949 is not just a quality standard but a strategic tool that can transform the way companies operate, driving them toward a future of continuous excellence and innovation in the automotive industry. 

About the author
Gus Oliveira

Gus Oliveira

Gustavo Oliveira é graduado em Administração de Empresas e em Economia pela Universidade de Massachusetts - Dartmouth (EUA). Gustavo possui experiência na indústria de software para excelência empresarial e também na área financeira e de desenvolvimento de negócios, atuando em grandes empresas nos Estados Unidos e no Brasil como analista financeiro, consultor de estratégia de negócios e consultor sênior de projetos.

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