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QS 9000 Training Materials Gregory A. Jenkins

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1 QS 9000 Training Materials Gregory A. Jenkins
Total Quality Management ( OISM 470 W ) Smeal College of Business Administration Pennsylvania State University Introduction of speaker and background to gage audience: Major: Operations, Information Systems Management and International Business. Career plans in business field. Briefly discuss importance of quality and customer satisfaction. Penn State Smeal information (for participants interested): Undergraduate Majors: OISM, MSIS, Accounting, Finance, Economics, Marketing, Actuarial Science, Business Logistics, Management and International Business. Graduate Level: MBA with variety of concentrations (QMM).

2 Ice Breaker Form small groups Introduction Field of study Career path
What you expect to get from training Select Speaker To effectively summarize information presented about every group member Secretary To record individual responses Ice Breaker (for small group): Introduction Names Field of study Career path What they expect to get from training presentation Inform group: Secretary will be selected before introduction in order to record notes However, speaker will be randomly selected after group introduction in order to ensure that everyone is paying close attention. If needed, the selected speaker will have 1 minute to review notes from the secretary in order to prepare effective presentation. The speaker representative of an organization serving customers – in this case, audience members. After each presentation, poll the audience and group members on things that could be improved and what was done well. After the ice breaker, prepare to ask questions concerning quality on the next slide.

3 Quality Perspective What is your definition / perception of quality?
According to the oral ice breaker presentations and note taking how would you define its quality. Were your expectations met? Why? Why not? What are some of your suggestions for improvement (documentation and presentation)? This should set the tone to involve audience members. When they realize that they are part of the quality process and their ideas matter, this should help in presenting materials and obtaining feedback without hesitation. This process is an example of documenting quality processes and communicating them to employees, internal and external customers as is the basis of QS 9000.

4 Quotes “I think companies will be more selective on who they are placing their business with. If your company is performing better quality-wise and reject-wise, then I think it is going to be the company that is considered for a contract.” Terry Martin, Quality Manager, Plastic Source Inc. (El Paso, TX) "The supplier shall have systems in place to ensure management of appropriate activities during concept development through production.” QS 9000, paragraph Organizational Interfaces Abstract of Real World Examples (Articles) Even before the September 11 terrorist attacks, the economy was uncertain. That uncertainty, combined with the fallout from the tragic events of September 11,impacted the bottom line of Quality magazine's Second Annual Quality Spending Survey. But a month later, as the initial shock of the events began to fade, a follow-up survey showed that the mood was more wait and see than doom and gloom. It is in this context that Quality magazine forecasts the quality market for The projections show that spending next year for tests, measurement and inspection equipment, software and services will total $3.4 billion at the 45,000 plants served by Quality magazine. This is a drop of 15% compared to last year's $4 billion forecast for 2001 spending. Many of those surveyed said that quality efforts would have to increase in the new marketplace. Terry Martin, for instance, who is the quality manager at Plastic Source Inc. (El Paso, TX), said that in the post-terrorist attack economy, producing a quality product will play an even bigger role in who gets business and who stays in business. The injection molding company is QS 9000 certified and is audited every six months, but is always looking for ways to improve its quality. "I think companies will be more selective on who they are placing their business with," Martin says. "If your company is performing better quality-wise and reject-wise, then I think it is going to be the company that is considered for a contract." “Quality spending outlook” Quality; Troy; Dec 2001; Larry Adams; “Future of APQP and PPAP in doubt” Quality; Troy; Jan 2002; Roderick A Munro;

5 QS 9000 Training Outline Introduction Purpose ISO 9000 Background
Requirements Real World Examples Interactive Exercise Conclusion Suggested Readings References Background: General introduction of what will be covered.

6 QS 9000 Purpose Improving relationships to improve quality
“The goal of developing your suppliers is based on the need to provide high quality to the customer.” Enhance quality systems for suppliers Eliminate redundant requirements Reduce costs Source: Foster, S. Thomas. Managing Quality: An Integrative Approach. Prentice-Hall, Inc (pp ; ).

7 QS 9000 Purpose (continued)
Fundamentally different from ISO 9000. Designed to help suppliers to automakers provide evidence of standardized processes for dealing with customers. Major automobile manufacturers setup teams with suppliers to help in development. Source: Foster, S. Thomas. Managing Quality: An Integrative Approach. Prentice-Hall, Inc (pp ; ).

8 What is ISO 9000? Advantages Organization for International Standards
European standards for quality Standards are broad and vague to adapt to different cultures Does NOT provide framework for organizational improvement and change Companies document quality systems in manuals to facilitate trade through supplier conformance Success has created various other standards such as QS 9000 Source: Foster, S. Thomas. Managing Quality: An Integrative Approach. Prentice-Hall, Inc (pp ).

9 What is ISO 9000? (continued)
Disadvantages Not all countries accept ISO registrars Mainly for exporting firms Barrier to trade Time consuming Costly Difficult for small firms to afford Discourages free thinking and employee empowerment Source: Foster, S. Thomas. Managing Quality: An Integrative Approach. Prentice-Hall, Inc (pp ).

10 Background Information
What is the meaning of QS-9000? Quality System Requirements Common supplier quality standard (Big Three): Chrysler Corporation Ford Motor Company General Motors Corporation Applies to suppliers of: production materials production and service parts heat treating painting and plating other finishing services Does NOT apply to all suppliers of Big Three Questions and Answers What is QS-9000? QS-9000 is the shorthand name for "Quality System Requirements QS-9000." It is the common supplier quality standard for Chrysler Corporation, Ford Motor Company, and General Motors Corporation. QS-9000 is based on the 1994 edition of ISO 9001, but it contains additional requirements that are particular to the automotive industry. These additions are considered automotive "interpretations" by the ISO community of accreditation bodies and registrars. QS-9000 applies to suppliers of production materials, production and service parts, heat treating, painting and plating and other finishing services. It does not, therefore, apply to all suppliers of the Big Three. QS-9000 applies to external and internal suppliers of the products and services explained above. An external supplier is a company not owned by the Big Three. This includes most of what is thought of when considering the "supply base." However, many divisions of Big Three companies supply their competitors as well as their own plants. For example, it is not unusual for a Ford plant to sell component products to Ford, Chrysler, and General Motors divisions. In all such cases, these Big Three plants are external suppliers to the other companies and QS-9000 applies to them. In addition, within the Big Three companies, QS-9000 is being required of many of the internal supplying divisions. The timing requirements for internal divisions are the same as for external suppliers. Q. Does QS-9000 apply to external suppliers only, or do the Big Three also have to comply with it? A. QS-9000 applies to external and internal suppliers of the products and services explained above. An external supplier is a company not owned by the Big Three. This includes most of what is thought of when considering the "supply base." However, many divisions of Big Three companies supply their competitors as well as their own plants. For example, it is not unusual for a Ford plant to sell component products to Ford, Chrysler, and General Motors divisions. In all such cases, these Big Three plants are external suppliers to the other companies and QS-9000 applies to them. Q. Is QS-9000 worldwide? A. Yes. QS-9000 is truly a worldwide, common supplier quality requirement for DaimlerChrysler, Ford and General Motors. It has been released throughout North America, in several countries of South America, Europe, Australia, and Asia. Continued on next slide….

11 Background Information (continued)
TE-9000 Tooling and Equipment Supplement Internal shorthand as supplement to QS 9000 Worldwide Commitment Released throughout North America, several countries of South America, Europe, Australia and Asia Compliance audits by qualified ISO 9001 registrars: Internal Customer (second-party) Third-party Questions and Answers (http://qs9000.asq.org/faq.html#big_3) Q. How does a company comply with QS-9000? A. For suppliers to Ford, compliance may be demonstrated by internal audits, customer (or second-party) audits, and third-party audits by qualified ISO 9001 registrars. For suppliers to DaimlerChrysler and General Motors, compliance must be demonstrated through third-party audits by qualified ISO 9001 registrars. Q. What is a qualified registrar? A: Qualified registrars are ISO 9001 registrars recognized by accreditation bodies (such as RAB, RvA, UKAS, etc.) who have agreed to abide by the Code of Practice for QS-9000 registrars and have passed a qualification process administered by a recognized accreditation body. A list of qualified registrars can be found on the ASQ QS-9000 web. Not all registrars for the ISO 9000 series are qualified to conduct third party audits to QS Any company seeking certification to QS-9000 must deal with a QS-9000 qualified registrar for the certificate in order to attain official recognition by its customer. Q. Have any other organizations adopted QS-9000? A. Several heavy truck companies have adopted QS-9000 and are signatories to the document. These companies include Navistar International Transportation Corporation and PACCAR, Inc. Other companies in the automotive industry are also adopting QS-9000 as their supplier quality requirement, and non-automotive industries are watching the implementation of QS They are considering using it as a model to develop ISO 9001-based requirements for their industries. Q. Where can one obtain copies of QS-9000? A. Copies of QS-9000 and related manuals can be obtained from AIAG by calling (248) In Europe, these documents are available from Ed Carson at Carwin Q. Who is responsible for developing and maintaining QS-9000? A. The DaimlerChrysler/Ford/General Motors Supplier Quality Requirements Task Force is the responsible body that oversees QS It is made up of representatives from each of the Big Three companies, along with several members who are liaisons to relevant organizations. Because QS-9000 was a new approach to the application of the ISO 9001 standard, the Big Three, together with several accreditation bodies and registrars, initiated the International Automotive Sector Group (IASG) early in This group issues official interpretations of the process connected with third-party registration to QS-9000, as well as revisions, clarifications, and expansions to QS These "Sanctioned Interpretations" are available from ASQ; call or (414) and ask for Item T97. Q. What about a document called "TE-9000"? A. TE-9000 was an internal shorthand for a supplement to QS Properly called the "Tooling and Equipment Supplement", this document has been developed and is being implemented. It applies QS-9000 to suppliers of tooling, equipment, and related products. This document replaced the DaimlerChrysler TESQA (Tooling and Equipment Supplier Quality Assurance) manual after it was released.

12 QS 9000 Requirements Management responsibility Training
“defining and documenting its policies for quality along with its objectives and its level of commitment. Clear lines of authority are drawn, assigning responsibility for managing, performing and verifying all work affecting quality.” Training “should be viewed as a strategic imperative for all of a supplier’s personnel. A supplier firm must have documented procedures for assessing training needs and for training all personnel who might impact a company’s quality. Records of past training must also be kept.” Requirements source: Foster, S. Thomas. Managing Quality: An Integrative Approach. Prentice-Hall, Inc (pp ; ). Common processes: Documentation, testing, implementation

13 QS 9000 Requirements (continued)
Management responsibility Quality system Contract review Design control Document and data control Purchasing Control of customer-supplied product Product identification and traceability Process control Inspection and testing Control of inspection, measuring and test equipment Inspection and test status Control of nonconforming product Corrective and preventive action Handling, storage, packaging, preservation and delivery Control of quality records Internal quality audits Training Servicing Statistical techniques Management responsibility: “defining and documenting its policies for quality along with its objectives and its level of commitment. Clear lines of authority are drawn, assigning responsibility for managing, performing and verifying all work affecting quality.” Talk more about management’s importance to ensuring effective processes and excellence in quality. Documentation and implementation are key terms used for processes. Requirement table source: Foster, S. Thomas. Managing Quality: An Integrative Approach. Prentice-Hall, Inc (pp ; ).

14 QS 9000 Requirements (continued)
Management Responsibility Quality policy Organization Resources Management representative Organizational interface Business plan Analysis and use of company-level data Customer satisfaction Design Control Requirements General Information Design and development planning Required skills Organizational, technical interfaces Design input Design output Design review Design verification Design validation Design changes Quality System Requirements General Quality system procedures Quality planning Special characteristics Use of cross-functional teams Feasibility reviews The control plan Requirement listings’ definitions and purposes are dependent upon the expertise of the presenter. Requirement tables source: Foster, S. Thomas. Managing Quality: An Integrative Approach. Prentice-Hall, Inc (pp ; ).

15 Name some common requirement processes
Common processes Documentation Testing Implementation Processes used to enhance supplier quality systems, eliminate redundant requirements and reduce costs. Take additional answers into consideration according to information presented on each topic listed. Be open to adding additional suggestions from audience on a black or white board to encourage participation.

16 What are some supply chain priorities?
Supply Chain Priorities by auto assemblers, direct suppliers and indirect suppliers order of importance. Consistency Reliability Relationship Technological capability Flexibility Price Service Finances The goal of developing your suppliers is based no the need to provide high quality to the customer…. The supplier’s processes must be consistent with those of the customer. Once again, this is a single standard developed by the Big Three in the 1980s to integrate certification programs for suppliers.

17 Real World Example I “Supplier Services Inc. (SSI)’s stated goal is to work with small and medium-sized manufacturers to achieve compliance with ISO 9000, QS 9000 and other industry-specific quality system requirements. Their message to those manufacturers or their suppliers is that while it is extremely difficult to manage quality and manufacturing standards when everyone expects fewer people to do the job, SSI is available to fill that organizational void with their own brand of expertise.” Article ….If the customers already cited show the diversity of clients that the firm deals with, its variety of services shows that it can address any number of concerns that a customer might have. Included in those services are: * Systems design and development which includes gap analysis, executive overview, employee orientation/ training, documentation, ISO registrar selection, quality systems audits and DoD conversion to ISO-9000. * Supplier network support including purchasing support, continuous improvement, corrective action support and follow up, PPAP assistance and training. * On-site representation including supplier/customer liaison, quality and manufacturing engineering support, partnering resolution, product development/manufacturability guidance, emergency problem solving and product verification support. * Engineering support including operations assessment, inspection procedures, gauging methods, cost of quality review, data analysis, quality planning and measuring and predicting results. * Training including blueprint reading principles, geometric dimensioning and tolerancing, inspection and gauging, internal auditing, process FMEA development, gauge repeatability and reproducibility and statistical process control. Glasby explains that "SSI provides all these services in a realistic manner. We don't come in with a `blue-suit' approach and try to be something for everyone. Rather, ours is an up-from-the-ranks approach where we know how machines operate and how to set them up. For anything we don't know, we can find someone who does have the answer." He adds that despite the fact SSI has only been in operation for a couple of years, “It has already provided us with a tremendous amount of credibility. The principals and customers who have already taken advantage of our services have benefited greatly. Now it remains for us to get the word out to others so they can learn what we can do for them.” Future of APQP and PPAP in doubt Quality; Troy; Jan 2002; Roderick A Munro;

18 Real World Example II “Few businesses survive their first 6 months, much less earn their QS 9000 and ISO 9002 certifications in the first half of the year. Nu Tech Plastics Engineering, a Tier One and Two automotive supplier, not only did both, but it also fulfilled its founder's goal of creating a business niche in taking on so-called problem jobs. Barely three years old, the company has built a $20 million a year business on solving other people's problems. Elektra all-electric molding machines and the company's process tuning shaved 12 seconds from the tool's cycle time.” Abstract of Real World Examples (Articles) Few businesses survive their first six months, much less earn their QS 9000 and ISO 9002 certifications in the first half of the year. Nu Tech Plastics Engineering (Grand Blanc, MI), a Tier One and Two automotive supplier, not only did both, but it also fulfilled its founder's goal of creating a business niche in taking on so-called problem jobs. Barely three years old, the company has built a $20 million a year business on solving other people's problems. Founded as a research and development company first with production capability, Nu Tech uses production to finance its other business activity. About 40% of its resources go to developing new applications for composite material and improving product through material and tooling innovations. One of the company's original concepts was a composite alternator pulley to replace a steel design. Much of the solution to the problem work the company solicits and the source of its success lie in the genius of its founder John Mailey He brings 40 years of molding experience and his German training as a Master Toolmaker to bear on his customers' problems. In fact, Mailey's knowledge and expertise are so strong that he was able to win Nu Tech first major development project-a polypropylene battery clamshell with living hinge for Johnson Control before the company even had molding machines. Production jobs have included fuel tank reservoirs, assorted fuel safety parts, leaf spring components, truck grilles, and other under-hood components. Credit also goes to the speed and precision of the Elektra allelectric molding machines from Milacron Inc. (Cincinnati, OH). Although two of the Elektras, one 300-ton and one 165-ton, were the first machines Nu Tech bought, Elektras now comprise ten of its 18 presses: two 550-ton, two 300-ton, one 165-ton, three 110-ton, and two 85-ton machines. The company operates its complement of injection molding machines out of three Michigan facilities (in Grand Blanc, Holly, and Swartz Creek) totaling 90,000 sq. ft. "Electric machines are especially important on some of the difficult parts we inherit," says Joe Harris at Nu Tech. He adds the company was awaded work on the Delphi fuel reservoirs partly because of its decision to buy 550ton Elektras to produce the parts. Plastics in action Molding Systems; Dearborn; Jun 1999; Anonymous

19 Interactive Exercise Small groups (company)
Design product using given materials Design production process Select Presenter Discuss reasons why your company should be the supplier of choice regarding quality, product and certifications Secretary To record quality production processes Small groups (15-20 minutes) Design product using given materials (all groups should be given materials to design product of their choice and its use) Production process should include operations of how it is manufactured After presentations, ask: As a customer, which supplier would you use according to the information regarding QS 9000 and quality.

20 Conclusion Enhance quality systems for suppliers
Why should companies become QS 9000 certified? Enhance quality systems for suppliers Eliminate redundant requirements Reduce costs Additional notes:

21 Suggested Readings QS-9000 In Our Company, Self-Study Course for Personnel: AQA QS-9000 Series (Jack Kanholm) QS-9000 Requirements, 119 Requirements Checklist and Compliance Guide: AQA QS-9000 Series (Jack Kanholm) The QS-9000 Answer Book (Radley M. Smith) QS-9000 Quality Systems Handbook (David Hoyle) General QS-9000 In Our Company, Self-Study Course for Personnel (AQA QS-9000 Series) (Jack Kanholm): Is intended for training personnel in companies that either operate a QS-9000 quality system or are implementing it and are preparing for certification. Explains what the QS-9000 standards are, how the quality system works, and how everyone should prepare themselves and their work areas for the certification audit. Is intended for distribution to all personnel for self-study or group training, and it includes a short multiple-choice test and a certificate of completion. QS-9000 Requirements, 119 Requirements Checklist and Compliance Guide (AQA QS-9000 Series) (Jack Kanholm): Identifies and explains 119 distinct, auditable requirements that must be implemented to pass the certification audit. Every requirement is systematically explained with regard to interpretation, procedures and records, and the way certification auditors will verify conformance. The QS-9000 Answer Book (Radley M. Smith): Explains in clear, concise detail what QS-9000 is, how it works and how it will affect your organization. Walks readers through QS-9000 and provides insight into common audit problems and how to avoid them. In-depth QS-9000 quality systems handbook (David Hoyle): Each element, clause, and requirement is analyzed in detail with instructions provided for implementation. Written primarily for implementers and discerning managers, as well as instructors and auditors, to help them understand the requirements and a range of solutions that are acceptable to the automotive industry. It includes check lists, auditor questions, tips for implementers, flow charts, and a glossary of terms. The "task lists" and "do's and don'ts" provided for each section are very useful checklists. Extensive use of charts and diagrams to illustrate interdependencies and processes. He sites real-world examples and solutions with a common sense approach. Suggested purchase site:

22 References American Society for Quality QualityBooks.co.uk Amazon.com
“Quality Spending Outlook” Quality; Troy; Dec 2001; Larry Adams. “Future of APQP and PPAP in doubt” Quality; Troy; Jan 2002; Roderick A Munro. Foster, S. Thomas. Managing Quality: An Integrative Approach. Prentice-Hall, Inc (pp , ; ). “Future of APQP and PPAP in Doubt” Quality; Troy; Jan 2002; Roderick A Munro References


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