UK manufacturers and precision engineering companies have some world-class capabilities but with industries changing fast, diversification into the automotive sector can represent a significant opportunity. Businesses already supplying demanding industries such as aerospace, defence, oil and gas, energy and advanced engineering already possess much of the manufacturing capability, quality culture and process control needed to compete for automotive work.
However, having the technical capability to manufacture an automotive component does not necessarily mean that you are ready to enter the automotive supply chain.
Automotive manufacturers operate sophisticated global supply chains in which quality, traceability, defect prevention, production control and supplier performance are closely scrutinised. For many suppliers, IATF 16949 is therefore one of the most important frameworks to understand.
For the right manufacturing organisation, implementing IATF 16949 can form part of a wider strategy for accessing automotive supply chain opportunities, demonstrating capability to prospective customers and developing the processes expected by automotive OEMs and their suppliers.
At Assent Risk Management, we can help manufacturers understand these requirements, develop their management systems, prepare for IATF 16949 certification and address the wider compliance and supplier pre-qualification requirements involved in entering a new sector.
What is IATF 16949?
IATF 16949:2016 is the internationally recognised automotive Quality Management System standard developed by the International Automotive Task Force.
It is closely linked to ISO 9001 Quality Management, but introduces substantially more detailed requirements reflecting the risks and operating environment of automotive manufacturing.
IATF 16949 places particular emphasis on areas including defect prevention, reduction of variation and waste, process control, product safety, supplier management, traceability, risk management and continual improvement.
There is also another important difference, the IATF 16949 Certification process is slightly different to ISO Standards. Eligibility is linked to participation in the automotive supply chain and qualifying automotive manufacturing activities. Manufacturing can include production of materials, components and assemblies as well as activities such as heat treatment, welding, painting, plating and other finishing services.
This makes IATF 16949 particularly relevant to precision engineers, CNC machining companies, metal fabricators, component manufacturers, plastics manufacturers, electronics businesses and specialist processing companies that are actively seeking automotive customers.
Can IATF 16949 Help Manufacturers & Engineers Win Automotive Work?
Achieving IATF 16949 is a significant step towards winning work in the automotive sector, as many of the larger customers and OEMs require IATF 16949 as a minimum. However there are other things to consider and prepare for in order to win your first job.
An automotive customer will still need the right component, capability, capacity, technology, commercial terms and delivery performance. However, IATF 16949 can remove an important compliance barrier.
IATF-certified organisations are also entered into the IATF database, allowing their certification status to be verified.
For an established manufacturer looking to diversify, this changes the way IATF 16949 should be viewed.
Assent’s automotive compliance experts can help you implement an IATF 16949 quality management system and achieve certification but also help you to develop an automotive-ready business.
That means understanding the target customers, identifying the products and processes you could supply, assessing your existing management system against automotive requirements, developing the necessary competencies and controls, and creating the evidence prospective customers will expect to see.
Contact us to discuss how we can help.
Moving from ISO 9001 to IATF 16949
Companies already operating an ISO 9001 Quality Management System have an obvious advantage because IATF 16949 builds upon the ISO 9001 framework.
A mature ISO 9001 system may already contain processes for document control, competency, supplier management, inspection, non-conformance, corrective action, calibration, internal auditing and management review. These provide useful foundations.
IATF 16949 takes the organisation considerably further into automotive-specific quality management.
For example, manufacturers entering automotive supply chains will encounter greater emphasis on structured quality planning and automotive Core Tools such as Advanced Product Quality Planning (APQP), Production Part Approval Process (PPAP), Failure Mode and Effects Analysis (FMEA), Statistical Process Control (SPC) and Measurement Systems Analysis (MSA).
There is also the issue of Customer-Specific Requirements, commonly referred to as CSRs.
Compliance with the core IATF 16949 requirements does not necessarily mean that every automotive customer will expect exactly the same thing. Major automotive manufacturers publish additional requirements that their suppliers may need to incorporate into their management systems. The IATF currently maintains Customer-Specific Requirements for manufacturers including Ford, General Motors, BMW, Mercedes-Benz, Renault, Stellantis, Volkswagen and Volvo.
This is one reason why an automotive diversification project needs to start with the intended market and customers rather than with a generic set of quality procedures.
What Can Aerospace Suppliers Bring to Automotive?
There are strong parallels between aerospace and automotive manufacturing.
An organisation operating an AS9100 Aerospace Quality Management System will already be accustomed to a highly controlled supply chain where product quality, traceability, risk, supplier control, process effectiveness and documented evidence are important.
Both sectors demand confidence that products have been manufactured correctly and consistently rather than relying solely on final inspection to discover problems.
An aerospace manufacturer may recognise many of the principles encountered when moving towards IATF 16949 but there are, however, important differences.
Automotive manufacturing is often characterised by much higher production volumes, intense pressure on unit costs, tightly controlled production cycles and extensive use of statistical techniques to understand and reduce process variation. Whereas, Aerospace manufacturing can involve much lower volumes but extremely high levels of product assurance, configuration control and traceability.
The two standards also have different sector-specific tools, customer expectations and certification regimes.
What Can Oil and Gas Suppliers Bring to Automotive?
There is a similarly strong diversification opportunity within the oil and gas supply chain.
Many engineering businesses serving oil and gas have developed substantial expertise in precision machining, specialist fabrication, valves, pumps, pressure equipment, coatings, welding, testing, inspection, materials management and complex logistics, which are valuable industrial capabilities.
Oil and gas suppliers are also familiar with demanding procurement processes, technical specifications, supplier audits, health and safety requirements and extensive pre-qualification exercises.
However, automotive manufacturing introduces a different quality philosophy and supply chain environment.
For companies accustomed to manufacturing relatively small numbers of high-value engineered products, the move towards automotive may require greater emphasis on production repeatability, process capability, statistical control, cycle times and high-volume defect prevention.
Can You Get IATF 16949 Before Winning Automotive Work?
This is one of the more complicated questions for companies attempting to enter the automotive sector.
Businesses sometimes assume they should obtain IATF 16949 certification first and then use the certificate to start looking for automotive customers but in practice, IATF certification has eligibility rules designed to ensure that certification relates to genuine automotive supply activities.
Evidence that an organisation is a potential automotive supplier can be relevant in determining the available certification route, but the circumstances should be discussed with an IATF-recognised Certification Body before building a diversification strategy around certification.
For a manufacturer at an earlier stage, it may be more appropriate to strengthen your existing ISO 9001 system, undertake an IATF gap analysis, develop automotive capabilities and pursue potential customers simultaneously.
That avoids the circular problem of waiting for certification before approaching automotive customers while waiting for automotive work before developing the required systems.
How Long Does IATF 16949 Implementation Take?
The time it takes to implement an IATF 16949 quality management system can vary depending on several factors including the size and complexity of your organisation, existing standards and frameworks, and you appetite to dedicate resources to the project. However, Assent Risk Management has a well established implementation process for IATF 16949 which reduces risks and speeds up the process, while minimising the impact on your staff and business activities.
For example, a precision engineering company with a mature ISO 9001 system, experienced quality personnel and sophisticated manufacturing controls is starting from a very different position from a business with an informal quality system.
At Assent we recommend starting with a gap analysis, which forms the basis of an automotive quality management system and leads on to a more structured implementation project to close out the gaps.
Contact us to get started with IATF 16949.
What Other Standards Should an Automotive Supplier Consider?
IATF 16949 should not necessarily be considered in isolation.
Depending upon your organisation, customers and products, other frameworks may include ISO 14001 for Environmental Management, ISO 45001 for Occupational Health and Safety, ISO 27001 for Information Security and ISO 22301 for Business Continuity.
Automotive organisations should also investigate TISAX where information security requirements are relevant.
For manufacturers moving between sectors, the advantage is that many of these standards can form part of a wider integrated management system rather than creating separate management structures for every customer requirement.
Access the Automotive Supply Chain with Assent
If your manufacturing or precision engineering business is considering diversification into automotive, Assent Risk Management can help you assess where you are today and what needs to happen next.
Our automotive compliance support can include IATF 16949 gap analysis, implementation consultancy, internal audits, ISO 9001 integration, automotive quality support, training, wider ISO standards and supplier pre-qualification support.
Whether you are an established ISO 9001 manufacturer, an aerospace supplier exploring adjacent markets or an oil and gas engineering company looking to diversify, we can help you develop a practical route towards becoming automotive-ready.
Speak to Assent Risk Management about IATF 16949 consultancy and automotive compliance.
