ISO/TS 16949 analysis of the current trends

Zarz¹dzanie i Finanse Journal of Management and Finance Vol. 13, No. 2/2015
Katarzyna Hys*
Katarzyna Hys
ISO/TS 16949 analysis of the current trends
ISO/TS 16949 analysis of the current trends
Introduction
Thanks to the constant globalisation process and the systematically
encountered fierce competition on international markets, the change in
the location of production processes has become a common practice for
entrepreneurs representing the automotive sector all over the world. At
the same time, the phenomenon of capital concentration can be observed
in the automotive sector. This concentration can be seen in the form of numerous fusions and acquisitions continuously taking place on this market,
the implication of which are newly-formed entities or capital groups [Hys,
2015, p. 28; Calado et al., 2014, pp. 23–34; Chang et al., 1999, pp. 407–418;
Ostadi et al., 2010, pp. 494–511].
The occurring capital concentration and relocation of production entail further consequences. Entrepreneurs from the automotive sector acting in the environment of dispersed business entities have to unify operation standards, including quality standards. In relation to the above, in
this paper, the author will consider the issue of quality standards which
are used in the enterprises of the automotive sector [Przybytniowski,
Buczma, 2014, pp. 46–53; Przybytniowski, 2012, pp. 33–56; Reid, 2005,
pp. 31–38; Zakuan et al., 2009, pp. 439–443; Rodríguez-Rocha et al., 2009,
pp. 100–106].
The aim of the paper is to present and analyze trends in implementation of quality certificates that conform to the ISO/TS 16949. Data preparation and analysis of inference was performed based on desk research
methods. Data were collected on the basis of source materials including
such as communications, trade studies, reports, companies and research
institutions.
1. Methodology
The preparation of data, their analysis and drawing conclusions have
been made on the basis of the desk research method. The data was gathered by means of an analysis of source materials such as, among others:
* Ph.D., Faculty of Production Engineering and Logistics, The Opole University of Technology, Luboszycka 5, 45-036 Opole, [email protected]
38
Katarzyna Hys
announcements, press releases, reports for industries, publicly available
reports of companies and research institutions, information from the Internet.
2. Technical Specification Identification ISO/TS 16949
2.1. Idea ISO/TS 16949
The range of solutions in the scope of quality applied by particular
concerns caused that there was a huge difference in the execution quality
between particular cars. This issue is particularly important in case of the
automotive sector as the structure of this market is quite specific. We can
differentiate two groups of entities: car manufacturers (OEM, VM) that
create the final product and sub-suppliers (e.g. Tier 1 supplier) that supply
parts indispensable to assemble a vehicle.
In case of Poland, particular concerns use parts coming from about
80% of independent manufacturers in the production process of vehicles.
The parts are produced by car manufacturers in 20%. The other parts used
for the car manufacturing come from independent manufacturers that
make an important contribution to the final product formation process
[Bran¿a motoryzacyjna w Polsce, 2014, p. 17]. In reality, such a market physiognomy meant many discrepancies in the scope of quality requirements
in relations between final product manufacturers and independent manufacturers of parts. This is why, the situation on the market had an influence on the creation of the need in the scope of universalisation of the
quality standard for all entities being the part of the supply chain.
Elaboration of a standard which provided for consistent criteria in
the scope of requirements and assessment for all sub-suppliers has come
into force in 1999 [Kartha, 2004, p. 336; bsigroup.com, 2015]. The technical
specification ISO/TS 16949 [2009] is a consensus among numerous solutions of local character for enterprises from the automotive sector in
a given country [Wolniak, Szymañski, 2006, pp. 70–71]. It means that
the technical specification ISO/TS 16949 is a consequence of the requirements standardisation process in the scope of quality management for
the automotive sector replacing the solutions such as: VDA 6.1 (Verband
Der Automobilindustrie), QS 9000 (Quality System), AVSQ (Associazione
nazionale dei Valutatori di Sistemi Qualità) or EAQF (Stands for evaluation, aptitude, quality and supplier) [Bevilacqua et al., 2011, pp. 841–866;
Johnson et al., 2007, pp. 41–56; Joshi et al., 2013, pp. 151–161].
ISO/TS 16949 analysis of the current trends
39
2.2. Basic description of ISO/TS 16949
The technical specification ISO/TS 16949 is synchronised with the ISO
9001 standard. It establishes detailed requirements concerning the quality
management system during the production process as well as assembling
and maintenance of products connected with the automotive industry.
The concentration of specification requirements is focused on the activities in the scope of manufacturing and rendering services, supervising
the monitoring and measuring equipment, analysis and improving
the quality management system in the automotive industry by means
of undertaking preventive measures limiting the creation of inconsistencies and eliminating discrepancies and losses in the supply chain [ISO/TS
16949:2009, 2009]. Moreover, the diffusion of ISO/TS 16949 and ISO 9001
in the scope of client’s detailed requirements provides tools of purposeful
offer formation by VM. The vehicles manufacturers’ offer makes it possible to skillfully combine qualitative technical aspects of a vehicle with
marketing elements already at the stage of projecting.
The technical specification ISO/TS 16949 in relation to the ISO 9001
requirements introduces:
– specification of the terminology concerning the automotive industry
specificity (3),
– extension of requirements concerning documentation in the scope
of the necessity of introducing supervision over the technical documentation (4),
– as far as responsibility, rights and communication are concerned,
a need to appoint the client’s representative has been noticed (5.5),
– as far as competence, consciousness and training are concerned,
the necessity of specifying the staff qualifications to design the product, documenting requirements in the scope of staff training and training at work, determining a proper motivation process for the organisation’s employees have been taken into consideration (6.2.2),
– as far as designing and development of particular parts are concerned,
standards in the scope of supervision over these phases and documenting their proper performance have been determined (7).
3. Trends – overview of global data
The concentration of the efforts of the automotive companies’ employees on the general creation and improvement of quality standards
in each of activity areas gives a chance to gain an advantage over other
40
Katarzyna Hys
concerns. At the same time, it is the way to increase efficacy and
strengthen a competitive position in the international environment.
An analysis of existing trends provides one of the objective proofs to
confirm the thesis that uniform standards in the scope of quality management in the automotive sector enterprises provide authentic results for entrepreneurs. An analysis of quantitative data concerning the number of issued ISO/TS 16949 certificates makes it possible to draw the following
conclusions that the number of certified quality systems being in accordance with the ISO/TS 16949 standard has been showing a positive trend
all over the world for the last 10 years (figure 1).
Figure 1. The total number of ISO/TS 16949 – Quality management systems –
an overview of the world
Source: Own elaboration based on [The ISO Survey of Management System Standard Certifications, 2013].
The number of issued ISO/TS 16949 certificates increases each year all
over the world. The number of ISO/TS 16949 certificates increased by 7%
all over the world in 2013 when compared to 2012 [The ISO Survey of Management System Standard Certifications, 2013]. The biggest number
of certificates was issued in 2013 in China and the increase is here the biggest when compared with the preceding year (table 1). An analysis of numerical data makes it possible to notice the fact that Chinese enterprises
were awarded as many as 38% of the total number of certificates issued all
over the world in the year 2013. However, it is worth noticing that in com-
ISO/TS 16949 analysis of the current trends
41
parison of the general number of ISO/TS 16949 certificates, numerical data
for 80 countries located all over the world have been presented.
The result can be seen in the production volume in given countries. In
case of China, the production growth by 9,6% was noticed in 2013 when
compared to the preceding year. Although Brazil, Russian Federation and
India have noticed a decrease in the production level, their production
level still largely exceeds a million of vehicles a year [The International Organization of Motor Vehicle Manufacturers, 2015]. Thanks to such a production level these countries are important business partners in the automotive sector.
Table 1. Top countries for ISO/TS 16949 certificates (2013)
No.
Top 10 countries for ISO/TS 16949
certificates – 2013
1
China
2
Top 10 countries for ISO/TS 16949
growth – 2013
20355 China
2380
Korea, Republic of
4696 India
427
3
India
4220 Korea, Republic of
242
4
USA
3903 USA
92
5
Germany
3209 Thailand
89
6
Japan
1281 Mexico
84
7
Thailand
1236 Japan
44
8
Mexico
1205 Russian Federation
43
9
Brazil
1195 Turkey
43
10
Italy
1171 Taipei, China
41
Source: [The ISO Survey of Management System Standard Certifications, 2013].
Detailed data concerning the number of ISO/TS 16949 certificates
have been shown in the figure (table 2). Among the countries which
develop their activity dynamically in the scope of adjusting quality
standards in accordance with ISO/TS 16949 specification there are mainly
countries of the East Asia and the Pacific. For countries located on
the other continents the level of certification takes a stable increasing tendency. The enterprises in the automotive sector located in Europe have
a stable qualitative policy [Hys, 2014a, pp. 33–35; Hys, 2014b, pp. 34–41].
42
Katarzyna Hys
Table 2. ISO/TS 16949 – Quality management systems – overview
in the world
Year
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Africa
144
316
342
415
447
440
447
472
464
479
Central /
South
America
394
734 1270 1383 1454 1476 1531 1575 1581 1585
North
America
4517 4571 5230 5929 5903 5411 5217 5334 5410 5592
Europe
3212 6290 8943 10159 10771 10533 10624 10891 11017 11263
East Asia
and Pacific
1479 3884 9983 14569 17719 19910 22378 24968 26985 29831
Central and
South Asia
226
Middle East
47
Total
956 1593 2016 2260 2672 2991 3388 3817 4260
296
638
727
766
798
758
884
797
713
10019 17047 27999 35198 39320 41240 43946 47512 50071 53723
Source: [The ISO Survey of Management System Standard Certifications, 2013].
Such a situation is connected with a relatively stable number of enterprises in the automotive sector, whereas countries such as North America,
Central and South Asia, Central/ South America, Middle East and Africa
develop production in the scope of automotive industry to a much lower
extent. This is why, quantitative data concerning the number of awarded
ISO/TS 16949 certificates only confirm the fact that these countries do not
count much in the global production of vehicles.
Conclusion
Quality certificates and their changes in time are subjects of research
and are very interesting [Sampaio et al., 2009, pp. 38–58]. This paper aims
at presenting a preliminary analysis in the scope of dynamics of the
ISO/TS 16949 certificates number received by enterprises all over
the world. On the basis of data, it is possible to draw conclusions that
the ISO/TS 16949 standard obtained a general approval in the entrepreneurs’ community in the automotive sector. Due to the fact that the standard has been functioning only for several years, the dynamics of its implementation in a worldwide perspective is quite impressive. The factors
which led to the creation of ISO/TS 16949 requirements and guidelines
seem to be the causes of such a situation. The factors which have an influence on the quality systems certification process can be of different origin.
ISO/TS 16949 analysis of the current trends
43
Entrepreneurs see economic aspects in the implementation of the quality
certificate. Organisation aims which have an influence on the efficacy
of the company’s operation are also mentioned. Entrepreneurs’ calculations of (non)benefits and threats connected with the certification process
outweighed the costs. The main aim of the enterprise’s operation is to gain
advantage over highly competitive companies by means of improving
the quality of their products and thanks to that, among others:
– increase the market share,
– diversify the customer’s base,
– increase actions focused on meeting market trends (among others research carried out in the scope of environmental protection, security,
– use of alternative energy resources),
– increase of the current potential of resources (among others economic,
intellectual, material, informative, technological) and
– achieve the operational synergy by a given organisational unit.
The quality systems certification in enterprises of the automotive sector in accordance with ISO/TS 16949 is acknowledged by all car manufacturers all over the world. The fact that a given company has a certificate
being in accordance with ISO/TS 16949 is an important argument in business talks. This standard introduces a common ground for all participants
of the supply chain.
References
1. Bevilacqua M., Ciarapica F.E., Giacchetta G., Marchetti B. (2011), Implementation of a quality procedure based on Delphi method and the ISO/TS
16949: 2009 in the production of stainless steel tubes for automotive exhaust
systems, “International Journal of Quality & Reliability Management”,
Vol. 28, No. 8.
2. Bran¿a motoryzacyjna w Polsce. Liczby podsumowania analizy (2014), Stowarzyszenie Dystrybutorów i Producentów Czêœci Motoryzacyjnych.
3. Calado R. D., Silva M. B., Silva Boa Sorte Oliveira A. A., Spagnol G. S.,
Sarantopoulos A., Li L. M. (2014), Defining quality and maturity level applying the grey system and the method for automotive enterprises diagnosis,
“American Journal of Theoretical and Applied Statistics”, Vol. 3, No. 6–1.
4. Chang T-Z., Mehta R., Chen S-J., Polsa P., Mazur J. (1999), The effects
of market orientation on effectiveness and efficiency: the case of automotive
distribution channels in Finland and Poland, “Journal of Services Marketing”, Vol. 13, Issue 4/5.
44
Katarzyna Hys
5. http://www.bsigroup.com/pl-PL/Zarzadzanie-Jakoscia-w-Przemysle
-Motoryzacyjnym-ISO-TS-16949, accessed 09.01.2015.
6. Hys K. (2014a), Tools and methods used by the Polish leading automotive
companies in quality management system. Results of empirical research,
“Journal of Achievements in Materials and Manufacturing Engineering”, Vol. 63, No. 1.
7. Hys K. (2014b), Dzia³ania promocyjne producentów i dealerów pojazdów
samochodowych w Polsce, „Marketing i Rynek”, nr 6.
8. Hys K. (2015), Zjawisko koncentracji i delokalizacji w bran¿y motoryzacyjnej (The phenomenon of concentration and relocation in the automotive industry), „Handel Wewnêtrzny”, nr 5.
9. ISO/TS 16949:2009 Quality management systems – Particular requirements for the application of ISO 9001:2008 for automotive production
and relevant service part organizations (2009), http://www.iso.org/
iso/catalogue, accessed 17.12.2014.
10. Johnson D. M., Sun J., Johnson M.A. (2007), Integrating multiple manufacturing initiatives: challenge for automotive suppliers, “Measuring Business Excellence”, Vol. 11, No. 3.
11. Joshi D., Nepal B., Rathore A.P.S., Sharma D. (2013), On supply chain
competitiveness of Indian automotive component manufacturing industry.
“International Journal of Production Economics”, Vol. 143.
12. Kartha C.P. (2004), A comparison of ISO 9000:2000 quality system standards, QS9000, ISO/TS 16949 and Baldrige criteria, “The TQM Magazine”, Emerald Group Publishing Limited, Vol. 16, No. 5.
13. Ostadi B., Aghdasi M., Kazemzadeh R.B. (2010), The impact of ISO/TS
16949 on automotive industries and created organizational capabilities from
its implementation, “Journal of Industrial Engineering and Management JIEM”, Vol. 3, No. 3.
14. Przybytniowski J.W. (2012), Odpowiedzialny biznes nie dla wszystkich, in:
Zarz¹dzanie procesami restrukturyzacji. Koncepcje-strategie-analiza, Borowiecki R., Jaki A. (Eds.), Uniwersytet Ekonomiczny w Krakowie, Katedra Ekonomiki i Organizacji Przedsiêbiorstw, Fundacja Uniwersytetu Ekonomicznego, Kraków.
15. Przybytniowski J. W., Buczma S. E. (2014), Konkurencyjnoœæ przedsiêbiorstw w dobie globalizacji, „Ekonomika i Organizacja Przedsiêbiorstwa”, nr 10(777), Warszawa.
16. Reid R.D. (2005), TS 16949 – where did it come from?, “Quality Progress”,
Vol. 38, No. 3.
ISO/TS 16949 analysis of the current trends
45
17. Rodríguez-Rocha B.D., Castillo-Barrera F.E., López-Padilla H. (2009),
Knowledge Capitalization in the Automotive Industry using an Ontology
based on the ISO/TS 16949 standard, Electronics, Robotics and Automotive Mechanics Conference, 20–25 September.
18. Sampaio P., Saraiva P., Guimaraes R.A. (2009), ISO 9001 certification research: questions, answers and approaches, “International Journal of Quality and Reliability Management”, Vol. 26, No. 1.
19. The International Organization of Motor Vehicle Manufacturers
http://www.oica.net, accessed 16.01.2015.
20. The ISO Survey of Management System Standard Certifications – 2013.
Executive summary (2013), http://www.iso.org, accessed 12.12.2014.
21. Wolniak R., Szymañski J. (2006), Wykorzystanie narzêdzi statystycznych
do analizy procesu w produkcji wielkoseryjnej na przyk³adzie przedsiêbiorstwa motoryzacyjnego, „Zarz¹dzanie Przedsiêbiorstwem”, nr 2.
22. Zakuan N.M., Yus of S.M., Shaharou A.M. (2009), The Link between Total Quality Management and Organizational Performance in Malaysian Automotive Industry: the mediating role of ISO/TS16949 efforts, IEEE International Conference on Industrial Engineering and Engineering
Management.
Abbreviations
OEM – Original Equipment Manufacturer
VM – vehicle manufacturer
Tier 1 supplier – direct supplier
Tier 2 – the second sub-supplier in the chain, etc.
ISO/TS 16949 analysis of the current trends (Summary)
The companies of automotive industry has always shown a particular interest the issue of quality management systems. The consequence of the process
of universalisation of quality systems in the automotive industry was to develop
a single standard. A single reference model led to define Technical Specification
(TS) 16949 by International Organization for Standardization (ISO) aimed at representing a comprehensive quality management system for the global automotive
industry. This paper studies the global evolution and diffusion of this technical
specification, observing its impact on local economies. The findings are supported by empirical data.
Keywords
ISO/TS 16949, automotive sector