Acquiring an IATF 16949 Certified Company - What happens at the next audit?

[CoveReader]

Hi Everyone,

I work for a Tier 1 supplier to several automotive OEMs in Europe. We are currently in the process of acquiring one of our sub-tier companies. They have transitioned to IATF 16949 and are due to have a surveillance audit approximately two weeks following the acquisition.
To complicate matters, our own surveillance audit is due one week before that and it is not the same certification body.

I'm looking for advice on how best to manage this? Should I continue with two separate CBs? Do I have ot go back to stage 1 audit? Has anyone been in a similar situation?

Any advice woould be much appreciated!

 

[Sidney Vianna]

Welcome to The Cove. You did not say when exactly the acquisition will be finalized, but if you don't have enough time to dialogue with both CB's before the next round of audits, I would proceed with the 2 separate audits at this time.

Should I continue with two separate CBs? Do I have ot go back to stage 1 audit?

It does not make much sense to engage two separate CB's, in my opinion. You are required to communicate with them, informing of the business transaction, since that is a significant change to the QMS of the merging organizations. If I were you, assuming both CB's are providing you and the subtier incoming company good service, I would leverage this acquisition and request both CB's to provide you with commercial proposals for the continuing IATF16949 certification of the merged organization.

Good luck.

 

[CoveReader]

Many thanks, Sidney. Interesting that you say continuing certification - that is good news. I was concerned it would mean going back to the start of the certification process.

Thanks again

 

[Sebastian]

Notification to CB is important, but more important is how really your both QMS are affected by this merger.
There can be only commercial aspect of merger, where you get all their shares only or system aspect, where you take business decision which affect a way they've operated so far. I mean, e.g. you select their suppliers, you lead their quotation process. Then your processes are interacting heavily and you are considered as their Remote Supporting Function and your 3rd party audit report will be part of their 3rd party audit report.
If there is only commercial aspect, so go on with both surveillance audits and negotiate one contract for future as suggested by Mr. Vianna. Otherwise it gets more complicated and you have to report to your CB "Hey we are Remote Location to this (acquired by you) Manufacturing Site. We do for them this and that, please audit these interactions during our surveillance audit coming this year." Then you need to submit immediately report from your surveillance audit to acquired company. 3 weeks distance between two audits could be a concern for a CB of acquired Manufacturing Site.

 

[Sidney Vianna]

Sebastian’s comments are very valuable. Once the acquisition is over, the business processes of the resulting organization will affect the certification structure and might lead to a redefinition of role of the sites.

My previous comment was meant to address the short term impact only.