Customer Notification for Supplier Process Change

[Nojader19]

Greetings all! Long time reader at the Cove, first time poster.

Today's conundrum falls into the category of customer notification for process changes (IATF 8.5.6.1).

I'm a Tier 1 to my automotive customers and I have been notified of a process relocation by one of my suppliers (i.e. Tier 3 to my customer). I'm clear on which changes within MY process that I must report; however, I'm unable to find any clarification within 16949 or AIAG that defines how far down the supply chain I must go with reporting process changes. On the surface, the supplier's change is just a simple transfer of all 4M aspects for the first half of their process from Building A to Building B. The 2nd half of their process, including final inspection, will remain unchanged. They provided before and after validation results that indicated the change did not affect product performance or quality. Personally, I feel the change has minimal (if any) risk to my customer, so my preference is to track it internally without notifying customers. However, I want to base my decision on industry standards instead of personal opinion, to the extent possible. Thanks in advance for any advice you can share.

 

[Ashland78]

What does your CSR say about suppliers, or sub suppliers? Is this for one customer or multiple.

When I worked for one company there were 8 and all mentioned something about change process...

What I currently do is combine all my CSR (Verifying the current version at least annually) into one pdf and then bookmark each customer, then search for key terms. In this case supplier change and query all at once.

 

[Nojader19]

Thanks for the advice Ashland78.
My CSRs use ambiguous language that allows them the flexibility to require notification whenever it suits them but allows an easy way out if it is in their best interest to skip a lengthy approval process. The best standard reference I've been able to find so far is the AIAG PPAP 4th Edition, Section 3. It states that organizations are responsible to notify the customer about "all changes" but, even this statement can be interpreted as "all changes, regardless of tier" or "all changes, as defined by the customer". Seems to me the only safe option is to contact the customer each time and let them decide.

 

[malasuerte]

You should have a risk assessment of your suppliers. Based on that risk assessment you can determine if notification is required. Generally (using ZVEI as guidance), changes in direct materials could warrant notification. But your risk assessment could eliminate some direct materials: no customer notify, If no risk in supply chain exists (e.g. same material composition, performance, behavior, etc).

Indirect materials probably should never require notification.

 

[Ashland78]

Thanks for the advice Ashland78.
My CSRs use ambiguous language that allows them the flexibility to require notification whenever it suits them but allows an easy way out if it is in their best interest to skip a lengthy approval process. The best standard reference I've been able to find so far is the AIAG PPAP 4th Edition, Section 3. It states that organizations are responsible to notify the customer about "all changes" but, even this statement can be interpreted as "all changes, regardless of tier" or "all changes, as defined by the customer". Seems to me the only safe option is to contact the customer each time and let them decide.

Well you could always send an email, letter in the mail and have it say if you have any concerns please let us know. Then you cya right?

 

[Pawel Zelazowski]

It might be a good idea to refer to VDA2 Appendix 8 and use it as a guide for deciding whether to inform the customer about changes—just a thought.

However, in practical terms, the risk associated with change is always present. The main focus should be on how to manage this risk for the customer and define who within the organization has the authority to decide whether or not to inform the customer. I agree with Malasuerte that having a documented process with internal requirements for informing or not informing the customer is important. Try to get this process approved by the customer and ensure the work is done accordingly. If the customer does not agree and wants to be informed of all changes, consider Ashland78's suggestion—send an email or letter with the relevant questions to the customer.

 

[Pawel Zelazowski]

Maybe another question I can ask:

How should I inform my customers about a supplier changes that has already taken place (without advance notification)?

For example: My supplier has informed me that starting January 2024, they will be producing parts at a new location, which is on a different continent. I use these parts for one or more of my customers (OEMs). This location change presents significant risks, including logistical challenges, restrictions, and issues with the allocation of service and spare parts for machines. What should I do in this situation? How should I inform my customers?

 

[Golfman25]

Maybe another question I can ask:

How should I inform my customers about a supplier changes that has already taken place (without advance notification)?

For example: My supplier has informed me that starting January 2024, they will be producing parts at a new location, which is on a different continent. I use these parts for one or more of my customers (OEMs). This location change presents significant risks, including logistical challenges, restrictions, and issues with the allocation of service and spare parts for machines. What should I do in this situation? How should I inform my customers?

Do they not have a change request system? I know my customers have a system where you input the change request and off it goes to die in the abyss. But hey, at least they are notified.

 

[optomist1]

Hi Nojader19, whether "Specifically required in IATF 16949", or not best practice (based upon experience on both sides of this equation) is...if you have knowledge of a sub-tier change, sooner than later engage your OEM SQ group and share the knowledge and jointly decide action(s) to take..if any...they are fully engaged and part of any actions thereafter.

Hope this helps
optomist1

 

[Pawel Zelazowski]

Do they not have a change request system? I know my customers have a system where you input the change request and off it goes to die in the abyss. But hey, at least they are notified.

Moreover, this is a case of many similar issues. Every change, such as a plant location change, requires additional effort from the supplier. An easier approach is not to inform the customer about changes—such as a production plant change—and skip all the necessary efforts like meeting PPAP requirements (in our case, it’s always level 3, which is the most costly). The assumption is that the customer will never find out; if they do, we'll figure out what to do at that point.

And I'm the customer How should I proceed? What do you think?
P.S. I can't change the supplier (no alternatives), and I have to inform my customer (as per IATF requirements).