IATF 16949 Process Measurement and Efficiency Measures Requirements

Dave Cx

Involved In Discussions
I have my transition audit to IATF next week and received the attached Audit Planning Form from my Certification Body this week. This is a new version form where the previous required KPI's such as customer & supplier ppm & OTIF, cost of non-quality etc. On page 11 the new form is requiring "Process performance" but not just a target & result, but the efficiency target & actual then the effectiveness target & actual. The measures we have in place are of the process effectiveness but not the efficiency.

Our processes are:-
1 Quotation, 2 Order & project launch, 3 Supplier selection & approval, 4
Product development, 5 Manufacturing process development, 6 Manufacturing process change, 7 Product approval, 8 Production planning, 9 Purchasing & supplier monitoring, 10 Series production, 11 Management Review.

Is CB's interpretation of the standard correct & hence I need to create/contrive efficiency measures against each process? Or is the process effectiveness (but not efficiency) metrics only compliant.
Thanks Dave


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Unfortunately you need two metrics for each. One for efficiency and one for effectiveness. Been that way for several years now. So, yep you need to add a few measures. It's nuts because some of your processes may not readily lend themselves to both. Try to combine and reuse when possible. We try to use a special margin calculation for a lot of efficiency measures. Also, shipment performance can be good for effectiveness of many processes. Good luck.

Dave Cx

Involved In Discussions
Thanks Golfman
We have got away without meeting the efficiency requirement to date, but no longer.

I believe I can use our current KPI's (customer & supplier OTIF & PPM, premium freight) for some of our processes.

Where there is a timing requirement then I use that as the efficiency metric & effectiveness metric is initial completion of the core task so for:-

Product development process
Part process approval right first time - Effectiveness
Submitted date complies to timing plan - Efficiency

Management review process
Scorecards >90% - Effectiveness
Business Net margin to target - Efficiency

I'll know if this has worked or not by the end of next week
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