Outsourced process and customer requirement of ISO/TS certification

[Corey Jordison]

Hi,

Could you please let me know your opinion on following?

We have outsourced assembly process for some part numbers: we sell components and semi-finished products to third-party plant, they assemble and sell us finished goods (with our logo on the label), which we deliver to our customer.

We have a customer requirement that our production must be certified according to ISO/TS 16949. Our plant is certified, but third-party plant only have ISO 9001.

1. Is that right that this customer requirement in this case will also cover third-party plant and they must accomplish ISO/TS certification?

2. Shall we show the third-party plant to auditors during our own survelliance / re-certification audits or is it enough just to prove that we have control over them?

 

[Stijloor]

<snip>We have outsourced assembly process for some part numbers: we sell components and semi-finished products to third-party plant, they assemble and sell us finished goods (with our logo on the label), which we deliver to our customer.

Just for clarification: With that "3rd party plant", you have both a customer and supplier relationship? What do you do with the finished product, once you receive it, and prior to shipping it to your automotive customer?

Stijloor.

 

[Big Jim]

You are in a bit of a "catch 22" situation.

If your customer requires production be performed in a TS 16949 facility, then your outsourced pieces probably fall into that category. To answer that question, you should best ask your customer.

Where the catch comes in is that a facility cannot become certified to TS 16949 unless they are actively making automotive parts. They cannot become certified before then.

As supplier development, what would it take to get them certified? How long will it take? how much time will your customer permit to accomplish that?

I have a client that recently went through a similar situation. They were unhappy with the quality of the work performed by their TS 16949 certified supplier, and even after much effort to get their quality to improve, it did not. They moved production to a supplier that is only ISO 9001 certified who has shown much higher and consistent quality. As supplier development, the new supplier is willingly preparing for TS 16949 certification. The customer is delighted with the situation.

 

[Corey Jordison]

With that "3rd party plant", you have both a customer and supplier relationship?

Yes.

What do you do with the finished product, once you receive it, and prior to shipping it to your automotive customer?

Inspection only.

Where the catch comes in is that a facility cannot become certified to TS 16949 unless they are actively making automotive parts. They cannot become certified before then.

They do produce automotive parts, it's no problem, the problem is they are not willing to become certified.

 

[Big Jim]

Yes.



Inspection only.



They do produce automotive parts, it's no problem, the problem is they are not willing to become certified.

Unless your customer is willing to provide a waver, you have a problem. And so does your supplier. You are both likely to loose the business.

 

[keres]

1. Is that right that this customer requirement in this case will also cover third-party plant and they must accomplish ISO/TS certification?

The customer is always right!