Sanctioned Interpretation - Merger / Joint Venture

C

CINDY

All you smart individuals who can assist, please do.

Company 1 - Current Company, quality certified
Company 2 - Brand new company - does not have its first order yet.

Company 1, recently formed a joint venture minority company, Company 2.

Company 1 is fully certified and compliant ready to up-grade to 16949, 14001, and 17025.

Here is the question: What is the best way to add Company 2 with Company 1 without dual certifications? Keep in mind; I only want to manage one system for two companies with both company names on the certifications.

There seems to be some interpretation issues here.

Thanks.
 
T

tomvehoski

Some questions:

Do both companies have the same products/processes, or do they differ?

Will both companies be going for all 3 standards (16949, 14001, 17025)?

Are they the same physical location? If not, how far apart?

Is management centralized between the two?

You can build one system for two companies without a problem. If they have different company names and locations this can be a problem for the registration, especially with the three standards involved. Each standard has a different registration guide, so rules can vary based on what you are doing.

Even if they will not allow a single audit, you may be able to get them to reduce the days. For 17025, LAB partners with some registrars, so you may be able to get the same auditor and registrar for all three. This will be difficult since there are not many 16949 qualified auditors around yet. Best bet is to check with your registrar to see what they can do. You can find a list of the LAB partners at L-A-B.com.

I would set up your system for Company 1 and get that out of the way. Sounds like it is still pretty early for company 2. You can build onto the Company 1 system for Company 2 as time goes on.

I have a similar situation with two clients now. They have different owners and products, but work out of the same office. The office manager is shared and she is the Management Rep for both systems. Both are doing ISO 9001: 2000, one is doing ISO 17025. We want individual certificates for each, but would like to have one audit since the systems are almost identical. I am just now getting to the registrar quote stage, so I will update when I get some additional info.

Tom
 
C

CINDY

Tom,

You see my dilemma.

Company 1 is a full service machine shop and testing laboratory. Engineering, Prototype, Detail, Manufacturing, Inspection, and Testing Laboratory.

Company 2 is a Testing Laboratory and Manufacturing shop.

Both are housed under one roof and employ all the same individuals, including management. Currently, the only difference is the name and minority status.

We have two different auditors due to lack of one single auditor qualified for all three standards from one registrar.

Eventually, we would like to move Company 2 to its own facility once it can support itself.

Company 1 and 2 can feed each other work.

Currently, Company 1 has all the required documentation and processes and Company 2 utilizes this system.

Can I include both company's in one (one system with one certification), I do not want to have two separate systems to double all the work including audits. I currently have three systems to audit to.

Thanks for you assistance.


Cindy
 
C

CINDY

Craig,

No there is not a parent company. On paper each company is independant of each other. The only thing they share in common is one of the owners.

Thanks,

Cindy
 
C

Craig H.

Cindy

Ok, they both have the same employees and the same management. How far are the major systems shared (accouting, order taking, purchasing, etc.)? How are the resources allocated?

If the second company moves to another facility, will the two still share the same people? How long do you think it will be before the move is made?

Craig
 
C

CINDY

Craig,

All employees are shared. Company 2 will not move out of Company 1's facility for at least one year, at which point, some employees will be shared. Currently all purchasing, accounting, etc. are supplied by Company 1, thus sharing.

Thanks,

Cindy
 
C

Craig H.

Cindy

Tom is the real expert here. I think his advice is sound so far.

The reason for all of the questions is that I was looking for a common owner, but it looks like the common management/systems might do the trick.

One thought, though, is that it sounds like, when the second company moves, you may have to make a decision on weather 2 systems are needed then.

This an interesting issue. Please let us know how it turns out.

Good luck, whatever you decide.

Have a great weekend!

Craig
 
C

CINDY

Craig,

Thanks for your assistance I will keep you posted.

Hope you can venture outside in the nice weather.


Cindy
 
T

tomvehoski

What I am hoping for with my clients is one auditior visiting one time and issuing two ISO 9001 certificates and one 17025. Per RAB and registrar rules I believe they will have to complete two audit checklists for 9001 I am looking to have the auditor fill out both checklists at the same time for the common systems. Each checklist will be completed alone for the process specific things. 17025 reall messes things up since that will now require a third set of paperwork and a second certification body (L-A-B). Thankfuly I know some registrars and auditors that should help us out on this.

This is almost as much fun as convincing a registrar that my client that had the fire HAS 12 months of production data for TS 16949. Just for six monts parts per month produced = 0. On the bright side, no rejects or customer complaints. I never seem to get the normal ones.

Tom
 
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