Informational SMMT IATF Oversight - OEM KPI Process

#1
I was informed two weeks ago that SMMT released a new process to the CB's whereby the Certification Body monitors an OEM KPI dB for Customer Scorecard Status. When a status goes "red" the CB is responsible to investigate with Supplier and based on reason/actions, issue a Customer Satisfaction Major NC against IATF-16949 starting the decertification process. I cannot locate any "formal" communication on IATF Global Oversight website or any other media platforms. Ford, GM and PSA Groupe are the starting OEM's into this process.
As often as customer scorecard indicators change, this could be a real challenge for the supply industry.
Any thoughts, experience and/or materials you can share?
See attached SMMT letter.
 

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outdoorsNW

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#3
This seems like a scheme that will reduce the number of IATF-16949 certified companies. Given OEMs sometimes have conflicting or unrealistic expectations, how many companies will want to deal with the cost and disruptions. The OEMs might regret this because their suppliers will expect 100% accuracy in scorecards and will be sending in lots of requests for corrections. Some OEMs will probably find they are no bid more or have their prices raised to deal with the hassles and risk this creates.
 

Sidney Vianna

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#4
This seems like a scheme that will reduce the number of IATF-16949 certified companies.
Making predictions is risky; especially about the future...:unsure: Time will tell if CB's will start de-certifying automotive suppliers in any significant numbers.

But, I will repeat a comment that I've made 3 or 4 times in the past about a STUPID decision made by the IATF that, in part, affects the CB's performance doing oversight of auto-suppliers: "...Unfortunately, however, the IATF themselves are partly to blame for the problem. When they instituted a ruling that the scope of the IATF audits should include ALL automotive work, irrespective if the registrant's customer ascribes to the IATF 16949 standard, or not, they made a very stupid decision. Why should a CB auditor delve into the HONDA product line of a tier one supplier, if HONDA gives a "rodent's derriere" about IATF 16949? It is simply stupid to force the auditor to spend any time there. S/he should spend ALL of their time and effort assessing the Tier 1 organization within the confines of the system touching products that go to automotive customers that demand that supplier to be IATF 16949 certified...."

An asinine decision, one they should regret having made and revoke. The IATF ascribing OEM's MUST not hinder the CB's efforts in assessing suppliers QMS robustness by forcing a dilution of the audit time with irrelevant audit trails. And, by the way, this would not be the first time I showed the IATF decisions were flawed. Check the thread when I posted this, for example.
 

outdoorsNW

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#5
I realized my prior comment was poorly worded. What I meant to say is the scheme will likely reduce the number of companies choosing to become certified.

While certificates should mean something, the proposed scheme has almost no accountability for customers to ensure they judge the supplier's fairly. The only accountability is that an unfair customer will see lots of no bids or will see price hikes as a risk premium.

A more fair method would be to require the customer to also be certified and if there are scorecard accuracy problems the customer can complain and the CB would examine the customer. In the real world this would likely lead to lots of finger pointing and both side complaining to the CB. The CBs would then likely get overwhelmed and the whole system breaks down. Plus this changes the CB role for auditor to something much more involved in the day to day operations of a business.

While my experience is more aerospace focused, I have seen plenty of customer caused issues labeled supplier responsibility. Problems blamed on us as the supplier include delays due to customer changes, poor customer prints, the customer's mandated supplier not performing (including when we advised the customer the supplier is a poor choice), slow customer response to questions, late delivery because the customer did not send a source inspector for a week after being notified, and on time delivery hits for not meeting the customer's desired date when we said there is no way to meet that date.
 
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