Pain Points for the Automotive Industry

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“Standardize. Standardize. Standardize. It is nuts to try to maintain 8 different Customer – Specific Quality Management Systems in addition to ISO-TS 16949” – Survey respondent, Deloitte / AIAG Quality 2020 Study[1]

An industry-wide study conducted by Deloitte and AIAG (Automotive Industry Action Group) reveals the automotive industry is under more pressure than ever before to produce quality vehicles.

Data-driven insights from the report reveal problem areas experienced industry-wide. Industry leaders from 45 leading global automotive companies and their supply chains identify that:

  1. On a per-site average, industry experts invest 116 workdays annually to comply with QMS (Quality Management System) requirements
  2. On average, industry experts report spending $100,225 annually per site to comply with QMS requirements

According to the study, there is a potential for reduction in complexity and redundancy that could lead to a 40% time savings and cost cutting of nearly $50,000 per site.

A driving factor for the complexity and redundancy experienced by Quality Management System Compliance is the balance of numerous customer-specific requirements and industry standards. This repetition leads to overspending and inefficiencies in compliance efforts.

The recently published IATF* 16949: 2016 (to replace ISO / TS 16949: 2009) was developed to mitigate these problems by aligning more closely with the structure of ISO 9001: 2015, making it easier to implement multiple Quality Management System standards. The publication is better able to meet customer requirements, and better integrates with supply chains. Digital solutions that implement the new standard can streamline compliance efforts.

Software can close the gap between standards by centralizing and consolidating industry standards and customer-specific requirements while adding functionality for data analysis, workflow management and report automation. These features reduce time to conduct audits and provide cost savings on compliance.

According to the study, automotive auditing must invest in technology to minimize cost, increase efficiency, and remain competitive.

*International Automotive Task Force

[1] : https://www2.deloitte.com/content/dam/Deloitte/za/Documents/manufacturing/Deloitte-Quality-2020-Report-Feb16.pdf