QS-9000's
Tooling and Equipment Supplement:
An Analysis


by Scott Madison Paton

The TE Supplement may be a litmus
test as to who remains a direct
supplier to the Big Three.

After months of speculation, false starts and name changes, the Big Three released the Tooling and Equipment Supplement to QS-9000 in late July.

The system was introduced to Chrysler, Ford and General Motors suppliers by way of a letter from the Big Three on July 26, 1996. The letter was sent to about 1,500 key tooling and equipment suppliers and was signed by Thomas T. Stallkamp, executive vice president of procurement and supply, Chrysler Corp.; Carlos E. Mazzorin, vice president of purchasing for Ford Automotive Operations; and Harold R. Kutner, vice president, worldwide purchasing, General Motors Corp.

Formally known as Quality System Requirements Tooling and Equipment Supplement, it replaces Chrysler's Tooling and Equipment Supplier Quality Assurance process and Ford's Facilities and Tools Quality System Survey. General Motors had no prior supplier tooling and equipment quality requirements process in place. Heavy truck manufacturers were not involved and do not require compliance.

The TE Supplement consists of most of the original QS-9000 requirements (including all of ISO 9001) and additional tooling and equipment-specific requirements. Not only is third-party registration to the TE Supplement not required, it is prohibited by the Big Three.

"The Quality System Requirements and TE Supplement should be viewed as a voluntary guideline for tooling and equipment suppliers to Chrysler, Ford and General Motors; however, compliance is strongly recommended," wrote Stallkamp, Mazzorin and Kutner in their initial letter to suppliers. "Specifics regarding administration of this program will be conveyed under separate cover by each company, as appropriate."

Why is registration prohibited? Some speculate that the Big Three didn't go through all the effort to create the TE Supplement to make it a voluntary process. However, the question of sufficient qualified registrars and auditors to conduct third-party registration for both QS-9000 and the TE Supplement seems to have won out.

"The primary registration concern for the Big Three was the availability of resources," says William M. Harral, CEO of Arch Associates LLC, an ISO 9000 and QS-9000 training and consulting firm. "The focus of having adequate resources available to meet the demands for the production part of the business as found in the QS-9000 registration is simply overwhelming the availability of competent resources. Consequently, they [the Big Three] don't want to dilute the registration efforts in the production side."

But how seriously will suppliers take this "voluntary" program?

"I personally think that some companies will drag their feet a little bit because this is a voluntary situation," says Lloyd D. Brumfield, quality assurance engineering specialist with APX International, assigned to Ford's Saline Plant. "But the big suppliers are going to do it. A lot of them already have ISO 9001 under their belt. The reliability and maintainability guidelines will be a piece of cake for them."

One of the co-authors of the TE Supplement believes that suppliers will comply with the supplement for some very sound business reasons.

"I believe that suppliers will comply for two reasons," says Mary Pathuis, quality assurance manager for Riviera Tool & Die and co-author of the TE Supplement. "The first reason is that to become a Ford Q1 supplier, you must achieve compliance. And the second reason is that it makes good business sense. It develops your processes in your own facility to become more consistent. You begin looking at the value you are adding to each process. If suppliers take the time to do that, they will become more profitable."

Pathuis' point about Ford suppliers was underscored in an August 30, 1996, letter sent to "Ford Preferred, Long Term" suppliers from M.K. Creighton, director of machinery and tooling purchasing for Ford. He wrote: "Ford considers compliance with the standard to be mandatory for suppliers to maintain Preferred, Long Term status. We urge you to promptly take actions necessary in your company to implement the new standard. No deadline has been set for compliance thus far; however, all suppliers are expected to demonstrate meaningful progress toward full compliance within the next year."

So when will third-party registration be required?

"It is very definitely the Big Three's intention that at some point in the future the TE Supplement will be open to third-party registration," says Radley M. Smith, director of the automotive industry division of KPMG Quality Registrar and co-author of QS-9000. "My guess is that it will possibly occur in the fourth quarter of 1997 or the first quarter of 1998."

Of course, suppliers are not prohibited from registering to ISO 9001, which is included in its entirety in QS-9000. In fact, it seems to be the encouraged method until and if TE registration becomes available.

"I recommend that all suppliers go through ISO 9001 registration," says Pathuis. "They should also begin bringing in their systems and fine-tuning them for the TE Supplement."

Pathuis cautions suppliers to beware of registrars who insist that they can register a company to the TE Supplement. "One issue that I am taking a very strong stand on is that some registrars are saying that you can become registered to the TE Supplement," she cautions. "Beware of those registrars-you could spend money unnecessarily."

The TE Supplement is outlined in the Quality Systems Requirements Tooling and Equipment Supplement booklet and supported by the Tooling and Equipment Quality System Assessment (QSA-TE) booklet. In addition, the process requires the use of the Reliability and Maintainability Guidelines for Manufacturing Machinery and Equipment (Reliability and Maintainability Guidelines) as appropriate.

The four manuals listed below are suggested as reference tools:
Advanced Product Quality Planning & Control Plan
Failure Mode and Effects Analysis
Measurement Systems Analysis
Statistical Process Control Manual


All of these manuals are available from the Automotive Industry Action Group by calling (810) 358-3003.

Unlike QS-9000, the TE Supplement does not require the use of the Production Part Approval Process. It has been replaced by the Qualification Runoff requirements included in the supplement.

In addition, the TE Supplement task force announced in its initial letter to suppliers that it would provide the following resources to facilitate a successful launch of the TE Supplement:
Chrysler, Ford and General Motors sanctioned training materials to provide a consistent overview understanding of the TE Supplement requirements.
A Supplier Hotline (800-444-2810) to answer tooling and equipment-related questions and provide content clarification, as appropriate.
A simplified order system to provide convenient and timely availability to QS-9000 and the TE Supplement materials.

The apparent reduction in the number of requirements may lead some to think that the TE Supplement is merely a stripped-down version of QS-9000. Not at all. In fact, tooling and equipment suppliers must use most of QS-9000 (which contains all of ISO 9001), the TE Supplement and the four documents listed above.

"In those four reference manuals, there are more than 470 pages of technical data that suppliers have to comply with," says Brumfield. "A lot of tooling and equipment suppliers haven't even seen QS-9000 yet."

Applicability

The TE Supplement is quite specific in its statement of applicability. It says: "The contents of the QS-9000 as interpreted by the TE Supplement are to be applied to all manufacturers of machinery or any component thereof (e.g., replacement parts)." This machinery consists of tooling and equipment to perform processes such as: assembly, balancing, casting, deburring, forging, forming, gaging, heat treating, machining, material handling, measuring, molding, packaging, painting, plating, robotics, stamping, tooling, washing, welding and other "emerging manufacturing technologies."

Still unsure if the TE Supplement applies to you? Pathuis has a rule of thumb. "If you make a product for the automotive industry, but it doesn't travel down the road with the vehicle, more than likely you are a tooling and equipment supplier," she says.

Experts estimate that as many as 50,000 companies will be affected by the TE Supplement, far more than QS-9000 itself.

"If you make a product for the
automotive industry, but it doesn't
travel down the road with the vehicle,
more than likely you are a tooling
and equipment supplier."

What's required

The TE Supplement mandates that suppliers understand a set of specific terms related to the tooling and equipment industry. They are: dry run, durability, equipment, Gantt chart, fault tree analysis, feasibility, life-cycle cost, machinery, maintainability, mean time between failures, mean time to repair, perishable tooling, process, product, production, reliability and tooling. The definition of these terms are provided in either the TE Supplement or in the Reliability and Maintainability Guidelines.

The TE Supplement consists of three sections: ISO 9000-based requirements, sector-specific requirements and customer-specific requirements. In addition, two appendixes and a glossary aid the user in understanding and implementing the process.

Let's examine each section in greater detail:

Section I: ISO 9000-Based Requirements

In the original QS-9000 requirement, Section I consists of ISO 9001 in its entirety plus certain automotive industry requirements. The TE Supplement includes all of Section I of the QS-9000 requirement with some notable exceptions and additions.
4.1-Management Responsibility. This section is the same as QS-9000 except that in 4.1.1-Quality Policy, quality objectives are expanded to include reliability, maintainability and durability.
4.2-Quality System. Section 4.2.3-Quality Planning is substantially revised in the TE Supplement. Suppliers are required to "utilize an advanced quality planning process, embracing reliability and maintainability through the life-cycle process." In addition, the supplier is required to schedule material, operations and milestone dates to accommodate the quality and reliability requirements of the customer. Plus, a control plan must be established and documented which ensures that quality and reliability requirements are met throughout the concept, design and development, prototype, machinery build and test phases.

The TE supplement requires that feasibility reviews be documented and provides a sample of a team feasibility commitment form in Appendix II.

The Failure Mode and Effects Analysis section of QS-9000 is replaced in the TE Supplement with specific requirements to:
· Document FMEAs on all manufactured products.
· Use the Failure Mode and Effects Analysis manual for guidance as to the application and format of FMEAs.
· Suggests that internal supplier processes use the FMEA process.
· Update FMEAs when changes to the original product or process occur.


The Control Plan section of QS-9000 is also changed in the TE Supplement. It allows tooling and equipment suppliers to select the control plan format best suited to their needs. In addition, control plans for "mature products and capable processes" may be based on existing plans. It mandates that control plans be reviewed and updated when changes to the original product or process occur. And, finally, the Big Three reserve the right to give final approval to control plans.
4.4-Design Control. This element has several additions to the original QS-9000 requirements. In addition, as in QS-9000, this element applies only to design-responsible suppliers.
· 4.4.2-Design and Development Planning. This section requires suppliers to know the following skills: mean time to repair, mean time between failures, fault tree analysis and life-cycle cost. The Reliability and Maintainability Guidelines are suggested as a reference.
· 4.4.5-Design Output. This section adds requirements to QS-9000, mandating suppliers to include analysis of test data and projections of reliability, maintainability, durability and life-cycle cost.
· 4.4.7-Design Verification. The TE Supplement completely replaces the QS-9000 requirements in 4.4.7. However, the ISO 9001 requirements remain the same. A number of new requirements are added to design verification.
· 4.4.9-Design Changes. In addition to the QS-9000 and ISO 9001 requirements, suppliers are required to maintain a log of all design changes through all phases of the machinery build.

4.6-Purchasing. This element has only one note. It confirms that section 4.6.2 of QS-9000 still applies but directs suppliers to use the TE Supplement sections I and II as the fundamental quality system requirement.
4.8-Product Identification and Traceability. The TE Supplement directs suppliers to establish and maintain a tracking system for components and subassemblies. Suppliers must have an "effective system" to identify components to their next operation and by their job number. Engineering drawings and bills of materials should be cross-referenced to the tracking system.
4.9-Process Control. The TE Supplement completely replaces 4.9.1-Process Monitoring and Operator Instructions and 4.9.2-Initial Process Study Requirements of the QS-9000 requirements with new requirements. However, the ISO 9001 requirements remain the same. The supplement drops sections 4.9.5-Verification of Job Set-Ups, 4.9.6-Process Changes and 4.9.7-Appearance Items. They are available for reference if needed.
4.10-Inspection and Testing. The TE Supplement completely replaces the QS-9000 requirements in 4.10.4-Final Inspection and Testing. The ISO 9001 requirements remain the same. A requirement for suppliers to perform function verification for all tooling and equipment has been added.
4.13-The TE Supplement drops sections 4.13.3-Control of Reworked Product and 4.13.4-Engineering Approved Product Authorization. They may be used by suppliers as reference tools if needed.
4.15-Handling, Storage, Packaging, Preservation and Delivery. The TE Supplement replaces section 4.15.6-Supplier Delivery Performance with specific requirements for 100-percent on-time shipments and resource plans for capacity limitations. In addition, requirements for subcontractor scheduling systems are established. Gantt charts are suggested as a method for planning timing meetings. The production scheduling and shipment notification system sections of 4.15.6 are eliminated but may be used as a reference.
4.18-Training. The TE Supplement adds a paragraph to the QS-9000 requirements that directs suppliers to implement a formal training program to include reliability and maintainability.
4.19-Servicing. The TE Supplement adds a paragraph to the QS-9000 requirements that directs suppliers to implement a procedure for communication of information on machine uptime, reliability, maintenance history and service concerns to manufacturing engineering, and design activities.
4.20-Statistical Techniques. Suppliers are directed to have a knowledge of mean time between failures; mean time to repair; short-run SPC; control charts; p, np, c and u charts; or "any other appropriate statistical technique."

Section II: Sector-Specific Requirements

As mentioned earlier, one of the most significant differences between the TE Supplement and QS-9000 is that the Production Part Approval Process does not apply to tooling and equipment suppliers. This part of Section II is replaced by the Machinery Qualification Runoff Requirements.
1.0-Purpose. This element begins with a statement of purpose that basically says that the qualification requirements have been established to ensure that purchased items will be of acceptable quality when received by the customer in terms of function and reliability. Items are expected to function properly upon delivery and throughout their service life.

The qualification requirements have been established to:
· Reduce or eliminate start-up delays
· Improve the quality of components to conform to customer requirements
· Resolve software and control problems prior to launch
· Confirm that the equipment cycle time will meet the customer's requirements
· Verify reliability of tooling and equipment

1.1-Machinery Qualification Runoff Requirements. This element requires that any failure during a machinery qualification be documented and a root-cause analysis be conducted by the supplier. In addition, a matrix showing the requirements for machinery runoff at both the supplier and customer location is provided with equipment qualification methods, study time, quantity of pieces and specifications.
1.2-Procedure. This element outlines the steps necessary for suppliers in the predelivery acceptance procedure. They are:
· 50/20 Dry Run. This is the first step in the predelivery acceptance procedure. It begins with an explanation of the 50/20-hour dry run established in the Machinery Qualification Runoff Requirements. A 50-hour quality test is required for robots and a 20-hour continuous dry run for all other machinery.

The 50-hour test for robots may be waived by the customer if the OEM wishes to use its own test data in lieu of the on-site 50-hour quality test. In addition, the TE Supplement outlines a number of steps to be performed during the 50/20 dry run.

Tooling (for example, stamping dies, injection molds and perishable tooling) may be exempt from the 20-hour continuous dry run. Check with your customer.
· Phase 1 of Initial Process Performance-Preliminary Evaluation. This step requires suppliers to conduct a sample run with approved parts. This test may be conducted without customer representation. However, parts must be identified and available for customer review.
· Phase 2 of Initial Process Performance-Pp. This step refers suppliers to the SPC Manual to perform an evaluation of process performance. The evaluation is to be conducted at the supplier's site. The supplier must check with the customer for clarification of: sample size and type, frequency, total quantity, customer representation at the test, and acceptance criteria.
· Phase 3 of Initial Process Performance-Ppk. Again, this step refers suppliers to the SPC Manual to perform an evaluation of process performance and how it relates to tolerance location and tolerance width. The evaluation is to be conducted at the supplier's site. The requirement allows suppliers to use data from Phase 2. If the Ppk calculated from Phase 2 data is acceptable, then Phase 3 has been met. Suppliers must again check with their customer for clarification of sample size and type, frequency, total quantity, customer representation at the test, and acceptance criteria.
· Reliability. Suppliers must demonstrate through exhibits that the machinery is designed and built to the specified reliability requirement. The Reliability and Maintainability Guideline is suggested as a reference.


After the equipment is installed in the customer facility, three additional steps must be performed:
· 20-Hour Dry Run. An additional 20-hour dry run must be performed at the customer facility. The system must run for 20 hours continuously (unless the customer agrees to a different cycle time). Both supplier and customer representatives must be represented throughout the run.
· Short-Term Process Study. The supplier must collect data from 25 subgroups (with a recommended 125-piece total). This data is to be collected and recorded. The customer may request specific data summarization.
· Long-Term Process Study. Individual customer plants will require long-term data collection and analysis based on their individual needs. The customer representative at each plant should be contacted for specific requirements.

2.0-Continuous Improvement. The TE Supplement adds a requirement to QS-9000 section 2.3-Techniques for Continuous Improvement. Suppliers must demonstrate a knowledge of mean time between failures, mean time to repair, lean cycle cost and reliability growth. The Reliability and Maintainability Guideline is suggested as a reference.

Section III: Customer-Specific Requirements

As in QS-9000, Chrysler, Ford and General Motors each have additional specific requirements outlined in the TE Supplement. Because suppliers are probably already familiar with their particular customer's requirements, we won't go into detail about these individual requirements.

Is it all worth it?

To tooling and equipment suppliers, the final release of the TE Supplement must have come as a relief no matter what it forces them to do. After months of intense speculation, the suppliers now, at least, know what's expected of them.

Is it worth it? Will the TE Supplement help suppliers by improving their business processes and guarantee future business with the Big Three? Unfortunately, nobody can answer those questions. However, Mary Pathuis suggests that the supplement just may have been worth the wait.

"A common misconception is that this is going to take a whole bunch of money, a whole bunch of people and a whole bunch of time," says Pathuis. "We have found at Riviera that this is untrue. It does take some discipline. It does take some time to document, but in the long run, it pays for itself."

Radley Smith even hints that the TE Supplement may help some suppliers stay in business. "All of the Big Three have said that they are going to drastically reduce the number of direct suppliers in tooling and equipment," says Smith. "I don't think you have to strain your imagination to see that the TE Supplement and compliance would be one tool that the Big Three could use to say who gets to keep their business. It may be a litmus test as to who remains a direct supplier to the Big Three."