Beacon Quality Blog

By all accounts, the transition from ISO/TS 16949 to IATF 16949 has been a bumpy road so far. The standard encompasses a range of new requirements, including major changes to parent standard ISO 9001. Added to that, General Motors (GM) recently issued new customer-specific requirements that have significant implications for internal audits.

Many suppliers still have questions about what the new requirements are, what they should be doing to prepare and what auditors are looking to see. Time is running out, so it’s critical that organizations take action now to avoid any unnecessary delays or business interruptions due to certification issues.

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What sets apart the top 20% of innovation leaders from their competitors? According to LNS Research, one key difference is that a majority (52%) of the top tier has real-time visibility into manufacturing quality metrics, compared to just 9% of the competition .

Organizations collect quality data in a variety of ways, including audits. For companies struggling with quality problems, audits themselves can stand in the way of identifying and fixing the underlying causes.

How is this possible when audits are meant to shine a light on your processes? Common barriers include reactive auditing methods, low audit frequency and data integrity issues.

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Section 9.2.2.3 of General Motors (GM) IATF 16949 customer-specific requirements states,

“The organization shall incorporate an internal layered process audit process to assess compliance to standardized processes, to identify opportunities for continuous improvement, and to provide coaching opportunities.”

Layered process audits (LPAs) provide daily checks of high-risk processes and known customer issues, involving all layers of the organization and holding management accountable for quality. GM lists just nine elements in its IATF 16949 customer-specific requirements, but those few lines pack a huge punch in terms of their impact on supplier operations.

Suppliers must also read between those lines to earn or maintain IATF certification, addressing areas like management participation, corrective action verification and key performance indicator (KPI) tracking.

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With only a handful of aerospace original equipment manufacturers (OEMs) as potential customers, aerospace suppliers have to hustle to make sure they’re selected. Stand out for the right reasons, and you could solidify 20 years worth of business. Make the wrong impression, and you could miss out on tens of millions (or more) in sales.

Taking a page from auto manufacturers, aerospace suppliers are increasingly adopting layered process audits (LPAs) as a way to build a competitive edge. LPAs help achieve many quality goals beyond cost and defect reduction, including one that can be hard to pin down: creating a culture of quality.

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Famous businessman Robert Half once said, “Asking the right questions takes as much skill as giving the right answers.”

It’s true whether we’re talking about interviewing and hiring—Half founded one of the largest global staffing firms—or whether we’re talking about quality management. The need to ask thoughtful questions to gain valuable information is especially critical when it comes to creating layered process audit (LPA) checklists.

In an LPA program, multiple layers of management audit high-risk processes at varying intervals, conducting daily checks that systematically reduce variation. These process audits are powerful because of their high frequency, and their ability to provide a real-time snapshot of shop floor processes critical to quality.

As for whether a company can achieve the biggest benefits from LPAs? That all depends on whether you have well-written questions—and how frequently you update them.

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