It is worth collecting - the new version of APQP requires in-depth analysis and application guidance from experts

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With the release of the new APQP (Advanced Product Quality Planning) on March 1, 2024, there is a lot of interest from automotive supply chain professionals such as project managers, engineers, supplier quality managers (SQEs), quality system managers, and auditors. APQP, a pioneering quality planning tool jointly developed by the three major U.S. automotive companies, has long been at the heart of the global automotive industry and its supply chain.

This article will publish the important content of expert interpretation in the new version of the APQP forum held on May 9, 2024, aiming to help enterprises accurately grasp the details of changes, optimize quality management strategies, improve risk management capabilities for new product development, meet the requirements of OEMs, improve efficiency, and reduce costs.

For more information and practical learning, please participate in the open class of "Understanding and Application of APQP and CP New Edition" on May 28-30.

01 One

Change 1: Emphasize the risk identification and assessment of new projects

1. Interpretation of change points:

In the latest edition of AIAG APQP, two key points were covered in depth: the first is to form a multi-party argument team to conduct a project risk assessment (APQP 0.1), and the second is to establish a risk assessment and mitigation plan to reduce or eliminate project risks (APQP 1.17).

1.1 Formation of multi-party argumentation teams and risk assessment methods (APQP 0.1):

An important step in the first phase of the project, when the project is launched, is to set up a multi-stakeholder team to identify and assess the risks.

The team's responsibilities include the use of specific risk assessment tools, such as risk factor checklists, to identify potential high-risk factors. These risks may involve understanding of customer needs, key product features, development resources, team capabilities, leadership involvement, and previous experience.

Particular emphasis was placed on the importance of contingency plans to deal with issues such as supply chain disruptions, critical equipment failures, supplier stability, and employee turnover.

1.2 Establish a risk assessment mitigation plan (APQP 1.17):

At any project stage, once a risk has been identified, a mitigation plan must be developed accordingly.

These programs include risk avoidance, mitigation, control, or transfer strategies. The project manager is responsible for these plans and ensures their implementation.

The handbook also provides several examples of how to develop and enforce control strategies based on the severity of different risks (high, medium, low).

2. Affiliation with 16949:

The workshop explored in detail the relationship between APQP and the IATF 16949 standard and highlighted the centrality of risk management in the APQP process. Specifically, there was an in-depth discussion around the following three aspects:

2.1 Establishment of APQP Cross-Functional Teams (IATF 16949 - 8.3.2.1 Design and Development Planning - Supplemental):

• It was emphasized that teams of members from different functions should be established in APQP projects to ensure that the perspectives and expertise of all parties involved are covered from the beginning of the project, thereby reducing risks.
• This multi-party approach not only facilitates the implementation of simultaneous engineering, but also ensures close collaboration between the design, process and production phases, avoiding information silos between departments.

2.2 Risk Review of Product Design Inputs (IATF 16949 - 8.3.3.1 Product Design Inputs):

• During the product design phase, a risk review must be conducted on all design inputs, which includes assessing the risks of the product's manufacturability, equipability, and serviceability.
• In addition, the organization's ability to manage risks, such as project experience, managerial involvement, suppliers' APQP capabilities, etc., is assessed to ensure that all potential risks are fully considered and addressed.

2.3 Error-proofing measures in manufacturing process design inputs (IATF 16949 - 8.3.3.2 Manufacturing process design inputs):

• In the design phase of the manufacturing process, attention should be paid to the application of error-proofing measures, which is an important strategy to control and reduce risks.
• Error-proofing methods can be divided into error-proofing in the design phase and error-proofing in the manufacturing process, prioritizing error-proofing measures in the design phase and, if not feasible, considering implementing error-proofing in the manufacturing process or managing risk through detection methods.

02 Two

Change 2: Increase the requirements for organizational capacity planning

1. Interpretation of change points:

1.1 Addition of capacity planning requirements to APQP Phase 1 output (1.13)

The aim of this change is to improve the feasibility and reliability of the project through a more systematic and comprehensive capacity analysis, ensuring that the customer's specific requirements and contractual provisions are met.

This change underlines the comprehensive planning of production capacity to ensure the smooth implementation of new projects and continuous supply. The specific requirements cover the overall equipment effectiveness (OEE) historical data review of the equipment.

In addition, it is necessary to pay attention to the bottlenecks that may occur in the production process and develop corresponding mitigation measures in advance. A ramp-up plan is also necessary to ensure that the expected production capacity is gradually reached in the early stages of production. At the same time, it is necessary to reserve enough flexibility to meet the prototyping needs of new projects.

Capacity planning also needs to be down to the downtime due to equipment maintenance and breakdowns to ensure that these factors are fully taken into account in the capacity assessment.

2. Affiliation with 16949:

2.1 Emphasis on the review and verification of capacity requirements for APQP projects (IATF 16949 - 8.2.3.1.3 Organizational Manufacturing Feasibility):

IATF standards require a comprehensive review of an organization's manufacturing capabilities, including technical and engineering technical requirements and capacity requirements. The new APQP standard emphasizes that capacity planning should be verified through actual production runs to confirm whether the production rate and cycle time can meet customer needs and ensure the qualification rate of products.

2.2 Emphasize that process design outputs should include an analysis of capacity (IATF 16949 - 8.3.5.2 Manufacturing Process Design Outputs):

The process design output should include not only engineering drawings and the identification of special features, but also capacity analysis. This requires the project team to conduct a systematic yield analysis during the product development process, and use these analysis results as one of the main outputs to ensure the implementability of the design and its application in the production phase.

2.3 Emphasizing the information of capacity planning in the production scheduling (IATF 16949 - 8.5.1.7 Production scheduling):

In the mass production phase, production scheduling must take into account the details provided by capacity planning, including customer order volumes, suppliers' on-time delivery performance, usage of shared equipment, and necessary lead time. This information helps ensure the accuracy of production plans, and preventative maintenance and equipment downtime must also be incorporated into the plans to safeguard production efficiency and product quality.

03 Three

Change 3: Strengthen the requirements for change management of new projects

1. Interpretation of change points:

1.1 Add change management requirements to APQP Phase 1 output (1.15)

The key focus of change management includes ensuring that all APQP output documents, such as control plans and design drawings, include detailed changelogs. These logs record the reason for each change, the applicant, and the date of their approval. In addition, any changes initiated by customers or suppliers must be notified to all parties involved in order to prevent risks arising from unilateral changes.

In addition, once the customer has approved a specific change, such as a design drawing or special feature, these elements can no longer be changed without re-approval. This underlines the importance of identifying and validating special features in the early stages of a project, ensuring that project risks are properly managed after design and process risk assessments.

Finally, for all changes approved by the customer, a strict customer procedure application process must be followed. This enhanced change management process aims to ensure the overall quality and consistency of the project, reduce risks in the production phase, and improve the stability and reliability of the final product.

2. Affiliation with 16949:

2.1 Emphasizing APQP Project Change Control (IATF 16949 - 8.3.6.1 Design and Development Changes):

According to IATF 16949, all design and development changes must be approved internally and by the customer before they can be implemented, especially those that will affect the performance, shape and functionality of the product. This echoes the enhanced change management requirements in APQP, which require all details of changes to be documented, including the reason for the change, the applicant, and the date of approval, ensuring that each change can be traced back to the specific approval process.

2.2 Emphasis on Change Control and Validation (PTR) of the Production Process after the Start of Mass Production (IATF 16949 - 8.5.6.1 Control of Changes - Supplemental):

IATF 16949 requires strict controls for any changes in the production process, and it must be verified that these changes will not negatively impact the product realization. This covers changes from customers, within the organization, or from suppliers. In APQP, changes to the production process are also subject to a Pilot Production Verification (PTR), and all changes must go through an appropriate approval process to ensure that the changed production process still meets quality standards.

2.3 Change control emphasizing bypass (IATF 16949 - 8.5.6.1.1 Temporary change of process control):

For temporary substitutions, such as those involving adjustments to production equipment or testing equipment, IATF 16949 requires a risk analysis and changes are made only if the risk cannot be controlled. The control requirements for these interim overrides have also been strengthened in APQP, emphasizing the need for comprehensive risk assessment and planning prior to the implementation of any changes to ensure that every step of the change management process is effectively monitored and executed.

04 Four

Change 4: Emphasize the leader's monitoring of all stages of the APQP project

1. Interpretation of change points:

In the latest version of the APQP standard, special emphasis is placed on the monitoring of project metrics and the support of leadership, which significantly improves the efficiency and effectiveness of the entire project management.

1.1 Enhanced Project Indicator Requirements (APQP 1.16):

The new standard adds requirements for APQP project indicators to the first phase output. These metrics include whether the project was completed on time, risks identified during the process, and other key performance indicators. By monitoring these metrics, you can ensure that the project is moving smoothly according to the set goals. In addition, the monitoring results of all project metrics need to be included in the management review, i.e., the gate review, so that the leadership can keep abreast of the project status and make corresponding decisions.

1.2 Lead the review of the project phases (APQP 1.14):

The terms of leadership support have also been updated to now require leadership to conduct a stage review at the end of each phase of the APQP. This review not only increases leadership engagement and commitment, but also ensures that the project is adequately supported and resourced at every critical juncture. Through this method, problems that arise in the process of the project can be found and solved in a timely manner, and the success rate of the project can be improved.

2. Affiliation with 16949:

2.1 APQP phases should be reviewed by top management and status reported to customers (IATF 16949 - 8.3.4.1 monitoring)

In the latest APQP standard update, the requirements for leadership review and customer status reporting at all project phases have been further strengthened and are closely linked to IATF 16949 Clause 8.3.4.1. In particular, this clause emphasizes the importance of monitoring the planning process of APQP during product design and process design development, and ensuring that the output of these activities is properly measured, analyzed, aggregated, and reported to top management.

In addition, IATF 16949 requires top management not only to participate in management reviews, but also to ensure that these reviews are conducted in a timely manner in accordance with the various phases of the APQP, rather than only being considered in annual or semi-annual system reviews, as is the case in some factories. This ensures that each critical phase of the project receives the necessary attention and resources to improve the efficiency of project execution and the effectiveness of the results.

05 Five

Change 5: Increase the requirements for supplier APQP monitoring

1. Interpretation of change points:

1.1 Add procurement requirements to APQP principles (0.5)

In the latest version of the APQP, the requirements for the procurement process (0.5) have been explicitly added, emphasizing the critical role of the supply chain in quality and capacity assurance. In particular, in terms of supplier management, the standard proposes specific improvements to ensure the effectiveness and reliability of the supply chain.

The key point is that supplier selection and review is no longer the responsibility of the procurement department alone, but requires the participation of the project team. This change ensures that the supplier's risk is assessed from multiple perspectives, resulting in a more complete understanding of the supplier's capabilities and potential risks. This approach reinforces the importance of cross-departmental collaboration and facilitates more in-depth and comprehensive supplier audits.

In addition, procurement checklists have been introduced to standardize and systematically evaluate suppliers, especially those considered to be at high risk. The checklist covers a number of aspects such as the supplier's manufacturing system, quality system, technical capabilities, financial soundness, and its ability to control special characteristics. This tool not only helps organizations assess the overall capabilities of suppliers, but also makes the supplier selection and review process more transparent and evidence-based.

The new APQP requirements emphasise the APQP monitoring of suppliers, especially at different stages of the project, through gate reviews to ensure that the supplier's performance is consistent with the project requirements. This approach ensures that the supplier's performance over the entire project life cycle meets the needs of the OEM, thereby reducing project risk caused by the supply chain.

These changes not only improve the effectiveness of supply chain management, but also ensure that the performance and risk of suppliers in the APQP process are effectively controlled, and enhance the quality and reliability of the entire supply chain.

2. Affiliation with 16949:

2.1 The Organisation shall implement a similar PPAP approval to the Supplier prior to the submission of the PPAP (IATF16949 Clause 8.3.4.4 Product Approval Process):

Before an organization submits a PPAP, it is important to ensure that the supplier has implemented a similar PPAP approval process. This measure ensures that the supplier's products meet all quality and design specifications before they enter the production line, thereby reducing quality issues in production.

2.2 The organization shall establish criteria for the selection of suppliers (IATF16949 Clause 8.4.1.2 Supplier Selection Process):

Organizations must establish a clear set of criteria for selecting suppliers, which should cover aspects such as the financial stability of suppliers, technical resources, design and development capabilities, contingency planning, and logistics capabilities. This selection process ensures that only the most suitable and reliable suppliers are part of the project.

2.3 Based on the characteristics of the supplier's risk control and transmission (IATF16949 the type and degree of control in clause 8.4.2.1 - supplemental):

The type and extent of control over suppliers should be determined based on their performance and risk assessment. This includes controlling the characteristics that are passed on by the supplier to ensure that these characteristics are passed on directly to the customer through the organization's quality management system without additional validation and control. This control is not limited to the application of the quality system, but also covers the monitoring and management of the transfer characteristics to ensure their effectiveness and safety.