Benefits of IATF 16949

Implementing IATF 16949 will have many benefits for your organization. Although changes in your QMS will take immediate additional energy, the results of having an IATF 16949 quality management system will provide you with many benefits in operations, sales, and customer satisfaction.

Why Achieve IATF 16949 Registration?

Market Recognition & Financial Benefits

Major automotive manufacturers and suppliers worldwide require registration to IATF 16949 as a condition of doing business with them. 

A well-run operation with processes under control leads to financial rewards for your hard work and investment in the Quality Management System.  It has been observed that QMS certified companies have shown improvements in financial performance as compared to uncertified ones.

Increased Customer Satisfaction

Many organizations decide to implement IATF 16949 and obtain registration because it assures customers that the company has a good Quality Management System (QMS). An organization with an effective QMS will typically meet customer expectations better than an organization that does not have one.  This is because the Goals and Objectives of the QMS take the customer needs into account. Customer needs are better understood as customer feedback is sought, received and analyzed. Goals and objectives are adjusted based on the information, and the organization becomes more customer driven. As goals focus on the customer, the organization spends less time focusing on individual goals of departments and more time working together to meet customer needs.

Internal Effectiveness through Process Improvement

IATF 16949 emphasizes audit processes, management review and improved processes based on collected data. Using facts and a system of documentation and analysis, improvements are carefully planned and implemented. This ensures that the best decisions are made for your company, which leads to better operations, improved performance, and improved profitability.

Improved Decision Making & Involvement of Top Management

With the QMS in place and working for you, the organization is focused towards the Quality Goals. Management is provided with data on a continual basis and able to see progress or lack of progress towards goals and take appropriate action. The organized, scheduled process of conducting Management Reviews ensures that this evaluation takes place. It provides the mechanism of reviewing performance against goals on a scheduled basis, and for taking action based on the evaluation.

Because of the requirements addressed in the Standard, organizations often see an increased involvement of top management with regards to the Quality Management System. This starts with the setting of the Quality Policy and Quality Goals and Objectives. It continues with Management Review looking at data from the QMS, and taking actions to make sure that Quality Goals are met, new Goals are set, and continual improvement is achieved. The quality policy also ensures that corrective action is taken whenever defects occur.  When defects are caught early, cost is lowered.

Increased Employee Involvement

Section 7.3 of IATF 16949:2016 requires that employees understand their role in the QMS.  With improved training and qualification of employees, productivity and involvement increase. Better documentation or control of processes leads to consistency in performance, and less scrap and rework. Managers experience fewer late-night troubleshooting calls; employees have more information for troubleshooting problems on their own, and new employees are able to find information they need to follow processes. IATF 16949 creates a work atmosphere that is open to feedback and idea sharing, allowing employees the chance to provide their thoughts on current processes.

Make your QMS beneficial for your business

While it is easy to see the benefits when implementing IATF 16949, it is important to remember that your Quality Management System will only return what you put into it. The standard tells organizations what needs to be implemented, but not how to implement it. As an organization, you must define your scope and tailor your QMS to suit your needs. So work with enthusiasm and optimism knowing you are contributing to the future success and profitability of your company.