Over the next five years, new energy vehicles are expected to see around 40% sales growth, with sales projected to exceed 16 million units by 2025 and their share of the global auto market rising from 1.7% at the end of 2020 to 3%. The global electric vehicle supply chain will benefit, and the enormous business opportunities are prompting many industries to seek entry into the automotive supply chain to grab a slice of the market.

 

The electric vehicle market is developing rapidly, and major automakers worldwide are quickly expanding capacity. Daimler, Toyota, Volkswagen, Ford, GM, Hyundai, BMW, and Tesla are all actively rolling out strategies to transform into the electric vehicle space. Various automakers have schedules to launch anywhere from 30 to 60 electric vehicle models between 2025 and 2035, while Tesla expects to maintain a delivery CAGR target of +50% over the medium-to-long term. Electric vehicles will become the main driver of future global auto market growth and accelerate the transformation and upgrading of the entire automotive industry. In addition, electric-vehicle-related infrastructure, components, and the like will all grow as electric vehicle volumes increase.

 

The automotive supply chain is a battleground that major manufacturers fiercely contest, and the auto industry places especially high importance on quality, fearing nothing more than an unexpected interruption of supply chain deliveries. Therefore, they typically work with multiple suppliers, which makes “why choose your company?” an issue every supplier must consider. In addition, many globally renowned automakers have different unique requirements for quality. Beyond passing IATF 16949 quality certification, German automakers, for example, also use VDA6.3/VDA6.5 to assess a supplier’s quality capability, which further mentions the five core tools: SPC, FMEA, MSA, APQP, PPAP, and so on. With sound production management, a supplier can move toward zero quality defects. “Automakers value logic, detail, and effectiveness,” so a company must examine its own quality management level in order to understand how to earn customer trust and successfully secure an entry ticket into the supply chain.

The purpose of implementing IATF 16949 is to continuously improve throughout the supply chain, emphasize defect prevention, and reduce variation and waste. This revision emphasizes risk management, preventing problems before they occur. In practice, the main differences in the new IATF 16949 certification are that the process is built around risk-based thinking and integrates customer-specific requirements; it also requires first-party and second-party auditor competence, and incorporates product safety, manufacturing feasibility, warranty management, and embedded software development into the standard. By effectively drawing on the experience of MiDFUN experts and making good use of the MiDFUN-QRP total quality management system, entering the automotive supply chain becomes just a matter of time.

 

To seize these business opportunities, quality control is the biggest threshold for entering the market. Approaching it from the perspective of R&D and on-site quality management, different functions encounter different management challenges. To give an example, suppose one day five departments of a company need to sit down for a meeting, but the document numbers of the files brought up for discussion may all be different. Only by using the help of the MiDFUN-QRP total quality management system and examining one’s own management can a company meet what the customer requires.

 

Regarding the areas the MiDFUN-QRP total quality management system can help manage, for example, within the BKM enterprise knowledge management platform, APQP, PPAP, FMEA, CP, and other document data can be fully integrated and effectively managed, linking FMEA-CP-SPC for coordinated control and managing abnormal 8D/CAR forms. Through quality feedback and continuous improvement, enterprises move step by step toward zero quality defects, winning customer trust and securing orders.

Through Visual Analysis and Rigorous Control, Move Toward Zero Quality Defects

SPC is one of the five core management tools and encompasses all the international standards. It is in fact not, as some people think, merely trend charts plus data. Collecting inspection data to reach the control limits of high-quality management requires placing even greater importance on real-time feedback and control. Through collection across different workstations, a visual dashboard can directly reflect on-site process capability, controlling production conditions effectively and quickly. In addition, it can provide different visualized layers and information as needed for the operational level, technical level, and management level, enabling more precise control and a reference for production strategy.

 

In responding to the IATF 16949 revision certification, besides paying attention to the validity period of the old certification, this is also a good opportunity to review the enterprise’s own quality control and production management together. The enormous business opportunities related to the automotive industry continue to ferment. By passing the new certification, mastering on-site management, and thoroughly understanding visual analysis, an enterprise can build its “three great connections” of quality and move toward the goal of zero defects, using strong production capability to win over automakers worldwide and seize the opportunities.

 

1. Why was the AIAG APQP manual revised?

2. What are the main changes in AIAG APQP (3rd Edition)?

3. Why were APQP and the Control Plan split into separate manuals?

4. What are the main chapters of the new Control Plan manual?

5. When do OEMs require the new APQP and Control Plan?

6. When will OEMs accept the new APQP and Control Plan?

7. Do the new APQP and Control Plan documents apply to electric vehicles and other transportation-related industries and technologies?

8. Do OEMs want suppliers to update their existing Control Plans to meet the new requirements?

9. Does IATF 16949 certification need to be updated to include the new versions of APQP and the Control Plan?

10. How should enterprises respond to this revision and these changes?

On March 1, 2024, the AIAG APQP 3rd Edition and the AIAG Control Plan reference manual are about to be released, replacing the previous versions (AIAG APQP and Control Plan Manual 2nd Edition). The five core tools of the automotive industry that we are familiar with are about to become six core tools.

What exactly is the impact of the APQP revision and the new revision of the AIAG Control Plan reference manual on enterprises associated with our automotive supply chain? What exactly are the changes?

 

Last year AIAG released the white paper and FAQ for the “AIAG APQP Manual 3rd Edition and AIAG Control Plan Reference Manual 1st Edition,” which provided detailed answers to related questions. From these we have compiled the ten key questions, making it convenient for those who are not yet familiar to fill in any knowledge gaps before the revision!

 

1. Why was the AIAG APQP manual revised?

Through this revision, the APQP manual newly incorporates lessons learned from launch-related blank errors and delays that occurred during the mass-production phase of new product projects. The newly revised requirements were determined based on collaboration between OEM and supplier representatives, including “new technology” suppliers capable of accelerating the realization of ACE (Autonomous, Connected, and Electric vehicles). Built on the foundation of AIAG members who are representative and globally minded in major commodities, this team adopted a rapid-response approach that can effectively accelerate development cycles and the implementation of measures (faster/earlier stakeholder involvement).

2. What are the main changes in AIAG APQP (3rd Edition)?

The most obvious change in the AIAG APQP (3rd Edition) manual is the emphasis on the robustness and interconnection of management activities, such as sourcing risk analysis, change management, APQP project metrics, risk assessment and mitigation plans, leadership (rather than management) support, and the continuous review of lessons learned and best practices. These are all reflected in the new and revised checklists, as well as in gate management (gate reviews). Clearly, these strengthened project management activities mean bringing all relevant stakeholders into organizational leadership and active participation, breaking out of the scope of “APQP as a product development methodology” to become “APQP as a management framework for the product development process.”

In the revised APQP manual, the main changes are:

Emphasizing the importance of continuously reviewing and applying lessons learned and best practices.

Removing the Control Plan content to become a separate document.

Adding a “Sourcing” chapter and a “Sourcing Checklist,” requiring the use of a “high-risk supplier assessment” method.

Adding capacity (contractually agreed output) assessment, planning, and evaluation.

Adding a “Change Management” chapter and a “Change Management Checklist.”

Adding an “APQP Project Metrics” chapter, which requires managing the effective completion of project tasks and phases through appropriate metrics.

Adding a “Risk Assessment Mitigation Plan” chapter, whose purpose is to continuously analyze and respond to risks in order to identify improvement opportunities and risk mitigation measures.

Adding “Part Traceability” content.

Improving the task completion status review checklist.

Adding a “Gate Management” appendix, including: a review at each “gate”; a recommended documented checklist; alignment with typical project milestones; the expected support for “gate reviews” in 1.14 (Leadership Support); and reviewing supplier (sub-tier) APQP activities, not just the organization’s own activities.

Conducting a comprehensive review of the project plan before business sourcing (Gate 0) and the production readiness review (Gate 5). The final gate requires reviewing multiple factors, such as: project deliverables, technical capability, internal approval through completion of safe-launch and production control plan implementation, as well as the implementation of “lessons learned” related to current parts, family/foundation FMEAs, and control plans (where applicable), and the organization’s system for ensuring that “lessons learned” are applied throughout the entire organization.

3. Why were APQP and the Control Plan split into separate manuals?

During the IATF audit process, the Control Plan has consistently been a focal point for generating audit nonconformities, and it has long been one of the top ten major and general nonconformities identified by the International Automotive Oversight Bureau (IAOB).

The new Control Plan manual:

• Incorporates lessons learned from undetected abnormalities during product launch and high-volume production.
• Includes allowances and considerations for new and/or highly automated production processes.
• Provides an opportunity to harmonize the “customer-specific requirements” of the three companies Ford, GM, and Stellantis.
• Provides more detailed and comprehensive guidance for all users to develop, maintain, and use Control Plans.
• Provides guidance on how to evaluate the effectiveness of a Control Plan through its connection with quality assurance methods (such as LPA (Layered Process Audit) and reverse FMEA).
• Allows more frequent revision of the Control Plan to reflect the ongoing evolution of automotive products and processes.

4. What are the main chapters of the new Control Plan manual?

The most obvious change in the AIAG Control Plan reference manual (compared with the previous Control Plan section in the APQP 2nd Edition manual) is the clear description of Control Plan requirements, along with further explicit guidance on how to effectively implement Control Plans, including the linkage between the Control Plan and other quality assurance methods.

The main changes in the new Control Plan manual are:

Based on past problems/opportunities, providing detailed requirements and guidance for topics: Control Plan format, special characteristics, pass-through characteristics (PTC), error-proofing verification, Control Plan family linkage, interdependent processes and/or Control Plans, rework and repair processes, reaction plan details, 100% visual inspection, “black box” processes, non-design-responsible organizations, direct supply, and the use of software to develop and manage Control Plans.

Providing detailed guidance on how to develop a Control Plan, not just the form fields. Previously it only described “form field content”; now it includes explanations of how to obtain information and some minimum requirements.

Frequency: if not 100%, it must be based on quantity and support sampling control.

Reaction plan: clearly defining the expected objectives, including controlling suspect product, preventing the process from producing more suspect product, and taking steps to return the process to a controlled state.

Reaction plan: requiring the inclusion of the reaction’s “owner/responsible party,” or reference to detailed documentation.

Adding a “safe launch” requirement: criteria must be established for exiting “safe launch,” typically 90 days of performance without causing any problems for the customer, and with no problems found by the “safe launch” additional/enhanced controls/control measures.

The production Control Plan is a living document and should be updated based on lessons learned and other continuous improvement data.

Considerations for effectively using the quality management system and other elements related to implementing a Control Plan, such as reverse PFMEA, using software to develop and manage Control Plans, layered process audits as Control Plan verification, Control Plans in highly automated processes, using family/foundation Control Plans and FMEAs, risks related to control storage and handling, and abnormality management related to the Control Plan.

5. When do OEMs require the new APQP and Control Plan?

Currently, GM’s implementation date is 6 months after the document release date.

6. When will OEMs accept the new APQP and Control Plan?

Ford, GM, and Stellantis have agreed to accept the use of the new APQP and CP Control Plan, because nothing in the new documents conflicts with APQP 3rd Edition.

7. Do the new APQP and Control Plan documents apply to electric vehicles/battery electric vehicles and other transportation-related industries and technologies?

The APQP and CP Control Plan documents provide a flexible and practical framework for the electric vehicle industry as well as other industries. These frameworks can adjust the sequence and duration of actions as needed, thereby accelerating product development cycles and improving flexibility. Most original equipment manufacturer (OEM) customers expect the APQP and CP methods to be followed and may wish to make some customizations based on the needs and guidance of a specific industry. Please consult with your customers to understand the specific direction and requirements.

8. Do OEMs want suppliers to update their existing Control Plans to meet the new requirements?

No, suppliers do not need to update their existing Control Plans to meet the new requirements.

9. Does IATF 16949 certification need to be updated to include the new versions of APQP and the Control Plan?

Yes, the current IATF 16949:2016 is about to be updated to IATF 16949:2025 to include the latest versions of APQP and the Control Plan.

10. How should enterprises respond to this revision and these changes?

If you are currently using AIAG APQP 2nd Edition, or your enterprise has not yet correctly implemented the APQP and Control Plan methods, then after the new editions of the AIAG APQP and AIAG Control Plan manuals are released, you will need to follow some important steps. Please note that the specific situation of each enterprise differs, so the steps needed to adjust your product development process may be unique to and different from your situation.

We recommend that, based on your actual situation, you refer to the new editions of the AIAG APQP and AIAG Control Plan manuals and gradually adjust and refine your product development process to ensure compliance with the new standards and requirements.

After the new editions are officially released, you are also welcome to contact our company for consultation at any time to obtain more specific advice.