2014 09 05 Cqi 19 Webinar

Understanding AIAG Sub-tier
Supplier Management (CQI-19)
DRIVING WORLDWIDE
BUSINESS EXCELLENCE
2014 Omnex, Inc.

325 East Eisenhower Parkway, Suite 4
Ann Arbor, MI 48108
734-761-4940
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permission from Omnex, Inc..
2
Copyright 2014 Omnex, Inc. All Rights Reserved.
Omnex provides training, consulting and software solutions to the

international market with offices in the USA, Canada, Mexico, China (PRC),
Germany, India, the Middle East, and SE Asia. Omnex offers over 400
standard and customized training courses in business, quality,
environmental, food safety, laboratory and health & safety management
systems worldwide.
Email: info@omnex.com
Web: www.omnex.com
Omnex Introduction
International consulting, training and software development
organization founded in 1985.
Specialties:
Integrated management system solutions.
Elevating the performance of client organizations.
Consulting and training services in:
Quality Management Systems, e.g. ISO 9001, ISO/TS 16949, AS9100, QOS
Environmental Management Systems, e.g. ISO 14001
Health and Safety Management Systems, e.g. OHSAS 18001
Leader in Lean, Six Sigma and other breakthrough systems and

performance enhancement.
Provider of Lean Six Sigma services to Automotive Industry via AIAG
alliance.
4
About Omnex
Headquartered in Ann Arbor, Michigan with offices in major global markets.
In 1995-97 provided global roll out supplier training and development for
Ford Motor Company.
Trained more than 100,000 individuals in over 30 countries.
Workforce of over 400 professionals, speaking over a dozen languages.

Former Delegation Leader of the International Automotive Task Force
(IATF) responsible for ISO/TS16949.
Served on committees that wrote QOS, ISO 9001:2000, QS-9000 and its
Semiconductor Supplement, ISO IWA 1 (ISO 9000 for healthcare).
Member of AIAG manual writing committees for FMEA, SPC, MSA, Sub-tier
Supplier Development, Error Proofing, and Effective Problem Solving (EPS).
Omnex Worldwide Offices
Omnex is headquartered
and operates from the
United States through
offices in Michigan.
The company maintains

international operations in
many countries to provide
comprehensive services to
clients throughout Western
Europe, Latin America
and the Pacific Rim.
www.omnex.com
info@omnex.com
Omnex Global Head Quarters (Michigan, USA)

West Coast Operations (San Jose, CA)
Middle East (Dubai, Saudi Arabia, Bahrain)
Asia Pacific HQ (Chennai, Pune, Delhi, Bangalore)
Thailand (Bangkok)
China (Shanghai, Guangzhou, Wuhan)
Mexico (Monterrey)
Canada (Mississauga)
Singapore
Europe (Berlin, Germany)
Malaysia (Kuala Lumpur)
R. Dan Reid
Company Experience
Accomplishments
Omnex, Director of Consulting

AIAG, Program Development Manager, Quality
Baxter Healthcare, BioScience Division, Director of Supplier Quality
General Motors, Various Materials Management, Purchasing and Supplier Quality positions
ASQ Fellow and ASQ Certified Quality Engineer (CQE)
Member of U.S. Technical Advisory Groups for Quality, Environmental and OH&S Management Systems
The first Delegation Leader of the International Automotive Task Force (IATF)
Author of QS-9000, ISO Technical Specification (TS) 16949, ISO 9001:2000, ISO International Workshop
Agreement (IWA 1), AIAG Business Operating Systems for Healthcare Organizations (HF-2); author with
McGraw Hill, ASQ Press and others; ASQ Quality Progress Administrative Committee/Reviewer
Worked on the Chrysler, Ford and GM Potential Failure Mode and Effects Analysis, Production Part
Approval Process and Advanced Product Quality Planning projects and IAQG APQP/PPAP Project
Led AIAG Projects for Effective Problem Solving, Cost of Poor Quality, Supplier Management and others
Registered VDA 6.3 Auditor Trainer; ISO 9000, ISO 14000, AS 9100 Trainer
A2LA Board of Directors
Awards include
2010 Quality Coaching Excellence for Primary Care Practices, Michigan Primary Care Consortium
2006 Automotive Industry Action Group (AIAG) Healthcare Focus Group Chairs Award
2007, 2005, 2004, 1993 Cecil C. Craig Awards, ASQ Automotive Division
2004 ASQ Automotive Division Quality Leader of the Year
2003 Leadership Award from the ISO9000 International Conference
2002 AIAG Outstanding Achievement Award
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Webinar Agenda
Background
Sub-tier Supplier Requirements
Pre-selection Phase
Selection Phase
APQP-PPAP Phase
Performance Monitoring, Development and/or Escalation
Phase
Questions
10
Copyright 2013 Omnex. All Rights Reserved.
Great Recession of 2008

Affected the entire world economy, still being felt today!
The worst global recession since World War II characterized by
various systemic imbalances, and was sparked by the outbreak
of the U.S. subprime mortgage crisis and financial crisis of
200708
http://en.wikipedia.org/wiki/Gross_world_product
, June 5, 2014
11
Great Recession of 2008

The U.S. housing market was the domino toppled many of the worlds
major economies and led the world into recession
Large numbers of homeowners faced rising adjustable-rate mortgage payments
and/or could no longer borrow against a rising home value to finance other
expenses
By the middle of 2009, the median home price had fallen close to its 2000 level
The government stepped in with a massively expensive bailout program in late
2008 and continuing into 2009
Banking was especially hard hit (176 US banks failed in 2009)
Businesses could not find the credit that they needed

Automakers General Motors (GM) and Chrysler, both of which reorganized
after brief trips through bankruptcy in 2009, qualified for bailout money
http://www.britannica.com/EBchecked/topic/1661642/TheGreat-Recession-of-2008-09-Year-In-Review-2009
12
Auto Industry Impact

The U.S. Big Three were affected because of
More expensive automobile fuels linked to the 20032008 oil crisis
Considerably higher labor costs than their non-unionized counterparts
The volume of cars sold in the U.S. was significantly tied to home equity
lines of credit, with 24% of sales financed this way in 2006
When the availability of these loans suddenly dried up in 2008 due to
the subprime mortgage crisis, vehicle sales declined dramatically, from
17 million in 2006 to 10.6 million in 2009
Michigan lost 83,000 Big Three auto manufacturing jobs

between 1993 and 2008
http://en.wikipedia.org/wiki/Effects_of_the_2008%E2%
80%9310_automotive_industry_crisis_on_the_United_S
tates
13
http://www.autoalliance.org/jobsreport
14

Supplier Quality Resources were impacted
Retirement
Hired by other industry sectors, e.g. aerospace
Relocated
Manufacturing companies today struggle to find

enough competent supplier quality resources
Academia does not adequately prepare students for

supplier quality jobs
15
How many students go into Quality as a profession?

How much does your company spend on purchased
products?
Supplier Management
Why do we need to do Supplier
Management?
16
Why Supplier Management?

ISO/TS 16949 requires supplier quality management
system development (clause 7.4.1.2)
Customer quality concerns, e. g. pass through issues
Shortcomings of third party certification

Develop more competition in supply chain
Ensure delivery, e. g. sufficient capacity is available
Reduce Cost of Quality (COQ)

Manage a financially-troubled supply chain
Drive effective use of limited supplier quality resources
ISO/TS 16949
Supplier Quality Management System Development
(clause 7.4.1.2)
The organization must perform supplier quality management
system development with the goal of supplier conformity with
this Technical Specification conformity with ISO 9001:2008 is
the first step in achieving this goal
NOTE: The prioritization of suppliers for development depends upon, for
example, the suppliers quality performance and the importance of the product
supplied
Unless otherwise specified by the customer, suppliers to the

organization must be third party registered to ISO 9001:2008
by an accredited third party certification body
18
Why Supplier Management?

ISO 9001:2008 (clause 7.4.1) also requires it
The organization has to ensure that purchased product
conforms to specified requirements
Supplier controls must be applied

The type and extent of control applied to the supplier can be
dependent upon the effect of the purchased product on
subsequent product realization or the final product
Suppliers have to be evaluated and selected based on their

ability to supply product in accordance with the
organization's requirements
19
What is AIAG CQI-19?

The AIAG Sub-tier Supplier Management (CQI19) is a voluntary guideline developed by AIAG
to provide a common process for all Tier 1
suppliers and sub-tier suppliers (tier 2 and
below) to use for supplier management.
It is not targeted for use by automakers with
their suppliers
20
Why CQI-19?
Automakers and Tier 1 suppliers indicated that management of
Tier 2+ supply base is not sufficient
Resource issues
Leadership support:
Deming: No understanding of what must be done for quality
Insufficient headcount assigned
Lack of supplier quality expertise

Lack of training
AIAG Advanced Product Quality Planning

(APQP) Does Not Address Sub-tier
Supplier Management
Inadequate metrics to drive right behavior
Why CQI-19?
Focus is on the base line requirements for what must be
done for supplier management
Based on benchmark Tier 1 supplier management processes,
e.g. best practices
Provides a common process for automotive sub-tier supplier
management
Addresses pass through characteristics (PTC) which are an
automaker concern and is not addressed in the automotive
APQP process
What are the CQI-19 benefits?

More effective supplier management processes
across the automotive supply chain
Supplier Qualification
Supplier Evaluation
Supplier Selection
Supplier Development
Problem Solving
Better use of scarce

competent Supplier Quality
resources
23
When Should CQI-19 Be Used?

New Suppliers
High Risk Suppliers
Need to determine which are
Suppliers With Unacceptable Performance

When Customers Require It
When Should CQI-19 Be Used?
CQI-19 Supplier Management Process

Define Part
Requirements
(1.1)
Supplier Prequalification
(1.2)
Develop Bid List

(1.3)
On-Site
Assessment?
YES
Pre-Selection
NO
Performance Monitoring,
Development and/or
Escalation
Escalation
NO
Results
Acceptable?
Review Technical
Capability (2.1)
Selection
Award Business
(2.2)
YES
Supplier
Development
(4.2)
Begin APQP
with Supplier
(3.1)
APQP/PPAP
YES
Exit or
Continue
Monitoring
NO
Complete PPAP
(3.2)
Develop
Supplier?
Verify Capacity
(3.2)
NO
Performance
Monitoring
(4.1)
Performance
Acceptable?
YES
Implement Production
Control Plan
(3.3)
Supplier
Assessment
(1.4)
Sub-tier Supplier Requirements
27
What Minimum Requirements do Sub-tier

Suppliers Have to Meet?
ISO 9001 compliance to the current edition (Certification
preferred)
AIAG Core Tools (SPC, FMEA, MSA, APQP, PPAP) implemented
Determination / documentation of Special and Pass Through
Characteristics
The Quality Department/Function is an integral part of the
Supplier Selection process
Supplier financial stability is reviewed before supplier selection
e.g. Dun and Bradstreet (D&B) risk analysis
CQI-19 Appendix B
28
What Minimum Requirements do Sub-tier

Suppliers Have to Meet?
ISO 17025 (or equivalent)Accreditation is required for any
commercial laboratories used
Must be by a recognized body, e.g. A2LA, NAVLAP, L-A-B
Supplier capacity and operating plan are verified before full

production approval
For example, Run at Rate
Supplier metrics include delivery and PPM or an index that

includes rejected and/or returned material
AIAG certification as applicable, e.g. heat treat (CQI-9)
Special Processes where quality can only be checked by destructive
testing
CQI-19 Appendix B
29
Customer-Specific Requirements
Some customers may have more specific
requirements for Sub-tier Suppliers
E.g. Ford Sub-tier Supplier Requirements
1. Control Plans, including Work Instructions, Preventive Maintenance,
Product Identification and Traceability
2. Process Approach
3. Performance, including Customer Satisfaction, Purchased Product
Monitoring and Controls, Problem Solving
4. Internal Auditing, including system, process, product and auditor
qualification
5. Control of Non-conforming Product
6. Part Approval, including process monitoring, capability, MSA and
change control
7. Management Responsibility
30

Define Part
Requirements
(1.1)
(1.2)
Develop Bid List

(1.3)
On-Site
Assessment?
YES
Pre-Selection
NO
Development and/or
Escalation
Escalation
NO
Results
Acceptable?
Review Technical
Capability (2.1)
Selection
Award Business
(2.2)
YES
Supplier
Development
(4.2)
Begin APQP
with Supplier
(3.1)
APQP/PPAP
YES
Exit or
Continue
Monitoring
NO
Complete PPAP
(3.2)
Develop
Supplier?
Verify Capacity
(3.2)
NO
Performance
Monitoring
(4.1)
Performance
Acceptable?
YES
Control Plan
(3.3)
Supplier
Assessment
(1.4)
CQI-19 1.0 Pre-selection Phase

1.1 Define Part Requirements
1.2 Supplier Pre-qualification
1.3 Develop "Bid List"
1.4 Supplier Assessments

1.1 Define Part Requirements

This process begins with defining Program Part
Specific requirements, including (not limited to):
Volume - Annual
Timing Model Year, Program Milestones
Quality Special Characteristics, Poka-Yoke
Logistics Transportation Mode, Packaging
Technical / Technology
Design Record Information
New Technology
Performance Expectations
Process Requirements / Special Processes

Material Requirements MSDS, Recycling, Conflict Minerals
Product Traceability
1.2 Supplier Pre-qualification (1 of 2)

Existing and potential supplier information to be used
for supplier qualification process
Products Offered
New supplier, e.g. to automotive, to customer and/or
customer plant, new location of a current supplier
New technology, e.g. new to automotive, new to the
company
Product Experience
Locations
Capability, e.g. Technology, Process, Project Management,
Supplier Management, Design
1.2 Supplier Pre-qualification (2 of 2)

Capacity, including current amount of business with the
organization, machine, line and shared capacity across
customers
Management System Certifications, e.g. quality,
environmental, health & safety
Ease of resourcing, e.g. validation time and cost
Program Timing, e.g. confirmation that the supplier can meet
the specified timing
Manufacturing Feasibility, e.g. confirmation that the supplier
can meet the specified requirements
1.3 Develop Bid List

ISO 9001:2008 also requires that criteria for supplier
selection, evaluation and re-evaluation be established
CQI-19 criteria includes
Existing and any past performance data

Current Supplier List
Risk Assessment Results (see CQI-19 Appendix E )
Technical Capability, e.g. design and manufacturing
Financial Stability
Sustainability
Labor Practices, e.g. forced or child labor
1.4 Supplier Assessment

Customer organizations may need to conduct an onsite assessment of one or more suppliers prior to
supplier selection
Reasons for an on-site supplier assessment
To determine the capability of a potential supplier
Performance problems with a current supplier
Change in management or ownership of a current supplier
At a minimum, a quality management system

assessment is completed
1.4 Supplier Assessment

Areas for supplier assessment
Delivery
Volume of Business
Logistics
Business Continuity Planning
Commercial issues
Manufacturing
Technical competency
Technology
Customer Service
Part Complexity
disaster preparedness
Adequate Resources
people,
competency
finances
Quality History
performance on similar parts
pass-through problems
Change Management

Define Part
Requirements
(1.1)
(1.2)
Develop Bid List

(1.3)
On-Site
Assessment?
YES
Pre-Selection
NO
Development and/or
Escalation
Escalation
NO
Results
Acceptable?
Review Technical
Capability (2.1)
Selection
Award Business
(2.2)
YES
Supplier
Development
(4.2)
Begin APQP
with Supplier
(3.1)
APQP/PPAP
YES
Exit or
Continue
Monitoring
NO
Complete PPAP
(3.2)
Develop
Supplier?
Verify Capacity
(3.2)
NO
Performance
Monitoring
(4.1)
Performance
Acceptable?
YES
Control Plan
(3.3)
Supplier
Assessment
(1.4)
CQI-19 2.0 Selection Phase

2.1
Review Technical Capability

(includes Quality)
2.2
Award Business
2.1 Review Technical Capability

Before selecting a supplier, a cross-functional team
should review the information gathered on the
potential suppliers for the particular quote
This should include a technical review led by
Engineering and include any other applicable
technical function
Purchasing and Quality functions must be
represented in the sourcing process

Can the potential suppliers meet the technical
requirements of the specific product(s) they are
quoting on?
Can they meet the required nominal and tolerances
specified?
Can they meet the performance specifications?
Are their validation test plans adequate?
Can they produce the quoted rate, e.g. run at rate?
Have their Engineering and Operations Executives provided
a signed feasibility study confirming their ability to meet the
specified requirements?
42

Part Pass Through Characteristics should be identified and the
awarded supplier must include these on the process Control
Plan
All characteristics that require control must be on the Control
Plan
Standard
Special
Pass Through
Preventive actions should be taken to eliminate or mitigate the

occurrence of any nonconformances on these characteristics
Error or Mistake Proofing (See Glossary)

Work Instructions

Technical Capability
Engineering
Resources
Headcount based on data, e.g. work load analysis, level
scheduling, estimated hours to complete projects in pipeline
CAD/CAM/CAE compliant with customer
Electronic data exchange process capable
Design capable
Laboratory
Testing capability laboratory scope

Lab is included in certified Quality Management System
Commercial laboratories used have ISO 17025 accreditation
Measurement Uncertainty known
2.2 Award Business

The Supplier Selection and Approval Process should be
documented
Sourcing Criteria should include
Quality Capability and Performance

Warranty
Technical Capability and Performance
Supplier Capacity
Sourcing should not be based on price alone

Suppliers should not be awarded business if Quality function
does not agree
2.2 Award Business

Quality Capability (See CQI-19 Appendix B)
There is evidence of compliance with CQI-19 Appendix B
requirements
Quality & Supplier Quality Resources
Headcount based on data, e.g. work load analysis, level scheduling,
estimated hours to complete projects in pipeline
Supplier Assessment Results
Evidence that suppliers assign any corrective actions to the

natural owners with authority to resolve them
Technical Review completed with evidence of capability to
meet specified requirements
46

Define Part
Requirements
(1.1)
(1.2)
Develop Bid List

(1.3)
On-Site
Assessment?
YES
Pre-Selection
NO
Development and/or
Escalation
Escalation
NO
Results
Acceptable?
Review Technical
Capability (2.1)
Selection
Award Business
(2.2)
YES
Supplier
Development
(4.2)
Begin APQP
with Supplier
(3.1)
APQP/PPAP
YES
Exit or
Continue
Monitoring
NO
Complete PPAP
(3.2)
Develop
Supplier?
Verify Capacity
(3.2)
NO
Performance
Monitoring
(4.1)
Performance
Acceptable?
YES
Control Plan
(3.3)
Supplier
Assessment
(1.4)
CQI-19 3.0 APQP / PPAP Phase

3.1
Commence APQP with supplier
3.2
Complete PPAP / Verify Capacity
3.3
Implement Production Control Plan

3.1 Commence APQP With Supplier

The customer organization will have begun the APQP process
prior to supplier selection
After supplier selection, the supplier will begin the AQPQ
process for the awarded customer project
Suppliers can implement APQP at appropriate stages
regardless of whether they have design or manufacturing
capability
Use of the APQP Reference Manual (from AIAG) or equivalent
is expected, including
Appropriate Control Plan template
Checklists (See APQP Appendices)
49
Pass-Through Characteristics (PTC)

During APQP, the customer and supplier organizations should
identify PTCs
PTCs are part characteristics that are not controlled or
functionally tested anywhere downstream in the supply chain
AND would have a significant impact on customer satisfaction
or warranty
A PTC may or may not be designated as a Special
characteristic
Examples include
Include engine thermostat function, threaded holes, incorrect
chemistry for bulk material
Pass-Through Characteristics (PTC)

Any direct or sub-tier customer and supplier should agree the appropriate
action, e.g. error-proofing or other controls to ensure that no defects reach
the ultimate customer
Document and implement appropriate controls and verify that they are
effective
Ensure that Quality System Documentation, e.g. procedures, FMEAs,
Control Plans and/or Work Instructions include PTCs
See CQI-19 for an optional PTC Characteristic Matrix:
3.2 Complete PPAP & Capacity

Verification
The supplier must complete all the applicable PPAP
requirements, regardless of the level of submission requested
by the customer, e.g. a Level 1 Submission Request does NOT
mean that the supplier only has to complete a Part Source
Warrant (PSW)!
Supplier must maintain or exceed the process capability in
production that it was at PPAP approval
Suppliers are expected to use the AIAG PPAP Requirements (or
equivalent) with Sub-tier Suppliers
3.2 Complete PPAP & Capacity

Verification
PPAP approval has been done prior to Capacity Verification but
CQI-19 shows that these can be completed together
The customer should verify that the supplier can meet the
quoted capacity with conformance to all specified
requirements
This should be net capacity after any scrap, rework, downtime
Production environment to be used for Run at Rate studies
Supplier Capacity should be verified at the facility, line and

machine levels
Overall plant capacity including all customers must be considered in the
part level capacity verification
3.3 Implement Production Control Plan

After launch, the supplier must
implement the Production Control
Plan (C.P.)
The Pre-Launch Control Plan which

should be the most rigorous is to be
used for the Pre-production builds
Part history of similar parts should
be used in preparing the Control
Plan
54
DFMEA
Design Record
PFMEA
Prototype C.P.
Pre-launch C.P.
Production C. P.

Define Part
Requirements
(1.1)
(1.2)
Develop Bid List

(1.3)
On-Site
Assessment?
YES
Pre-Selection
NO
Development and/or
Escalation
Escalation
NO
Results
Acceptable?
Review Technical
Capability (2.1)
Selection
Award Business
(2.2)
YES
Supplier
Development
(4.2)
Begin APQP
with Supplier
(3.1)
APQP/PPAP
YES
Exit or
Continue
Monitoring
NO
Complete PPAP
(3.2)
Develop
Supplier?
Verify Capacity
(3.2)
NO
Performance
Monitoring
(4.1)
Performance
Acceptable?
YES
Control Plan
(3.3)
Supplier
Assessment
(1.4)
CQI-19 4.0 Performance Monitoring,

Development and/or Escalation Phase
4.1
Performance Monitoring
4.2
Supplier Development
4.1 Performance Monitoring

The customer organization should monitor appropriate
supplier quality performance indicators
There should be defined criteria for acceptable performance
Potential Metrics include:
Parts Per Million (PPM) / incidents / rejections

A weighted index for overall quality/warranty
Customer Satisfaction
Incidents, e.g. spills, recalls that adversely impact customers
Delivery
Capacity Monitoring, including any shared capacity
Warranty Performance
Supplier Audits
4.1 Performance Monitoring

Customer organizations should meet with suppliers
on a regular basis
Annually at a minimum
Review Supplier Performance
Supplier Performance monitoring will result in one of

these options:
Acceptable
Not acceptable and requires
Supplier development
Escalation
De-Sourcing
4.2 Supplier Development

Minimum requirements for Sub-tier Suppliers are specified in CQI-19
Appendix, e.g. ISO9001 compliance
Customer organizations should specify criteria for which suppliers need to
be developed
Chronic performance
Sporadic issues
Capability / Capacity
Competition
Management should ensure that a sufficient number adequate competent

supplier development/supplier quality resources are in place
Work load analysis based on data, e.g. how many SQEs do you need? How do you
know??
Criteria for supplier quality resources are to be determined
Education, training and/or experience

For suppliers to be developed, the customer organization
should work with the supplier to develop and facilitate
implementation of a development plan that addresses
systemic root cause(s) of problems
Systemic root cause examples: internal audit, corrective action,
design validation, supplier selection
A systemic corrective action must involve a change to the system
or process, e.g. procedure, work instruction beyond addressing
the problem symptom
See AIAG Effective Problem Solving Guide (CQI-20) for guidance
implementing an effective problem solving process

Customer organizations should prioritize suppliers to
develop based on supplier risk and supplier performance
Also considering the importance of the purchased product to the
organizations product(s)
Top management is responsible provide sufficient

resources for supplier management activity including
supplier development (ISO 9001:2008, clause 5.1e)
Actions taken will result in either supplier performance
improvement or escalation

The escalation process should be defined
Triggers for when it is to be engaged
Responsibilities and authorities, e.g. who can solve it?
Time periods should be specified re. how long each person

involved has to resolve the issue prior to further escalation
If the issue is not resolved after escalation, then desourcing should result
See AIAG Effective Problem Solving Leader Guide (CQI -21)
Use Of Certification Bodies & Other

Resources
Where a supplier is third party certified and they ship nonconforming material to a customer on a chronic basis, their
Certification Body should be notified
This is symptomatic of a corrective action system failure and perhaps
other system elements, e.g. internal audit, management review,
objectives setting
The Certification Body should then ensure that the supplier

properly determines the root cause(s) and implements
corrective action(s) to prevent recurrence of the problems
CQI-19 is not intended to be an auditable document
Upcoming Webinars
Preparing for ISO 14001:2005 TBD, 4th quarter 2014
Customer-Specific Requirements of Select American and
European OEMs TBD, 4th quarter 2014
Contact us for information on how to register for these

webinars or to view recorded versions
64
Upcoming Training
Understanding AIAG Sub-tier Supplier
Management (CQI-19)
October 13-14, 2014 Ann Arbor, MI
65
These classes can also be

delivered at your site.
Consulting and
Implementation
Assistance is also
available.
Thank You!
Questions?
info@omnex.com
734.761.4940
66

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Understanding AIAG Sub-tier

Supplier Management (CQI-19)

2014 Omnex, Inc.

Copyright 2014 Omnex, Inc. All Rights Reserved.

Omnex provides training, consulting and software solutions to the

Copyright 2014 Omnex, Inc. All Rights Reserved.

Leader in Lean, Six Sigma and other breakthrough systems and

Copyright 2014 Omnex, Inc. All Rights Reserved.

Workforce of over 400 professionals, speaking over a dozen languages.

Copyright 2014 Omnex, Inc. All Rights Reserved.

Omnex Worldwide Offices

The company maintains

Omnex Global Head Quarters (Michigan, USA)

Middle East (Dubai, Saudi Arabia, Bahrain)

Asia Pacific HQ (Chennai, Pune, Delhi, Bangalore)

China (Shanghai, Guangzhou, Wuhan)

Europe (Berlin, Germany)

Malaysia (Kuala Lumpur)

Copyright 2014 Omnex, Inc. All Rights Reserved.

Copyright 2014 Omnex, Inc. All Rights Reserved.

Omnex, Director of Consulting

Attendee Participation Asking Questions

Note: Todays presentation is being

Copyright 2014 Omnex, Inc. All Rights Reserved.

Copyright 2013 Omnex. All Rights Reserved.

Great Recession of 2008

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Great Recession of 2008

Banking was especially hard hit (176 US banks failed in 2009)

Businesses could not find the credit that they needed

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Auto Industry Impact

Michigan lost 83,000 Big Three auto manufacturing jobs

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Auto Industry Impact

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Auto Industry Impact

Manufacturing companies today struggle to find

Academia does not adequately prepare students for

How many students go into Quality as a profession?

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Why Supplier Management?

Shortcomings of third party certification

Reduce Cost of Quality (COQ)

Unless otherwise specified by the customer, suppliers to the

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Why Supplier Management?

Supplier controls must be applied

Suppliers have to be evaluated and selected based on their

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What is AIAG CQI-19?

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Lack of supplier quality expertise

AIAG Advanced Product Quality Planning

What are the CQI-19 benefits?

Better use of scarce

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When Should CQI-19 Be Used?

Suppliers With Unacceptable Performance