Benefits of IATF 16949 to your business – why is it a valuable asset?
The benefits of IATF 16949 are numerous. Companies large and small have gained measurable returns from investing in the standard by discovering cost and efficiency savings. In addition, certification for automotive quality management raises business standards to help your business to:
- Be recognised as a world-class automotive supplier & gain access to international automotive supply chain markets.
IATF 16949 is an internationally recognised standard; it has become the basis for creating a Quality Management System (QMS) around the world and has replaced many previously published requirements. When a customer is looking for a supplier, the requirement to have a QMS based on IATF 16949 is a primary, qualifying consideration if you are competing for work in the automotive industry. It provides larger customers with the proof that your organisation is capable of manufacturing products with zero defects.
- Drive quality and continuous improvement
One of the 7 quality management principles subscribed to by IATF 16949 is to improve customer satisfaction by planning for and striving to meet customer expectations, the effective execution of which will result in customer retention and repeat business. Satisfied customers are more likely to remain loyal and will reduce your need to market to new customers.
Through examining the process sequence and interactions using the process approach of IATF 16949, organisations will be able to identify improvements in efficiency and drive cost savings. The elimination of waste that occurs throughout the supply chain is one of the fundamental goals of IATF 16949.
IATF 16949 uses evidence-based decision making. By driving your decisions based on factual data, organisations will focus on placing resources in the areas that will give maximum improvement in efficiency and effectiveness. In addition, monitoring the process organisations will be able to measure improvement based on actual data which will increase the buy in and involvement of your leadership team.
- Increased employee motivation and empowerment through ownership
If employees are involved in the improvements of their processes, they will naturally become more engaged. Who is better placed than the people working within the processes to identify the areas of improvement as they are directly impacted by them? Engaged employees are more likely to be productive and will help the company improve and save, especially if they understand how they fit into the quality process and the impact it can have on the customer.
By improving your processes and organisational output efficiencies, cost savings will be a further, clear, measurable benefit of IATF 16949 because – continual improvement is another quality management principle of the standard. By making continual improvements, year on year, companies will continue to reap benefits which will compound year on year.
- Integrate your systems with other management system standards
Integration with other standards such as ISO 9001 offers you the benefit of two world-class standards operating throughout your corporate ecosystem.
- Mitigate risk and improve opportunity management through a greater application of risk-based thinking.
If you know your organisation is protected by robust standards that are stress-tested to certain limits, you have the confidence to take risks up to the boundaries of those standards. If you had the choice of buying a truck from a range of two with both being the same price but one authorised to carry 7.5 tonnes and the other 10 tonnes, you would have greater confidence and choice in purchasing the 10 tonne truck.