The automotive industry is stuck in a position where it is heavily dependant on the quality of its supply chain operating at the highest standard, regardless of a vehicle’s price point.
In such a lucrative industry, quality assurance and visibility between supply chain and automotive brands could be a potential fatal flaw. Headlines emerge frequently of product recalls, causing harm to company brands and reputations resulting in serious economic losses.
Drivers urged to fix recalled Takata airbags that can explode
Since 2014, Takata’s faulty airbags has been a phenomenon that has affected leading automotive brands such as BMW, Ferrari, Tesla, Volkswagen and Mercedes. The quality issue has caused at least 23 deaths and hundreds of injuries due to the airbag inflators having a tendency to explode in humid conditions. Five years on and Takata airbags are still an ongoing problem with more recalls issued to this day. Takata’s catastrophe has lead to the company being the largest corporate bankruptcy of Japanese manufacturers.
VDA 6.3
The VDA (Verband Der Automobilindustrie) is a German quality management standard required by organizations to provide automotive parts for German automotive manufacturers. The standard is an extension of the ISO 9001:2015 aiming to help automotive manufacturers deliver innovation, growth and meet compliance goals.
Although developed by the automotive industry, VDA is universal and can be an effective tool for organizations to help drive process improvements and gain better visibility in their daily manufacturing tasks.
VDA 6.3 focuses on process monitoring for production parts and services. The standard also provides information on the significance and application scope of a process audit over the entire product realization cycle.
Through the implementation of VDA 6.3, risks and weaknesses are detected both in the processes themselves and in their interfaces. This is not only utilized by automotive manufacturers but is witnessed at various levels of manufacturing and FMCG environments. Such assessments are a vital element in determining whether an organization/supplier has the capability to meet the needs of a purchaser.
Ford recalls 1.48 million F-150 for crash concern
Without these assessments, an inadequate infrastructure for supply chain integration is formed carrying serious consequences along with it, the most recent example being Ford. Ford have recalled their best selling F-150 due to vehicle’s unintended downshifting into first gear which has lead to many motorists losing control. At least 5 accidents have already occurred.
Benefits of Combining VDA 6.3 and AuditComply
In a ‘just in time’ industry with complex supply chains and an independent network of suppliers, VDA 6.3 has had a profound impact. In 2011 there were fewer than 2000 process auditors, now there are over 14,600 all over the world.
For organizations in the automotive industry, following VDA 6.3 enables them to supply to German automakers including BMW, Audi, Volkswagen, Porsche and Mercedes-Benz.
VDA 6.3 boosts productivity through the identification of problem areas, reducing downtime and wastage. It helps eliminate concerns related to production and prevents the escalation of any process or quality problems. The standard has now largely superseded the IATF and has been proven to boost a company’s marketability. In such a competitive industry being VDA certified demonstrates a commitment to excellence, reliability and high quality service levels, increasing brand reputation and consumer confidence.
AuditComply’s Risk and Performance Management (RPM) platform can dramatically improve the visibility of your supply chain in any industry including automotive and manufacturing. A secure cloud technology which focuses on solutions that empower organizations to simplify their business processes whilst mitigating risk, driving compliance and improving quality. Assessment platforms like AuditComply bring flexibility and a greater overview to move beyond the limitations of traditional supply chain management methods.
AuditComply increases productivity through efficient data collection, instantaneous reporting, issue tracking and data analytics. Supply Chain auditing is revolutionised with supplier access for self-assessments and non-conformance management making supplier performance monitoring more reliable and effective. Combining the RPM platform with VDA 6.3 ensures a more robust and efficient supply chain by providing organizations with full traceability of process stages through the supply network. AuditComply provides real-time data and communication so that issues can be located and dealt with instantly whilst giving companies the ability to track supplier compliance.
Autoliv Inc. is the world’s largest automotive safety supplier with sales to all leading car manufacturers worldwide. Previously, they were using Excel workbooks to monitor their supply chain. That meant an inefficient audit process with huge delays, a lack of visibility of their supplier’s performance and little or no communication. Through using AuditComply, they have gained 360 degree visibility across all their suppliers and are able to communicate effectively and easily with each of them. This resulted in a 50% increase on their efficiency savings.
Combining AuditComply with the VDA regulations allows for significant common issues witnessed by supply chain managers, to become virtually non-existent.
Contact AuditComply to discuss how our software solutions can support you in gaining VDA 6.3 certification or help you maintain a high quality, strong and robust supply chain.
