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IATF OEM’s raising the bar

IATF OEM’s raising the bar

Jan. 28 2022

Where the IATF OEM ‘s raised the bar in 2016 with IATF 16949, they pumped it up a notch in 2020 with the implementation of the “red supplier process” [for now only applied by GM, Ford and Stellantis (ex FCA China, ex FCA USA LLC and ex PSA) under IATF oversight bodies IAOB and SMMT] and in 2021 with the Rules Sanctioned Interpretations 26-28 (see pages 26 – 29) (required by all IATF OEM’s and oversight bodies).   Slightly different processes with the same objective: additional follow-up with suppliers who are not meeting the IATF OEM quality and/or delivery performance targets.

In both cases

The certification body is mandated by IATF and audit-time is added for review of score cards and effective implementation of corrective actions

  • For the red supplier process, during an additional special audit
  • For Sanctioned Interpretation 26, during audit-time which is added to the regular (main or surveillance) audit, see table page 27 of the Rules Sanctioned Interpretations

In addition, in case of the red supplier process, the certification body is required to

Launch the decertification process which may or may not lead to suspension of certificate based on analysis of situation between BVC and the concerned supplier. The starting point of the decertification process is the date that the certification body has been informed by their IATF oversight body of the supplier ‘s “red status”;

Raise a major non-conformity on IATF 16949 § 9.1.2.1 Customer satisfaction – supplemental, during the special audit

The certificate suspension is a temporary status not exceeding 110 calendar days which results in either the reinstatement or withdrawal of the certificate or 100% resolve the nonconformance.  During the suspension period, the certificate remains valid and is still recognized by the IATF. 

The use of 100% resolved decision should be based on the following criteria:

  1. In exceptional case(s) where the implementation of corrective actions cannot be completed within a maximum of ninety (90) calendar days from the start of the decertification process
  2. The changes have been verified but there is insufficient internal or external data to demonstrate effective implementation.

Note:  it is not acceptable to close the nonconformance solely based on an approved action plan. Within the context of the red supplier process, if the nonconformance is 100% resolved, another onsite special audit is required within a maximum of ninety (90) calendar days from the closing meeting of the first special audit. The outcome of the second special audit shall be to reinstate or withdraw the certificate.

Some examples of situations which may not lead to suspension of certificate:

  • If there is verified evidence (e.g. written agreement from OEM, supplier code issue) that the site is not responsible for the poor performance identified by the customer, then that site‘s certificate is not suspended
  • If the issue was rescinded by the OEM and the next month ‘s rating will refresh to “green”.
  • If the issue is currently being disputed and the validity of the dispute is confirmed by the IATF OEM member.
  • If the Certification Body already has an open suspension for the same IATF OEM and the same customer performance issue
Process Applied by Enforced by Additional audit-time Additional requirement
Red supplier process GM, Ford and Stellantis (ex FCA China, ex FCA USA LLC and ex PSA) IATF oversight bodies IAOB and SMMT During special audit • Launch of decertification process
• Major non-conformity on IATF 16949 §
9.1.2.1 Customer satisfaction – supplemental
Rules Sanctioned Interpretations 26-28 (see pages 26 – 29) All IATF OEM’s All IATF oversight bodies During regular audit, see table page 27  


For more information on these processes, please contact your local Bureau Veritas Certification office.