Understanding The ISO/TS 16949:2002 Standard 

5.   MANAGEMENT RESPONSIBILITY  

5.1 Management Commitment 

Top management shall provide evidence of its commitment to develop and implement the QMS and continually improve its effectiveness.  To achieve this, they shall: 

a)    Communicate to the organization the importance of meeting requirements (customer, statutory and regulatory) 

b)    Establish the quality policy  

c)    Ensure that quality objectives are established 

d)    Conduct management reviews 

e)   Ensure the availability of resources 

5.1.1   Process Efficiency – Top management shall review the product realization & support processes to assure their effectiveness and efficiency. Also see 7.5.1.4 & 8.2.1.1) 

Key Explanation Points and Tips: 

Þ      Management commitment - relates to the responsibility of top management to provide leadership and direction for quality management within the organization. They must establish strategic quality management policies, directives and objectives consistent with the purpose and capabilities of the organization. They must establish the organizational structure and internal environment that motivates personnel to achieve the organization's quality management goals and objectives. They must provide adequate resources to develop, implement, maintain and improve the QMS. They must periodically review QMS performance to determine it suitability, adequacy and effectiveness.  

Þ      The above activities are all requirements of clause 5. Each sub-clause of clause 5 starts with the phrase “top management”. Top management is now clearly accountable and auditable for their role and responsibilities for the activities listed in the paragraph above.  

Þ      The phrase “provide evidence” is very important here. Evidence may include documents and records showing top managements role in planning and implementing the processes that apply clause 5 requirements.  

Þ      You must begin with identifying the processes within your organization that perform these activities. These processes would typically include - business planning; quality planning; management review; internal communication; organization structure; etc. Business planning would address 5.1b and 5.1c; management review would address clause 5.6; and so on for the other sub-clauses. Top management would be the process owner of all these processes.  

Þ      Clause 5.1a may be viewed in combination with clause 5.2 customer focus, and clause 5.5.3 internal communication. Top management must communicate regularly to the organization on the importance of meeting customer and regulatory requirements.  The communication process should define what needs to be communicated; to whom; the methods used; the frequency; and the means for determining communication effectiveness. (See clause 4.1a- 4.1f for guidance in developing such a process.). Top management may communicate in any number of ways including - meetings; documented policies; memos; directives; email; verbally; etc. 

Þ      Clause 5.1 does not require a ‘documented’ procedure. However, you must identify and document (e.g. process map; process flow diagram; etc.) the processes for business planning; quality planning; management review; internal communication; organization structure; etc. as part of your QMS (see clause 4.1). You must also identify what specific documents are needed for effective planning, operation and control of these processes (see clause 4.2.1d). These documents may include – a documented procedure; business plan; statement of policies and objectives; etc. 

Þ      Top management at each site must review process efficiency. This may include: 

Þ      Achievement of continual improvement objectives for identified product realization and support processes 

Þ      Optimization of the interaction of these processes 

Þ      Verification that these processes operate as an effective and efficient network 

Þ      Monitoring cost trends and benchmarking of key processes 

Þ      Note: effectiveness measures the extent to which planned activities (run rate) and planned results (objectives) are achieved? E.g., say you plan to produce and ship 1000 units a day with zero defects.  At the end of the week, the production records showed we achieved our planned activity of 1000 units per day, but fell short on our planned result, as we incurred a 2.5% defect rate and only hit a 90% on time delivery rate. 

Þ      Note: efficiency is the relationship between results achieved and resources used. Can we produce more units than planned per hour for the set amount of resources? Or can we use fewer resources than planned to produce the units.? Efficiency can relate to utilization of any resource – machine, labor, material, facilities, utilities, time, etc.  

Þ      Let us look at a simple example. Say one operator A can produce 100 good units per hour with 2% material scrap on a machine.  Operator B produces 105 good units with only 1% material scrap per hour on the same machine. Clearly operator B is more efficient in the use of time as well as material, both of which can be measured. Because there are many other resources to be considered, the measurement of efficiency can get fairly complex and requires a multidisciplinary approach involving production, engineering, cost accounting and other disciplines. 

Þ      Where some of clause 5 activities are performed off-site (e.g. at head-office), you must identify these off-site processes in your QMS and ensure that such processes comply with TS 16949 requirements. Evidence of compliance may include - a copy of their TS 16949 certification; TS 16949 internal audit results (of these processes) for the off-site facility; auditing these processes at the off-site facility. The expectation is to flow down to the off-site facility, the relevant TS 16949 requirements that you would have to implement, had you carried out the process at your own facility. 

Þ      The specific requirements for clause 5.1b through 5.1d will be discussed in the upcoming sub-clauses.