Understanding The ISO/TS 16949:2002 Standard 

5.6  Management Review  

5.6.1 General 

Top Management shall: 

Perform reviews of the QMS 

Conduct these reviews at planned intervals 

Ensure that the QMS continues to be suitable, adequate and effective 

Assess opportunities to improve the QMS  

Evaluate the need for any changes to QMS, quality policy and objectives 

Maintain records of management reviews 

5.6.1.1 QMS performance – these reviews shall include: 

All requirements of the QMS & its performance trends as an essential part of the continual improvement process

Monitoring of quality objectives (see 8.4.1)

Regular reporting and evaluation of cost of poor quality (see 8.5.1)

The above review shall be recorded and provide, as a minimum, evidence of the achievement of; 

Quality objectives specified in the business plan

Customer satisfaction with product supplied

5.6.2 Review Input 

Management review input shall include information on: 

a)     Results of audits 

b)     Customer feedback 

c)     Process performance and product conformity 

d)     Status of preventive and corrective actions 

e)     Follow-up actions from previous mgmt reviews 

f)     Changes that could affect the QMS 

g)     Recommendations for improvements  

5.6.2.1 Review input - Supplemental 

Shall include an analysis of actual & potential field failures and their impact on quality, safety or the environment.

5.6.3 Review Output 

The output from management review shall include any decisions and actions related to: 

a)    Improvement of effectiveness of the QMS and its processes 

b)    Improvement of product related to customer requirements 

c)    Resource needs 

Key Explanation Points and Tips: 

Þ      The purpose of conducting management reviews of the QMS is to gauge the health of the QMS. The review must determine QMS suitability, adequacy and effectiveness. Are the QMS resources and controls that were planned and implemented, suitable and adequate for the QMS to be effective in achieving customer and regulatory requirements; and in achieving quality objectives? Are changes needed to improve product, processes and use of resources?   

Þ      A process to administer Clause 5.6 would be appropriate as it has ISO 9001 standard specifies requirements for management review inputs, value-adding review activities and outputs. The process must address the frequency, schedule, quorum and agenda for review meetings to be attended by top management. Review specific requirements for management review at OEM customer or IATF websites. 

Þ      For the management review process itself to be effective, top management must plan the review of all agenda items with some regularity to gauge the health of the QMS and take timely action to change or improve any part of it, including the quality policy and objectives. To avoid problems on frequency and scope of review, an effective way would be incorporate QMS agenda items into regular monthly or quarterly operational meetings. Some OEM’s require management review to be held not less than once a year.  

Þ      Clause 8 provides the majority of the agenda information for management review. In addition to the items listed in 5.6.2; 5.6.1.1; 5.6.2.1, management review must also include – 7.3.4.1 summary of design and development measurements; 5.1.1 process efficiency.  

Þ      Under clause 5.6.1.1, all requirements of the QMS must be reviewed. The review of QMS deployment and performance might be measured through gap analysis for new systems and the results of internal audits for established systems. Management review must include the results of such analysis and audits. 

Þ      The agenda items in clause 5.6.2 will be discussed in detail under various other TS 16949 clauses as they come up. For example most of clause 5.6.2 agenda items come up in clause 8. Field failures (clause 5.6.2.1) will be discussed under clause 7.5.1.7. 

Þ      QMS objectives must flow from the business plan. The costs of internal and external poor quality as well as process metrics for all processes defined in clause 4.1.must be measured and evaluated against business plan objectives and customer satisfaction goals. 

Þ      Management review input should preferably be in summary form, showing QMS and operational performance measured against the business and quality plans, customer and regulatory objectives and goals. Appropriate actions must result from such reviews.  

Þ      Review decisions and actions must relate to improving products and processes or even creating new ones; providing more resources or perhaps improving the efficiency of existing resources; improving QMS controls; policies and objectives; and improving overall QMS effectiveness and customer satisfaction.  

Þ      Responsibilities and timelines should accompany these decisions and actions. The performance of these actions must be followed up at subsequent management review meetings.  

Þ      Performance indicators to measure the effectiveness of the management review process could include - achievement of quality objectives and improvement in customer satisfaction rating (see QMS objectives under clause 5.4.1 notes).   

Þ      Clause 5.6 does not require a ‘documented’ procedure. However, you must identify and document the management review process 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 this process (see clause 4.2.1d). These documents may include – a documented procedure; review schedule; agenda and action forms; etc., combined with unwritten practices, procedures and methods.  

Þ      Management review records must include topics discussed; decisions; responsibilities for corrective or improvement actions and related timelines; provision of resources; and follow-up actions from previous management reviews.