Process and Infrastructure for Qualification and Competency Maintenance of Auditors

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1 Process and Infrastructure for Qualification and Competency Maintenance of Auditors Best Practices from Automotive and Aerospace Industries for Application to PV Industry Alex Chong CEO, Plexus International

2 Development & Validation of Auditor s Competency The Automotive and Aerospace industries have successfully implemented both a process and an infrastructure globally for qualifying and maintaining competency of third-party auditors. What motivated the Automotive and Aerospace industries: Audits were producing inconsistent results. Companies were implementing Quality Management Systems in an inconsistent manner. Auditors were inconsistent in judgement and assessment.

3 Development & Validation of Auditor s Competency SOLUTION: Common process and requirements for auditor certification. Basic Auditor: ISO Aerospace: AS Define experience, training, and certification process. Automotive: TS Rules - IATF Define experience, training, certification process, and ongoing training.

4 Automotive Certification History In 1999, Chrysler, Ford and GM Automotive Task Force approached Plexus to help them develop two programs: 1. Auditor Certification Program 2. Supplier Implementation Program Goal: The development of quality systems that provide for continuous improvement, emphasizing defect prevention and the reduction of variation and waste in the supply chain.

5 Auditor Development Process (ADP) for Automotive Online Training Classroom Training (Based on case study model) Interview Post Assessment

6 Auditor Certification Program for Automotive

7 Automotive Auditor Development Cost Savings Cost Comparison from Classroom only to Online Training USD/3 yr. Cycle $12, $10, $8, $6, Cost of Auditor Development $4, $2, $0.00 Classroom Training Online Training

8 International Aerospace Quality Group Observing the development of the Auditor Certification Program for the Automotive industry, the International Aerospace Quality Group (IAQG) wanted to develop a auditor training/certification program for the Aerospace industry. 64 IAQG Member Companies, including:

9 Aerospace Auditor Transition Training In 2010, Plexus was selected by the IAQG to develop the IAQG-Sanctioned Aerospace Auditor Transition Training (AATT); a uniform global certification training and assessment program for all current 3 rd party Aerospace Quality Management System (AQMS) Auditors. IAQG-Sanctioned: 9100 AATT: Manufacturing 9110 AATT: Maintenance, Repair & Overhaul 9120 AATT: Distribution 9100/9110/9120 AATT Programs include: Pre Assessment Online Training Classroom Training Interview Post Assessment

10 Auditor Pass Rate The chart below represents Automotive and Aerospace Auditors with a minimum of 3 years auditing experience. Automotive and Aerospace Auditor Pass Rates Average Pass Rate 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 75% Automotive Auditors 1.5% 60% Aerospace Auditors Initial Exam before Training Exam after Training (1st Attempt)

11 Lessons Learned: Automotive and Aerospace Build a certification process: Common curriculum, common methodology, and common assessment process. Deliver globally in local languages. Involve industry subject matter experts (SMEs): Define common industry validatable performance objectives. Support development process: Make online training, exams, and results easy to access. Provide retakes and additional support as needed.

12 Supplier Implementation Program Executive Understanding Understanding Internal Quality Auditing Quality System Documentation Gap Analysis Planning for Implementation Statistical Techniques Developing Employee Training

13 Supplier Implementation Cost Savings Cost Comparison from Consulting Model to Training Model USD/Location $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 Implementation cost for average 100 person plant $10,000 $0 Consulting Model Training Model* *Using Plexus Train-the-Trainer Model

14 SAE Vehicle Electrification Certification Program For individuals involved in the manufacturing and maintenance of VE. Certified Vehicle Electrification Professional (CVEP) Objective: Recognize those individuals who possess the skills and knowledge to work as part of the multi-disciplinary teams in the field and associated industries. Result of Successful Completion: Certificate of Competency. Vehicle Electrification Fundamentals and Safety (VEFS) Objective: Provide training for those individuals who work on or around electrified vehicles to perform their tasks safely. Result of Successful Completion: CVEP Certification. Certified Vehicle Electrification Engineer/Scientist (CVEES) Objective: Validate mastery of knowledge in the science and design of all major VE systems. Result of Successful Completion: Certification of Specialty.

15 Improved quality, improved performance So, why go through all this effort to improve quality? 48% improvement in parts per million (PPM) defect rates. 38% improvement in on-time shipping performance. 23% increase in OEM market share. For every $1.00 spent, direct savings is $3.80. *Information based on an AIAG Quality Survey

16 Cost of Quality The Automotive and Aerospace industries are proof that there are cost savings in quality High cost associated with not properly implementing quality. Companies who focus on quality are producing safer, more durable, and better warranted products. Ability to use a 3 rd party registrar to certify compliance to an industry standard enables companies to reduce the cost of oversight. Industry suppliers can often avoid audits by multiple customers by being certified to an industry standard. The Photovoltaic industry Should benchmark against the Automotive and Aerospace industries to improve the PV industry based on the lessons learned.

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