Dyadem for Automotive |
According to the National Highway Traffic Safety Administration, automobile manufacturers recalled 24.8 million vehicles in the first 10 months of 2004. This number breaks the previous high of 24.6 million recalls set in the entire year of 2000.
Aon Global Insurance Services estimates that the cost for recalling an automobile model can be as high as $250 million – based on transportation charges, advertising costs, storage facilities, the need to inform distributors, etc. They base this estimate on the following figures - an average automotive recall takes about 250 days, and the daily cost of recalling an automobile model is about $1 million.
In an effort to reduce these recalls, the automobile industry has driven industry standardization in the quality systems used across the supply chain for product quality, reliability and safety.
ISO/TS 16949 is the resulting global standard that specifies quality management system requirements for suppliers within the automotive industry. It incorporates specific industry sector requirements including provisions for continual improvement, FMEAs for defect prevention, minimization of variation, and waste reduction.
Automotive engineers are using the FMEA methodology to gain a competitive advantage by improving their product and process quality. Realizing that a weak link in their quality process is controlling supplier quality, the major manufacturers are starting to require that their suppliers meet set quality standards. One method that the major manufacturers use to ensure that their standards are met by the suppliers is by analyzing and reviewing their suppliers' FMEA's.
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