Navigating the 6th Edition IATF Rules

In this episode, we dive into the key updates in the 6th Edition of the IATF Rules with Paul Blattner, Intertek's Global Transportation Manager for Business Assurance. 

Listen as we unpack the significant changes in the audit cycle, certification structure eligibility, and remote auditing provisions. Learn how these modifications will impact organizational planning and the overall audit process. 

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Transcript

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Natalia Farina 00:01
Hello and welcome to the Intertek Assurance in Action podcast! My name is Natalia Farina, and I'm the Global Marketing Manager for Business Assurance at Intertek. I'll be your host for this episode.
Today, we're diving into the key changes introduced in the 6th Edition of the IATF Rules. Joining me is Paul Blattner, the Global Transportation Manager for Business Assurance at Intertek, who has extensive experience in automotive quality management systems. Welcome, Paul!

Paul Blattner 00:32
Natalia, thank you. It's good to be here.

Natalia Farina 00:35
Awesome. So, start by discussing the most significant updates in the 6th Edition of the IATF Rules. What should organizations be aware of?

Paul Blattner 00:46
Well, for changes, I mean most of the changes I think most people are aware of that replies to Intertek the CB, but there are changes that apply to the client.
So, to understand some of the rules we will go through a list of them. One of the bigger updates is the audit cycle.
The previous audit cycle used to be able to schedule that 6, 9 and 12 months, but now they've changed to just an annual frequency. So, no more six or nine months, only every once a year.

Natalia Farina 01:19
Wow. Yeah, that's quite a shift. How will this impact organizations' planning and scheduling?

Paul Blattner 01:26
Yeah, I think it helps both of us really.
It should allow organizations a little more time to work with our scheduling department and confirming the dates. Would also probably be known here is that with this tolerance that we have of ± 3 months, there is no forgiveness anymore, I guess.  We used to be able to suspend the certificate if we couldn't get you in that window, but if we cannot get you in the ± 3 month window, we are required to withdraw the certificate if we go over the plus three months, so that's pretty significant.

Natalia Farina 02:04
Definitely. What about changes in the certification structure eligibility requirements?

Paul Blattner 02:11
Not a lot here, a few little changes here and there.
There was a sanction interpretation that went out a year, a year and a half ago that is now allowing replacement parts which would be aftermarket to be certified to IATF.
So, that's relatively new.

Natalia Farina 02:30
Ok, that sounds great. Can you explain why this change was made?

Paul Blattner 02:36
Well, it gives organizations who manufacture automotive parts, but maybe not directly to an OEM or a lower tiered Supplier.
It gives them the ability to get certified by IATF, which is a proven quality management system that drives improvement and should ultimately give you cost savings if implemented correctly.

Natalia Farina 02:59
Alright. Now, this new edition has also introduced changes regarding the structure eligibility of manufacturing sites with extended sites. Could you elaborate on what these changes are and how they impact the certification process?

Paul Blattner Intertek 03:18
Yeah, sure.
Extended manufacturing sites have been allowed. The big change now is that they've shortened the distance.
We've had clients that go out of state or even different countries and say it's an extended site. An extended manufacturing site is a manufacturing building that there's a main site and then they maybe they got too big so that they put up another building or least another building and they do only manufacturing in there.
All the management is that the main site, so that's what an extended site is.
And now they've said, OK, it has to be less than 10 miles from the main site, or no more than 60 minutes driving distance, which may sound a little confusing, but I think they put that 60 minutes in there due to like border crossings and things like that. So, it can be no more than 60 minutes away and no more than 10 miles away.

Natalia Farina 04:20
Understood. The last change in structure eligibility pertains to corporate schemes. Could you talk a little about this and explain how it impacts the certification process for organizations?

Paul Blattner 04:34
So, yes, there is some significant changes with corporate schemes.
Corporate schemes have always been in the rules, but they're enhanced rules now in a corporate scheme by name, it has to consist of at least two manufacturing sites with the same common quality management system.
By the new rules, you have to have an established processes, centrally defined, structured and controlled.
They need to be monitored with a common set of process parameters.
The implemented substantially the same manner across all manufacturing sites and then you can have localized work instructions level threes, but you're procedures and your manual, all your level ones and levels twos must be across the board for all sites.
So, you also need to have an identified central location where the quality management system function resides that is responsible for defining, structuring and controlling the common quality management system.
And then lastly, the thing to know is no matter how many sites are involved in a corporate scheme of 15% reduction in mandates is the only percentage allowed.
Now the old rules it depending on the number of sites you could have up to a 40% reduction, but it's a maximum 15% now.
So basically what we're hearing here on these rules is a common quality management system across the board using the same measures, the same processes and in things like that, which it's kind of new because the old ways some of the companies would set up their own processes by plant and now it has to be common across all sites. So that is a big change in the rules.

Natalia Farina 06:21
That's interesting. I've also heard that there are updates regarding remote support locations. Could you please elaborate on that?

Paul Blattner 06:30
There's been a few changes in the remote support locations.
For instance, surveillance audits for standalones, where there is no product or material handling, which means you know it's a sales office design center purchasing, not a warehouse, there is material handling there that we can do remote audits on surveillances.
However, per the rules, we have to stagger it every other year so we can be on site one year off site the next year.

Natalia Farina 07:03
How do these remote auditing provisions impact the overall audit process?

Paul Blattner 07:09
Well, when we do a remote audit, it helps us in scheduling and reduces the logistic challenges and there's our cost associated you know with travel and hotels and things, so it saves our clients’ money too.
However, it also requires CB's to ensure the remote technology used is suitable for effective audits, which means we will need to test every time before we would go on site to make sure that you know we have the wireless where we need it.
You can walk around, you know, the an office or whatever and be able to do teams meetings or whatever we need to be able to perform that remote audit.

Natalia Farina 07:49
Alright, thank you for walking us through that.
Now, let's move on to changes in the contractual requirements. What are the new obligations for clients?

Paul Blattner 08:00
There, there's not a lot of new new. They've added some things here, but mostly it's all been required.
Clients are to provide more detailed information related to previous and existing IATF certification before contracts are signed.
Quality management systems related to consultants are prohibited from being physically present or participating in any way during audits.
Obviously this is to maintain the independence of objectivity of the audit, you know itself. Consultants have always kind of been a no no in the in the IATF scheme, but it’s very clear that they can help implement a system, but they cannot participate in the audit whatsoever.

Natalia Farina 08:46
Yeah, well, that seems to be enhancing transparency and reducing conflict of interest, right?

Paul Blattner 08:51
Exactly it should ensure that the audit process remains unbiased in its focus on evaluating the QMS without any external influence.
I also want to make note of another change for our clients.
The rules have added additional time in. What additional time means is we calculate our man-days for audit based out of the rules and it's on the number of employees. 
So, for the new rules we have to add a half a day for every audit for audit preparation and planning.
And, then, if there's a minor nonconformance or you know, however, the work from the previous audit, we need to add minimum 1/2 hour up to an hour to additional time on-site to review and verify it blows out those previous corrective actions.
And then also, if there's four IATF OEM customer performance, quality and delivery performance, we need to add time per the chart that was found in the rules and the 5.2Q area of the of the rules.
So, that's based on how many OEM you supply to, how many issues there are.
There's a calculation for additional time there, so I just want everybody to be aware that that's a pretty significant new requirement: additional time.

Natalia Farina 10:13
Great call out, thank you.
Finally, can you tell us about the changes regarding the notice of changes by a client?

Paul Blattner 10:21
The clients are required to notify the CB, which is Intertek, of any imminent changes that could affect the QMS capabilities, you know, which would fulfill your IATF requirements.
This could be changes in contract addresses, relocation, outsourcing, signing contracts with other CB, and there's a few more, but those are the key areas there.

Natalia Farina 10:46
Right. Yeah, well, that adds a layer of proactive communication between the client and the certification body, right?

Paul Blattner 10:55
Yeah, it should ensure that you know the certification body is always aware of significant changes allowing us to make the necessary or take necessary action to maintain the integrity of the certification.

Natalia Farina 11:07
These updates seem quite comprehensive. For organizations looking to navigate these changes smoothly, how can Intertek assist?

Paul Blattner 11:16
Intertek offers a range of services to help organizations comply with the new IATF 6th Edition rules.
Our experienced auditors and consultants can provide guidance on implementing the necessary changes to your quality management system.
We offer pre-audit assessments, gap analysis, comprehensive training programs to ensure your team is fully prepared for the new requirements.
All Intertek provides certification services that include a thorough review of your existing processes, identifying areas of improvement, and helping you implement the necessary changes to meet the IATF standard.
Additionally, our global presence ensures we can support you no matter where your operations are located.

Natalia Farina 12:00
Well, yeah, it's great to know that organizations have a reliable partner in Intertek to navigate these changes
Thank you so much, Paul, for breaking down these key changes and explaining how Intertek can help.

Paul Blattner 12:15
Absolutely.
It's been a pleasure discussing.

Natalia Farina 12:18
Awesome!
Thank you to our listeners for tuning in to this episode, where we covered the key changes in the IATF 6th Edition Rules. Stay tuned for more episodes as we bring you the latest updates in quality management and industry standards. Until next time!