Abstract
Taking up the case of automotive manufacturing, where quality issues are paramount, this chapter focuses on the harmonized automotive industry-specific quality management system (QMS), ISO/TS-16949, to which the multiplicity of QMS standards prevalent till the 1990s finally gave way. Its quality signalling function and facilitative role in moving up the supply chain are the major factors motivating firms to adopt this standard. Analysing the international and inter-regional concentration of ISO/TS-16949 certificates unravels how these changes have been related to the automotive industry dynamics. For the top certifying nations—China, India and Brazil included—these certificates and ‘cars and commercial vehicles’ produced are highly correlated. A moderate-to-high worldwide growth of this certification is probable in near future with gaining popularity among Tier-2 suppliers to four-wheeler vehicle manufacturers and for two/three-wheeler automotive production. The Indian evidence indicates a sizeable proportion of car and commercial vehicle plants being ISO/TS-16949 certified and a high certification incidence among large and medium–large auto component firms. Considering ample potential benefits for small and medium enterprises (SMEs), advisory and financial assistance for ISO/TS-16949 certification has been argued for.
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- 1.
The vehicle industry has regionalized production—not as globalized as electronics and textiles; however, it is dominated by a small number of MNEs which generally produce in all major markets (Stanford 2010); apart from having significant inter-sectoral linkages, for some economies—like Japan, Germany, Canada, Korea and Spain—the automotive sector contributes much to the exports, employment and GDP directly (p. 385).
- 2.
Of these, China and India had 328213 and 29574 certificates, implying 29.53 % and 2.66 % global shares, and the 1st and 7th ranks respectively. Incidentally, the number of these certificates globally fell by 0.6 % in 2011 over 2010.
- 3.
There are specific QMS for medical devices (ISO-13485) and petroleum, petrochemical and natural gas (ISO/TS-29001) industries too. There are special ISO-9001 guidelines for education (IWA 2) and local government (IWA.4).
- 4.
Source: www.iatfglobaloversight.org, accessed August 30, 2013.
- 5.
A QMS certification (registration) is usually valid for 3 years, and may be renewed. It being plant-specific, multi-plant firms may obtain multiple certifications—for identical or different QMS standards across plants.
- 6.
The data reported in Table 6.1 are for the number of sites covered by single/multiple-site ISO/TS-16949 certificates.
- 7.
According to Stanford (2010), during 2004–2009 in the US, the vehicle sales fell dramatically while the ratio of net imports to domestic sales increased to above one third; North American vehicle producers’ share of total vehicle sales in North America dropped from 55 to 43 %. Their loss of regional and global competitiveness is primarily due to the perception of their less innovativeness and appeal in technical and design features, further reinforced by the impact of consequent declining profitability on research and innovation.
- 8.
The ‘public versus private transport’ policies would influence indirectly via the growth and pattern of road transport, as any discouragement to private transport may adversely affect the demand for automobiles.
- 9.
See e.g. Pradhan and Singh (2009).
- 10.
- 11.
IBEF (2010) estimates about US$ 20–25 billion auto component production outsourcing to India by 2015; also India’s share in global auto components market is expected to rise from 0.9 % in 2008–2009 to 2.5 % in 2015.
- 12.
However, the financial year 2012–2013 has been marked by overall near-stagnancy, with production growth of 1.20 % for all vehicles and the exports having negative growth (− 1.34 %). Source: News > View > Auto Industry End the Year Almost Stagnating, dated April 10, 2013 (www.siamindia.com).
- 13.
Source: Ministry of Commerce Imports and Exports Database, Government of India.
- 14.
We may mention that in India the National Accreditation Board for Certification Bodies (NABCB) is a member of Quality Management System Multi-lateral Arrangement of Pacific Asia Cooperation (PAC) and International Accreditation Forum (IAF); thus the QMS certificates issued by the NABCB accredited bodies are recognized globally among the member countries of PAC and IAF.
- 15.
According to IBEF (2010), there are about 6400 total auto component producers in India (p. 5).
- 16.
As per ACMA’s 2006 publication ‘Buyer’s Guide,’ in 2005, about half of ACMA-members then had this certification.
- 17.
PRNewswire-USNewswire, ‘Mahindra Joins International Automotive Trade Association’, February 3, 2013.
- 18.
According to Internet sources, under corporate site certification, each site receives a separate certificate, with a common Certification Body certificate number plus letter suffix, e.g. 115A, 115B, 115C, etc.; if a single corporate site loses its certificate based upon the performance issues, then all the related corporate sites also lose their certification.
- 19.
ACMA (2010), ‘ACT now,’ August (p. 6), Automotive Component Manufacturers Association of India, Delhi.
- 20.
Hindustan Times, September 22, 2011, p. 19.
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Singh, N. (2014). Automotive Industry Response to Its Global QMS Standard ISO/TS-16949. In: Das, K. (eds) Globalization and Standards. India Studies in Business and Economics. Springer, New Delhi. https://doi.org/10.1007/978-81-322-1994-1_6
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