Redefining Automotive Quality in a Rapidly Changing Industry

[Transcript]

[00:00:00] Jan Griffiths: This is the Auto Supply Chain Prophets podcast, and we are on a mission to bring you the latest insights and thought leaders leading the charge on supply chain transformation in our beloved automotive industry. This podcast is powered by QAD and AIAG. I'm Jan Griffiths, your host and producer. Let's meet your co-hosts.

[00:00:27] Jim Liegghio: I'm Jim Liegghio from AIAG.

[00:00:29] Terry Onica: I'm Terry Onica from QAD. Let's dive in.

[00:00:36] Jan Griffiths: Hello, and welcome to another episode of the Auto Supply Chain Prophets Podcast. Let's check in with my co-hosts. Terry Onica, what have you been up to?

[00:00:44] Terry Onica: Well, I'm gonna put a link in the show notes to a webinar that we just did with Moog Medical. Yes, Moog Medical. And the reason I'm so excited about it is they leverage three of our 24 essential supply chain process review to standardize their operations across their business.

Now, keep in mind, they leveraged our supply chain and quality standards and they achieved amazing results. So, I encourage everybody to listen to it. I won't be offended if you just fast forward to Jade from Moog and check it out. And if you're not familiar with the 24 Essential Supply Chain Processes, go back to Episode 37.

[00:01:20] Jan Griffiths: Yeah, it's great to see automotive practices filtering out into other industries.

[00:01:25] Terry Onica: It was great.

[00:01:26] Jan Griffiths: I think I told you I worked for Maytag for a while, and it was great to be able to bring the good things about—believe it or not—new program launch and PPAP. To bring that kind of process into an industry that was non-automotive, but also, the things that maybe were a little too much—you could leave them behind. And it's okay, 'cause you didn't have an AIAG.

[00:01:48] Terry Onica: And Jade mentioned, by putting quality, supply chain, and IT together to go through these processes, is what really made a change in them, because there was areas they weren't understanding each other. So, it put 'em on the right track, so that was really exciting.

[00:02:01] Jan Griffiths: Yeah, that's great. Jim, what have you been up to?

[00:02:04] Jim Liegghio: Well, Jan, we were down—you and I and Terry were all down last night—at the Wayne State University Supply Chain Management Advisory Committee meeting, and I thought that was just really fun. It was awesome, actually.

I love that Lori brought the students in to kind of introduce themselves that are on the GSCMA board—engaging over the board there. And then, the students came in for networking after our meeting was over. So, I thought that was just really cool.

It reminds us why we do what we do in a lot of ways, and then helping bring some of these new students and professionals into the world and give them an opportunity to network and talk—so that was really cool.

Beyond that, we have our Tomorrow's Leaders Today pre-Executive Leadership Seminar next week with Wayne State—it kicks off on the 15th, so we're really excited about that.

And then, last but not least, we have June 17th—our Annual Supply Chain Event. It'll be held at Elevate in Detroit, a new venue for us this year. So, we're getting registrations going for that, so that'll be an interesting conference for us.

[00:02:53] Terry Onica: I'll be leading a panel at the summit for Supplier Relationship Management, so I'm super excited about that. I got a couple industry executives that I'm gonna interview.

[00:03:01] Jan Griffiths: Wow, you got a lot. It's all going on. Well, my life has been media interviews.

[00:03:09] Terry Onica: You're on the news all the time with regards to tariffs.

[00:03:11] Jan Griffiths: I know, I know. So I've been doing a lot lately with Roop Raj on The Pulse on Fox Two, and I really enjoy working with him. He's unbelievable—professional, smart guy, knows what he wants, gracious.

I just love being in a different world, 'cause I think you can learn a lot, right? When you're in a different industry, a different world—and to see how they operate and how fast and efficient they are at turning around that program. Unbelievable. So, that's what I've been up to.

But I mentioned quality, and I was thinking about tariffs—I'm gonna think about tariffs all day. And I think about the impact on the supply chain, and something that we're not really talking about, is the impact on quality. When people are moving supply chains, they'll miss something. They'll miss something because the part that they sourced from supplier A is not the same as the part they get from supplier B, even if they use the same tooling.

And we've all been in automotive long enough to know that, boy is that the case, right? We got lessons learned like you cannot believe. So, I think it's really important that we bring quality into the discussion because let's face it, quality is a part of supply chain. You might not wanna admit that, but it is. It's a critical part of making sure that we have the products that we need in the right quality, the right quantity, at the right time.

So, I can think of nobody better to talk about quality on this program than the man who is the Manager of Supply Quality and Development at General Motors, and he is also the Chair of the AIAG Quality Steering Committee. Scott Trantham, welcome to the show.

[00:04:54] Scott Trantham: Thank you, Jan. It's great to be here and a pleasure to be on the show.

[00:04:58] Jim Liegghio: Alright, Scott, we're gonna get right into it. And again, like Jan said, thank you so much. This is so important for our audience, right? We're focused on getting stuff where it needs to be at the right time, but also everybody hopes their car starts right in the morning and everybody relies on that. So quality is critical in automotive manufacturing. I think it's something we take for granted if we can say it that way.

So, really, let's start out with a question: what does the current landscape look like for automotive quality at present? We hear a lot about tariffs in supply chain these days, but what's going on in quality? What are the most urgent front of mind topics?

[00:05:27] Scott Trantham: Well, Jim, the quality management system in the automotive industry is under a lot of significant change and transformation right now. When you think about the new technological advancements that we've got out there with EVs and AVs and the complexity in those vehicles. You've mentioned it already, the very complex supply chains and the quality standards we need to maintain across all those supply chains.

Then there's sustainability. There's a lot of pressure out there to have sustainable practices in our manufacturing environments and include recycled materials and have green manufacturing footprints. Of course, there's the regulatory compliance that we need to be meeting as well for safety and environmental regulations. And that's across different regions around the world.

And then, ultimately, it comes down to consumer expectations where they're looking for higher quality, safer, and more reliable vehicles.

[00:06:24] Terry Onica: So, Scott, what are some of the initiatives going on right now that you're looking at or working on in the quality steering committee?

[00:06:31] Scott Trantham: Well, you know, we've got a lot of our core tools that we're making sure that they're up to date. We have some CQI assessments that are going through some updates and creating some new ones to help the industry make sure that they have the best processes and controls in place. And just, ultimately, just trying to keep our pulse on the industry to make sure that we are delivering to them the tools they need to be successful.

[00:07:00] Jim Liegghio: In terms of the core tools, Scott—obviously critical. They're called the core tools for a reason, right? Can you tell us a little bit more about those updates and the basic timing expectations around those, and maybe why those updates are so important?

[00:07:13] Scott Trantham: Sure. Right now we're going through an update on the SPC manual. We're in collaboration with the VDA on that, so that we can have one industry standard as opposed to two.

That's similar to what we did back in 2019 with the FMEA. We did a collaboration with the VDA on that one, and that was, like I said, released back in 2019. We're gonna continue on with MSA, after we get the SPC done.

Last year, we put out a new APQP and Control Plan manual—those were in need of update. We wanted to incorporate lessons learned, make sure that we included areas for new technologies as it was related to EVs and autonomous vehicles. And with a control plan, we wanted to make sure that we had considerations in there for highly automated manufacturing environments—like our semiconductor suppliers.

We separated those two documents so that we could make quicker updates and have more detailed content, especially in the control plan.

[00:08:19] Terry Onica: The industry's going through a lot of transformation. We got the electric vehicle, which a lot of new parts are coming in, and also we've got a lot of software now in the vehicle.

So, we have all these new parts that maybe we haven't quite had to deal with as much in the past—that's new. So, how is the steering committee managing this, or what are some of the things that quality professionals should know about dealing with these types of new parts that are coming into the industry?

[00:08:44] Scott Trantham: So, as it relates to the software, that's a good question because we just released a Software QA Guidance manual back in January of this year, and we're already looking to make an update to it. So, we're doing what we can to stay on top of those new changes that come day in and day out as it relates to software, so that we have the best quality practices and quality assurance items that we can give to the suppliers that are providing that software to us.

[00:09:16] Jim Liegghio: Scott, you've been a long-term contributor to AIAG, and volunteers are the lifeblood of what we do, right? We are very super appreciative of your volunteerism. What do you personally find most fulfilling about your role within the AIAG Steering Committee? What are some of the biggest challenges you and the team face, but really the question is around—how do you feel about your role? What do you find fulfilling when you're giving back to the industry?

[00:09:37] Scott Trantham: So, I've been on the Quality Steering Committee since about 2016, I believe—17, somewhere around there. So, it's been a while. It's participating in those volunteers that you're talking about, Jim, that work on these core tool updates on these assessments that we create that really will shape the automotive industry for the years to come.

And then, it gives a good, solid foundation for the quality professionals that will begin their careers at some point here—and knowing that we've given them a foundation and the foothold to be able to be successful from day one.

Now, the challenges—is really, how do we keep up with the new technologies? How are we going to keep up with the software, maybe even the ESG requirements that are out there. But the other challenge, really, is making sure that we have enough volunteers.

I volunteered for the APQP and control plan document updates. That was a year and a half of about meetings—about one and a half to two hours each week on both documents.

So, it takes a lot of time out of your already busy day to be a volunteer. But when we have passionate volunteers that come in and help work on these tools, we will always have great outcomes in those tools—and the best ones available for the industry.

[00:11:05] Jan Griffiths: I have a question for you, Scott, about APQP. How do you make sure that the tier ones and then the tiers below them are actually following APQP?

[00:11:16] Scott Trantham: Well, you know, the APQP document is based on gated management, and in that gated management we put the onus on the tier ones to make sure that their tiered suppliers are checking and fulfilling all the requirements within the APQP manual.

[00:11:31] Jim Liegghio: Scott, APQP, Control Plan—wow. It's been over a year since the launch, which I cannot believe. I mean, it was a huge deal here at AIAG. Again, thank you and the team so much for the work you put into that project.

Obviously, critical core tools that were ready for update—and a very timely update. The gated management process, all of that—I just can't believe it's been 13 months since that launch.

Thanks for illuminating the timeline on MSA and SPC and the alignment with the VDA. So that's really exciting that we're picking back up with that alignment, we're picking back up with the core tools updates.

Part of my role here is overseeing customer engagement in the customer service areas. That'll be a nice big wave of activity for our team, so definitely appreciate the update on all the core tools.

Where do you really see the future of automotive quality headed? What keeps you up at night? Or conversely, what do you get the most excited about when you think of the future—and that keeps you up at night?

[00:12:21] Scott Trantham: Sure. As far as the future is concerned, we're gonna have more and more software, and it's gonna become more comprehensive and complex.

So, as we've already talked, there's gonna be a big need to make sure that we have quality assurance practices in place for that.

I look at it, and we're going to have data-driven quality management systems, where we're gonna have some real-time monitoring—proactive solutions available to help improve consistency and reliability.

Again, focus on sustainability—just making sure that our vehicles are environmentally friendly and that we are using sustainable materials as we go forward.

Of course, electrification and autonomous technologies—how are we going to face those challenges as they relate to quality?

There's going to be something new in each one of those next vehicles that we're gonna have to make sure that we comprehend in our standards and our documents.

And then, how can we use, possibly, digital as a way—like AI or machine learning—to help elevate the consistency of the manufacturing processes for our vehicles?

[00:13:27] Terry Onica: Speaking of a lot of technology, in MMOG/LE, which is the standard for delivery in automotive, we require that you are using your ERP systems, EDI barcoding, a lot of technology—we want it automated.

I know today, in the IATF 16949, it doesn't really say you have to have an automated quality management system. Do you think in future versions, you might suggest that they do have an automated system? And if not, what do you think would be the benefits for the supply base to really automate internally their quality management system?

[00:14:10] Scott Trantham: That's a really good question, Terry. So, I think it's probably a great idea to look at where we've come from so many years throughout the industry. We have so many abilities to automate and do things in a more practical way.

I think there's a lot of benefits from it. You can have real time tracking of your issues, nonconformances in your corrective actions, gives you better visibility.

Not only that, you can improve your accuracy because that way you're not having the human error element of entering information into manually. And then it will streamline some of your quality management system processes, such as your document control, audit, and training management.

You could have automated alerts and it would enable faster identification and resolution of issues, better and more comprehensive reporting capabilities, and perhaps a dashboard that can show you the health of your quality management system.

And then, it also would help make sure that we're on track to meet our regulatory requirements and industry standards.

[00:15:16] Terry Onica: And you know, you mentioned AI—wow, that is a very promising technology. And I often say on this show, if your information is in spreadsheets or Word documents all over the place, you'll never be able to perform AI.

And I think AI could do so much for quality. When I think about that, often I'm like—we really need to have people start thinking, you need to automate your QMS.

Even if the standard doesn't mandate or recommend that you do it right now, you should just do it, 'cause it's good for good business.

[00:15:46] Jim Liegghio: Yeah, and what I'm hearing is the opportunity for automation—and Scott, some of the challenges you mentioned with EV and autonomous vehicles, and some of the new kinds of worlds we're gonna be living in.

And what I'm hearing is an opportunity to get people interested in a path—and a career path—in automotive quality management.

I'm sure that, like any other kind of niche part of the business, that's a challenge: getting people excited and interested in pursuing a career path in automotive quality management.

Do you see it the same way, or is it... are people banging the door down to get into automotive quality? What are some of the enticements you guys are using to bring along the next generation?

[00:16:18] Scott Trantham: Well, I've been in quality for a long time. I actually love it. Having a quality mentality is just something you need to have to be able to succeed.

You know, you're gonna solve problems, and there's a good feeling at the end of the day when you do that.

You know what—I think it's making sure we communicate to those young people, or the new people that want to get into this—the quality side and our quality career.

Give them our experiences, what we've learned over time, and hopefully that entices them to start a career in quality. And being in it as long as I have—which is going on 42 years here.

[00:16:56] Jim Liegghio: I love that. I love the fact that you mentioned the satisfaction of solving a problem. Just today, we've got an effective problem-solving class going online right now for a group of automotive distributors—actually, it's a dedicated class.

So, it's interesting to me that the satisfaction can come from that problem-solving mentality. And like you said, having a quality mindset goes such a long way in the industry.

[00:17:16] Scott Trantham: Let me add to that a little bit. Here's the other piece of that—not only solving problems, but knowing that you've taken this brand-new part for a new vehicle program, you've walked it through that APQP process, and then you launch, and then you see that vehicle that you've launched succeed, and customers rave over it. That's really the best part about this.

[00:17:39] Terry Onica: Scott, in your career—speaking of, you know, looking at the quality process—we often talk on this show about un-siloing quality, supply chain, and IT.

Have you seen where it has really helped, in your past experience, to really have all three groups working together? To really make sure everybody understands what everybody's doing—and to really leverage common practices across the organization?

[00:18:08] Scott Trantham: I would say yes—creating a quality mentality throughout the enterprise is paramount.

I like to call it a quality culture. Once you create that culture, it makes it easier for everyone to get on board with you, and quality is everybody's responsibility.

It may be a little different based on your role, but it still has to be done with quality. So, embracing a quality culture is just a foundation for excellence for the next generation of our quality professionals.

[00:18:41] Terry Onica: And I see that through my work with MMOG/LE. When the standard first came out, we looked at delivery, right? So, we were behind IATF 16949, and I always tell the students in my MMOG/LE training class: Bring the quality manager into it, because they know how to assess processes. They know how to look for things—documentation, make sure it's good evidence.

So make sure you're bringing them into the process, and make them understand the delivery side 'cause ultimately, in IATF 16949, the quality professional or manager is responsible for the scorecard.

So I think it just helps to break down silos. So I'm really glad to hear what you had to say.

[00:19:20] Jan Griffiths: Well, we've covered quite a bit today. Scott—over 40 years of experience in the industry, chairing the AIAG Quality Committee.

One piece of advice, one thing that you would like to share with all the quality professionals in the automotive industry out there—what would that be?

[00:19:42] Scott Trantham: I guess it would be—you know, quality isn't a sometime activity. We have to live it continuously. We need to be embracers of change. It's going to happen.

We need to make our decisions based on facts and data, because with those decisions, we will have better outcomes when we do that.

And I think, you know, finally—a selfish plug here: if you're given the opportunity to volunteer on an AIAG project, take it.

Because at that point, you're going to be a part of the quality transformation for the automotive industry.

[00:20:18] Jan Griffiths: I totally agree with you. It's about your legacy. As you progress in your career, you have to think about your legacy—and take all that information that you've learned and give something back. And obviously, you do a wonderful job of that.

So, Scott Trantham, thank you so much for joining us today.

[00:20:37] Scott Trantham: Thank you very much. It was a pleasure to be here.

[00:20:39] Jan Griffiths: We love to hear from our listeners, reach out to any one of us, our contact information is in the show notes. And if you want to dive deeper into our content, check out our website at autosupplychainprophets.com.