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Automotive Industry Response to its Global QMS Standard ISO/TS-16949

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  • Singh, Neelam
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    With increasing globalization, the intense competition and customer-pressure have spurred many producers from developing/ emerging countries to adopt the best management and organizational practices. The quality issues are paramount for automotive manufacturing. The multiplicity of Quality Management System (QMS) Standards prevalent till the 1990s finally gave way to development of a harmonized automotive industry-specific QMS, namely ISO/TS-16949. This paper analyzes the major factors motivating firms to adopt this Standard: its quality signaling function, especially in international business, and facilitative role in moving up the supply chain. We investigate the inter-national and inter-regional concentration of ISO/TS-16949 certificates and relate those changes to the automotive industry dynamics. Among 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 its gaining popularity among Tier-2 suppliers 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. We suggest the creation of a Centre to encourage and prepare SMEs and provide financial assistance for ISO/TS-16949 certification.

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    Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 51342.

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    Date of creation: 09 Nov 2013
    Handle: RePEc:pra:mprapa:51342
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    1. David Bailey & Alex de Ruyter & Jonathan Michie & Peter Tyler, 2010. "Global restructuring and the auto industry," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 3(3), pages 311-318.
    2. Jaya Prakash Pradhan & Neelam Singh, 2009. "Outward FDI and Knowledge Flows: A Study of the Indian Automotive Sector," Institutions and Economies (formerly known as International Journal of Institutions and Economies), Faculty of Economics and Administration, University of Malaya, vol. 1(1), pages 156-187, June.
    3. Terlaak, Ann & King, Andrew A., 2006. "The effect of certification with the ISO 9000 Quality Management Standard: A signaling approach," Journal of Economic Behavior & Organization, Elsevier, vol. 60(4), pages 579-602, August.
    4. Jim Stanford, 2010. "The geography of auto globalization and the politics of auto bailouts," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 3(3), pages 383-405.
    5. John Sutton, 2007. "Quality, Trade and the Moving Window: The Globalisation Process," Economic Journal, Royal Economic Society, vol. 117(524), pages 469-498, November.
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