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Well-executed Advanced Product Quality Planning (APQP) is a cornerstone of most successful product launches across a wide spectrum of manufacturing companies today. And yet, many businesses continue to forgo this best practice entirely in favor of inconsistent, manual processes (paper, spreadsheets) or worse, they do not use APQP at all.

The good news is that there has never been a better time to adopt APQP processes given the variety of software tools available now to support firms of all sizes.

A brief bit of history before we dig deeper into the subject.

APQP was first developed in the late 1980s by GM, Ford, and Chrysler as a response to the increasing quality threats each faced from foreign competition. The first official printed version was released in 1994 under the umbrella of the Automotive Industry Action Group (AIAG). The process was implemented at varying degrees at the U.S. automakers over the next 15 years, and by the early 2010s was formalized into online and electronic systems to facilitate communication across their large and global supply bases.

Other industries like aviation, medical, and electronics have also launched APQP standards because the basic framework scales well to any type of manufacturing.

While it is true much of the APQP implementation was first driven by large OEMs with complex products, the principles and discipline inherent in the process are now available to businesses of all sizes given the range of software solutions currently in the market.

ERP-Based Options

Most of the popular Enterprise Resource Planning (ERP) systems in use today have the capability to add APQP modules into a company’s existing IT and data structures. You may even find the functionality already exists within the system, but no one is taking advantage of it. You are in luck if this is the case, but training and leadership commitment are still needed (more on that later).

More likely, these vendors will want to charge you to add the APQP capability to your ERP. Given the costs involved there will be scrutiny from your leadership and finance teams on the ROI. For those discussions, look at the cost of poor quality on your recent launches. Most of the time the historical data will show a quick payback on APQP implementation.

Clearly the ERP option is best for larger companies with enough IT staff to deliver the APQP solution.

QMS Software Options

Tapping into the complexity of an existing ERP system can be complicated and time consuming, so another alternative to consider is whether the functionality exists or can be added to your existing quality management system (QMS) software. Many companies today have separate QMS and ERP systems. A QMS based approach may be a less expensive choice from both the software licensing and IT integration perspective.

 A lot of QMS vendors offer this capability simply because it meshes so well with the other requirements of launch including FMEA/Control Plan development, product approval, and testing.

The costs for QMS Software will vary based on the number of suppliers/users for your product, and many will allow you to add licenses incrementally to keep your investment lower. This option works best in medium or smaller companies.

Standalone Software Options

If the investment to integrate APQP into your existing ERP or QMS is still too high or they do not provide this module, look to standalone systems which are cloud-based to mitigate much of the development and security concerns from your leadership.

There are many options to choose from in this space, and most allow you a great deal of flexibility. You can start out small and integrate your most critical suppliers first before expanding to all suppliers. These solutions may also provide secondary functionality for PPAP management.

Many smaller companies are using standalone software solutions for their first foray into APQP.

Implementation Considerations

Regardless of which software solution you decide to implement, there are some critical considerations to manage:

• Leadership Commitment – Every corporate initiative of this scale requires commitment from company leaders to be a success. APQP is no different. Management at all levels must voice support, value the data, and integrate the process into the company DNA. Senior leaders must hold everyone accountable for the discipline and the results.
• Cross-Functional Support – APQP, by definition, is a cross-functional process given the deliverables cut across procurement, engineering, manufacturing, and quality teams to name a few. Many APQP implementations have failed for lack of support from one or more functional organization. Remember that the goal of APQP is to integrate suppliers seamlessly into the product launch process. All stakeholders ultimately have ownership in the supplier relationship.
• Product Development Process Integration – the best APQP processes are integrated into a company’s existing production development process. Every gateway review or checkpoint should include APQP deliverable reviews.
• Embrace the Red – When you begin to implement APQP you will find uncomfortable moments where suppliers and internal stakeholders declare a deliverable Red when you need it to be Green to pass through a gateway. This is not a failure. This is the team communicating to you in a transparent way early in the launch phase when you can fix problems most efficiently. Embrace these moments and thank the team for their honesty. And, of course, collaborate proactively to make it a true Green!
• Keep it Simple – Most of these software packages will allow you to implement a range of APQP deliverables. You can start with a handful or use the full AIAG specification. If you have no history of APQP, scale back the number of deliverables you will use to focus on the critical items. You can always add later, and this will help ensure the initial success of the project. Remember, you are in control of what you measure.
• Training is Required – No matter which solution you choose, budget for training with internal stakeholders as well as supplier users. The best software packages feature intuitive user interfaces, so this can be an important selection criterion to help minimize training needs in the future.

APQP in Action

APQP success stories are plentiful across industries. Consider the case of an OEM manufacturer poised to launch the same product in multiple locations globally. With different suppliers and launch teams in each region, they used an automated APQP system to consolidate status quickly and efficiently so lessons learned in one region could be seamlessly applied in other regions. The APQP system provided the OEM measurable savings in quality and cost – easily justifying the upfront investment.

Summary

No matter the size of your company, APQP systems provide a tool to drive internal and external communication in real-time. With available solutions in every price range, APQP should be an essential part of your product launch process.