Powering Performance

The Automotive Industry Action Group (AIAG) recently issued a call-for-action to all companies within the automotive supply chain to become fully engaged in Conflict Minerals reporting. “Your participation is critical if the industry is to achieve a transparent, conflict-free mineral supply chain, and this means supporting not only your direct customers’ requirements, but also ensuring your company’s compliance with the U.S Securities and Exchange Commission (“SEC”) conflict mineral’s rule, as applicable,” says the invitation.

On August 4, 2015, AIAG’s Conflict Minerals Briefing IV provided a greater understanding of the drivers that shape the automotive industry's due diligence for compliance with conflict minerals reporting requirements, including updates on U.S. and European legislation. A presentation titled “The Future of Global Conflict Minerals Reporting” featured Eileen H. Kane, U.S. Department of State; Michael Rohwer, CFSI; and Jennifer Guest, TetraTech. The trio shared global updates on conflict minerals requirements in Europe and China with an attentive audience.

I recently participated in a discussion panel that was part of the AIAG Quality Summit in Novi, Michigan, September 22-23, 2015. The topic focused on software for quality in manufacturing. The panel included vendors offering software for quality improvement and quality management systems.

A wide range of business-critical risks face today’s automotive supplier. Typical risks include material shortages, catastrophic property losses, supply chain interruptions, IT failures, and more. For Tier One suppliers, the lack of transparency and control among sub-suppliers adds to their risk equation. Smart planning is imperative, especially as the globalization of automotive supply processes increases.

AIAG’s Globally Harmonized System (GHS) Work Group has joined forces with the internship program at Purdue-Calumet University to create an easy-to-use reference document for chemical manufacturers, mixture companies/blenders, and distributers who must comply with the update requirements of OSHA HCS 2012.

Companies’ supply chains are increasingly affected by new laws in the U.S. and Europe that address not only materials, but also due diligence policies and practices. Many also require a manufacturer to impose requirements on its suppliers. They impact your relationship with your supplier network, and require both supplier engagement and verification.

AIAG’s Effective Problem Solving Leader Guide (CQI-21) helps companies get on the path leading to problem prevention.

AIAG’s Supply Safe Program, hailed as the “next evolution in border security,” reduces redundancy and strengthens security through an united industry effort.

You and your suppliers understand the challenges related to the Dodd-Frank Wall Street Reform and Consumer Protection Act, which requires compliance reporting by every SEC-reporting company with products that contain conflict minerals (tin, tantalum, tungsten, and gold). It’s no surprise that — given the complexity of the rule and the extent of the effort required to comply — many companies struggle with reaching a determination as to their DRC conflict minerals status. Common reasons include:

Why do long-time industry professionals volunteer their time?

We’ve all heard it said: Volunteering for your industry is one of the most important and most needed acts a professional will ever do. But in today’s increasingly challenging global climate, finding time is harder than ever. So why do people do it?