APQP 3rd edition, Phase 1: Building the Blueprint for Quality Success

“Plans are nothing; planning is everything.” – Dwight D. Eisenhower

Introduction

When we decide to construct a house, the first thing is planning. What kind of home do we want to construct, when we want to construct, where we want to construct, how much the investment will be and many more relevant questions. Once we are ready with the answers, it is easier to go ahead and construct it.

Content: APQP Overview

1. What is APQP

2. 5 Phases of APQP

3. Preparatory phase before Phase 1

4. 17 steps in Phase 1

5. Key changes from APQP 2nd edition

6. Possible benefits

7. Key challenges

8. Conclusion.

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Objective

To translate customer needs and business requirements into clear, measurable product and process goals, while ensuring the organisation has the right team, resources, timing, and risk controls in place before moving into design and development.

Once you go through the article, you will understand the meaning of APQP, details about phase 1, preparation before going ahead, key industry challenges, key changes from the 2nd edition and possible benefits.

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Definition: IATF 16949 Clause 3.1

APQP: product quality planning process that supports development of a product or service that will satisfy customer requirements; APQP serves as a guide in the development process and also a standard way to share results between organizations and their customers; APQP covers design robustness, design testing and specification compliance, production process design, quality inspection standards, process capability, production capacity, product packaging, product testing and operator training plan, among other items.

Control plan: a documented description of the systems and processes required for controlling the manufacturing of the product.

Design for assembly (DFA): a process by which products are designed with ease of assembly considerations. (e.g., if a product contains fewer parts, it will take less time to assemble. thereby reducing assembly costs).

Design for manufacturing (DFM): integration of product design and process planning to design a product that is easily and economically manufactured.

Design for manufacturing and assembly (DFMA): combination of two methodologies: Design for Manufacture (DFM), which is the process of optimizing the design to be easier to produce, have higher throughput, and improved quality; and Design for Assembly (DFA), which is the optimization of the design to reduce risk of error, lowering costs, and making it easier to assemble.

Design for Six Sigma (DFSS): systematic methodology, tools, and techniques to be a robust design of products or processes that meets customer expectations and can be produced at a six-sigma quality level.

Design-responsible organisation: organisation with authority to establish a new, or change an existing, product specification

Embedded Software: Embedded Software is a specialised programme stored in an automotive component (typically a computer chip or other non-volatile memory storage) specified by the customer, or as part of the system design, to control its function(s). To be relevant in the scope of IATF 16949 certification, the part that is controlled by embedded software must be developed for an automotive application (i.e., passenger cars, light commercial vehicles, heavy trucks, buses, and motorcycles; see Rules for achieving and maintaining IATF Recognition, 5th Edition, Section 1.0 Eligibility for Certification to IATF 16949, for what is eligible for “Automotive”).

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Detailed Information

In March 2024, AIAG (Automotive Industry Action Group) released the 3rd Edition of APQP. This new version brings updates that make the process more practical, more aligned with today’s business challenges, and easier to integrate with other quality tools.

This new edition reflects the latest industry trends like electric vehicles (EVs), autonomous driving, and digital manufacturing.

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What is APQP?

APQP is a structured way of planning and controlling product development. It ensures that customer needs are integrated into the design, development, and manufacturing process from the outset.

It is widely used in the automotive industry but is equally useful in other manufacturing sectors. Think of APQP as a roadmap that connects customer requirements, product design, process design, and final delivery.

APQP ensures the Voice of the Customer (VOC) is clearly understood and translated into specific requirements, technical specifications, and unique features.

APQP focuses on proactive measures to embed product and process benefits through prevention.

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5 Phases of APQP

As per IATF 16949, Clause 8.3 and APQP manual (Advanced Product Quality Planning- 3rd edition 2024), there are 5 key phases. They are

1. Plan and Define

2. Product Design and Development

3. Process Design and Development

4. Product and Process Validation

5. Feedback, Assessment and Corrective Action

The 3rd edition explains each phase in simpler, real-world terms. It helps teams focus on “what to do” and “why it matters” rather than just filling out forms.

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Key Preparation Before Phase 1

In the design and development planning process (phase 1), the key intent is to understand the end objective in terms of Quality, Cost and Time (QCD) & blueprint the entire development process accordingly. Once the organisation has effectively planned the design and development stages, the possibility of achieving the desired target increases.

Before Phase 1 starts, the organisation must be fully prepared with the right team, resources, clarity on requirements, and leadership commitment. This preparation ensures that Phase 1 doesn’t begin with gaps or ambiguities.

1. Team Formation & Governance

• Cross-functional APQP team (engineering, quality, manufacturing, purchasing, logistics).

• Assign roles, responsibilities, and authority clearly.

• Nominate a program manager or APQP leader.

2. Understanding Customer Requirements

• Collect and review the RFQ, contract, and Statement of Work.

• Identify customer-specific requirements (CSRs) and special characteristics.

• Align with regulatory and statutory standards.

3. Program Timing & Milestones

• Review customer timelines (SOP, PPAP, delivery schedules).

• Define internal milestones and gate review dates.

4. Resource Planning

• Assess needs for equipment, tooling, workforce, and suppliers.

• Budget approvals for prototypes, validation, and tooling.

5. Knowledge & Lessons Learned

• Collect inputs from previous launches, warranty data, and benchmarking.

• Document best practices and lessons learned as preventive guidance.

6. Management Commitment

• Ensure leadership alignment on program goals, timing, and investment.

• Confirm escalation processes for risk handling.

• Gain management approval to formally start Phase 1.

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Phase 1: Plan and Define

In the 3rd Edition, these checkpoints aren’t just a “to-do list”, they’re formal gate deliverables. At the end of Phase 1, management must review and approve progress before moving into Phase 2 (Product Design & Development).

The input and outputs in this phase will vary depending on the customer and organisation's expectations. As per the APQP manual, for some, all the key inputs and outputs will be relevant, for many, only a few.

1. Voice of the Customer

• Collect customer requirements, specifications, and expectations.

• Identify Critical-to-Quality (CTQ) and Critical-to-Process (CTP) features.

• Translate requirements into measurable product and process goals.

2. Business Plan & Marketing Strategy

• Align the project with organisational goals and customer contracts.

• Define cost targets, volume estimates, and timing.

• Benchmark competitor products and market trends.

3. Product/Process Benchmark Data

• Study best-in-class products or processes.

• Capture lessons learned from prior programs.

• Use benchmarking to define realistic goals for design, quality, and cost.

4. Product & Process Assumptions

• Document early assumptions on design feasibility, materials, and processes.

• Capture capacity and resource assumptions for suppliers and plants.

• Define preliminary risks and uncertainties.

5. Product Reliability Studies

• Perform early reliability testing concepts.

• Define product life expectancy goals.

• Assess potential failure modes and high-risk areas.

6. Customer Inputs

• Capture the voice of the customer (VOC) through contracts, RFQs, meetings, and specifications.

• Identify Critical-to-Quality (CTQ) and Critical-to-Process (CTP) characteristics.

• Include special customer-specific requirements (CSR) from OEMs.

7. Design Goals

• Define goals for expected product life, endurance, and durability

• Ensure the design is manufacturable within process capability limits (Cp, Cpk targets).

• Define design targets for safety-critical features (brakes, airbags, medical devices, etc.).

8. Reliability and Quality Goals

• Define expected product life expectancy (e.g., 10 years, 150,000 km).

• Anticipate failure modes early using past lessons, FMEA, and reliability studies.

• Include process capability targets (Cp, Cpk) for critical features.

• Define preliminary design targets (e.g., weight, size, performance).

• Set clear quality objectives (defect ppm, scrap, rework).

• Align goals with customer scorecards and KPIs.

9. Preliminary Bill of Materials (BOM)

• Draft the first version of the BOM.

• Identify high-risk parts or new technologies.

• Flag safety-critical or regulatory-controlled items.

10. Preliminary Process Flow Chart

• Create a draft process map showing major operations.

• Highlight new or unique manufacturing steps.

• Identify potential bottlenecks or special processes.

11. Preliminary Identification of Special Characteristics (SCs)

• Identify potential special products and process characteristics.

• Define preliminary control methods for SCs.

• Document SCs in risk registers for further validation.

12. Product Assurance Plan

• Outline validation strategy (DV, PV, PPAP).

• Define early verification checkpoints.

• Align the assurance plan with customer milestones.

13. Capacity Planning

• Conduct high-level plant and supplier capacity checks.

• Consider tooling, workforce, and equipment needs.

• Perform early feasibility reviews with suppliers.

14. Leadership Support

• Ensure leadership commitment to resources and timing.

• Establish escalation mechanisms for risk resolution.

• Gain approval for program metrics and gates.

15. Change Management Implementation

• Introduce a structured change management system (form, fit, function).

• Define roles and responsibilities for approving changes.

• Establish baseline documentation for traceability.

16. APQP Program Metrics

• Define measurable indicators (timing adherence, PPAP submissions, risk closures).

• Track leading and lagging metrics.

• Ensure metrics are customer-aligned and auditable.

17. Risk Assessment and Mitigation

• Perform an early risk scan (technical, supply chain, quality).

• Prioritise risks using FMEA or a risk matrix.

• Document mitigation actions and owners.

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Key Changes from Rules 2nd Edition

• Inclusion of a Formal Phase 0.

• Gated Management Process.

• Introduction of APQP Program Metrics.

• Sourcing and High-Risk Supplier Assessment.

• Change Management Additions.

• Part Traceability

• Separation of the Control Plan.

Key Benefits:

• Customer Focused Start

• Risk Reduction Early On

• Clarity & Alignment

• Efficient Resource Planning

• Structured Roadmap

• Improved Reliability & Quality

• Management Commitment

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Conclusion:

Phase 1 is the foundation of APQP. It ensures that the voice of the customer, business strategy, and technical requirements are fully understood before design begins. By defining design, quality, and reliability goals, capturing customer input, assessing risks, and setting program metrics, organisations build a clear roadmap for success.

In short, Phase 1 is about clarity, alignment, and foresight, turning expectations into actionable goals, minimising risks early, and preparing the team for a disciplined, customer-focused product development journey.

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Present Challenges:

• How often is competent CFT defined, and work is done as a team during development?

• How often is regular and updated feedback shared with top management as management review input?

• How often is systematic identification and understanding of the voice of the customer conducted?

References:

APQP 3d Edition

IATF 16949

Industry Experts

This is the 237th article of this Quality Management series. Every weekend, you will find useful information that will make your Management System journey Productive. Please share it with your colleagues too.

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