Advanced Product Quality Planning – The 5 Phases of APQP

Updated: August 3, 2023
Published: April 1, 2019

Achieving Customer Satisfaction and Competitive Advantage at Lower Costs

Understanding and meeting customer expectations is at the heart of Advanced Product Quality Planning (APQP) and are key requirements for any business to be successful. APQP’s focus on customer needs ensures that products are developed and manufactured to fulfill those requirements, resulting in increasing customer satisfaction, improved customer loyalty and business competitiveness.

Incorporating APQP is highly beneficial, particularly in industries under constant pressure to innovate and enhance products, even if you already have a robust quality management system and quality program in place. APQP enables more predictable business success by including quality in the design process and mitigating inherent risks in the production process before parts arrive on the line. 

What is APQP?

Advanced Product Quality Planning (APQP) is a methodology and framework used in the automotive and manufacturing industries to ensure the quality and reliability of products throughout their development and production processes. APQP provides a structured approach for product and process design, aiming to minimize risks, optimize quality and meet customer requirements.

APQP serves as a framework to guide cross-functional teams in effectively managing quality throughout the product development lifecycle. It promotes collaboration, risk mitigation, and continuous improvement, ultimately resulting in high-quality products that meet customer expectations.

The History of APQP

Originally introduced in the late ’80s within the automotive industry, APQP programs were in use by major Original Equipment Manufacturers (OEMs) in the automotive industry like General Motors, Ford, and Chrysler who recognized the importance of establishing a common set of product quality-planning principles for their suppliers. They acknowledged the importance of supply chains in automotive manufacturing, meeting consumer expectations and collaboratively created APQP programs to ensure that component suppliers became partners in meeting holistic quality requirements.

During the early ’90s, standardized guidelines were established to enhance compliance with APQP protocols. Since then, the APQP process has gained momentum and piqued the interest of manufacturers across various industries.

Several organizations across the globe have developed very similar APQP-related standards, the most adopted of which include the following:

• US – Automotive Industry Action Group (AIAG)
• Germany – Verband der Automobilindustrie (VDA)
• Japan – Japan Automobile Manufacturers Association (JAMA)

When Should Manufacturers Start an APQP Process?

Before embarking on the APQP, a manufacturer should perform a feasibility assessment. Whether or not they have a preexisting relationship, future assurance of customer success is key. Common factors in sourcing decisions include: :

• Technical Capability
• Production Capacity
• Supply Chain
• Quality Capability
• Financial Viability
• Timing and Lead Time
• Customer Relationship
• Risk Level

Only when feasibility is likely should they proceed further.  Let’s assume it is feasible and look at each of the APQP phases in more detail.

The 5 Phases of APQP: A Comprehensive Overview

What does APQP entail? According to the American Society for Quality, Automotive Division, Advanced Product Quality Planning is a structured process involving critical tasks spanning from concept approval through production, with the ultimate aim of creating a product quality plan that aligns with customer requirements.

The APQP process is composed of five phases:

1. Product Planning and Quality Program Definition
2. Product Design and Development
3. Process Design and Development
4. Validation of Product and Process
5. Production Launch, Assessment and Continuous Improvement

APQP Phase 1: Planning and Program Definition

When customer demands require the introduction of a new product or an overhaul of an existing one, before diving into product design or redesign discussions, preliminary planning takes center stage when a new product introduction or product overhaul is required.

During this phase, effective product planning centers on understanding customer needs and expectations for the product. Key tasks involve gathering data to define customer requirements and then utilizing this information to outline product characteristics. Crafting the essential quality program for manufacturing the specified product involves defining product design, reliability goals, quality goals, Bill of Material (BOM), preliminary process flow, special characteristics, product assurance plan and management support.

APQP Phase 2: Product Design and Development

This phase focuses on completing the product design and is applicable if the company is responsible for the product’s design, including a thorough product feasibility assessment.

Considering the customer requirements and identified safety or critical characteristics, the key outputs of this product design and development phase include:

• Design Failure Mode Effect Analysis (DFMEA)
• FMEA Monitoring and System Response (MSR – if applicable or necessary)
• Design for manufacturing and assembly
• Design review and verification
• Prototype Control Plan
• Engineering drawings and specifications
• Defined material specifications
• Equipment, tooling, gauging/testing and other facility requirements
• Finalized special characteristics 
• Team feasibility commitment and management support

APQP Phase 3: Process Design and Development

This phase focuses on planning the manufacturing process required to produce the new or improved product. The objective is to design and develop a production process that adheres to product specifications, quality standards and cost-efficiency. The process should be capable of meeting anticipated consumer demand while maintaining operational efficiency. Key deliverables include:

• Packaging standards/specifications
• Product and process quality system review
• A fully defined process flow chart
• Production floor plan layout
• Characteristics matrix
• Process FMEA
• Pre-launch control plan
• Work instructions
• Measurement systems analysis plan
• Preliminary process capability study
• Management support (staffing and training plan)

APQP Phase 4: Validation of Process and Product

This phase represents the crucial testing stage that validates both the manufacturing process and the final product, culminating in the Production Part Approval Process (PPAP). During this stage, customers provide a sign-off based on product samples and documented evidence ensuring the capability and reliability of the manufacturing process to confirm the effectiveness of the deployed manufacturing approach. Adjustments and refinements are made as necessary before proceeding to the next phase.

Key steps for this phase include:

• A significant production run
• Measurement system evaluation
• Preliminary process capability study
• Production part approval
• Packaging evaluation
• Control plan
• Quality planning sign-off
• Management support 

APQP Phase 5: Production Launch, Assessment, and Continuous Improvement

The final phase entails the full-scale production launch with a focus on evaluating and improving processes. Outcomes typically include an improved manufacturing process with reduced variations, enhanced product delivery quality and customer service and improved customer satisfaction.

Key assessments and improvements include:

• Reducing process variations
• Improved customer satisfaction
• Improved delivery and service
• Effective use of lessons learned and best practices 

Planning for Success: How APQP Helps Achieve Customer Satisfaction and Competitive Advantage at Lower Costs

APQP provides a structured approach for planning, defining, and executing necessary activities to produce products that meet customer needs and expectations. The program incorporates the use of standard quality tools such as FMEA, SPC, PPAP and comprehensive control plans to ensure effectiveness.

For manufacturers, adopting APQP offers a higher potential for successful product launches, minimizing product and process risks, and enhancing overall competitiveness in the marketplace. Additionally, the APQP framework is a key driver of cost reduction priorities that every CEO, CFO and financial stakeholder has by focusing on preventative risk management rather than reactive damage control.

OEMs have been increasing the pressure on the supply chain to improve their prevention practices. In December 2021, Ford released an update to their Customer Specific Requirements (CSR) requiring, among other things, their supply chain to manage foundational FMEAs in a software platform by the end of 2022. The automotive industry is likely to see other OEMs follow suit. As consumer preferences lean toward smart products, the best way to get ahead is to plan for success now.