When Quality Counts

1
When Quality Counts
Not all Aftermarket Parts are Created Equal
2
CAPA Update for the CCIF

• Who We Are
• Why CAPA
• Program Review
• CAPAs Success
• CAPA Responds
• Aftermarket Parts Reform The Real Future

3
Mission Statement

• CAPA is a non-profit, third party independent
  standard setting organization whose goal is to
  ensure that the market has a high quality, fairly
  priced alternative to expensive car company
  parts.

4
How We Got Here

• 1970s car companies stopped changing model
  designs each year
• Independents began to produce alternative parts
  -- Like mechanical part competitors in the 20s
  and 30s
• Collision repairers used these parts in record
  numbers

5
How We Got Here

• After repair shops created the market, insurance
  companies started including competitive parts on
  estimates
• Then collision repairers started to complain
  about safety and quality
• The insurance industry responded by creating CAPA
  in 1987

6
Why CAPA?

• To protect American consumers from a car company
  parts monopoly and poor quality parts

• Car companies spend millions of dollars to
  discredit aftermarket parts, scare consumers,
  co-opt body shops and intimidate state
  legislatures into protecting their monopoly
• Not stepping in and working to break this
  monopoly will only lead to higher car repair
  costs and higher insurance premiums.

7
What Happens in a Car Parts Monopoly?

• A 1994 Ford Taurus hood costs almost 400 350
  to install and refinish it.

A TV/VCR costs around 250 and it plugs in for
immediate use.

• Consumers Know There Is Something Wrong When
• 600 will buy a Pentium 4 computer with color
  printer, 17 color monitor yet they have to add
  300 to get a sheet metal quarter panel from Ford
  for 900
• 500 buys a new refrigerator or a Chrysler hood

8
Questions to Ask About a Part Quality
Certification Program

• Are the parts individually certified for quality?
• What are the credentials of the certifier?
• Is a fully accredited, independent test lab part
  of the process?
• Is the certification process transparent and
  subject to public comment?
• Does the program have clear and precise
  standards?

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Questions to Ask About a Part Quality
Certification Program

• Are the standards available to the public?
• Is there a mechanism for consumers, repairers and
  other affected parties to be involved in the
  standard setting process?
• Who oversees the development of the standards?
• Are the parts continually inspected after initial
  certification?
• Is the certifier involved in the marketing, sale
  or distribution of the product?

10
CAPA Answering the Questions

• Does distributor listing govern CAPA
  certification?
• Only CAPA determines certification
• Neither distributors or insurers can decide if a
  part is to be listed as certified.
• Distributors could list part as a CAPA certified
  part, but only the presence of the CAPA seal
  actually confirms certification.

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Step 1FACTORY APPROVAL
P

• A detailed review and audit of the factory and
  manufacturing processes

P
Inspection, quality control and operating
processes are critically reviewed
P
An independent body determines whether the
quality processes and factory each meet CAPAs
60 point quality requirements
12
Product Quality Certification vs. System
Certification
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Why Factory Approval (Process Certification) is
not enough for CAPA

• CAPA led the way in process certification by
  developing and requiring a factory approval
  process well before the popularity of ISO.
• In mid 90s CAPA eliminated facility audits in
  lieu of QS certification. Within 1 year CAPA was
  forced to reinstate facility audits.
• Car companies have had similar problems, so they
  too are moving away from QS and migrating to TS
  16949 which includes more control over the
  product.

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Step 2PART APPROVAL AND CERTIFICATION

• Only after the factory has been approved can
  individual parts be submitted for certification
• Part Approval is a Multi-Step Process

P
Checking Fixture is Approved
P
Part Properties are Tested Approved
P
Part Passes Vehicle Test Fit
When All Criteria are Met Part Certified and
Seal Affixed
P
15

• Checking Fixture Approved

Mating Components Checked against part
Datum Points Set at all critical areas
Bodylines Exactly match car company
Gap Matches master
Holes Properly placed
Flush Matches Master
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Part Properties are Tested

• Test procedures are based on nationally
  recognized tests such as ASTM and SAE

• Material composition
• Coating performance
• Thickness
• Corrosion
• Mechanical properties
• Form and fit
• Paint adhesion

• Appearance
• Adhesive and weld integrity
• Fasteners\Hardware
• Quality Control procedures
• Identifying markings

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Hood - Inner Skin Identified for Testing Welds,
Weldments, Adhesives

• Part Properties are Tested

18
Complete destructive testing ensures
comparability with car company service parts

• Part Properties are Tested

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Part Passes Vehicle Test Fit

• Initiated April 1999
• Dedicated Vehicle Test Fit Facility
• Collision repair professionals perform tests

• As of December 31, 2001 all CAPA parts have a
  vehicle test fit or equivalent

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CAR COMPANY SERVICE PART QUALITY STUDY OVERALL
RESULTS(1,907 PARTS)
21
CAPA Test Fit Results
Car Company Quality

• 1,907 Car Company Parts Tested.
• 50 (954) failed CAPA fit and appearance
  requirements.

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What Does this Analysis Tell Us?
When compared to car company parts in the market,
100 of CAPA parts meet standards and only 50 of
the car company parts meet the standards
Pass 100
Fail 50
Pass 50
Percent of Parts introduced as CAPA that meet
CAPA Standards
Percent Car Company Service Parts Meeting CAPA
Standards
CAPA Parts are equal or BETTER than their car
company counterparts !!
23
The CAPA Quality Seal The Final Step in Part
Certification

• Tamper Proof Design
• Two Parts
• Top part stays on part
• Bottom part provides proof that a CAPA part has
  been used
• Bar coded for ease of tracking

Each and every part has a unique number
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CAPA Part Tracking
Easy Available to All
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CAPA Part Tracking

• One Seal Number Can
• Confirm part certification.
• Provide part history.
• Identify lot, manufacturer and application.
• CAPAs parts database maintains all testing and
  inspection information on all parts in the
  program.
• Bottom tab of the seal affixed to repair order or
  estimate provides permanent tracking of the part.

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Step 3 REGULAR RE-INSPECTION AND MONITORING

• Quality Systems Audits twice per year.
• Dimensional, Appearance, and Quality Control
  records inspections on 70 - 80 of lots.
• Random material testing, Vehicle Test Fits and
  studies.
• Complaint investigations.
• Annual Fixture and Weld Jig Verification.
• Trend analysis on manufacturer, part number and
  other critical program elements.

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Step 4 MARKETPLACE QUALITY MONITORING

• Complaint Program Providing users with the
  opportunity for quality input.
• Decertification Program Keeping problem parts
  out of the market.
• Recall Program Removing poor quality parts from
  distributor shelves.

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CAPA Encourages Complaints

• 1-800-505-CAPA
• www.CAPAcertified.org
• Written Form Thousands distributed annually

29
Complaints Received 1995-2002
16,771,089 Parts Certified
30
Percentage of Valid Complaints to Seals Applied
31
CAPAs Success What CAPA has Accomplished

• Accredited by the American National Standards
  Institute (ANSI), as a standard developer.
• Developed specific, enforceable, effective
  standards for metal and plastic body parts and
  lighting.

32
CAPAs Success What CAPA has Accomplished

• Dramatically improved the quality of competitive
  repair parts bearing the CAPA seal.
• Provided repairers with a means to reduce total
  losses and therefore repair more cars.
• Provided a high quality alternative to expensive
  car company parts.

33
CAPAs Success What CAPA has Accomplished

• Secured one of the nations most accredited
  testing laboratories
• Entela, Inc., Grand Rapids, MI
• ISO/TS-16949 (World Automotive Standard)First
  accredited and issued first certificate.
• QS-9000 and Tooling Equipment Supplement USAs
  leading Registrar.
• American Association for Laboratory Accreditation
  in Chemistry, Mechanical, Electrical, Metrology,
  Metallurgy
• Product Certification for Automotive Aftermarket
  Parts, IT, Medical Devices, Machinery, Furniture,
  Appliances, Lab Equipment.

34
CAPAs Success What CAPA has Accomplished

• Brought collision repairers into the part
  certification process
• CAPAs Board is led by one of the nations
  foremost collision repairers.
• CAPAs Board and TC include ASA, SCRS and other
  industry leaders.

35
CAPAs Success Industry-Wide Acceptance of CAPA

• Repairers and other parties are now stating that
  there is a need for a certification program
• The ASA, the largest trade association of
  repairers in the U.S., has endorsed our model
  bill on a federal level which would require the
  use of certified parts

36
CAPA Responds GM Report on 10 CAPA Parts

• CAPA regularly tests car company parts and weve
  accumulated significant data on GM parts
• Overall, 65 of 467 GM parts vehicle test fit
  failed to meet CAPAs fit and appearance
  requirements.
• GM report implies that all Pontiac Grand Am
  hoods are made the same way.
• GM report did not indicate if their parts meet
  their standards.

37
CAPA RespondsGM Report

• GM implies that CAPA parts are inferior because
  they did not match GM parts or specifications,
  yet when CAPA reviewed Pontiac Grand Am hoods, we
  found
• 55 Variation in No. of Adhesive Patches
• 105 Variation in Surface Area Covered
• 129 Variation in Minimum Weld Size

38
CAPA RespondsConsumer Reports

• CR supports the goals of CAPA.
• CR applauds the changes CAPA instituted
• CR said CAPA should expand to cover bumper
  assemblies.

39
CAPA RespondsCAPAs Independence

• UL stands alone only after 19 years of dependence
  on the insurance industry. UL gained this
  independence because regulations require UL
  standards.
• CAPA has suggested similar requirements on a
  state level and the ASA has proposed federal
  certification standards.
• CAPA is led by one of the nations foremost
  consumer advocates, Jack Gillis.

40
Aftermarket Parts Reform

• CAPA has built a strong foundation
• There is a tremendous opportunity to embrace and
  insist on true quality
• Each industry segment needs to make a decision
  regarding CAPA and quality aftermarket parts

41
Aftermarket Parts Reform Consumers Support
Competition

• Center for Auto Safety
• Consumer Federation of America
• Ralph Naders Public Citizen
• Consumers Union
• All are on record in support of CAPA, its goals
  and/or aftermarket parts

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Aftermarket Parts ReformCollision Repairers Must

• Decide that they want to encourage competition.
• Decide to use only quality parts.
• Reject poor quality.
• Look for the CAPA seal.

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Aftermarket Parts ReformDistributors Must

• Remember that they have the strongest influence
  on manufacturers
• Decide That Quality Is Really Important
• Communicate Decision in Buying Practices
• Provide Choice in the Marketplace

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Aftermarket Parts ReformInsurers Must

• Develop mechanism that ensures that policy
  holders get the parts specified.
• Monitor the use of parts.
• Develop educational programs for staff.
• Share importance with policy holders.
• Promote your efforts.
• Financially support independent certification

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What Happens Without CAPA?

• The Car Companies win in two ways
• They can charge whatever they want for parts.
• As repair costs escalate and more cars are
  totaled, consumers are forced back into the
  market to buy another car.
• In addition
• No incentive for car companies to improve
  quality.
• Lack of choice negatively affects all parties.

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When Quality Counts
Insist on Genuine CAPA Parts!!