Minimizing Risk in EV Design: Tips for Choosing the Ideal Component Supplier

Electric vehicles present automakers with unique challenges that do not exist in internal combustion engine (ICE) architectures. Selecting the best suppliers for your EV can mean the difference between system failure and project success.

Electric vehicle manufacturing is a rapidly growing industry, and automakers are increasingly asked to meet shorter development timelines to comply with global emissions objectives. In the U.S., for instance, the federal government has set a goal to make half of all new vehicles sold “zero-emission vehicles” by the year 2030 – including battery electric (BEV), plug-in hybrid (PHEV), and fuel cell electric (FCEV) vehicles. In order to continuously innovate, automakers must carefully select component suppliers that can help them to achieve project goals, reduce risk, and develop new competencies in their overall design.
When evaluating suppliers for your EV design, consider the following criteria in your decision-making process to ensure your selected suppliers can provide relevant products, experience, manufacturing capabilities, and technical support to help you meet your unique project goals.

Evaluation Criteria 1: Relevant Experience and Component Range

“Experience Matters for the Motor”

Experience and component range are essential factors to consider when evaluating the merits of any automotive supplier. Automakers should feel confident that their chosen suppliers have supported comparable projects, solved similar problems, and will provide a tested solution that works. While EVs may be considered “new” technology compared to traditional ICE vehicles, do not settle for suppliers that cannot provide relevant experience, skills, and products to support the needs of your design.

Chosen suppliers should be the best in their fields. In your evaluation, consider the supplier’s volume of automotive business and financial stability, along with design development and project management capabilities and technology available to support you. For example, a design-responsible supplier is accountable not only for designing a component, but ensuring it works in your system using Design Failure Mode Effects Analysis (DFMEA). Choosing a design-responsible supplier can help to reduce risk in your EV design overall by circumventing issues that may occur when working with a commodity-only supplier that is not responsible for part performance (and may not be able to properly assist with challenges or technical issues occurring during the course of a project).

Consideration should also be given to component range, as well as any related technical competencies or customizations the supplier can provide. Can the supplier modify standard products to expand their performance overall? What percentage of their business is in supplying custom solutions? As you evaluate the needs of each system, examine how the supplier stacks up to all requirements listed in your preliminary design. The chosen supplier should be fully capable of supporting your needs for the particular component they provide.

Evaluation Criteria 2: Quality and Reliability Standards

Quality and reliability are non-negotiable when it comes to sourcing parts for electric vehicles. Quality standards can affect every stage of the procurement process, from how a supplier sources raw materials for parts or evaluates their sub-suppliers, to how components are assembled and tested, all the way to how those parts get delivered to the end customer. When evaluating a supplier for your EV design, look into their quality assurance measures, including documentation on their internal quality processes, certifications, and compliance with other relevant industry regulations relating to safety, reliability, and the environment. Certain certifications are considered standard across the automotive industry.

The list below outlines a handful of regulatory standards that should be considered during the evaluation process:

• ISO 9001 is the most widely used quality management standard in the world. Created by the International Organization for Standardization, or ISO, this standard specifies requirements on how to establish, implement, maintain, and continually improve a quality management system (QMS).
• IATF 16949 is a technical specification developed by the International Automotive Task Force (IATF) in conjunction with ISO. This certification defines requirements for QMS in the automotive industry, with an emphasis on defect prevention and reducing variation and waste in the supply chain and assembly process.
  • Production Part Approval Process manual, also known as PPAP, is an industry standard used as a part of IATF 16949 to establish confidence in supplier product processes. Per the Automotive Industry Action Group (AIAG), PPAP principles “help reduce delays and non-conformances during part approval by providing a consistent approval process.” This document essentially confirms that the supplier will produce the part in the same way, using the same processes and machines, and with the same testing and qualification procedures so that there is no variation in the quality of the end product.
• Restriction of Hazardous Substances Directive, or RoHS, is an export regulation for material parts. This initiative is meant to restrict the use of certain hazardous substances in electrical and electronic equipment.
• Registration, Evaluation, Authorization and Restriction of Chemicals, or REACH, is an export regulation for material parts that addresses the production and use of chemical substances, along with their potential impacts on both human health and the environment.

Other certifications may be desired for specific components that require extra handling (such as heat treatment) or to address the supplier’s environmental and sustainability efforts (e.g., EcoVadis).

While you evaluate all suppliers to your own audit standards, certifications and relevant quality management documentation can provide additional peace of mind. It is also important to consider the supplier’s change management policies. Confirm that the supplier has processes in place to address the control of changes made to the product or process so that the supply chain and production cycle is not adversely affected.

Automakers should also consider the supplier’s internal testing and revalidation requirements for all components they produce. Testing provides assurance that the component will function properly if it is installed properly. In addition to performing your own functional end-of-line (EOL) testing, consider how thoroughly the supplier is testing parts during the production process – including their parts per million (PPM) defect rate. This is a measure of the number of defects in a process or product. The lower the PPM defect rate, the more efficient and effective the process is. A rating of 3.4 defects per million opportunities (DPMO) is considered near-perfect quality.  When selecting a supplier for your EV design, quantify where the supplier falls within this efficiency scale. Can they share their average PPM defect rate over a given period of time? Are they willing to provide information on their internal testing procedures? Do they have the equipment needed to perform standard and advanced quality tests? The answers to these questions can help influence the supplier selection process for your EV design.

Evaluation Criteria 4: Technical Support & Value-Added Resources

When designing for your EV, look for suppliers that can offer you more than a transactional experience. A supplier who understands your design requirements and provides proactive technical assistance can help to propel your EV towards success by developing solutions for both current and future problems. Deeper collaboration with suppliers can help to improve processes, mitigate risk, and promote further design innovation. As you evaluate suppliers for your EV design, think about how they will support you in this project and beyond.

A great way to do this is by considering the level of technical support and customer service that the supplier can offer you. Where are these resources located? A global supplier that offers a wide range of available, local sales and engineering resources can bring technical expertise and personalized support straight to you. What are the technical qualifications of these resources? Resources with a background in automotive engineering may be better able to advise on complex issues related to your EV design, further reducing risk. How accessible are these resources? Frequent, open communication is key to help solve issues quickly or to promote further design innovation. It is also important to consider how the supplier trains their employees. Suppliers that provide continuous educational enrichment opportunities help to develop the next generation of employees to become skilled workers like toolmakers or engineers that stay with the organization. This ensures that information on complex processes and procedures related to component design and production is not lost. A supplier committed to continuous improvement can be a tremendous support to your overall project goals.

In addition to technical support, consider any value-added resources or services that the supplier can provide. These can include things like preventative maintenance and quality testing, along with engineering resources and inventory management. Technical capabilities and available technology may also be helpful to include in your evaluation criteria. Does the supplier provide any advanced testing and failure analysis for parts (e.g., finite element analysis (FEA), scanning electron microscopes, or other testing technology)? If needed, are they capable of working with exotic or non-standard materials? Weigh the benefit of these added resources or technical capabilities as you evaluate each supplier to support your EV design.