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IQS is Selected by IBM for Auto Industry e-Sourcing

12 January 2001

IQS is Selected by IBM for Auto Industry e-Sourcing
    CLEVELAND, Jan. 12 IQS, Inc. (http://www.iqs.com ) -- a leading
provider of advanced QS-9000 collaborative e-business software solutions --
announced at the North American International Auto Show in Detroit that it is
teaming with IBM in delivering IBMPlaces, a new e-sourcing option for
automakers and their suppliers that enables them to lease leading-edge
business applications over the Internet.
    IQS and IBM are offering a Web-based solution to automate the complex and
rapidly evolving Advanced Product Quality Planning (APQP) and Production Part
Approval Process (PPAP) functions.  The automation of these processes, coupled
with real-time collaboration, will transform the industry by dramatically
improving existing processes for both suppliers and Original Equipment
Manufacturers (OEMs) through shortened time-to-market, increased focus on core
competencies, global synchronization, elimination of non-value added tasks and
risk reduction.
    The real opportunity is for an entire supply chain to implement the same
quality process via the Web through an e-sourcing software application for a
low monthly fee.  Using a common infrastructure allows the OEM, or large
supplier, rapid deployment of new modifications or additions to the quality
process.  It also saves the cost of replication of the infrastructure for each
company in the chain.  This monthly fee will be low enough to encourage usage
and provide a quick return on investment.
    "Our automotive e-business initiative allows engineering and quality
professionals to collaborate across the supply chain to accelerate product
development and time-to-market," said John Cachat, IQS President and Founder.
"IQS joining with IBM provides global e-business technical resources and
support."

    Internet Service Functionality
    Currently, quality systems are delivered through legacy systems which are
either mainframe or client-server applications.  These systems are meant for
internal use.  Supplier input is cumbersome and costly, resulting in lack of
participation of the lower tiers.
    Using Web technologies, suppliers can implement quality process
improvements using e-sourcing at a lower cost and for quicker implementation
and easier processing.
    IQS Smartforms developed with IBM was designed to simplify and streamline
the APQP process.
    "The speed of the Internet has intensified the pressures on the global
market," Cachat said.  "Manufacturers focus on core business and outsource
other tasks.  They need to find new ways to enhance communication and manage
complex extended enterprises, all of which require better collaboration among
a wide range of players.  IQS and IBM are providing the ability to
electronically transfer APQP, PPAP and other QS-9000 information across the
entire supply chain."
    "The demands on the automotive supply chain to cut costs can be addressed
with a service of this nature," indicated William Lang, IBM National Practice
Executive for the automotive industry.  "All the effort currently directed at
legal advice, contract reviews, and pricing alternatives, if directed at a
global web-based APQP, Failure Mode Effect Analysis (FMEA) and PPAP
communication service, will help bring cost reductions to the OEMs.  IBM is
pleased to have IQS on its team to deliver automotive quality systems."

    About IQS
    IQS, Inc., located in Cleveland, Ohio, is an international pioneer in web-
based integrated quality management software.  IQS offers The IQS Business
System as a proprietary business model for integrating quality information
systems that compliment investments in ERP systems.  The IQS Business System
is a flexible, user-friendly system that has empowered customers to become
more profitable and competitive.  IQS supports several critical business
processes, including QS-9000, ISO 9000, AS 9000, TE 9000, ISO 14001, Six
Sigma, Lean Manufacturing and Supply Chain Effectiveness.