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Driving
Process
Excellence
Enterprise Audit
ManagementProcess driven combining audits on quality and
Re-think about Quality Audit :Auditing and being audited
“If we change the way we think about quality, we will imaginethat it is not about following procedures, inspection, rules andregulations. It is about establishing the needs and expectationsof those we choose to serve, setting goals for satisfying theseneeds, devising a system of processes to fulfil these goals,measuring performance and continually improving capabilityto satisfy the needs of all interested parties.”
Quality audits, both internal and external should be cited as part of the organization preventive action program. They are part meant to detect problems early. Identified non conformances typically should trigger an investigation. Audits should be also cited as part of be also cited as part of the organization to seen any opportunities to enhance their system
Worse Resources for big
result Quality audits, both internal and external should be planned with appropriate objectives to deliver best result for the organization performance
Poor Preparation
Poor Qualification • Competence building takes not more than simple training
• Knowledge system and process as vital things not defined properly
• Monkey sees monkey does
• Poor mentoring and tutor including continues improvement plan
• Checklist mentality
Poor Audit Plan • Not base on Risk, and actual process performance
• Un-wise resources regular plan
• Wrong selection team, ever see new comers going to production line..?
Poor Preparation
Comfort ZoneThey will be known better than 3rd. party auditors. For them mostly left unchecked for their comfort zone. An auditor that is totally unfamiliar with (for example) product design process-according to poor qualification above-might shy away from performing thorough investigation, allowing, this way, for ineffective processes to go unchallenged.
Side JobsThe planning also not consider according to the complexity of the process, covering of the process etc. Meanwhile the activities only confirm as side jobs. You can imagine how the audit would be execute.
Broken Close Loops
Comfort ZoneThey will be known better than 3rd. party auditors. For them mostly left unchecked for their comfort zone. An auditor that is totally unfamiliar with (for example) product design process-according to poor qualification above-might shy away from performing thorough investigation, allowing, this way, for ineffective processes to go unchallenged.unchallenged.
Side JobsThe planning also not consider according to the complexity of the process, covering of the process etc. Meanwhile the activities only confirm as side jobs. You can imagine how the audit would be execute.
“Systematic, independent and documented process for obtaining audit evidence and evaluating it objectively to determine the extent to which audit criteria are fulfilled.”
Audit criteria is a “set of policies, procedures, or other requirements against which collected audit evidence is compared.”
Audit evidence consists of “records, statements of fact or other information, relevant to the audit and which are verified.”
“Internal auditing is an independent, objective assurance and consulting activity designed
to add value and improve an organization's operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes.”[i]
[i] “About Internal Auditing,” IIA Web Site, 2000.
An audit does not only provide information to determine conformity, but also information that can be used to direct an organization and improve its activities. This added value of auditing – compared to control or inspection activities – is, amongst others, related to the in-depth type of investigations and analysis and the search into the causes of any shortcomings or non-conformities
Systematic, independent, and documented process for obtaining audit evidence and evaluating it objectively to determine the extent to which the audit criteria are fulfilled.i]
[i] “ISO 19011:2002
shortcomings or non-conformities that form the basis of all audits
An organization will need to:•Identify what competencies are required• Identify which personnel already are competent
Role of auditor :• Catalyst• Reporter• Improvement Agent• Innovator • Motivator • Interface between linkage
An advantage of the process approach isthe ongoing control that it provides over thelinkage between the individual processeswithin the system of processes, as well asover their combination and interaction.When used within a quality managementsystem, such an approach emphasizes theimportance of• understanding and meeting requirements,• the need to consider processes in terms ofadded value,
• obtaining results of process performanceand effectiveness, and
EFFECTIVENESS & EFFICIENT Compliance against PDCA Approach
EFFECTIVENESS AND EFFICIENT
IMPROVEMENT AND EFFECTIVENESSThere are many examples and requirements in ISO 9001:2000 that require the organization to address the effectiveness of its quality management system.
Further requirements specify the need for continual improvements to the quality management system – not just sporadic quality campaigns.
• Extent to which planned activities are realized and planned results achieved. - ISO 9000:2000 3.2.14
• ISO 9001 specifies requirements for a quality management system that can be used for internal application by organizations, or for certification, or for contractual purposes. It
organizations, or for certification, or for contractual purposes. It focuses on the effectiveness of the quality management system in meeting customer requirements - ISO 9001: 2000 0.3
• Top Management shall ensure that the quality policy includes a commitment to comply with requirements and continually improve the effectiveness of the quality management system. - ISO 9001: 2000 5.3
• The organization shall continually improve the effectiveness of the quality management system through the use of the quality policy, quality objectives, audit results, analysis of data, corrective and preventive actions and management review. - ISO 9001: 2000 8.5
EFFECTIVENESS AND EFFICIENT
Measuring QMS effectiveness and improvementsEffectiveness : Planned result achieved for customer satisfaction driven
Efficiency : Result achieved against resources used
are also evaluated during management review meetings
and appropriate action taken.
Which may cause
the organization to again revise its
objectives.
EFFECTIVENESS AND EFFICIENT
ISO 9004:2000 & The consistent pairTop management should therefore define methods for measurement of the organization's performance in order to determine whether planned objectives have been achieved.
Methods include• financial measurement,• measurement of process performance throughout the organization,
• external measurement, such as benchmarking and third-party evaluation,
• assessment of the perceptions of customers and other interested parties of performance of products provided, measurement of other success factors identified by management.
• assessment of the satisfaction of customers, people in the organization and other interested parties,
- ISO 9004:2000 5.1.1
The Effectiveness of the OrganizationAfter analyzing the data and reaching a conclusion on theeffectiveness of the QMS, the same process is then used todetermine if the quality management system has had an effecton the Organization’s business and/or financial results.
The effectiveness of the quality managementsystem in meeting both quality and/or businessobjectives is likely to be the key attribute thatensures the on-going support and resourceallocation to maintain the ISO 9001:2000 quality
allocation to maintain the ISO 9001:2000 qualitymanagement system within the corporateenvironment.
“Another challenge is to make sure we don’t cross the line between helping management and our role as the independent, objective audit function,” he says. “This is a constant challenge, because the more management perceives us as adding value, the more they call on us to participate in the process. When that involves
value, the more they call on us to participate in the process. When that involves decision making, we must be careful to maintain our independence and objectivity.”
“Finally, as a global company, we have to be sensitive and aware that we are not living in one culture, but a multicultural world. What is good for the United States is not always good for the rest of the world, from both a business and an audit perspective.”
Chet Watson, general auditor, and Angie Chin, GM’s Audit Leadership Board executive for Business Risk Management, Sarbanes-Oxley 404 Support and Special Investigation
“The more that audit can be viewed as adding value beyond traditionalcompliance and operational auditing, the further the function will get.”
“My goal is significant reduction of total hours by leveraging existing documentation
“My goal is significant reduction of total hours by leveraging existing documentation and automation, increasing control awareness and improving training of control ownership,”
“We want to be free to expand the work IA is doing in traditional audit areas. So far, we are well on our way to achieving our goal.”
Rob Gould, director of internal audit, Harley-Davidson
“When I was brought on board, my initial challenge was to find out from all the senior executives what kept them up at night. We still try to stay on top of business and process risk to make sure we are addressing the high-risk and high-payback opportunities.”
“One thing I’ve learned is that I am here to make the business better - by collaborating and listening, we can provide better service and meet the needs of management.”
Phil Bertram, director of internal audit, Komatsu
“We need empowerment, not only in terms of responsibility, but also in terms of the human resources assigned to the different offices, where these professionals will be autonomous as they perform different types of audits.”
“All of this is based on one concept - and that is, in order to create a good auditor, a company must spend a great deal of money, both in formal development and in on-the-job training. Our goal is to keep talented people within the Fiat Group so that we can recover our investment of resources.”
– Mauro Di Gennaro, chief audit executive and compliance officer, Fiat.
I would like to say a lot of thanks following all valuable discussion and brain-stroming and supporting during preparation of this seminar and paper to :
• Mr. Santoso Catur Yugo, Head of Astra Daihatsu Motor Casting Plant
• Mr. Budi Agung P., Director Secretary Astra Daihatsu Motor
• Management of PT Asmo Indonesia : Mr. Okumura (Director), Mr. Satrio S. (GM) and Mr. Joko Isworo (Management Representative)
• Mr. Nyoman – Management representative GS Battery Indonesia – and his staff : Mr. Ricky
• Management of PT Hamaden Indonesia : Mr. Denny Thamrin (Management Representative), Mr. Tri Harjanto (GM).
• Management of PT Denso Indonesia : Mr. Supriatna (Management Representative), Eko Widodo (QA)
• Mr. Sugeng – QA : PT Suzuki Indomobil International
• Mr. Muh. Sadewo Head of Inti Pantja Press Indonesia and executive director of Fuji technica Indonesia.
• All my colleagues at SGS Indonesia
All picture copy right confirmed by sxc.hu; Flickr.comReference presentation copy right confirmed by slideshare, ASQ,
www.theiia.org/Quality
ISO 9001 Auditing Practices Group Guidance on: How to add value during the audit process, Date: 14 October 2004, International Organization for Standardization and International Accreditation Forum
ISO 9001 Auditing Practices Group Guidance on: The role and value of the audit checklist, Date: 14 October 2004, International Organization for Standardization and International Accreditation Forum
Hortensius., Dick, ISO develops unique standard for auditing ISO 9000 and ISO 14000 systems, NEN,P.O. Box 5059, NL-2600 GB Delft, Netherlands.
Dick Hortensius and Annemarie de Jong, Co-secretaries of the ISO Joint Working Group on Auditing, Netherlands Standardization Institute, NENCombining audits on quality and environmental management systems