What does the future hold for quality auditors?
There are many types of auditor. Auditors who are employed to audit compliance will still be required, as this approach will be needed to ensure requirements of specifc detailed standards are being met. For those required to audit processes, however, the future is bleak if appropriate auditing/assessment skills and techniques are not used and enhanced over time. In this book we have only covered the basic principles, and these need time and practice to be effective and for the reader to truly understand the principles involved. In other words reading the book without the practice will not build competence.
Our experience shows that the development of these key skills takes time, and as competence builds so auditors create their own style and approach based on the techniques outlined. This approach has created a far more interactive and value adding approach to auditing. Auditors report that they not only fnd out more information quicker, but that they are also fnding out value adding areas for improvement that would not have been identifed solely from compliance auditing.
These are key skills that need to be mastered for the future. In addition auditors need to be much more business aware, with an understanding at least at an overview level of the different management skills and techniques used within an organization. This may include understanding fnance, health and safety, new product development, improvement techniques, asset management and strategy and business planning for example, all of which affect either process or system management auditing. This is not an exhaustive list and we are not saying you need to be an expert in all areas, which is impossible. But auditors will need an appreciation of these other areas in order to audit the ‘joined-up’ nature of both processes and systems and to help drive the need for them to improve and change.
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Process Management Auditing for ISO 9001:2008
Why do organizations want or need this?
For many years auditing has often been seen to add little value, providing management with predominantly low-level information on which to base decisions. This has mainly been provided by compliance based audits or audit reports that do not provide information to management that either stimulates the need for change or identifes risks of which they were not previously aware.
But this is precisely the information that management need and want.
Auditing, both third party and internal, is a cost to organizations, and by not providing the required information that adds value, auditors will be doing their employers and customers a disservice. As importantly, they are also giving people the opportunity to reduce the importance of auditing and auditors. In such a situation, organizations quite naturally look for other solutions to their problems and if that means not using auditors in the traditional manner then so be it.
Very few organizations fail to understand the need for improvement and change to enhance their performance. Auditors have a vital role to play, but only if they adopt the techniques and approaches required.
As an organization’s business management system evolves, so its complexity, scope and maturity changes. This is quite natural and as the management system changes so the role of the auditor will also change and be enhanced over time.
This changing state will provide further opportunity for auditors but they will also require enhanced auditing techniques, methods and approaches to give management the information they need.
As we have already seen, systems and processes are living entities, they are the real world in which we work and operate. Auditing is a measurement of performance in that it should identify areas of nonconformance and business risk to the achievement of process and system objectives. An example audit report is shown below in Figure 10.1, which was created following an audit of an organization’s fulflment process. In doesn’t matter that you do or do not understand what fulflment is in detail, what matters is the underlying auditing principles that have been applied.
To help with understanding the report:
• Page 1 covers the risks to the delivery of objectives.
• Pages 2 to 6 cover the analysis of data to identify where potential risks may exist. These can be seen by comparing scores from different groups of people taking part as well as the absolute scores.
• Page 6 covers specifc nonconformances (in this case there aren’t any).
Conclusion and the way forward
65
In the example below:
• Audit scores at 40% represent ‘OK performance’, i.e. compliance.
• Scores above 40% indicate increasing levels of effectiveness of activities in delivering the objectives.
• Scores below 40% indicate areas of risk or nonconformances that need to be addressed.
Overall Result: 49.6 % – Bronze Level
Based on the evidence provided by the people taking part in the assessment the results show that your organisation has met the minimum level required to be classifed as meeting the requirements of the framework from which this assessment was created. Congratulations, you have achieved our Bronze Award.
Overview & Result against Performance Drivers
Performance Driver
Description %
1 The relationship with suppliers is managed and effective 33.8 2 The purchasing process is controlled to ensure it is effective 50.6 3 Everyone involved in the process works together as a team 57.3 4 Supplier and purchase order information is accurate and maintained 47.6
5 Suppliers deliver what they are asked to 48.4
6 The planning process is managed and controlled 55.1
7 Customer service levels are achieved 42
8 Forecasts are accurate and updated in a timely manner 41 .8
9 Inventory value and fll rate are managed 56.3
1 0 Air freight spending is justifed and controlled 48
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Process Management Auditing for ISO 9001:2008
PERFORMANCE BY MAIN INVOLVEMENT GROUPS
People taking part in this assessment were asked to identify their main involvement. The difference in perception between these groups measured against the performance drivers is shown below.
You can:
• Consider these differences and where they may affect performance, this may identify risk areas
• Review any specifc elements where individual groups have a low result
• Understand any real gaps between the perception of different groups
80 60 40 20
0 1 2 3 4 5 6 7 8 9 1 0
Performance Drivers
Average % Response
1 00
Date: 17/08/2009BSI/PM: Siobhan FitzgeraldModifications: Approval of issue Operator: Nora Dawson 7769Department:Modifications:Date:Signature:
File name: 2009-01 730_Perfomance drivers bar graph_01 a.eps BIP 201 5
Performance Driver
Group 1 2 3 4 5 6 7 8 9 1 0
Buy products/services 26% 55.9% 65.2% 58.9% 47.4% 59.2% 50.4% 41 .3% 64.8% 56%
Plan and forecast inventory 60.5% 64.8% 51 .4% 57.1 % 69.4% 45.7% 58.1 % 71 .9% 54.3%
Manage and launch products 55% 35.8% 45.5% 37.1 % 44.3% 31 .1 % 26% 1 6.7% 20% 40%
Coordinate and manage logistics
40% 74.4% 73.3% 82.9% 54.3% 80% 60% 80%
Manage warehouse teams 32.5% 35.1 % 33.3% 37.9% 48.6% 37.5% 42.5% 20% 46.7% 20%
Manage non-warehouse teams
30% 21 .2% 1 8.8% 22.9% 37.1 % 1 4.7% 24% 20% 20%
Sell products 45.7% 50% 30% 30% 37.5% 30% 33.3% 40% 50%
Conclusion and the way forward
67
My main involvement in Planning and Purchasing process is
Date: 17/08/2009BSI/PM: Siobhan FitzgeraldModifications: Approval of issue Operator: Nora Dawson 7769Department:Modifications:Date:Signature:
File name: 2009-01 730_Perfomance drivers bar graph_01 b.eps BIP 201 5
Buy products/services
Date: 17/08/2009BSI/PM: Siobhan FitzgeraldModifications: Approval of issue Operator: Nora Dawson 7769Department:Modifications:Date:Signature:
File name: 2009-01 730_Perfomance drivers bar graph_01 b.eps BIP 201 5
Plan and forecast inventory
Date: 17/08/2009BSI/PM: Siobhan FitzgeraldModifications: Approval of issue Operator: Nora Dawson 7769Department:Modifications:Date:Signature:
File name: 2009-01 730_Perfomance drivers bar graph_01 b.eps BIP 201 5
Manage and launch products
Date: 17/08/2009BSI/PM: Siobhan FitzgeraldModifications: Approval of issue Operator: Nora Dawson 7769Department:Modifications:Date:Signature:
File name: 2009-01 730_Perfomance drivers bar graph_01 b.eps BIP 201 5
Coordinate and manage logistics
Date: 17/08/2009BSI/PM: Siobhan FitzgeraldModifications: Approval of issue Operator: Nora Dawson 7769Department:Modifications:Date:Signature:
File name: 2009-01 730_Perfomance drivers bar graph_01 b.eps BIP 201 5
Manage warehouse teams
Date: 17/08/2009BSI/PM: Siobhan FitzgeraldModifications: Approval of issue Operator: Nora Dawson 7769Department:Modifications:Date:Signature:
File name: 2009-01 730_Perfomance drivers bar graph_01 b.eps BIP 201 5
Manage non-warehouse teams
Date: 17/08/2009BSI/PM: Siobhan FitzgeraldModifications: Approval of issue Operator: Nora Dawson 7769Department:Modifications:Date:Signature:
File name: 2009-01 730_Perfomance drivers bar graph_01 b.eps BIP 201 5
Sell products
The largest differences are likely to indicate that there may be business risks. The most signifcant differences are:
Performance Driver Highest Lowest %
difference 6 The planning process is managed and
controlled
Coordinate and manage logistics
Manage non-warehouse teams 65.3
1 0 Air freight spending is justifed and controlled
Coordinate and manage logistics
Manage warehouse teams 60
4 Supplier and purchase order information is accurate and maintained
Coordinate and manage logistics
Manage non-warehouse teams 60
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Process Management Auditing for ISO 9001:2008
PERFORMANCE DRIVERS WITH HIGHEST SCORES – AREAS OF STRENGTH Listed below are the strongest areas. Where they are above 60% they may be considered as a strength.
Performance Driver %
3 Everyone involved in the process works together as a team 57.3
9 Inventory value and fll rate are managed 56.3
6 The planning process is managed and controlled 55.1
Analysis:
For each of these strengths, reviewing the differences between each department/team/function may indicate where further improvement could be made. Where a ‘%’ is shown without a number this indicates this department/team/function were not asked about this performance driver.
80
60
40
20
0
3 9 6
Date: 17/08/2009BSI/PM: Siobhan FitzgeraldModifications: Approval of issue Operator: Nora Dawson 7769Department:Modifications:Date:Signature:
File name: 2009-01 730_Analysis bar graph_01 b.eps BIP 201 5
Operations
Date: 17/08/2009BSI/PM: Siobhan FitzgeraldModifications: Approval of issue Operator: Nora Dawson 7769Department:Modifications:Date:Signature:
File name: 2009-01 730_Analysis bar graph_01 b.eps BIP 201 5
Planning
Date: 17/08/2009BSI/PM: Siobhan FitzgeraldModifications: Approval of issue Operator: Nora Dawson 7769Department:Modifications:Date:Signature:
File name: 2009-01 730_Analysis bar graph_01 b.eps BIP 201 5
Product Management
Date: 17/08/2009BSI/PM: Siobhan FitzgeraldModifications: Approval of issue Operator: Nora Dawson 7769Department:Modifications:Date:Signature:
File name: 2009-01 730_Analysis bar graph_01 b.eps BIP 201 5
Purchasing
Date: 17/08/2009BSI/PM: Siobhan FitzgeraldModifications: Approval of issue Operator: Nora Dawson 7769Department:Modifications:Date:Signature:
File name: 2009-01 730_Analysis bar graph_01 b.eps BIP 201 5
Sales
Conclusion and the way forward
69
PERFORMANCE DRIVERS WITH LOWEST SCORES – AREAS OF IMPROVEMENT Listed below are the weakest areas, which indicate an opportunity for real improvement.
Performance Driver %
1 The relationship with suppliers is managed and effective 33.8 8 Forecasts are accurate and updated in a timely manner 41 .8
7 Customer service levels are achieved 42
Analysis:
For each of these improvement areas, further investigation of the differences will identify possible improvement actions.
Results by Departments/Functions/Teams
Where a group is not shown they were not asked about this performance driver.
1
8
7 Performance
Driver
34%
46.7%
26%
25.7%
57.8%
1 7.1 %
41 .3%
42.2%
42.4%
40.7%
24.3%
50.4%
47.7%
Date: 17/08/2009BSI/PM: Siobhan FitzgeraldModifications: Approval of issue Operator: Nora Dawson 7769Department:Modifications:Date:Signature:
File name: 2009-01 730_Performance drivers (Horizontal) bar graph_01 a.eps BIP 201 5
Date: 17/08/2009BSI/PM: Siobhan FitzgeraldModifications: Approval of issue Operator: Nora Dawson 7769Department:Modifications:Date:Signature:
File name: 2009-01 730_Performance drivers (Horizontal) bar graph_01 b.eps BIP 201 5
Operations
Date: 17/08/2009BSI/PM: Siobhan FitzgeraldModifications: Approval of issue Operator: Nora Dawson 7769Department:Modifications:Date:Signature:
File name: 2009-01 730_Performance drivers (Horizontal) bar graph_01 b.eps BIP 201 5
Product Management
Date: 17/08/2009BSI/PM: Siobhan FitzgeraldModifications: Approval of issue Operator: Nora Dawson 7769Department:Modifications:Date:Signature:
File name: 2009-01 730_Performance drivers (Horizontal) bar graph_01 b.eps BIP 201 5
Sales
Date: 17/08/2009BSI/PM: Siobhan FitzgeraldModifications: Approval of issue Operator: Nora Dawson 7769Department:Modifications:Date:Signature:
File name: 2009-01 730_Performance drivers (Horizontal) bar graph_01 b.eps BIP 201 5
Planning
Date: 17/08/2009BSI/PM: Siobhan FitzgeraldModifications: Approval of issue Operator: Nora Dawson 7769Department:Modifications:Date:Signature:
File name: 2009-01 730_Performance drivers (Horizontal) bar graph_01 b.eps BIP 201 5
Purchasing
70 Process Management Auditing for ISO 9001:2008
Widest variance between Departments/Teams/Functions
The highest and lowest scores are:
1
87 PerformanceDriver
46.7%
26%
57.8%
17.1%
24.3%
50.4%
Date: 1 7/08/2009
BSI/PM: Siobhan Fitzgerald Modifications: Approval of issue
Operator: Nora Dawson 7769
Department: Modifications: Date: Signature:
File name: 2009-01730_Performance drivers (Horizontal) bar graph_02a.epsBIP 2015
Date: 1 7/08/2009
BSI/PM: Siobhan Fitzgerald Modifications: Approval of issue
Operator: Nora Dawson 7769
Department: Modifications: Date: Signature:
File name: 2009-01730_Performance drivers (Horizontal) bar graph_02b.epsBIP 2015 Planning
Date: 1 7/08/2009
BSI/PM: Siobhan Fitzgerald Modifications: Approval of issue
Operator: Nora Dawson 7769
Department: Modifications: Date: Signature:
File name: 2009-01730_Performance drivers (Horizontal) bar graph_02b.epsBIP 2015 Product Management
Date: 1 7/08/2009
BSI/PM: Siobhan Fitzgerald Modifications: Approval of issue
Operator: Nora Dawson 7769
Department: Modifications: Date: Signature:
File name: 2009-01730_Performance drivers (Horizontal) bar graph_02b.epsBIP 2015 Purchasing
Conclusion and the way forward
71
Results for Main Involvement Groups taking part
Where a group is not shown they were not asked about this performance driver.
1
8
7 Performance
Driver
20%
41 .3%
33.3%
58.1 % 1 6.7%
20%
60%
55%
26%
30%
32.5%
40%
26%
30%
50.4%
45.7%
24%
42.5%
Date: 17/08/2009BSI/PM: Siobhan FitzgeraldModifications: Approval of issue Operator: Nora Dawson 7769Department:Modifications:Date:Signature:
File name: 2009-01 730_Performance drivers (Horizontal) bar graph_03a.eps BIP 201 5
My main involvement in Planning and Purchasing process is to...
Date: 17/08/2009BSI/PM: Siobhan FitzgeraldModifications: Approval of issue Operator: Nora Dawson 7769Department:Modifications:Date:Signature:
File name: 2009-01 730_Performance drivers (Horizontal) bar graph_03b.eps BIP 201 5
Buy products/services
Date: 17/08/2009BSI/PM: Siobhan FitzgeraldModifications: Approval of issue Operator: Nora Dawson 7769Department:Modifications:Date:Signature:
File name: 2009-01 730_Performance drivers (Horizontal) bar graph_03b.eps BIP 201 5
Plan and forecast inventory
Date: 17/08/2009BSI/PM: Siobhan FitzgeraldModifications: Approval of issue Operator: Nora Dawson 7769Department:Modifications:Date:Signature:
File name: 2009-01 730_Performance drivers (Horizontal) bar graph_03b.eps BIP 201 5
Manage and launch products
Date: 17/08/2009BSI/PM: Siobhan FitzgeraldModifications: Approval of issue Operator: Nora Dawson 7769Department:Modifications:Date:Signature:
File name: 2009-01 730_Performance drivers (Horizontal) bar graph_03b.eps BIP 201 5
Coordinate and manage logistics
Date: 17/08/2009BSI/PM: Siobhan FitzgeraldModifications: Approval of issue Operator: Nora Dawson 7769Department:Modifications:Date:Signature:
File name: 2009-01 730_Performance drivers (Horizontal) bar graph_03b.eps BIP 201 5
Manage warehouse teams
Date: 17/08/2009BSI/PM: Siobhan FitzgeraldModifications: Approval of issue Operator: Nora Dawson 7769Department:Modifications:Date:Signature:
File name: 2009-01 730_Performance drivers (Horizontal) bar graph_03b.eps BIP 201 5
Manage non-warehouse teams
Date: 17/08/2009BSI/PM: Siobhan FitzgeraldModifications: Approval of issue Operator: Nora Dawson 7769Department:Modifications:Date:Signature:
File name: 2009-01 730_Performance drivers (Horizontal) bar graph_03b.eps BIP 201 5
Sell products
Figure 10.1 Results by performance driver
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Process Management Auditing for ISO 9001:2008
STATEMENTS THAT INDICATE POTENTIAL RISK No nonconformances have been set for this assessment.
The fact that there are no nonconformances is interesting as the report therefore shows how effective the process is above the conformance level. This is the very information that managers need to know to bring about change to what may happen in the future and therefore reduce the risk of not meeting their business objectives.
Welcome to the new world of auditing effectiveness and performance.
In the foreword we outlined the emerging role in auditing what people actually do, not just what they say they do or write down, and the effect of this on the delivery of business objectives. These auditing skills build upon those contained in this book, and out of necessity involve collecting vastly more data from different sources and then analysing it to report against business objectives, values and operational principles. IT solutions are often used to collect and manage the range and volume of data needed to do this effectively.
IT also provides solutions to analyse this mass of data and, through this, to both understand how the complexity of people working together creates business outcomes and to identify business risks. The skills, knowledge and tools to achieve this are similar to those covered in this book, but by their nature and data volume need to be signifcantly enhanced, and IT provides this support.
Applying the tools in this book will take you a long way down the path to effective auditing, although they will not take you all of the way. To address the constraints and frustrations that you will inevitably feel as you and your skills develop, you may well need to consider the use of IT to help you make the next move – but that is for the future once you have mastered the frst step.
‘LEARN – CHALLENGE – CHANGE – RENEW and change to auditing behaviours and true risk.’
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