Process Approach to Internal Auditing.ppt

Process Approach to Internal Auditing.

1. 1
So where in ISO is Process?
Clause 0.2

This International Standard promotes the adoption
of a process approach when developing,
implementing and improving the effectiveness of a
quality management system…. [ISO 9001:2000
page v]

2. 2
Why are internal audits conducted?
Obtain factual input for management decisions?
---or---
Produce data needed to receive certification?
Improve documentation?
Enforce conformity?

3. 3
The Old-Fashioned Way of Auditing
Quality audits focused on procedures and not on
quality
Auditors did not examine costs
“Quality” was how well an outcome met the needs
of those for whom it was provided

Good quality = satisfied the needs

Bad quality = failed to meet the needs

4. 4
The Old-Fashioned Way of Auditing
Companies ignored outcomes and customer
satisfaction when auditing
Auditors were looking to “check the box” leaving
performance ignored and unchallenged

Conformity auditing looking to establish if specific
requirement had been met
Requirement may have focused on a task, not
performance result or output

5. 5
Document Review and Approval
Auditor looked to see if documents had been
reviewed and approved by authorized person
Did Auditor look for:

Competency of approver?

Why change was made?

Did change improve performance?

6. 6
More Effective Methodology Needed
Focuses on performance, not just conformity
Management needs to know:

Does performance meet targets?

Are there opportunities for improving performance?

Are there processes that do not support the workers?

7. 7
As an Auditor…
If I invent your process then I am auditing my
version of your company… and that version
may NOT exist.
Conflict of Interest!!!

8. 8
Process Approach to
Internal Auditing

9. 9
Process Input-Output Model

10. 10
Performance Process

11. 11
Performance Process Audit Plan

12. 12
What does you Quality Manual look
like?
1. Introduction
2. Scope and Exclusions
3. Definitions and Acronyms
4. Quality Management System Requirements
5. Management Responsibility
6. Human Resources
7. Product Realization
8. Measurement, Analysis and Improvement
Appendix -- process maps or outlines

13. 13
Process Approach to Audit Plans
Based on processes that achieve organization’s
objectives
Requires auditor to know what the processes are
prior to conducting audit

ISO/IEC 17021 (Stage 1 and Stage 2)

Code of Practice for Registrars

14. 14
Process Approach to Audit Plans
Common processes, for example:

Business management

Marketing and sales

Resource management

Purchasing
Product / service realization processes are different
for each organization

Plan shows audit trail through business processes
and across department boundaries

15. 15
Process Approach to Checklists
Does not require detailed checklist
Auditor can be guided by their understanding of
the Standard

16. 16

17. 17

18. 18
Process Approach to Audit
Start with top management and business
management processes
Continue with resource management processes,
establishing linkages

Effective resource management processes will provide
competent employees and capable equipment to other
processes
Continue with other processes from marketing to
delivery

19. 19
Value of the Process Approach

Focuses on results, not procedures

Determines effectiveness of the management system

Evaluates the results the system delivers

Tests linkages between departments and processes

Follows flow of work throughout organization

Determines if operations are under control and controls are
effective

Allows judgment on significance of findings

Helps determine depth of problems across organization

Focuses on benefits of correcting nonconformities related
to improving organizational effectiveness

20. 20
The Process Approach requires a
change in attitude across the
organization!

21. 21
What the Process Auditing Approach
Provides
Process Auditing provides:

Data for managerial decisions on growth, technology,
staff development, products / processes based on
current performance, not just current conformity

Information on whether performance meets targets

Information on opportunities for improving
performance through better control of processes

Information on making processes more effective and
more efficient

22. 22
Five Basic Questions
Basic questions can apply even though the “specific
questions” will be different:

What are you trying to do?

How do you make it happen?

How do you know you are doing it right?

How do you know it’s the best way of doing it?

How do you know it’s the right thing to do?

23. 23
Five Basic Questions at Three Levels
Business Level – Audit results should make the
auditor confident that the organization:

Knows what it is trying to do

Knows how to make it happen

Knows that it is doing the right things

Knows that it is doing it in the best possible way

Is managing performance

24. 24
Five Basic Questions at Three Levels
Managerial Level – Audit results should make the
auditor confident that management:

Knows what the process aims to achieve

Knows how to design and cause processes to achieve
results

Knows that it is doing the right things

Knows that it is doing it in the best possible way

Is regulating performance

25. 25
Five Basic Questions at Three Levels
Operational Level – Audit results should make the
auditor confident that individuals:

Know what they are supposed to do

Know they are doing the right things

Know they are doing them in the best possible way

Are regulating their own performance

26. 26
Summary
Internal auditing using process approach

Can take internal audit team from mission statement to
employee contributions

Identifies clear linkages between interconnected
processes

Ensures requirements of the Standard fit with processes

Eliminates weaknesses of other approaches

Enables internal audit team to establish that the
organization is managing processes effectively