SUPPLIER AUDITPAK 2000

SUPPLIER AUDITOR
TRAINING COURSE

A. Austin 2002 - 2010 All Rights reserved

About the Tutor

15 yyears experience
p
implementing
p
g management
g
systems (Quality, Environmental, Health & Safety,
Business Continuity)
y)
Former Director of engineering company and
market research company
Over 200 successful registrations to date.
A th off Auditpak
Author
A dit k range off Auditor
A dit Training
T i i
Courses

A. Austin 2002 - 2010 All Rights reserved

Purpose
p
of course
To p
provide delegates
g
with a thorough
g g
grounding
g in
the concepts and techniques of supplier auditing
to enable them to p
perform effective supplier
pp
audits.

A. Austin 2002 - 2010 All Rights reserved

COURSE CONTENT

Purpose
p
of Supplier
pp
Auditing
g
Principles of management systems
Audit planning
The audit process
Auditing techniques and auditor behaviour

A. Austin 2002 - 2010 All Rights reserved

Objectives of Supplier auditing

To ensure the suppliers quality

management system is adequate for the
needs of our product
T ensure the
To
th suppliers
li quality
lit
management system is being operated
effectively,
ff ti l particularly
ti l l iin respectt off
products we intend to purchase.

A. Austin 2002 - 2010 All Rights reserved

AUDITPAK-2000

PRINCIPLES OF PROCESS-BASED
MANAGEMENT SYSTEMS

A. Austin 2002 - 2010 All Rights reserved

WHAT IS PROCESS MANAGEMENT

What is a management system?
A framework of business processes working together to achieve the
stated business objectives, and customer and other stakeholder needs.
What is a process?
Set of interrelated or interacting activities which transform inputs into
outputs
What is process management?
The effective control of a series of activities that converts inputs into
outputs whilst both adding value and continually improving
performance.

A. Austin 2002 - 2010 All Rights reserved

SIMPLE PROCESS MODEL

Specification

INPUTS

Personnel

Design

Equipment

Materials

Methods

PROCESS

OUTPUT
Product or service

THE QUALITY OF THE OUTPUT RELIES

ON THE QUALITY OF THE INPUTS
A. Austin 2002 - 2010 All Rights reserved

PDCA CYCLE ((Continuous improvement)

p
)
Plan: establish the objectives
and
d processes necessary to
deliver results in accordance
with customer requirements and
the organization's policies.
Do: implement the processes.
Check: monitor and measure
processes and product against
policies objectives and
policies,
requirements for the product
and report the results.
Act: take actions to continually
improve process performance.
PDCA can b
be applied
li d tto any
process within an organisation.
A. Austin 2002 - 2010 All Rights reserved

Where PDCA can be used

PDCA is a methodology
gy that can be applied
pp
to any
y
process.
It can be applied at all levels of an organisation
from high-level strategic processes to simple
routine operational activities
activities.
PDCA is not a one-off event. It is a dynamic
iterative methodology
methodology.
Most organisations will already have
some PDCA-type
PDCA t
methodologies
th d l i iin
place for some processes.

A. Austin 2002 - 2010 All Rights reserved

ISO 9001:2000 Process model

CONTINUAL IMPROVEMENT OF THE
QUALITY MANAGEMENT SYSTEM

Management
Responsibility

CUSTOMER

Measurement,
analysis &
improvement

Resource
management

Customer
satisfaction

CUSTOMER
Requirements

Product
realisation

Information flow

A. Austin 2002 - 2010 All Rights reserved

Product or
service

Value-adding activities

Structure of Management
g
Systems
y
The main policy document that establishes
the Management System and how it meets the
requirements of the applicable standards
Policy
P
li
Manual
Core business
procedures
Supporting processes
Quality Procedures
Work Instructions
Supplemented by
supporting documents

A. Austin 2002 - 2010 All Rights reserved

The core business processes that describe

the activities required to Implement the
management system and meet the policy
laid down in the Policy Manual
A description
p
of the method by
y which
system activities are managed
A description of how a specific task is
laid out

Policy,
y, objectives
j
and processes
p
POLICY

Contains the Mission Statement for

the Management
g
System
y

OBJECTIVES

Specify the goals to be achieved in

order for the Mission to be fulfilled

PROCESSES

Activities within the organisation

whose effectiveness can be
measures by
b the
th degree
d
to
t which
hi h
they contribute to the fulfilment of
the objectives
objectives.

A. Austin 2002 - 2010 All Rights reserved

Key
y aspects
p
of a Q
QMS

Ensures can meet customers requirements

Operates its processes in a controlled and effective
manner.
Uses appropriate methods of verification of product
Ensures staff are competent to undertake activities
assigned to them
Effectively handles changes to customer requirements
Demonstrates top management commitment to quality
Operates within a continuous improvement culture

A. Austin 2002 - 2010 All Rights reserved

Evidence of effective operation of a QMS

ISO 9001 registration

Results of external audits
Results of internal audits
System being regularly updated
Effective training for staff
Top management commitment
Ch ki audit
Checking
di samples
l against
i
procedure
d
requirements
Eff ti handling
Effective
h dli off nonconformities
f
iti
History of supplying acceptable product

A. Austin 2002 - 2010 All Rights reserved

SUPPLIER AUDITPAK 2000

PLANNING THE AUDIT

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OVERVIEW OF THE AUDIT PROCESS

Determine the criteria
that need to be met

Collect objective evidence

Evaluate objective evidence

against criteria
Report on compliance or
otherwise of process

A. Austin 2002 - 2010 All Rights reserved

PRINCIPLES OF AUDITING

Ethical Conduct

Fair presentation

Due professional care

Independence

E id
Evidence-based
b
d approach
h

A. Austin 2002 - 2010 All Rights reserved

Planning
g the audit ((1))

In p
planning
g the audit,, bear in mind the p
purpose
p
of
the audit.
To ensure the suppliers
supplier s quality management
system is adequate for the needs of our product
To ensure the suppliers
supplier s quality management
system is being operated effectively, particularly in
respect of products we intend to purchase
purchase.
Our interests are selfish. We are interested
primarily in our own products and services.

A. Austin 2002 - 2010 All Rights reserved

Planning the audit (2)

Prior to the audit: Clarify purpose of the audit (e.g. assess
new supplier
supplier, investigate causes of
unacceptable product etc.)
Identify any issues relating to supplier
Agree time and length of audit
Assemble any relevant documentation
(drawings, purchase orders etc.) relating
to the supplier.
supplier
Draw up checklists and timetable

A. Austin 2002 - 2010 All Rights reserved

Factors affecting
g audit p
planning
g

There are a number of factors to be taken into

account in planning the audit:
State of the supplier
suppliers
s quality system
Whether the supplier is currently supplying product
to us
Time available
These will have an impact
p
on the type
yp of activities
undertaken, however the basic method of audit
planning
p
g remains the same.

A. Austin 2002 - 2010 All Rights reserved

Audit checklists
The purpose of a checklist is:
is: To guide the course of an audit
To help control the pace of an audit
audit.
To provide a structured list of items to be
questioned and evaluated
evaluated.
A checklist is an aide
aide-memoire
memoire and
should not be followed blindly and
dogmatically
A checklist is the servant
servant, not the master
A. Austin 2002 - 2010 All Rights reserved

Benefits of checklists
Use as a record of procedures or events established
A source of information to be used in later audits
Help
p selection of the sample
p of activities being
g assessed
Structure the audit activities
Assist in the p
preparation
p
of audit reports
p
Help the assessor remain on course
Encourages
g research of the subject
j
of the audit
In creating a checklist consider: The time available
The questions that need to be answered
The objectives of the audit

A. Austin 2002 - 2010 All Rights reserved

Audit Checklist example

Production
Are latest issue drawings available
Are
A it
items protected
t t d from
f
contamination
t i ti
Are items correctly identified
Are inspected and un-inspected items
segregated
g g
Are staff competent
Is calibrated inspection equipment used

A. Austin 2002 - 2010 All Rights reserved

Audit Timetable

Provides
P
id reference
f
point
i t tto ensure audit
dit
is completed in time
Should define the main tasks to be
undertaken
Should be communicated to supplier to
ensure appropriate
pp p
staff are available.

A. Austin 2002 - 2010 All Rights reserved

Example
p Audit Timetable
09.00 09.30
09.30 10.30

10.30 11.30
11.30 12.30
12.30 13.00
13.00 14.30
14.30 15.00
15.00 15.30
15.00 16.30

A. Austin 2002 - 2010 All Rights reserved

Opening
p
g meeting
g
Review of internal audits, external
audits and management review
meetings
ti
Review of non-conformances and
customer complaints
Review sales office activities
LUNCH
Review production activities
Review stores and despatch
Report preparation
Closing meeting

Preparing
p
g for an audit
Supplier audits are normallyy carried out on a
planned basis, so you should have plenty of time
to prepare.
Prior to commencing an audit: Familiarise yourself with the documentation the
supplier has provided
Prepare an audit checklist and timetable
Check that the suppliers key staff are going to be
available on the day of the audit.
Obtain relevant records of supplier performance
(delivery performance, non-conformances etc.)
A. Austin 2002 - 2010 All Rights reserved

Items to take on an audit

Audit plan/checklist
Copies of system documentation provided by the supplier
Copy
py of standard, if relevant ((i.e. ISO 9001:2000 or ISO
9004:2000)
Notepad and pencil (Digital camera if available)
Copies of any supplier performance reports or nonconformances.
Details of any process capabilities you wish to verify at the
suppliers.
Any measuring instruments you wish to use at the
suppliers

A. Austin 2002 - 2010 All Rights reserved

SUPPLIER AUDITPAK 2000

THE AUDIT PROCESS

A. Austin 2002 - 2010 All Rights reserved

The audit process

Opening
meeting
g

Review
QMS

A. Austin 2002 - 2010 All Rights reserved

Collect
evidence

Closing
meeting

Reporting
&
f ll
follow-up

Opening
p
g meeting
g
Opening
meeting

Review
QMS

Collect
evidence

Closing
meeting

Introduce audit team

Confirm purpose of audit
Review audit timetable
Clarify any health & safety issues
Cl if any confidentiality
Clarify
fid ti lit issues
i
Check arrangements for lunch etc.

A. Austin 2002 - 2010 All Rights reserved

Reporting
&
follow-up

Review of Q
Quality
y System
y
Opening
O
i
meeting

Review
QMS

Collect
evidence

Closing
meeting

Reporting
p
g
&
follow-up

Review external audits

Review internal audits
Review management review minutes
Review non
non-conformances
conformances
ASK YOURSELF
Is this company committed to its quality system
Is top management involved and committed
Is it continually improving its system

A. Austin 2002 - 2010 All Rights reserved

Collecting
g evidence
Opening
O
i
meeting

Review
QMS

Collect
evidence

Closing
meeting

Reporting
p
g
&
follow-up

This is done by reviewing the activities of various

departments against procedures by observation,
inspection of records and interview
Do try to verify activities relating to the product you
i t d tto purchase.
intend
h
Be aware there may be some window dressing
Take a wider view
view.
Use the opportunity to impress on all the
importance of supplying good product
product.

A. Austin 2002 - 2010 All Rights reserved

Closing
g meeting
g
Opening
meeting

Review
QMS

Collect
evidence

Closing
meeting

Reporting
R
ti
&
follow-up

Thank all for their co-operation

co operation and
hospitality.
Review your findings what was good
and what needs improving
Explain what will happen in terms of
reporting and follow-up

A. Austin 2002 - 2010 All Rights reserved

Reporting
p
g
Review
QMS

Opening
meeting

Collect
evidence

Closing
meeting

Reporting
&
follow-up

Prepare the report off-site, sending relevant

information to the supplier
Ensure you have objective evidence to substantiate
each problem raised.
Dont forget a recommendation. Are they:

Acceptable no action required

A
Acceptable
t bl action
ti required
i d on raised
i d points
i t
Needs improvement before acceptable as a supplier
Unacceptable
Unacceptable

A. Austin 2002 - 2010 All Rights reserved

Typical
yp
contents of report
p
Opening
O
i
meeting

Review
QMS

Collect
evidence

Closing
meeting

Reporting
p
g
&
follow-up

Purpose of audit
A dit tteam
Audit
Personnel met
A
Areas
reviewed
i
d and
d summary off audit
dit activity
ti it
Summary of findings
P i t which
Points
hi h require
i addressing
dd
i b
by supplier
li
Conclusion

A. Austin 2002 - 2010 All Rights reserved

Follow-up
p
Opening
meeting

Review
QMS

Collect
evidence

Closing
meeting

Reporting
&
follow-up

Ensure supplier is aware of points which

require
q
action.
Ask supplier to provide summary of action to
be undertaken and timetable.
Review suppliers proposed action and accept
or ask supplier to amend
When actions due for completion either visit
again or ask supplier for documentary
evidence
evidence.

A. Austin 2002 - 2010 All Rights reserved

Assessing
g non-ISO 9001 suppliers
pp

Get staff to explain their main

procedures for processing orders and
controlling production.
Consider whether the controls in place
are adequate.
Verify activities are taking place in
accordance with these procedures.
Pay special attention to areas where
problems may occur. This will vary
according
g to the nature of the p
product.

A. Austin 2002 - 2010 All Rights reserved

SUPPLIER AUDITPAK 2000

AUDITING TECHNIQUES

A. Austin 2002 - 2010 All Rights reserved

Performance of the audit

Auditing
g is concerned with the collection and
assessment of OBJECTIVE EVIDENCE.
OBJECTIVE EVIDENCE is:
Evidence that exists
Is
I uninfluenced
i fl
db
by emotion
ti or prejudice
j di
Can be documented
Can be qualitative or quantitative
Can be verified

A. Austin 2002 - 2010 All Rights reserved

Obtaining
g objective
j
evidence
Amongst
g the methods used to collect objective
j
evidence will be:
Reviewing the quality manual and procedures
Check all aspects of operation are covered
Check
Ch k d
documents
t properly
l controlled
t ll d
Questioning
Examination of records and documents
Observing working practises
Verify working practise complies with
documented procedures
A. Austin 2002 - 2010 All Rights reserved

Appropriate
pp p
questioning
q
g
Auditors have to
manage this dynamic

Directors

How do you..?
Explain
p
to me
how..?
Who do you..?

Line Mgrs

Employees

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Show me how.?
T ll me how?
Tell
h
?

DEALING WITH PEOPLE

People are one of the main sources of information

during the audit
Some people are intimidated by the audit process
Some people have had bad experiences in
previous
i
audits
di
Some people misunderstand the purpose of an
audit

A. Austin 2002 - 2010 All Rights reserved

INTERVIEW GUIDELINES

IInterviews
t i
should
h ld b
be h
held
ld with
ith appropriate
i t people
l
Interviews should take place during normal working
h
hours
and
d att th
the workplace,
k l
where
h
practicable
ti bl
People should be put at ease
The purpose of the interview should be explained
Any note taking should be explained
Start by asking them to describe their work
Summarise and review the results of the interview
with the interviewed person
Thank them for their help and co-operation
co operation

A. Austin 2002 - 2010 All Rights reserved

Questioning
Q
g techniques
q

STOP TALKING - LISTEN

Do not ask closed questions
Maintain a 20% talking : 80% listening ratio

USE THE SIX HONEST SERVING MEN

I keep
k
six
i h
honestt serving
i men
They taught me all I knew
Their names were WHAT and WHY and
WHEN
And HOW and WHERE and WHO
WHO
(The Elephant Child - Kipling)

SHOW ME

A. Austin 2002 - 2010 All Rights reserved

Questioning
Q
g techniques
q
Other things to consider: Environment - Needs to be conducive to
interviewing
Complexity of question - Simple questions
are better
Body language - Adopt a non-threatening
attitude
Emotive topics - handle with care
Silence - Use silence to elicit more information

A. Austin 2002 - 2010 All Rights reserved

HOW AUDITING IMPACTS THE

WORKPLACE

Auditing
g can impact
p
on behaviour in the
workplace.
Behaviour is affected by:

Our presence
Our behaviour
Our findings

A. Austin 2002 - 2010 All Rights reserved

AUDITING IMPACTS - PRESENCE

The presence of auditors can be a distraction

The presence of auditors can affect behaviour
The presence of auditors can cause undue worry
and concern

A. Austin 2002 - 2010 All Rights reserved

AUDITING IMPACTS - BEHAVIOUR

Auditors should set a good example in terms of

their behaviour
Before entering a workplace check the health and
safetyy requirements
Where appropriate PPE at all times
Comply with all relevant instructions
Challenge anyone who is not complying with
relevant procedures and instructions

A. Austin 2002 - 2010 All Rights reserved

AUDITING IMPACTS - FINDINGS

The audit findings

g will focus attention on p
particular
aspects of the management system
Ensure your report draws attention to the most
significant findings
Highlight examples of good practise as well as
poor practise
E h i th
Emphasise
the lilimitations
it ti
off a sampling
li exercise
i

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Auditor behaviour
WHAT AN AUDITOR SHOULD DO

Prepare
Learn
Control
A i t
Assist
Observe

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Listen
Obtain
Be polite
B concise
Be
i
Be punctual

Auditor behaviour
AN AUDITOR SHOULD NOT

Be critical
Be side-tracked
Argue
Swear
Be late

A. Austin 2002 - 2010 All Rights reserved

Be sarcastic
Compare
Apportion blame