Forensic Audits of Your QEHS Management System

© 2006 ABS Consulting, Inc.

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Is your organization realizing the value you expect from your management system? Management systems are time-consuming & expensive; organizations have a right to expect a return for these expenditures Organizations should expect to capture tremendous, tangible value from the effective application of management systems ROI & Management Systems

Do I need a forensic approach? QEHS Management System Questions: –Management system –Internal auditors –Questions –Tools in use

Who are the customers of a QEHS forensic audit?

Is your management system:  In decline – performance-wise?  Stagnating?  Stalled – gone into ‘limbo’ or ‘la-la land’?  Piling up a corrective action list?

Are the internal auditors:  Gravitating to their ‘comfort’ zones?  Penetrating deep enough into issues?  Providing usable & accurate information?  Slid into a ‘routine’

Are the right questions being asked?  Penetrating  May cause controversy  May stimulate emotion  Require ‘absolutes’ in the response

Are the right tools being employed?  Incident Investigation  Root Cause Analysis (RCA)  Meaningful measures, including what is being measured – for informed decision making  Are the tools being used correctly?

If you said “no” to any of the previous questions:  A forensic audit may be needed  A change in audit staff may be needed  An ‘outsider’ may need to be used  A new approach may need to be developed

Areas of weakness in a QEHS MS Typical areas prone to dying off is not used or stimulated internally: –Quality MS –Environmental MS –Health and Safety MS –Integrated MS

Quality Management Principles 1.Customer Focus 2.Leadership 3.Involvement of People – Resource Management 4.Process Approach – Product Realization 5.System Approach – Cause Analysis 6.Continual Improvement 7.Factual Approach to Decision Making – Monitor, Measure, Analyze 8.Mutually Beneficial Supplier Relationship

EXPECTED SERVICE by the Customer PLANNED SERVICE by the Company PRODUCED SERVICE by the Company PERCEIVED SERVICE by the Customer Monitor & Measure Company Performance Monitor & Measure Customer Satisfaction The Loop

If your customer is:Then your customer: DissatisfiedHas probably left forever Marginally satisfiedIs casual (any supplier will do) Basically satisfiedIs borderline or uncommitted Very satisfiedIs a return customer i.e. retained Extremely satisfiedIs loyal, appreciates your work, tells others, and tolerates a rare mistake Customer Retention Levels

EHS ELEMENTS EHS management system elements: 4.1 General requirements 4.2 EHS policy & commitment 4.3 Planning Environmental aspects & Hazard ID Legal and other requirements Objectives, targets and programs

Hazard Identification Use a matrix to record the results Method People Location Source of Harm? Who/what Harmed? How Harm Occurs? Any positive answer means a hazard exists

EHS ELEMENTS 4.4 Implementation and operation Resources, roles, responsibility and authority Competence, training and awareness Communication & Consultation Documentation Control of documents Operational control Emergency preparedness and response

EHS ELEMENTS 4.5 Checking Monitoring and measurement Evaluation of compliance Nonconformity, corrective and preventive action Control of records Internal audit 4.6 Management review

Integrated Forensic Approach Risk assessment - equally addresses safety risks, environmental impacts and process failures Regulations management - have captured regulations for quality, environment, health, safety, security, etc and outlined/mapped their impact on the QEHS MS The integrated approach makes it easier to compare risks occurring in different parts of the business

Cross-Functional Team Review: Quality, Design, Facilities, Health, Safety, Environment, Security, Purchasing, Warehouse, Production Common MS Elements Common Procedures Defined by Users Owned by Supervisors Manage Core Business Processes Enabling Tool t Logistics Concerns Environmental Concerns Health Concerns Safety Concerns Technical Specifications & References Process Definitions Productivity Energy Reduction Incident Rates Illness Rates Customer Satisfaction Key Business Questions Key Processes Drive the Business Measurement Criteria Sample Measures Risk Mitigation QEH&S Improvements Efficiency Improvements Compliance Burdens Facility and Equipment Concerns EnvironmentHealth & Safety Business Needs & Continual Improvement Quality Integrated QEH&S

Thanks for your attention Eliminating/Minimizing Risk; Preserving the Environment; Providing Quality Products/Services; Having a Safe Work Place; and Protecting Employee’s Health is Everybody’s Job

Ron Henderson Manager, EH&S Training and Management Systems (281)