Chapter 7 – Developing Audit Trails 1 Process Approach Auditing 5-February-2009 Developing Audit Trails that Make a Difference

Chapter 7 – Developing Audit Trails 2 Process Approach Auditing 5-February-2009 Effective auditing requires identifying audit trails that will make a real difference to the organization The audit must start with the process owner! First understand how the process interacts with the other BMS processes (inputs (KPIVs) / outputs (KPOVs), suppliers / customers) Are the outputs complete (KPOVs)? Do the measures completely demonstrate whether ALL of the outputs are being consistently delivered (quality, delivery, efficiency)? Do the customers agree with the outputs and the measures?

Chapter 7 – Developing Audit Trails 3 Process Approach Auditing 5-February-2009 Does the process owner understand PDCA? Can they demonstrate how it works in their process? What are the CHECKS? How is the data analyzed / STUDIED? What reports are regularly used to identify and ACT upon where improvements are needed? Look for evidence of an effective PDCA cycle / ask the process owner to show any examples of recent improvements driven by their PDCA cycle

Chapter 7 – Developing Audit Trails 4 Process Approach Auditing 5-February-2009 Look at the process measures / improvement goals / plans Audit where the measures show problems Where a process is performing well then audit areas of high risk (FMEA) and/or control of dominant process variables (KPIVs) Look for excessive variation (R&R studies, Cpk reports) and whether the controls are effective Look for excessive waste (DOTWIMP) and see if you can identify the source

Chapter 7 – Developing Audit Trails 5 Process Approach Auditing 5-February-2009 Auditing must focus on process interactions, inputs, outputs and measures. Audit “outside the box”. You never know where you will end up on an audit trail… You might start in manufacturing and end up in purchasing, HR, design, etc. Interaction of Processes Process A Process D Process B Process C