Internal Auditing
description
Transcript of Internal Auditing
![Page 1: Internal Auditing](https://reader035.fdocuments.net/reader035/viewer/2022062310/568168af550346895ddf6a28/html5/thumbnails/1.jpg)
1
Internal AuditingHow Do We Make This
Thing Work?ASQ Chapter 1205
DiGiovanni’s RestaurantFebruary 18, 2010
Bruce KylesKQC – Kyles Quality Consulting
![Page 2: Internal Auditing](https://reader035.fdocuments.net/reader035/viewer/2022062310/568168af550346895ddf6a28/html5/thumbnails/2.jpg)
First OffWe are not going to talk about the
ISO standard 9001:2008 per seWe want to concentrated on a
couple of bigger issues◦What do we audit◦How do we make them more effective◦How do we get upper management to
see the benefits of internal auditing.Contrast the internal quality audits
with the financials audits.
![Page 3: Internal Auditing](https://reader035.fdocuments.net/reader035/viewer/2022062310/568168af550346895ddf6a28/html5/thumbnails/3.jpg)
Where do we get Audit schedule?Most will get it the standard ways
◦By element◦By Procedures◦By what are schedule was last year◦By what the auditor says he is going
to audit
![Page 4: Internal Auditing](https://reader035.fdocuments.net/reader035/viewer/2022062310/568168af550346895ddf6a28/html5/thumbnails/4.jpg)
Pretty Normal ScheduleInternal Audit Schedule
Process Frequency Month Audit Scheduled Date Completed
Auditor Results
J F M A M J J A S O N D Product Realization
Annual S
Corrective Action
Annual C
Shop Floor Machining
Annual C
Management Review
Annual S C
Contract Review
Annual S
Strategic Planning
Annual S
Purchasing/ Supplier Cntrl
Annual S
Production Machines
Annual S
Internal Audits Annual S
Training Annual S
Calibration Annual C C
Receiving/ Shipping
Annual S
S = Scheduled C = Completed
![Page 5: Internal Auditing](https://reader035.fdocuments.net/reader035/viewer/2022062310/568168af550346895ddf6a28/html5/thumbnails/5.jpg)
Type of BusinessDoesn’t really make any
difference whether the business is:◦Manufacturing – Heavy/light◦Industrial nonmanufacturing◦Service◦Financial
![Page 6: Internal Auditing](https://reader035.fdocuments.net/reader035/viewer/2022062310/568168af550346895ddf6a28/html5/thumbnails/6.jpg)
Maybe we need to change where we look to getting the audits.The first clue on where to go in the
internal audit schedule is the standard.
An audit programme shall be planned, taking into consideration the status and importance of the processes and areas to be audited, as well as the results of previous audits.
One of the things you will find is that you can be your own worst enemy when it comes to setting up the internal audit schedule.
What does your Manual, Procedure, or Work Instruction say about what you have to audit?
![Page 7: Internal Auditing](https://reader035.fdocuments.net/reader035/viewer/2022062310/568168af550346895ddf6a28/html5/thumbnails/7.jpg)
Standard wordingThis procedure applies to all elements of the implemented ISO
9001 quality system at _____________, including observations on suitable working environment. Internal audits will cover all production shifts at a minimum frequency of one complete system audit annually.
![Page 8: Internal Auditing](https://reader035.fdocuments.net/reader035/viewer/2022062310/568168af550346895ddf6a28/html5/thumbnails/8.jpg)
Look AtYour biggest lossesThe goals and objectives of:
◦Upper management◦Individual departments
Corrective ActionsComplaintsPast areas of nonconformances
![Page 9: Internal Auditing](https://reader035.fdocuments.net/reader035/viewer/2022062310/568168af550346895ddf6a28/html5/thumbnails/9.jpg)
One Source of 2010 Schedule
4.2; 25.6; 27.2; 5
7.4; 117.5; 22
8.2; 3PED; 1
2009 Corrective Ac-tions by ISO Section #
Audit; 5
Cus-tomer;
27
In-ter-nal; 10
Supplier; 5
Source 2009 Cor-rective Action
AuditCustomerInternalSupplier
![Page 10: Internal Auditing](https://reader035.fdocuments.net/reader035/viewer/2022062310/568168af550346895ddf6a28/html5/thumbnails/10.jpg)
Problem Areas
7.6; 6
6.2; 5
7.5; 58.2; 48.3; 4
8.5; 4
7.1; 2 7.4; 24.2; 1 5.6; 1
Sections with NCN Written Since 1/1/06
![Page 11: Internal Auditing](https://reader035.fdocuments.net/reader035/viewer/2022062310/568168af550346895ddf6a28/html5/thumbnails/11.jpg)
The audit frequency (interval) may be increased when internal/external product nonconformances or customer complaints occur.
Scope
(Dept/function/area) 1Audit
Frequency Status Audits Completed 1Primary Auditors
J F M A M J J A S O N D
1 DOCUMENT & RECORD CONTROL ANNUAL S 4.2 & 4.3
2 PURCHASING ANNUAL S 7.4
3 PURCHASING OVS ANNUAL S Control of outside supplier services
4 CUSTOMER RELATED PROCESSES ANNUAL S 7.2
5 PRODUCT MEASUREMENT ANNUAL S 7.5 & 8.2
6 CALIBRATION ANNUAL S 7.6
7 PRODUCT ID & TRACEABILITY ANNUAL S 7.5
8 SHIPPING AND RECEIVING ANNUAL S
9 INFRASTRUCTURE ANNUAL S 6.3
10 HUMAN RESOURCES ANNUAL S 6.2
11 CONTROL OF NONCONFORMING ANNUAL S 8.3
12 CORRECTIVE ACTION SEMI ANNUAL S S 8.5
13 CONTINUOUS IMPROVEMENT &
PREVENTIVE ACTION ANNUAL 8.5
14 INTERNAL AUDIT SEMI ANNUAL S S 8.2
15 MANAGEMENT REVIEW ANNUAL S 5.6
S= Audit Scheduled; C = Audit Completed
![Page 12: Internal Auditing](https://reader035.fdocuments.net/reader035/viewer/2022062310/568168af550346895ddf6a28/html5/thumbnails/12.jpg)
TECHNIQUES
![Page 13: Internal Auditing](https://reader035.fdocuments.net/reader035/viewer/2022062310/568168af550346895ddf6a28/html5/thumbnails/13.jpg)
Scope of AuditsLimit the time you set for auditsBy limiting the time, you may
limit the scope
EXAMPLE
![Page 14: Internal Auditing](https://reader035.fdocuments.net/reader035/viewer/2022062310/568168af550346895ddf6a28/html5/thumbnails/14.jpg)
Snapshot of a Process
![Page 15: Internal Auditing](https://reader035.fdocuments.net/reader035/viewer/2022062310/568168af550346895ddf6a28/html5/thumbnails/15.jpg)
SURPRISE, SURPRISELet the auditee know you are coming. Schedule a timeSurprise audits don’t work.
◦You may be interrupting something important
◦If you ask the right questions and look at the evidence, it will be difficult to hide anyway.
◦Think about your past history with surprise audits.
![Page 16: Internal Auditing](https://reader035.fdocuments.net/reader035/viewer/2022062310/568168af550346895ddf6a28/html5/thumbnails/16.jpg)
Tool #1Use existing flow charts Make up flow charts as you audit.
◦Flow charting is one of the easiest and I think under rated quality tools in our tool box. Use it.
If you observe the good 3rd party auditors, you are seeing more and more of them putting the evidence in flow chart format.
![Page 17: Internal Auditing](https://reader035.fdocuments.net/reader035/viewer/2022062310/568168af550346895ddf6a28/html5/thumbnails/17.jpg)
RAW DATA
![Page 18: Internal Auditing](https://reader035.fdocuments.net/reader035/viewer/2022062310/568168af550346895ddf6a28/html5/thumbnails/18.jpg)
![Page 19: Internal Auditing](https://reader035.fdocuments.net/reader035/viewer/2022062310/568168af550346895ddf6a28/html5/thumbnails/19.jpg)
•Look at the inputs and outputs.•Turtle diagrams are invaluable
![Page 20: Internal Auditing](https://reader035.fdocuments.net/reader035/viewer/2022062310/568168af550346895ddf6a28/html5/thumbnails/20.jpg)
20
TOOL #3What to look for when doing the
audit. Audit the intersections of the
different processes.◦How to we determine these
intersections?◦Think of your own job and the
processes involved.◦Most processes will include multiple
elements of the standard and your documents.
![Page 21: Internal Auditing](https://reader035.fdocuments.net/reader035/viewer/2022062310/568168af550346895ddf6a28/html5/thumbnails/21.jpg)
21
TOOL #4Use of ChecklistsGood
◦Promote planning◦Ensures consistent approach◦Creates Sampling plan◦Time manager◦Place to note findings
BUT◦Can cause canned approach◦Poor coverage◦Can be limiting
![Page 22: Internal Auditing](https://reader035.fdocuments.net/reader035/viewer/2022062310/568168af550346895ddf6a28/html5/thumbnails/22.jpg)
MINIMIZETHE RISKS
![Page 23: Internal Auditing](https://reader035.fdocuments.net/reader035/viewer/2022062310/568168af550346895ddf6a28/html5/thumbnails/23.jpg)
23
Determine the reason for doing the audit
Is it a regular scheduled audit?Have we had a problem?
◦ Internal defects◦New requirement◦New Equipment
Major issue with new press
Has the Customer had a problem?◦Customer complaint◦Customer credit◦Customer requirement
![Page 24: Internal Auditing](https://reader035.fdocuments.net/reader035/viewer/2022062310/568168af550346895ddf6a28/html5/thumbnails/24.jpg)
24
The reason for the doing the audit dictates many aspects of how the audit progresses◦Timing and urgency◦Resources committed◦Attention from upper management
FINAL EXAMPLE
![Page 25: Internal Auditing](https://reader035.fdocuments.net/reader035/viewer/2022062310/568168af550346895ddf6a28/html5/thumbnails/25.jpg)
Request for Deviation/ Samples/ Trials
1/14/10 WI83-2
Deviation/ samples/ trialRequested
Production ControlReview
Complete
# Assign & LoggedProd Ctrl.
Routed toApprop Dept
Eng MgrPlant Mgr
Sub Contractor (if need)
Quality Mgr
OK
Routed back To Originator
Rout to CustApproval
Approved
Filed By Prod Ctrl
Fill outRFD FormAny Dept
yes
no
yes
no
CustomerService
Production
Materials
Quality
Sales
Engineering
Shipping
Form QP-83-F04
Cust Approvalneeded
yesno
yes
no Alternate process
Log Results
RFD Log
![Page 26: Internal Auditing](https://reader035.fdocuments.net/reader035/viewer/2022062310/568168af550346895ddf6a28/html5/thumbnails/26.jpg)
Wrap UpGo after audits that will make a difference
◦ Reduce losses◦ Gain efficiency
Use the simple tools◦ Simple process diagrams◦ Input/ output diagrams
Be effective◦ Focus - Take small snapshots of a process◦ Use your time wisely◦ Listen to your leader’s needs◦ Audit the issues