Process Approach in
Auditing: Effective
Techniques
Presented By: Baskar Kotte
Quality Systems
Enhancement,Inc
1790 Woodstock Road
Roswell, Georgia 30075
Toll Free : 1-866-577-4476
www.enhancequality.com
Synopsis
♦
♦
♦
♦
♦
♦
♦
♦
♦
What Is Process Approach ?
Elements of Process Approach
Different Twist; Business Connection
Quotation to Cash
Other Support Processes
Effective Techniques
Simple and Technique
Checklists
Why Confusion?
Quality Systems
Enhancement,Inc.
Roswell, Georgia
consult@enhancequality.com
www.enhancequality.com
2
What is Process Approach ?
♦ Process Auditing or Process
Approach in Auditing
♦ Process Auditing: Audit a Process
♦ Process Approach in Auditing:
Interaction in Totality
♦ Process and System Approach
♦ Transform Customer Requirements
to Customer Satisfaction
Quality Systems
Enhancement,Inc.
Roswell, Georgia
consult@enhancequality.com
www.enhancequality.com
3
Elements of Process
Approach
♦ Process Owners
♦ Inputs and Outputs
♦ Resources
♦ Methods/ Procedures/ Instructions
♦ Controls/ Measurements/ Metrics
♦ Documents/Records
♦ Efficiencies/ Effectiveness
Quality Systems
Enhancement,Inc.
Roswell, Georgia
consult@enhancequality.com
www.enhancequality.com
4
Focus
♦ Process Driven Not Procedure Driven
♦ Business Results
♦ Bottomline Focused
♦ All Key Processes not Just
Manufacturing Processes
♦ Customer Oriented Processes
♦ Quotation to Cash
♦ Achieve Desired Results
Quality Systems
Enhancement,Inc.
Roswell, Georgia
consult@enhancequality.com
www.enhancequality.com
5
Process Approach: Different
Twist
♦ Quotation to Cash ( Back to Front)
♦ Connects to Management Language
♦ Invoicing and Accounts Receivable
♦ Nonmanufacturing Processes
Inefficiencies
♦ Manufacturing Folks Like it
♦ Improves Bonus Potential for ISO
Management Representative
Quality Systems
Enhancement,Inc.
Roswell, Georgia
consult@enhancequality.com
www.enhancequality.com
6
Quotation to Cash
♦
♦
♦
♦
♦
♦
♦
♦
♦
Sales Lunch
Quotation
Design
Order Entry
Purchasing
Receiving
Scheduling
Manufacturing
Final Inspection
Quality Systems
Enhancement,Inc.
♦ Damaging 1
♦ Outsourcing
♦ Storage
♦ Damaging 2
♦ Shipping
♦ Invoicing
♦ Accounts Receiving
♦ Cash
Roswell, Georgia
consult@enhancequality.com
www.enhancequality.com
7
Missing Processes in
Quotation to Cash
♦ Documentation and Evidence
Gathering
♦ Resource Management
♦ Management
♦ Monitoring
♦ Measurement
Quality Systems
Enhancement,Inc.
Roswell, Georgia
consult@enhancequality.com
www.enhancequality.com
8
Effective Techniques
♦ Development of Process Flow/
Interaction Chart
♦ Input/Activities/Output Verifications
♦ Five Ms and One E
♦ Materials/Methods/Machines/Manpower
/Measures and Environment
♦ Octopus Model (Problem/Resolution)
♦ Turtle Model (What/Who/How/Measure)
Quality Systems
Enhancement,Inc.
Roswell, Georgia
consult@enhancequality.com
www.enhancequality.com
9
Turtle Diagram Technique
♦ Inputs !Process !Outputs
♦ Who, What, How and Measure (4 Legs)
or
♦ Resources, Methods, Controls and
Measure
♦ Of course Some Other Adders
Quality Systems
Enhancement,Inc.
Roswell, Georgia
consult@enhancequality.com
www.enhancequality.com
10
Simple & Effective
Technique
♦ At Each Process
♦ Did You Receive What You are
Supposed to Receive from Previous
Process?
♦ Did You Do What You are Supposed to
Do at Your Process ?
♦ Did You Send What You are Supposed
to Send to Next Process?
♦ Back to Front
Quality Systems
Enhancement,Inc.
Roswell, Georgia
consult@enhancequality.com
www.enhancequality.com
11
What Else With The Simple
Technique?
♦ Objective Evidence ( Records)
♦ Contribution to Policy and
Objectives
♦ Process Measures/ Metrics
♦ Action Plans/ C & P Actions
♦ Resources/ Competence
Quality Systems
Enhancement,Inc.
Roswell, Georgia
consult@enhancequality.com
www.enhancequality.com
12
Another Angle : Simple
Technique
♦ Expected Inputs
♦ Expected Activities at the Process
♦ Expected Outputs
♦ Expected Results
♦ Verification Activities
♦ Action for Correction and Corrective Action
♦ Contribution to Policies and Objectives
♦ Proof
Quality Systems
Enhancement,Inc.
Roswell, Georgia
consult@enhancequality.com
www.enhancequality.com
13
Checklist Or No ?
♦ If You are in Automotive Industry !!
♦ Stay Away from Calling it as
Checklist
♦ Memory Aid ?
♦ Memory Jogging List ?
♦ Prompt List ?
♦ Discipline/ Consistency
Quality Systems
Enhancement,Inc.
Roswell, Georgia
consult@enhancequality.com
www.enhancequality.com
14
Auditing Techniques
♦ Audits in the absence of Documented
Procedures
♦ Longer Time to Conduct Audits
♦ Process Based Audit Plan
♦ Results Based Auditing Techniques
♦ More Talented and Conceptual
♦ Not Tunnel Focused
Quality Systems
Enhancement,Inc.
Roswell, Georgia
consult@enhancequality.com
www.enhancequality.com
15
Why Confusion ?
♦ Concept Incomprehension
♦ Process Vs Process Approach
♦ Airport Seminars
♦ Consultants
♦ Books
♦ Process Mapping
♦ Third Party Auditors
Quality Systems
Enhancement,Inc.
Roswell, Georgia
consult@enhancequality.com
www.enhancequality.com
16
Summary
♦ Clear Understanding of Process
Approach
♦ Elements of Process Approach
♦ Business Connection
♦ Quotation to Cash Plus More
♦ Effective Auditing Techniques
♦ Simple and Effective Technique
♦ Why Confusion ?
Quality Systems
Enhancement,Inc.
Roswell, Georgia
consult@enhancequality.com
www.enhancequality.com
17