process management auditing version jp.10.1-uk oct 03 the high performance organisation ltd
TRANSCRIPT
Process Management Auditing
Process Management Auditing Version JP.10.1-UK Oct 03The High Performance Organisation Ltd
2 Version JP.10.1-UK Oct 03The High Performance Organisation Ltd
Process Management Auditing
Course objectivesGiven any process delegates will be able to:
• Plan and implement an effective process management audit/ assessment
• Report findings that add value to the business
• Use the techniques to support areas for improvement
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Process Management Auditing
Agenda – Day 1 Introductions
Process management review & types of audit/assessment
Planning & preparation
Lunch
Opening meeting
Process audit (part 1)
End of day 1
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Process Management Auditing
Agenda – Day 2Process assessment practice
Identifying findings and draft reporting
Lunch
Closing meeting with process owner
Assessing improvements
Summary
End of day 2
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Process Management Auditing
Session 1
Process management review&
Process auditing /assessment in practice
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Process Management Auditing
Exercise 1For a ‘Bus’ company:
1. Define a ‘high level’ process map2. Create 4 measures of performance
From this:
3. Are there any aspects of process management you would like to raise?
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Process Management Auditing
Principles of auditingSource: ISO19011:2002
• Ethical Conduct• Fair Representation• Due Professional Care
Relating to auditors:
Relating to audit itself:• Independence• Evidence-based approach
What is the purpose of auditing?
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Process Management Auditing
Types of auditing & assessment
Compliance
Process
System
?
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Process Management Auditing
Types of auditing / assessment
• Compliance auditing - Right or wrong
• Process management - Checking the flowassessment - The management of an individual process
• System assessment - The collective management of all processes in the system
- Links and impact of external relationships
- Inclusion of required frameworks
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Process Management Auditing
Compliance auditing
Com.Com. Com. Com.
Training Guide
Photograph
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Process Management Auditing
Process management assessment
Com.Com. Com. Com.
Tar Act Var
Inputs Outputs
Knowledge
ResourcesCompetence
Teamwork + Ownership
Budget
LearnChange
Risks etc.
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Process Management Auditing
Process management assessment
Process objectivesand targets
Purpose of process(supplier inputs & customer outputs)
The process itself
Key performanceindicators
Monitor performance & improve
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Process Management Auditing
Demographic & social changes
Systems management assessment
Innovation / inventions
The law & other regulations
Government policy
The market for your products
A business in the real world
Products
Compliance to regulations
Environment
Shareholdervalue
Satisfiedcustomers
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Process Management Auditing
Stakeholder & customer needs ISO9004 / ISO9001
Business (quality) objectives
Processes
Key performanceindicators & other measures
Monitor performance & improve
Management informationsystems
Systems management assessment tests
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Process Management Auditing
Auditing & assessment in context
System level
Process level
ProceduresCompliance level
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Process Management Auditing
Session 2
Planning & preparing a
process management audit
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Process Management Auditing
Audit / assessment scheduleQ1 Q2 Q3 Q4
Purchasing/Fulfilment
Project Management
Financial Management
Creating The Concept
Business Planning
‘Based on your business needs’
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Process Management Auditing
Planning the assessment (1)
• Understand the system
• Understand the process
• Understand detailed requirements– Customer specifics– Framework specifics– Procedures / supporting information / etc.
Where would you find these in your system?
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Process Management Auditing
Planning the assessment (2)
• Create process management “Audit Checklist” – What to look at / for
– What ‘questions’ would best gather required evidence
• Create an “Audit Plan”– Timescales
– Methods of auditing
– Auditees, etc.
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Process Management Auditing
Assessment planning
• Audit methods (groups, one to one, email,telephone, video conference etc)
• Plan to see process owner first & last• Elapsed time• Consider cross-functional contacts• Think about preparation time/breaks to gather
thoughts
‘audits are not just one to one’
consider:
21 Version JP.10.1-UK Oct 03The High Performance Organisation Ltd
Process Management Auditing
Process management assessment tests
Process objectivesand targets
Purpose of process(supplier inputs & customer outputs)
The process itself
Key performanceindicators
Monitor performance & improve
Assessor tool 2
‘we use this to carry out every interview’
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Process Management Auditing
Exercise 2
You are about to assess the management of a process.Create a list of some areas to look at / questions to ask
under each of the headings of ‘Assessor Tool 2’
Part of the cycle with process owner with operational level (fromTool 2)
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Process Management Auditing
Remember
• Ask questions that test relationships of activity within the process
• Address issues that tests relationships with other activities in other processes
• Don’t forget to test the management of the process
• Don’t forget to test the process itself
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Process Management Auditing
What other things will you alsoneed to consider in order to
assess if the process is being managed effectively ?
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Process Management Auditing
Com.Com. Com. Com.
Tar Act Var
Inputs Outputs
Knowledge
ResourcesCompetence
Teamwork + Ownership
Budget
LearnChange
Assessor tool 3
Risks etc.
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Process Management Auditing
Exercise 3Select a process:
• Consider a number of possible items to include in an audit plan & checklist that tests process management using assessor tools 2 & 3
Area / Questions(look at)
Auditee(s)(method)
Why? (look for)(what objective
evidence will you get?)
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Process Management Auditing
Session 3
The opening meeting
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Process Management Auditing
Opening meetingWith process owner/leader
• Check plan is OK?• What would process owner want out of the
audit?• How is the report to be presented?• Use the ‘tools’ to audit management &
understanding
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Process Management Auditing
Exercise 4(interviewing the process owner)
Given the process you have selected, you have 15 minutes to prepare to interview the process owner
(the facilitator)
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Process Management Auditing
Session 4
Process auditing (Part 1)
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Process Management Auditing
Audit style
Staff
Directors
Management
Supervisors
Often non-documented objective evidence.
No right or wrong
Audit compliance
Assess management
Documented objectiveevidence
Right or wrong
‘auditors have to manage this dynamic’
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Process Management Auditing
Objective evidence
Therefore objective evidence is based upon
what is being audited/assessed and
will come in both documented and
non-documented forms
‘The question to ask is - How?’
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Process Management Auditing
Technique
•Show me•Tell me
•How do you know that?•Explain to me?
‘Show me your business plan?’
‘How do you keep staff focussed on customer needs?’
Staff
Directors
Management
Supervisors
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Process Management Auditing
Exercise 5(auditing non-documented objective evidence)
What questions would you ask to a Senior Manager and Staff member if you wanted to check that:
• Are all team members are working in a process and not in a departmental ‘silo’?
• That the process performance is understood?• That the aim of the process is focused on delivering profit &
customer satisfaction?
What non-documented evidence will you look for?
Manager Objective Evidence Staff Objective evidence
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Process Management Auditing
Agenda – Day 2
Process assessment practice
Identifying findings and draft reporting
Lunch
Closing meeting with process owner
Assessing improvements
Summary
End of day 2
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Process Management Auditing
Session 5
Process audit / assessment
practice
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Process Management Auditing
Exercise 6(interviewing the process owner)
Using the preparation you did yesterday interview the process owner
(the facilitator)
Max. 10 mins per interview
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Process Management Auditing
Exercise 7
Auditing group•Decide who will interview who in accordance with the plan
Auditee group•Decide who will be whom according to the process youare part of
Exercise•Each group will have 1 hour to complete their audit
(it is OK to have a planned time out)
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Process Management Auditing
Practice feedback
Consider the findings of the group & record(in preparation for report writing)
Then•What went well?•What could you do better?•Did you need paper?•How did you get the objective evidence?
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Process Management Auditing
Session 6
Identifying findings
& draft report
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Process Management Auditing
Findings?• Summary of finding
• Areas for improvement
• Non-conformances (major)
• Non-conformances (minor)
• Observations
• Free format/form
• Areas of strength/success?
Explain the impact on the business! e.g. ££££££££££££
Why will the owner be interested?
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Process Management Auditing
Exercise 8
Produce a draft report for the process you have audited
in the format the process owner wantedTime – 20 to 30 mins
Present the report to the process owner & agree findings
Meeting duration – 5 to 10 mins
USE THE NOTES FROM YOUR EXERCISES
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Process Management Auditing
Session 7
Assessing improvements
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Process Management Auditing
Planning the assessment of improvements
Identify / focus on the findings of :
- Previous assessments- Previous improvement activities
Then:
•Schedule & plan as before•Prepare as before•Carry out the assessment•Report as before.
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Process Management Auditing
Carrying out the assessmentof improvements
Check:
• Establish what action has been taken
• The effectiveness of action taken in relation to the original issue
• Escalate to ‘System Owner’ if no action.
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Process Management Auditing
Issues & differences
What Issues or Differences from the way you have carried out auditing in the Past
does process assessment create?
ISSUES DIFFERENCES
HOW CAN THE ISSUES BE ADDRESSED BY USING DIFFERENT ASSESSMENT APPROACHES?
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Process Management Auditing
Summary• What are the benefits likely to be in
adopting process management auditing/assessment?
• What are the key skills needed to apply process management auditing/assessment effectively
Any further questions?
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Process Management Auditing
Guidance, advice & support
Working in partnership with
The High Performance Organisation Ltd01604 470837
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Process Management Auditing
Quality (Business) Principles• Customer focus• Leadership• Involvement of people• Process approach• System approach to management• Continual improvement• Factual approach to decision making• Mutually beneficial supplier relationships.
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Process Management Auditing
Quality Management Process ModelContinual improvement of the quality management system
Customer Customer
Requirements
Satisfaction
Management responsibility
ResourceManagement
Measurement,analysis andimprovement
Productrealization
Product
outputinput
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Process Management Auditing
The critical clause - Clause 4
• Identify processes
• Determine sequence
• Operate & control
• Ensure resources & information to support operation & monitoring
• Measure
• Improve based on fact
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Process Management Auditing
Impact of new standard
MD
Directors
Managers
Staff
IS9001:2000
ISO9001:1994
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Process Management Auditing
Where are we now?
Customer needs
Business objectives
Processes
Procedures
ISO9001:2000 ISO9001:1994 - typical system
Management information
Customer needs
Business objectives
Processes
Procedures
Management information
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Process Management Auditing
Processes v Silos - ISO9001:2000
Deliver the service?
Dept 1 Dept 2 Dept 3 Dept 4 CUSTOMERSUnderstand Customer Needs
Manage Competence
Manage Resources
Develop & Communicate Objectives
Monitor & Improve Performance
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Process Management Auditing
Process Management
Target Actual Variance
75% 68% -7%
LearnImplement improvement project to change the process
Learn
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Process Management Auditing
Management System & Continuous Improvement
Continuous business improvement
Process based business systems follow:-
Plan
Do
Check
Act
Plan 1
Do1
Check 1
Act 1
Thefuture
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Process Management Auditing
The High Performing Organisation
Stakeholder requirementsCustomer requirements
Define & prioritise objectives
Define processesto deliver objectives
Identify Process Measurements
Create managementinformation system
Report on progressto meet objectives
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Process Management Auditing
Processes v Silos - Whole Business
Deliver the service?
Service Design & Development?
Business Planning?
Dept 1 Dept 2 Dept 3 Dept 4
Communicating & winning business?
CUSTOMERS
STAKEHOLDERS
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Process Management Auditing
Complementary Standards & Frameworks
ISO9001
ISO9004Eg Customer – ISO9001Stakeholder – ISO9004
Excellence Model
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Process Management Auditing
Management System StructureMulti-level mapping
Owner - Head of ScopeManagement System
Process Owner - Process Owner
‘the what’
Procedure/Information
‘the how’
measure efficiency and effectiveness
measure business performancefinance, customer, process, people
Training Guide
Photograph
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Process Management Auditing
A Typical System?Understanding
theMarket
Monitor & measure
Performance
CommunicateServices
Design / enhanceServices
BusinessPlanning
Bringing aboutchange
Deliver Services
ManagingAssets
ManagingPeople
Managing Finance
What are your processes?