volume 3 issue 3 march 2020 issn: 2456-9666

VOLUME 3 ISSUE 3 MARCH 2020 ISSN: 2456-9666

JUS IMPERATOR www.jusimperator.org

A STUDY OF THE ROLE AND BENEFITS OF THIRD PARTY AUDITING

IN QUALITY MANAGEMENT SYSTEMS.

-SUNIL KUMAR MISHRA1

Abstract

Purpose: Motivation behind this paper is to contemplate the job and advantages of outsider

inspecting in ISO 9001:2008 Quality Management Systems which have been executed. The survey

glances through the view point of contextual investigations from both assembling and

administration associations. To empower the peruse to comprehend the job of evaluating the paper

initially clarifies the key standards identifying with examining quality administration frameworks,

the worldwide patterns identifying with their execution just as outsider reviewing. At that point

the paper presents four short contextual analyses identifying with a medical clinic, earthenware

tile maker, a warmth circulation association and a gas gear establishment organization – depicting

the advantages of outsider reviewing of their Quality Management Systems.

Plan/system/approach: Used for the contextual analysis materials incorporated the survey of

uninhibitedly accessible contextual analyses in the web and through meetings of Senior Managers

from the previously mentioned Organizations. Discoveries: Third gathering Quality Management

Systems Auditing keep on being valuable in a scope of industry parts are as yet developing on a

worldwide premise. Research constraints/suggestions: The investigation establishes a sign for

different associations to attempt presentation and accreditation of the administration framework

dependent on ISO 9001. Inventiveness/esteem: The article presents delegate esteems in outsider

review forms, shows results which might be utilized in the examination of ISO 9001 usage

frameworks.

Keywords: Audit; Process; Quality Management Systems; ISO 9001

Reference to this paper should be given in the following way: K. Stephens, M.T. Roszak, A study

of the role and benefits of third party auditing in Quality Management Systems, Journal of

Achievements in Materials and Manufacturing Engineering 43/2 (2010) 774-781.

1 Manager P&A, MBA (ISO &PR Management, PGDBM HR, LLM (Corporate law Management)



Introduction

The Quality Management System standard, ISO 9001 is maybe the most well known result of the

International - as often as possible worked around the cycle [1,6,9,13]: x Plan - Has the maker built

up the goals and procedures to empower the quality framework to convey the outcomes as per the

administrative necessities?, x Do - Has the producer actualized the quality administration

framework and the procedures?, x Check - Has the maker checked procedure observing and

estimation results against the targets and the administrative prerequisites? Does the producer assess

the adequacy of the quality framework occasionally through interior reviews and the board audits?,

x Act - Has the maker actualized powerful restorative and preventive activities?. The best

organizations function as complete units with a common vision. This may incorporate data sharing,

benchmarking, group working and attempting to the highest caliber and natural standards. An

administration framework encourages an association to accomplish these objectives through such

things as advancement of procedures, the board center and order of the executives thinking. ISO

9000 is a conventional name given to a group of norms created to give a structure around which a

quality administration framework can adequately be executed. The standard that will be most much

of the time refered to in this paper is ISO 9001:2008 is the prerequisite norm, incorporates the

accompanying primary areas [1]: 1. Quality Management System, 2. The board Responsibility, 3.

Asset Management, 4. Item Realization, 5. Estimation Analysis and Improvement. The execution

of an ISO 9001 consistent framework must perceive that it is nevertheless a stage in a drawn out

advancement of a ceaselessly improving QMS [13]. The advantages of executing such an

administration standard and consequent outsider reviews against it's necessities typically result as

an immediate outcome of the means required for it's usage. Most much of the time these

incorporate the accompanying [9,13]: 1. Characterize why the association is good to go, 2. Decide

the key procedures that state 'what' the association does, 3. Build up how these procedures work

inside the association's matter of fact, 4. Figure out who claims these procedures, 5. Concur these

procedures all through the association, 6. Characterize key execution markers and set up targets to

screen that the procedures are conveying what is normal, 7. Confirm the procedures inside, and

report to the procedures proprietors just as the senior administration to survey improvement. As

per the prerequisites of ISO 9001, an association must grow just six reported strategies: control of

archives, control of value records, inward reviews, control of non-congruities, remedial activity,

and safeguard activity. A quality manual and records are likewise required. The advancement of



different methodology, work directions, and different records is to a great extent at the

attentiveness of the association. While inspecting must along these lines confirm the presence of

the vital Organization of Standardization (ISO). The discussion about advantages of executing ISO

9001 is endless. Discussions are feelings - so mine is tantamount to yours. A Quality Management

System is a system dependent on an organized combination of best practice into working

frameworks documentation, it should likewise concentrate on the usefulness of the Quality

Management Systems [1]. Outsider inspecting of Quality Management Systems offers associations

help in accomplishing constant execution improvement in the territories of business execution and

hazard the executives, by enlisting their administration frameworks as meeting the prerequisites

of an administration framework guidelines. The following segment quickly condenses the key

standards included [11, 12].

Reason for ISO review.

An ISO Audit is fundamental terms implies checking to guarantee you are really doing what you

state you are doing. During an ISO review you, check that the administration framework is in

consistence with the applicable ISO standard. Check to guarantee that the activities taken to meet

the quality goals of the association are reasonable.

ISO is an independent, non-governmental international organization with a membership of

164 national standards bodies. Types of ISO Audit systems

There are 3 main types of ISO audit:

First Party – also known as an internal audit. ...

Second Party Audit – also known as a supplier audit. ...

Third Party Audit – also known as a certification audit.

Benefits of ISO certification.

Some of the main benefits of ISO 9001 certification include:

Suitable for both small and large organisations.

Better internal management.

Less wastage.

Increase in efficiency, productivity and profit.

Improved customer retention and acquisition.

Consistent outcomes, measured and monitored.

1. Standards all have the same basic purpose of setting out agreed principles or criteria



2. Different subject areas and different user groups have needs for differing forms and levels of

standardization

3. Depending upon your industry, there are various types of ISO Certification that UAE

Certification Bodies can offer.

4. ISO 9000 family addresses various aspects of quality management and contains some of ISO’s

best known standards. ISO 9000 - Quality Management System

5. ISO 9001:2015 - sets out the requirements of a quality management system ISO 9000:2015 -

covers the basic concepts and language ISO 9004:2009 - focuses on how to make a quality

management system more efficient and effective ISO 19011:2011 - sets out guidance on internal

and external audits of quality management systems.

6. ISO 14000 - Environmental Management System ISO 14000 family of standards provides

practical tools for companies and organizations of all kinds looking to manage their environmental

responsibilities. ISO 14001:2015 and its supporting standards such as ISO 14006:2011 focus on

environmental systems to achieve this.

7. OHSAS 18001 Occupational Health & Safety Management It can help you put in place the

policies, procedures and controls needed for your organization to achieve the best possible working

conditions, aligned to internationally recognize best practice.

8. ISO 27001 Information Security Management System Best practice framework for an

information security management system. It helps you identify the risks to your important

information and put in place the appropriate controls to help reduce the risk.

9. ISO 22000 Food Safety Management System ISO 22000 is an international standard that defines

the requirements of a food safety management system covering all organizations in the food chain

from “farm to fork”. Globally recognised standard.

10. ISO 13485: 2003 is what is known as a “sector-specific” quality standard, similar to ISO/TC

16949: 2002 for the automotive industry or AS9100 for the aerospace industry.

12. The AS9100 standard is only a few years old but is growing quickly. The AS9100 family of

standards represents the first international effort to formulate a quality management system

standard for the aerospace industry.

13. The International Traffic in Arms Regulations (ITAR) and the Export Administration

Regulations (EAR) are two important United States export control laws that affect the

manufacturing, sales and distribution of technology. The legislation seeks to control access to



specific types of technology and the associated data. Its goal is to prevent the disclosure or transfer

of sensitive information to a foreign national.

Which audit systems are already adopted in industries globally?

1. ISO 9001:2015 and ISO 14001:2015 certification.

2. OHSAS 18001 or ISO 45001 certification in occupational safety.

3. ISO 44001 certification for Collaborative Business Relationship Management Systems.

4. SA 8000

5. ISMS 27000

6. British safety council sword of honour.

7. TQM - quality audit

8. Deming cycle (PDCA)

9. ISO 50001:

10. ISO 31000 Risk management guideline

11. ISO 26000

12 The core idea is to maximize customer value while minimizing waste. Simply, lean

manufacturing means creating more value for customers with fewer resources.

13. R2 CERTIFICATION: - The R2 Practices establish requirements that an organization must

meet in order to handle electronic waste responsibly.

14. Many mare ISO audit no’s.

At present the classification includes 40 fields:

Generalities, terminology, standardization, documentation

Services, company organization, management and quality, administration, transport, sociology

Mathematics, natural sciences

Health care technology

Environment, health protection, safety

Metrology and measurement, physical phenomena

Testing

Mechanical systems and components for general use

Fluid systems and components for general use



Manufacturing engineering

Energy and heat transfer engineering

Electrical engineering

Electronics

Telecommunications, audio and video engineering

Information technology, office machines

Image technology

Precision mechanics, jewellery

Road vehicles engineering

Railway engineering

Shipbuilding and marine structures

Aircraft and space vehicle engineering

Materials handling equipment

Packaging and distribution of goods

Textile and leather technology

Clothing industry

Agriculture

Food technology

Chemical technology

Mining and minerals

Petroleum, and related technologies

Metallurgy

Wood technology

Glass and ceramics industries

Rubber and plastics industries

Paper technology

Paint and colour industries

Construction materials and building

Civil engineering

Military engineering



Domestic and commercial equipment, entertainment, sports.

What is the benefits of SA 8000 audit?

Advantages of SA8000 Certification A certify SA8000 affirmation gives progressing and solid

confirmation that an association is maintaining social execution desires, while additionally

consistently improving their administration frameworks to address and forestall social and work

dangers.

Evaluating Quality administration framework:

The primary standards identifying with the executives frameworks evaluating are characterized by

an International Standard, ISO 19011:2002 which gives "Rules on quality and ecological

administration frameworks examining" for evaluators and associations expecting to direct inward

and outside quality or natural administration framework reviews, just as on overseeing review

programs [2]. This direction report is additionally utilized by associations engaged with examiner

affirmation and preparing, accreditation and normalization of the board frameworks. Meaning of

a review as indicated by ISO 19011: 2002 [2]: "A review is a deliberate, free and reported

procedure for getting review proof and assessing it dispassionately to decide the degree to which

review rules are satisfied". Table 1 presents the key inspecting standards.

Table 1. Key Principles of inspecting in the ISO 19011:2001 [2]

Autonomy the reason for the comprehension and dependability of the review end Moral lead the

establishment of honesty and expert status. Reasonable introduction the establishment of

uprightness and expert status

Due review care sensible consideration in all issues and culmination in the introduction of the

review report. Proof the discerning reason for arriving at review resolutions dependent on the use

of characterized measures

All together that these standards can be actualized so that the association infers most advantage,

reviews must be goal and produce data on which the executives can act to improve its activities.

To accomplish such an objective reviews and review programs must be arranged and overseen,

utilizing characterized strategies and systems. The goal is that review proof and ends will be

important, dependable and adequate. Clearly to accomplish this the review colleagues must be

skilled, liberated from predisposition and any irreconcilable situation. The connection between the



review group review's and customer is one of privacy and tact [11, 12]. It ought to likewise be

noticed that the review proof depends on an example of the data accessible, since a review is

directed during a limited timeframe and it is consequently unrealistic to gain admittance to and

assess the entirety of the accessible data and along these lines distinguish all conceivable existing

issues or dissentions that may exist inside the framework. It is in any case, the mean to recognize

all patterns that might be happening inside that administration framework under assessment [10].

In spite of the fact that the standards of inspecting are a similar whatever the sort and purpose

behind its execution may differ.

Kinds of Audit:

There are two fundamental sorts - outside reviews and inward reviews. The Fig. 1 shows kinds of

review.

EXTERNA

Organization

INTERNA

L

First-Party Audit your own organization

Third-Party Independent audit

organization

EXTERNAL

SUPPPLIER

Second-Party You audit your supplier



Charcteristics for External Audits - These are reviews completed outside one's own association

and there are at any rate two unmistakable kinds of outer review – second and outsider.

Second Party Audits: - These reviews, did by one organization on another, initially originated from

the possibility of a significant provider examining its providers. There are various reasons why an

organization may wish to review its providers. Explanations behind second gathering review

include: x that such a review gives contribution to choosing, evaluating and affirming the

associations own providers, x that it gives an instrument in the improvement of Quality

Management Systems of providers it increments common comprehension of prerequisites, x and

for the situation ISO 9001:2008 is a technique for fulfilling statement 7.4.1 of this norm. Many

significant associations complete second gathering reviews to inform client offices with respect to

regions of shortcoming in their providers so proper agreement as well as reconnaissance

instruments can be actuated if the provider is to be given work. It can likewise feature any feasible

extra expenses

Outsider Audits (eg Certification Audits) because of the enormous development in enthusiasm for

Quality Assurance during the 1960s and 1970s, increasingly more second gathering reviews were

being completed. A few organizations in specific fields needed to utilize individuals whose sole

errand was to go with visiting examiners around the organization! Obviously this situation was

helping no one, especially the provider. After significant conversations at national levels, the BS

5750 plan (presently known as ISO 9001:2000) was presented by the British Standards Institution

(BSI) in the United Kingdom to legitimize all the appraisal plots as outsider plans worked by an

autonomous body which would endorsement organizations as consenting to the norm (or not all

things considered). Different bodies became affirmation bodies, and BSI Management Systems is

an unmistakable model and got associated with doing autonomous or also called "Outsider"

reviews [6,7,8].

First Party Audits/Internal Audits: First party reviews are those which an association does on itself

to affirm to the board that their archived administration framework is working successfully.

Purposes behind first gathering reviews most every now and again communicated incorporate that

they are x a control component used by the board, x used to address dissentions before third bodies



discover them, x an instrument to methodically improve the association which is a prerequisite of

numerous norms.

Job of Quality administration framework: This issue has just been investigated somewhat in the

basic purposes behind the different kinds of review. However, these can truly be outlined under

one explanation - SURVIVAL. In any serious circumstance in any case if the association is

producing or offering types of assistance, business will go to the more proficient supplier.

Inspecting is an apparatus to illuminate an association's administration regarding its productivity

forms – when completed by Third gatherings it isn't abstract and if an organization is decided as

meeting the necessities of an administration framework, for example, ISO 9001:2008 a testament

is given which would them be able to be utilized as an indication of agreeableness to clients. It

spares an association from demonstrating quality principles to segregating client and as of now it

is broadly perceived worldwide so communicates in a universal language. The prevalence of ISO

9001 over ongoing years has expanded essentially as talked about beneath. Reviewing is an

apparatus of assessment and improving of the administration framework. To the motivations

behind inspecting have a place: x finding out consistency of the components of the framework

with decided prerequisites, x setting up proficiency of the acquainted framework with accomplish

specific purposes, x empowering the enrollment of the administration frameworks in the

association, x assessment of the satisfaction of necessities coming about because of decided

guidelines.

Worldwide patterns in outsider Audits – accreditation reviews : The Global patterns for

Certification (and accordingly outsider reviews) have been checked over various years by ISO -

International Standards Organization which is the world's biggest engineer of deliberate norms.

ISO doesn't perform affirmation to its guidelines yet anyway commissions "The ISO overview"

which is currently in it's eighteenth cycle. ISO gives the outcomes as an open data administration

on it's Web webpage www.iso.org [3,4,5] ISO 9001 is by a wide margin the world's most settled

quality structure, at present being utilized by 1,064,000 associations in 178 nations around the

world, and sets the standard for quality administration frameworks, yet the board frameworks as a

rule - information from 2010 [5].Number of ISO 9001:2000/2008 endorsements gave overall [3,4]

The Fig. 2 obviously shows the expansion in number of endorsements issues in the course of recent



years and all signs are this is proceeding in spite of the fact that the rate at which new organizations

are being. ensured has eased back down to a little more than 120,000 organizations worldwide in

2005. The Survey demonstrates that the Top ten nations for Quality Management Systems

Certification against the prerequisites of ISO 9001:2000/2008 are available in Table 2 [3,4].

Table 2. Top ten nations for ISO 9001:2000/2008 declarations [3,4] Country No. of endorsements

In year 2006 In year 2008 China 162799 224616 Italy 105799 118309 Japan 80518 62746 Spain

57552 68730 Germany 46458 48324 United Kingdom 40909 41150 USA 44883 32400 India

40967 37958 France 21349 23837 Netherlands 18922 - Korea, Republic – 23036.

China and Italy recorded the most elevated yearly development of new endorsements gave in Year

2006 and 2008 [3,4]. Taking a gander at the aftereffects of this review the pattern seems, by all

accounts, to be continuation and development of outsider inspecting and affirmation of Quality

Management Systems with an expansion into the quantity of nations in which

organizations/associations are experiencing accreditation as beneath at the Table 3 [3,4].

The accompanying Fig. 3 gives a thought of the quantity of endorsements by top five modern parts

In spite of the fact that this paper has centered it's substance about Quality Management Systems

there are others including: x ISO 14001:2004 the Environmental Management Systems standard,

x OHSAS 18001 the Specification for Health and Safety Management Systems, x ISO 27001 the

Information Security Management Systems Standards, x ISO 13485:2003 Medical gadgets -

Quality Management Systems, x ISO/TS 16949:2009 Quality Management Systems - Particular

prerequisites for the Application of ISO 9001:2008 for car creation and important help part

associations. The pattern in all affirmation against the prerequisites of all the previously mentioned

norms is of development and expanded quantities of nations partaking in the different plans. The

fifteenth ISO study shows that the following standard of intrigue identifies with natural issues with

54,593 organizations being affirmed worldwide in 107 nations. As affirmation requires outsider

evaluating the worldwide pattern is that it is as yet observed as important device. The review

additionally shows that the sort of associations experiencing affirmation is broadening with the

goal that it isn't just the assembling organizations yet in addition administration associations

expanding the development.



Contextual analysis: Presented beneath are the portrayals of an example of associations and the

advantages they have picked up from ISO 9001 usage.

Microstructure: In this area there are four short contextual analyses introduced quickly portraying

the organizations/associations exercises and the advantages that they host apparent from the Third

Gathering reviews (Certification reviews) that they experienced.

Foundation: The Medical Imaging Department of a UK Hospital offers a wide scope of analytic

offices. It manages around 90,000 patients every year and completes around 120,000 assessments

from chest X-beams and ultra sound examining to MRI checks, CT sweeps and mammograms.

The medical clinic itself was worked in 1983 and is a little area emergency clinic in the United

Kingdom. The clinic utilizes 1800 staff running from specialists to doormen and serves a populace

of around 170,000. It is comprised of a wide range of divisions including it's own orthopedic office

and represents considerable authority in day and short-stay medical procedure.

Client needs

Two of the most significant issues inside the Medical Imaging Department are exactness and

wellbeing. As the division's demonstrative administrations include the utilization of radiation,

inability to work to severe security rules consistently could bring about a threat to patients – for

instance through overdose(though such occurrences are amazingly uncommon). Exacting rules are

in power to guarantee shirking of blunder with respect to tolerant analysis. With these issues in

question, the divisions' working practices are vigorously managed through by the legislature and

any penetrate in guidelines could bring about the medical clinic being fined.

Advantages

The Medical Imaging Department's Quality Management Systems and it's outsider evaluating and

confirmation have given affirmation that the division and it's staff are conforming to the necessary

rules. The Department's Medical Manager remarked that "the progressing evaluations cause us to

remain alert. It resembles an organization. We profit by out Certifying Organization's perceptions

and yet they frequently gain from our methods for doing things which would then be able to be

passed onto others". Different advantages that were noted include: 1. Expanded wellbeing and

government assistance of patients, 2. Diminished protection premiums, 3. Quality Management

System is regarded by different offices gave it.

Foundation



This Gas warming organization's is the biggest household focal warming and gas apparatus

establishment organization in the UK, giving clients support and breakdown spread. A developing

piece of the Group, incorporates a Gas organization, providing gas for private purposes and a

power

Conclusion

In this paper four contextual analyses were introduced in various territories extending from a

Industries, Hospital, Ceramic Tile produce, Heat dispersion and Installation of Gas gear -

organizations which all have executed Quality Management Systems and host had third gathering

reviews completed. From the abovementioned and the various articles that were concentrated in

the readiness of this paper (yet are not depicted here) all shared one component for all intents and

purpose paying little mind to Industry, or nation there were constantly noteworthy advantages from

executing and evaluating quality administration frameworks (and now others as well). The

advantages that were referred to most much of the time were: x Improvement of procedures and

strategies, x Clearer meanings of duties and specialists, x Improvement in forms efficiencies

relying upon the sort of association eg/decrease of waste, nonconforming items, administration

time and so forth, x Improvement in consumer loyalty and decrease of client objections. To close

Third gathering Auditing of Quality Management Systems keeps on being useful in a scope of

industry segments is as yet developing on a worldwide premise. An association can actualize the

norms for their inner and outside advantages without looking for affirmation. The choice whether

to have a guaranteed administration framework after an autonomous review is one to be taken on

business grounds – for instance, in the event that it is a client necessity, or an administrative

prerequisite in the association's region of movement. Actualizing ISO 9001 will offer difficulties

to all gatherings concerned - advisors, affirming bodies and associations executing the norm. On

the off chance that the necessities are actualized in letter and soul, there is no uncertainty,

associations will remain to profit thus will the clients and society on the loose. The interest for

Quality Management Systems will just increment.

Reference:

1. ISO 9001:2008, Quality Management Systems, Requirements, International Organization for

Standardization, Geneva, 2008.

2. ISO 19011:2002 Guidelines on Quality and/or Environmental Management Systems Auditing,

International Organization for Standardization, Geneva, 2002.



3. International Organization for Standardization (ISO), The ISO Survey 2006, International

Organization for Standardization, Geneva, 2007.

4. International Organization for Standardization (ISO), The ISO Survey 2008, International

Organization for Standardization, Geneva, 2009.

5. J.P. Russell, The Quality Audit Handbook, Principles, Implementation and Use, ASQ Quality

Press, Milwaukee, Wisconsin, 2000.

6. L.A. DobrzaĔski, M.T. Roszak, Implementation and functioning of quality management in the

research centre, Journal of Achievements in Materials and Manufacturing Technology 30/2 (2008)

197-203.

7. A. Zając, T. Karkoszka, Internal audit as a manner of process’ monitoring in the university

education, Quality Management 3 (2006) 54-59.

8. K. Stephens, Auditing of Management Systems, Conference “Day of the Quality - Auditing”,

Institute of Engineering Materials and Biomaterials, Silesian University of Technology, Gliwice,

2007, 3-8.

9. M. Roszak, The processes of audit in educational organization, Conference “Improvement of

the auditing processes”, POLISOLAB, Warsaw, 2010, 19-33.

10. J.P. Rusell, The internal auditing pocket guide, Preparing, performing and reporting, ASQ

Quality Press, Milwaukee, Wisconsin, 2003

volume 3 issue 3 march 2020 issn: 2456-9666

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