Project Qaulity Management Lecture about Audit by ShahMuhammad


More Info
									 Audit Definition & Objectives
AUDIT is “An unbiased examination and verification of a company's
corresponding records and supporting documents, externally or internally”

While QUALITY AUDIT means the process of systematic examination of a
quality system carried out by an internal or external quality auditor or an
audit team. It is an important part of organization's quality management

It is a fact finding practice which is different from inspection which is
mainly a defect finding activity.
Purpose of Audit
The purpose of audit is to help determine if the organization complies
with the defined quality system processes and it is done by collecting
objective evidence of processes, assessing how successfully processes
have been implemented and judging the effectiveness of achieving any
defined target levels.

Characteristics of an Audit
 Systematic
 Independent
 Documented process
 Obtaining audit evidences
Audit Criteria
 Set of policies, procedures and requirements
 It is used as a reference against which audit evidence is compared
Audit Evidence
 Records, statements of facts or other information, which are
   relevant to the audit criteria and verifiable.
For and instance: training records, Supplier evaluation records,
signed contracts and email communication for information sharing
Audit Findings & Conclusion
 Results of evaluation of the collected evidences against criteria.
 Outcome of audit, provided by audit team.

Audit Scope
 Boundaries of audit including physical locations, units, activities
  and processes etc.
Types of Audit

Types of 3rd Party Audit
 Desktop/ Adequacy/ Documentation Audit

 Compliance/ Implementation Audit

 Surveillance Audit
Roles and Responsibilities
• Client:

    Defining the audit objective
    Finalizing the audit scope & audit criteria
    Providing resources for audit
    Furnishing all relevant information and evidences

• Auditor:

    Audit planning
    Finalizing audit team
    Audit execution
    Documenting audit findings, conclusion and reporting
    Follow up and verification of corrective actions on non-
  Audit Activities
Sr. #                     Activities                                Expected Outcomes
 1      Finalizing audit objective, scope and criteria   Audit boundaries & requirements
 2      Audit Team Formation                             Team members list
 3      Audit Planning Preparation                       Audit Plan
 4      Audit Intimation to Auditee                      Audit date and other details
 5      Opening Meeting Conduct                          Plan sharing
 6      Conducting documentation review                  CARs, observations and report
 7      Preparation of audit checklist                   Audit questions to be asked
 8      Collecting audit evidences                       Findings
 9      Make audit conclusions                           Final results
 10     Audit reporting                                  Conformances and Non-conformances
 11     Closing Meeting                                  Results sharing
Audit Process

   1.                      3.
  Audit                   Audit
Planning                Reporting

               2.                       4.
             Audit                    Audit
           Performing               Follow-up
Audit Planning
   Define audit objective, scope and criteria

   Establish the audit team

   Prepare the Audit Plan

   Conduct Document Review

   Prepare Audit Checklist
Audit Plan
                                                    Audit Plan
Audit                                                                                        17th - 26th October,
      XXX-Dep/IQA/F/Oct20xx/01                                                 Audit date:
#:                                                                                           20xx
  Sr.     Date        Time       Region Location                         Auditors             Activities to be audited
                                                   to be Audited
                                                                                         Quality Policy
                                                                                         Reviews on KPIs
                                                                 Kaleem Ahmed (Company)
                                                                                         Standardization in Ufone
                                                   Opening       Faisal Shahzad Company)
                    10 AM - 11           F-10                                            Tech
  1     18-Oct-xx                North             meeting with Saleem Khan- QA
                       AM                Office                                          Deployment of QI
                                                   CTO           Baddar Munir- QA
                                                                 Farjad Saif– QA
                                                                                         QA Structure in Ufone
                                                                                         Resource allocation for
                                                                                         ISO 9001 based QA
                                                                 Kaleem Ahmed (Company)
                                         F-10                                            Manual, SOPs, KPIs,
                                                   Core Planning Baddar Munir - QA
  2     18-Oct-xx 12 PM -2 PM North      Office                                          Quality Improvement
                                                   (NSSP)        Sajid Ahmed
                                                                                         teams, ATPs, Related
                                                                                         ISO 9001 based QA
                                                                 Faisal Shahzad Company) Manual, SOPs, KPIs,
                                         F-10      Core Planning
  3     18-Oct-xx 12 PM -2 PM North                              Saleem Khan- QA         Quality Improvement
                                         Office    (INV)
                                                                 Majeed Khan (Dep’t)     teams, ATPs, Related
Audit Performance
   Conduct Opening Meeting
      Audit team introduction
      Verification of audit plan
      Audit scope is verified
      Required support solicited
      Time of closing meeting shared

   Execute Audit
      Conducting interviews
      Checking records

   Conduct Closing Meeting
   Final report shared
   List of non-conformances
   Follow-up audit tentative plan sharing
Evidence Collection

                      Reviewing documents and

   COLLECTION          Conducting interviews

                          Checking Records

                      Observing work activities
Questioning Technique
 • Open-ended Questions
 • Closed-end Questions
     Type of
                           Description                       Examples

                                                   What is ur opinion on results?
                   It can lead to a wide range of
                                                   Could you please tell me how
                   answers. It is used to seek
  Open-Ended                                        you process ur results?
                   auditee’s opinion and process
                                                   How do you calibrate ur tools?
                   understanding of auditors
                                                   How do u control ur documents?

                                               Is there any documented process
                                                for calibration?
                   It is used to ascertain an
                                               Are the results within threshold?
                   opinion and is expected
  Closed/ Direct                               Does this fall under your
                   normally to be answered in
                   ”Yes” or “No”.
                                               Do you check the dimensions as
                                                per approved drawings?
Auditor’s points to remember
 • Keep in mind that audit is an interviewing session not an

 • Investigate a claim and admit acceptance.

 • Keep neutral; do not disagree and argue.

 • Nod in agreement to maintain dialogue.

 • Do not be sarcastic and critical.

 • Be specific and to-the-point
Types of Non-conformances- NCs

              MAJOR NCs                                   MINOR NCs

  - Systematic absence of a                     - Are isolated incidences of a
  complete requirement of                       lapse or slippages on
  standard in documentation or                  documentation or
  implementation                                implementation of standard
  - A number of minor deviations
  from same element of a standard

 Findings which cannot be related to the requirements of the standards regarding a
 nonconformance and does not warrant even a minor deficiency. For example, auditee’s
 attitude, employee’s motivation and HSE issues etc.
Audit Reporting
   Executive Summary

   Approach and Methodology

   Audit Findings

   List of Non-conformances (Major, Minor and Observations)

   Recommendations (CARs)

   Follow-up Audit Plan
Corrective Action Request
                                  CORRECTIVE ACTION REQUEST
        Section/Area/Department:                        Date:

        Auditor:                                        Auditee:

        Reference Clause #:                             Type of finding:
                                                               Major       Minor       Observation


        Standard Requirement:

        Signature (Auditor):                            Signature (Auditee):
        Date:                                           Date:

        Root Cause of the Problem:

        Proposed Corrective Action:

        Responsible Person:                             Target Date:
        Signature (Auditee):                            Date:

         Corrective Action verified & found satisfactory    Corrective Action not found satisfactory


        Signature (Auditor/MR):                         Date:
  Corrective Action Request
                                            CORRECTIVE ACTION REQUEST
Section/Area/Department:                                      Date:
Final Test Bench                                              21/06/2010
Auditor:                                                      Auditee:
Naeem                                                         QC Engineer
Reference Clause #:                                           Type of finding:
7.6                                                                          Major       Minor        Observation


One of the voltmeters, # 389000, used for the testing of generators at the final test bench of the main assembly shop was not

Standard Requirement:
The clause requires that all test equipment used for monitoring the quality or performance parameters shall be calibrated.

Signature (Auditor):                                          Signature (Auditee):
Date:                                                         Date:

            • Workshop Engineer did not know how to repair the generator set”
            • “The operator was not trained”
Follow-up Audit
   Conducted on planned intervals

   Verification on sampling basis

   Progress on highlighted CARs

   CARs closure

To top