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									ASQ Energy and Environmental Division

   Systems Beyond
   Today’s Horizon
        Robert H. King
        Sept. 13, 2004
     Today’s Agenda

• RAB value statement
• How RAB must change and stay
  true to the mission
• New ways of doing business
• Issues in today’s world
RAB Vision
and Mission
         RAB Vision
RAB will be an acknowledged leader:
• Guiding the international
  development and implementation
  of accreditation and certification
  processes that build confidence and
  value for stakeholders worldwide
• Providing the most professional,
  value-added services for its
        RAB Mission
• Value-added, cost-effective
  provider of CA services
• Advance credibility of CA
• Establish mutual recognition
  agreements that advance
  acceptance of CA activities
• Recognized leader in continually
  improving CA processes
     RAB Background

• Financially self-supporting non-
  profit organization in Milwaukee
• Governed by 17-member board
  representing EMS and QMS
• Exists to serve conformity
  assessment needs of business,
  registrars, course providers, and
  individual auditors
Organizational Relationships
 ANSI Conformity
                              RAB Board
Assessment Policy
                              of Directors

National Accreditation Program
                                        and Certification Board
     Joint Oversight Board

     QMS             EMS
    Council         Council

   Accreditation Services
                                        Certification Services
   (Administered by ANSI
                                     (Administered by RAB Staff)
      and RAB Staff)

    Accredit     Accredit                Certify     Accredit QMS
     QMS           EMS                QMS and EMS   and EMS Course
   Registrars   Registrars              Auditors       Providers
 ANSI-RAB National
Accreditation Program
ANSI                  RAB
• Provides due        • Operating partner
  process and           for programs
  public review of    • Coordinates initial
  program criteria      accreditation
  and procedures        audits and ongoing
• Promotes NAP          surveillance audits
  and represents it     of registrars
        IAF Concerns

• ANSI-RAB agreement does not
  meet the “legal entity”
• Both accreditation (CRBs) and
  certification (auditors) in the
  same organization
 How This Will Change

• ANSI-RAB NAP will change
• New businesses of accreditation
  will emerge
• Former partnership with ANSI will
  become legal entity
 Options for Future of
  Auditor Business
Find cooperative partner
   • Possible
Buy competitor
   • Expensive
Inch forward with core business
  and expand by new business
   • Impractical
   QSA International
• Quality Society of Australasia Ltd.
• Established in 1989 as professional
• Not-for-profit company limited by
• Based in Sydney with JV offices in
  Hanoi, Kuala Lampur, and Auckland,
  with representation Hong Kong,
  China, and India
  First Step to Merger
Agreed objective: To exploit,
 develop, and profit from the
 international personnel certification
 and training accreditation markets,
 achieving the status of “company
 of first choice” for persons seeking
 recognition and professional
RABQSA International
• Incorporated in U.S. as 501(c)(6)
• Principal centers USA and Australia
  with international joint venture
• Single board, business plan, market
• ASQ will be only member
• ISO/IEC 17024 accredited
• Priority markets: core and
  developing economies
RABQSA International

•   QSA and RAB boards approved
•   Agreement signed in June
•   Interim board established
•   Bylaws drafted
•   Business case complete
•   Plan in place for reorganization
    under tax exempt status
New Business Processes

• Value-added assessments
• Auditing post-Enron
• Trends in auditor competence and
  RAB’s direction
Multilateral Cooperative
Accreditation Agreement
IAF Guidance on Cross Frontier
  Accreditation: “Defined
  arrangements between IAF MLA
  signatory ABs are also necessary to
  meet the requirements of clause
  2.1.3 of ISO/IEC Guide 61, e.g.,
  through subcontracting
  arrangements and arrangements for
  joint assessment activity.”
      MCAA Purpose

• To provide for the recognition of
 the acceptability of the results of
 each party’s assessment and
 accreditation program based upon
 the determination of equivalence
        MCAA Scope

• Covers accreditation programs for
  certification bodies of
  management systems for QMS,
  EMS, QS-9000, AS9100, TL 9000,
  and RC 14001, and does not
  include any other accreditation
  program administered by any of
  the parties
MCAA Implementation
• Initially signed by JAB (Japan)
  and ANSI-RAB NAP (United
  States) in September 2003
• JAS-ANZ (Australia and New
  Zealand) subsequently signed in
  December 2003
• SAI Global jointly accredited by
  NAP, JAB, and JAS-ANZ in June
   MCAA and Cross-
   Frontier Guidance
• Method by which ABs can meet
  requirements of cross-frontier
• MCAA formalizes network of ABs
  required by cross-frontier
• Method of ensuring that ABs in
  developing countries are engaged
    MCAA Management
    System Highlights
Initial accreditation audits
• In lieu of full system office or witness
  audit, AB may consider reviewing
  previous audit reports of CRB’s AB
• Conduct abbreviated audits with
  emphasis on Advisories (where
  applicable) and results of off-site
  document review
   MCAA Management
   System Highlights
Re-accreditation and surveillance
• ABs cooperate with other signatories
  to agree upon a surveillance and re-
  accreditation program for each
  mutually accredited CRB
• Eliminating redundant audits takes
  cost out of the system
  Advantages for CRBs
• CRBs that are mutually accredited
  by MCAA ABs would immediately
  realize reduced audits and dollar
• CRBs will find that reclassification
  to avoid the critical office clause is
  Advantages for CRBs
Three CRBs mutually accredited by
• This could immediately assist the
  three CRBs by reducing audits
• Savings to CRBs
Five more CRB offices accredited
  by NAP, JAB, and JAS-ANZ
• This could assist CRBs under cross-
  frontier policy
    MCAA Advantages
• Provides for harmonization of
• Provides for AB member auditor
• Requires member ABs to be
  signatories of IAF MLA
• Requires participating CRBs to agree
  to shared information
• Increases oversight information to
  member ABs
   Improving Integrity
     of AB Programs
Language barriers eliminated
• International audits conducted by
  auditors who speak and read the
Confidence in other ABs’ work
• Annual audits of ABs will ensure AB
  network’s confidence in each other’s
   Improving Integrity
     of AB Programs
Plethora of info on accredited CRBs
• CRBs must sign release to allow ABs
  to share information on audit results,
  complaints, appeals, issues, etc.
Flexibility to not work with AB
  even though it’s MLA signatory
• If initial audit of AB is unsuccessful,
  AB network could decline to sign
  MCAA with that AB
Elements that add value:
• Effectiveness
• Efficiency
• Cost reduction
• Waste elimination
• Risk management
• Control
Skills to Enhance Trust
How to enhance confidence people
  put in auditing and CA scheme
• Be open and honest
• Communicate clearly
• Provide outstanding service
• Do better understanding and
  addressing needs
• Demonstrate industry leadership
     Leadership Skills

Most important leadership qualities:
• Assume personal responsibility
• Show care and concern for
• Stick to code of ethics
• Communicate openly
• Handle crises better
      Auditing in the
      Post-Enron Age
• Reaffirms importance of avoiding
  conflict between auditing and
• Illustrates how quickly trust can
  be replaced by skepticism
• Need to see increased attention
  as upside of Enron collapse
Auditing vs. Consulting
• Perception of risk to auditor’s
  independence can damage
• Enron dramatizes need to focus
  on auditor independence,
  potential for conflict of interest
• Shareholders more inclined to
  apply pressure
  Auditing Post-Enron

• Need more than checklist audit
• Value a function of professional
  independence and impartiality
• Well-crafted nonconformity
  statements indicate value of work
 Trends In
      ISO/IEC 17024
• Management systems standard
  for personnel certification bodies
• Competency-based requirements
  will replace current qualification-
  based approach
• RABQSA International will offer
  truly global option for accredited
    International Market

•   Our product
•   Target market
•   Sales strategy
•   Market delivery strategy
•   Service strategy
•   Product R&D
 International Market

Our product
• Accredited personnel certification
• Training provider accreditation
• Professional development
• International registers
     Current Drivers
  Example: MS Auditing
    purpose       audit management system

     identity        auditor

values and behavior     inspection and compliance

   capabilities                technical auditing skills

service environment        compliance auditing
    New (Competency)
    purpose       improve business performance

     identity        improver and facilitator

values and behavior     value and relevance

   capabilities       business improvement skills

service environment        business improvement
 International Market

Target market - industry
• Conformity, risk assessment – MS
  auditor certification
• Professional certification –
  consultant, BI specialists, managers
• Trade certification
• Industry specific certification
 International Market

"engagement of persons
  independently certified by RABQSA
  provides you with the confidence
  and assurance that the person is
  recognized as competent to
  internationally accepted standards
  of performance"
 International Market
Market delivery strategy
• Need for rationalization of service
  providers (PCB)
• Virtual e-based - anywhere, anytime!
• Centralized control of certification and
  data management systems,
  marketing, and business/product
• Decentralized service centers via in-
  country joint venture
• Promotion to industry
 International Market
Market delivery
• Decentralized service centers
• Low risk, minimum capital
   • Local service – face, culture, and
   • Maintain control of certification
   • Consistency of competencies
 International Market
• Virtual e-based “plug and go!”
• Tailored personnel certification
• Training provider accreditation
• Tailored professional development
• International registers
     Market Satisfiers
1. Competent people – value and
   relevance to bottom line
2. Market (industry) recognition
3. International (common)
   examination and recognition of
4. Tailored industry certification
      Roadmap to Certification
PCB Scheme
Scheme design
Definition of                      PCB Certification
  competencies                     Examination of
                                     evidence of skills,
     Evaluation process              knowledge,
Training                             attributes
Examination of
                          Examination of evidence
                            of skills, attributes
• Auditor certification bodies move
  from qualification-based to
  competence-based programs
• Considering different ways to get
  good feedback on auditor
• Training
Auditor Competence

    Quality            Generic       Environmental
    specific         knowledge          specific
 knowledge and        and skills     knowledge and
  skills (7.3.3)        (7.3.1)       skills (7.3.3)

Education     Work               Auditor      Auditor
            experience   (7.4)   training   experience

               Personal attributes (7.2)
 Who Will Deliver This
 to the Marketplace?
RAB QSA International
  • Need final board approval
  • Must have business plan in place
  • NEW
     • Leadership
     • Web site
     • Process
     • Accreditation
  What is the Future?
• RAB will become two organizations
• Accreditation business will work to
  enhance international cooperation
  between ABs and ensure integrity
  of accredited CRBs
• Personnel certification business will
  lead the way from “qualified”
  auditors to “competent” personnel

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