Transcript HRG Process Management Auditing

Process Management Auditing
Process Management Auditing
Version EME.10.1-UK Oct 03
The High Performance Organisation Ltd
Course objectives
Given 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
Process Management Auditing
2
Version EME.10.1-UK Oct 03
The High Performance Organisation Ltd
Agenda – Day 1
Introductions
Process management review & types of audit/assessment
Planning & preparation
Lunch
Opening meeting
Process audit (part 1)
End of day 1
Process Management Auditing
3
Version EME.10.1-UK Oct 03
The High Performance Organisation Ltd
Agenda – Day 2
Process assessment practice
Identifying findings and draft reporting
Lunch
Closing meeting with process owner
Assessing improvements
Summary
End of day 2
Process Management Auditing
4
Version EME.10.1-UK Oct 03
The High Performance Organisation Ltd
Session 1
Process management review
&
Process auditing /assessment
in practice
Process Management Auditing
5
Version EME.10.1-UK Oct 03
The High Performance Organisation Ltd
Exercise 1
For a ‘Bus’ company:
1. Define a ‘high level’ process map
2. Create 4 measures of performance
From this:
3. Are there any aspects of process management you
would like to raise?
Process Management Auditing
6
Version EME.10.1-UK Oct 03
The High Performance Organisation Ltd
Principles of auditing
Source: ISO19011:2002
Relating to auditors:
• Ethical Conduct
• Fair Representation
• Due Professional Care
Relating to audit itself:
• Independence
• Evidence-based approach
What is the purpose of auditing?
Process Management Auditing
7
Version EME.10.1-UK Oct 03
The High Performance Organisation Ltd
Types of auditing & assessment
?
System
Process
Compliance
Process Management Auditing
8
Version EME.10.1-UK Oct 03
The High Performance Organisation Ltd
Types of auditing / assessment
• Compliance auditing
- Right or wrong
• Process management
assessment
- Checking the flow
- 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
Process Management Auditing
9
Version EME.10.1-UK Oct 03
The High Performance Organisation Ltd
Compliance auditing
Com.
Com.
Com.
Training
Guide
Process Management Auditing
10
Com.
Photograph
Version EME.10.1-UK Oct 03
The High Performance Organisation Ltd
Process management assessment
Knowledge
Inputs
Competence
Risks
Resources
etc.
Budget
Outputs
Tar Act Var
Com.
Com.
Com.
Com.
Teamwork + Ownership
Change
Process Management Auditing
11
Learn
Version EME.10.1-UK Oct 03
The High Performance Organisation Ltd
Process management assessment
Purpose of process
(supplier inputs & customer outputs)
Monitor performance
& improve
Process objectives
and targets
The process itself
Key performance
indicators
Process Management Auditing
12
Version EME.10.1-UK Oct 03
The High Performance Organisation Ltd
Systems management assessment
A business in the real world
The market for
your products
Satisfied
customers
Shareholder
value
Government
policy
Products
The law & other
regulations
Innovation /
inventions
Compliance to
regulations
Environment
Demographic &
social changes
Process Management Auditing
13
Version EME.10.1-UK Oct 03
The High Performance Organisation Ltd
Systems management assessment tests
Stakeholder & customer needs
ISO9004 / ISO9001
Monitor performance
& improve
Business (quality)
objectives
Management information
systems
Processes
Key performance
indicators & other measures
Process Management Auditing
14
Version EME.10.1-UK Oct 03
The High Performance Organisation Ltd
Auditing & assessment in context
System level
Process level
Compliance level
Procedures
Process Management Auditing
15
Version EME.10.1-UK Oct 03
The High Performance Organisation Ltd
Session 2
Planning & preparing a
process management audit
Process Management Auditing
16
Version EME.10.1-UK Oct 03
The High Performance Organisation Ltd
Audit / assessment schedule
Q1
Purchasing/Fulfilment
Q2
Q4


Project Management
Financial Management
Q3




Creating The Concept

Business Planning
‘Based on your business needs’
Process Management Auditing
17
Version EME.10.1-UK Oct 03
The High Performance Organisation Ltd
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?
Process Management Auditing
18
Version EME.10.1-UK Oct 03
The High Performance Organisation Ltd
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.
Process Management Auditing
19
Version EME.10.1-UK Oct 03
The High Performance Organisation Ltd
Assessment planning
consider:
• 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’
Process Management Auditing
20
Version EME.10.1-UK Oct 03
The High Performance Organisation Ltd
Process management assessment tests
Purpose of process
(supplier inputs & customer outputs)
Monitor performance
& improve
‘we use this
to carry out
every interview’
Process objectives
and targets
The process itself
Assessor tool 2
Process Management Auditing
Key performance
indicators
21
Version EME.10.1-UK Oct 03
The High Performance Organisation Ltd
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
(fromTool 2)
Process Management Auditing
with process owner
22
with operational level
Version EME.10.1-UK Oct 03
The High Performance Organisation Ltd
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
Process Management Auditing
23
Version EME.10.1-UK Oct 03
The High Performance Organisation Ltd
What other things will you also
need to consider in order to
assess if the process is being
managed effectively ?
Process Management Auditing
24
Version EME.10.1-UK Oct 03
The High Performance Organisation Ltd
Risks
Knowledge
Inputs
Competence
Resources
etc.
Budget
Outputs
Tar Act Var
Com.
Com.
Com.
Com.
Teamwork + Ownership
Change
Learn
Assessor tool 3
Process Management Auditing
25
Version EME.10.1-UK Oct 03
The High Performance Organisation Ltd
Process Management Auditing
26
Version EME.10.1-UK Oct 03
The High Performance Organisation Ltd
Process Management Auditing
27
Version EME.10.1-UK Oct 03
The High Performance Organisation Ltd
Process Management Auditing
28
Version EME.10.1-UK Oct 03
The High Performance Organisation Ltd
Process Management Auditing
29
Version EME.10.1-UK Oct 03
The High Performance Organisation Ltd
Exercise 3
Select a process:
•
Consider a number of possible items to include in
an audit plan & checklist that tests process
management using assessor tools 2 & 3
Auditee(s)
(method)
Process Management Auditing
Area / Questions
(look at)
30
Why? (look for)
(what objective
evidence will you get?)
Version EME.10.1-UK Oct 03
The High Performance Organisation Ltd
Session 3
The opening meeting
Process Management Auditing
31
Version EME.10.1-UK Oct 03
The High Performance Organisation Ltd
Opening meeting
With 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
Process Management Auditing
32
Version EME.10.1-UK Oct 03
The High Performance Organisation Ltd
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)
Process Management Auditing
33
Version EME.10.1-UK Oct 03
The High Performance Organisation Ltd
Session 4
Process auditing (Part 1)
Process Management Auditing
34
Version EME.10.1-UK Oct 03
The High Performance Organisation Ltd
Audit style
Assess management
Directors
Often non-documented
objective evidence.
No right or wrong
Management
Supervisors
Audit compliance
Staff
Documented objective
evidence
Right or wrong
‘auditors have to manage this dynamic’
Process Management Auditing
35
Version EME.10.1-UK Oct 03
The High Performance Organisation Ltd
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?’
Process Management Auditing
36
Version EME.10.1-UK Oct 03
The High Performance Organisation Ltd
Technique
•How do you know that?
•Explain to me?
‘How do you keep staff
focussed on customer
needs?’
Directors
‘Show me your
business plan?’
Management
Supervisors
•Show me
•Tell me
Staff
Process Management Auditing
37
Version EME.10.1-UK Oct 03
The High Performance Organisation Ltd
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?
Manager
Objective Evidence
Staff
Objective evidence
What non-documented evidence will you look for?
Process Management Auditing
38
Version EME.10.1-UK Oct 03
The High Performance Organisation Ltd
Agenda – Day 2
Process assessment practice
Identifying findings and draft reporting
Lunch
Closing meeting with process owner
Assessing improvements
Summary
End of day 2
Process Management Auditing
39
Version EME.10.1-UK Oct 03
The High Performance Organisation Ltd
Session 5
Process audit / assessment
practice
Process Management Auditing
40
Version EME.10.1-UK Oct 03
The High Performance Organisation Ltd
Exercise 6
(interviewing the process owner)
Using the preparation you did yesterday
interview the process owner
(the facilitator)
Max. 10 mins per interview
Process Management Auditing
41
Version EME.10.1-UK Oct 03
The High Performance Organisation Ltd
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 you
are part of
Exercise
•Each group will have 1 hour to complete their audit
(it is OK to have a planned time out)
Process Management Auditing
42
Version EME.10.1-UK Oct 03
The High Performance Organisation Ltd
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?
Process Management Auditing
43
Version EME.10.1-UK Oct 03
The High Performance Organisation Ltd
Session 6
Identifying findings
& draft report
Process Management Auditing
44
Version EME.10.1-UK Oct 03
The High Performance Organisation Ltd
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?
Process Management Auditing
45
Version EME.10.1-UK Oct 03
The High Performance Organisation Ltd
Exercise 8
Produce a draft report for the process
you have audited
in the format the process owner wanted
Time – 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
Process Management Auditing
46
Version EME.10.1-UK Oct 03
The High Performance Organisation Ltd
Session 7
Assessing improvements
Process Management Auditing
47
Version EME.10.1-UK Oct 03
The High Performance Organisation Ltd
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.
Process Management Auditing
48
Version EME.10.1-UK Oct 03
The High Performance Organisation Ltd
Carrying out the assessment
of 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.
Process Management Auditing
49
Version EME.10.1-UK Oct 03
The High Performance Organisation Ltd
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?
Process Management Auditing
50
Version EME.10.1-UK Oct 03
The High Performance Organisation Ltd
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?
Process Management Auditing
51
Version EME.10.1-UK Oct 03
The High Performance Organisation Ltd
Guidance, advice & support
Working in partnership with
The High Performance Organisation Ltd
01604 470837
[email protected]
Process Management Auditing
52
Version EME.10.1-UK Oct 03
The High Performance Organisation Ltd
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.
Process Management Auditing
53
Version EME.10.1-UK Oct 03
The High Performance Organisation Ltd
Quality Management Process Model
Continual improvement of the quality management system
Management
responsibility
Customer
Customer
Measurement,
analysis and
improvement
Resource
Management
Satisfaction
Requirements
input
Product
realization
Product
output
Process Management Auditing
54
Version EME.10.1-UK Oct 03
The High Performance Organisation Ltd
The critical clause - Clause 4
•
•
•
•
Identify processes
Determine sequence
Operate & control
Ensure resources & information to
support operation & monitoring
• Measure
• Improve based on fact
Process Management Auditing
55
Version EME.10.1-UK Oct 03
The High Performance Organisation Ltd
Impact of new standard
IS9001:2000
MD
Directors
Managers
ISO9001:1994
Staff
Process Management Auditing
56
Version EME.10.1-UK Oct 03
The High Performance Organisation Ltd
Where are we now?
ISO9001:2000
ISO9001:1994 - typical system
Customer needs
Customer needs
Business objectives
Business objectives
Processes
Processes
Procedures
Procedures
Management information
Management information
Process Management Auditing
57
Version EME.10.1-UK Oct 03
The High Performance Organisation Ltd
Processes v Silos - ISO9001:2000
Dept 1
Dept 2
Dept 3
Deliver the service?
Understand Customer Needs
Dept 4
C
U
S
T
O
M
E
R
S
Manage Competence
Manage Resources
Develop & Communicate Objectives
Monitor & Improve Performance
Process Management Auditing
58
Version EME.10.1-UK Oct 03
The High Performance Organisation Ltd
Process Management
Target
75%
Implement improvement project
to change the process
Process Management Auditing
59
Actual Variance
68%
-7%
Learn
Version EME.10.1-UK Oct 03
The High Performance Organisation Ltd
Management System & Continuous
Improvement
Process based business systems follow:-
Act
The
future
Plan 1
Plan
Do
Act 1
Check
Do1
Check 1
Continuous business improvement
Process Management Auditing
60
Version EME.10.1-UK Oct 03
The High Performance Organisation Ltd
The High Performing Organisation
Stakeholder requirements
Customer requirements
Report on progress
to meet objectives
Define & prioritise objectives
Create management
information system
Define processes
to deliver objectives
Identify Process Measurements
Process Management Auditing
61
Version EME.10.1-UK Oct 03
The High Performance Organisation Ltd
Processes v Silos - Whole Business
Dept 1
Dept 2
Dept 3
Deliver the service?
Service Design & Development?
Business Planning?
Dept 4
C
U
S
T
O
M
E
R
S
S
T
A
K
E
H
O
L
D
E
R
S
Communicating & winning business?
Process Management Auditing
62
Version EME.10.1-UK Oct 03
The High Performance Organisation Ltd
Complementary Standards &
Frameworks
Excellence Model
Eg Customer – ISO9001
Stakeholder – ISO9004
ISO9004
ISO9001
Process Management Auditing
63
Version EME.10.1-UK Oct 03
The High Performance Organisation Ltd
Management System Structure
Multi-level mapping
Management System
Owner - Head of Scope
measure business performance
finance, customer, process, people
Process
Owner - Process Owner
‘the what’
measure efficiency and effectiveness
Procedure/Information
Training
Guide
‘the how’
Process Management Auditing
64
Photograph
Version EME.10.1-UK Oct 03
The High Performance Organisation Ltd
A Typical System?
Understanding
the
Market
Bringing about
change
Business
Planning
Monitor &
measure
Performance
Design
/ enhance
Services
Communicate
Services
Deliver
Services
Managing
People
Managing
Assets
Managing
Finance
What are your processes?
Process Management Auditing
65
Version EME.10.1-UK Oct 03
The High Performance Organisation Ltd