The Power of Process Auditing
SAMPLE PAGES
A Guide
to the video for facilitators and self study
Produced by
Nicholas & Smith Pty Ltd
Nicholas & Smith Pty Ltd ABN 19 002 762 307
PO Box 2006 Rose Bay North NSW 2030, Australia
Email info@nicholasandsmith.com
www.nicholasandsmith.com
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The Power of Process Auditing
Contents
Part 1 – About the training package 3
• Can I reproduce or transmit this training package? 3
• Who is this video resource for? 3
• What are the objectives of this video resource? 3
• What does the video package contain? 4
• What are the symbols used in this guide? 4
Part 2 – Synopsis of the video 5
Part 3 – Components of a process audit 6
3.1 The process is the core 7
• Types of processes 8
• Process approach 8
• Process knowledge 9
3.2 Working with people 10
• Communication 10
• Interpersonal and communication skills required 11
3.3 Process performance 16
• Incorporating a checklist into a process audit 18
• Tools to help identify performance issues 18
• Points on performance 18
• The filling and labelling process 19
3.4 The necessity of proof 23
• Points on proof or evidence 23
3.5 Putting findings into perspective 25
• Points on perspective 25
Part 4 – Summary 27
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Part 1 – About the Training Package
Can I reproduce or transmit this training package?
Duplication of any part of the video, in any format or its
transmission over the internet or intranet is strictly prohibited
without the written consent of the copyright owner.
Permission is granted to all purchasers of this training package for
unlimited reproduction of any material in this study guide for use
in their organisation’s training.
Who is this video resource for?
• Auditors – internal and external
• Managers in organisations which use standards and management
systems such as ISO 9001, ISO 14001, AS 4801, OHSAS 18001,
ISO/TS 16949, HACCP, ISO 22000, GMP and other international
and industry standards and codes of practice such as in Aged Care
and Health Care.
• Consultants
• Trainers
What are the objectives of this video resource?
This package is a resource to help auditors and managers to:
• Learn the fundamentals of process auditing and to appreciate
how process auditing is able to contribute to improved
business performance. Specifically, the video package covers
the key process auditing topics of:
Process
People
Performance
Proof
Perspective
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What does the video package contain?
The package consists of a video and guide to help facilitators run a
successful training session. It can also be used by managers and
supervisors in self-paced learning. It includes:
• Video (VHS or DVD format)
• CD containing:
Study guide for facilitator or for self paced learning
Slide presentation in MS PowerPoint
The guide summarises the key points from the video. It contains
questions to build upon these points and reinforce the main
concepts.
The guide and slide presentation allow the facilitator to further expand
the content and to tailor the program for staff by editing the guide and
slides and adding specific examples from their own organisation.
What are the symbols used in this guide?
V The video
Information from the video.
Complete the activity
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The Power of Process Auditing
Part 2 – Synopsis of the video
Refer PowerPoint Slide 1
The video is a ‘reality’ style program which follows an internal
auditor conducting a typical process audit.
The video shows how he conducts a process audit, the approach he
takes and the skills he uses to uncover important issues.
The process being audited is the filling and labelling of gas cylinders
and, in particular, a medical gas product known as Entonox.
Through his findings, the auditor develops a scenario for the potential
for cylinders to be incorrectly labeled and to be delivered to
customers. This scenario is presented to management and discussed in
terms of its level of risk and possible solutions which should be
further explored.
For the purpose of the video, some key procedures and checks and
balances which are in fact part of the production process were omitted
from the story to allow the auditor to develop his scenario.
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Part 3 – Components of a process audit
V The video
There are 5 essentials to process auditing.
One, auditors think in terms of the process. They can visualise
it. They understand its objectives.
Two, they involve the people who work in the process.
Three, they focus on the performance of the process.
Four, they find the evidence.
Five, they put their findings into context and draw attention to
any possible risks within the process.
Process
People
Performance
Proof
Perspective
Refer PowerPoint Slide 2
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3.1 The process is the core
A process is a set of interrelated activities that transforms inputs into outputs.
Every process has:
Inputs
Resources
Activities
Controls
Outputs
A process starts and ends with a customer.
A process should be aligned with the objectives of the organisation.
A process should add value to the organisation.
Refer PowerPoint Slide 3
V The video
As important as knowing any one process, is understanding its
relationship with other processes in the business.
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Types of processes
There are a variety of processes and these include:
Organisational Management Processes
Resources Management Processes
Production (or Realisation) Processes
Measurement, Analysis and Improvement Processes
Customer Service Processes
Process approach
The process approach is a potent way to manage any business. It allows the
focus to shift from functional units to a much wider view of the business. This
view is of the entire process and how it interacts with other processes to meet
the required objectives.
When all of the processes and their interactions are managed together, it
becomes a system approach.
In a process approach, there is a much greater emphasis on objectives and
outputs rather than activities.
A process approach aims to add value to the business. Added value means doing
things more efficiently or effectively and it also means doing things right the
first time.
In a process environment team members think in terms of how their role and
activities affect the next stage of the process and the effectiveness of the process
overall.
Key questions about a process include:
What is the objective of the process?
Who is the customer?
What are the customers’ needs?
What are the critical points in the process?
How does this process interact with other processes?
How is the process or process activities monitored and
measured?
What do the stakeholders, including those who work in the
process, think of the process?
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Process knowledge
To perform a process audit the auditor must gain thorough process knowledge,
especially of the processes which are central to achieving the organisation’s
quality, safety, environmental and business objectives.
Preparation – The auditor prepares for an audit by reading documents such as
manufacturers’ technical manuals, company reports, organisation charts,
customer communications, procedure manuals and previous audit findings. The
auditor must explore every way that the process may be influenced.
Observation and interviews – An auditor will learn a lot about a process by
simply watching. An auditor will look for things that are out of place, or
inconsistencies and contradictions, for example between what is desired and
what is actually achieved by the process. A skillful interview often yields the
most powerful audit information.
Visual tools – Dealing with the mass of information available requires the use
of visual tools such as flowcharts, process maps and mind maps. These are
effective tools to help structure the audit, digest information, organise the
findings, and also to communicate process information.
Well constructed process maps can effectively communicate essential process
details whereas written procedures are often either misunderstood or difficult to
comprehend.
Mind maps are excellent tools for:
• Remembering information
• Incorporating new information
• Keeping the central issues in focus
• Breaking out of conventional ways of seeing things
• Structuring an audit
• Developing audit questions as the audit proceeds
• Stimulating creative thinking, planning and summarising
• Showing relationships
Technical specialists – An auditor may not be knowledgeable about every type
of process they come across and so there is sometimes the need to bring in a
technical expert to help conduct some aspects of the audit.
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