1. Hello and Welcome to The Quality Forum Online...Continuing in the spirit of People Helping People !
    Dismiss Notice
Dismiss Notice
You must be a registered member in order to post messages and view/download attached files in this forum.
Click here to register.

Process Internal Audit KPI's and Performance and evaluation monitoring

Discussion in 'ISO 9001:2008 - Quality Management Systems' started by VICTOR ASOLIBE, Feb 24, 2016.

  1. VICTOR ASOLIBE

    VICTOR ASOLIBE New Member

    Joined:
    Feb 24, 2016
    Messages:
    1
    Likes Received:
    0
    Trophy Points:
    1
    Dear All, needed to conduct process internal audit in our company system that is ISO 9001 (2008) complaint. What necessary KPI's and performance and evaluating monitoring can be use in areas like procurement, clearing/forwarding, manpower and human resources departments. Would also appreciate getting some more checklist.
     
    Last edited by a moderator: Feb 24, 2016
  2. Andy Nichols

    Andy Nichols Moderator Staff Member

    Joined:
    Jul 30, 2015
    Messages:
    2,054
    Likes Received:
    1,070
    Trophy Points:
    112
    Location:
    In the "Rust Belt"
    What have been established by the organization's management, Victor? Your audit should be of the attainment of those objectives, not some which you decide as the auditor. What KPI's have been established?
     
    RoxaneB and Chris Glover like this.
  3. Nick1

    Nick1 Member

    Joined:
    Jan 27, 2016
    Messages:
    49
    Likes Received:
    19
    Trophy Points:
    7
    Hi Victor,

    Inline with Andy's answer, the company sets it's KPI's or most of the time management sets the KPI's. You can check the progress on these KPI's on a weekly/monthly/etc. It's not required to perform a formal internal audit on these KPI's, though you are free to do this of course. Please make sure you do check them during your Annual Management Review, this will help you defining and measuring company objectives. Just to name a few KPI's

    Procurement:
    • Faulty purchase orders
    • On time delivery of suppliers
    • Faulty deliveries of supplier

    HR:
    • employee turnover
    • sick days
    • training programs provide against training programs requested (ratio)
    • employee satisfaction (survey)
    Good luck.
     
  4. Andy Nichols

    Andy Nichols Moderator Staff Member

    Joined:
    Jul 30, 2015
    Messages:
    2,054
    Likes Received:
    1,070
    Trophy Points:
    112
    Location:
    In the "Rust Belt"
    Nick: How does an internal auditor evaluate the effectiveness of the process(es) of the QMS without doing this?
    It'll be too late! Management shouldn't be done annually if it's to be effective. For most organizations that's too late to discover why you failed to achieve your objectives.
     
  5. Nick1

    Nick1 Member

    Joined:
    Jan 27, 2016
    Messages:
    49
    Likes Received:
    19
    Trophy Points:
    7
    Andy: Regarding the KPI's. Not every process has a clear KPI, though you can audit if the way people work is according to a procedure. The audit checks for compliance not specifically on a KPI. You can manage the company based on KPI's and use them as a tool to properly manage a company, however I don't see the need to perform an internal audit on the KPI. Though if would audit the effectiveness of the KPI's to check if they measure the things you would like to know.

    Furthermore a lot of procedure don't have quantifiable KPI's.

    Yes you are right, so you check them daily/weekly/etc. but you show the bigger trend in you annual management review, for example over several years.
     
  6. Andy Nichols

    Andy Nichols Moderator Staff Member

    Joined:
    Jul 30, 2015
    Messages:
    2,054
    Likes Received:
    1,070
    Trophy Points:
    112
    Location:
    In the "Rust Belt"
    Indeed, however, we're supposed to be auditing processes, not procedures.
    How will you know the achievement of the KPI was from a controlled process, then?
    There's no requirement for such an "annual" review - again, it's going to be too late. Things change so looking at the picture over years doesn't necessarily tell you much which may be correlated...
     
  7. Nick1

    Nick1 Member

    Joined:
    Jan 27, 2016
    Messages:
    49
    Likes Received:
    19
    Trophy Points:
    7
    Yes with the new standard we are auditing processes. As far my knowledge goes we need to audit every procedure ones in 3 years.

    I do understand that annually checks can be too late. However with employee turnover of smaller organisation measuring this KPI every month is meaningless, while over the years it might help management. I believe it is important to look to the type of organisation to see which timeframe makes sense. The same for looking at revenues on a weekly basis or even monthly basis in a market where sales cycles can be 9 months till a year is not gonna say a lot for smaller companies.
     
  8. Andy Nichols

    Andy Nichols Moderator Staff Member

    Joined:
    Jul 30, 2015
    Messages:
    2,054
    Likes Received:
    1,070
    Trophy Points:
    112
    Location:
    In the "Rust Belt"
    Unless your CB agreement tells you that, it's a myth.
     
  9. RoxaneB

    RoxaneB Moderator Staff Member

    Joined:
    Jul 31, 2015
    Messages:
    592
    Likes Received:
    675
    Trophy Points:
    92
    Location:
    Ontario, Canada
    KPIs should not exist because they measure things I would like to know. KPIs should exist to report process results for activities that are of interest/concern/value to the organization.

    Here's my take, a process is divided up into two components - the standard (which may or may not be documented) and the metrics (or KPIs). The standard/procedure is the WHAT, WHO, HOW, and maybe even WHEN. The metric is the WHY. We do activities 1, 2 and 3 to ensure we achieve a target of x%.

    A process should have at least one KPI. A procedure may not. A procedure is a component within a process - at least, that's the approach my company takes. When we develop a process, we also document where the KPI touches it - it's fascinating to see if there are clusters of KPIs or if only the beginning or end of the process is looked at, but that's a process management topic, not internal auditing.

    When we do an internal audit, we look for conformance to the standards/procedures and we look at the KPIs (target established, target achievement, trends, benchmark, conformance to KPI definition).

    Then we can see where things stand and have an intelligent conversation about the audit results and where to go from here.
     

    Attached File(s): 1. Scan for viruses before using. 2. Report any 'bad' files by reporting this post. 3. Use at your own Risk.:

    Andy Nichols likes this.
  10. Andy Nichols

    Andy Nichols Moderator Staff Member

    Joined:
    Jul 30, 2015
    Messages:
    2,054
    Likes Received:
    1,070
    Trophy Points:
    112
    Location:
    In the "Rust Belt"
    Thanks, RoxaneB!
     
  11. RoxaneB

    RoxaneB Moderator Staff Member

    Joined:
    Jul 31, 2015
    Messages:
    592
    Likes Received:
    675
    Trophy Points:
    92
    Location:
    Ontario, Canada
    Any time! ;-)
     

Share This Page