[Note: This is a partial preview. To download this presentation, visit: https://www.oeconsulting.com.sg/training-presentations] The purpose of a Supplier Quality Audit is for you to verify if the supplier's quality systems, processes, or products satisfy or are in compliance with the requirements as set forth in the contractual agreements, procedures, and/or agreed upon standards. This presentation is specially designed for professionals related to Supply Chain, Purchasing, Quality Assurance and Manufacturing Management who are responsible for managing your supplier's quality performance as well as those who are interested in developing and enhancing their personal competence and effectiveness in Supplier Quality Auditing. LEARNING OBJECTIVES 1. Acquire knowledge on the principles of management system auditing 2. Define the objectives of supplier quality audit 3. Describe how to plan and prepare for a supplier audit 4. Explain the process of on-site supplier audit 5. Describe the post-audit activity CONTENTS 1. Principles of Management System Auditing 2. Introduction and Objectives of Supplier Quality Audit 3. Supplier Audit Planning and Preparation 4. On-site Supplier Audit 5. Post-audit Activities 6. Do's and Don'ts Appendix - Additional Information for Supplier Audit

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MANAGING
SUPPLIER
QUALITY
AUDITS
© Operational Excellence Consulting. All rights reserved.

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Learning Objectives
1. Acquire knowledge on the principles of management system
auditing
2. Define the objectives of supplier quality audit
3. Describe how to plan and prepare for a supplier audit
4. Explain the process of on-site supplier audit
5. Describe the post-audit activity
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Outline
1. Principles of Management System Auditing
2. Introduction and Objectives of Supplier Quality Audit
3. Supplier Audit Planning and Preparation
4. On-site Supplier Audit
5. Post-audit Activities
Appendix - Additional Information for Supplier Audit

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Principles of Auditing
§ Auditing is characterized by reliance on a number of principles
§ These principles should help to make the audit an effective and
reliable tool in support of management policies and controls, by
providing information on which an organization can act in order to
improve its performance
§ Adherence to these principles is a prerequisite for providing audit
conclusions that are relevant and sufficient, and for enabling
auditors, working independently from one another, to reach similar
conclusions in similar circumstances

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Principles of Auditing
Source: Based on ISO 19011:2018 Auditing Management Systems

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Principles of Auditing
1. Integrity: the foundation of
professionalism
• Perform work ethically, with
honesty and responsibility
• Only undertake audit activities if
competent to do so
• Perform work in an impartial
manner, i.e. remain fair and
unbiased in all their dealings
• Be sensitive to any influences
that may be exerted on their
judgement while carrying out an
audit

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Principles of Auditing
7. Risk-based approach: an audit
approach that considers risks
and opportunities
• The risk-based approach should
substantively influence the
planning, conducting and
reporting of audits in order to
ensure that audits are focused
on matters that are significant
for the audit client, and for
achieving the audit programme
objectives

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Introduction to Supplier Quality Audit
§ For important purchases, ensuring
acceptable supplier quality is
critical
§ Performing a supplier quality audit
is one step in ensuring the
selection of a capable supplier
§ A supplier quality audit is more
than just walking a supplier’s shop
floor and looking around (avoid
behaving like “industrial tourists”)

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Supplier
audit
IS NOT
“Industrial
Tourism”

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Objectives of Supplier Quality Audit
§ Review the supplier’s management
philosophies and practices
§ Review supplier’s total quality
system
§ Address specific issues needing
corrective action or to review
technical and service capabilities of
a supplier
§ Means to understand supplier
capabilities and to drive supplier
improvements as needed

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Key Steps for Conducting a Supplier Quality Audit
1. Supplier audit planning and
preparation
2. On-site supplier audit
3. Post-audit activity

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Planning
§ Contact the supplier to discuss the purpose for the Process Audit,
the methods/procedure to be used and confirm suitable timing for
the Process Audit
§ Establish a team for the Process Audit
• The team shall normally be multi-functional, and consist of a trained lead
assessor and additional support as required based on auditor proficiency
and the depth to which the Process Audit requires
• The team members shall be selected based on knowledge of the
suppliers’ product(s), process(es) or service(s) rendered and required
local language

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Notification
§ The Process Audit team shall
decide on a date to conduct the
Supplier Process Audit and set a
tentative Process Audit agenda
§ A letter of formal notification of
intent date shall be made to the
supplier
§ Written confirmation of
acceptance of the Process Audit
dates should be sent to the lead
assessor by the supplier

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Pre-process Audit Meeting
§ On the day scheduled for the Process
Audit activity, the Process Audit team
shall conduct a pre-Process Audit
meeting
§ This is a brief introductory meeting
with the supplier’s management team
to introduce the team, and review
requirements and expectations
§ This meeting is intended to establish
the tentative time tables and resource
requirements for the activity, and work
out any concerns or conflicts that may
have arisen during the planning stage

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Post Process Audit Meeting
§ The Process Audit team shall meet
with the supplier at the end of the
Process Audit activity and present the
results
§ Should corrective action activity be
required, time frames for response
shall be established and agreed upon
§ The findings of the Process Audit
team shall be provided to supplier
management at the end of this activity
§ Supplier management should sign-off
on findings

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Follow Up
§ The lead assessor shall evaluate the
adequacy of the response from the
supplier upon receipt of the corrective
action report, assuring that corrective
action is identified and scheduled for
each finding
§ Additional follow-up information shall
be provided by the supplier, assuring
that corrective action is accomplished
as scheduled and that interim
measures were in effect to minimize
problems until corrective action was
accomplished

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Follow Up Process Audit
§ It should be scored in such a way
that previous sections which had
failed should now score a
maximum of 90% only
§ Otherwise there is a danger that a
Follow-up Audit could generate a
100% score as only the corrective
action items have been reviewed

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Surveillance
§ Periodic surveillance visits may be
scheduled as required to assure that
the supplier's Process audit has not
degraded
§ Typically, suppliers that have not
received certification under the
guidelines of ISO 9001 by a qualified
registrar shall require a new Process
Audit every two years

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Re-process Audit
§ A Re-process Audit may be necessitated by any decrease in any of
the measures of the supplier quality performance

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END OF PREVIEW
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