Management Service E-ssentials Vol1 05/2013


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In this premiere issue of management service E-essential, we focus on:
• The Application and Benefits of a Customer-Focused Audit Strategy
• Using Insight Auditing® SWOT Analysis to Foster Business Excellence
• TÜV SÜD America Profile: Gurdeep S. Mahal
• Insight Auditing® SWOT Analysis: A Case Study
• Management Service Webinars from TÜV SÜD America

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Management Service E-ssentials Vol1 05/2013

  1. 1. TÜV SÜD | Vol. 1 May 2013E-ssentialsManagement Service | Technical industry e-news updates essential to your operationshttp://www.tuv-sud-america.comThe Application and Benefits of a Customer-Focused AuditStrategy02Using Insight Auditing®SWOT Analysis to Foster BusinessExcellence04TÜV SÜD America Profile: Gurdeep S. Mahal Case Study 06Driving Business Excellence with Insight Auditing®SWOTAnalysis: A Case Study 08Management Service Webinars from TÜV SÜD America 09Contents:
  2. 2. TÜV SÜD E-ssentialsVol. 1 May 2013Page 2Editorial The Application and Benefits of a Customer-FocusedAudit StrategyDear Reader,Welcome to the premiere issue of Management ServiceE-ssentials, the e-newsletter from the managementsystems professionals at TÜV SÜD America!As ISO 9001 and other sector certifications becomea requirement for many global supply chain entities,the best way for organizations to meet customers’expectations is to implement a customer-focused audit(CFA) strategy. The CFA approach addresses the specificneeds of individual customers whose products areproduced at multiple production sites around the worldand can significantly reduce the auditing burden. In ourarticle, “Optimizing Excellence with a Customer-FocusedAuditing Strategy,” we discuss the characteristics andbenefits of a CFA approach.At the same time, Insight Auditing®SWOT Analysisis an essential part of TÜV SÜD America’s reportingand communication of management system audit data.Insight Auditing SWOT analysis presents clear auditfindings, and connects them with both specific areasof business significance and recommended follow-upactions, resulting in a more effective managementsystem. Our article, “Using Insight Auditing SWOTAnalysis to Drive Business Excellence,” discusses TÜVSÜD America’s use of this exciting new tool.In a separate article, “Driving Business Excellencewith Insight Auditing SWOT Analysis: A Case Study,”we present actual results from the application of thistechnique in a multi-million dollar manufacturingorganization employing more than 80,000 people in 20countries around the world.The task of implementing and maintaining a certifiedquality management program can be daunting. In thisissue’s Profile piece, we speak with Gurdeep S. Mahal,TÜV SÜD America’s ISO 9001 Technical Product Managerand lead auditor. Based on his decades of experience,Mahal shares his perspective on the benefits of effectivequality management programs, the challenges inmaintaining certified status, and some recommendedmethods for streamlining compliance activities.We hope that you enjoy this first issue of ManagementService E-ssentials. If you have ideas for topics you’dlike to see us cover in future issues, please let us know.We look forward to hearing from you!Craig CasillasVice President, Management ServiceTÜV SÜD AmericaTo support today’s increasing global demandfor goods and services, manufacturers haveestablished operations around the world in orderto take advantage of production economies andto supply customers as efficiently and as cost-effectively as possible. However, quality-consciouscustomers expect the same level of product qualityand service, regardless of where that product ismanufactured. As such, manufacturers face achallenging task in achieving and maintainingquality standards required by their demandingcustomers.For years, maintaining a single qualitymanagement system (QMS), such as thosecertified to the ISO 9001 quality standard, hasbeen sufficient to demonstrate a manufacturer’scommitment to producing products of consistentquality. However, there has been an expansionin the number and type of sector-specific QMScertifications, as well as the introduction ofother types of certifications, such as those forenvironmental management systems (EMS) andsocial accountability (SA). In addition, manymajor corporations have introduced their ownspecific quality and environmental managementrequirements for their supply chain.Whether driven by industry sector expectationsor customer demands, the proliferation of systemcertification requirements means a direct increasein the number of independent audits needed todemonstrate compliance with those requirements.For example, a typical manufacturer can carry asmany as five separate ISO and/or sector-specificcertifications, each of which require at leastannual audits of each facility. For some globalentities, this can mean dozens, or even hundreds,of audits annually, directly resulting in businessinterruptions, lost productivity, and increasedoperating costs.As ISO and/or sector certifications have becomean absolute requirement for a typical global supplychain entity, the main customer concern remainsthe ability of its supply chain to fulfill customer-specific requirements. Hence, the best way fororganizations to meet customers’ expectationsis to implement a Customer-Focused Audit (CFA)strategy that addresses the specific needs ofindividual customers whose products are producedat multiple production sites around the world. Thisintegrated approach can significantly reduce theauditing burden, with its attendant impact onproduction and operating costs, while reassuringcustomers that the products they buy will meetthe same standards regardless of where they areproduced.In this article, we’ll discuss the characteristicsand benefits of a CFA strategy, and review theexperience of one global company who adopted aCFA strategy with distinctive results.HOW DO CFAs DIFFER FROM TYPICALISO 9001 AUDITS?CFAs and ISO 9001 audits both assess a facility’scompliance with the standards requirements ofISO 9001 and other QMS certification programs.But the similarity between the two approachesends there. Because CFAs are directly focusedon addressing the needs and expectations of thetargeted focused customer, it is the customer’srequirements that determine the selection of theauditors, and the production sites selected forauditing.Further, CFAs pay particular attention to specificquality requirements as detailed in the contractbetween the manufacturer and the selectedcustomer. In a typical ISO 9001 audit, it is notuncommon for auditors to be unaware of theserequirements and other customer concerns.However, the scope of a CFA can be expandedbeyond typical quality concerns to include theseimportant considerations, as well as internalprocesses, procedures, management policies and
  3. 3. Vol. 1 May 2013Page 3TÜV SÜD E-ssentialspriorities, and regulatory requirements.Finally, CFAs focus on leading, instead of lagging,indicators of quality. As such, CFAs evaluate avariety of quality indicators, such as compliancewith the manufacturer’s own internal processesand procedures, compliance with the customer’srequirements, customer loyalty, and even theengagement and satisfaction of the manufacturer’sown employees. In this way, CFAs can provide themanufacturer with advance notice of quality issues,providing the opportunity for risk mitigation andcorrective action before the customer’s perceivedsatisfaction is affected.CFA ENGAGEMENT—CASE STUDYThe subject manufacturing company providesdesign, manufacturing, customer support, andmanagement services to a wide range of industrysectors, including aerospace, automotive, consumerproducts, defense, electronics, industrial, medicaland telecommunications. The manufacturer alsoprovides customers with after-market serviceofferings, such as warranty services and productrepairs. This multi-billion dollar organizationoperates more than 50 facilities in more than 20countries around the world, employing more than80,000 employees worldwide.The manufacturer maintains numerous ISO andsector-specific QMS and EMS certifications,including AS9100, BABT, ESD 20.20, ISO 9001, ISO13485, ISO 14001, OHSAS 18001, TL 9000, andothers. On average, a single manufacturing sitecarries between three and five sector-specificcertifications to meet the needs of customersrepresenting different industry segments.In this engagement, the manufacturer and globalkey account manager from TÜV SÜD Americaidentified specific sites for the application of aCFA strategy, including facilities in North America,Europe, and Asia. The goal of the engagementwas to assess the impact of a CFA strategy onimproving customer satisfaction, audit-relatedbusiness interruptions, audit process effectiveness,and the manufacturer’s internal integratedmanagement system. Data was collected for athree-year period, from 2008 through 2010.AREAS OF AUDIT FOCUSThe engagement design involved auditing thefollowing management and functional areas:• Management Responsibilities: Governance- Top management commitment, engagement,and leadership- Customer-specific management review- Customer-specific internal audits CAPA- Monitoring, measurement, analysis, andreview- Periodic business reviews: action tracking andclosure• Strategy and Policy: Formulation, deployment,and communication- Vision, strategy, planning, and implementationalignment- Organization structure and alignment withcustomer• Contractual Requirements: Review andcompliance- Customer contract review and execution—corporate- Customer contract review and execution—site level- Conformance to customer contractualrequirements• Conformance to ISO 9001 and Company’s OwnQMS RequirementsRESULTS OF THE ENGAGEMENTDuring the three-year engagement period, the mostsignificant result was the reduction in the numberof noncompliance items found at productionsites utilizing the CFA strategy. Specifically, thenumber of minor noncompliance issues identifiedper audit day declined by 20% over the three-yearengagement period, from 1.0 to 0.80 findings. Evenmore significant is the decrease in the number ofmajor noncompliance issues identified at CFA sites,down 60% from an average of 0.50 per audit day in2008 to just 0.20 per audit day in 2010.Significant improvement was also observed inaudit effectiveness. For example, the number ofaudit findings per audit day was 63% higher thanthe typical ISO 9001 audit, and the number of non-conformances per audit day was 129% higher.The manufacturer also benefited from steadyreduction in the number of auditors involved.From 24 auditors in 2008, TÜV SÜD Americaused only 15 auditors in 2010. But fewer auditorsconducting more efficient audits are only partof the story, since the reduction in the numberof auditors actually resulted in improved auditorconsistency, even while maintaining local auditorrepresentation for specific language and cultureswherever possible.These improvements clearly demonstrate theeffectiveness of a CFA strategy. In addition toimproving quality management system auditeffectiveness and reducing business interruptionsattributable to audits, the use of CFAs significantlyimproved overall quality and compliance with auditstandards, as reflected in the reduced number ofnoncompliance issues identified. More than justa mechanism for assessing compliance, CFAs canactually help drive sustainable improvements inbusiness processes and systems, contributingto overall customer satisfaction and confidencein the organization’s ability to meet customerrequirementsBy design, CFAs typically require the involvementof participants from multiple organizationallevels, from senior management and businessdevelopment to manufacturing site-levelpersonnel and other internal support professionals.This multi-level involvement fosters greatercommunication throughout the organization, animproved understanding of the importance of theaudit process, and a greater commitment to thequality goals of the customer. It also ensures aprompt response to quality issues that requireremedial actions.CONCLUSIONWhile results may vary from organization toorganization, CFAs can strengthen an organization’squality management system, reduce audit time,minimize business interruption, and increasethe overall value of the auditing process. Thesebenefits can directly result in significant qualityimprovements, and help to ensure compliancewith customer-specific requirements. In thenever-ending effort to win and maintain customersatisfaction and loyalty, adopting a CFA strategy
  4. 4. TÜV SÜD E-ssentialsVol. 1 May 2013Page 4Using Insight Auditing®SWOT Analysis to Foster Business ExcellenceEven in the best circumstance, the auditing ofan organization’s management system can bedisruptive, time-consuming, and an expensiveprocess for the organization involved. Internalresources must be made available to deal withCertification Body requirements and attentionis diverted from business-critical tasks. Beyondthese issues are the inevitable questions abouthow to justify the time and expense involved inthe context of the larger business objectives of theorganization.For years, organizations have successfullyused analytical tools such as SWOT (strengths,weaknesses, opportunities, and threats) analysesas a basis for the formulation of strategies andobjectives, and also to fully investigate andevaluate the merits of specific initiatives. Now,TÜV SÜD America has applied the mechanismof the Insight Auditing®SWOT analysis to theauditing of a wide range of management systems.The result is a robust auditing process that alsoprovides data to drive continuous businessimprovement.Insight Auditing® SWOT Analysis is an essentialpart of TÜV SÜD America’s reporting andcommunication of management system auditingdata. Provided with the standard report at theconclusion of an audit, the Insight Auditing®SWOT analysis presents in clear, understandableterms the audit findings, and directly connectsthem with specific areas of business significanceand risks. The Insight Auditing® SWOT Analysisoutlines a summary for follow-up actions that focusfuture activity in those areas of greatest priority.Over time, use of the Insight Auditing® SWOTnot only results in a more effective managementsystem but helps to connect such improvementswith the larger goals of the organization.In this article, we discuss TÜV SÜD America’s• Strengths: Characteristics of the organization orbusiness that give it an advantage over others;• Weaknesses: Characteristics of the organizationor business that place it at a disadvantagerelative to others;• Opportunities: Circumstances that provide anopportunity to improve performance or increasethe likelihood of success;• Threats: Circumstances that could hampersuccess or endanger the organization or business.Insight Auditing® SWOT analysis, and itsapplication in the reporting and communication ofmanagement system auditing data.WHAT IS A SWOT ANALYSIS?A SWOT analysis is a tool that is typically usedin strategic planning to identify and evaluate thevarious factors that may affect the efforts of anorganization or business to be successful. Theacronym SWOT stands for four separate aspects ofan organization’s characteristics or circumstances,as follows:can provide organizations with an importantcompetitive advantage.TÜV SÜD America is an internationally recognizedtesting, inspection, and certification organization,with more than 750 experts operating in theUnited States, Canada, and Mexico. This extensivenetwork makes TÜV SÜD America an effectivesingle source for organizations seeking expertisein the certification and auditing of managementsystems of all types. For additional information onCFAs or other certification and auditing solutions,visit, or contactTÜV SÜD Management Service nFigure 1: The Structure of a SWOT Analysis
  5. 5. Vol. 1 May 2013Page 5TÜV SÜD E-ssentialsIn strategic planning, a SWOT analysis caneither be used as a starting point for developingan organization’s goals and objectives, or asa mechanism for assessing the likelihood ofachieving goals and objectives. Additionally, inthe auditing of a quality management system(QMS) or an environmental management system(EMS), a SWOT analysis can be used to interpretthe significance and impact of audit findings onthe business as well as a tool to drive continuousimprovement.HOW DOES INSIGHT AUDITING® SWOTANALYSIS DIFFER FROM ISO 9001AUDITING?ISO 9001 audits assess an organization’scompliance with the standard requirements of ISO9001 and other certification programs. All third-party accredited registrars are required to complywith the provisions of ISO 17021 when reportingaudit results. However, the similarity betweenISO 9001 reports and TÜV SÜD America InsightAuditing® SWOT reporting ends there.A typical audit report includes all audit findings,including nonconformities and improvementopportunities. Nonconformities are typicallywritten in standard ISO language, which mayimpede full comprehension by personnel who workoutside of quality or environmental managementfunctions. The audit report is given to thecompany’s “management representative,” who isthen responsible for addressing and closing outnonconformities. Formal actions in connection withimprovement opportunities are seldom addressed.By comparison, the TÜV SÜD America StandardAudit Report (SAR) is designed to include fivedifferent audit findings, as follows:1. Best Practices2. Positive Comments3. Opportunities for Improvement4. Minor Nonconformities5. Major NonconformitiesThen, TÜV SÜD America also provides clients witha Value Assurance Insight Auditing® SWOT reportat the time of closing meeting. This SWOT reportsupports and enhances the value of the SAR in thefollowing ways:• The SWOT report is a one-page, high-levelsummary that translates the audit findings intobusiness focus items (BFIs);• The report goes beyond a typical audit report toinclude information that has potential businessimpact and consequences, including:- Strengths: Characteristics of the organization’sQMS/EMS that give it an advantage overothers- Weaknesses: Characteristics that place theorganization at a competitive disadvantage- Opportunities: Areas where performance (e.g.revenues, profits, operation excellence) canbe improved- Threats: Areas within the QMS/EMSenvironment that could place the operationat risk• The SWOT report is addressed to the client’ssenior management, and is written in non-technical language to increase comprehensionand understanding.With the additional information provided bythe Insight Auditing®SWOT assessment, anorganization’s key decision makers have betterintelligence regarding the organization’s priorities,and can make more informed decisions regardingthe allocation of resources required to improvethe overall business performance and minimizepotential risks. The Insight Auditing®SWOTassessment translates the audit findings fromthe language of the standard into the languageof senior management, and identifies how thefindings affect the bottom line.HOW CAN MULTI-SITE GLOBALORGANIZATIONS USE INSIGHTAUDITING®SWOT ANALYSIS FORBUSINESS IMPROVEMENT?To support today’s global demand for goodsand services, manufacturers have establishedoperations around the world to take advantageof production economies and to supply customersas efficiently and as cost-effectively as possible.At the same time, quality-conscious customersrequire a uniform level of product quality andservice, regardless of where a product is actuallyproduced. As such, manufacturers face asignificant challenge in achieving and maintainingquality and consistency standards expected bytheir customers.The Value Assurance Insight Auditing®SWOTanalysis is easily adaptable for use by globalcompanies with multiple locations. Results frommultiple locations within the scope of a singleregistration can be consolidated into a singleSWOT report for an organization-wide assessment.In addition to offering a platform for improvementsin an organization’s QMS/EMS, Insight Auditing®SWOT reports can be integrated into anorganization’s overall strategic and businessplanning effort. Because a SWOT report providesa high-level view of an organization’s strengths,weaknesses, opportunities, and threats, it offersa powerful tool to improve not only quality andenvironmental management systems but to driveorganizational excellence across the board.CONCLUSIONWhile results will vary from organization toorganization, the use of an Insight Auditing®SWOT analysis can strengthen an organization’squality and environment management systems,and provide important data and support foran organization’s overall strategic planningeffort. These benefits may include both processimprovements as well as the achievement ofa company’s financial and business goals andobjectives. In the never-ending effort to win andenhance customer satisfaction and loyalty, theadoption of an Insight Auditing®SWOT strategycan provide organizations with an importantcompetitive advantage.TÜV SÜD is an internationally recognized testing,inspection, and certification organization withmore than 17,000 experts operating in over 600locations globally. This extensive network makesTÜV SÜD America an effective single source fororganizations seeking expertise in the certificationand auditing of management systems of all types.For additional information on TÜV SÜD America’sInsight Auditing®SWOT approach or othercertification and auditing solutions, visit, or contact TÜV SÜDManagement Service at n
  6. 6. TÜV SÜD E-ssentialsVol. 1 May 2013Page 6TÜV SÜD America Profile: Gurdeep S. MahalA 2012 study conducted by the U.K.’s Centre forEconomics and Business Research found that,when evaluated against a broad array of metrics,an effective quality management system directlycontributes to the success of an enterprise.Further, according to the study, one dollar investedin quality management typically yields a six-foldreturn in revenues and 16-fold reduction inexpenses. Given such promise, it’s easy to seewhy companies and corporations around the worldare embracing the science of quality managementand implementing programs that focus oncontinuous improvement.But while the benefits of a quality managementsystem are clear, the actual task of implementingand maintaining a certified quality managementprogram can be challenging. The implementationprocess is rigorous and time-consuming. Inaddition, addressing the auditing requirements ofISO 9001 along with those of other managementsystems, such as environmental (ISO 14001)and energy management (ISO 50001), without astrategic approach can result in duplicate activity.TÜV SÜD America is a premier service providerof auditing and inspection services addressinga range of management systems. As ISO 9001Technical Product Manager and certified leadauditor, Gurdeep Mahal knows from first-handexperience the benefits of ISO 9001 certification,as well as the challenges facing companiesseeking to improve the quality of their productsand processes.Mahal recently spoke with Management ServiceE-ssentials about the benefits of effectivequality management programs, methods ofstreamlining compliance activities, and the qualitymanagement systems auditing and inspectionservices that TÜV SÜD America provides toindustry.(Management Service E-ssentials): Theevidence clearly indicates that an effectivequality management system (QMS) can providecompanies with lasting improvements and areal return on investment. Share with us yourviews about the benefits of implementing andmaintaining a quality management system.(Gurdeep Mahal): An ISO 9001-based QMSprovides a number of benefits. First, it increasesthe value of an organization’s activities byevaluating critical processes for effectiveness andidentifying potential improvements. Second, aQMS fosters a culture of continuous improvementand supports an organization’s effort to meetthe needs and expectations of its customers.And, finally, a well structured QMS providesan operational framework that supports theachievement of targeted business objectives andresults.(MSE): Aside from the potential financial return,what are some of the other benefits?(GM): A QMS also provides a common platformon which an organization’s senior managementteam can effectively communicate their strategies,values, and priorities to employees, so thatresources are allocated in the most cost-effectiveand efficient manner possible.(MSE): Most of us assume that onlymanufacturing companies can benefit fromimplementing a quality management system. Canyou tell us about non-manufacturing settingswhere companies have successfully implementedquality management systems?(GM): Successful service businesses require thesame dedication to quality as hardware productcertified companies. Some of the world’s largestservice industries have instituted ISO 9001-basedQMS systems in a variety of specific service-related business, including product development,engineering, translation, transportation anddelivery, customer service, human resourcemanagement, and education and training, toname just a few. In every case, the goal is findingan approach that improves quality and increasesvalue for the customer.(MSE): How does a company’s size and numberof locations affect the decision to implement aquality management system?(GM): Actually, the best approach for anycompany is to design, develop, and implement aQMS that most closely matches their business,the activities in which they are involved, and thecomplexity of those activities. Some of the issuesto consider include:• The number of employees• The company’s structure (a single division ormultiple divisions)• Geographic locations (a single site or manysites in different locations)• The nature of the company’s products orservices• The complexity of the production anddistribution processes used• The extent to which QMS principles arealready in place(MSE): From your perspective, what are the keystumbling blocks encountered by companiesseeking to implement an ISO 9001-based qualitymanagement system? What steps can companiestake to ease the implementation process?(GM): Companies typically encounter problemsaround the following issues: 1) inadequateresources; 2) lack of clarity around the“ownership” of the QMS and specific aspects of
  7. 7. Vol. 1 May 2013Page 7TÜV SÜD E-ssentialsits implementation and management; 3) lack ofmanagement engagement; and 4) building a QMSthat’s more complicated than it needs to be.Overcoming these challenges requiresthe full engagement of an organization’ssenior management in the development andimplementation process, sufficient resources tocomplete the implementation and maintain theprogram, clarity and transparency about who isresponsible for what, and a primary focus on whattasks, activities, and metrics will be most directlyuseful in achieving the objectives of the QMSprogram.(MSE): The compliance audit is probably the mostanticipated challenge for companies with an ISO9001-compliant quality management system. Inyour experience, what are the most commonmistakes that companies make in preparing for anaudit?(GM): Most often, companies preparing for anaudit will generate reams of documentationinstead of addressing root-cause issues for thenonconformities that may have been identified byauditors in the past. In my experience, companieswith the best QMSs require little or no specialpreparation in advance of an internal or externalaudit. Their QMS programs should be working as anormal part of day-to-day operations for the benefitof the company, and not to satisfy auditors.(MSE): What are some of the key best practices inpreparing for a compliance audit?(GM): As I’ve already mentioned, I believe that thebest approach is to develop a QMS that becomesan integral part of a company’s day-to-daybusiness. QMS management reviews and internalaudits should be routinely conducted, and actionitems should be addressed promptly. Making QMSadherence part of the daily routine will minimizeaudit preparation, and speed the audit process.(MSE): What synergies, if any, are availableto those companies that maintain multiplemanagement systems (i.e., quality, environmental,energy, etc.) in a single environment?(GM): International standards organizationshave made a significant progress in recent yearsto align the governing framework and technicalrequirements for different management systemsstandards, including those covering quality, theenvironment, energy use, safety and socialresponsibility. Common elements now includemanagement policy, objectives, documentation,record-keeping requirements, process controls,and auditing protocols. This alignment allowsorganizations to integrate various managementsystems activities into a single, all-encompassingprogram that reduces duplicate efforts andstreamlines the implementation, monitoring, andauditing processes.(MSE): How is TÜV SÜD America uniquelypositioned to provide information that companiescan use to implement and maintain an effectivequality management system?(GM): We know that successful organizationsseek management system certification to helpthem fulfill essential business needs. Our InsightAuditing®SWOT analysis is a unique, business-centric approach to auditing and an essentialvalue-added component of our services. OurInsight Auditing®SWOT analysis presents auditfindings in clear, understandable terms, identifiesspecific areas of business risk, and proposesspecific activities to address priority risks. Thisinformation not only results in a more effectivemanagement system but also directly connectssystem improvements with the business goals ofthe organization.(MSE): Why should companies choose TÜV SÜDAmerica as their quality management systempartner?(GM): TÜV SÜD has a global presence, withoperations in more than 30 countries around theworld. We also have extensive experience in everyaspect of system and product certification in adiverse range of industries. Our global presencealong with our broad expertise positions us as asingle resource for certified companies, regardlessof their size.For additional information on TÜV SÜD America’sInsight Auditing®SWOT approach or othercertification and auditing solutions, visit, or contact TÜV SÜDManagement Service at n“The contribution of quality management to the UK economy,”Report for the Chartered Quality Institute and CharteredManagement Institute, prepared by the Centre for Economicsand Business Research, June 2012.Accessed 16 March 2013,“OUR INSIGHT AUDITING®SWOT ANALYSIS IS A UNIQUE, BUSINESS-CENTRIC APPROACH TO AUDITINGAND AN ESSENTIAL VALUE-ADDED COMPONENT OF OUR SERVICES.”
  8. 8. TÜV SÜD E-ssentialsVol. 1 May 2013Page 8Using the Plan-Do-Check-Act for effectivemanagement system implementation makesgood business sense. The challenge that manycompanies face is how to minimize their overheadwhile maximizing their bottom line. The profitscome from the doing, but the planning, checking,and, acting also consume the resources of anorganization.The TÜV SÜD Insight Auditing®SWOT Analysisapproach brings a value-based, balanced methodologyto the audit process. We take the traditional SWOT(strengths, weaknesses, opportunities, and threats),and through its use and presentation, complimenttraditional audit reporting. Further, through theuse of the SWOT, we are able to report the auditresults in a familiar and beneficial summary toexecutive management, translating audit findingsfrom “ISO speak” into the language of yourbusiness.THE METHODOLOGYExpanding the focus from the findings, the SWOTanalysis offers a gradient summary of the holisticperformance of the management system. Throughthe incorporation of the quadrants, there is aclearer representation of the bigger picture and thepotential impact to your organization. Those itemsthat may have narrowly escaped the actual findingsare presented as either Opportunities or potentialThreats. There may also be cases where the actualrequirements are satisfied, however there is aperceived weakness that warrants the attention ofthe organization.The SWOT analysis is a complimentary communicationtool for your organization to use while reviewingthe performance of the management system fortargeting future goals and objectives, and as abaseline measure for continual improvementinitiatives.THE CHALLENGEThe subject manufacturer provides design,Driving Business Excellence with Insight Auditing®SWOT Analysis: A Case Studymanufacturing, customer support, and managementservices to companies in a range of industrysectors, including aerospace, automotive,consumer products, defense, electronics, industrial,medical, and telecommunications. This multi-billiondollar organization operates more than 50 facilitiesin more than 20 countries, employing more than80,000 people worldwide.In this engagement, the objective was to conductan Insight Auditing®SWOT analysis for eachaudited site. Once these facility-focused SWOTswere completed, they were consolidated into asingle, corporate-level SWOT, which was thenreviewed at the manufacturer’s senior managementannual meeting as part of its global planningefforts.The engagement involved auditing and reporting onkey management and functional areas. Data wascollected for four years, from 2008 through 2011.During this period, progress in the four aspectsof SWOT was tracked for both the manufacturer’sQMS (ISO 9001) and its EMS (ISO 14001).THE OUTCOMEThe use of the Insight Auditing®SWOT analysis,combined with TÜV SÜD America’s Customer FocusAuditing (CFA) strategy, resulted in significantimprovements in all targeted areas. Equallyimportant, the Insight Auditing®SWOT analysismethodology enabled the manufacturer to trackkey SWOT findings over time, and to measureimprovement in strategic areas of the business.This approach led to the achievement of a numberof significant accomplishments, as follows:• A significant shift in senior managementengagement, from simple “commitment” toactual “active engagement;”• A restructuring of the manufacturer’s globalquality organization, with a new global QAorganization now in place;• Development and implementation of processesto enhance customer satisfaction and buildcustomer loyalty; results demonstrated clearimprovement;• Improved operational excellence, with hardand soft cost-savings validated by corporateaccounting;• Major improvements in customer contractreview at local and corporate levels;• An overhaul of local and global internal auditsprocess, with effectiveness verified by third-party audits.These improvements clearly demonstrate theeffectiveness of an Insight Auditing®SWOTanalysis in the reporting of QMS/EMS results. Inaddition to improving QMS system audit reportingand the effectiveness of communications aroundaudit results, the use of an Insight Auditing®SWOT significantly improved overall quality andcompliance with audit standards, as reflected in thereduced number of noncompliance issues identified.THE BENEFITSMore than just a mechanism for reporting andcommunication of audit results, Insight Auditing®SWOT can drive sustainable improvements inbusiness processes and systems, contributingto overall customer satisfaction and confidencein an organization’s ability to meet customerrequirements. Another benefit is that it reaches abroader audience by appealing to the language ofsenior management, addressing systemic behaviorsthat affect the bottom line.While results vary from organization to organization,an Insight Auditing®SWOT analysis strengthensan organization’s quality and environmentmanagement systems while also, supporting anorganization’s overall strategic planning effort. Thebenefits can include both process improvementsand the achievement of a company’s financial andbusiness goals and objectives. Finally, adoptingan Insight Auditing®SWOT strategy can provideorganizations with an important competitiveadvantage.TÜV SÜD America is an internationally recognizedtesting, inspection and certification organizationwith more than 17,000 experts operating in over600 locations globally. This extensive networkmakes TÜV SÜD America an effective singlesource for organizations seeking expertise in thecertification and auditing of management systemsof all types. For additional information on TÜVSÜD America’s Insight Auditing®SWOT approachor other certification and auditing solutions,, or contact TÜVSÜD Management Service at n
  9. 9. Vol. 1 May 2013Page 9TÜV SÜD E-ssentialsDISCLAIMERAll reasonable measures have been taken to ensure the quality, reliability, and accuracy of the information in this newsletter. However, TÜV SÜD is not responsible for the third-party content contained in this newsletter. TÜV SÜD makes no warranties or representations, expressed or implied, as to the accuracy or completeness of information contained inthis newsletter. This newsletter is intended to provide general information on a particular subject or subjects and is not an exhaustive treatment of such subject (s). Accordingly,the information in this newsletter is not intended to constitute consulting or professional advice or services. If you are seeking advice on any matters relating to information inthis newsletter, you should – where appropriate – contact us directly with your specific query or seek advice from qualified professional people. The information contained in thisnewsletter may not be copied, quoted or referred to in any other publication or materials without the prior written consent of TÜV SÜD. All rights reserved © 2013 TÜV SÜD AmericaInc.Your Management Service contacts worldwide:|| Management Systems | Technical industry e-news updates essential to your operations ||Americas Asia Pacific EuropeTÜV SÜD America Inc. TÜV SÜD Asia Pacific Pte. Ltd. TÜV SÜD AGToll-free: 1-800-888-0123 Phone: +65 6427 4700 Phone: +49 (0)89 5791-0Fax: 978-977-0157 Fax: +65 6872 4948 Fax: +49 (0)89 5791-1551Email: Email: Email: info@tuev-sued.deWeb: Web: Web: www.tuv-sud.comManagement Service Webinars from TÜV SÜD AmericaAUDITING FOR THE SUSTAINED SUCCESS OF AN ORGANIZATIONThis webinar provides a general understanding of how the auditing process can be used to ensure compliance with quality management and environmentalmanagement systems standards, and to maintain the “sustained success of an organization,” as defined in ISO 9004:2009. The webinar will also discuss ISO19011 standard for conducting internal and external audits.SWOT CONCEPTS, VALUES, AND PROCESSBusinesses and other organizations frequently apply the principles of SWOT (strengths, weaknesses, opportunities, and threats) analysis in developingstrategies and goals. This webinar discusses the use of the SWOT analysis in the auditing of management systems, and how SWOT can lead to thedevelopment of actions that complement the long-term strategy of the business.EFFECTIVE ROOT-CAUSE ANALYSIS, CORRECTIVE AND PREVENTATIVE ACTIONSThis webinar offers an in-depth review of the essential elements of an effective Corrective and Preventative Actions (CAPA) process, including root-causeanalysis techniques. Participants will also learn effective problem-solving techniques and how to address audit “nonconformities.”ISO 9001: 2008 AND ISO FAMILY STANDARDS—FREQUENTLY ASKED QUESTIONSThis webinar provides a general understanding of ISO 9001, ISO 9004, and other ISO family standards through an easy-to-follow “frequently asked questions”format. Questions presented in the webinar have been collected by ISO Technical Committees, and clear and concise answers have been developed by expertsand users of the ISO 9000 series of standards.ISO 9001: 2008 OVERVIEW—THE ESSENTIAL CHANGES YOU NEED TO KNOWIn this webinar, participants will receive an overview of ISO 9001, as well as specific information related to the changes introduced in ISO 9001: 2008. Thewebinar is intended for professionals involved in the implementation, maintenance, and auditing of an ISO 9001-compliant quality management system.UNDERSTANDING, KNOWLEDGE, AND AWARENESS OF ISO 9004: 2009ISO 9004 provides guidance on how an organization can use a management system approach to achieve sustained business success. This webinar will discussthe concept of “sustained success” and how ISO 9004 can be applied to achieve a balanced approach in improving business processes, and in meeting theneeds and expectations of customers.As leaders in management systems certification and auditing, TÜV SÜD America offers a wide range of technical and educational resources for managers andother industry professionals. In addition to our Management Service E-ssentials eNewsletter, we offer a number of on-demand webinars, which are listed belowor available at our website at