TÜV SÜD | Vol. 1 May 2013

E-ssentialsManagement Service | Technical industry e-news updates essential to your operations

h t t p : / / w w w. t u v - s u d - a m e r i c a . c o m

The Application and Benefits of a Customer-Focused Audit Strategy

02

Using Insight Auditing® SWOT Analysis to Foster Business Excellence

04

TÜV SÜD America Profile: Gurdeep S. Mahal Case Study 06

Driving Business Excellence with Insight Auditing® SWOT Analysis: A Case Study 08

Management Service Webinars from TÜV SÜD America 09

Contents:

TÜV SÜD E-ssent ialsVol. 1 May 2013

Page 2

Editorial The Application and Benefits of a Customer-Focused Audit StrategyDear Reader,

Welcome to the premiere issue of Management Service

E-ssentials, the e-newsletter from the management

systems professionals at TÜV SÜD America!

As ISO 9001 and other sector certifications become

a 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 specific

needs of individual customers whose products are

produced at multiple production sites around the world

and can significantly reduce the auditing burden. In our

article, “Optimizing Excellence with a Customer-Focused

Auditing Strategy,” we discuss the characteristics and

benefits of a CFA approach.

At the same time, Insight Auditing® SWOT Analysis

is an essential part of TÜV SÜD America’s reporting

and communication of management system audit data.

Insight Auditing SWOT analysis presents clear audit

findings, and connects them with both specific areas

of business significance and recommended follow-up

actions, resulting in a more effective management

system. Our article, “Using Insight Auditing SWOT

Analysis to Drive Business Excellence,” discusses TÜV

SÜD America’s use of this exciting new tool.

In a separate article, “Driving Business Excellence

with Insight Auditing SWOT Analysis: A Case Study,”

we present actual results from the application of this

technique in a multi-million dollar manufacturing

organization employing more than 80,000 people in 20

countries around the world.

The task of implementing and maintaining a certified

quality management program can be daunting. In this

issue’s Profile piece, we speak with Gurdeep S. Mahal,

TÜV SÜD America’s ISO 9001 Technical Product Manager

and lead auditor. Based on his decades of experience,

Mahal shares his perspective on the benefits of effective

quality management programs, the challenges in

maintaining certified status, and some recommended

methods for streamlining compliance activities.

We hope that you enjoy this first issue of Management

Service E-ssentials. If you have ideas for topics you’d

like to see us cover in future issues, please let us know.

We look forward to hearing from you!

Craig Casillas

Vice President, Management Service

TÜV SÜD America

To support today’s increasing global demand for goods and services, manufacturers have established operations around the world in order to take advantage of production economies and to supply customers as efficiently and as cost-effectively as possible. However, quality-conscious customers expect the same level of product quality and service, regardless of where that product is manufactured. As such, manufacturers face a challenging task in achieving and maintaining quality standards required by their demanding customers.

For years, maintaining a single quality management system (QMS), such as those certified to the ISO 9001 quality standard, has been sufficient to demonstrate a manufacturer’s commitment to producing products of consistent quality. However, there has been an expansion in the number and type of sector-specific QMS certifications, as well as the introduction of other types of certifications, such as those for environmental management systems (EMS) and social accountability (SA). In addition, many major corporations have introduced their own specific quality and environmental management requirements for their supply chain.

Whether driven by industry sector expectations or customer demands, the proliferation of system certification requirements means a direct increase in the number of independent audits needed to demonstrate compliance with those requirements. For example, a typical manufacturer can carry as many as five separate ISO and/or sector-specific certifications, each of which require at least annual audits of each facility. For some global entities, this can mean dozens, or even hundreds, of audits annually, directly resulting in business

interruptions, lost productivity, and increased operating costs.

As ISO and/or sector certifications have become an absolute requirement for a typical global supply chain entity, the main customer concern remains the ability of its supply chain to fulfill customer-specific requirements. Hence, the best way for organizations to meet customers’ expectations is to implement a Customer-Focused Audit (CFA) strategy that addresses the specific needs of individual customers whose products are produced at multiple production sites around the world. This integrated approach can significantly reduce the auditing burden, with its attendant impact on production and operating costs, while reassuring customers that the products they buy will meet the same standards regardless of where they are produced.

In this article, we’ll discuss the characteristics and benefits of a CFA strategy, and review the experience of one global company who adopted a CFA strategy with distinctive results.

HOW DO CFAs DIFFER FROM TYPICAL ISO 9001 AUDITS?CFAs and ISO 9001 audits both assess a facility’s compliance with the standards requirements of ISO 9001 and other QMS certification programs. But the similarity between the two approaches ends there. Because CFAs are directly focused on addressing the needs and expectations of the targeted focused customer, it is the customer’s requirements that determine the selection of the auditors, and the production sites selected for auditing.

Further, CFAs pay particular attention to specific quality requirements as detailed in the contract between the manufacturer and the selected customer. In a typical ISO 9001 audit, it is not uncommon for auditors to be unaware of these requirements and other customer concerns. However, the scope of a CFA can be expanded beyond typical quality concerns to include these important considerations, as well as internal processes, procedures, management policies and

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priorities, and regulatory requirements. Finally, CFAs focus on leading, instead of lagging, indicators of quality. As such, CFAs evaluate a variety of quality indicators, such as compliance with the manufacturer’s own internal processes and procedures, compliance with the customer’s requirements, customer loyalty, and even the engagement and satisfaction of the manufacturer’s own employees. In this way, CFAs can provide the manufacturer with advance notice of quality issues, providing the opportunity for risk mitigation and corrective action before the customer’s perceived satisfaction is affected.

CFA ENGAGEMENT—CASE STUDYThe subject manufacturing company provides design, manufacturing, customer support, and management services to a wide range of industry sectors, including aerospace, automotive, consumer products, defense, electronics, industrial, medical and telecommunications. The manufacturer also provides customers with after-market service offerings, such as warranty services and product repairs. This multi-billion dollar organization operates more than 50 facilities in more than 20 countries around the world, employing more than 80,000 employees worldwide.

The manufacturer maintains numerous ISO and sector-specific QMS and EMS certifications, including AS9100, BABT, ESD 20.20, ISO 9001, ISO 13485, ISO 14001, OHSAS 18001, TL 9000, and others. On average, a single manufacturing site carries between three and five sector-specific certifications to meet the needs of customers representing different industry segments.

In this engagement, the manufacturer and global key account manager from TÜV SÜD America identified specific sites for the application of a CFA strategy, including facilities in North America, Europe, and Asia. The goal of the engagement was to assess the impact of a CFA strategy on improving customer satisfaction, audit-related business interruptions, audit process effectiveness, and the manufacturer’s internal integrated management system. Data was collected for a three-year period, from 2008 through 2010.

AREAS OF AUDIT FOCUSThe engagement design involved auditing the following management and functional areas:

• ManagementResponsibilities:Governance- Top management commitment, engagement,

and leadership- Customer-specific management review- Customer-specific internal audits & CAPA- Monitoring, measurement, analysis, and

review- Periodic business reviews: action tracking and

closure• StrategyandPolicy:Formulation,deployment,

and communication- Vision, strategy, planning, and implementation

alignment- Organization structure and alignment with

customer• ContractualRequirements:Reviewand

compliance- Customer contract review and execution—

corporate- Customer contract review and execution—

site level- Conformance to customer contractual

requirements• ConformancetoISO9001andCompany’sOwn

QMS Requirements

RESULTS OF THE ENGAGEMENTDuring the three-year engagement period, the most significant result was the reduction in the number of noncompliance items found at production sites utilizing the CFA strategy. Specifically, the number of minor noncompliance issues identified per audit day declined by 20% over the three-year engagement period, from 1.0 to 0.80 findings. Even more significant is the decrease in the number of major noncompliance issues identified at CFA sites, down 60% from an average of 0.50 per audit day in 2008 to just 0.20 per audit day in 2010.

Significant improvement was also observed in audit effectiveness. For example, the number of audit findings per audit day was 63% higher than the typical ISO 9001 audit, and the number of non-

conformances per audit day was 129% higher.

The manufacturer also benefited from steady reduction in the number of auditors involved. From 24 auditors in 2008, TÜV SÜD America used only 15 auditors in 2010. But fewer auditors conducting more efficient audits are only part of the story, since the reduction in the number of auditors actually resulted in improved auditor consistency, even while maintaining local auditor representation for specific language and cultures wherever possible.

These improvements clearly demonstrate the effectiveness of a CFA strategy. In addition to improving quality management system audit effectiveness and reducing business interruptions attributable to audits, the use of CFAs significantly improved overall quality and compliance with audit standards, as reflected in the reduced number of noncompliance issues identified. More than just a mechanism for assessing compliance, CFAs can actually help drive sustainable improvements in business processes and systems, contributing to overall customer satisfaction and confidence in the organization’s ability to meet customer requirements

By design, CFAs typically require the involvement of participants from multiple organizational levels, from senior management and business development to manufacturing site-level personnel and other internal support professionals. This multi-level involvement fosters greater communication throughout the organization, an improved understanding of the importance of the audit process, and a greater commitment to the quality goals of the customer. It also ensures a prompt response to quality issues that require remedial actions.

CONCLUSIONWhile results may vary from organization to organization, CFAs can strengthen an organization’s quality management system, reduce audit time, minimize business interruption, and increase the overall value of the auditing process. These benefits can directly result in significant quality improvements, and help to ensure compliance with customer-specific requirements. In the never-ending effort to win and maintain customer satisfaction and loyalty, adopting a CFA strategy

TÜV SÜD E-ssent ialsVol. 1 May 2013

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Using Insight Auditing® SWOT Analysis to Foster Business Excellence Even in the best circumstance, the auditing of an organization’s management system can be disruptive, time-consuming, and an expensive process for the organization involved. Internal resources must be made available to deal with Certification Body requirements and attention is diverted from business-critical tasks. Beyond these issues are the inevitable questions about how to justify the time and expense involved in the context of the larger business objectives of the organization.

For years, organizations have successfully used analytical tools such as SWOT (strengths, weaknesses, opportunities, and threats) analyses as a basis for the formulation of strategies and objectives, and also to fully investigate and evaluate the merits of specific initiatives. Now, TÜV SÜD America has applied the mechanism of the Insight Auditing® SWOT analysis to the auditing of a wide range of management systems. The result is a robust auditing process that also provides data to drive continuous business improvement.

Insight Auditing® SWOT Analysis is an essential part of TÜV SÜD America’s reporting and communication of management system auditing data. Provided with the standard report at the conclusion of an audit, the Insight Auditing® SWOT analysis presents in clear, understandable terms the audit findings, and directly connects them with specific areas of business significance and risks. The Insight Auditing® SWOT Analysis outlines a summary for follow-up actions that focus future activity in those areas of greatest priority. Over time, use of the Insight Auditing® SWOT not only results in a more effective management system but helps to connect such improvements with the larger goals of the organization.

In this article, we discuss TÜV SÜD America’s

•Strengths: Characteristics of the organization or business that give it an advantage over others;

•Weaknesses: Characteristics of the organization or business that place it at a disadvantage relative to others;

•Opportunities: Circumstances that provide an opportunity to improve performance or increase the likelihood of success;

• Threats: Circumstances that could hamper success or endanger the organization or business.

Insight Auditing® SWOT analysis, and its application in the reporting and communication of management system auditing data.

WHAT IS A SWOT ANALYSIS?A SWOT analysis is a tool that is typically used in strategic planning to identify and evaluate the various factors that may affect the efforts of an organization or business to be successful. The acronym SWOT stands for four separate aspects of an organization’s characteristics or circumstances, as follows:

can provide organizations with an important competitive advantage.

TÜV SÜD America is an internationally recognized testing, inspection, and certification organization, with more than 750 experts operating in the

United States, Canada, and Mexico. This extensive network makes TÜV SÜD America an effective single source for organizations seeking expertise in the certification and auditing of management systems of all types. For additional information on CFAs or other certification and auditing solutions,

visit www.tuvamerica.com/qmservices, or contact TÜV SÜD Management Service at info@tuvam.com. n

Figure 1: The Structure of a SWOT Analysis

Vol. 1 May 2013Page 5TÜV SÜD E-ssent ials

In strategic planning, a SWOT analysis can either be used as a starting point for developing an organization’s goals and objectives, or as a mechanism for assessing the likelihood of achieving goals and objectives. Additionally, in the auditing of a quality management system (QMS) or an environmental management system (EMS), a SWOT analysis can be used to interpret the significance and impact of audit findings on the business as well as a tool to drive continuous improvement.

HOW DOES INSIGHT AUDITING® SWOT ANALYSIS DIFFER FROM ISO 9001 AUDITING?ISO 9001 audits assess an organization’s compliance with the standard requirements of ISO 9001 and other certification programs. All third-party accredited registrars are required to comply with the provisions of ISO 17021 when reporting audit results. However, the similarity between ISO 9001 reports and TÜV SÜD America Insight Auditing® SWOT reporting ends there.

A typical audit report includes all audit findings, including nonconformities and improvement opportunities. Nonconformities are typically written in standard ISO language, which may impede full comprehension by personnel who work outside of quality or environmental management functions. The audit report is given to the company’s “management representative,” who is then responsible for addressing and closing out nonconformities. Formal actions in connection with improvement opportunities are seldom addressed.

By comparison, the TÜV SÜD America Standard Audit Report (SAR) is designed to include five different audit findings, as follows:

1. Best Practices2. Positive Comments3. Opportunities for Improvement4. Minor Nonconformities5. Major Nonconformities

Then, TÜV SÜD America also provides clients with a Value Assurance Insight Auditing® SWOT report at the time of closing meeting. This SWOT report supports and enhances the value of the SAR in the following ways:

•TheSWOTreportisaone-page,high-levelsummary that translates the audit findings into business focus items (BFIs);

•Thereportgoesbeyondatypicalauditreporttoinclude information that has potential business impact and consequences, including:- Strengths: Characteristics of the organization’s

QMS/EMS that give it an advantage over others

- Weaknesses: Characteristics that place the organization at a competitive disadvantage

- Opportunities: Areas where performance (e.g. revenues, profits, operation excellence) can be improved

- Threats: Areas within the QMS/EMS environment that could place the operation at risk

•TheSWOTreportisaddressedtotheclient’ssenior management, and is written in non-technical language to increase comprehension and understanding.

With the additional information provided by the Insight Auditing® SWOT assessment, an organization’s key decision makers have better intelligence regarding the organization’s priorities, and can make more informed decisions regarding the allocation of resources required to improve the overall business performance and minimize potential risks. The Insight Auditing® SWOT assessment translates the audit findings from the language of the standard into the language of senior management, and identifies how the findings affect the bottom line.

HOW CAN MULTI-SITE GLOBAL ORGANIZATIONS USE INSIGHT AUDITING® SWOT ANALYSIS FOR BUSINESS IMPROVEMENT?To support today’s global demand for goods and services, manufacturers have established operations around the world to take advantage of production economies and to supply customers as efficiently and as cost-effectively as possible. At the same time, quality-conscious customers require a uniform level of product quality and service, regardless of where a product is actually produced. As such, manufacturers face a significant challenge in achieving and maintaining quality and consistency standards expected by their customers.

The Value Assurance Insight Auditing® SWOT analysis is easily adaptable for use by global companies with multiple locations. Results from multiple locations within the scope of a single registration can be consolidated into a single SWOT report for an organization-wide assessment.

In addition to offering a platform for improvements in an organization’s QMS/EMS, Insight Auditing® SWOT reports can be integrated into an organization’s overall strategic and business planning effort. Because a SWOT report provides a high-level view of an organization’s strengths, weaknesses, opportunities, and threats, it offers a powerful tool to improve not only quality and environmental management systems but to drive organizational excellence across the board.

CONCLUSIONWhile results will vary from organization to organization, the use of an Insight Auditing® SWOT analysis can strengthen an organization’s quality and environment management systems, and provide important data and support for an organization’s overall strategic planning effort. These benefits may include both process improvements as well as the achievement of a company’s financial and business goals and objectives. In the never-ending effort to win and enhance customer satisfaction and loyalty, the adoption of an Insight Auditing® SWOT strategy can provide organizations with an important competitive advantage.

TÜV SÜD is an internationally recognized testing, inspection, and certification organization with more than 17,000 experts operating in over 600 locations globally. This extensive network makes TÜV SÜD America an effective single source for organizations seeking expertise in the certification and auditing of management systems of all types. For additional information on TÜV SÜD America’s Insight Auditing® SWOT approach or other certification and auditing solutions, visit www.tuvamerica.com/qmservices, or contact TÜV SÜD Management Service at info@tuvam.com. n

TÜV SÜD E-ssent ialsVol. 1 May 2013

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TÜV SÜD America Profile: Gurdeep S. Mahal

A 2012 study conducted by the U.K.’s Centre for Economics and Business Research found that, when evaluated against a broad array of metrics, an effective quality management system directly contributes to the success of an enterprise. Further, according to the study, one dollar invested in quality management typically yields a six-fold return in revenues and 16-fold reduction in expenses. Given such promise, it’s easy to see why companies and corporations around the world are embracing the science of quality management and implementing programs that focus on continuous improvement.

But while the benefits of a quality management system are clear, the actual task of implementing and maintaining a certified quality management program can be challenging. The implementation process is rigorous and time-consuming. In addition, addressing the auditing requirements of ISO 9001 along with those of other management systems, such as environmental (ISO 14001) and energy management (ISO 50001), without a strategic approach can result in duplicate activity.

TÜV SÜD America is a premier service provider of auditing and inspection services addressing a range of management systems. As ISO 9001 Technical Product Manager and certified lead auditor, Gurdeep Mahal knows from first-hand experience the benefits of ISO 9001 certification, as well as the challenges facing companies

seeking to improve the quality of their products and processes.

Mahal recently spoke with Management Service E-ssentials about the benefits of effective quality management programs, methods of streamlining compliance activities, and the quality management systems auditing and inspection services that TÜV SÜD America provides to industry.

(Management Service E-ssentials): The evidence clearly indicates that an effective quality management system (QMS) can provide companies with lasting improvements and a real return on investment. Share with us your views about the benefits of implementing and maintaining a quality management system.

(Gurdeep Mahal): An ISO 9001-based QMS provides a number of benefits. First, it increases the value of an organization’s activities by evaluating critical processes for effectiveness and identifying potential improvements. Second, a QMS fosters a culture of continuous improvement and supports an organization’s effort to meet the needs and expectations of its customers. And, finally, a well structured QMS provides an operational framework that supports the achievement of targeted business objectives and results.

(MSE): Aside from the potential financial return, what are some of the other benefits?

(GM): A QMS also provides a common platform on which an organization’s senior management team can effectively communicate their strategies, values, and priorities to employees, so that resources are allocated in the most cost-effective and efficient manner possible.

(MSE): Most of us assume that only manufacturing companies can benefit from implementing a quality management system. Can you tell us about non-manufacturing settings where companies have successfully implemented quality management systems?

(GM): Successful service businesses require the same dedication to quality as hardware product certified companies. Some of the world’s largest service industries have instituted ISO 9001-based QMS systems in a variety of specific service-related business, including product development, engineering, translation, transportation and delivery, customer service, human resource management, and education and training, to name just a few. In every case, the goal is finding an approach that improves quality and increases value for the customer.

(MSE): How does a company’s size and number of locations affect the decision to implement a quality management system?

(GM): Actually, the best approach for any company is to design, develop, and implement a QMS that most closely matches their business, the activities in which they are involved, and the complexity of those activities. Some of the issues to consider include:

• The number of employees• The company’s structure (a single division or

multiple divisions)• Geographic locations (a single site or many

sites in different locations)

• The nature of the company’s products or services

• The complexity of the production and distribution processes used

• The extent to which QMS principles are already in place

(MSE): From your perspective, what are the key stumbling blocks encountered by companies seeking to implement an ISO 9001-based quality management system? What steps can companies take to ease the implementation process?

(GM): Companies typically encounter problems around the following issues: 1) inadequate resources; 2) lack of clarity around the

“ownership” of the QMS and specific aspects of

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its implementation and management; 3) lack of management engagement; and 4) building a QMS that’s more complicated than it needs to be.

Overcoming these challenges requires the full engagement of an organization’s senior management in the development and implementation process, sufficient resources to complete the implementation and maintain the program, clarity and transparency about who is responsible for what, and a primary focus on what tasks, activities, and metrics will be most directly useful in achieving the objectives of the QMS program.

(MSE): The compliance audit is probably the most anticipated challenge for companies with an ISO 9001-compliant quality management system. In your experience, what are the most common mistakes that companies make in preparing for an audit?

(GM): Most often, companies preparing for an audit will generate reams of documentation instead of addressing root-cause issues for the nonconformities that may have been identified by auditors in the past. In my experience, companies with the best QMSs require little or no special preparation in advance of an internal or external audit. Their QMS programs should be working as a normal part of day-to-day operations for the benefit of the company, and not to satisfy auditors.

(MSE): What are some of the key best practices in preparing for a compliance audit?

(GM): As I’ve already mentioned, I believe that the best approach is to develop a QMS that becomes an integral part of a company’s day-to-day business. QMS management reviews and internal audits should be routinely conducted, and action items should be addressed promptly. Making QMS adherence part of the daily routine will minimize audit preparation, and speed the audit process.

(MSE): What synergies, if any, are available to those companies that maintain multiple management systems (i.e., quality, environmental, energy, etc.) in a single environment?

(GM): International standards organizations have made a significant progress in recent years to align the governing framework and technical requirements for different management systems standards, including those covering quality, the environment, energy use, safety and social responsibility. Common elements now include management policy, objectives, documentation, record-keeping requirements, process controls, and auditing protocols. This alignment allows organizations to integrate various management systems activities into a single, all-encompassing program that reduces duplicate efforts and streamlines the implementation, monitoring, and auditing processes.

(MSE): How is TÜV SÜD America uniquely positioned to provide information that companies can use to implement and maintain an effective quality management system?

(GM): We know that successful organizations seek management system certification to help them fulfill essential business needs. Our Insight Auditing® SWOT analysis is a unique, business-centric approach to auditing and an essential value-added component of our services. Our Insight Auditing® SWOT analysis presents audit findings in clear, understandable terms, identifies specific areas of business risk, and proposes specific activities to address priority risks. This information not only results in a more effective management system but also directly connects system improvements with the business goals of the organization.

(MSE): Why should companies choose TÜV SÜD America as their quality management system partner?

(GM): TÜV SÜD has a global presence, with operations in more than 30 countries around the world. We also have extensive experience in every aspect of system and product certification in a diverse range of industries. Our global presence along with our broad expertise positions us as a single resource for certified companies, regardless of their size.

For additional information on TÜV SÜD America’s Insight Auditing® SWOT approach or other certification and auditing solutions, visit www.tuvamerica.com/qmservices, or contact TÜV SÜD Management Service at info@tuvam.com. n

“The contribution of quality management to the UK economy,” Report for the Chartered Quality Institute and Chartered Management Institute, prepared by the Centre for Economics and Business Research, June 2012. Accessed 16 March 2013, http://www.managers.org.uk/sites/default/files/u54973/Quality_Management_CQI_CMI_June2012_0.pdf.

“OUR INSIGHT AUDITING® SWOT ANALYSIS IS A UNIQUE, BUSINESS-CENTRIC APPROACH TO AUDITING AND AN ESSENTIAL VALUE-ADDED COMPONENT OF OUR SERVICES.”

TÜV SÜD E-ssent ialsVol. 1 May 2013

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Using the Plan-Do-Check-Act for effective management system implementation makes good business sense. The challenge that many companies face is how to minimize their overhead while maximizing their bottom line. The profits come from the doing, but the planning, checking, and, acting also consume the resources of an organization.

The TÜV SÜD Insight Auditing® SWOT Analysis approach brings a value-based, balanced methodology to the audit process. We take the traditional SWOT (strengths, weaknesses, opportunities, and threats), and through its use and presentation, compliment traditional audit reporting. Further, through the use of the SWOT, we are able to report the audit results in a familiar and beneficial summary to executive management, translating audit findings from “ISO speak” into the language of your business.

THE METHODOLOGYExpanding the focus from the findings, the SWOT analysis offers a gradient summary of the holistic performance of the management system. Through the incorporation of the quadrants, there is a clearer representation of the bigger picture and the potential impact to your organization. Those items that may have narrowly escaped the actual findings are presented as either Opportunities or potential Threats. There may also be cases where the actual requirements are satisfied, however there is a perceived weakness that warrants the attention of the organization.

The SWOT analysis is a complimentary communication tool for your organization to use while reviewing the performance of the management system for targeting future goals and objectives, and as a baseline measure for continual improvement initiatives.

THE CHALLENGEThe subject manufacturer provides design,

Driving Business Excellence with Insight Auditing® SWOT Analysis: A Case Study

manufacturing, customer support, and management services to companies in a range of industry sectors, including aerospace, automotive, consumer products, defense, electronics, industrial, medical, and telecommunications. This multi-billion dollar organization operates more than 50 facilities in more than 20 countries, employing more than 80,000 people worldwide.

In this engagement, the objective was to conduct an Insight Auditing® SWOT analysis for each audited site. Once these facility-focused SWOTs were completed, they were consolidated into a single, corporate-level SWOT, which was then reviewed at the manufacturer’s senior management annual meeting as part of its global planning efforts. The engagement involved auditing and reporting on key management and functional areas. Data was collected for four years, from 2008 through 2011. During this period, progress in the four aspects of SWOT was tracked for both the manufacturer’s QMS (ISO 9001) and its EMS (ISO 14001).

THE OUTCOMEThe use of the Insight Auditing® SWOT analysis, combined with TÜV SÜD America’s Customer Focus Auditing (CFA) strategy, resulted in significant improvements in all targeted areas. Equally important, the Insight Auditing® SWOT analysis methodology enabled the manufacturer to track key SWOT findings over time, and to measure improvement in strategic areas of the business. This approach led to the achievement of a number of significant accomplishments, as follows:• A significant shift in senior management

engagement, from simple “commitment” to actual “active engagement;”

• A restructuring of the manufacturer’s global quality organization, with a new global QA organization now in place;

• Development and implementation of processes to enhance customer satisfaction and build customer loyalty; results demonstrated clear improvement;

• Improved operational excellence, with hard and soft cost-savings validated by corporate accounting;

• Major improvements in customer contract review at local and corporate levels;

• An overhaul of local and global internal audits process, with effectiveness verified by third-party audits.

These improvements clearly demonstrate the effectiveness of an Insight Auditing® SWOT analysis in the reporting of QMS/EMS results. In addition to improving QMS system audit reporting and the effectiveness of communications around audit results, the use of an Insight Auditing®

SWOT significantly improved overall quality and compliance with audit standards, as reflected in the reduced number of noncompliance issues identified.

THE BENEFITSMore than just a mechanism for reporting and communication of audit results, Insight Auditing®

SWOT can drive sustainable improvements in business processes and systems, contributing to overall customer satisfaction and confidence in an organization’s ability to meet customer requirements. Another benefit is that it reaches a broader audience by appealing to the language of senior management, addressing systemic behaviors that affect the bottom line.

While results vary from organization to organization, an Insight Auditing® SWOT analysis strengthens an organization’s quality and environment management systems while also, supporting an organization’s overall strategic planning effort. The benefits can include both process improvements and the achievement of a company’s financial and business goals and objectives. Finally, adopting an Insight Auditing® SWOT strategy can provide organizations with an important competitive advantage.

TÜV SÜD America is an internationally recognized testing, inspection and certification organization with more than 17,000 experts operating in over 600 locations globally. This extensive network makes TÜV SÜD America an effective single source for organizations seeking expertise in the certification and auditing of management systems of all types. For additional information on TÜV SÜD America’s Insight Auditing® SWOT approach or other certification and auditing solutions, visit www.tuvamerica.com/qmservices, or contact TÜV SÜD Management Service at info@tuvam.com. n

Vol. 1 May 2013Page 9TÜV SÜD E-ssent ials

DISCLAIMERAll 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 in this 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 in this newsletter, you should – where appropriate – contact us directly with your specific query or seek advice from qualified professional people. The information contained in this newsletter 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 America Inc.

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Management Service Webinars from TÜV SÜD America

AUDITING 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 environmental management systems standards, and to maintain the “sustained success of an organization,” as defined in ISO 9004:2009. The webinar will also discuss ISO 19011 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 developing strategies and goals. This webinar discusses the use of the SWOT analysis in the auditing of management systems, and how SWOT can lead to the development 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-cause analysis techniques. Participants will also learn effective problem-solving techniques and how to address audit “nonconformities.”

ISO 9001: 2008 AND ISO FAMILY STANDARDS—FREQUENTLY ASKED QUESTIONS This 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 experts and 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. The webinar 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 discuss the concept of “sustained success” and how ISO 9004 can be applied to achieve a balanced approach in improving business processes, and in meeting the needs 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 and other industry professionals. In addition to our Management Service E-ssentials eNewsletter, we offer a number of on-demand webinars, which are listed below or available at our website at www.tuvam.com/tuvnews/webinars.cfm.