When folks hear the term audit, they generally think of an IRS audit. Not a pleasant thought. The term invokes an image of hot lights, endless questions, pouring over boxes of records, all in the attempt to find wrong doing on the part of the tax payer.
When you consider a quality assurance or safety third party audit, let us consider some different aspects. Audits are in place and are required to ensure compliance with ANSI-TPI regulations and OSHA regulations. Their benefits are many. Some issues have already been considered, and some you may not have considered are outlined below. In many cases, third party compliance takes a back seat to other issues, but is that wise?
- Validation. A verification of compliance with ANSI-TPI and OSHA regulations and guidelines.
- Perspective. Another set of eyes on your operations from a person with a broad perspective. The auditor has an advantage that is improved with compliance audits experience in multiple environments and styles.
- Risk Control. Capturing potential issues or problems that can escalate and lead to loss to the component manufacturer.
- Objectivity. An auditor’s basis is a standard of quality. It is a series of best practices that are shared among the auditor’s group of clientele. This sharing strengthens each individual’s quality program.
- Knowledge Base. An auditor’s knowledge of the codes and requirements are to a level of detail that is not reasonably obtainable for a component manufacturing manager.
- Uniqueness. Audits are inherently unique to each plant and personnel. They are specific to the plant’s safety and quality program.
- Accuracy. Due to its objective position, the results of a third-party audit often provide a more accurate view of what is occurring within a plant environment.
- Graded Results. While initial results often show lower audit scores, many fabricators realize that the results and evaluation can uncover long-standing issues of non-compliance and opportunities for loss that can be immediately fixed, thereby leading to a positive ROI for the audit program.
- Targeted. Audits conducted by third parties should not be taxing on time and labor resources. However, unlike an in-house quality review, a third-party auditor enters a location for the sole purpose of conducting the audit. They are not interrupted by the need to complete a job, conduct an employment interview, or deal with customer situation.
The use of a third party audit can bring great value to any manufacturer. Companies in other industries have seen that using a third party to conduct all audits throughout an organization or supplementing a third party for some of the audits brings a fresh set of eyes and a different approach to the research, review, and analysis of shop results, which can lead to reduced loss and overall earnings improvement.