Common Measures of Efficiency for Processes: With TS2, the introduction of the process approach to auditing, combined with

the overall emphasis on improvement of objectives and the requirements of clause 5.1.1, 5.4.1 and 6.2.2, have resulted in an increased audit focus on measurements of effectiveness and efficiency for COPs, MOPs and SPs. In order to improve our own effectiveness in assessing these requirements, the following table of examples (not requirements!) of measurements you might encounter on your audit path is provided. This is by no means a complete list and you will note that some measures of effectiveness may also be considered measures of efficiency. Process Related Clauses Effectiveness Measure Efficiency Measure Comments (Primary) Control of 4.2.3 Number of changes to proposed Measurement of time to Number of changes may indicate an Documents documents and rate of change access time documentation effective system (in that the system Number of incidents of obsolete Document control resources is being utilized) or an ineffective documents found in use (normalized staff hours and system (in that valueless documents Number of internal CARs related to cost for system maintenance) are being approved and therefore documentation issues vs. rate of document need constant revision) issuance and change The amount of time spent on this function (review/approval and administrative) and tool costs (including support) can viewed in relation to the amount of activity within the system to determine efficiency

Management Review and Management responsibility processes

5.6

Measured improvement from recommendations of management review (5.6.2.g) On-time completion of Mgmt Review action items (5.6.2.e) Customer satisfaction via report cards and 8.2.1 Number of repeat occurrences of management review action items Employee awareness and motivation measurements per 6.2.2.4 Turnover rates Employee satisfaction surveys Hours of training delivered CARs with a root cause of training

Manager per employee ratio G&A ratios Operating profit

Effectiveness of management is also generally manifested in profit margins (ROI for projects undertaken at the direction of management) and growth of the business, although this must be viewed in relation to the macroeconomic conditions of the industry.

Hiring, training and Motivation

6.2

Time from posting jobs to filling Employee qualification time frame Ratio of HR staffing to total employee count

Turnover rates may indicate that the process was not effective in matching personnel with their skills or environment or may be a function of macroeconomic conditions. Hours of training is a standard metric (it is commonly accepted in some industries world class organizations deliver 40 hours per year, or spend an equivalent of 5% of an employees salary on training for that employee). These may be looked at with some skepticism as the pure delivery of training may not necessarily correlate to its effectiveness As part of the quotation process you

Scope and Quote

7.2

Quote win rate

Quote Cycle time

 Quoted margin vs. actual

Product Realization (Design, APQP and Product Approval)(

7.1, 7.3, 8.2.3

Rate of first time approval of PPAP and Run @ Rate Customer feedback (waivers, deviations, CCs) related to design or product realization process failures Number of design and process change requests Processes running at expected capability

Rate of meeting customer timing requirements Man-hours per project Rate of meeting interim project milestones

will likely encounter data for productivity and cost (7.3.2.2). A good effectiveness measure for this process is to determine whether the expected productivity/cost numbers match the actual for jobs won. Many clients do not impose this metric could be an opportunity for improvement as use of this data can help them more accurately quote jobs (and thus reduce their business risk). Some of the measures listed here may also be indicators of the effectiveness of the scoping and quoting process

Purchasing

7.4

Incoming Product Quality Verification Processes (Receiving Inspection)

7.4.3.1

Trends related to from 7.4.3.2 will show effectiveness of the selection process Number of SCARs and number of repeat SCARs First time approval rate for supplier PPAP POs issued within lead time (or conversely, number of expedites) Reject rate from subsequent processes for products that have passed receiving inspection

Cost attributed to supplier materials and services Supplier PPAP timing requirements being met

Production Processes

7.5.1/2

Internal and external PPM OTD Scrap rate

Hold time for products in inspection (products awaiting inspection activity) Number of inspections completed per inspector per a specified period of time Operator productivity measures (related to productivity targets set via 7.2/7.3).

Efficiency metrics may tie to human resources or the efficiency of the inspection technique used (for example, layout by hand vs. with CMM). Schedule achievement from production scheduling may be a more applicable measure than overall OTD. Operator productivity usually are normalized vs. a sales number but may be straight rates per process, as per a time study (related to cost) Effectiveness measures may also, depending on calculation, be interpreted as measures of efficiency

Preventive Maintenance

7.5.1.4

Machine Availability OEE

Mean time to repair Number of PMs completed

Processes Tooling Management Processes 7.5.1.5

Production scheduling

7.5.1.6

Uptime (downtime)-planned and unplanned Line stoppages due to lack of tooling Tooling failure/replacement rates (tool life may be an indicator of tool design process effectiveness or effectiveness of tooling maintenance) On-Time Delivery Incidents of premium freight

on time Average repair time (or turn around time for tool repairs) Achievement of schedule for new tooling

On-hand inventory levels (materials, components and finished goods) Number of schedule changes (not driven by customer request) Picks per operator

Overall OTD will be affected by other factors.

Warehousing processes (storage and inventory management)

7.5.5

Calibration

7.6

Internal Audits

8.2.2

On-hand inventory levels Amount of product that is obsoleted each year OTD Complaints due to wrong part number shipped Complaints due to shipping damage Amount of product that becomes expired each year (shelf life expiration) Number of gages past due for calibration Incidents of Out-of-Tolerance gages (and number impacting product quality) Audits occurring on-time to schedule

Gages calibrated per month Average external cost of gage calibration per gage

Cost per audit hour

Cost per audit hour is a function of

Control of Nonconforming Product

8.3

Comparison of internal audit nonconformances to external findings Number of escapes

the time it takes to complete the audit and the auditors salary Hold time for disposition of non-conforming product Number of escapes would include instances where a product has been identified as non-conforming but still shipped. Had the product not been identified as non-conforming and shipped, this would relate to a production or product measurement measurement. Both effectiveness and efficiency relate to ROI as ROI would include the return from the project but also consider the investment (including capital expenditure, training and staffing) to tackle the project.

Continual Improvement

8.5.1

ROI for improvement projects undertaken

ROI for improvement projects undertaken

Corrective Action

8.5.2

Number of repeat CARs CARs completed on time

Hours per Corrective Action closure