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1 P ageAUDIT REPORT –MANUFACTURINGDEPARTMENT COMPANY HIDDEN OZONE EXCELLENCE CONSULTINGTEL: (971) 4 354 3440 Web: www.oz1consulting.com Email: ozone@oz1consulting.com
2 P ageTable of ContentsEXECUTIVE SUMMARY: . 41.0INTRODUCTION: . 51.1Objective . 51.2Background . 51.3Scope of Engagement . 51.4Approach for Engagement . 51.5Acknowledgement. 61.6Limitation . 62.0CURRENT STATE OF MANUFACTURING DEPARTMENT AT COMPANY HIDDEN . 72.1Customer Order Management . 102.2Supplier & Sub-contractor Control. 102.3Specification and Material Change Control . 102.4Material Storage & Flow . 102.5Maintenance Services . 112.6Tooling Control . 112.7Packaging & Shipping Control . 112.8Facilities and Environmental Control . 112.10Product/Process Introduction & Changes . 122.11Information Communication & Corrective Action . 122.12Plant Management & Quality Systems. 122.13Material Controls . 122.14Calibration Systems . 133.0PROPOSED STATE OF MANUFACTURING DEPARTMENT AT COMPANY HIDDEN : . 143.1XXXX . 153.2XXXX . 153.3XXXX . 163.4XXXX . 163.5XXXX . 173.6XXXX . 183.7XXXX . 183.8XXXX . 18
3 P age3.9XXXX . 193.10XXXX . 193.11XXXX . 193.12XXXX . 203.13XXXX . 204.0IMPLEMENTATION PLAN . 21TASK. 21
4 P ageEXECUTIVE SUMMARY:OEC would like to thank the management at COMPANY HIDDEN for the opportunity to audit andreport on the infrastructure and processes within the manufacturing department at COMPANYHIDDEN .Based on our observations, audit and analysis, we conclude that the manufacturing and materialsdepartments at COMPANY HIDDEN “Needs Improvement”. This indicates that a combination ofweaknesses in the system of control and minor non-compliances with the controls in place is such as toplace service objectives at risk.We have identified 13 areas of opportunities for COMPANY HIDDEN Management toconsider. Our report is structured as follows: In the first section titled “Current State of Manufacturing Department at COMPANYHIDDEN ” we have provided our observations related to the procedures and processesbeing followed at COMPANY HIDDEN . In the next section titled “Future State of Manufacturing Department at COMPANYHIDDEN ” we have provided the proposed changes for the management to consider andimplement. In the final section “Implementation Plan”, we provide a project plan with approximatetimeline and sequence of implementation of the identified improvement opportunities.As per our audit, the top three‘Positives’ for the Manufacturing Department at COMPANYHIDDEN are as follows: The supervisors at COMPANY HIDDEN are very knowledgeable and highly experienced.They serve as the backbone of the entire manufacturing operation.The tool calibration system used at COMPANY HIDDEN is very robust.There is adequate space and machinery to achieve output targets.We observed the following top three areas of ‘Improvement’ for the Manufacturingdepartment at COMPANY HIDDEN : Absence of a process documentation and record keeping within the manufacturingdepartment.Absence of metrics and visual management of manufacturing processes.Absence of an improvement of process flows and material management within the facility
5 P age1.0 INTRODUCTION:1.1 ObjectiveThis third party audit includes review of the manufacturing and materials process practices at COMPANYHIDDEN located in PLACE HIDDEN . The audit was conducted by Ozone Excellence Consulting (OEC)between March 5th 2017 to April 15th 2017. The purpose of the audit is to provide an independent andobjective view regarding the manufacturing and materials processes at COMPANY HIDDEN . Thisreview will propose improvements to the manufacturing processes considering the size, product andgeographical location that COMPANY HIDDEN operates in.This report presents the third party review findings with observations and best practicerecommendations, where there may be opportunities for improvement.1.2XXXXBackground1.3Scope of EngagementThe scope of the engagement is to conduct a third party audit assessment of the Manufacturing andMaterials Management Department at COMPANY HIDDEN .OEC considers the incoming material at dock as the starting point for this audit and the finished goodsleaving the COMPANY HIDDEN facility at XXXX as the end point.Our scope for this engagement is summarized below. Review of Manufacturing Operations within COMPANY HIDDEN Review of Material Handling Procedures at COMPANY HIDDEN Review of Material movement within the facilityReview of Metrics and KPI for the Operations departmentReview of Process Routing within the Production departmentReview the Inprocess inspection and documentation proceduresReview of Operational Procedures/SLA/ManualsReview content and understanding of SOP’s, Manuals and their adherence thereofProvide recommendation for in XXXXProvide recommendations for all of the above mentioned areas1.4Approach for EngagementThe approach of the engagement is as follows: A detailed understanding of the processes was obtained by interviewing the Process owners basedon comprehensive checklist covering the processes and sub process of the manufacturing department.
6 P age Copies of system documents were requested and reviewed to familiarize and understand thecompleteness of the departmental processes. Multiple site visits were also undertaken to review theperformance of the department and infrastructure. Key risks and controls were identified and documented based on process understanding, site surveysand interviews conducted. Detailed examination of key documents related to the process and sub processes was conductedbased on the identified risks. The observations and recommendations in this report are based upon reviewing the documents andinfrastructure, performing site inspections, auditors’ previous experience in manufacturing audits, bestpractices and benchmarks, including documentation provided by COMPANY HIDDEN personnel anddiscussions with the Process Owners and Senior Management.1.5AcknowledgementWe would like to take this opportunity to thank the management and staff at COMPANY HIDDEN fortheir cooperation and assistance during the course of the engagement. We are committed to offeringyou excellent service and look forward to building a long and value-added relationship with you.1.6LimitationThis third party audit procedures rely on information and representations made available to the auditorsby the process owners and key individuals associated with the processes. Our third party auditprocedures comprise inquiries, observations and limited tests of transactions on a sample basis,covering the detailed assessment objectives.Any misrepresentation intentional or otherwise may affect the results and recommendations of thisaudit.
7 P age2.0 CURRENT STATE OF MANUFACTURING DEPARTMENT AT COMPANY HIDDEN OEC began its audit by performing a walk through and understanding the current processes at COMPANY HIDDEN . We reviewed the process flow within the manufacturing operations at COMPANY HIDDEN . Our audit summarizes the overall operations process at COMPANY HIDDEN inthe flowchart below.Fig 1: Current State Production Process DiagramWe observed the following areas of opportunity within the process flow: XXXX XXXX XXXX XXXX XXXX
8 P age XXXXAs a next step we filled out a PQPR for each product family. We have graphically represented (SpaghettiDiagram) the process routings for each product family on the current facility layout.A spaghettidiagram is a visual representation using a continuous flow line tracing the path of an item or activitythrough a process. The continuous flow line enables process teams to identify redundancies in the workflow and opportunities to expedite process flow.Fig 2: Current State Material Flow DiagramObservations: XXXX XXXX
9 P age XXXX XXXXEDUCATION TRAINING AND SAFETY AWARENESSPRODUCT/PROCESS INTRODUCTION OR CHANGESINFORMATION COMMUNICATION AND CORRECTIVE ACTIONSPLANT MANAGEMENT AND QUALITY SYSTEMSMATERIAL CONTROLSCALIBRATION SYSTEMTOTAL%FACILITIES AND ENVIRONMENTAL CONTROLSMAX SCOREPACKAGING AND SHIPPING CONTROLSSCORETOOLING CONTROLNOT SURVEYED (N/A)MAINTENANCE SERVICESNON EXISTANT (0)MATERIAL STORAGE AND FLOWSUB STANDARD (1)SPECIFICATION AND MATERIAL CHANGE CONTROLACEPTABLE (2)SUPPLIER AND SUB CONTRACTOR CONTROLGOOD (3)CUSTOMER SERVICEVERY GOOD (4)SECTIONEXCELLENT (5)As a next step OEC performed a 14 section audit on the entire manufacturing operations at COMPANYHIDDEN . We reviewed your facility using the same standards that are used to audit manufacturingoperations of various global manufacturing facilities. A summarized score for the entire audit ispresented able 1: Summarization of Process AuditRating0 - 234This score is classified as “Must Improve.” A score which falls within this range needsimmediate attention of Management to initiate remedial actions.235 – 325This score is classified as“Good to Improve.” A score which falls within this range requiresimmediate efforts from the Company/Department while taking into considerationsfinancial impact for the organization.325 -468This score is classified as“Stable.” A score in this range is an observation for theManagement to consider opportunities for continuous improvement.We will elaborate on each section in detail below. We have attached the completed audit checklist as anaddendum to this report.
10 P a g e2.1 Customer Order ManagementIntroduction:This section covers the various activi
This third party audit includes review of the manufacturing and materials process practices at COMPANY HIDDEN located in PLACE HIDDEN . The audit was conducted by Ozone Excellence Consulting (OEC) between March 5th 2017 to April 15th 2017. The purpose of the audit is to provide an independent and
