Quality & Industrial Performance

LAYERED PROCESS AUDIT

“Going From Reactive to Proactive”

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Reference Doc-Info: 01601_13_00154

PSA GM Purchasing & Logistic Committee 1

 LAYERED PROCESS AUDIT
Introduction
PURPOSE: SCOPE:
• Ensure consistent application and • Assembly Area
execution of standards.
• Manufacturing Operations
• Improve built-in-quality and
• Shipping / Receiving
increase operator/leadership
awareness facilitated by • All Operations
coaching/teaching interaction
• Other Support Functions
between leadership & operators

RESPONSIBILITY:
• Ownership
 Plant/Operations Mgr

• Contingency Plan for All Situations

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 LAYERED PROCESS AUDIT
BENEFITS:
• Layered Process Audits provide a system to:
– verify compliance to the documented process.
– instill discipline.
– improve communication.
– improve overall quality.

• Ensures a high level of process control by identifying & controlling high

risk/significant process elements.

• Maintains proper application of standards as defined & achieved through

operational readiness process.

• Identify opportunities for improvement & provide a process for effective

follow up.

PSA GM Purchasing & Logistic Committee 3

 LAYERED PROCESS AUDIT
Layered Process Audit Strategy, what are we searching for?

Criteria of Requirement
1 – page 5-8
2 – page 9-12
3 – page 13-16
4 – page 8
5 – page 16
Auditor hints – page 17

Next Requirement

PSA GM Purchasing & Logistic Committee 4

 LAYERED PROCESS AUDIT
Process Overview Layered Audits

•Safety – PPE
•Standardized Work
•In process
Product Checks
•WPO,Visual Mgmt. Plant
•Tool Maintenance Staff Audit
•Process Control
Checksheets Shift Leader
•Etc. Audit
QSB+ Key Elements
Group Leader Audit

Basis of Layered Audits

Team Leader Audit

Layered Audit

Performance Reviewed
in Plant Leadership Meeting Non-conforming info
- Countermeasures

•Completion of audits to schedule Performance

•Compliance Metrics

PSA GM Purchasing & Logistic Committee 5

 LAYERED PROCESS AUDIT
Process explanation
• Layered Process Audit (LPA) is a standardized audit performed on a regular,
frequent basis by all layers of the organization to verify adherence to
operational standards.

• LPA’s are an industry standard.

• LPA’s supplement ongoing control plan and job instruction checks.

• LPA’s shall be owned by manufacturing leadership (Team Leader – Plant /

Operations Manager).

• Quality and other functions will participate and support the LPA system.

PSA GM Purchasing & Logistic Committee 6

 LAYERED PROCESS AUDIT
Process explanation (continued)
• The Layered Process Audit system includes:
– Schedule and tracking of audits.

– Identifying high risk items for the LPA.

– A LPA Checklist that evaluates current processes to established

standards.

– Identification of corrective action requirements and

countermeasures.

– Regular review process by senior management of the audit results

and corrective actions.

PSA GM Purchasing & Logistic Committee 7

 LAYERED PROCESS AUDIT
Process explanation (continued)
Choose the  Pick the station to be audited based on the
Workstation LPA schedule

Conduct the Audit  Follow LPA Check sheet

 Immediately inform all Team members
about the audit results.
 Record all deviations on LPA Check sheet
Give feedback & and Countermeasure sheet.
document results  Assign target close date & champion
 Implement suggested countermeasures
as soon as possible.
 Follow-up on open items, make sure to close
by target close date.
Follow-up  Elevate problem to higher level after target
Close date.
 Perform Management review.

PSA GM Purchasing & Logistic Committee 8

 LAYERED PROCESS AUDIT
LPA Check sheet

• LPA results are documented on LPA Check sheet .

The intent is to have a single page LPA Check sheet form that is manually
completed on production floor. The back side of the form is available to write down
the non-compliance comments.
• Establish LPA Check sheet questions from the high risk items.
– A LPA Check sheet should have two common sections (Workstation and
Manufacturing System) and one section (Quality Specific), that is customized to a
specific Product Line or Area of the Plant.
– Workstation and Quality Specific sections of the LPA Check sheet shall be
completed by all auditors. The Manufacturing System section shall be completed
by the site leadership only.
– A LPA Check sheet should be created for each unique processing area

PSA GM Purchasing & Logistic Committee 9

 LAYERED PROCESS AUDIT
LPA Check sheet (continued) (Example)
HEADER: Enter the System Name
Product line or an area of the Plant
1. Molding
2. Paint/Coating
3. Assembly
4. Warehouse/Shipping
In this Example the
Section #1:
Manufacturer
COMMON Workstation Questions
would have (4)
four unique one
Section #2: page audit
UNIQUE Quality Focused
Questions forms/files, to
cover all
processes.
Section #3:
COMMON Manufacturing System
Questions

PSA GM Purchasing & Logistic Committee 10

 LAYERED PROCESS AUDIT
LPA Check sheet (continued)
Header & Work Station Specific (Example)

Has the team member been qualified to

requirements of the job and is this documented?

PSA GM Purchasing & Logistic Committee 11

 LAYERED PROCESS AUDIT
LPA Check sheet (continued)
Quality Specific & Manufacturing System (Example)

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 LAYERED PROCESS AUDIT
Development of high risk items for auditing
High risk items shall be identified and included in the audit.
They should be organized in 3 main sections:
• Workstation Specific – 5S, Workplace organization, Safety, Ergonomic– list of
checks, applicable to all workstations
• Quality Focused – checks are specific to operations and developed by product
line or area, based on quality feedback(internal/external), process knowledge,
and problem solving
• Manufacturing System Specific – Flexibility Charts up to date, Workplace
Organization being followed, Process Control Plan up to date and followed,
Material properly identified, Fast Response meeting are taking place and Exit
Criteria is being followed in a proper way, Call for help system working, Business
Metrics on the Shop Floor posted and up to date, Layered Audit being performed
and actions are being implemented, etc. – list of checks applicable to an
area/department/plant

PSA GM Purchasing & Logistic Committee 13

 LAYERED PROCESS AUDIT
Development of high risk items for auditing (Continued)
The Workstation Specific section of the Layered Audit Check Sheet is used by all levels
of the organization. This section looks at things such as:

• Ensuring proper safety and ergonomic practices and PPE are being followed.

• Ensuring proper tools, gages and materials are available & used.

• Ensuring standardized work & quality standards are understood & followed.

• Ensuring Andon system is functioning properly.

• Ensuring Workplace Organization & Visual Management standards are

maintained (e.g. according to the plant WPO standards and Visual Management
policy).

• Ensuring compliance to Material Processes – FIFO/Min.-Max. levels.

PSA GM Purchasing & Logistic Committee 14

 LAYERED PROCESS AUDIT
Development of high risk items for auditing (Continued)
The Quality Focused section (used in production areas) covers all important quality
issues for specific area/plant and is also used by all levels of the organization to
support the team member:

• Ensuring control of identified significant process elements which can impact:

• Warranty
• Customer (Internal/External)

• Specific items regarding corrective action implementation to customer

concerns. (e.g. error proofing verification, use of fixture added to complete
standardized work

• Ensure error proofing is functioning properly and identified high risk/

significant process elements are controlled to prevent known problems from
reoccurring.

• Ensure required quality inspection and/or documentation is being

completed.

PSA GM Purchasing & Logistic Committee 15

 LAYERED PROCESS AUDIT
Development of high risk items for auditing (Continued)
In addition to the Workstation Specific and Quality Focused sections,
Managers/Directors/CEO also review an area/department using the Manufacturing
System Specific audit for things such as: (Note: Supervisor/Group Leader/Team Leader are not
required to complete this portion of the Layered Audit.)
• Completion of safety talks & tours
• Compliance to Process Control Plans
• Conformance to Workplace Organization standards
• Proper use of the Andon System
• Effective Problem solving & countermeasure implementation
• Effective use of Layered Process Audits process for control and follow up

Verification that special process audits are performed shall be included as applicable.
(e.g. CQI 9, 11, 12, Weld Audit, Chrome Audit, Paint Process Audit)

PSA GM Purchasing & Logistic Committee 16

 LAYERED PROCESS AUDIT
Auditor hints
- Verify if the LPA procedure define:
- Frequency
- who shall perform the LPA
- how to conduct the LPA (standard method)
- how to record and treat issues
Examples of fields in the LPA check sheet form:
Workstation
- PPE: the team member is using all the posted Personal Protective Equipment
- Work Instructions (for example: Standard Operation Sheet, Job Element Sheet).
- Proper tools, gages and materials available and used.

PSA GM Purchasing & Logistic Committee 17

 LAYERED PROCESS AUDIT
Auditor hints (Continued)
Quality Focused
- Specific Controls are in place in order to protect the customer and they are effective
- Ensure control of significant process elements which can impact areas such as
Customer Satisfaction, PPM, Warranty.
- Ensure control of high risk elements including: Operator/ Process Sensitive
Operations, Key Process Control Operations/Checks, Mandatory Assembly Sequence
Operations.
Manufacturing System
- Visual Management: conditions out of target were identified and there's an action
plan
- Errors Proofing Verification activity is being performed
- Flexibility Chart is up to date
- Verify that auditor understood the questions, LPA check list filled in properly: follow a
team/group leader in a LPA. Verify if they use the Standard Method.

PSA GM Purchasing & Logistic Committee 18

 LAYERED PROCESS AUDIT
Levels and schedule, what are we searching for?

Criteria of Requirement
1 – page 20-22
2 – page 20-21
3 – page 23
Auditor hints – page 24

Prev. Requirement Next Requirement

PSA GM Purchasing & Logistic Committee 19

 LAYERED PROCESS AUDIT
Scheduling and tracking
• Define the organization levels to perform audits.
• Define audits frequency for each level of the organization.

Layered Process Audits levels & frequency:

• Daily, the manufacturing supervisor or Team Leaders/team members shall
perform audits (in all shifts).

• Weekly, the manufacturing area manager or Management Support Staff (i.e.

Engineering, Maintenance, Quality) shall audit & verify that supervisor or Team
Leader verification is being completed.

• Monthly, the site leadership (Plant Manager) shall conduct Layered Process
Audits and review audit results and corrective actions.

• Quarterly, CEO shall audit and verify that previous levels LPA and process
specific audits have been performed.

PSA GM Purchasing & Logistic Committee 20

 LAYERED PROCESS AUDIT
Scheduling and tracking (continued)
Executive
CEO/Executive
Managers
Managers
(Example) / Directors
Directors
Quarterly
Quarterly/ /
minimum
minimum

Plant
PlantManager
Manager
11time
time/ month
/ month

Manager / Management
Manager / Engineerssupport staff
1 1time/week
time/week

Supervisor
Supervisor / Team
/ Team LeaderLeader
DailyDaily
/ Weekly

PSA GM Purchasing & Logistic Committee 21

 LAYERED PROCESS AUDIT
Scheduling and tracking (continued)
The example at the right is another way
to ensure each station within a work area
is evaluated at a minimum, on a monthly
basis (including containment activities,
rework areas and material handling). This
chart is used by all auditors to determine
which stations have not yet been audited
and requires the auditor to write down
their name, date, and shift for the
stations they chose for the audit.
The goal is to audit each work station
where a team member is present one
time each month.

(Example)

PSA GM Purchasing & Logistic Committee 22

 LAYERED PROCESS AUDIT
Scheduling and tracking (continued) (Example)
Identifying Audits to be
completed by the leadership
staff is essential to ensure Shaded in green
as Audit is
that all areas on the shop Completed
floor interact with the
management team. An
example schedule at the
right addresses both the
required frequency by
manager and the status of
this interaction.

Shaded in
Red if Not
Completed

PSA GM Purchasing & Logistic Committee 23

 LAYERED PROCESS AUDIT
Auditor hints
- In the shop floor, select a workstation and verify how the workstation is audited by
LPA:
- frequency is according to the plan,
- once a problem is identified, how the team member is informed,
- check if safety issues are detected by LPA,
- verify if "top level" is conducting the audit.
- Check back LPA records, verify that audits were really performed according to
schedule and all the operational activities were audited (not only manufacturing
operations, but material handling, storage, shipping etc.).
- Verify if containment/rework activities are included in the LPA Plan.

PSA GM Purchasing & Logistic Committee 24

 LAYERED PROCESS AUDIT
Records and countermeasure, what are we searching for?

Criteria of Requirement
1 – page 26
2 – page 26-27
3 – page 28-29
4 – page 30
Auditor hints – page 31

Prev. Requirement Next Requirement

PSA GM Purchasing & Logistic Committee 25

 LAYERED PROCESS AUDIT
LPA Check sheet Evaluation
• There are four results that can come out of each audit question:
• Y – No deviation found
• N – Deviation found / not corrected during audit
• NC – Deviation corrected during audit – drive this behavior
• N/A – Not applicable (established at Plant/Shift Leader level)
• All Deviations shall be recorded on the LPA Check sheet .
• Describe deviations in the detail section on the back of the LPA Check sheet
• Any Deviations that can be corrected immediately will have a letter ‘C’ next to
N.
• Any Deviations that cannot be immediately corrected should have additional
detail written and transferred to a Countermeasure Sheet.
• Reasons for non-compliance should be understood.

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 LAYERED PROCESS AUDIT
LPA Check sheet Evaluation
(Example)

NC N = Deviation Found
Y = Meets Standard
If the item is Corrected
Immediately

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 LAYERED PROCESS AUDIT
Countermeasure Sheet
All questions answered “N” on the LPA Checks sheet that cannot be resolved
immediately will be entered on the Countermeasure Sheet as an open item.

• The Countermeasure Sheet tracks the specific open issues on an

operation/workstation for each group.

• All questions answered “N” on the LPA Check Sheet that cannot be resolved
immediately will be entered on the Countermeasure Sheet as an open item.

• The Countermeasure Sheet will be updated and signed off as issues are
resolved.

PSA GM Purchasing & Logistic Committee 28

 LAYERED PROCESS AUDIT
Countermeasure Sheet (continued)

(Example)
Target Complete
Item # Date Location Problem Description Owner Countermeasure date Initials Date

New option Side marker lamp, parts don't Re-layout work station to include one
4 7/7/08 005R have a standard marked location. TL1 shift's requirement of lamps. 7/28/08 JC 7/26/08
tool for installing drainplugs is different
from standard, TM used replacement get standard tool from store, replace at
6 7/7/08 005R without informing TL TL1 workstation 8/3/08 RS

PSA GM Purchasing & Logistic Committee 29

 LAYERED PROCESS AUDIT
Management Review Requirements
• LPA Review Process
– Shift Leader is Process Owner
– Regularly schedule review meeting
– Review compliance & completion performance
– Elevate past due countermeasures to next level
– Review audit questions for Continuous Improvement (add, delete,
revise as needed)
• When appropriate, the Layered Process Audit nonconformance
shall be added to the Fast Response system and/or the C.A.R.E.
checklist.
• Layered Process Audit results shall be added to the Lessons
Learned database when appropriate.
• Audit results shall be summarized and reviewed by the
manufacturing site leadership.

PSA GM Purchasing & Logistic Committee 30

 LAYERED PROCESS AUDIT
Auditor hints
- How organization apply the problem solving methodology for issues detected during
the LPA and how the organization record the countermeasure (for example in the
countermeasure sheet) and how they do the follow up of actions
- actions defined against root cause (e.g.: not only re-training)
- due dates kept
- implemented actions were verified.
- Check the involvement of the management (knowledge of the result, of the on-going
action plan)
Continuous Improvement
- Flexibility Chart revised using the results of the LPA
- Problem Solving Methodology revised using the results of LPA
- Workstation Organization performed
- LPA used to capture a more efficient way to work and lead the standard work revision

PSA GM Purchasing & Logistic Committee 31

 LAYERED PROCESS AUDIT
LPA Effectiveness, what are we searching for?

Criteria of Requirement
1 – page 33
2 – page 34-35
Auditor hints – page 36

Prev. Requirement What goes wrong?

PSA GM Purchasing & Logistic Committee 32

 LAYERED PROCESS AUDIT
(Example)
DEPT._________________ LAYERED PROCESS AUDIT RESULTS

100% 47 50
90% 43 43 45
80% 40
70% 35
60% 27 30
24
50% 23 22 25
20 19
40% 20
16 16
14
30% 15
20% 10
10% 5
0% 0
JAN FEB MAR APR MAY JUNE JUL AUG SEP OCT NOV DEC

JAN FEB MAR APR MAY JUNE JUL AUG SEP OCT NOV DEC
% IN COMPLIANCE: 88% 68% 95% 96% 97% 84% 95% 95% 94% 95% 95% 89%
# OF ITEMS ON ASSESSMENT: 20 15 20 30 20 10 20 25 20 20 20 20
# OF ASSESSMENTS 20 9 28 15 20 10 20 20 20 20 20 20
TOTAL # OF ITEMS ASSESSED: 400 135 560 450 400 100 400 500 400 400 400 400
# OF ITEMS IN COMPLIANCE: 353 92 533 434 386 84 380 477 376 381 378 357
NON CONFORMANCES 47 43 27 16 14 16 20 23 24 19 22 43

NON CONFORMANCES NUMBER OF ITEMS NOT IN COMPLIANCE

Safety 10 8 5 2 1 1 1 1 1 1 1 1
Missed Audits 10 8 3 2 3 4 5 2 1 1 1 10
5S Related 2 7 7 3 2 2 2 2 2 2 3 2
Product 10 4 3 2 1 1 1 1 1 1 1 10
Voice of Customer 6 4 2 2 3 4 4 4 3 2 2 10
Systemic 9 7 1 2 2 2 2 2 2 2 2 2
Gage Calibration 5 6 3 2 2 5 6 7 2 2 2
Poke Yoke 5 7 8 10 6

PSA GM Purchasing & Logistic Committee 33

 LAYERED PROCESS AUDIT
Audit Schedule & Tracking (Example)

Leadership Staff Layered Audit Schedule and Status

August September October

Name:

1st Week 2nd Week 3rd Week 4th Week 1st Week 2nd Week 3rd Week 4th Week 1st Week 2nd Week 3rd Week 4th Week

I/P 1st Shift Doors 2nd Over Heads 2nd

Doors 1st Doors 2nd

I/P 1st Shift I/P 1st Shift I/P 2nd Shift I/P 1st Shift
Shift Shift
Doors 2nd Dooors 1st
I/P 2nd Shift I/P 2nd Shift I/P 1st Shift I/P 2nd Shift
Shift Shift
Doors 1st Doors 2nd
I/P 1st Shift I/P 1st Shift I/P 2nd Shift I/P 1st Shift
Shift Shift
Doors 2nd Doors 1st
I/P 1st Shift I/P 1st Shift I/P 1st Shift I/P 1st Shift
Shift Shift
Doors 1st Doors 2nd
I/P 1st Shift I/P 2nd Shift I/P 1st Shift I/P 2nd Shift
Shift Shift
Doors 2nd Doors 1st
I/P 1st Shift I/P 1st Shift I/P 1st Shift I/P 1st Shift
Shift Shift

STARTED ON THE
INSTRUMENT PANEL LINE

AUDIT AUDIT
CONDUCTED BY: FREQUENCY:

'- NOT STARTED Executives Quarterly

Plant Manager Monthly

LEGEND: - AUDIT COMPLETED

Manager Weekly

Supervisors Daily
- AUDIT NOT COMPLETED
Team Leaders Daily

PSA GM Purchasing & Logistic Committee 34

 LAYERED PROCESS AUDIT
DEPT._________________ LAYERED PROCESS AUDIT RESULTS

100% 30
27
90%
25
80%

70%
20
60%

50% 14 14 15
40%
8 8 10
30% 7
20% 4
3 5
10% 2 2
1
0
0% 0
JAN FEB MAR APR MAY JUNE JUL AUG SEP OCT NOV DEC

JAN FEB MAR APR MAY JUNE JUL AUG SEP OCT NOV DEC
% ISSUES CLOSED: 85% 67% 89% 100% 86% 75% 60% 65% 92% 95% 36% 37%
TOTAL # OF NON CONFORMANCES: 47 43 27 16 14 16 20 23 24 19 22 43
TOTAL # OF CLOSE ISSUES: 40 29 24 16 12 12 12 15 22 18 8 16
TOTAL # OF OPEN ISSUES 7 14 3 0 2 4 8 8 2 1 14 27

NON CONFORMANCES NUMBER OF ITEMS NOT IN COMPLIANCE

Safety 10 8 5 2 1 1 1 1 1 1 1 1
Missed Audits 10 8 3 2 3 4 5 2 1 1 1 10
5S Related 2 7 7 3 2 2 2 2 2 2 3 2
Product 10 4 3 2 1 1 1 1 1 1 1 10
Voice of Customer 6 4 2 2 3 4 4 4 3 2 2 10
Systemic 9 7 1 2 2 2 2 2 2 2 2 2
Gage Calibration 5 6 3 2 2 5 6 7 2 2 2
Poke Yoke 5 7 8 10 6

PSA GM Purchasing & Logistic Committee 35

 LAYERED PROCESS AUDIT
Auditor hints
- Perform a Layered Audit together with team leader. Compare your results with team
leader. In case of gap, identify reasons of different evaluation.
- At shop floor, verify in the visual management board (area or plant):
- LPA Plan
- LPA Tracking
- LPA Results
- LPA Action Plan/Effectiveness

PSA GM Purchasing & Logistic Committee 36

 LAYERED PROCESS AUDIT
What goes wrong ?
• Check sheet with no proper items to be checked

• Escalation (all levels) not in place

• Results of audit not recorded in a proper way

• Frequency of checking not respected

• Reaction plan is not defined / followed in case of verification failure

• Results Meeting Review not in place

• Workstation not being checked in different shifts

Global Purchasing and Supply Chain

PSA GM Purchasing & Logistic Committee 37