Second Part Audits
What is 2nd party audit?
The 2nd party audit is client entrusts certification body (TÜV Rheinland) to make assessment of management system implementation to client itself or supply chain, more likely is treated as management tool to improve supply chain holistic management level. Different from 1st party audit ( self-audit ) and system certification (3rd party audit), 2nd party audit is non-certificate audit but put in client audit report. On the basis of fully understanding customer product technics and management requirements as well as various of management systems and customer specific requirements, TÜV Rheinland assigns skilled auditors to evaluate supplier performance, e.g. stable and effective management system, capability of provision of quality product, service and sustainability. Presently, frequently used international systems for 2nd party audit includes ISO9000, ISO14001, TS16949, VDA6.3, OHSAS and SA8000 (BSCI) etc, as well as TÜV Rheinland STAR the unique product developed by TÜV Rheinland for the evaluation of company sustainability.
The 2nd party audit report is one of significant evidences for supplier filter as well as important approach to help client understand and control supply risk. With 2nd party audit, it may effectively assist customer to find out systemic issues, process weakness and quality risk as well as maximum reduction of negative impact, to furthest protect client social image and care the care of supply chain management.
2nd party audit contents
According to customer specific requirements and different systems, the contents of 2nd party audit shall be different. Generally, 2nd party audit shall contain:
- Plan and implementation extent of supplier management system, e.g. quality, environment, health and safety, comprehensive management etc.
- Supplier capability of production line working procedure, e.g. requirements of process parameter, equipment and frocks.
- Whole process or partial process audit from purchasing, logistics, production plan, product realization, inspection, packaging up to delivery.
- Supplier capability of implementation of customer tech and management requirement as well as conformance degree
- Conformance to rules and regulations
2nd party audit procedure
Besides audit criteria development in term of customer specific requirements and product characteristic, it must deploy supplier 2nd party audit according to a set of tangible evaluation process, approach and report. Accordingly document preparation, personnel arrangement, audit scheme and audit time are all necessary assignment at stage of audit preparation.
Audit team deploys on site audit according to specified audit scheme, auditors (or with customer technicians) conclude audit report in term of standard and customer specific requirements.
Summary and Improvement:
After on site audit completion, TÜV Rheinland provide client the final summary report, client may require supplier submit action plan and time schedule according to audit report and company development strategy. Supplier must constitute improvement scheme and complete upon schedule, customer monitors improvement progress on schedule.
According to supplier actual improvement plan, customer may make decisions of plan fine-tune and supplier filter, TÜV Rheinland will give counsel by assisting closely with client and supplier together.
Auto Dealer Audits
One of the most important challenges facing auto manufacturers is finding a way to expand their marketing efforts and improve their brand awareness to help their dealers to dominate the market more effectively. As a renowned Certification Body in the automotive industry, the TÜV Rheinland Group has put significant work and research into helping manufacturers to achieve success in this regard.
Since the beginning of this century, TÜV Rheinland (Shanghai) Co., Ltd. has helped a China’s internationally known automotive brand joint venture (JV), to effectively adopt and apply the “Franchiser Operation Management Handbook” and to develop and establish an operable checklist according to the requirements of the guidelines therein and customers’ actual needs. This checklist has since been adopted by its dealerships nationwide. To identify common management problems, TÜV Rheinland Shanghai carried out a significant amount of research, and then issued JV with a unified national analytical report that incorporated a number of rectifications and revisions that needed to be made for the checklist to be popularised across the country. From 2008 to 2009, TÜV Rheinland Shanghai carried out second-party audits for more than 500 dealers across China.
In April 2005, another well-known automobile brand with a 100-year history established operations in Shanghai. TÜV Rheinland Shanghai was engaged to help the company to identify the weak links in its management by assessing sales and after-sales operations in the form of second-party audits. Subsequently, it provided the company with effective solutions that helped it to reduce risks and achieve sustainable development.
Over the past 10 years, TÜV Rheinland Shanghai has performed thousands of dealer audits. In addition to audit, the company is also capable of providing technical support to domestic dealers to help them to establish effective networks and management systems or to improve upon those already in place.