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Self-evaluating Performance: Why do we audit?
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Self-evaluating performance: Why do we audit?
 
 
By: M. Dreikorn
 
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October 2008
 
AS&D Quality, Safety and Regulatory
 Newsletter
 
Your source for professional connection
 
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The objective of this newsletter is to provide perspective to the Aviation, Space, and Defense (AS&D) industry on current and relevant quality, safety, and regulatory matters in our industry.

Self-evaluating performance: Why do we audit?

From time-to-time we all go see a doctor for a check up.  Sometimes the visit is purely preventative, and sometimes it's in response to signals our body is sending us.  Organizational systems are pretty much the same way.  If we monitor our organization to ensure it's performing the way it ought to be, then we should not have any grand surprises.  However, if the organization's performance is not monitored, we are then working off of assumptions and are then prime for the big surprises.
 
In social systems such as organizations, the methodology that is frequently applied to measuring performance is referred to as auditing.  Auditing is simply a measurement of variance from a norm.  The greater the degree of variance, the greater the potential for significant problems.  Depending on what is being audited, organizations will traditionally place varying degrees of value to the audit process.
 
For example, when it comes time for an inventory audit, organizations will frequently shut down operations for periods of time to count inventory.  They may also recruit every available employee to participate in the process.  In a similar accord, financial audits by the comptroller will also garnish a high degree of organizational engagement.  However, when it comes time to perform an audit of the organization's quality system, it's frequently like pulling teeth to gain any support.  Why might that be?
 
It just might be that the perception of value is not always understood.  For inventory and financial audits the perceived value is immediate and tangible.  The consequences associated with audit findings can also be severe and quick.  On the other hand, when something is discovered in a quality management system audit there is frequently a negotiation and the corrective action is worked by an isolated few.  The tangible consequences, such as repair and warranty expenses, are also very easy to hide by associating them to other causes. 
 
The reality is that until organizations recognize the value of robust quality management system audits, the process will not be executed in a value-adding fashion.  So, for those who are charged with the responsibility for auditing the areas of quality and safety, the biggest challenge is to ensure that organizational leaders understand why these audits are occurring and how they can contribute to the success of the organization.  To accomplish this, we must speak in terms that organizational leaders will understand - which equals something tangible and easy to grasp. 
 
Here are a few ideas on how to facilitate understanding of audit value:
 
  • Relate how noncompliant processes impact turn-times
  • Relate in-line discrepancies to impact on takt-times
  • Relate rework and repair to standard-cost-per-hour
  • Relate remedial training to productivity standards
  • Relate poor customer satisfaction to loss of market share
  • Relate remedial field actions to impact on profitability
 
Whatever terms the organization applies to measure performance at the top of the organizational ladder, are the terms we must communicate in to ensure understanding.  Without understanding there can certainly not be any buy-in, let alone commitment. And remember, the measurements are a two sided sword.  You must also speak to the positive.  If the organization engages proactive measures to increase its capabilities, the measurements will also improve.
 
For more discussion on effectively communicating performance measurements read The Synergy of One.
  
Written by: Michael Dreikorn

The IPL Group, LLC
Send questions and/or comments to: Dreikorn@TheIPLGroup.com
 
(The IPL Group helps organizations deploy sustainable performance improvement.)
AS&D News
Gyrocam RG33The following are news links relevant to quality, safety, and regulatory matters in the Aviation, Space, Defense and Maritime industries.  These are events which have been reported in the month of September 2008.  As a professional, it's your responsibility to remain relevant. 
 
 
Workforce
 
 
For Boeing, the strike is about cost, control and reputation. The aerospace giant could be losing as much as $100 million daily in deferred profits.
 
 
The financial crisis could yield a bumper crop of U.S. military recruits if the recent plunge in stocks translates into job losses and an even weaker economy.
 
 
Prime Minister Stephen Harper reiterated his promise that a re-elected Conservative Government will invest in scientific research and development to help create jobs and to help Canada reach its potential to be a world leader in science and technology.
 
 
In contributing $3 billion in 2007 to the state's economy, private technology companies represent only a small percentage of overall earnings in Hawaii's business sector. But a new analysis of Hawaii's position in technology industries released last week said employment in the sector should continue to grow at 2.1 percent annually, and will require 1,650 trained workers statewide every year.
 
 
Aer Lingus, the lossmaking Irish airline, has set itself on a collision course with its ground services staff and cabin crew over a radical restructuring plan aimed at reducing its workforce by more than a third through outsourcing and job cuts.

Regulatory & Safety 
 
The Air Navigation (Environmental Standards For Non-EASA Aircraft) Order 2008 (EU)
 
 The Order sets out the noise and emissions standards with which specified categories of aircraft that are not subject to Regulation (EC) No. 216/2008 of the European Parliament and of the Council of 20th February 2008 on common rules in the field of civil aviation and establishing a European Aviation Safety Agency, and repealing Council Directive 91/670/EEC, Regulation (EC) No 1592/2002 and Directive 2004/36/EC must comply. 
 
GPS for jets fails to obtain clearance (USA)
 
Funding delays and the complexities of the switchover have kept the project grounded. The government does not expect to have it up and running until the early 2020s, and without a major commitment, supporters warn that even that goal might be not be attainable.
 
RP to build aviation library for compliance (Phil)
 
The Philippines will build a library for the airline industry as part of efforts being made to convince the US Federal Aviation Authority (FAA) that the country deserves Category 1 status.  
 
 
An Auburn company that did repair work for Alaska Airlines has agreed to pay nearly $30,000 to a former employee who was laid off after she accused the company of ignoring federal air-safety standards.
 
 
Horizon AirTaken from the cockpits of Horizon Air airliners, the videos are a violation of regulations prohibiting distractions in a supposed sterile cockpit environment and the use of electronic devices onboard such aircraft.
 
 
IMP StrikeAbout 150 workers at IMP Aerospace in Halifax refused to go to work Thursday, claiming their long list of health and safety concerns has fallen on deaf ears.
 

 
NTSB LogoCiting numerous instances over the past several years in which engine fan cowls have taken flight of their own accord -- and right off a number of Airbus A320-Family aircraft, and Bombardier CRJ models.
 
 
FAA Logo 2American law firms, Nolan Law Group and Ribbeck Law Chartered, filed a Petition for Discovery in the state court in Chicago arising from the Boeing 737 crash of Aeroflot-Nord Airlines in Perm, Russia on September 14, 2008. 
 
 
A proposal to allow military fighter aircraft (F-16s) to fly training missions as low as 500 feet above ground at speeds up to 650 mph is being considered by the Federal Aviation Administration.
 
 
Two London airports have won permission for large increases in the number of flights and passengers they handle. 


Civil Aviation
 
Mobiles, laptops a risk to air safety - expert (AUS)
 
Airplane CellCould a laptop computer or mobile phone have caused Qantas QF72 to plunge near Exmouth in Western Australia this week? The answer is yes.  
 
 
Spring Singapore and the Association of Aerospace Industries Singapore (AAIS) signed a memorandum of understanding (MOU) with US non-profit organisation Performance Review Institute (PRI), which administers the accreditation.
 
 
Business aircraft manufacturers are scouring their order backlogs for signs of weakness as the global economic turmoil makes it harder for customers to buy new aircraft and finance those already on order.
 
 
The Spanair SA plane that crashed in Madrid in August, killing 154 people, took off without activating the wing flaps to increase lift, investigators said in a preliminary report. 

 
Maritime 
  
 
By establishing a national network of marine highways, the plan calls for offering incentives and government assistance to shippers and other companies to begin shifting cargo from roadways and onto waterways, relieving traffic congestion, reducing emissions and expanding the nation's capacity to move goods as international trade grows.
 
 
RAS Laffan Industrial City (RLC) grabbed the limelight at the Seatrade Middle East and Indian Subcontinent Awards ceremony in Dubai by winning the 'Energy: Oil & Gas Award'.
 
 
The authority's "Pledge For Growth" project directs specific efforts to the ports' impacts on air quality, land uses, water quality and general impacts on quality of life values.


Defense 
  
 
Navy LabThe Naval Surface Warfare Center Dahlgren Division is getting another key Navy research and development lab. Construction began on a $25 million building to house the Dahlgren Research Development and Acquisition and Test and Evaluation Consolidation Facility.
 
 
Richard B. Kendall, a lawyer for the Natural Resources Defense Council, which had sued the Navy over the exercises, insisted that courts have an important role to play in protecting whales and dolphins even when the executive branch asserts a national security interest.
 
Army exercises spark environmental fears (AUS)
 
The Shoalwater Bay Protection Society is hoping the Australian Defence Force (ADF) will tell it more about next year's joint military exercises with the United States.
 
 
Former METS employees question the work they did on Fort Drum. They were hired by METS to up-armor vehicles for the 3rd Brigade's deployment. The workers were laid off after about a week and they say the humvees may not be safe for combat.
 
 
The U.S. Navy's shipbuilding program faces "huge" continuing challenges from cost growth and other issues, Adm. Michael Mullen, the chairman of the Joint Chiefs of Staff.
 
 
The Defense Security Cooperation Agency notified Congress of a possible Foreign Military Sale to Taiwan of 182 JAVELIN guided missile rounds and 20 JAVELIN command launch units, as well as associated equipment and services. The total value, if all options are exercised, could be as high as $47 million.
 
 
The Indian Air Force (IAF) is in the midst of a transformation and is taking some 'confident steps forward' in becoming an aerospace power 10 years from now.
 
 
This system, which can be considered the world's most advanced and technically capable rescue system, replaces the DSRV submarine rescue vehicles MYSTIC and AVALON that have been the world bench mark for submarine rescue systems for nearly 40 years. 
 
 
After nearly a decade of political bickering in both Taiwan and the United States, the Taiwanese government has officially asked for a $6.5 billion dollars in weapons, and the U.S. has agreed to deliver. 



A Russian Soyuz spacecraft was hauled to the launch pad at the Baikonur Cosmodrome in Kazakhstan, setting the stage for blastoff on a critical flight to the international space station. 
 
 
A survey found 65 cases of cancer among 301 people who had worked since 1985 at two office buildings on Glenn's north campus. State and federal investigators called the rates typical of cancer, which strikes about half of U.S. males and a third of U.S. females.
 
 
Materials
 
Composites on the wing (USA)
 
The aerospace industry is embracing composites in a big way. Lou Reade reports on some of the latest innovations.
Synergy of One: Creating High-Performing Sustainable Organizations through Integrated Performance Leadership
Synergy of One Book
 
In The Synergy of One, Michael Dreikorn argues that the vast majority of errors and system failures are the result of ineffective leadership. And most of the shortcomings of leadership stem from the lack of a unified and structured system throughout their organization. The Synergy of One explains how to create an integrated system that incorporates resources, accountability, culture, understanding, and leadership into one synergistic formula that will help drive consistent success. This synergistic system will help lead to consistency throughout the organization - leader to leader and department to department - which will lead to better communication, more consistency, and ultimately more success. Dreikorn cites examples from other successful organizations, and provides numerous charts and graphs to help emphasize the points being made.
 
Buy Now for $45-USD.
 
This newsletter is brought to you by The IPL Group, LLC.  We hope you find the content informative and useful.  If there are other features of this newsletter that you would like to see, let us know.  The power of our industry is not solely driven by mechanical means, it is our intellectual base which brings innovation and strength.
 
 
Sincerely,
 
Dreikorn
 

Michael Dreikorn
President
The IPL Group, LLC