The Ultimate Guide

to Layered Process
Audits
What you will learn in this eBook:
What makes layered process audits unique  How to get more from layered process
How to implement layered process audits audits and overcome common challenges

Best practices for writing audit questions The role of digital transformation

A valuable resource for companies seeking to get the

most out of their layered process audits”
–Daniel Perez-Castilla, Global Quality
Systems Manager, Tenneco Powertrain
 CHAPTER #: Chapter Title

Executive Summary
It’s another Tuesday, and Joe is at his station processing parts.
He notices a small tab sticking out that doesn’t belong there.
Joe doesn’t notify his supervisor of the problem, realizing that he

Acknowledgments
can just make the part fit better by bending the tab back in place
with his thumb.
Months later, he’s still taking this extra step, and has become
Ease would like to thank Murray Sittsamer and Richard Nave accustomed to it as part of his routine.
of The Luminous Group for generously sharing their expertise But then Joe gets sick. He’s out of work for two weeks. A new
throughout the creation of this guide. You can find out more about operator named Steve takes over his position. That small step Joe
The Luminous Group and their services to help drive process had been taking isn’t part of any job instruction or standard, and
improvement on their website. since that step had helped avoid major problems, nobody has a
Many thanks also to Daniel Perez Castilla of Tenneco Inc. for his clue that it’s preventing problems down the line.
valuable input on layered process audits and plant maturity, and to
John Rose of Jacobs Vehicle Systems for his thoughtful feedback.
Finally, we’d like to thank the many other customers whose helpful
contributions went into to the development and review of this
industry guide.

2 ease.io
The result upon Joe’s absence is a weeks-long stream of thousands In this guide, we explore:
of defective parts shipped from the plant to the company’s most
• What makes these audits different and why companies conduct them
important customers. Only once the complaints start rolling in does
anyone realize the extent of the problem, costing the company millions • How to implement a successful LPA program, including the pivotal
in terms of scrap, rework, warranty costs and future business. role of management

In this scenario, at first look it appears Joe is doing a great service • How to write LPA questions that work—a critical challenge for most
to the company in resolving this issue. However, by adding an extra manufacturers
step without documentation—a prime example of what’s called the • Best practices for conducting audits and creating reaction plans
hidden factory—he’s simply temporarily avoiding a quality issue that
• The role of digital transformation in addressing the traditional barriers
will happen whenever Joe isn’t present. A product inspection alone
to LPA success
isn’t likely to find this type of problem, highlighting the need for
ongoing process verification.
In another example, twice weekly maintenance is not being carried out
on a new multi-million-dollar robotic laser welding machine. Within a few
weeks, parts are being produced with microscopic cracks, leading to
huge downstream quality issues and costs. The machine itself has also
been damaged as a result of the lack of maintenance. Again, a product
inspection may not catch the issue until it’s too late.
The result is millions of dollars in additional costs from scrap, rework
and returns, not to mention the cost of repairing the welding machine
itself.
Without essential process checks, manufacturers leave themselves
open to a wide range of quality problems and costs—including the loss
of key business contracts, declining brand value and legal liabilities.
The solution, for many manufacturers, is to implement layered process
audits (LPAs). Using high-frequency plant floor checks, LPAs reduce
process variation, resulting in fewer production defects and costs while
creating daily habits that build a culture of quality.

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 Chapters
Acknowledgments......................................................................................................... 2 Chapter 12: Updating Your Question Library............................................... 55
Executive Summary..................................................................................................... 2 Chapter 13: Strategies for Improving LPA Results................................... 59
Chapter 1: What Are Layered Process Audits?.............................................8 Chapter 14: Digital LPAs: How to Eliminate Paperwork and
Prevent Quality Issues with LPA Software................................................. 63
Chapter 2: Why Should Manufacturers Conduct LPAs?....................... 12
Chapter 15: How to Improve LPA Checklists with LPA Software.... 73
Chapter 3: LPA Implementation Process Overview.................................. 16
Chapter 16: LPA Dashboards for Management:
Chapter 4: Management’s Role in LPAs........................................................... 21
Getting a Return on Your Effort...........................................................................77
Chapter 5: Top LPA Challenges........................................................................... 25
Chapter 17: The Role of LPAs in Achieving Higher Levels of
Chapter 6: How to Write LPA Questions: The Basics............................. 29 Quality Maturity........................................................................................................... 84
Chapter 7: Types of Questions to Include..................................................... 35 Closing Thoughts........................................................................................................ 89
Chapter 8: Before-and-After Examples of LPA Questions................... 39 About EASE....................................................................................................................90
Chapter 9: Rolling Out LPAs to Your Plant.................................................... 43 References..................................................................................................................... 92
Chapter 10: Audit Best Practices....................................................................... 46
Chapter 11: Creating the Reaction Plan........................................................... 51

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Table of Contents
Acknowledgments................................................. 2 CHAPTER 3: LPA Implementation
Process Overview................................................ 16
Executive Summary............................................... 2
CHAPTER 4: Management’s
Chapter 1: What Are Layered Role in LPAs.......................................................... 21
Process Audits?.................................................... 8 Communicating with the Team........................................................................... 22
Who Uses LPAs?............................................................................................................ 9 Performing Audits....................................................................................................... 22
What LPAs Are Not..................................................................................................... 10 Holding the Team Accountable............................................................................ 24
Conducting Management Reviews.................................................................... 24
CHAPTER 2: Why Should Manufacturers
Conduct LPAs?.................................................... 12 CHAPTER 5: Top LPA Challenges......................25
Real Life: Using LPAs to Drive a Quality Turnaround............................... 13
Variation: It’s Only Natural...................................................................................... 13 CHAPTER 6: How to Write LPA Questions:
Reducing Production Defects, Complaints and Costs .......................... 14 The Basics............................................................29
Improving Productivity.............................................................................................. 14 What Makes an Effective LPA Question?...................................................... 30

Enhancing Communication and Quality Culture......................................... 14 Who Should Write LPA Questions?.................................................................... 31

Helping Suppliers Stand Out with Customers............................................ 15 Where to Find LPA Questions .............................................................................. 31
Checklist Best Practices......................................................................................... 31
Expert Take..................................................................................................................... 31

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 CHAPTER 7: Types of Questions CHAPTER 11: Creating the
to Include..............................................................35 Reaction Plan....................................................... 51
Focus on High-Value Operations ....................................................................... 37 Containment.................................................................................................................. 52
Encouraging Interaction ......................................................................................... 37 Mitigation......................................................................................................................... 52
Corrective Action........................................................................................................ 52
CHAPTER 8: Before-and-After Examples of Human Error: What’s the Real Root Cause? .............................................. 53
LPA Questions......................................................39
CHAPTER 12: Updating Your
CHAPTER 9: Rolling Out LPAs to Your Plant....43 Question Library..................................................55
Training Auditors......................................................................................................... 44
When to Update Questions................................................................................... 56
Getting Employees on Board................................................................................ 44
Management Reviews.............................................................................................. 56
Real Life: Engaging Quality Leaders................................................................. 56
CHAPTER 10: Audit Best Practices...................46
How to Indicate Conformance or Non-Conformance on the
CHAPTER 13: Strategies for
Plant Floor........................................................................................................................47
Improving LPA Results........................................59
How to Record Mitigations.....................................................................................47
Monitoring LPA Effectiveness.............................................................................. 60
Asking Questions on the Plant Floor ...............................................................47
Overcoming Resistance.......................................................................................... 60
Explain the Why........................................................................................................... 48
Soft Audit Skills: The Human Element............................................................ 48
Management’s Role in Conducting Audits.................................................... 50

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CHAPTER 14: Digital LPAs: How to Eliminate CHAPTER 16: LPA Dashboards for Management:
Paperwork and Prevent Quality Issues with Getting a Return on Your Effort........................ 77
LPA Software.......................................................63 Quality Metrics to Review...................................................................................... 78
Solving Top LPA Challenges.................................................................................. 64 LPA System Metrics..................................................................................................80
Real Life: How One Global Manufacturer Uses LPA Software Reviewing Dashboard Data...................................................................................80
to Solve Systemic Issues....................................................................................... 65
Enterprise-Level LPA Metrics to Track............................................................80
What’s the ROI of LPA Software?..................................................................... 66
Real Life: What Are Realistic Audit Completion Rates?........................80
Legacy Audit Processes Block Improvement.............................................. 68
Customizing Dashboards for Users.................................................................. 82
Finding Flexible, User-Friendly Audit Software........................................... 68
Avoiding Quality Escapes and Reducing Complaints ............................ 69 CHAPTER 17: The Role of LPAs in Achieving
Moving Forward with a Global Rollout............................................................. 69 Higher Levels of Quality Maturity.....................84
Level 0: Operator-Driven......................................................................................... 85
CHAPTER 15: How to Improve LPA Checklists Level 1: Containment................................................................................................. 86
with LPA Software..............................................73 Level 2: Corrections.................................................................................................. 86
Customizing Question Scope................................................................................74
Level 3: Prevention.................................................................................................... 87
Uploading Photos.........................................................................................................74
Level 4: Improvement................................................................................................ 87
Randomizing Questions............................................................................................74
Level 5: Culture of Zero Defects........................................................................88
Centralizing Audits..................................................................................................... 75
Custom Question Tags ........................................................................................... 75 Closing Thoughts.................................................89

About EASE..........................................................90

References...........................................................92

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 CHAPTER 1

What Are Layered

Process Audits?
 CHAPTER 1: What Are Layered Process Audits?

The audits are meant to be completed in under 15 minutes, Who Uses LPAs?
using up to 10 yes or no questions specific to the process The automotive industry has long used LPAs, which are a requirement
area. Similar to a pre-flight checklist, LPAs look at high-risk for suppliers to many original equipment manufacturers (OEMs) that
include General Motors (GM) and Fiat Chrysler.
inputs at the start of each shift to verify the process is
working as intended and ensure first time correct quality. Because of their ability to root out hidden sources of variation,
LPAs have also been adopted in a growing number of manufacturing
The “layers” refer to the different levels of the organization who industries such as aerospace, medical devices, chemicals, consumer
conduct the audits, with team leaders performing audits more packaged goods and others.
frequently than plant managers. Regional and business unit managers Companies that use Lean, Six Sigma and other process excellence
and even CEOs should also participate when visiting plants. strategies are positioned well to adopt LPAs, which provide a risk-
based strategy for continuous improvement that aligns with the
Plan-Do-Check-Act approach. Companies have spent time and money
to optimize these programs, and LPAs help ensure they are followed
every day.

LPAs provide a risk-based strategy that aligns with the Plan-Do-Check-Act approach

• Create team • Conduct audits

• Write questions • Enter findings

• Correct problems • Report on findings

• Add questions to sustain • Identify risks

9
 CHAPTER 1: What Are Layered Process Audits?

What LPAs Are Not LPAs focus on parameters, settings or behaviors where a non-
conformance could result in a severe or costly outcome. In other
It’s important to note that LPAs do not inspect finished products.
words, LPAs address high-risk items, rather than paperwork or minor
Inspections of finished products are inherently rear-facing, and can
compliance check points.
only find defects that already exist. LPAs, on the other hand, are used
to prevent defects before products are manufactured by verifying LPAs are not about trying to catch people making mistakes—they’re
critical inputs of high-risk processes. about collaborating on meaningful improvements. In addition to helping
prevent production defects, LPAs are a way to provide essential
feedback to operators and front-line supervisors on what is going right.
LPAs are not done only by the quality department. They should be
Expert Take owned primarily by operations, but every department should be
“LPAs should catch someone doing involved.
something right.” –Murray Sittsamer Finally, LPAs are not meant to be comprehensive. By definition, they
can only capture a few items. Keeping them short and quick and
rotating questions in and out is what allows you to complete a large
number of audits for better visibility into your processes.

Learn More
Download the Automotive Industry Action Group (AIAG)
CQI-8 Layered Process Audit Guideline to learn more about
LPA best practices

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 CHAPTER #: Chapter Title

Key Takeaways:
1. LPAs are short, frequent audits to verify that the process adheres to
the standard

2. LPAs look at process inputs, not finished products

3. Everyone in the organization should participate, from team leads to

plant managers on up to the CEO—not just the quality department

4. Auditors conduct checks at a frequency corresponding with their level

in the organization

5. LPAs are used in automotive, aerospace, medical devices, chemicals,

consumer packaged goods and many other manufacturing industries

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 CHAPTER 2

Why Should Manufacturers

Conduct LPAs?
 CHAPTER 2: Why Should Manufacturers Conduct LPAs?

A robust LPA program can transform quality, driving

improvements such as:
Real Life LPA Results

53%
• Fewer production defects and complaints
• Lower scrap rates and quality costs reduction in
• Higher productivity customer defects
• Improved culture of quality and communication

74% reduction in
• Increased customer satisfaction
• Fewer findings on key certification audits
internal PPM
Companies that execute LPAs correctly can achieve significant

94%
improvements in quality, safety and costs in as little as a few
months’ time.1 reduction in overdue
corrective actions
Real Life: Using LPAs to Drive a Quality Turnaround
A Fortune 500 aerospace supplier adopted LPAs to address pervasive
quality issues impacting one of its plants. The problem was that,
while LPAs had the potential to deliver huge value to the organization,
it was impossible to complete a large volume of audits without
overwhelming the quality team. “In two plants now, we’ve been able to step in when leading indicators
The plant implemented EASE to automate LPA scheduling, follow-up went down, before there was any change to lagging metrics like
and reporting, allowing them to achieve results such as: defects or complaints.” –Director of Quality

• 53% reduction in customer defects

Variation: It’s Only Natural
• 74% reduction in internal PPM
Over time, all systems tend toward disorder, also known as entropy.
• 94% reduction in overdue corrective actions Machines break down. Humans take shortcuts or forget what they
Even with a small team, the plant is now able to complete over 100 learned. People forget about holding corrective actions in place.
audits a month, enabling proactive identification of process errors Variation is inevitable, making ongoing verification of critical-to-quality
and risks. elements necessary.

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 CHAPTER 2: Why Should Manufacturers Conduct LPAs?

It’s only natural for people to inevitably make mistakes or create Improving Productivity
workarounds when performing the same tasks over a long period.
Reacting to problems diverts critical resources from productive
LPAs help proactively identify when this occurs and needs to be fixed,
workflow, affecting metrics like throughput and overall equipment
before it affects quality and productivity. In certain situations, they
effectiveness (OEE).
can also help identify when these shortcuts should be incorporated
into the process. It’s also less expensive, more efficient and more productive to
manufacture products right the first time. Compare this with having
When you conduct regular checks, people have more respect for what
to spend extra time meeting with customers, paying for sorting,
you’re asking them to do. LPAs also show respect to operators and
line stoppage fees and other costs, and it’s clear that process
provide critical recognition of their efforts.
standardization more than pays for itself.

Reducing Production Defects, Complaints and Costs

Enhancing Communication and Quality Culture
There’s no question that it costs less to manufacture products right
One big benefit of LPAs is that they provide a framework for creating
the first time. By verifying process inputs, LPAs help ensure first-time
a culture of quality. This process works in several ways:
correct quality. Checking process adherence close to the point of
manufacture is what enables teams to find and fix problems days or • Verifying process adherence: LPAs determine whether operators
weeks before they impact customers. are following standard work instructions, also checking that controls
and corrective actions are in place.
For example, if a temperature setting on an injection molding process
is too low, catching it early is a much smaller problem when discovered • Promoting communication and engagement: LPAs provide regular
internally. If the problem reaches the customer, it could mean tens of opportunities for management and operators to interact face-to-
thousands of dollars (or more) in containment and correction costs. face. This helps familiarize leadership with plant floor processes,
build trust with employees and spark conversations about quality.
Product development involves large amounts of time, energy and
money spent to develop the optimum process. LPAs help ensure • Getting more eyes on the process: LPAs ensure many people are
companies adhere to that process, delivering more value for seeing processes up close, making it easier to uncover problems
investment in advanced product quality planning (APQP). while bringing fresh perspectives to solving them. This brings the
concept of cross-functional teams to life.
Expert Take • Closing the loop on problems: LPAs help monitor previous issues
“People don’t do what you expect but and corrective actions to ensure you’re holding gains and minimize
what you inspect.” – Louis V. Gerstner Jr., the chance of recurrence.
Former chairman of IBM

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 CHAPTER #: Chapter Title

• Making quality an organization-wide goal: LPAs make quality part

of everyone’s job description—an essential pillar of building a culture Key Takeaways:
of quality.
• Recognizing quality: LPAs show respect and provide recognition 1. LPAs reduce defects, complaints
for front-line operators, promoting personal ownership of quality.
and costs
• Raising the profile of quality: LPAs make management a visible
presence on the plant floor, fostering conversations about quality
2. LPAs minimize quality risk
that contribute to a culture of excellence.
More than any “Quality First” slogan, LPAs shift a company to a
3. LPAs lead to higher productivity
proactive stance on quality and away from simply firefighting or
reacting to problems. and improved quality culture

Helping Suppliers Stand Out with Customers 4. LPAs make quality part of
OEMs across all industries expect zero defects and 100% on-time everyone’s job description
delivery, with stiff consequences for suppliers who fail to achieve this
standard.
LPAs make good suppliers better, and can help a great supplier prevent
metrics from slipping. Done correctly, LPAs can help manufacturers
differentiate themselves in a crowded landscape of suppliers.
Demonstrating a well-run LPA program to customers—during a
supplier audit, for example—can pay dividends in terms of boosting
customer satisfaction, increasing confidence and showing a true
commitment to quality.

Learn More
Read what Richard Nave of The Luminous Group has to say
about Why Plant Managers Should Care About LPAs ease.io 15
 CHAPTER 3

LPA Implementation
Process Overview
 CHAPTER 3: LPA Implementation Process Overview

Experts at The Luminous Group have developed a 14-step

implementation roadmap based on the Plan-Do-Check-Act
approach. Below is a high-level overview of this proven 2. Perform a Gap Analysis
implementation process, which most companies can In this step, manufacturers should examine their current audit and
complete in two to four weeks.2 verification processes to assess what’s missing. During this process,
it’s also important to look at customer requirements to see where they
are (or aren’t) being met.

Plan 3. Identify Where to Begin

Plants should choose an area to pilot LPAs before rolling them out
to the entire plant. Different approaches to this decision focus on
1. Form the LPA Team starting with an area that already runs well, or an area in need of
improvement that can deliver early wins.
The first step of implementing LPAs is creating the team. Your team
should include a group of three to six people that include:
4. Identify High-Risk Trends
• An LPA program champion that leadership respects—and who can
Next, manufacturers must determine what drives risk in the process.
hold those leaders accountable for their key role in LPAs
Places to look include:
• Representatives from different functional areas, including quality,
• Process failure mode and • Conversations with operators
operations, engineering, human resources (HR), finance and
effects analysis (PFMEA) • Quality and throughput issues in
administration
• Customer complaints the specific work area
• Individuals from management as well as front-line employees
• Scrap reports • Elements that vary hourly or daily

5. Develop Audit Checklists

Best Practice Checklists should directly address risks identified in step 4. Chapters 6
LPAs should be owned by operations (not the through 8 of this guide deal more in-depth with how to write effective
quality department), since they have direct questions, which is one of the most difficult (and yet foundational)
involvement with plant floor processes. aspects of LPA success.

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 CHAPTER 3: LPA Implementation Process Overview

Do
6. Determine Who Will Conduct Audits 9. Document the LPA Process
Auditors should come from every level of the organization, including Teams must document the LPA process to successfully roll it out to
front-line operators, team leaders, plant management and even other areas. The procedure should describe how LPAs integrate with
executives. A truly robust LPA program draws auditors from every other systems such as PFMEAs, control plans and corrective actions.
department across the organization, including:
• Operations • Shipping 10. Train Auditors

• Maintenance • Administration, HR and finance Auditors should be trained on the value of LPAs and how to conduct
them effectively, including audit best practices to foster engagement.
Chapter 9 provides information on auditor training.
7. Determine Audit Frequency
This step should focus on ensuring coverage and distributing 11. Communicate with the Workforce
workload. Audit frequency should correspond to the individual’s
layer or level in the organization: Like anything new, implementing LPAs is likely to meet resistance.
Top management can help address this by communicating the value
• Layer 1 (team leads): Every shift
and objectives of LPAs, and most importantly by active participation
• Layer 2 (supervisors): Daily in audits. In the following chapter, we explore management’s role in
• Layer 3 (plant manager): Weekly LPAs in greater depth.

• Layer 4 (upper management): Monthly or quarterly

12. Begin Audits
Once your team is trained, you’re ready to start your audits. The role
8. Establish a Management Review System
of the auditor is to correct process non-conformances, provide helpful
Management review is essential to LPA effectiveness, establishing feedback and solicit ideas for improvement—not to blame operators
metrics for analysis and creating a closed-loop system that ensures for mistakes. Chapter 10 provides practical strategies for conducting
problems uncovered are fully resolved. Chapter 4 of this guide audits, while Chapter 11 focuses on key elements of the reaction plan
discusses management reviews in more detail. in the case of non-conformance.
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 CHAPTER 3: LPA Implementation Process Overview

Check and Act

13. Monitor and Adjust LPAs 14. Cascade LPAs Throughout the Plant
This step represents the “Check” and “Act” parts of the Plan-Do- Once you’ve piloted the LPA process, you can start rolling it out to
Check-Act cycle. Things to look at include: the rest of the plant, or other departments like shipping, purchasing
and administration. One proven strategy is to have the first team
• Whether questions are specific enough and address true root
help train the next team. Chapter 9 focuses on LPA rollouts, while
causes of variation (Chapter 8)
Chapters 14 and Chapter 15 discuss how to leverage LPA software
• Adding new questions based on corrective actions (Chapter 12) to get more from audits.
• LPA metrics such as audit completion rate, on-time audit
completion and corrective action closure times (Chapter 16)

Fast-Track Implementation with a Kaizen Event

Some manufacturers choose to Steps in the event should include: 4. Testing questions with operators on
jumpstart their LPA implementation with the plant floor
1. Bringing together a team with
a Kaizen event. A Kaizen event (Kaizen
Real Life

representatives from different 5. Refining questions and establishing

is a Japanese term meaning ‘change for areas, including process and initial checksheets
the better’) is a short event ranging from quality engineers, production and
a half-day to several days where team 6. Defining audit layers, audit
maintenance frequencies and initial auditors
members focus exclusively on a specific
quality goal. 2. Preparing training materials and 7. Establishing key performance
coverage for participants’ normal indicators (KPIs)
responsibilities
3. Using control plans, work instructions,
FMEAs and other potential question
sources to create starter questions ease.io 19
 CHAPTER #: Chapter Title

Key Takeaways:
1. LPA implementation includes
planning, writing questions,
training auditors and rolling
out audits in stages

2. Ideally, operations should own

LPAs, not the quality department

3. Start with known issues when

beginning to write questions
Learn More
4. Every department should Read more about
participate in LPAs How to Kick Off LPA Implementation with a Kaizen Event

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 CHAPTER 4

Management’s
Role in LPAs
 CHAPTER 4: Management’s Role in LPAs

It would be difficult to overstate the role of management LPAs require an investment of time, effort and new responsibilities
for already busy employees. When management doesn’t engage in
in the success of LPAs. Leadership sets the tone, and
the process, it sends a clear message that LPAs—and quality as a
without their active participation, LPAs are likely to fail. whole—aren’t actually valued by leadership. That’s because employees
pay more attention to what their leaders do than what they say.
In addition to creating the implementation team, top leadership is
responsible for:
Communicating with the Team
• Allocating resources for the audits themselves
Communicating the value of LPAs is important during implementation,
• Communicating LPA value, objectives and results with the team when employees will look to management to see whether the new
• Actively participating in scheduled audits initiative will stick, as well as on a sustained basis. Strategies include:

• Holding people accountable for audit and mitigation completion • Keeping line-side visual management systems updated with LPA
metrics
• Conducting management reviews
• Sharing specific problems solved with the team
These activities are crucial to demonstrating management’s
commitment to LPAs, which team members need to see before • Discussing the value of LPAs regularly
they’re willing to buy into the process. • Recognizing individuals for doing things right

Performing Audits
All levels of management and even company executives should

Real Life conduct LPAs periodically. Plant managers should audit one process
weekly, while a CEO might conduct an audit during a quarterly or
annual visit. If plant managers conduct audits late or skip them, the
One manufacturer we spoke to team will follow their example, and LPAs as a whole will be seen as
underscored the importance of unimportant and eventually will fail.
communicating the improvements One reason it’s so important that management conduct audits is
made to the team until LPAs are that they bring unique perspective and insights to the process. For
ingrained as company practice— example, a plant manager might notice a problem or non-conformance
usually at least one year. similar to one in another process area, sharing a solution that might
not otherwise have been considered.

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 CHAPTER #: Chapter Title

People see leaders out there

doing audits daily, and when
someone points out an issue,
management makes sure it’s
fixed. Seeing their feedback
matters and that we’re
solving problems they bring
up makes all the difference.
–Quality Leader, Automotive Manufacturer

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 CHAPTER 4: Management’s Role in LPAs

Coaching and feedback are also key benefits of management

participation. When management and operators have the chance to Key Takeaways:
speak one-on-one, employees feel their concerns and ideas are heard.
It also gives leaders the opportunity to coach front-line employees.
Ultimately, this enhanced communication is crucial to quality culture.
1. Management must actively
participate in LPAs and
Holding the Team Accountable communicate wins
Conducting audits on time sets the tone for the team, but
management must also hold employees accountable for their 2. Leadership must allocate
LPA responsibilities. That means directly questioning those who
resources for launching LPAs
do not complete their audits (or implementing other appropriate
consequences) so that employees know they can’t just skip audits.
3. Data should be reviewed monthly
Conducting Management Reviews to assess findings and
Management reviews are a key part of closing the loop on LPA LPA health
findings. These review meetings should take place monthly, and
even more frequently in the early phases of implementation.
Management reviews should look at elements such as:
• Whether solutions to non-conformances are effective
• Ensuring problems are not recurring
• Metrics that show the health of the LPA system, including audit
completion rates
• High frequency and high severity issues

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 CHAPTER 5

Top LPA Challenges

 CHAPTER 5: Top LPA Challenges

LPAs are a powerful tool for rooting out sources of variation and production defects. Internal survey data show that the
top five challenges for LPA programs are:
1. Tracking follow-up items: Identifying non-conformances is 3. Leadership participation: Management must complete audits on
just the first step. Companies need a way to close the loop on time to lend credibility to LPAs and set the tone that quality is a
problems to reduce production defects. This step is also critical top priority.
to demonstrating to the team that the audits aren’t just a 4. Audit completion rates: Completing a large number of audits can
meaningless exercise. be difficult, especially when relying on paper-based processes.
2. Pencil whipping: When LPAs don’t deliver value or are treated Audit completion rates are also an issue when leadership doesn’t
as a meaningless compliance requirement, people will rush through participate and/or other team members are disengaged.
the audits and just check the box without investigating issues. 5. Accurate reporting: Getting good data from LPAs requires auditors
The result is unreliable data and pervasive quality problems— that don’t just check the box as well as a process for logging and
not to mention an audit program that drives cost but not value. analyzing findings in a timely manner.

Current LPA Challenges

What are Your Current Layered Process Audits (LPAs)

challenges?

Closing out / tracking follow up action items from failures

Leadership participation

Pencil whipping (no real review, just ‘ticking the box’)

Audit completion rates

Accurate reporting

Updating ch ecklists with new questions / randomization

Moving to an electronic/mobile solution

Scheduling all layers

Capturing mitigations

26 ease.io
0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00%
 CHAPTER #: Chapter Title

It’s a staggering comparison

going from seven [audits]
per year to 100 every month.
Of all our indicators, auditing
is one of the metrics that
correlates most strongly
with quality.
–Director of Quality, Aerospace Manufacturer

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 CHAPTER 5: Top LPA Challenges

Other common struggles include problems like:

• Resources required to manage a paper-based or spreadsheet-based Key Takeaways:
LPA program
• Questions that are low-value and related to minor compliance items 1. Paper-based LPAs present
like paperwork challenges around administration
• Checklists that aren’t specific enough to the process to deliver real and tracking
value
In the following chapters, we discuss these challenges and discuss 2. Audit completion rates are a top
how manufacturers can effectively address them to get better results
issue that impacts the ability to
with LPAs.
find problems

3. Preventing pencil-whipping is
essential to data quality and
value

4. Taking LPAs digital can help

address many of these
challenges

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 CHAPTER 6

How to Write LPA Questions:

The Basics
 CHAPTER 6: How to Write LPA Questions: The Basics

Writing LPA questions and developing checklists are What Makes an Effective LPA Question?
undoubtedly one of the most difficult—yet important— Questions should be targeted as close as possible to the potential
aspects of a successful LPA program. They are so point of failure. LPA questions should:

important because they are used every shift, every day. 1. Identify process lines and steps within those lines that have the
most risk (risk being defined as both severity and probability of
If questions don’t focus on work elements that matter most, occurrence)
auditors and employees will be frustrated, and the entire program 2. Focus on inputs rather than finished product specifications
will be viewed as a waste of time. To leverage the effort in a positive
3. Be in yes/no format, where a “no” triggers the reaction plan
way, it’s essential to take time to learn and develop meaningful
questions. 4. Be specific to the process, rather than a generic question meant to
be used across the plant
The most important thing to know about writing effective LPA
questions is that they must be laser-focused on process inputs, not 5. Be objective rather than relying on interpretation
supporting systems, paperwork or end product. It’s also critical that 6. Specify what evidence should be observed to verify conformance
checklists be tailored to the individual area, rather than using the same
7. Encourage interaction between auditors and operators
questions at every work area across the plant.

Anatomy of a Good LPA Question

An effective LPA question has 4 parts:
1. The question itself: Questions should be in yes/no format, with a 3. The reaction plan for identified non-conformances: Each question
“no” answer triggering follow-up. Avoid vague terms like “properly” needs a pre-established set of steps to follow to correct any non-
or “correctly.” conformance.
2. An explanation of the question: This step helps auditors from 4. Countermeasures: The question should also specify any immediate
other areas of the plant understand the reason why asking countermeasures (part of the reaction plan), for example if
the question is important, such as if it came out of a previous containment is needed for suspected non-conforming parts.
customer complaint.

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 CHAPTER 6: How to Write LPA Questions: The Basics

Who Should Write LPA Questions? Expert Take

One common mistake is making the quality department responsible “Questions are the core of the LPA
for LPAs. Instead, operations should own them and be closely involved system.” –EASE customer, global
with creating the questions, since they have first-hand knowledge of automotive supplier
how process inputs affect quality.
In addition to these high-priority areas, companies should also look
With deep understanding of products and key steps impacting at key documents such as:
reliability, the engineering department should also play a role in
• Scrap, rework and downtime reports
developing LPA questions.
• Preventative maintenance plans
Where to Find LPA Questions • Job setup and tool change procedures
LPAs look at inputs that can vary on an hourly or daily basis, causing • Training materials
waste or avoidable cost. Rather than measuring finished products,
Finally, it’s important to consult operators about what to ask. Experts
for example, LPAs look at process inputs such as the order in which
at The Luminous Group recommend getting this information by asking
an operator tightens a series of bolts.
questions like:
Manufacturers should review a number of inputs to identify aspects of
• If leadership had only a few minutes each day to review the process,
the manufacturing process that require ongoing verification, including:
which items should they check?
• Verified root causes from problem solving reports (e.g. 8D) related
• If you were to train someone on this process, what would you watch
to high-cost issues
for?
• Customer-specific requirements
• What is the most important part of your job?
• PFMEAs and process control plans
• How can you tell if the previous shift was doing a good job?
• Work instructions
• Customer complaints Checklist Best Practices
• Warranty claims Another common mistake to avoid is using generic checklists across
the plant. Checklists should be specific to each process area, digging
• Corrective actions
into specific process elements that address the root causes of
• Functionality of error-proofing devices or procedures variation and defects.

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 CHAPTER 6: How to Write LPA Questions: The Basics

Companies should make sure questions are: LPA Questions 10-Point

• Value-added: Questions like “Are work instructions posted?”
do nothing to improve the process. A better question would be
Checklist
“Is the operator loading parts as specified in the work instructions?” All LPA questions should have the

Tip
• Objective: Avoid vague terms that are open to interpretation, following:
since auditors won’t necessarily be experts in the process.
1. Yes/no format, where “no” triggers
• Targeted: Don’t ask unbounded questions like “Are all setup the reaction plan
parameters in spec?” Considering that an injection molding press
can have up to 500 parameters, this type of question could easily 2. Explanation included
take an hour to fully answer. 3. Reaction plan defined
• Clear: There must be clear evidence that the process is or is not
4. Countermeasures specified
in conformance. For example, “Is the hose on the rack?” Questions
should be so easy to understand that anyone in the company could 5. Verifies a process input
do the audit. Photos of right and wrong conditions can help clarify
6. Specific, avoiding terms like
expectations for the auditor (see Chapter 15 for more on adding
“properly” or “correctly”
photos).
When compiling your checklist, it’s important not to make it too long. 7. Non-technical (anyone can quickly
Audits should take no more than 10 to 15 minutes. Checklists that are answer)
too long make it impossible to complete a large volume of audits, also
8. Addresses a work element that
preventing teams from focusing on what is most important.
has a high risk of causing severe or
Instead of including a wide-ranging list of loose ends, LPAs are for the costly problems
few high-value items you haven’t nailed down. In addition to facilitating
audit completion, keeping checklists short and focused on high-risk 9. Includes a clear statement of
issues means people are less likely to question the value of LPAs. what evidence to observe in order
to decide if the process is conforming
or non-conforming
10. Encourages interaction

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 CHAPTER #: Chapter Title

Key Takeaways:
1. An effective LPA question includes an explanation, reaction plan and
countermeasures

2. Questions should be specific to the area

3. Questions should avoid vague words like “correctly” and “properly”

4. Standards, complaints and other key documents are all potential

question sources

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 CHAPTER #: Chapter Title

Imagine if you had only 30

seconds to verify the conditions
on a manufacturing line at the
start of a shift… what one or
two things would you check?
Those elements are the start
of effective LPA questions.”
–Murray Sittsamer, The Luminous Group

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 CHAPTER 7

Types of Questions
to Include
 CHAPTER 7: Types of Questions to Include

LPA questions focus exclusively on process inputs. As you 3. Method: How is the operator doing the work? For instance, are they
tightening bolts in the order described in the work instructions?
write your questions, they should focus on the six process
inputs of the fishbone diagram. Also called an Ishikawa 4. Environment: Is the environment set up to ensure quality? These
questions, for example, might focus on specific elements of 5S
diagram, the fishbone diagram is useful because it looks
connected to previous quality issues.
at the causes of quality and safety problems.
5. Material: Do materials meet quality standards? Here you might
verify information such as whether a polymer has expired or is
1. People: Is the operator qualified to perform safe, high-quality work?
within the normal humidity range.
Are they wearing the prescribed personal protective equipment
(PPE)? 6. Measurement: Is the gauge being used according to the gauging
instructions? Are the parts prepared according to the standard?
2. Machine: Is the machine ready to produce quality parts? This type
If part orientation is part of the gauge instruction, is the correct
of question could verify, for example, whether the mold pressure
orientation being used when gauging parts?
setting is correct on plastic injection molding machines.

The Fishbone Diagram can Help Focus on the Causes of Quality Problems Elements of 5S

People Machine Method

Sor t

in

Se
ta

t in
Sus

Or der
Problem

St
an
ar
ine

d
diz
e Sh
Environment Material Measurement
36 ease.io
 CHAPTER 7: Types of Questions to Include

Focus on High-Value Operations

Questions should address the top causes of problems, focusing on Best Practice
high-value operations. It’s easy to ask, “Is the scrap bin inside the red
square?” Even though this falls under the umbrella of 5S, it provides Many manufacturers struggle to write effective
no value to the operation. However, if mixing of good and bad parts is LPA questions. At the same time, questions are the
an issue, this would be an area to check. foundation of LPAs as a whole.
Mistakes to be sure to avoid include:
Encouraging Interaction • Overly general or subjective questions
Good LPA questions encourage interaction with the operator. A bad • Not involving operators in writing questions
question might ask, “Is the check gauge form filled out?” This question
doesn’t tell you whether the check gauge is working—only that • Using the same questions everywhere in the plant
someone filled out a form saying it is. • Looking at finished product specs
A better option would be to ask, “Can the operator demonstrate • Checking paperwork
the procedure for checking the part?” This type of question is what
• Assessing low-value items that frustrate
sparks a conversation. The associate might point out how hard it is
auditors and operators
to load the part, leading you to rework the process.
• Questions that require technical knowledge
One of the biggest benefits of LPAs is creating opportunities
to answer
for coaching and feedback. If management can conduct the audit
standing 20 yards back from the press, that won’t happen. Write
your questions so that auditors and operators have to interact.

Learn More
Download our free
LPA Checklist Template for starter ideas and questions

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 Key Takeaways:
1. Design questions around process inputs, not products or outputs

2. Focus on high-value operations

3. Questions should encourage interaction

4. Avoid generic questions and checklists

5. Involve operators in writing questions

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 CHAPTER 8

Before-and-After
Examples of LPA Questions
 CHAPTER 8: Before-and-After Examples of LPA Questions

In this section, we look at examples of common LPA Before: Is the machine running properly?
questions used by manufacturers and how to improve on After: Is the screw on the press running between 600 and 620 rpm?
them. “Properly” is a vague term that’s difficult to assess for someone
Before: Does the operator know how to handle non-conforming unfamiliar with the process. The second version provides clear
material? evidence for determining whether the equipment is in conformance.

After: Can the operator demonstrate each step of the non-conforming

material process according to the quality manual? Before: Have all red tags been completed correctly?
The first question is easy to pencil whip, as it isn’t specific enough After: For parts with a red scrap ticket, does the ticket have the part
to determine whether or not the operator actually follows the non- number, date, quantity, defect and description?
conforming material process. Rather than asking whether an employee
Again, this is an example of providing clear evidence as opposed to
knows something, it’s more useful to determine whether they can
using a non-specific term like “correctly.” Anyone, even a non-expert,
execute the process.
should be able to verify whether a given piece of scrap has been
labeled right based on the question.
Before: Are the work instructions posted?
After: Can the operator demonstrate each step of the most recent Before: Is the machine set up correctly?
version of the work instructions available at the work station?
After: Does the operator install the gear using the 12-gear alignment
The original version of the question is an example of verifying tool, placing the blue edge at a 45° angle to the base?
paperwork, which is not the purpose of LPAs. The goal of LPAs is
The first question is more likely to lead to confusion on the part of
to verify process conformance. Here, it is critical to verify that the
the auditor. The second question provides specifics for verifying
operator’s actions follow the work instructions in addition to verifying
conformance.
that the auditor has a standard to reference.
ISO 9001 clause 8.5.1 and IATF 16949 clause 8.5.1.2 both refer to
documented information being available and accessible in the work Before: Is the operator tightening the bolts in the right order?
area. However, for LPAs to be effective, you will want to go a step After: Does the operator tighten the bolts in the order specified on
further to determine whether they are actually being followed. the work instructions?

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 CHAPTER 8: Before-and-After Examples of LPA Questions

If you don’t specify the order in which the operator should be Someone unfamiliar with the process won’t know what the right
tightening the bolts, many auditors won’t be able to tell whether frequency is. The second question will be more helpful for determining
they’re doing it right. The result is they’re more likely to just check if the voltage meter is out of calibration.
“yes,” providing no visibility into whether the operator is following work
instructions.
Before: Are stray parts and components identified appropriately?
After: Do all loose parts and components have an identification tag
Before: Is the employee wearing personal protective equipment (PPE)? complete with part type, operator name, time, and date?
After: Is the employee wearing a hard hat, hearing protection and Added specificity in the second version of this question means anyone
safety glasses? can easily determine whether loose parts are tagged “appropriately”—
The second question provides verifiable criteria to determine whether or whether they are likely to become mixed with finished parts.
the operator has the necessary PPE to do their job safely. By using
the blanket “PPE” term, the first question is not specific enough to
determine conformance vs. non-conformance with safety procedures. Before: Do all materials contain lot traceability information?
After: Does each part’s trace tag contain a lot and batch number
matching the raw material label?
Before: Does the poka-yoke device work?
“Lot traceability information” isn’t clear enough for non-experts,
After: Does the error-proofing device indicate a defective part as making them more likely to just skip over the question or mark it as
failed? passed without deeper examination.
In this example, the first question is too vague to verify whether error-
proofing device is in working order. The second version gives clear
instructions on how to actually verify this. Before: Is the operator following acid bath procedures?
After: Is the operator double-checking the amount of acid being put
into the acid bath?
Before: Was the voltage meter calibrated at the frequency specified in
the work instruction? This example highlights a specific step for the auditor to check,
rather than expecting them to understand and verify every step of
After: Can the operator perform the calibration, including the
the procedure. This helps keep the audit short, so you can complete
documentation of the recording of the calibration being completed?
more audits.

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 CHAPTER 8: Before-and-After Examples of LPA Questions

Before: Does the operator use the correct torque setting?

After: Does the setting on the torque gun match what’s specified in Key Takeaways:
the current work instruction?
The first version of this question uses the vague “correct” term, which 1. Avoid terms like “properly” or
is often a source of confusion for auditors. The second version gives “correctly”
the auditor a specific standard to verify against.

2. Make questions simple enough

Before: Are quality alerts posted? for anyone to understand
After: Can the operator describe how their work relates to the quality
alert? 3. Don’t check paperwork or
The first question verifies a piece of paperwork. The second question finished product
gets to the heart of the matter, which is whether quality alerts are
being used effectively.
4. Be specific about criteria

Before: Does the sheet on the clipboard show that the filter was
changed in the last 12 hours?
After: Is the top of the filter box attached to the clipboard and signed
with the operator’s initials, date and time?
Here’s another example of verifying a check sheet versus verifying
that a specific task was completed. In the before version, you’re only
looking at a piece of paper. The after version verifies physical evidence
that the filter was changed.

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 CHAPTER 9

Rolling Out LPAs to

Your Plant
 CHAPTER 9: Rolling Out LPAs to Your Plant

Once you’ve got key planning elements in place such Getting Employees on Board
as your starter checklists, audit schedule and process Operators and others being audited should be notified of the upcoming
documentation, it’s time to start rolling out LPAs to changes, explaining:

the plant. • How LPAs work

• What to expect during an audit

Training Auditors • The reason for conducting LPAs

Auditors in an LPA program should cover a wide cross-section of • How LPAs help all operations run more smoothly
employees, including operations staff as well as functions like shipping, While you don’t necessarily need to sit operators down for a formal
finance, human resources and administration. Training doesn’t need to presentation, it’s important that your team understands why you’re
be extensive, but you should cover: implementing LPAs and what you hope to achieve with them.
• The philosophy behind LPAs: It’s important to discuss why your Employees should be invited to give feedback and ideas for continuous
organization is implementing LPAs and what you intend to achieve. improvement during the audits. Be sure to make it clear that LPAs are
meant to be a two-way conversation to improve processes—not to
• Checklist overview: You’ll want to spend time going over the types
blame operators.
of questions auditors will see, showing how to mark responses
correctly on the paper checklist or software. As with any major change, you can expect resistance, both from those
who now have new responsibilities as well as those being audited.
• The audit process: What do employees need to do when it’s time
Sticking to the plan can help notch some early wins, which ultimately
for their audit? For paper-based systems, you’ll want to cover where
is one of the best ways to get your team’s buy-in.
people can find checklists and where to enter findings when they’re
finished. For automated systems, you’ll want to provide an overview
of how to use the software.
• Mock audit: Training should include a mock plant floor audit to
determine whether individuals are ready to jump into their scheduled
audits.
Auditors should be trained to show respect and initiate conversation
with the person being audited. More information on audit skills can be
found in the next chapter.

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 CHAPTER 9: Rolling Out LPAs to Your Plant

Key Takeaways:
1. Team buy-in is critical to LPA
success

2. Give auditors a chance to

practice with mock audits

3. Focus on LPA value to get people

on board

4. Encourage feedback from

operators being audited

Learn More
Overwhelmed about where to begin? Download our free
LPAs 101 eBook for three simple steps to getting started
with LPAs

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 CHAPTER 10

Audit Best Practices

 CHAPTER 10: Audit Best Practices

In this chapter, we explore best practices around how to How to Record Mitigations
conduct audits themselves, including how to record non- When a problem is rectified on the spot, auditors must still mark the
conformances and mitigations as well as best practices answer to the original LPA question as “no.” It’s common for auditors
to want to answer “yes” because the issue was fixed, but the original
and soft skills for performing audits.
non-conformance must still be recorded so the team can learn from
it and it can be rechecked in the future. The mitigation should also be
How to Indicate Conformance or Non-Conformance on the noted.
Plant Floor
Asking Questions on the Plant Floor
During the audits, auditors must be sure to:
Getting good information from audits isn’t just about running through
• Ask and listen: Similar to the popular “management by walking
a checklist. How auditors interact with operators has a huge impact
around” approach, auditors should listen 80% of the time and talk
on the ultimate success or failure of LPAs. Following a few basic
no more than 20%.
best practices can help you get much more from these audits, while
• Look for evidence: Auditors must document any evidence of non- fostering communication, coaching and a sense of team ownership
conformance and should also look for evidence of people doing over quality.
things right.
• Pay attention: Management should look for and ask about other
issues that seem different or problematic.
If you’re using mobile audit software, you might consider requiring
auditors to upload a photo to document evidence of the conditions
found in the audit (both good and bad). Photo evidence of a non-
Making LPAs a Visible Presence
conformance is particularly helpful when investigating the issue and
determining corrective action steps (see Chapter 15). One EASE customer has auditors wear a high-
visibility vest marked “LPA” when conducting
Tip audits. This sends the message that leadership
is behind LPAs and values quality, while reminding
everyone to pay closer attention to compliance
with standards.

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 CHAPTER 10: Audit Best Practices

Consider, for example, an auditor that stands off at a distance from

the machine ticking off questions silently. Now compare that to a
Ask Leading Questions
supervisor asking questions, having a conversation, asking them to
explain how something works, noting that something was different and At the end of the audit, you should ask leading
questions that encourage the operator to share

Tip
asking why, soliciting ideas and suggestions.
concerns or ideas. While not a formal checklist
Which one is more likely to work? Clearly, it’s the second audit.
item, these discussions are often the catalyst
for big improvements, fostering openness and a
Explain the Why culture of quality.
As you conduct your audit, be sure to explain the why behind each
question, which should be included on the checklist. Discussing the
reason for the question goes a long way towards improving buy-in to
LPAs, helping operators and auditors see that the audits aren’t just
another box to check. At times, you may get a five-minute lecture on everything going wrong
For instance, rather than saying “Is the gauge set to 120 psi?” for the operator. However, there are golden nuggets in that discussion
Auditors should add that an incorrect setting had led to a customer if you’re willing to sift through it.
complaint last quarter, and that the team needs to verify that the The key is to capture this information in a notes section, whether on a
equipment is running correctly. paper checklist or in a custom software field. It’s also key that training
Sharing improvements made as a result of LPAs can also help earn focus on bringing these issues to LPA reviews, since they are often
the cooperation of operators whose processes are being audited. larger and may need to be addressed outside of the LPA system.

Ask open-ended, leading questions like:

Soft Audit Skills: The Human Element
• What’s changed in your process recently?
Audits are ultimately about one human talking to another. The way
• What are you struggling with? auditors interact with operators makes a difference in terms of the
• What’s getting in your way? results you see. Rather than pointing fingers—something many people
associate with audits—an approach based on respect will help keep
• What’s the one problem that you need fixed that you just can’t
the lines of communication open.
get done?

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 CHAPTER #: Chapter Title

Auditors should follow several steps to maximize engagement:

1 5
If the person you’re auditing doesn’t If a question is confusing,
know you, introduce yourself ask the operator to explain
what that question means to them

2 6
Focus on having conversation— Positively recognize the operator
not just running through a list of items for following standards—and explain why
that’s important

3 7
Make eye contact Ask for suggestions
with the person you’re auditing and take notes

4 8
Show genuine interest Flag items for follow-up
in responses and notify supervisors
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 CHAPTER 10: Audit Best Practices

Closing the loop on problems is essential to LPA success. Without

it, you’ll face problems like recurring quality escapes as well as low Key Takeaways:
engagement. That’s because lack of follow-up on identified problems
says to the team that leadership isn’t actually concerned with solving
clearly identified problems, and that LPAs are just a meaningless
1. Ask, then listen and look for
exercise in compliance. evidence, paying attention
to other areas that seem
Management’s Role in Conducting Audits
problematic
More than just providing support from a messaging or resources
standpoint, management must play an active role in conducting
2. Recognize people for doing
audits and providing coaching and feedback. Leaders bring a unique
perspective to processes and are able to provide lessons learned things right
from other plants or previous roles.
Their active participation also allows for one-on-one conversations 3. Explain why you are asking
between front-line employees and management, enabling faster the question
improvement, improved communication and higher employee
engagement. When front-line operators see that a plant manager cares
4. Use leading questions to get
enough about what they do to come to the plant floor and see it done,
that sends a powerful message about how your organization values operators to share concerns
quality.
5. Auditors should show respect

6. Management must actively

participate

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 CHAPTER 11

Creating the
Reaction Plan
 CHAPTER 11: Creating the Reaction Plan

Developing an effective reaction plan for LPA questions Mitigation

gets to the heart of what these high-frequency audits An on-the-spot mitigation to prevent the problem from continuing
are all about—solving problems. Without a reaction plan, may also be necessary. That could mean initiating a request for
maintenance to perform calibration on a piece of equipment, or having
problems will fall through the cracks, impacting customers
an operator change how they are performing a procedure to conform
while reducing buy-in for LPAs as a whole. What’s more, with standards. LPA questions should make clear what the next step
not solving problems sends the message that quality is when a non-conformance is identified.
isn’t important, which can undo all of your efforts at Not every non-conformance will require a full corrective action.
establishing a culture of quality. Correcting problems on the spot is crucial to reducing the backlog
of corrective actions and avoiding overloading the system with small,
The action plan included with each question should specify the easily fixable problems. LPA questions should indicate what mitigation
following for any identified non-conformances: steps to take, if any, and trigger supervisor notification where
appropriate.
• Containment actions required
• Mitigation steps to take Corrective Action
• Any required corrective action When it’s not a one-off problem that can be fixed immediately,
a corrective action is necessary to get to the root cause and ensure
Containment the problem doesn’t happen again.
If an LPA non-conformance reveals the possibility that bad parts Manufacturers employ a variety of problem-solving and root cause
have already been produced, the most immediate action should be to analysis methodologies, including the 8D approach, the 5 Whys method
contain the problem. This means assessing the extent of the problem and fishbone diagrams. LPA questions should clearly indicate how to
and current location of all suspect parts, which should be set aside initiate this process, typically by notifying a supervisor and assigning
and clearly marked. action items to individuals. When using an LPA software platform such
Each question’s reaction plan should state any containment steps as EASE, a corrective action can be initiated and assigned to ensure
to be taken in the event the question fails. During the LPA, auditors appropriate follow up.
should document any containment actions taken.

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 CHAPTER 11: Creating the Reaction Plan

Human Error: What’s the Real Root Cause? • Environmental distractions

When someone finds a problem, it’s common to chalk it up to human • Automated system access issues or workarounds
error and assign more training to employees. In reality, human error • Versioning issues or printer errors with paper-based processes
is a symptom of a deeper root cause that, when unaddressed,
• Employees not aware of their impact of quality
allows defects to persist.
• Workarounds used due to tool or equipment issues3
Instead of going with the easy root cause, ask why the human
made a mistake. Human error should be an expected variable in the Retraining won’t solve any of these problems, which is why
manufacturing process, and you should evaluate corrective actions manufacturers should always take a second look when the root
based on what will eliminate the cause of human error. cause is identified as operator error.
Potential root causes behind human error to assess include: From a practical standpoint, determining the true root cause of
an issue will likely require more than the 10 or 15 minutes it should
• Confusing procedures
take to complete an LPA. In many cases, auditors will focus on finding
• Similar but different parts or labels the issue and containing it, while leaving root cause analysis to the
• Personal distractions issue owner.

The 8D Method

D0 Plan
D3 Take interim containment
actions D6 Implement & validate
corrective actions

D1 Form a team
D4 Analyze the root
cause D7 Identify & implement
preventative actions

D2 Define & describe

the problem D5 Formulate & select
corrective actions D8 Recognize the team &
individuals

53
 Key Takeaways:
1. Closing the loop on problems is key to maintaining support for LPAs

2. The immediate reaction to a non-conformance should be to contain

any suspect parts

3. Correct the problem on the spot whenever possible, launching

corrective action where it isn’t

54 ease.io
 CHAPTER 12

Updating Your
Question Library
 CHAPTER 12: Updating Your Question Library

Continuous improvement isn’t possible when If you’re using paper checklists, this will require devoting time and
resources to editing and redistributing checklists, as well as making
manufacturers take a “set it and forget it” approach
sure old ones aren’t still in circulation. If you use a software solution
to LPA questions. Instead, you should be updating your for your LPA program, one best practice is to update questions where
question library regularly to ensure you’re accounting possible rather than replacing them. This way, you can still view the
for emerging risks and challenges—and not allowing entire compliance history associated with the question, rather than
problems to repeat themselves. losing it by creating an entirely new question.

Management Reviews
When to Update Questions
LPA questions should be discussed during monthly management
Manufacturers should update questions: reviews, identifying any recent problems, risks or corrective actions
• That are confusing or frequently misread that warrant adding new questions to checklists.

• After a customer complaint or corrective action to verify the When reviewing performance results, LPAs should be an agenda item.
solution is still in place and stays in place Ask questions like:

• When questions don’t follow best practices in terms of being • Are all auditors completing their scheduled audits?
specific, objective and clear • Is there a correlation between LPAs completed and downward
• When PFMEAs are updated trends in scrap costs, complaints or other KPIs? If not, why not?

An example of when to add a question would be after implementing • Is the LPA system working as intended?
a solution to a customer complaint. Maybe the new procedure has • If not, why? Do questions need to be reassessed?
the operator loading the part left to right, rather than right to left.
Adding a question allows you to verify that the operator is still
following the new procedure in a week’s time, rather than just
assuming that they are. Real Life:
Engaging Quality Leaders
One manufacturer we spoke with has
Six Sigma black belts or Lean leaders
review a set of questions every month.

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 CHAPTER 12: Updating Your Question Library

Expert Take
Should You Remove Questions from Your Question Library?
You may be tempted to delete questions if it passes 99% of
the time. However, according to Sittsamer, a better option is to
simply reduce its frequency. Rather than asking a question that
passes every time on every audit, which can frustrate auditors
and operators, you might instead have that question appear
only monthly or quarterly.
“Maybe the reason it always passes is because someone is
always checking it,” he says, adding that you might consider
removing a question if you’ve eliminated the cause with error-
proofing devices.
“It’s the second law of thermodynamics,” says Richard Nave, a
consultant with The Luminous Group. “Systems tend towards
disorder, so you have to check back once in a while.”

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 Key Takeaways:
1. Add new questions after complaints, corrective actions and
other quality events

2. Update questions that are confusing or easily misread

3. Instead of removing questions, reduce their frequency

4. Use management reviews to identify new questions

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 CHAPTER 13

Strategies for
Improving LPA Results
 CHAPTER 13: Strategies for Improving LPA Results

Many organizations struggle to get the full value from

LPAs, which is due to several factors: Reducing Frustration
• Poor monitoring and follow-up processes Asking a question that passes (or fails) every single
time will frustrate auditors and operators. Consider

Tip
• Management participation issues
reducing the frequency of questions that always
• Lack of team buy-in
pass and determining why certain questions
• Generic, confusing or otherwise ineffective questions always fail.
• Not completing enough audits
• Difficulty extracting insights from audit findings
Overcoming Resistance
Monitoring LPA Effectiveness
Management and team buy-in are key elements of LPAs that
For LPAs to work, companies must have metrics and processes in companies often have difficulty with. Without your team on your side,
place to monitor the health of the LPA system itself. This means it’s very hard to achieve the volume of audits needed to drive results,
tracking metrics such as: also presenting a key barrier to creating a culture of quality.
• Audit completion rates Don’t be surprised if you encounter resistance as you try to implement
• Pass rates LPAs. Overcoming this resistance should focus on:

• On-time audit completion • Communicating the value of LPAs to management and the team

• Number of audits completed • Giving people the chance to observe before participating

• Mitigation closure rates • Making sure that employees know the point is to improve processes
and help people do their jobs better—not to blame operators
Organizations should also conduct management reviews of LPAs
at least monthly to discuss metrics, open action items and trends • Sharing any early wins to help build momentum
in findings. Management must also be willing to hold people accountable for their
scheduled audits. It’s especially important for those employees waiting
to see if LPAs are just another one-off initiative that will eventually be
forgotten about.

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When you need to manage
thousands of these audits—
and feel confident that you
can effectively harness the
data—you can’t reasonably
expect to do that in a paper
system. When you schedule,
conduct and report on them
electronically, all of those
constraints disappear.
–Director of Quality, Aerospace Manufacturer

61
 Key Takeaways:
1. Monitoring LPA effectiveness is key to success

2. Conduct reviews at least monthly

3. Leadership sets the tone

4. Overcoming resistance requires communicating the value

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 CHAPTER 14

Digital LPAs: How to Eliminate Paperwork and

Prevent Quality Issues with LPA Software
 CHAPTER 14: Digital LPAs: How to Eliminate Paperwork and Prevent Quality Issues with LPA Software

Achieving the intended results of LPAs is difficult, “When companies try to do paper-based LPA systems, they end up
focused on the trees rather than the forest. Digital systems help
if not impossible, with paper checklists and spreadsheet-
companies see the big picture and get the most value from LPAs.”
based reporting. The work involved with these manual –Richard Nave, The Luminous Group
approaches quickly becomes very overwhelming as the
number of lines or cells audited grows and the overall Solving Top LPA Challenges
number of audits expands. LPA software like EASE breaks down several key barriers to getting
results with LPAs, reducing quality costs and helping create a culture
The power of LPAs comes from their high frequency and volume, as of quality in several ways:
well as the ability to take fast action on findings. Taking LPAs digital
• Simplifying administration: Eliminating tasks like scheduling audits,
can help eliminate the administrative hurdles, allowing companies to
notifying employees and entering findings allows you to focus on the
realize the full value of this unique audit approach. In the next chapter,
trends driving quality—not just busywork.
we discuss in detail how this works.
• Boosting audit completion rates: Mobile software can simplify the
Many manufacturers that implement LPAs fail to achieve their full
LPA process, making it easier for people to get their audits done.
value due to the inherent shortcomings of manual approaches.
Increasing audit completion rates is crucial to getting the full picture
These inefficiencies create problems that include:
of where your risks are.
• Low audit completion rates because of the difficulty scheduling a
• Delivering critical insights: Real-time, decision-quality data
large volume of audits and reminding employees to complete them
eliminates the lag time in reporting so you can get ahead of
• Lack of visibility into process non-conformances resulting from problems rather than just react to them.
pencil-whipping or checking the box
• Closing the loop: LPAs are meaningless without a reaction plan to
• Lag time in audit reporting due to manual data entry and respond to findings. LPA software provides a big advantage here,
spreadsheet analysis, which allows problems to snowball rather allowing you to record mitigations, notify supervisors and assign
than proactively resolving them items for further corrective action.
• Persistent quality escapes and customer satisfaction problems
due to ineffective follow-up and reaction plans

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 CHAPTER #: Chapter Title

Real Life: How One Global Manufacturer Uses LPA Software to Solve Systemic Issues

One manufacturer, an EASE plant floor audit software customer, has One critical aspect of this system is that the bank of focus questions
devised a simple, effective strategy for uncovering systemic issues is small compared with other tags. For example, quality standards
using question tags or categories. The main goal: identify those might have 15 questions, with one question from that tag asked on
problems that are pervasive and correct them quickly. each audit. Conversely, there might only be two focus questions at
any given moment, which receive attention on every audit, every shift,
This strategy is based on a few key elements:
for every piece of equipment.
• Each question is tagged with categories such as equipment,
The result is that the manufacturer can keep audits short—
process, material, quality and project sustainment.
allowing them to complete more than 200 weekly—while ensuring
• A separate tag, labeled focus questions, is used to ask questions broad coverage of standards.
at an increased frequency to uncover systemic findings.
The company also uses these dynamic question banks to:
• If a randomized question from one of the other categories fails, that
• Uncover the cause of problems: A uniformity condition, for instance,
question gets temporarily switched to a focus question asked on all
can have one of six causes, so the team will turn on specific
audits for the same equipment type for four weeks.
questions in response to uniformity issues.
According to a senior manager, “If we change the tag Tuesday evening
• Shore up documentation: This approach also shows when
on third shift, then first shift Wednesday morning we’re looking at
documentation needs improvement, such as when audits reveal
whether this same issue is occurring across all 30 machines.”
undocumented tribal knowledge or unstable standards driving
This allows the manufacturer to quickly determine whether a finding is systemic issues.
an isolated incident or a systemic problem that needs to be addressed.
• Raise awareness about quality issues: When the team adds a new
Repeat findings trigger a process change, as opposed to localized
question, they typically launch it as a focus question.
mitigations that don’t have as big an impact.
All of this would not have been possible without an automated system,
“If we just conduct audits, do some mitigations and keep floating
making the EASE platform a catalyst for change in this organization.
around, we’re not going to get anything out of it,” says the senior
manager. “The goal is to uncover repeat findings and address them “The paper model doesn’t scale to a 1,000-employee factory,” the
with corrective actions. That’s where the win actually is. Metrics senior manager says. “I’m passionate about how we use EASE and
move on that—not one-off findings.” what we’re getting out of it.”

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 CHAPTER 14: Digital LPAs: How to Eliminate Paperwork and Prevent Quality Issues with LPA Software

What’s the ROI of LPA Software? ROI Factor #2: Reducing Production Defects
LPA software delivers value to manufacturers in a number of ways, Within the larger context of cost of quality, LPA software delivers
including: ROI by helping reduce production defects and inefficiency. Consider:
1. Helping avoid quality escapes • Cost of quality is 15-20% of revenue for most companies.6
2. Reducing production defects and associated costs and waste • Scrap and rework alone total up to 2.2% of sales,7 with warranty
3. Improving customer satisfaction claims up to 2.7% of sales8.

4. Improving productivity by getting more things right the first time • That means a company with $100 million in annual revenue loses
roughly $5 million in scrap, rework and warranty claims (in addition
5. Streamlining certification and compliance to hidden productivity and efficiency costs).

ROI Factor #1: Avoiding Quality Escapes • In this scenario, reducing production defects by just 10% adds
$500,000 to the bottom line, also adding revenue by reducing waste
When it comes to the ROI of LPA software, the answer is clear:
while increasing productivity, production capacity and sales.
if a system prevents even one quality escape, the platform can easily
pay for itself. Clearly, even small improvements in key metrics like scrap and
customer complaints can have an outsized impact on a company’s
That’s because of the potentially astronomical costs associated with
bottom line.
defective products reaching customers. In the automotive industry,
for example, OEM line stoppages due to defective parts costs suppliers ROI Factor #3: Improving Customer Satisfaction
$10,000 per minute, plus the cost to sort out bad parts and correct
the problem. In fact, the total cost of downtime can be up to $50,000 During a customer audit, demonstrating effective use of an automated
per minute, according to a survey of automakers .4 LPA platform can make a big impression. In any industry, customers
want to see that you are proactively identifying problems, regularly
Suppliers may also be responsible for items such as: checking processes and responding to any issues.
• Shipping replacement parts at expedited speed An LPA platform does just that, showing customers that you take
• Inspection and sorting costs quality seriously, and you’re committed to preventing quality issues
from falling through the cracks.
• Yard-hold costs
• Product recall costs5

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ROI Factor #4: Improving Productivity ROI Factor #5: Streamlining Certification and Compliance
When you get more things right the first time, you increase LPA software helps simplify the certification process for standards
productivity. That’s because scrap and rework mean wasted money, like ISO 9001 for quality management, IATF 16949, VDA 6.3 for
inefficiency and overall loss of productivity. automotive quality management and AS 9100 for aerospace quality
management.
Spending time verifying process inputs allows manufacturers to use
fewer resources creating defective products, so they can shift those This type of platform helps manufacturers demonstrate compliance
resources to making products that actually turn a profit. The result is with common requirements of management system standards such
higher productivity and increased production capacity, which in turn as:
help boost sales and revenue. • Documenting audit findings and follow-up activities
• Implementing a system of checks
• Proactively identifying and assessing risks, not just with rear-facing
product inspections but also by looking at process inputs
• Verifying and validating corrective actions
• Improving employee engagement and awareness of their roles in
ensuring quality
Conducting digital LPAs can also help manufacturers make a positive
impression on auditors, demonstrating a system for proactively
preventing quality issues that’s more reliable than pen and paper.

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 CHAPTER #: Chapter Title

DRiV is a division of Tenneco and a supplier to all major

automotive OEMs, with 51 manufacturing locations across
six continents.

Legacy Audit Processes Block Improvement

When Raja Ramaswamy, Global Digital Quality Manager of Ride

Case Study: Performance, joined the team as a quality engineer, the company
used paper checklists combined with entering findings manually.
Global Automotive Leader “Conducting audits meant printing out a sheet of paper, going to the

Tenneco Avoids Quality shop floor to do the audit, and then coming back to enter findings in
a database,” says Ramaswamy.
Escapes with EASE Key challenges included:
• Unsatisfactory progress on goals like eliminating customer
complaints, reducing scrap and improving key performance
indicators (KPIs)
• Documenting evidence of findings to eliminate confusion and
delays in corrective action
• Pencil-whipping and low engagement, where auditors just
“check the box” to finish audits quickly
• General Motors (GM) Built in Quality Supply (BIQS) certification
findings related to LPA program performance

Finding Flexible, User-Friendly Audit Software

In looking for a solution, flexibility was critical because the company
needed a tool they could adapt to their existing processes.
“The other tools we looked at weren’t as well-tailored to LPAs,”
Ramaswamy says.

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 CHAPTER #: Chapter Title

“We could tell that someone who actually knew the LPA process was
involved in developing EASE, and that it had the built-in flexibility to fit “If it’s prevented even one quality issue—
our needs so we could get started quickly.” and it has—it’s paid for itself.”
Ease of use was also a top consideration for the team. Not everyone
in the plant is comfortable with technology, points out Ramaswamy,
“GM was happy that we implemented EASE, which was a huge win
making a user-friendly interface essential to a successful rollout. He
for us,” Ramaswamy says. Locker agrees that the software has been
says the EASE platform stood out from the competition here as well.
helpful for keeping customers satisfied.
“Even users who aren’t tech-savvy are able to learn how to use EASE
“Using EASE has allowed us to mitigate issues that could have
quickly,” Ramaswamy says.
become customer problems,” says Jeff Locker, quality manager for
the company’s Kettering, Ohio plant. “If it’s prevented even one quality
Avoiding Quality Escapes and Reducing Complaints
issue—and it has—it’s paid for itself.”
The biggest improvements DRiV saw as a result of implementing EASE
were: Moving Forward with a Global Rollout
• Several quality escapes avoided After the success of the initial pilot program, DRiV decided to
• Reduced customer complaints implement EASE at six more North American plants. From there, DRiV
began rolling out the software across all sites globally. Widespread
• Increased customer satisfaction
user acceptance was a major factor in the decision, as well as smooth
• Reduced audit administration time by 94% change management and increased visibility of data.
• Higher on-time audit completion rates for a large volume of audits “With EASE, leadership was able to drill down and actually understand
• Ability to close the loop on problems immediately due to instant issues on the shop floor remotely,” Ramaswamy says. “The data is
visibility of findings available everywhere, and everyone can understand it and use it to
make decisions.”
The first plant that implemented the software saw significantly
fewer customer complaints, which also played a role in helping reduce As for whether he recommends other manufacturers implement EASE,
costs and inefficiency in terms of scrap and rework. What’s more, the the answer is yes.
system helped eliminate difficulties with the GM BIQS certification “The benefits outweigh the costs in truly building the fundamentals,”
process. says Ramaswamy, adding that the software has paid for itself. “It’s not
just about the short-term benefits—investing in EASE brings long-term
strategic benefits for any business.”

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 CHAPTER #: Chapter Title

How to Gamify LPAs to Boost

Participation
Gamification makes work more engaging by incorporating
Tip

elements of games, leveraging proven principles of

motivation to boost performance.
Manufacturers that use a mobile LPA platform can gamify
audits to boost audit participation—a key challenge with
these high-frequency audits. Gamification strategies to
consider include:
• Having different teams compete against each other
• Awarding badges for consistency
• Challenging individuals to beat company goals and/or
industry benchmarks
• Updating line-side visual management systems with
rankings, resetting them periodically so the same people
aren’t always at the top of the leaderboard
• Creating a recognition program, whether it’s a gift card,
company swag or just giving kudos in team meetings
As an example, the EASE platform lets users earn
achievement badges based on the number of audits the
employee completes. Monitoring audit duration is key to
ensure people aren’t just pencil-whipping audits.

70
Key Takeaways:
1. LPA software addresses the main challenges of audit administration
and reporting

2. Key ROI factors include reducing quality escapes, defects and costs

3. Manufacturers use LPA software to improve quality metrics and

customer satisfaction

4. Cloud-based platforms provide security and reliability, while mobile

device management (MDM) tools protect plant floor data

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 With the paper cards, we’d have
to go to the spreadsheet, type
in the words, take a picture and
scan it, print it and laminate it.
Maintaining the card decks was
cumbersome, and the process
didn’t make it easy to clarify
confusing questions.
–John Rose, Quality Systems Manager, Jacobs Vehicle Systems

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 CHAPTER 15

How to Improve LPA Checklists

with LPA Software
 CHAPTER 15: How to Improve LPA Checklists with LPA Software

Checklists and questions are essential to getting results Uploading Photos

with LPAs, and an area where mobile software can provide When it comes to conducting audits, pictures can provide added
a distinct advantage over paper-based processes. clarity compared with lengthy descriptions that are confusing and
time-consuming to understand. Steps where uploading photos to the
audit system can help include:
Customizing Question Scope
• Audit questions: Adding a photo to show what represents “good”
A key function of LPA software is the ability to customize question versus “acceptable” and “unacceptable” allows auditors to more
scope, allowing you to create questions that are specific to a group or quickly determine whether a process conforms to standards.
set of equipment.
• Audit findings: Taking a photo of existing conditions helps those
For instance, an injection molder might have 80% of presses using the responsible for correcting problems see exactly what the issue
same method for rejecting bad parts, while the remaining 20% use a is, rather than trying to figure it out from an auditor’s written
different method. This manufacturer could create separate questions description. Annotating these photos during the audit to further call
for each type of press, enabling them to better detect potential out what the viewer should be looking at can provide more clarity.
process errors that cause production defects.
• Mitigation and corrective action: Taking a photo of a completed
mitigation or conditions after a corrective action helps supervisors
verify that the correction was completed correctly.

Randomizing Questions
Photo Verification Pencil-whipping or checking the box is a top problem with LPAs,
especially when manufacturers use a generic checklist for every area
One manufacturer
of the plant. It’s only natural for people to run on autopilot after seeing
requires auditors to
Tip

the same checklist multiple times, which is why randomizing questions

include a photo with
can help reduce pencil-whipping.
each audit to verify that
the audit took place

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 CHAPTER 15: How to Improve LPA Checklists with LPA Software

Centralizing Audits
Use a Dummy Question Depending on the organization, a manufacturer may need to complete
a variety of different audit types, from LPAs to safety audits to 5S
Some manufacturers incorporate a dummy
audits. Being able to house all of your questions in a single centralized
question with each audit to make sure auditors
Tip

library can help you uncover larger trends, such as if a particular

are paying attention and not just rushing through
department or work area has multiple high-risk findings.
audits marking every question as passed. This
question might ask something like, “Is Daisy
Duck Mickey Mouse’s girlfriend?” The result is a Custom Question Tags
quick way to identify when someone isn’t paying Creating customized question tags or categories can improve
attention. quality of reporting, calling attention to systemic weaknesses where
management needs to take action.

Question randomization also allows you to ask questions at differing Create Questions for Different Layers
frequencies. This helps ensure you have adequate coverage of your One strategy used by some manufacturers is to
entire question library. It can also be helpful in terms of customizing have different layers ask different questions.

Tip
checklists by layer. For instance, you might have Layer 1 team leads
check more routine items while Layer 3 plant managers check high-
risk items from recent complaints.

“If something gets tedious, and it’s right most of the time, let the
supervisor worry about verifying it, or randomize it in layer 2,” says
Best Practice Murray Sittsamer of The Luminous Group. “Don’t have the plant
manager look at that every time he or she is going out. Keep it fresh.”
A centralized audit platform allows you to
He urges people to remember that LPAs won’t catch everything—
incorporate different types of questions in a
it’s a strategy to make sure people on the front line are paying
single audit, improving efficiency while ensuring attention to what’s most important.
greater coverage for required audits.

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 CHAPTER #: Chapter Title

Key Takeaways:
1. Customize question scope to
target questions to a specific
equipment piece or type

2. Require auditors to upload

a photo to document non-
conformances or corrective
action items

3. Question randomization can help

prevent pencil-whipped audits

4. Store safety and 5S questions

in your library to keep tabs on all
Learn More
your audits
For more detail on what to look for in an audit platform,
read our Buyer’s Guide Checklist for Mobile LPA Software
5. Use focus question tags at
increased frequency to help
identify systemic risks

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 CHAPTER 16

LPA Dashboards for Management:

Getting a Return on Your Effort
 CHAPTER 16: LPA Dashboards for Management: Getting a Return on Your Effort

Dashboarding is a widely accepted best practice in Using Pareto Charts

quality management for making measurable progress
A Pareto chart is a bar chart that
in key performance indicators (KPIs). In this chapter, plots the cost or frequency of different
we look at best practices around: problems according to their relative

Tip
• What types of metrics plants should review significance. The bars show the
• How to measure LPA effectiveness frequency of issues, while the line
• How often to monitor dashboards shows the cumulative percentage
moving from left to right.
• What dashboards look like for different levels of the organization
Effective use of dashboard metrics allows you to better allocate In the below example, process
resources where they are most needed. documentation errors are the most
frequent, followed by people and
Quality Metrics to Review equipment issues, respectively. Using
First and foremost, management should pay special attention to work this type of chart output allows
areas or processes with a high number of audit findings. You’ll also software users to quickly identify areas
want to assess whether there are repeat issues that could point to with frequent problems that are most
systemic problems.
likely to be driving defects, complaints
Metrics to consider adding to your dashboard here include: and costs.
• Findings by location
• Top 10 findings 40
Failures by Category
1
37

• Question pass rate

35 0.9
35

0.8
30
0.7

25
0.6
21 51%
49%

Total
20 45% 0.5
18

0.4
15 34%
13
26% 11 0.3
10
0.2
13%
5 4
0.1

0 0
Process Doc Error People Equipment Process Error Safety Cleanliness Quality
Category

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In two plants now, we’ve
been able to step in when
leading indicators went
down, before there was any
change to lagging metrics
like defects or complaints.
–Senior Manager, Global Tire Manufacturer

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 CHAPTER 16: LPA Dashboards for Management: Getting a Return on Your Effort

LPA System Metrics Reviewing Dashboard Data

It’s important also to use dashboards to monitor the health of your The frequency of monitoring LPA dashboard data, as well as the data
LPA program as a whole. You know it’s time to go back to the beginning points monitored, should correspond with the individual’s level in the
and figure out where the problem is when these types of metrics organization.
begin to slip: For example, Layer 1 team leads need to be concerned with failed
• Audit completion rates items in their process area, as well as whether their team members
have completed their scheduled audits. With more audits to stay
• On-time audit completion
on top of, Layer 1 should look at the local area data and team
• Audit pass rates conformance on a daily basis.
• Overdue corrective actions A Layer 2 quality manager, should look at data related to specific
Ultimately, the goal is to measure if people are doing their audits and issues and develop action plans for continuous improvement on a daily
follow-up action items. If not, the health of the LPA system as a whole to weekly basis.
is at risk and needs to be assessed. Finally, a Layer 3 plant manager should look at key trend data and LPA
system data on a weekly basis at a cross-functional team meeting.

Enterprise-Level LPA Metrics to Track

Real Life:
A recent LNS Research survey shows a full 37% of quality leaders
What Are Realistic Audit Completion Rates?
have trouble achieving quality goals due to an inability to effectively
One manufacturer we spoke with suggests a 90% measure quality metrics.9
audit completion rate is preferable to 100%, which
In the context of LPAs, one important aspect to consider is that it’s
may only happen when people are pencil-whipping
not just plant managers who should be tracking plant level metrics.
their audits.
Directors and those at the VP level should also be looking at LPA data
“The only thing worse than no data is bad data. If from an enterprise level.
we’re above 95% completion, I’m not as confident
Below we discuss four enterprise-level LPA metrics to track, and what
in the quality of the audits,” he says. “But if people
they can tell leaders about how to improve quality.
are emailing about having to miss audits, then that
means they’re engaged in the process.”

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 CHAPTER 16: LPA Dashboards for Management: Getting a Return on Your Effort

Non-conformance Rate
Counteracting Pencil-Whipping Non-conformance rate is the number of audits completed that lead to
non-conformances or corrective actions. This metric will tell you how
If you’re worried about people ignoring non-
effectively plants utilize LPA data, since a plant having a high non-
conformances to make pass rates look better,
Tip

conformance rate may indicate systemic quality issues.

consider just reporting this metric at a high level
rather than making it part of a plant’s official
targets. Predictive Analytics
Manufacturers can use time-series analysis to predict what metrics
such as audit completion rate, pass rate and non-conformance rate will
look like in the future. Applying this to leading metrics that correlate
Audit Completion and Pass Rates
with KPIs is a good way to identify emerging risks that require
Leaders should look to see where audit completion rates are high intervention.
versus ones that are struggling with low completion. A high number
Lagging metrics are outcome-focused numbers like defect rates, scrap
of defects alongside high audit pass rates may indicate pencil-whipped
and quality costs. In essence, these numbers tell you how you have
audits that require further investigation. Conversely, minimal defects
already performed.
with high audit completion and pass rates may indicate a plant with
best practices that are useful elsewhere in the organization. Leading metrics are input-focused numbers like audit completion rates
and number of overdue corrective actions. These numbers tell you
Number of Non-conformances by Category where you might have a problem in the future, such as when falling
completion rates predict a corresponding drop in yield.
Companies should consider tracking non-conformances by categories
that include:
• Process or work area
Best Practice
• Types of questions failed
• Type of non-conformance such as documentation, scrap or
Becoming truly proactive about quality rather
tool calibration than just reacting to problems demands that
• Common corrective actions manufacturers develop leading indicators that
• Quality vs. safety findings
highlight emerging risks.

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 CHAPTER 16: LPA Dashboards for Management: Getting a Return on Your Effort

The key is to analyze your own specific metrics and identify which Real Life:
indicators are predictive of problems for your organization. “The way you manage a single tread
line isn’t how you do audits on
Customizing Dashboards for Users hundreds of curing presses. Each
Each individual will have their own spin on metrics to watch that department manager has their own
corresponds to the responsibilities and goals in their production lines spin on how they look at the data.”
or work areas. Leadership should also utilize a multi-plant view for a –EASE customer, global automotive
high-level look at risks and quality performance. supplier

Different departments will also have different metrics on their

dashboards, including areas like:
• Safety
• Quality
• Production
• Maintenance

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 CHAPTER 16: LPA Dashboards for Management: Getting a Return on Your Effort

Key Takeaways:
1. Use LPA dashboards to track
findings and LPA health

2. Pareto charts help assess top

sources of problems

3. Develop leading indicators to

proactively identify problems

Learn More
For more information, read our blog post on
Quick Guide to Leading Indicators

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 CHAPTER 17

The Role of LPAs in Achieving

Higher Levels of Quality Maturity
 CHAPTER 17: The Role of LPAs in Achieving Higher Levels of Quality Maturity

Maturity models are a framework for assessing where Level 0: Operator-Driven

your organization stands in terms of performance and The most basic link in the manufacturing chain is
where to make changes to significantly improve quality. operator behavior. When an operator makes the
right decision, they protect the company. When they
Here we present a maturity model that highlights the role
don’t, the organization is at risk of a quality escape.
of LPAs in achieving progressively higher levels of quality.
Characteristics of companies at this level:
Companies just starting out with LPAs will typically be on the lower
• Operator behavior drives quality performance
end of the spectrum, while those with more experience may be at
a higher level. No matter where you are, there is always room for • Lack of protections like audits for customers and the company
improvement, and your goal should be to refine your process and • Frequent quality issues, including repeat problems
move up the scale.
It’s important to remember that maturity is a journey, not an event.
Nor is it a policy or corporate project-of-the-month, and just setting
a goal to become best-in-class isn’t enough to get there. Achieving
higher levels of maturity—and the benefits to quality and profitability
that come with it—require sustained effort and commitment of
resources.

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 CHAPTER 17: The Role of LPAs in Achieving Higher Levels of Quality Maturity

Level 1: Containment Level 2: Corrections

Containment is the second level of maturity, and The second maturity level, focused on correcting
one that companies reach when they begin to problems, is the minimum required for serial
implement basic measures to protect customers. production. For example, an organization might start
For example, organizations may inspect final looking at how they set up manufacturing lines or
products, or periodically verify that people are how they train operators, seeking to address repeat
operating machinery correctly. In the context issues that impact quality.
of audits, this level represents the earliest At this level, companies are moving towards process
signs of LPAs. audits, even if they do not yet involve multiple layers
Manufacturers at this level usually don’t have strict requirements of the organization. Where LPAs are in place, they
around audits, or may be suppliers at the Tier II level and deeper are typically limited to specific areas and manual
within the supply chain. tracking methods like spreadsheets and paper
checklists.
Characteristics of companies at this level:
• Basic level of protections for customers and the company Characteristics of companies at this level:

• Identified problems are addressed to limit their impact and extent • Identification of repeat or systemic issues

• Organic development of shop floor audits to verify key quality • Development of methods to prevent problems, including process
measures audits and error-proofing devices
• Paper-based auditing systems most prevalent, with generic
checklists for all areas
• LPAs are viewed as a waste of time

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Level 3: Prevention Level 4: Improvement

Organizations reach the Prevention level when The next level is Improvement, where companies
they understand that most of the problems they start to recognize commonalities among quality
experience originate with product and process issues across different plants or work areas. Here
design. From this perspective, companies recognize organizations start to do the work it takes to design
that problems are caused by something more products and processes without failures from the
fundamental than operator error or random outset.
accidents. Most companies that have reached this level will
This level is also associated with a realization that have at least two plants and one to two technology
paper-based tracking systems can’t deliver the centers. Those organizations with an LPA system
information needed to make permanent corrections. are typically using it across the board to spot
They may be collecting a lot of data, but the volume patterns among locations and products to pinpoint
of unstructured information distributed across so underlying quality issues they need to design out of
many files makes it impossible to fully use it. their setup.

Characteristics of companies at this level: Characteristics of companies at this level:

• Focused on design and process inputs • Standardization exists not just across plants,
but also across product lines
• Prevention tools like control plans and FMEAs aligned with audits
• All plants are collecting LPA data
• Moving toward automated systems and specialized LPA software
• Focus on processing LPA data in a way to enable
• LPAs are connected to problem-solving, which is becoming more
decision-making and root cause analysis
effective
• LPAs are used by design team to make sure
products are manufactured correctly, rather than
just for operations to check their own work

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 CHAPTER 17: The Role of LPAs in Achieving Higher Levels of Quality Maturity

Level 5: Culture of Zero Defects

This level is the pinnacle of quality maturity, and
what companies should ultimately strive for. More
than just looking at current operations, these
organizations are looking at products they might
have in the future (for example, electric vehicles
and components) and designing products with zero
failure in mind. Many industries haven’t reached
this level yet, but it is a possibility that should be
everyone’s end goal.

Characteristics of companies at this level:

• Products have zero failures from the outset
• Focus is on information-sharing across the
industry rather than hiding information
• Critical when failure is not an option (such as
building the International Space Station)
• LPAs sustain excellence

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Closing Thoughts
Global manufacturing leaders have proven that Writing LPA questions, managing findings, completing a high volume
LPAs can significantly reduce production defects, of audits and accessing data are all critical challenges for companies
that conduct LPAs. Digital transformation and Industry 4.0 hold the
including ones that can’t be identified by product key to solving these challenges, helping manufacturers achieve the
inspections. By focusing on process inputs— full potential of LPAs without the intensive resources required for
rather than downstream in the manufacturing paper and spreadsheet systems.
process—organizations can identify and eliminate Implementing LPAs is a multi-step process, and it’s a decision that
process errors that drive up complaints and requires buy-in from multiple levels of an organization. Done right,
however, these audits can have a transformative impact on quality,
quality costs.
brand reputation and profitability—all while making products better
and safer for customers.

According to an Applied Logistics study, a full 75% of manufacturing defects

result from non-conformance with processes, which is why LPA programs are
so effective at reducing quality costs.”
–Eric Stoop, CEO, Ease Inc.
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 About EASE
EASE is the innovative mobile platform leading EASE Delivers:
manufacturers use to simplify how they administer,
• Significant reduction in audit labor time and cost
conduct and respond to plant floor audits.
• Early risk identification leading to reduced scrap, rework, returns and
With best-in-class support for layered process audits, plus audits increased safety and performance
for safety, 5S and more – you can drastically reduce labor costs and • Unparalleled purpose-built user experience for plant floor audits
drive higher performance while increasing audit value.
• Innovative mobile app (iOS and Android) with robust offline support
Leading automotive, aerospace and manufacturing organizations
• Issue tracking and management
around the globe depend on Ease’s enterprise scale, expertise and
customer-centricity. Ease is a privately held company based in • Recurring multi-layer audit scheduling and reminders
Mission Viejo, California. To learn more, please visit www.​e ase.​io.​ • And much more...

Cool
Vendor

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 CHAPTER #: Chapter Title

Looking for engaged employees, satisfied customers and

audit programs that drive real business value?
It’s time for EASE.
• Native Support for • Real-time Reporting
Layered Process Audits, and Customizable
Safety, 5S and More Dashboards
• Mobile Auditing Apps (iOS • Attach and Annotate
and Android) Pictures
• Advanced Offline Mobile • Question Reference
Audit Support Images and Documents
• Smart Audit Scheduling • Track Open Mitigations
(Including by Layer) and Corrective Actions
• Question Library and • Localization in 20+
Document Management Languages and Growing

EASE – Insights that Drive Performance™

To learn more or request a free trial of EASE visit ease.io
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 References
1 Sittsamer, M.J., Oxley, M.R. and O’Hara, W., Quality Progress,
Turbocharge Your Preventive Action System
2 Sittsamer, M.J, and Leslie, L., Best Practices to Make Layered
Process Audits Meaningful
3 McElroy, D.I., Quality Progress, Get at the Core
4 Thomasnet, Downtime Costs Automotive Industry $22k/Minute:
https://news.thomasnet.com/companystory/downtime-costs-auto-
industry-22k-minute-survey-481017#register
5 American Society for Quality (ASQ), The Audit Report: Layered
Process Audits Drive a Culture of Excellence
6 American Society for Quality (ASQ), Cost of Quality
7 Supply and Demand Chain Executive, Metric of the Month: Reduce
Scrap and Rework Costs
8 Warranty Week, Warranty Claims Rates by Industry
9 LNS Research, 7 Reasons to Insist on Accurate, Real-Time Reporting:
https://blog.lnsresearch.com/7-reasons-to-insist-on-accurate-real-
time-quality-data

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