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ISO Update aims to provide information, resources, and updates around the Standards and Certification industry. We believe that organizational standards can help businesses of all shapes and sizes become more efficient and successful on a local, federal, or global scale.
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Environmental Performance Indicators provide organizations with a tool for measuring, evaluating and controlling their performance. These quantifiable metrics reflect the performance of an organization in the context of achieving its environmental goals and objectives.

They are also useful in illustrating environmental improvements, identifying market opportunities, providing essential data for environmental reports and statements, providing feedback to motivate members of the organization and to support the implementation of the ISO 14001 standard.

However, not all performance indicators are useful to every organization. These must be identified and measured considering the nature and context of the organization and its specific targets and goals.

Even though there’s not a set of performance indicators that is right for every ISO 14001 management system, there are performance indicators that can be commonly seen in many environmental performance indicator reports. Some of these are:

Operational Performance Indicators

These measure environmental impact caused by an organization’s main activities.

Emissions to air

  • Greenhouse Gases
  • Acid Rain
  • Eutrophication and Smog Precursors
  • Dust and Particles
  • Ozone Depleting Substances
  • Volatile Organic Compounds
  • Metal emissions to air Emissions to water
  • Nutrients and Organic Pollutants
  • Metal emissions to water

Emissions to land

  • Pesticides and Fertilisers
  • Metal emissions to land
  • Acids and Organic Pollutants
  • Waste (Landfill, Incinerated and Recycled)
  • Radioactive Waste

Resource use

  • Water Use and Abstraction
  • Energy use (Natural Gas, Oil, Coal, other)
  • Minerals
  • Aggregates
  • Forestry

Environmental Management Performance Indicators

These reflect organizational actions management is taking to minimize their environmental impact. These indicators serve as internal control measures and information, but do not provide valid information on the real environmental performance of an organization. These performance indicators should not be used exclusively for the evaluation of environmental performance, but as a support in evaluating the actions taken within the environmental management system. Some of these are:

  • Number of sites that have environmental management systems
  • Number of ISO14001 certification
  • Number of training sessions regarding environmental preservation and of people attended
  • Number of environmental audits by kinds (internal and external environmental audits)

Every organization is different and each one needs to carefully examine which environmental performance indicator suits it best. These indicators should summarize extensive environmental data to a limited number of significant key information points and ensure rapid assessment of the organization’s main improvements and weaknesses in environmental protection. This information should be comparable from year to year or period to period, allowing unfavorable trends to be quickly detected in order for timely actions to be taken to correct and improve the organisation’s environmental performance.

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ISO 45001 - Who Needs It? - ISOUpdate.com

Performance indicators for an Occupational Health and Safety (OH&S) management system are an important tool used by organizations to measure the effectiveness of their programs in reducing potential and actual OH&S risks. These performance indicators also provide information for organizations to:

  • Evaluate their OH&S management system.
  • Identify improvement opportunities.
  • Adapt objectives, goals and strategies.
  • Raise awareness among decision-makers and everyone in an organization about the benefits of OH&S programs.
  • Take timely preventive measures.
  • Communicate ideas, thoughts and values.

Performance indicators should be specific, easy to obtain, consistent over time, accurate and transparent in order to serve as a valuable tool in improving an organization’s OH&S performance. There are no fixed performance indicators that must be used by all organizations; however, below, a number of typical performance indicators of an OHSAS 18001 management system are mentioned.

Performance indicators for OHSAS 18001 communication and leadership management:

  • Percentage of management planned visits to the job site carried out on a specific time frame.
  • Degree of management commitment, measured through surveys in the workplace.
  • Percentage of planned formal reviews of the OH&S management system programs conducted over a period of time.
  • The percentage of training activities carried out vs. those that were planned.
  • The percentage of investigations of accidents / incidents / nonconformities completed vs. those that were required.

Performance indicators for measurements of the effects of accidental losses:

  • Number of accidents.
  • Number of days lost to illness.
  • Number of days lost due to accidents.
  • Percentage of workers with occupational diseases.

Performance indicators for basic and immediate causes of accidents:

  • Percentage of accidents caused by getting trapped.
  • Percentage of accidents caused by strokes.
  • Percentage of accidents caused by cuts.
  • Percentage of accidents caused by falls.

Performance indicators for OH&S resources management:

  • Level of funding provided to the OH&S programs as a percentage of operational funding.
  • Percentage of purchase orders with specific OH&S requirements.
  • OH&S approved budget against the actual budget spent.

Every organization is different and each should take the necessary time to define the performance indicators that will serve as tools in improving their OH&S management system; ones that will help management make sound decisions to maintain, improve and innovate their processes and keep their workers and everyone involved in their activities safe.

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In the past, most auditors used a formal clause approach when auditing a management system; today, many auditors are leaving behind the checklist that served as a useful guide to identify the conformance with applicable requirements, and are now using a process approach to perform their audits.

Some aspects that give importance to this approach are the following:

  1. Process Approach focuses on results, not on procedures.

    Management systems are not just a set of documented procedures; they are an active system of processes that address business risks and its applicable requirements. By reviewing the process and not just the procedures, it becomes easier to evaluate the results of the process and how effective these really are.

  2. Process Approach determines the effectiveness of the management system.

    Audits conducted using a process approach provide information on whether performance targets are being met, they identify opportunities to improve performance through better process control and determines how processes can be more effective and efficient in meeting the system’s applicable requirements.

  3. Process Approach evaluates links between departments and processes.

    Interactions between the processes of an organization can often be complex, resulting in a network of interdependent processes where the output of a process can be the input of another. By following the flow and continued work throughout the organization, it’s possible to review and evaluate the sequence and interactions of processes, their inputs and outputs and the effectiveness of these interactions.

  4. Process Approach determines whether the operations are under control and whether the controls are effective.

    The process approach not only focuses on whether controls are in place but also on how efficient these really are in maintaining and improving the effectiveness of the process and the system.

  5. Process Approach helps determine the depth of the problems through the organization.

    When a problem is found, it is easier to determine the severity of its impact on the system by reviewing the entire process and it’s interactions with other processes.

  6. Process Approach focuses on the benefits of correcting non-conformities related to improving organizational effectiveness.

    Process based audits help organizations in evaluating the effectiveness of their processes. It serves as a tool to identify weaknesses and opportunities to improve the existing connections between policy, requirements, performance, objectives and goals, which will ultimately contribute to the overall success of an organization.

Management systems are a complex set of interactions between different activities carried out in different areas of an organization. When these activities are viewed as being part of a process, it is easier to understand these interactions and how they go beyond the boundaries of a specific functional unit. Also, by auditing an entire process, the people involved in it will have a greater understanding of how their activities influence the overall effectiveness of the organization’s management system.

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Measuring Supplier Performance

Organizations that have contracted work, services or goods from a supplier must have a way of knowing if what they’re getting is what they paid for. Measuring supplier performance is a common good practice implemented by many organizations in order to identify in what extent are supplier’s meeting their obligations, facilitate performance improvement and improve relationships between both parties.

There are many tools and techniques for measuring supplier performance. This process requires time and resources, and organizations need to carefully consider which method adapts best to its circumstances and needs. Below, the main factors to take into account when carrying out this process are briefly described.

Determine what is good performance

The first step to measuring performance is to determine which activities are critical for the success of the contract and what are the characteristics of good supplier performance. From this understanding of the dimensions of a good performance, Key Performance Indicators (KPIs) should be developed.

Develop KPIs

KPIs should meet the following criteria:

  • Completeness: all significant aspects of the goods/service should be included in the measurement of performance.
  • Clarity: both parties should have a clear understanding of the performance measures to be used.
  • Measurability: performance requirements should be expressed in measurable terms and should be based on data which it is possible to gather.
  • Focus: specifications should be focused on the agency’s procurement objectives (which translate to outputs and outcomes), not on processes.

Some of the aspects of the contract that are usually measured are:

  • On-time delivery.
  • Correct quantity.
  • Number of customer complaints.
  • Product/service cost.
  • Service/product quality (against agreed terms).

Determine which measurement approach to use

There are many approaches for measuring supplier performance. Some are more complex than others and they all have their advantages and disadvantages. Here, some commonly used approaches will be mentioned:

  • Categorical system: this method is easy to use but it is subjective. The aspects being measured are weighted equally and it relies on a person’s perception about performance and not on quantitative data.
  • Weighted-point method: this method assigns a weight to each aspect being measured depending on its importance. This is considered a reliable and flexible method.
  • Cost-based system: with this method it is possible to quantify the additional costs incurred if a supplier fails to perform as expected. This is a very objective but complex method.

This process is usually time consuming for many organizations, especially for those that have a large number of suppliers along their supply chain. A well carried out process will ensure useful and objective results that will serve to improve performance and business relationships between an organization and its supplier(s).

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External Audits

An audit is a process performed to gather evidence that support an organization’s compliance to specific requirements. Audits can be Internal (first party audits) or External (second and third party audits). The differences between the two types of external audits generates some confusions that we will clarify in this article.

The main differences rely on the interests between the organization performing the audit and the one being audited, and in the purpose of the audit.

  • Second party audits are external audits that occur when one organization audits another with which it either has, or is going to have, a contract or agreement for the supply of goods or services. They can also be done by regulators or any other external party that has a formal interest in an organization. These are usually done to verify operating conditions of a supplier to ensure it meets applicable requirements.
  • Third party audits are also external audits that are done independent of the organization being audited. They are performed by independent organizations such as registrars (certification bodies) or regulators, usually for certification, registration or verification purposes.

The reasons why these are performed also serves to set them apart.

Second party audits are carried out to:

  • ™Help customers ensure that suppliers have proper capabilities and controls in place.
  • ™Improve communication between both organizations.
  • Promote a clear understanding of the customer’s expectations.
  • ™Provide a path for the transfer of knowledge and good practices between both organizations.
  • Build customer confidence that the supplier will comply with legal and other applicable requirements.
  • Create good and mutually beneficial working relationships.

Third party audits are performed to:

  • Verify compliance to a specific standard or regulation.
  • Demonstrate compliance with all the requirements of a standard such as ISO 9001, ISO 14001, OHSAS 18001 to customers and other stakeholders.
  • Give confidence to customers that the best business practices are being implemented regarding quality, environmental or other management systems.

As mentioned before a second party audit is usually done by a customer and a supplier that wish to establish a business relationship and, in some cases, the audit is one of the requirements necessary to seal the deal.

On the other hand, third party audits can be mandatory (depending on the standard/regulation and the industry sector) or they can be voluntary. In both cases, the organization wishing to be audited will have to contract the services of a qualified organization to perform an independent and objective audit.

Both types of audits are done prior to executing a contract (Second party) or obtaining a certification/registration (Third party) and they both require periodic surveillance audits for verification purposes.

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Quality Control and Quality Assurance
Quality Control and Quality Assurance are both players of the same team and it is not possible to guarantee customer satisfaction if either one is missing.

Quality Control and Quality Assurance are both aspects of an organization’s quality management system (QMS), and even though they are closely related concepts, they are different in many ways. Understanding their differences is fundamental for any organization to effectively manage its resources and processes in order to deliver quality products and services.

To start, one of their main differences is that Quality Assurance is a prevention strategy oriented to prevent defects and Quality Control is a detection strategy oriented to detect defects. Here, an explanation of some of their differences is presented.

Focus of Quality Control and Quality Assurance:

  • Quality Assurance aims to prevent defects with a focus on the process that produces the product or service; thus it is process oriented.
  • Quality Control aims to detect (and correct) defects in the finished product, which makes it product oriented.

Goal of Quality Control and Quality Assurance:

  • The goal of Quality Assurance is to develop processes and procedures that will ensure that quality products and services are produced.
  • The goal of Quality Control is to check the products and services for defects that may have arisen during their development in order to deliver defect-free products or services to customers.

How Quality Control and Quality Assurance are Conducted:

  • Quality Assurance is conducted by establishing and defining standards and methodologies that must be followed during a process to ensure products and services meet customer requirements.
  • Quality Control is carried out by conducting tests and inspections to detect errors and flaws in products or services.

When Quality Control and Quality Assurance are Conducted:

  • Quality Assurance is a proactive process that takes place before the product or service is produced or delivered.
  • Quality Control is a reactive process that is performed during the manufacturing process and after the products are produced.

Despite their differences, Quality Assurance and Quality Control are both players of the same team and it is not possible to guarantee customer satisfaction if either one is missing. Achieving success requires both; if only Quality Assurance is applied, there will be no way of knowing if the procedures and processes are producing the expected outcomes. On the other hand, if only Quality Control is conducted an organization will not have a way of making repeatable and reliable results.

Quality is ensured by an organization performing the right tasks in the right way and by making sure that their efforts have produced the expected results. Quality Assurance and Quality Control complement each other and both these processes provide the necessary information for the continuous improvement of a QMS that meets the requirements of an organization’s customers.

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There are different approaches to auditing; these can be performed by clause, department, tasks, etc. The most commonly used by auditors is the clause approach,  where the auditor goes by each clause, usually with a checklist, searching for evidence of requirement conformance and writing nonconformities (minors or majors) if any are found.

These approaches tend to focus mainly on procedures and not on the performance, outcomes and results of the organization’s processes. Hence, audits result in the correction of minor problems and not in the improvement of the system and its processes.

Also Read: Understanding the Process Approach to Auditing

Also Read: Get Your Company Ready for the ISO Implementation Process



The process approach to auditing focuses on reviewing the sequence and interaction of processes and their inputs and outputs. It analyzes the management system not just as if it were a set of documented procedures, but rather as an active system of processes that addresses business risk and its applicable requirements. The main elements that a process-approach audit reviews are:

  • Process Owners
  • Inputs and Outputs of the process
  • Resources
  • Methods/ Procedures/ Instructions
  • Controls/ Measurements/ Metrics
  • Documents/Records
  • Efficiencies/ Effectiveness

In order to take this approach, it is required to plan and perform the audits so they are based on the processes that achieve organization’s objectives. The audit needs to be conducted through business processes and across department boundaries; some of the processes that need to be audited are:

  • Business management
  • Marketing and sales
  • Resource management
  • Purchasing
  • Product / service production processes

Audits conducted with a process approach provide information on whether performance targets are being met, they identify opportunities for improving performance through a better control of processes and determine how processes can be more effective and efficient in meeting the applicable requirements. Some of the aspects that make this approach a valuable one are:

  • It focuses on results, not on procedures.
  • Determines the management system’s effectiveness.
  • Evaluates the outcomes and results of the system.
  • Evaluates linkages between departments and processes.
  • Follows flow of work throughout organization.
  • Determines if operations are under control and if controls are effective.
  • Allows judgment on significance of findings.
  • Helps determine depth of problems across organization.
  • Focuses on benefits of correcting nonconformities related to improving organizational effectiveness.

Organizations that wish to comply with a standard have to meet the requirements established in it, but in some cases, just meeting these requirements does not necessarily add value to the organization. In order for an organization to be competitive and successful, its operational processes must work together in achieving its goals and objectives. A process based audit assists organizations in assessing the effectiveness of these processes; it serves as a tool to identify weaknesses and opportunities to improve the connections between policy, requirements, performance, objectives and targets, which will ultimately contribute to an organization’s overall success.

Also Read: Understanding the Process Approach to Auditing

Also Read: Get Your Company Ready for the ISO Implementation Process



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4 Steps to an Effective Internal Audit - ISOUpdate.com

ISO 9001 and 9004 are both part of the ISO 9000 family of standards. These standards, even though they’re both about quality management systems (QMS), they have some important aspects that differentiate them. Many organizations, when seeking to establish or improve a QMS, tend to get confused about which standard to use or if they should use both. In exploring ISO 9001 vs 9004, the main differences between them will be highlighted.

Purpose.

  • ISO 9001 provides a framework for a systematic approach to managing an organization’s processes so that their products or services are consistent and meet client expectations. It also ensures the organization meets applicable laws, regulations and other requirements.
  • The ISO 9004 standard is intended to help organizations extend the benefits of their QMS to stakeholders and all other interested parties, helping to give sustained success.
Exploring ISO 9001 vs 9004
Exploring ISO 9001 vs 9004: These standards complement each other, so they can be used simultaneously by an organization, and they can also be used independently.

Certification.

  • ISO 9001 is a requirements document. It is the only ISO 9000 family standard which an organization can be certified against in order to demonstrate conformance to its requirements.
  • On the other hand, ISO 9004 is a guidance document on how to achieve continuous improvement to get excellence for the organization. It is not intended for certification.

Focus.

  • ISO 9001 standard’s main focus is on customer requirements. This standard focuses on assuring conformance to defined customer requirements and ensure effective response to customer feedback.
  • ISO 9004 focuses mainly on meeting the requirements of customers and all other interested parties. It aims at balancing the needs of all stakeholders in order to achieve sustained success.

Continual Improvement.

  • In ISO 9001 continual improvement of the QMS is achieved mainly by performing management reviews, internal/external audits and corrective/preventive actions.
  • ISO 9004 promotes self-assessment in order for organizations to identify areas of strength or weakness and opportunities for either improvements or innovations, or both. It guides organizations on setting realistic and challenging improvement goals for their processes.

There are many other differences between both these standards; however, what is important to understand is that:

  • They are both intended to be used by any organization, regardless of their size and nature, to establish and improve their QMS;
  • ISO 9001 is intended for certification and ISO 9004 is not and;
  • ISO 9001 is focused mainly on customer satisfaction and ISO 9004 has a broader focus that include all stakeholders in order to achieve sustained success.

Many people believe that ISO 9004 is a guideline for the implementation of ISO 9001, however, this is not true. These standards complement each other, so they can be used simultaneously by an organization, and they can also be used independently. Some organizations decide to use ISO 9001 to establish and improve their QMS and then move on to ISO 9004 as a guide to obtain long term benefit from a more broad-based QMS.

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Many small and medium sized organizations (SMOs) have decided to implement a quality management system (QMS) based on the well-known standard ISO 9001. After reviewing the costs and benefits associated with the implementation and certification process, it is essential to take a look at what are the costs involved with maintaining a successful QMS.

The main costs associated with maintaining a QMS after ISO 9001 certification are:

  • Periodically checking the condition of measuring instruments for their repair, maintenance and calibration.Here, the costs depends on the nature of the organization and in the complexity of its processes estblished with ISO 9001. In most SMOs, processes tend to be simpler with less specialized and sophisticated machines, which reduces the resources needed to keep their machines and instruments working in good conditions.
  • Performing periodic internal QMS audits.Effective internal audits need to be planned, executed and their results monitored by qualified and experienced auditors for ISO 9001. For many SMOs, it can be time consuming and costly to train existing workers to perform these audits, that’s why it is highly recommended for these organizations to consider contracting out their internal audits in order to reduce the overall cost associated with this process.
  • Training and raising awareness on matters related to the ISO 9001 QMS such as customer satisfaction, quality and improvement.These activities are easier and less expensive to do by SMOs than by large enterprises. It is far less expensive to train 100, 50 or less workers than attempting to train 500, 1000 or more.
  • Surveillance and re-certification audits.Organizations have to cover the fees for the periodic surveillance audits by the certification body, and every three years a re-certification audit must be performed in order to maintain certification. It is important to note that certification is not mandatory; many organizations decide to implement ISO 9001 without seeking certification by an independent third party audit.
  • Continuous improvement.This is one of the most important factors that will determine if a QMS will survive and thrive. A QMS must be used to continuously improve the efficiency of an organization’s processes, reduce waste and meet customer requirements on a continuous basis. Continuous improvement involves investing in correcting problems that may arise and eliminating their recurrence (associated with Corrective actions) and preventing problems from ever occurring (Preventive actions). The costs associated with this process varies with each organization. However, SMOs have an advantage because there is less bureaucracy and the decision makers are closer to the processes that need improvement, thus there is a greater probability that resources will be assigned exactly where and when they are needed.

Despite the resources needed, by maintaining a successful QMS, SMOs will benefit from lowering costs by reducing waste, improving the efficiency of their processes and having more satisfied customers who will come back for more products or services, which will contribute to the organization’s overall success.

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Auditor Training

Risk-based thinking refers to thinking ahead of a situation (as in a chess game) to consider threats and opportunities and their possible effects on a specific goal, in order to take the necessary actions that will allow us to maintain or improve the desired results. Risk-based thinking is done by everyone automatically and in most cases, we are not even aware of it.

For an organization, risk-based thinking ensures risk is considered from the beginning and throughout a process, project,  plan or any strategic decision. Many consider risk in a negative sense; however, risk-based thinking can also help to identify opportunities, which can be considered to be the positive side of risk. By taking a risk-based thinking approach, an organization becomes proactive rather than purely reactive, preventing or reducing undesired effects and promoting continual improvement.

Organizations need to understand the overall level of risk embedded within their processes and activities. For all types of organizations, there is a need to understand the risks involved when seeking to achieve objectives and attain the desired results. This helps managers decide how they will minimize the effects of undesirable situations and also how to maximize the benefits of any opportunity.

Risk-based thinking therefore:

  • Establishes a proactive culture of improvement.
  • Assures consistency of quality of goods or services.
  • Builds a strong knowledge base.
  • Proactively improves operational efficiency and governance.
  • Improves management system performance and resilience.
  • Improves customer confidence and satisfaction.
  • Builds stakeholder confidence in the use of risk techniques.
  • Enables organizations to apply management system controls to analyze risk and minimize losses.
  • Enables organizations to respond to change effectively and protect their business as they grow.

Mastering risk-based thinking will allow any organization to fully understand their current situation, identify risks and opportunities and effectively manage them. When a risk-based thinking approach is considered throughout an organization the probability of achieving defined objectives increases, and the results are more likely to be consistent and long-lasting. Also, with this approach, customers can be confident that they will receive the expected product or service in the right time and at the right place.

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