Methodologies: Lean management is customer oriented. There are five basic principles of lean management (Arnheiter & Maleyeff, 2005):
• Understanding customer value
• Value stream analysis
The main elements contributing to the elimination of non-value-added activities are the following: excess production, excess processing, delays, transport, inventory, defects and movement. A variety of approaches are available for reducing or eliminating waste. These approaches include value stream analysis, total productive maintenance, Kaizen costing and cost analysis, engineering and change management, and document management. Tools used include Kanban Cards for pull through the supply chain and the closely related JIT system for inventory reduction.
Lean Six Sigma is a philosophy of doing business with focus on reducing or eliminating defects in conjunction with improving the flow in the value stream. Lean Six Sigma combines the two most important improvement trends of our time: reducing the variation of the process and making work better (using Six Sigma methodology) as well as making work faster and more efficient (using Lean Manufacturing principles).
Six Sigma and lean manufacturing are toolkits to reduce waste in any kind of business processes. Lean is an approach that seeks to improve flow in the...
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...that internal auditing take a proactive approach rather than reactive approach when auditing quality management, for this reason, internal auditors must be familiar with the concept of quality management and plan their audit in a way that detects deficiencies in the design and implementation of quality policy and procedures and related system. For example, under the traditional auditing, internal auditors can identify and quantify loss due to waste and report the finding to management, however under modern internal auditing a thorough analysis - which require understanding of quality management theories and concepts - in order to add value and ensure that the appropriate corrective actions is taken.
Finally, as discussed in the last section, the concept of quality management is applicable to the internal auditing as well and is required as part of The IIA’s Standards.
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