1. The PEAR
Friday 2 November 2012

2. The process approach
To understand PEARs you must first understand the process approach.
This approach isn’t new to QMS and has been around since ISO9001:2000, this has been further developed with the advent of ISO9001:2008 and AS9100 Rev C.
Also AS9101D has developed the process further using the Process Effectiveness Assessment Report – The PEAR

3. Process Approach Model

4. Process Performance 0.2 Process approach (ISO9001:2008)
NOTE In addition, the methodology known as «Plan-Do-Check-Act» (PDCA) can be applied to all Processes. PDCA can be briefly described as follows.
Plan: establish the objectives and Processes necessary to deliver results in accordance with customer requirements and the organisation's policies.
Do: implement the Processes.
Check: monitor and measure Processes and Product against policies, objectives and requirements for the Product and report the results.
Act: take actions to continually improve Process performance.

5. What does 9101D say about the PEAR?
3.7 Process Effectiveness Assessment Report (PEAR)
A document stating results and providing evidence of determination on the effectiveness of a process.
The PEAR is also discussed in clauses and

6. What does 9101D say about the PEAR?
Process Management
The audit team should conduct quality management system audits using a method that focuses on process performance and effectiveness; this ensures that priority is given to the following:
reviewing the organization’s processes, their sequence and interactions, and performance against requirements and defined measures, with focus on processes that directly impact the customer;
reviewing the process based management techniques, including the examination of process controls (e.g., quality, takt time, cycle time, output effectiveness, control limits, process capability determination);
reviewing the process objectives/targets, with focus on areas where objectives/targets have not been achieved and on issues that have the greatest impact on the customer(s);
reviewing plans in place to ensure performance objectives/targets are met;
reviewing applicable corrective action plans in place where objectives/targets are not met; and
pursuing audit trails addressing customer concerns or requests for corrective actions, performance against objectives, and relevant process controls.

7. What does 9101D say about the PEAR?
Process Management (Cont.)
The audit team should pursue process based audit trails by following actual products, customer orders, and related documents (e.g., customer contracts, drawings, shop orders, inspection records) through the organization’s product realization and associated processes; verifying the interfaces between processes and the linked documentation requirements (see 9100-series standards clause 4.2); resource management (see 9100-series standards clause 6); and measurement, analysis, and improvement (see 9100-series standards clause 8).

8. What is a PEAR? 4.1.2.5 Process Performance and Effectiveness
The audit team should audit processes to sufficient depth and detail to evaluate if the organization’s processes are capable of meeting planned results and performance levels, including applicable customer specific targets.
NOTE 1: Key Performance Indicators (KPIs) are often used to identify organizational emphasis areas and acceptable performance levels.

9. What does 9101D say about the PEAR?
Process Performance and Effectiveness
The audit team should evaluate, as appropriate, that processes:
are identified and appropriately defined;
are sequenced and interactions are defined (see 9100-series standards, clause 4.1.b);
NOTE 2: Often the output from one process directly forms the input to the next (see 9100-series standards, clause 0.2 Process Approach).
have responsibilities assigned and responsible functions identified;
have relevant process controls defined;
have the availability of resources and information required to operate and support associated activities, including appropriate training and competency of personnel;
are monitored, measured, and analyzed against planned results (determination of process effectiveness);
have actions implemented to achieve planned results and to promote continual improvement; and
are effective in achieving the desired results (e.g., verify performance information available - percentage of nonconforming parts/products, percentage OTD).
NOTE 3: Planned results can be related to process outputs or the associated activities.

10. What is a PEAR
All third party auditors need to successfully complete the AATT Course which includes guidance on PEARs, there is also an IAQG online course covering PEARs and NCRs.
This will be included in the updated AATT course at the next revision which will coincide with the release of AS9101E

11. Process Effectiveness Assessment Report (PEAR)
During your audit the level of effectiveness will be recorded on the PEAR for each of your audited product realization processes.  (Enquiries/Contract Review/NPI/Design/Purchasing/Manufacturing)
Non-conformances will be raised against clauses 4.1.c and f on process that are not effective or are not supported by actions with defined responsibilities and timescales.

13. Process Performance
Therefore for a company to fully address AS9100 requirements:
All the Product Realisation processes and their interaction needs to be defined
Process performance indicators to measure process performance need to be defined
There must be a review process
If we take each of the above 13

14. Process Performance
Product Realisation processes and their interaction: 14

15. Defining and implementing your Process Performance KPI’s
A simple way to do this is with a KPI matrix, which can be used to identify the following:
Measurable
Frequency of measure
Owner (Department that owns the measure)
Responsible
Source of the data
Method of Calculation
Target
Type of Chart
Where reported 15

16. Defining and implementing your KPI’s
We have developed the business plan objectives and completed the KPI Matrix identify the following:
Measurable
Frequency of measure
Owner (Department that owns the measure)
Responsible
Source of the data
Method of Calculation
Target
Type of Chart
Where reported 16

17. KPI’s KPI’s can be categorised as:
Customer Focus KPI’s, e.g. -To measure customer satisfaction
Operational KPI’s - To measure manufacturing performance and H&S
Supplier KPI’s - To measure supplier performance

18. ADS UKLAI metrics/Clause 7
KPI’s
ADS UKLAI metrics/Clause 7
Process No
MEASURABLE
FREQUENCY
OWNER
RESP
SOURCE
METHOD OF CALCULATION
TARGET
TYPE of CHART or REPORT
WHERE REPORTED
Customer KPI's P
Manufacturing
Delivery Schedule Achievement (Internal Measure)
Monthly
(Total Number of Planned Deliveries Made - Total Number of Missed Deliveries) x 100 Total Number of Planned Deliveries Made
95%
Graph & Summary Report
Monthly/Weekly/6 Monthly Mgt Review
Delivery Schedule Achievement (Customer Measure)
Customer Delivery Performance Reports/Score Cards
Customer Target
Customer Satisfaction
Review of Key data, I.e. Delivery, RFT, Corrective Action Reports/Project Status, and review of Customer Visits/Meetings
Target
Review of all customer related data
RFT by Customer - External
(Part shipped -Parts rejected) x 100 (Parts shipped)
99%
NPI
Project Status (New Customer)
Project Status (Traffic Light System) Corrective actions on all Red/Yellow items.
Green
Status Report
Nonconforming Corrective & Preventive Action
Formal Customer Complaints
Number of Corrective Action Reports raised (by customer)
Formal Customer Complaints (Repeat Concerns)
Number of Repeat Concerns
Formal Customer Complaints (Response time)
Total Days from Receipt of Complaint to Reply
Supplier KPI's
Purchasing
Delivery Schedule Achievement (Supplier)
Total Number of Deliveries made - Incorrect Deliveries x 100 Total Number of Deliveries Made
RFT by Supplier
(Part received -Parts rejected) x 100 (Parts received)
Formal Supplier Concerns
Number of Corrective Action Reports raised (by Supplier)

19. ADS UKLAI metrics/Clause 7
KPI’s
ADS UKLAI metrics/Clause 7
Process No
MEASURABLE
FREQUENCY
OWNER
RESP
SOURCE
METHOD OF CALCULATION
TARGET
TYPE of CHART or REPORT
WHERE REPORTED
Internal KPI's P
Sales/Enquiries
Sales Turnover Per Month
Monthly
Turnover £K
Graph & Summary Report
Monthly/Weekly/6 Monthly Mgt Review
Finance
Net Profit
Turnover -(Fixed Costs + Marginal Costs)
%age Wages Vs Turnover
Wages Turnover -Purchases %
Manufacturing
Value Added Per Person
Output Value - Input Value Number of Employees
"" HR
Employee Training & Development
Total no of training & Development days per month Total no of Full Time Employees
Purchasing
Stock Turns
Sales Turnover of Product Value of Raw Material + WIP + Finished Goods
Floor Space Utilisation
Sales Turnover of area Square metres of area
OEE (Overall Equipment Effectiveness)
Availability x Productivity x RFT
Right First Time Index
Parts rejected x 1,000,000 Parts Produced
Direct Labour Cost
Plan vs Actual
Indirect Labour Cost
Absence / Sickness
Overtime
Plan vs Actual (Hrs)
TBD
Training Executed to Plan
Tooling Costs (£)
Actual Cost v Budget Cost Preventive/Breakdown
Maintenance Costs (£)
Budget Monitoring
Quality
Scrap Non Quality (Cost of Quality)
Cost of scrap + Cost of rework + Cost of Replacement Material
Lost Time Accidents
Total of lost time injuries (Hours) x 1,000,000 Actual Total Hours Worked in Financial Period
Accidents, Near Misses
Total number of near misses & description & action taken
People Turnover - Permanent
No of leavers x 100 Total People
Sales by Industry
Value of Sales by Industry Sector
Sales by Business Unit
Value of Sales by Business Unit
Hit Rate
No. Of Quotes Vs No. Of Won Orders
Revenue Per Man
Core Turnover*12 No. Of working weeks
Efficency
No. Of hours from direct staff Hours against jobs

20. Defining and implementing your KPI’s
The next step is to Plan the calendar for the meetings, examples below:
Quarterly Directors Meeting
Monthly Management Meeting
Weekly Production Meeting
Monthly Safety Meeting and, the
Monthly Quality Meeting 20

21. Typical Meeting Agenda

23. Meeting Action Log

24. Summary For the KPI’s to be successfully implemented they must be:
Relevant to the business
Supported by senior management team
Have clear ownership
Realistic targets
Be reviewed on a Weekly, Monthly and Quarterly basis
When target is not being achieved the root cause identified and corrective actions implemented
When required, support is given to achieve the goals

25. How to identify Performance Measure
From an audit perspective, it’s quite easy to identify the Performance Measure, note this should be done at Stage 1:
Is there a list of processes and their interaction
Is the process addressing product realisation
Is the process owner defined
Is there a target
Is there a review process

29. Any Questions