Process Audit Report Example

1. Introduction

The purpose of this report is to carry out a process audit and process improvement activity about the business of ‘Organic Direct’. Process improvement and process audits are essential requirements for attaining improved efficiencies in organisations. This report will be analytical and critical in approach by drawing out secondary information from established theories and linking them to the current situation in the chosen case study industry. The report is structured into three segments with the first segment focusing areas of inefficiencies in a business process; the second focusing on analysing the chosen area of process inefficiency; and the third focusing on relevant change management issues of interests in implementing recommendations. To do this effectively, the use of process diagrams; stakeholder tables as well as academic journals will be undertaken. The last segment of this report will be focused on the conclusion section where all the different parts of the report will be summarised and presented.

2. Inefficiencies in Working Processes

Business process improvement is an approach to increase the effectiveness and efficiency of business processes that provide output to internal and external customers (Harrington, 1991). By implication this means that the outcomes of processes have far reaching effects not just on internal stakeholders, but also on external stakeholders who are probably the most critical to any company’s survival. Among the four sections of the company which are Accounts, Sales, Distribution and Management, distribution appear to be the greatest sources of problem for the Organic Direct company. Therefore, the distribution department will be examined in this report and the report t...

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...nvolved in the change program. They must all be aware of what is being done; when it is being done and how it is being done.

• Lastly, a control process must be introduced into the change process. To do this successfully, the organisation, particularly, the distribution manager should identify and develop performance metrics on which the performance of the new process will be based. For example, total cycle time; cost; and number of complaints might be used as metrics. Specific standards must be set prior to the implementation of the new automation facilities. These standards must fit well into the overall organisation’s goals and objectives and must be realistic. This will help to monitor the performance of the new process whether it conforms to the set standards or not. In other words, targets can be compared with actual performance using the identified metrics.