Customer feedback is a process. It needs to be audited as a process, not as a "clause of the standard". An evaluation also needs to be performed on the way in which the process is managed (see ISO 9001:2008 clause 8.2.1), and its ability to provide meaningful information with which to judge the overall effectiveness of the QMS. The way in which the organization obtains this feedback ("the method") is up to the organization to define. The standard states "Monitor information relating to customer perception." Sources can include surveys, customer data, compliments...

The auditor needs to be aware of the specific characteristics of the organization's products that are likely to impact customer satisfaction. Throughout the audit the auditor should be alert for indications that may suggest customer satisfaction or dissatisfaction which could serve as input into the audit of the customer feedback process.

Sources of information can include:

• Goods returned by the customer;
• Warranty claims;
• Revised invoices;
• Direct observation of, or communication with the customer (for example in a service organization).

These are some of the issues an auditor should address during an audit of the customer feedback process:

a) What is the desired output of this process? What information is actually available on customer perceptions? How is this information used by management to drive improvements to the product, processes and the QMS?

b) How is the data collected to feed the process? There are many ways for an organization to monitor its customers' perceptions, and the auditor should avoid preconceived ideas about how this should be done. Some examples of techniques the organization can use include:

• face-to-face visits and evaluations;
• telephone calls or visits made periodically or after delivery of products and services;
• internal enquiries among the organization's personnel who are in contact with customers;
• other contacts with customers, for example by service or installation personnel.

c) How is the data analyzed? Simply collecting data on customer perceptions is not sufficient - the auditor must follow the process through, to check how the data is analyzed and what conclusions are made with respect to the effectiveness of the QMS.
1) Are there any trends? 2) Is the situation stable, improving, or deteriorating? 3) Are customer needs and expectations changing? Asking the organization about industry comparisons, or benchmarking activities, in order to put customer feedback into perspective can be extremely valuable.

d) How does the information generated by this process feedback into the QMS as a whole? Organizations should be using the results of the customer feedback process to trigger corrective and/or preventive actions and as one of the overall measures of the QMS performance. Auditors should review the way in which these processes interact and subject it to the audit process.

The auditor should be able to recognize that the output from the customer feedback process forms an important input into other QMS process, such as data analysis, management review and continual improvement processes. An auditor who strives to add value will try to ensure that the organization recognizes the benefits a sound customer feedback process.

A recent AIAG e-News Brief included an article by Thomas Duesterberg, President and CEO of the Manufacturers Alliance. An edited version is below.

In the worst economic climate since the 1930s, and at a time of intensified political change, manufacturers are experiencing difficulties in articulating a clear and strong message about the health of their sector and how policy change might affect it. What follows are ten summary points intended to convey an accurate picture regarding the current state of U.S. manufacturing and some of its key issues.

1. Despite perceptions that U.S. manufacturing is disappearing, the quantity of manufactured goods produced in the United States has kept pace with overall economic growth for the last 90 years.Since 1947, value added in manufacturing has grown sevenfold, the same as gross domestic product (GDP). While employment has steadily declined in the sector, one in six private sector jobs are still in or directly tied to manufacturing.

2. When measured in value-added production, manufacturing is about 12 percent of GDP, down from about 27 percent in the early 1950s.
This is due primarily to higher productivity and lack of pricing power, and the sustained growth of the services sector. Between 1987 and 2008, manufacturing productivity grew by 103 percent, about double the total for all private business.

3. U.S. manufacturers do well in global competition by keeping costs under control. Due in large part to enhanced productivity, unit labor costs in U.S. manufacturing have declined by 40 percent relative to the average of 14 principal industrial country competitors since 1986 (U.S. Bureau of Labor Statistics).

4. U.S. manufacturing continues to be a source of innovation. It still accounts for 35 percent of value added in world high-technology product production and has a trade surplus in revenues from royalties in manufacturing processes.

5. Manufacturing accounts for more than one-fifth of all energy use in the United States.Energy efficiency in manufacturing has increased by 43 percent since 1987 alone, much better than the 33 percent in other sectors.

6. Manufacturing production always fluctuates more than the overall GDP.The current recession in manufacturing is the worst since the Great Depression. MAPI forecasts a decline of nearly 12 percent in manufacturing production in 2009, not nearly as bad as the 20 percent annual declines in the years 19301932, but significantly worse than the projected 2.9 percent decline in GDP.

7. The tax burden on U.S. manufacturers is higher than for other major competitor countries except Japan. This is the same for both statutory and effective rates and is due in part to the capital intensive nature of manufacturing. Reform proposals which eliminate important preferencessuch as the foreign exclusion or last-in first-out accountinghit manufacturers harder than other sectors.

8. U.S. manufacturing provides premium wages and benefits.Current wages and benefits in manufacturing, about $32 per hour, are 9 percent higher than the economy-wide average. About three-quarters of all manufacturing firms (and 99 percent with 200 or more employees) offer health-care benefits and pay about four-fifths of total employee premiums.

9. U.S. manufacturing is much more engaged in global trade than other sectors: 57 percent of all U.S. exports are manufactured goods. Despite a large trade deficit in goods, mostly due to imports of oil and manufactured products from Asia, the United States enjoys a trade surplus with all countries with which we have a free trade agreement, including the NAFTA countries.

10. Most U.S. foreign direct investment (FDI) is intended to gain access to large and growing foreign markets. More than 75 percent of U.S. FDI is in high-wage countries, including Europe, Japan, Australia, New Zealand, and Singapore.

The CE Mark is mandatory for a wide range of products sold in the European Union. The CE Mark has been described as a "passport" that allows manufacturers to trade industrial products freely within the internal EU market. The CE Mark indicates the manufacturer has undertaken all assessment procedures required for the product. The CE Mark is not a quality mark and does not indicate conformity to a standard; it indicates conformity to the legal requirements of the EU directives.

General Steps for Getting the CE Mark

1. Identify all applicable EU directives (laws).
2. Assess your product to the "essential requirements" of the directives.
3. Choose the appropriate conformity assessment.
4. Determine the applicable standards.
5. If required, choose a competent body in US to perform product tests.
6. If desired, choose an authorized representative for your company in EU.
7. Prepare a technical file, including a users manual, for products with high risk hazards.
8. Assemble the required approvals and certificates.
9. Prepare a Declaration of Conformity for each applicable directive.
10. Affix the CE Mark in accordance with the laws.

Obtaining authority to attach the CE Mark is often thought to be difficult and time-consuming. However, in many cases it is not.

View the CE Mark PDF Brochure at the NIST Website.

ISO/IEC 31010:2009, Risk management  Risk assessment techniques, has been developed jointly by ISO and its partner IEC (International Electrotechnical Commission).

Risk assessment is an integral part of risk management which provides a structured process for organizations to identify how objectives may be affected. It is used to analyze the risk in terms of consequences and their probabilities, before the organization decides on further treatment, if required.

When risks occur, organizations always have to ask the question: "Is the level of risk tolerable or acceptable, and does it require further treatment? "

Risk assessment is an integral part of risk management which provides a structured process for organizations to identify how objectives may be affected. It is used to analyze the risk in terms of consequences and their probabilities, before the organization decides on further treatment, if required. Risk assessment provides decision-makers and responsible parties with an improved understanding of risks that could affect achievement of objectives, as well as of the adequacy and effectiveness of controls already in place. The standard provides a basis for decision about the most appropriate approach to be used to treat particular risks and to select between options.

ISO/IEC 31010:2009 will assist organizations in implementing the risk management principles and guidelines provided by the recently published ISO 31000:2009, itself complemented by ISO Guide 73:2009 on risk management vocabulary. The latest standard deals with:

• Risk assessment concepts
• Risk assessment process
• Selection of risk assessment techniques.

The standard reflects current good practice and answers the following questions:

• What can happen and why?
• What are the consequences?
• What is the probability of their future occurrence?
• Are there any factors that mitigate the consequences of the risk or that reduce the probability of the risk?

The standard can be purchased through the ISO Store.

Poll: Fortune 1000 Companies Manage Risk for Less Than 20 Percent of Suppliers: A significant number of those polled (71.4%) expressed that their biggest concern continues to be risk of supplier financial viability. However, despite these concerns, more than half of the financial, procurement, and risk executives polled have less than 20 percent of their supplier base under active risk management. Read the article.

ISO has identified energy management as a priority area meriting the development and promotion of International Standards.The future standard will provide organizations and companies with a recognized framework for integrating energy efficiency into their management practices. Read the ISO website article.

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