In: Operations Management
Non - Destructive Testing
NDT Quality Management
Explain the main differences between first party, second party and third party audits and how these relate to the supplier / customer relationship.
Include a diagram/s.
1) First party audit
First party audits are internal audits. If a employee from the
organisation or a consultant (hired by the company) audits a
process or set of process, then it is called as a first party
audit.
The company sets certian standards of quality and performance for
itself. The auditor focusses on these standards to looks for
problem area's and areas of improvement.
Since this type of audit is done on behalf of company rather than a
customer or certification authority, there are chances that the
audit may be fudged and wrong interpretations given. However the
first party audit is a sure shot way of knowing where the company
stands ( because this will be a indepth audit) ,and provide
superior quality to customers.
2) Second party audit
When the audit is done of a supplier by company then it is called
as a second party audit.
The audit looks into the specifics of cleanliness standard,
documentation, quality of input etc.
The second party audit is between the customer and supplier.
Second party audit builds a trust factor between the supplier and the customer. The customer will be satisfied with the supplier( if all the quality criteria is met). The business between both can flourish on conducting regular second party audits.
3) Third party audit
A third party audit occurs, when a company decides that it needs a
quality management system such as ISO 9001,ISO 2240 etc.An
independent company which specializes in the quality certifications
is hired to perform a quality audit of the company. A certification
is provided on meeting the quality standards.
This certification can be used by the company to say that it
adheres to quality standards and thus increase the confidence of
it's customers and suppliers to transact with the company.