Type of audit/
Standard / Date of issue:	2. Surveillance Audit (ISO/TS 16949: 2002 with design) 	
Manual / Revision / Date	Quality Manual August 2006	
Audit period on site (due date):	2008-04-01 - 2008-04-03  [2008-04-18]	
Organization Name:	Pellus Manufacturing, Ltd.	
Street / P.O. box:	7045 Industrial Drive, P.O. Box 208	
Post code / City:	CDN - N0P 1A0 Comber, Ontario	
Management Representative:	Todd Van Hal       Tel : 519-687-3016
	
Lead-Auditor/Auditor:	Pauline McCusker  	
Technical expert/Trainee	 N/A 	
Scope:
(as per print order)	Sales, Design, manufacture, production and distribution of wire products, stampings and related assemblies for the automotive industry with Design at Ellis Tool, Windsor, ON,  Sales, planning and Purchasing at Windsor, ON, N9A 6J3, and Warehousing and distribution at Taylor, MI.	
Industry scope:	EA 17.2	
for sampling certification:
Location of defined headquarter:	N/A	
Results of the evaluation of management documents and their implementation	 Certificate award recommended.
 Continuing validity recommended.
 Certificate completion recommended.
 Withdrawal recommended 
 The requirements of the standard have not been satisfied,
	a)  Re audit on site required
	b)  Submit new / additional documents.	
Fulfilment degree (VDA) in %:	N/A	
Date of Re Audit on site:	Date: N/A	Duration:  hours	
Verification of corrective actions and evidences and their effective implementation in case of “submission of documents”: 	
Additional for verification of documents:		hours

Additional audit time during next audit:  2 hours	
Due date for next audit: 
(last audit day from C-/R-/Upgrade Audit)	April 2009	
Annexes to audit report:	 Summarized audit results 
 Action List, List of measures 
 Process reference list 

July 15, 2008		Pauline McCusker			
Date		Lead-Auditor			

Review

The audit team has reviewed, verified and accepted the submitted documents for all nonconformities identified during the audit. Corrective actions are defined and implemented. The effectiveness of implementation will be verified during the next audit. Therefore additional audit time must be considered (see cover sheet).

July 15, 2008		
Pauline McCusker			
Date		Lead-Auditor			

1	
Details of the organization, scope
1.1 General

The organization designs, develops, produces and sells the following products:
•	wire products, linkages and related assemblies for the automotive industry
Product types are headrests and braces for sunroof, bumber and fenders.

Therefore the main manufacturing processes exist:
•	Welding
•	Stamping
•	Wire Form
The following customer oriented processes were identified and analyzed:
  Refer to attached process reference list and process analyses

Audited processes are given in the process reference list.
Main customers of the organization include GM, Lear & JCI, as well as sister plants within 
Windsor Machine Stamping Ltd.   

The remote functions Design at Ellis Tool, Sales, Planning and Purchasing at Windsor Machine Stamping Limited in Windsor Ontario, and Warehousing and Distribution at Windsor Machine Products Inc., in Taylor Mi, have been audited in February 2008 in this organization the interactions to the remote locations were audited

1.2 Justified exclusions of standard requirements / processes

  	There are no exclusions

2	
Execution of the audit
During the audit the documented Management system was checked for degree of implementation and improvement at the different areas of the company.

The audit covered relevant processes / areas of the organization in order to obtain an overall picture of the degree of Management System implementation. Although performed to reasonable depth, not every detail of the complete Management System could be checked.
The processes and their associated areas of the organization were checked in accordance with the pre-agreed audit plan and where applicable, process analyses. 
One main focus was auditing the new product/process introduction for the project(s):  
•	No new products for this location since 2006
•	Product lines reviewed included Headrest L0007789, 1146127, 331452 & L0045963

During the audit of existing central functions for Sales Planning, Purchasing and Design at the Corporate office and at Ellis Tooling for the design portion all linkages were audited, as well as the remote warehouse activities are at Windsor Machine Products Inc. at Taylor MI. All relevant activities and product areas for supported plants were considered.

Assessment of the audit results was made using the following categories:
Major non-conformities (Maj.) (NC1):
Minor non-conformities (Min.) (nc2):	These are non-conformities with the standard requirements and have to be cleared before taking the decision to issue/continue certification	
Opportunities for Improvement (OFI):	These are not non-conformities to standard requirements; only opportunities for improvement were identified. 	

The detailed results are documented in the several attachments.

3	
 The following processes / chapters were audited:

Processes according to ISO/TS 16949:2002	Certification resp. Repeat audit
	1st surveillance audit April 07	2nd surveillance audit May 08	
4. Quality management system
4.1 General requirements 	X	x	x	
4.2 Documentation requirements	X	x	x	
5. Management responsibility	X	x	x	
6. Resource management
6.1 Provision of resources	X	X		
6.2 Human resources 
6.2.1 General	X	X	x	
6.2.2 Competence, awareness and training 	X	X		
6.3 Infrastructure	X	X	x	
6.4 Work environment	X	X	x	
7. Product realization
7.1 Planning of product realization	X	X	X	
7.2 Customer-related processes
7.2.1 Determination of requirements related to the product	X	X	X	
7.2.2 Review of requirements related to the product	X	X	X	
7.2.3 Customer communication	X	x	x	
7.3 Product design and development (can be considered for exclusion)	X	x	x	
7.3 Process design and development 	X	x	x	
7.4 Purchasing	X			
7.5 Production and service provision	X	x	x	
7.6 Control of monitoring and measuring devices	X		x	
8. Measurement, analyses and improvement
8.1 General	X	x	x	
8.2 Monitoring and measurement
8.2.1 Customer satisfaction	X	x	x	
8.2.2 Internal audit	X	x	x	
8.2.3 Monitoring and measurement of processes	X		x	
8.2.4 Monitoring and measurement of product	X		x	
8.3 Control of nonconforming product	X		x	
8.4 Analyses of data	X	x	x	
8.5 Improvement / Customer complaints	X	x	x	
New customers	X	x	x	
Customer specific requirements	X	x	x	
Bold chapters must be audited after ISO 9001:2000 during each audit
Bold and italic chapters must be audited after ISO/TS 16949:2002 in addition to ISO 9001:2000

4	
Changes since the last audit
Since the last audit, the following are the significant changes: 
•	Reduction in personnel due to decreased business volumes. American Axle strike over the past few weeks has resulted in the night shift being cancelled. Employee count went from 55 at the time of the last audit to currently 28.
•	New additions to the management team, new Quality Manager 
Their impact was assessed and included in the audit evaluation. The scope of the company has not been changed.
5	Summarizing assessment
Although there are non-conformities the auditor concluded that the implementation and effectiveness of the Management System is sufficient in accordance with the above-mentioned standards. The employees are familiar with the defined regulations and the non-conformities are not critical to the Management System. The Management System is suitable to sustain the confidence of the customer. Interactions of processes are controlled and effective. The organization’s management encourages and supports the development of the Management System.
The effectiveness of the Management System is reviewed by the organization’s management on a regular basis and corrective actions are implemented and observed.
6	
Positive remarks

The continual improvement process is effective and supports the improvement of customer orientation, employee and customer satisfaction at the system-, process- and product level. This is pointed out especially by the following actions:

•	Performance measures – performance to target trending positive for 2007 and 2008 

•	Production floor well organized. Automation in place wherever possible.

•	Strong process ownership in all areas reviewed.

7	Customer specific requirements and Supplier Codes

The company delivers to the following OEMs and Tier 1 Suppliers: 

  	The organization does not directly deliver to OEMs and Tier 1 Suppliers
 	The organization has not been given any customer specific requirements to the QM-System from the customers

Customer	Supplier Code	Customer specific requirements	New customer since last year	Audited & positive 
Evaluation

 CA     S1     S2	
GM	607396215	•	General Motors Customer Specific Requirements - ISO/TS 16949					
Lear	779600	•	Global Supplier Requirements Manual 					
JCI	311793	•	JCI Supplier Manual					
							
8	Confidentiality Agreement

A confidential handling of the audit report is ensured.

Annex 1,  Summarized audit results
1.	Number of employees	28	
2.	On site audit man days 
3.	Reduction of audit man days for this location for auditing the remote location in …..…….	2 MD
0 MD	
4.	Number of shifts audited / Number of shifts (non-rotating weekend shifts included)	 2/ 2	
	Yes	No	N/A	
5.	The effectiveness of the Management System was assessed on the basis of verification of process data, customer satisfaction analyses, fulfilment of defined targets and internal audits. Quality Policy, measurable targets, and performance data are communicated, verified, and updated.	X			
6.	The Management System forms the basis for fulfilment of the defined targets. The degree of implementation is checked regularly.	X			
7.	A centrally structured and managed management system exists for all locations. (Multiple-site certification only).			X	
8.	The central Management Review (at least once annually) includes statements for the evaluation of targets, performance data, customer complaints, field failures, actions from previous reviews, changes and corrective and preventive actions from all locations. The output of management review includes decisions on improvement potential and necessary resources.	X			
9.	Process oriented internal audits are planned and conducted. Corrective and preventive actions are resulting from the audits. Audit results (of all sites and remote locations) were included in the management review.  	X			
10.	The company/organization has a method to collect customer feedback, including customer complaints. The data is evaluated and corrective / preventive measures are taken.	X			
11.	The company determines customer requirements and provides resources for the improvement and maintenance of the management system as well as for increasing customer satisfaction.	X			
12.	The organization has established a process for employee motivation and the awareness of employee’s objectives related to their work is evaluated. (only for TS and VDA)	X			
13.	The audit team was convinced of the qualification and professional experience of those employees who were interviewed and/or whose records were checked during the audit. The authority and responsibility of the employees and the internal organization was defined and demonstrated.	X			
14.	Continual improvement of the QMS and customer satisfaction is ensured by measurements, analyses and improvement actions.  (CIP)	X			
15.	Non-conformities, which were closed after submission of new documents from the last audit, were checked and the measures taken were seen to be effective.	X			
16.	Non-conformities (VDA) from the last audit, which hadn’t been closed after 90 days period, were checked and the measures taken were seen to be effective.			X	
17.	The promotional use of the certification was checked. Reference to certification is made without inference that it applies to products.	X			
18.  The audit team verified changes to the QMS documentation and verified their effective implementations (only for Surveillance Audits).	X			
19.  A new readiness review (stage1 audit) was not necessary, because there haven’t been significant changes in QMS-documentation, organisation or products (only for Repeat Audits).			X	
20.	Within the last 12 month products were still delivered to the automotive industry. (only for TS)	X			
21. 	The requirements of the traffic right were judged positively during the audit. COP examinations are carried out. 			X	

If any answer is „No“, enter details below referring to the list of actions
Details: 
	
Distribution: Organization, Certification Body and Auditor					N/A = not applicable