Quality Control Guide: Layered Process Audits (LPA) and their benefits in the Automotive Industry

What are Layered Process Audits?

Layered Process Audits (LPAs) are structured evaluations that span multiple organizational levels to ensure adherence to established processes and enhance performance ^[10]. They involve observations and interviews with employees to define standards and identify improvement opportunities, conducted by trained auditors from different departments, not just Quality ^[5]. Key elements include:

• Observing Manufacturing Processes: LPAs focus on verifying that documented processes and procedures are being followed on the shop floor, rather than just inspecting finished products ^{[11] [4] [6]}.
• Multi-Level Audits: LPA programs typically have 3 layers of audits conducted by different management levels:

1. Daily audits by shop floor supervisors

2. Weekly audits by middle management

3. Monthly/quarterly audits by plant managers and executives [7]

• Cross-Functional Teams: LPAs involve people at all levels, from junior workers to senior management, across functions like manufacturing, logistics, and maintenance ^{[4] [5]}.
• Identifying Improvement Areas: LPAs help detect and resolve process issues early, before they lead to quality problems or customer complaints ^[11]. Key inputs include customer requirements, risk assessments, statistical data, and trend charts on factors like rejections and rework ^[4].

The goal is to consistently follow procedures, maintain quality standards, rectify deviations promptly, and drive continuous improvement ^[8]. LPAs help instill a culture of quality as senior managers demonstrate its importance.

Implementing Layered Process Audits

Implementing an effective Layered Process Audit (LPA) program involves a systematic approach and adherence to industry best practices ^[9]. The key steps include:

1. Establish a Cross-Functional LPA Team: Assemble a team with representatives from different organizational levels and functions, ensuring diverse perspectives and expertise ^{[9] [10]}.
   
   
2. Define Audit Scope and Objectives: Identify critical business processes, functions, and areas to be covered by the LPAs, aligning with organizational goals and quality standards ^[10].
   
   
3. Develop Customized Audit Checklists: Create objective, specific, and tailored audit questions and checklists based on the defined scope and objectives ^{[9] [10]}.
   
   
4. Structure the Audit Layers: Establish three distinct audit layers: daily audits by supervisors/team leads, weekly audits by middle management, and monthly/quarterly audits by plant managers/executives ^{[9] [3]}.
   
   
5. Schedule and Communicate Audits: Implement an efficient scheduling system and clearly communicate audit plans, timelines, and expectations across the organization ^[9].
   
   
6. Conduct Comprehensive Training: Provide thorough training to all team members on conducting effective LPAs, ensuring a consistent approach and understanding of audit processes ^[10].
   
   
7. Execute Systematic Audits: Perform audits systematically using checklists, on-site observations, and interviews, covering product-related aspects, manufacturing processes, and error-proofing operations ^{[10] [3]}.
   
   
8. Document and Analyze Findings: Meticulously document audit findings, analyze data, and identify areas for improvement, leveraging compliance charts and tracking conformance percentages ^{[3] [10]}.
   
   
9. Drive Continuous Improvement: Establish clear escalation and problem-resolution processes, ensuring timely corrective actions for non-conformances and continuously refining the LPA program based on feedback and data ^{[10] [9]}.

Rigorous project management, adherence to deadlines, mapping of results by workstation, and multilevel follow-up are critical success factors for effective LPA implementation ^[5]. Additionally, senior management support, clear communication, and ensuring the audits have a genuine impact are crucial for the program's success ^[4].

Benefits of Layered Process Audits

Implementing an effective Layered Process Audit (LPA) program offers numerous benefits for organizations, particularly in the automotive industry:

• Improved Safety and Reduced Incidents: LPAs help identify and mitigate safety risks, leading to a reduction in safety incidents and fostering a safer work environment ^[4].
  
  
• Cost Savings: By catching defects early in the production process, LPAs minimize waste, scrap, rework, customer complaints, and costly product recalls, resulting in better cash flow and reduced Cost of Poor Quality ^{[1] [4] [6] [7]}.
  
  
• Enhanced Quality and Customer Satisfaction: LPAs promote process standardization, ensuring adherence to customer-specific requirements (CSRs) from automakers, leading to improved product quality and increased customer satisfaction ^{[5] [8]}.
  
  
• Continuous Improvement: LPAs provide a mechanism for capturing operator feedback, enabling the identification of improvement opportunities, such as 5S enhancements, safety behavior modifications, and broader process trends across multiple workstations. Combining LPA data with one-on-one interactions facilitates more effective and permanent improvements.
  
  
• Compliance and Certification: LPAs help organizations comply with various certifications and guidelines, including ISO 9001, IATF 16949, ISO 45001, and ISO 14001, ensuring adherence to industry standards ^[8].
  
  
• Fostering a Quality Culture: By involving employees at all levels, from line associates to senior management, LPAs encourage a company-wide quality effort, promote clear communication, and foster a culture of continuous improvement ^{[4] [8]}.
  
  
• Root Cause Analysis and Risk Mitigation: LPAs focus on identifying and remediating the root causes of defects, rather than merely examining finished products, allowing for effective risk mitigation and control ^{[7] [8]}.
  
  
• Measurable Performance Improvements: Effective LPA implementation leads to measurable benefits, such as reduced process errors, increased First Time Capability (FTC) of compliant products, and overall cost reduction ^[6].

In summary, Layered Process Audits offer a comprehensive approach to quality management, enabling organizations to improve safety, reduce costs, enhance customer satisfaction, drive continuous improvement, ensure compliance, and cultivate a culture of quality throughout the organization. Start your Digital Layered Process Audits journey now - Try our LPA App  for free or book a demo.

Conclusion

Layered Process Audits have become an essential quality management practice in the automotive industry, offering a comprehensive approach to process compliance, continuous improvement, and risk mitigation. By involving employees at all levels, LPAs foster a culture of quality, enabling organizations to enhance safety, reduce costs, improve customer satisfaction, and ensure adherence to industry standards.

The structured, multi-layered nature of LPAs allows for proactive monitoring, early defect detection, and effective root cause analysis, leading to measurable improvements in performance metrics and overall operational excellence. In today's digital era, leveraging tech can make LPAs a breeze. Mobile2b is a digital platform that simplifies the entire LPA process with customizable checklists and smart features. While LPAs require a systematic approach and commitment from all stakeholders, their benefits in driving quality, mitigating risks, and promoting a culture of continuous improvement make them an indispensable tool for organizations in the highly competitive and quality-driven automotive industry.

FAQs

What exactly is a Layered Process Audit (LPA)?
A Layered Process Audit (LPA) involves multiple levels of auditors, such as staff and employees, conducting the same set of audits to ensure that critical production steps adhere to established specifications. It is a methodical and organized review of a process or system.

Can you explain the CQI-8 Layered Process Audit Guideline?
The CQI-8 Layered Process Audit Guideline is a framework recommended by the Automotive Industry Action Group (AIAG) to enhance quality and processes within the automotive industry. It provides a structured approach for conducting Layered Process Audits.

How many types of audits are specific to the automotive industry?
In the automotive sector, particularly under the IATF 16949 standard, there are three distinct types of audits, each with its own set of requirements, scope, and competencies. These are the Quality Management System Audit, the Manufacturing Process Audit, and the Product Audit.

What does an LPA checklist entail?
An LPA checklist is a tool used to observe and verify the manufacturing process of products. It is designed to assess various elements of the production process in stages to identify and resolve non-conformances and address issues directly at their source.

References

[1] - https://tervene.com/blog/cqi-8-layered-process-audit-guideline/
[2] - https://total-manufacturing.com/quality/layered-process-audits/introduction-lpas/
[3] - https://elsmar.com/elsmarqualityforum/threads/what-is-a-layered-process-audit-lpa.11170/
[4] - https://www.quality.org/knowledge/layered-process-audits-show-benefits-focusing-facts-well-faults
[5] - https://www.trigo-group.com/en/news-and-events/press-relations/why-implementing-layered-process-audits
[6] - https://www.automotivequal.com/lpa-layered-process-audit-why-is-it-worth-performing/
[7] - https://www.certaintysoftware.com/the-benefits-of-a-layered-process-audit/
[8] - https://tervene.com/blog/what-are-layered-process-audits/
[9] - https://www.ease.io/blog/best-practices-in-creating-a-layered-process-audit-program/
[10] - https://tervene.com/blog/implement-layered-process-audit/
[11] - https://www.aiag.org/store/training/details?CourseCode=LPATT