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WWW.SGS.COM ISO CLAUSES NONCONFORMITY DATA INDUSTRIES ANALYTICS INTELLIGENCE TRANSFORMATION CLAUSES BE ENGINE BE THE BENCHMARK

BE Engine: Transforming Businesses with Data Analytics

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WWW.SGS.COM

ISO

CLAUSES

NONCONFORMITY

DATA

INDUSTRIES

ANALYTICS

INTELLIGENCE

TRANSFORMATION

TRANSFORMING BUSINESSES WITH DATA ANALYTICS CLAUSES

BE ENGINE

BE THE BENCHMARKBE THE BENCHMARK

BE THE BENCHMARK

TRANSPARENCY

329,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Ope

ratio

nsQ

ualit

y &

Saf

ety

Sust

aina

bilit

ySu

pply

Cha

inM

anag

emen

t & S

trat

egy

CERTIFICATION

TRAINING

PERFORMANCEASSESSMENT

SUPPLIER-RISKMANAGEMENT

TECHNICALCONSULTING

PERFORMANCE

560,000

COMPLIANCE

127,000

DEVELOPMENT

230,000

ASSURANCE

230,000

VALU

E A

DD

ED

SGS MILESTONES39 INDUSTRIES 2,600 OFFICES 94,000 EMPLOYEES

CUSTOMERS ACQUIRED

SGS GROWTH DATA

VALU

E CH

AIN

200,000 CUSTOMERS89 COUNTRIES

CERTIFICATES ISSUED C SOLUTIONS BE SOLUTIONS

SGS DATA EVOLUTIONData has always been a vital part of SGS’s primary

business strategy and a key operational focus. Since

the 1980s, SGS has increasingly focused on the

collection of more comprehensive data and ensuring

its integrity. Today, SGS has access to a vast body of nonconformity data relating to a wide variety of standards, industries and geographical regions. This data is drawn from certification audits, and identifying millions of data points across 39 major industries.

To analyze this data, we have developed the BE Engine, a proprietary business intelligence tool and methodology. Audit data and information stored in SGS’s database can be analyzed using the BE Engine to identify main operational weaknesses for clients in relation to industry segments, standards and geographical location. The system also allows SGS to identify operational pain points and organizational exposure to various risks. The results from analyzing the data using the BE Engine can then be combined with SGS’s expertise to create tailor-made Business Enhancement solutions. This data allows us to identify compliance trends, determine risk exposure of clients, and match effective solutions for the pain point discovered. Companies that partner with SGS will find they are setting new standards for business excellence.

2 3

BE ENGINE

4 5

OUR PLATFORM

1. ANALYTICS

• Insight driven process and data analytics.

• Compile information on nonconformities to identify main operation weaknesses that our clients have per industry segment, standard and geographic location.

2. INTELLIGENCE

• Client performance evaluation against different benchmarks.

• Root Cause Analysis by keyword processing.

• A Pre-Programmed mapping logic to match root causes and pain points.

3. TRANSFORMATION

• Integrate SGS long-term industry experience and technical expertise to map industry pain points and associated events to business impact.

• Conduct business impact assessment and risk modeling.

1

2

3

BE ENGINE

PRODUCT AREA SERVICE OFFERING BASIC ADVANCED PRO

ANALYTICS

Analysis of Nonconformity DataGeneral overview and analysis by time, region, facility, standard, industry, product category and standard clause √ √ √

Internal Audit Performance AssessmentClient focused audit performance overview and reports √ √ √

INTELLIGENCE

Performance BenchmarkingComparing client’s key performance metrics with benchmark

Matrix to compare all clients’ key performance metrics with different benchmarks

Performance assessment to evaluate client’s audit performance within a specific standard compared with pre-defined benchmark (industry, region in top 5 risk areas)

√ √

Root Cause Analysis & Risk ProfilingRoot Cause Analysis by keyword processing auditors’ description and feedback and build client’s risk profiles √ √

Pain Point MappingPre-programmed mapping logic to match root causes and pain points with nonconformities raised from all major standards √ √

TRANSFORMATION

Impact Event and Impact Area Analysis

Evaluate how the top impact events affect the 4 impact areas we identify as valued most to business

4 Impact Areas: Brand Reputation, Employee Morale, Legal Complications, Financial Impact

Customized Impact Area AssessmentComprehensive and customized root cause analysis, risk profiling, pain point mapping and impact area assessment for key accounts

Risk Modeling - Business Impact Assessment

Business impact assessment across business value chain √

Advanced Business Impact And Risk ModelingIndustry Specific Risk Matrix

Industry Performance Benchmark

Competitor Specific Benchmark

OUR SERVICES BE ENGINE

6 7

ANAL

YTIC

S

INTELLIGEN

CE

TRANSFORMATION

PRO

CESS

IMPR

OVEMENT RISK MITAGATION

VALUE OPTIMAZATION

DAT

A

INSIGHTS

SOLUTIONS

SGS is dedicated to continuously bringing additional value to our customers.

We have established the Business Enhancement (BE) Engine as a Business Intelligence platform driven by industry and technical insights. The BE Engine aims to highlight unique and valuable perspectives on the industry, educating customers on new issues and outcomes, and help them identify solutions and navigate through alternatives, enabling them to reduce risk, improve performance, save cost and be more competitive. It embeds insights from lead auditors and product managers with subject matter expertise to help our clients recognize pain points and identify potential risk from detailed analysis of audit records.

• Compile SGS’s audit data to set the industry benchmark and identify the key pain points per industry segment, standard and geographic location.

• Provide our clients with insights that help to identify operational pain points and organizational exposure to various risks that can be linked to business impact.

• Customize recommendations to customers (training and consulting services) to help them solve operational deficiencies, proactively mitigate risk, and thus enhance business growth.

9 BUSINESSES

89

COUNTRIES

200,000 CUSTOMERS

2,600 OFFICES

94,000 EMPLOYEES

2MIL+ INVESTED IN LOCAL

COMMUNITIES WORLDWIDE (2019)

3,000+

15,000+

22,000+

6,000+ 30,000+

11,000+

8,700+17,000+

NAM

SCA

WE

AFRICA

NCSE

EEME

NEA

SEAP

THE BE ENGINE DATA BY REGION

ISO 9001:2015 32688 ISO 14001:2015 11663

ISO 9001:2008 9283

OHSAS 18001:2007 8529IATF 16949:2016 7280

CLAUSES WITH HIGHEST CONCENTRATION OF NONCONFORMITIES CLAUSES MAPPED TO INDUSTRY PAIN POINT PAIN POINT MAPPED TO BUSINESS IMPACT EVENTS

BE ENGINE DATA METHODOLOGY

MANUFACTURING PROCESS DESIGN

PROBLEM SOLVING

TOTAL PRODUCTIVE MAINTENANCE

CONTINGENCY PLANS

VERIFICATION OF JOB SET-UPS

CUSTOMER SATISFACTION

CONTROL PLAN

PRODUCT NONCONFORMITY

LOGISTICS DELAYS

CUSTOMER COMPLAINTS

COST INCREASE

PRODUCT RECALL

LACK OF ADEQUATE RESOURCES

VERIFICATION OF CONTINGENCY PLANS

MANAGEMENT COMMITMENT

PROBLEM SOLVING AND ROOT CLAUSES

LACK OF CORE TOOLS KNOWLEDGE

DATA BY TOP STANDARDS

INDUSTRIES

Agriculture and Food Chemical Construction Consumer

Goods & RetailEnergy Industrial

ManufacturingLife

SciencesMining Oil & Gas Public Sector Transportation

8 9

Our Analytics dashboard helps clients

to perform aggregated analysis using

all available audit records. It is capable of manipulating data in various ways to help clients monitor and identify potential issues by region, standard, divisions, and product category. This information could be extremely helpful in supporting the internal audit and risk assessment process.

The Analytics process begins with the analysis of our certification data, which is segmented by risk area of industry. Trends are then identified to pinpoint key issues faced within that segment. Depending on the specific client needs, we can organize the data in various ways in order to provide specific insight.

Within the Analytics process, clients are presented with various representations of data to show potential threats that have been identified in the trend analysis process. This dashboard is intended to analyze the distribution of audit data from different perspectives.

Aggregation of industry or client specific certification nonconformities

ANALYTICS

IDENTIFYING TRENDS TO MITIGATE RISKS

NONCONFORMITY ANALYSIS

NONCONFORMITY BY REGIONAggregation of industry or client specific certification nonconformities by region

SECTION 4 CONTENT OF THE OPERATION

SECT

ION

9 P

ERFO

RMAN

CE E

VALU

ATIO

N

SECTION 10 IMPROVEMENT

SECTION 5 LEADERSHIP

SECTIO

N 6 PL

ANNI

NG

SECTION 7 SUPPORT

SECTION 8 OPERATION

2

3K

EY

I

ND

US T R Y

PA

IN

P

O

INTS

Contamination Prevention Facility Maintenance Food Fraud Risk Mitigation

Aw

aren

ess

O

thers

KE

Y I N D U S T R Y

PA

I N P O I N T S

Contamination Prevention Facility Maintenance Food Fraud Risk M

itiga

tion

A

war

enes

s

Others

SECTION 10 IMPROVEMENT

1

4.3

4.4.

1

4.2

4.1

4.4.2

5.1.1

5.3.1

5.3.2

5.2.2

5.1.2

6.1.2

6.2.2

6.1.1

6.2.1

6.3

7.17.27.5

7.3

7.4

8.5.1

8.4.2.4

8.3.5

8.3.3

8.7.1

9.2.2

9.1.1

9.1.2

9.3.2

9.3.1

10.2.

2

10.2.

1.4

10.2.

4 10.3

.1 10.2

.6

DISTRIBUTION OF AUDIT nonconformity across standard sections

TOP 5 KEY PAIN POINTSfor the industry

5 CLAUSES PER SECTION with their percentage of nonconformities

ANALYTICS DASHBOARD

BE ENGINE

1

2

3

4

5

67

BACKGROUND INFORMATION

NONCONFORMITIES BY REGION

NONCONFORMITIES BY TIME

NONCONFORMITIES BY FACILITY

NONCONFORMITIES BY INDUSTRY AND PRODUCT

CATEGORY

NONCONFORMITIES BY STANDARD

NONCONFORMITIES BY STANDARD AND TYPE

10 11

This dashboard is intended to analyze the distribution of data points from different perspectives. The scope of data can vary based on request.

CLIENT SPECIFIC

INDUSTRY SPECIFIC

STANDARD SPECIFIC

TIME SPECIFIC

REGION SPECIFIC

PRODUCT SPECIFIC

12 13

Companies very often do not have the external data to reference and help them determine where they stand against competition within the industry segment. Leveraging our vast library of data, SGS can provide key benchmark metrics to bring clarity for our client to understand current gaps from the industry benchmark.

Deliver market intelligence and help clients understand where they stand comparing to the competition in the same industry, region, and sector

COMPETITIVE BENCHMARKING

OVERALL PERFORMANCE BENCHMARKINGOverall assessment of organization performance in: Operations, Procurement/ Logistics, Management, Sustainability, Productions

INDUSTRY TRENDS & BENCHMARK

Our Intelligence dashboard is intended to

provide a basic and in-depth version of

assessment to evaluate the clients’ audit

performance compared with different

benchmark measurements.

Intelligence also thrives on uncovering insights from audit data utilizing our technical knowledge and grouping nonconformities into a condensed list of pain points. Leveraging on our knowledge and experience, we expand from each identified pain point and help identify the major root causes. In addition, we also help interpret the impact of pain points using the risk approach by grouping the pain points into different risk categories respectively. This process is validated by a team of technical managers and lead auditors with subject matter expertise.

INTELLIGENCE

CLAUSES

2PAIN POINTS

3BENCHMARK METRICS

PERFORMANCEBENCHMARKING

4

SECTION 4 CONTENT OF THE OPERATION

SECT

ION

9 P

ERFO

RMAN

CE E

VALU

ATIO

N

SECTION 10 IMPROVEMENT

SECTION 5 LEADERSHIP

SECTIO

N 6 PL

ANNI

NG

SECTION 7 SUPPORT

SECTION 8 OPERATION

LACK

OF A

DEQUATE RESOURCESVERIFICATION OF CONTINGENCY PLANS

MA

NAGEM

ENT COM

MITM

ENT

PROBLEM SOLVING & ROOT CAUSE

LACK OF CORE TOOLS

MAJ

OR T

O M

INOR

RATIO

NONCONFORMITY PER AUDIT

NONCONFORMITY PER FACILITY

INDIVIDUAL PERFORMANCE 21

INDIVIDUAL PERFORMANCE 25%

INDIVIDUAL PERFORMANCE 5

INDUSTRY BENCHMARK 8

REGIONAL BENCHMARK 2

SEGMENT BENCHMARK 4

REGI

ONAL

BEN

CHM

ARK 2

0%

SEG

MEN

T BE

NCH

MAR

K 1

8%

INDU

STRY

BEN

CHM

ARK

15%

INDUSTRY BENCHMARK 33

REGIONAL BENCHMARK 16

SEGMEN

T BENCHM

ARK 15

1

2

3

41

14 15

INTELLIGENCE DASHBOARD

BE ENGINE

1

2

4

3

5

BACKGROUND INFORMATIONClient focused audit performance overview and reports

PERFORMANCE BENCHMARKING by comparing client’s nonconformities per

audit with industry benchmark

PERFORMANCE BENCHMARKING by comparing client’s major to minor ratio

with industry benchmark

MATRIXto compare all clients’ key performance

metrics with different benchmarks

AUDIT PERFORMANCE OVERVIEW Performance overview and reports

14 15

This dashboard is intended to conduct performance assessment to evaluate client’s audit performance compared with different benchmarks.

DASHBOARD COMPONENTS

Background information

Client focused audit performance overview and reports

Performance benchmarking by comparing client’s nonconformities per audit with industry benchmark

Performance benchmarking by comparing client’s major to minor ratio with industry benchmark

Matrix to compare all clients’ key performance metrics with different benchmarks

1

2

3

4

5

16 17

The key output of the Transformation stage is the ability to associate an business impact change to the services SGS can provide. In addition, clients will have a clear roadmap of how the issues identified in the previous steps impact the various areas of their organization.

Deliver market intelligence and help client understand where they stand comparing to the competition in the same industry, region, and sector

To showcase each risk event by risk level and likelihood of occurrence

To understand the current landscape of the industry, we have mapped the top 10 impact events with the highest concentration of occurrences

IMPACT AREA HEAT MAP

BUSINESS IMPACT ANALYSIS IMPACT EVENT GAP ANALYSIS

IDENTIFYING BUSINESS IMPACT FROM OUR SOLUTIONS

Lega

l

1PAIN POINT

PROBLEM SOLVING & ROOT CAUSE

LACK

OF A

DEQU

ATE

RESO

URC

ESVERIFICATION OF CONTINGENCY PLANS

COST INCREASE

CUSTOM

ER COMPLAINTS

LOGISTICS DELAYS & FAILURES

PRODUCT N

ONCO

MFO

RMIT

Y

PRODUCT RECALL

BrandReputation

Employee Morale

Legal

Complications

Financial

Impact

Brand

ReputationEm

ployee M

orale

LegalComplications

Financial

Impact

Brand

Reputation

Employee

MoraleLegal

ComplicationsFinancial Impact

Brand

Reputa

tion

Empl

oyee

Mor

ale

Com

plic

atio

nsFi

nanc

ial

Impa

ct

Bran

dRe

puta

tion

Emplo

yee

M

orale

Legal

Complications

Financial

Impact

HIGH LIKELIHOOD

MEDIUM LIKELIHOOD

LOW LIKELIHOOD

MA

NAGEM

ENT COM

MITM

ENT

AUTOMOTIVE INDUSTRYIATF 16949

TRANSFORMATION

Our Transformation dashboard thrives on

uncovering insights from audit data utilizing

our technical knowledge and grouping

nonconformities into a condensed list of pain

points. Leveraging on our knowledge and experience, we expand from each identified pain point and help identify the major root causes. In addition, we also help interpret the impact of pain points using the risk approach by grouping the pain points into different risk categories respectively. This process is validated by a team of technical managers and lead auditors with subject matter expertise.

BE Engine conducts further analysis to identify the root cause and all relevant impact events categorized within larger impact areas. As a step further, a likelihood of occurrence can also be derived.

2IMPACT EVENT

3IMPACT AREA

LACK

OF C

ORE TOOLS KNOWLEDGE

2

3

1

18 19

TRANSFORMATION DASHBOARD

BE ENGINE

1

2

PAIN POINTS MAPPING with impact events and impact areas

3IMPACT EVENT ANALYSISshowcase each risk event by risk level and likelihood of occurrence

4

IMPACT AREA HEAT MAPshowing the connection between

impact areas & specific impact events,

and their likelihood of occurrence

IMPACT EVENT ANDIMPACT AREA ANALYSISwith benchmarks against the industry

18 19

This dashboard is intended to utilize our technical knowledge to group nonconformities into a condensed list of pain points. From each identified pain point, we further analyze major impact events and impact areas.

DASHBOARD COMPONENTS

Pain points mapping with impact events and impact areas

Impact event and impact area analysis

Impact event analysis

Impact area heat map

1

2

3

4

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CONTACT SGS