[Audit Procurement Feiyang] A Brief Discussion on How to Identify the Actual Implementation of Management Systems by Enterprises During the Audit Process

　　To truly see the real face of Mount Lu, one must still walk within this mountain.

　　—A brief discussion on how to identify the true implementation status of enterprise management systems during audits

　　I often conduct audits at enterprises. Every time I arrive at an enterprise, they bring over the certification materials they have prepared. Some of these materials are actual operational records of the enterprise, while others are written by consultants based on the enterprise's situation. As an auditor, one must carefully distinguish during the audit process, identify materials inconsistent with the enterprise, raise them as observation items or nonconformities, and through rectification, make these system materials truly become evidence of the enterprise's actual operation, helping the enterprise with statistical analysis and improving management level.

　　Once, I went to audit a wooden door manufacturing enterprise in Xiaoshan, Zhejiang. The boss was a Zhejiang businessman, decisive and efficient. He imported high-quality precious woods such as rosewood, wenge, and red sandalwood from Southeast Asia, meticulously carved and developed many wooden doors. Due to fine workmanship and superior wood, their products sold well.

　　The boss took me to see his showroom. Whether for office or home use, there were many matching products suitable for different types, grades, and scales of customers to choose from. In the showroom, a few large characters were prominently displayed: "Zhejiang businessmen do not give gifts, only dedicate good products to customers."

　　When I communicated with the leadership, I asked the production supervisor what the company's policy and objectives were. The supervisor was the workshop director, just came from the workshop, wearing work clothes with dirty hands. He stammered and couldn't answer. I said the supervisor must be familiar with the company's policy and objectives. This was already the third audit; why still don't you know?

　　A trainee auditor in the group took out a nonconformity issued last year, mainly stating: the audit leadership found the supervisor did not understand or comprehend the policy and objectives. I said, I already issued a nonconformity last time; why still can't you answer this time?

　　The supervisor said, "Teacher, we seem to have no policy, right?"

　　I held the manual, pointed to the policy, and told him: "Isn't it here? It's the third year; you should have memorized the policy by now."

　　We both looked at the manual. The policy read: Quality first, customer satisfaction, pollution control, environmental protection, compliance with laws, accident prevention, continuous improvement.

　　He read it word by word, halting and stammering. We exchanged a smile. I said: "It's quite hard to remember, isn't it?" He said, "Not only hard to memorize, I can't even read it completely."

　　I said: "You have been making wooden doors for so many years, serving so many customers. What kind of philosophy or spirit do you rely on to do so excellently?"

　　The supervisor got a bit emotional, raised his voice and spoke faster. He said: "Teacher Guo, our boss insists on using the best wood to make the best wooden doors. No outdated furniture leaves the factory. Frankly, no matter the situation, we insist on never giving gifts, only dedicating good products to customers. We meticulously make every fastener, every mortise and tenon, every panel. Workshop workers, team leaders, and senior management all adhere to this philosophy unwaveringly and without compromise!"

　　I said, "Can you take this sentence as your policy?"

　　The supervisor asked, "Which sentence?"

　　I said: "We do not give gifts, only dedicate good products to customers!"

　　The supervisor said: "Great, great, I don't need to memorize this; I remember it every day. We work according to this philosophy every day."

　　In 1985, I took the college entrance exam. I remember the Chinese essay topic was three pictures: a person digging for water, each time digging deeper with a shovel, almost reaching water the last time, but still not finding it. The person carried the shovel away, saying: "There is no water here."

　　Just like this wooden door factory, due to the joint efforts of consultants and auditors, the enterprise's policy was eventually lost.

　　We think the enterprise management is a mess, but it may not necessarily be a mess. We think the management is excellent, but it may not necessarily be excellent. Just like the person digging for water, digging for a long time without water does not mean he did not try, but it also does not prove there is no water here.

　　Also, excellent management does not necessarily mean the product is excellent, and an excellent product does not necessarily mean excellent management.

　　Similarly, an excellent auditor may not be able to audit all enterprises well. A competent auditor may not always appear outstanding; sometimes even seeming offbeat, but he still has the mission and value of an auditor, enabling him to see through everything and grasp the essence beyond appearances.

　　I told the supervisor of this wooden door factory: "Jack Ma once said Zhejiang businessmen do not give gifts. This is admirable! They put all their energy into product craftsmanship. You should post the policy you just mentioned everywhere, let everyone internalize it, continue to pursue excellence in production, and produce better products for customers."

　　The supervisor said: "Setting goals and managing according to this policy makes me feel clear and bright inside."

　　The trainee auditor said: "Teacher Guo, you haven't verified last year's nonconformity yet. Isn't this against audit principles?"

　　I said: "Different stages have different management models. Not being able to answer the policy and objectives may indicate the policy and objectives are not suitable. In this case, sticking rigidly to principles may not be a good thing."

　　I also said: "The company definitely has policies and objectives, maybe just in the boss's mind and actions. The superficial consulting guidance and on-site audit, if no effort is made, it will be hard to find out. Therefore, on-site audits cannot just end with issuing a nonconformity."

　　It's like the military: the mighty cannot fight, the fighters are not mighty. Yang Zirong raided the bandit nest, unshaven and scruffy, talking nonsense, but once he went, he could get things done.

　　Su Shi's famous saying: "One cannot see the true face of Mount Lu because one is in the mountain," meaning one must step out of the mountain to see it.

　　Lu You's famous saying: "What is learned from books is always shallow; to truly understand, one must practice," meaning one must delve into the mountain to know it.

　　Whether to step out or delve in is a sharp question posed to auditors. Neither stepping out nor delving in is a simple matter.

　　United Wisdom (Jinan) Certification Co., Ltd.

　　Auditor: Guo Miao