Regulations on the ZNU Group Certification (Multi-Site)

Transcription

1 Regulations on the ZNU Group Certification (Multi-Site) 1. General Information and Requirements 2. Procedure and Determination of the Audit Sample 3. Fees and Audit Costs 4. Certificates and Dealing with Nonconformities 5. Including and Excluding Sites 6. Case studies 1. General Information and Requirements A multi-site certification according to the ZNU Standard is possible for all companies (hereinafter also referred to as organizations ) with more than one site, producing comparable products and offer comparable services respectively. The decision whether an organization is suitable for a multi-site certification is made by an auditor and the certification body after a preceding document check and/or a pre-audit of the head office. Definition of multi-site: An organization with several sites, which has an identified head office that specifies, controls, imposes and continuously monitors the activities (e.g. by means of internal audits, management review, etc.), as well as a network of local agencies, subsidiaries or branches (hereinafter sites ), in which such activities are carried out completely or partly. Such an organization does not necessarily have to be a single legal entity. However, all sites have to have a legal or contractual connection to the organization s head office and be subject to a joint sustainability management system. Examples for organizations eligible for a multi-site certification are: Organizations with several sites (e.g. production sites, service centers, logistics centers) Organizations, in case of which the production and the administration are not located at the same site. Manufacturing firms with a network of sales offices (branches) Trading companies with a branch network and/or logistics centers Organizations working with licensing agreements (franchise systems) Temporary sites cannot be included in a multi-site certification. The ZNU as the standard-setting institute reserves the right to develop individual multi-site solutions and pilot these solutions within the course of the standard certification procedure in order to further develop and test innovative audit procedures and processes, with the aim of continuously improving the certification system. 1 ZNU 2017, 1st revision, as of 11 January 2017

2 Requirements 1. There is a central system (e.g. head office) that specifies, controls, imposes and monitors the implementation of the ZNU requirements for each site being included in the certification. 2. The organization has to prove that it collects, analyzes and, if necessary, communicates the essential data from all sites, including the head office. 3. There is at least one central qualified contact person for sustainability, as well as at least one qualified contact person for sustainability at each site. 4. There is a philosophy that applies or there are values that apply to the entire organization. 5. The central management system (usually the head office) initiates that a. at least one internal audit will be performed and verified annually at each site being included in the certification. b. the suitability, adequacy and effectiveness of the systematic improvement will be reviewed once a year within the course of the management review. This can be carried out separately for each site or by a central management review, considering all sites. c. early detection will be conducted for the entire organization and for each site at least once a year at appropriate intervals. d. based on the early detection, the sites from which an increased risk for areas of sustainability-related activity originates will be identified. e. the achievement of the objectives of the head office and sites will be reviewed annually. The results have to be presented at the external audit or made available to the auditor/certification body before the audit. 2. Procedure and Determination of the Audit Sample Before the certification procedure starts all sites to be covered by the envisaged company certificate have to be determined to facilitate a preparation of the quotation, and the following information has to be communicated to the certification body: - List of sites, including the respective processes and the type of products/services (application scope) - Number of employees at the individual sites and at the head office - Total turnover of the organization - Head office, including the core processes carried out here (application scope) - Description of the function/characteristics of the individual sites within the multi-site, including the legal form (separate limited liability company ( GmbH ), subcontractor, branch, franchisee or the like) - Results of the internal audits and management review of all sites 2 ZNU 2017, 1st revision, as of 11 January 2017

3 Content-related selection criteria for audit samples In consideration of the criteria listed below, the audit sample will be selected in such a way that the differences between the selected sites are as large as possible during the validity of the certificate. The relevant certification bodies are primarily responsible for this process. Before the planning of the audit, the corresponding documents (e.g. reports on internal audits, management reviews) have to be made available to these certification bodies. The standard owner (ZNU) has to be informed immediately about the scope and procedure of the multi-site certification and can be involved in decision-making in particular cases. The selection criteria for the audit sample include among others the following aspects: - Results of internal audits or previous certification audits - Early detection results - Records of complaints, nonconformities, corrective and preventive measures - Significant variations in the size of the sites - Modifications since the last certification audit - Geographic site distribution/multi-national aspects - Length of time elapsed since the last audit Determination of the audit sample size In general, the head office has to be part of the audit in case of certification, recertification and surveillance audits. The certification body has to determine the audit sample size in such a way that within a three years certification cycle all sites are audited by an auditor on site at least once before the next recertification audit, with the audit sample in the certification audit having to cover at least 40% of the population of sites. In the course of the two subsequent annual surveillance audits the remaining sites (max. 60% of the population) have to be audited. However, at least 20% of the population plus the head office have to be audited annually. Certification audit 1st surveillance audit 2nd surveillance audit 40% of the population plus head office 20% to 40% plus head office Table 1: Minimum number of sites to be visited per audit 20% to 40% plus head office If the applied percentage rule does not result in integers, the numbers are automatically rounded up. For example, 40% of 6 sites results in 2.4. Accordingly, three of the six sites and the head office have to be audited in the initial audit. After the first certification cycle, i.e. starting with the recertification audit, the audit sample will be distributed evenly over the three years if the population has not changed. This means, for example, in case of 6 sites: 2 sites during the recertification audit, 2 sites during the first surveillance audit, 2 sites during the second surveillance audit, etc. 3 ZNU 2017, 1st revision, as of 11 January 2017

4 If the head office is concurrently a site (i.e. production or service processes of the organization take place there), it counts twice: as head office with administrative functions and also as site (dual function). If the head office is audited without the adjoining production, the basis for the calculation is the number of employees of the central administration (without the production staff). If a head quarter is audited together with the adjoining site (at least once during the certification cycle), the calculation of the audit costs is based on the total number of employees of the head office and the site. If no production or service processes take place at the head office (pure administration site), the head office will not be included in the population. However, it also has to be audited once a year. 3. Fees and Audit Costs The provisions of the ZNU Standard serve as the basis for calculating the audit costs for a multi-site certification. The ZNU fee will be determined based on the total turnover of all sites being certified in the course of a multi-site certification. The audit times are calculated separately for each site and for the head office without an adjoining site. In case of head offices with an adjoining site the number of employees will be added up in case of joint auditing and the total audit costs will be calculated. This does not have any influence on the fact that a head office with an adjoining site counts as head office and as production site being included in the population. The actual costs for an audit in man-days depend on the structure and complexity of the processes in the company. Reasons for reductions must be specified in writing and be conclusive and comprehensible to third parties. The minimum cost for each site is one man-day (1 MD) on site; in exceptional cases the costs can be reduced in the course of a multi-site certification in consultation with the standard owner (ZNU) (e.g. in case of a very small site nearby). The regular surcharges for preparation and follow-up can be increased in case of a multi-site certification in the discretion of the certification body based on the conditions (e.g. number of sites). In addition to the deductions for the individual sites (due to existing certifications or a combined audit), the following deductions may apply to the certification, recertification or surveillance audit in case of a multi-site certification: Central administration without adjoining site 10% Site without core functions 10% The respective deductions are added up and have to be deducted from the costs of the sites in sum. The total sum of deductions in case of multi-site certifications without combined certification (combined audit) amounts to a maximum of 40% per site; with combined certification (combined audit) to a maximum of 50% per site. Example 1: Site with 890 employees = 6.9 MD on site [10% deduction % ISO % multi-site certification] = % = 4.83 MD, rounded off to 4.75 MD in the the certification audit). 4 ZNU 2017, 1st revision, as of 11 January 2017

5 Example 2: Site with 300 employees = 5.3 MD on site [10% deduction % ISO % audited GRI report + 10% multi-site certification] = % = 3.18 MD, rounded up to 3.25 MD in the certification audit). Example 3: Site with 500 employees = 5.9 MD on site [10% deduction % ISO % multi-site certification + 20% combined audit] = % = 2.95 MD, rounded up to 3.0 MD in the certification audit). 4. Certificates and Dealing with Nonconformities After the audit and in case of a positive decision of the certification committee, a single certificate will be issued, showing the name and address of the organization s head office. The first page of the certificate has to indicate that it has been a multi-site certification. A list of all sites (name and address) which have been included in the certification is compiled as attachment to the certificate. The certificate has to refer to this attachment. It must also be stated clearly on the certificate if not all sites of an organization have been certified. A sub-certificate (site certificate) can be issued for each site on request. This sub-certificate is only valid in combination with the company certificate (a corresponding note must be visible on the certificate). For a successful certification according to the ZNU standard the requirements of the ZNU Standard Food have to be fulfilled at all certified sites. If this is not the case at one of the sites included in the multi-site certification, the certificate and all sub-certificates will be withdrawn from the entire organization. Apart from these provisions that have to be observed separately, the general rules of the ZNU System Standard apply to the certificate (e.g. the multi-site certificate is also valid for three years). The certificate of the multi-site certification has to state at least the following details for a clear understanding: 1. Logo, name and address of the certification body 2. Logo of ZNU 3. Name and address of the certified organization; the organization s logo on request 4. Application scope of the audit: products, service processes and a reference to all included sites 5. Validity of the certificate (date until which the certificate is valid) 6. Reference to multi-site certification 7. Note on the number of certified sites 8. Reference to the attachment stating the individual sites 9. Place, date, signature 5 ZNU 2017, 1st revision, as of 11 January 2017

6 Dealing with nonconformities If a site shows nonconformities (D rating) during the multi-site certification, the entire organization will not be certified. In order to obtain the certification (initial audit and recertification audit), the organization may submit corresponding corrective measures (action plan) within 8 weeks and obtain approval from the auditor. If nonconformities are identified at individual sites during the surveillance audit, the certificate will be withdrawn from the entire organization if the organization does not submit corresponding corrective measures (action plan) within 8 weeks, which are approved by the certification body. It is always necessary to examine whether identified nonconformities impair the entire system integrity of the sustainability management and whether they affect other sites. It is possible to exclude individual sites from the multi-site certification at a later time due to nonconformities that cannot be removed within 8 weeks in order to obtain a multi-site certificate. In this case, the excluded sites can be included in the certification during one of the following audits by expanding the certification. If a re-audit is required at one of the sites, only those areas showing nonconformities will be audited during this re-audit. 5. Including and Excluding Sites The organization has to constantly update the list of sites. Based on the certification contract, the organization has to inform the certification body immediately about changes. Moreover, the organization has to provide an updated list during the planning phase of the audit activities. Additional sites can be added to an already existing certificate as a result of a surveillance or recertification audit. To the addition of sites applies: - Expansion during the first surveillance audit: At least 50% of the new sites. - Expansion during the second surveillance audit: All new sites. - Expansion during the recertification audit: At least 50% of the new sites. The new sites are regarded as separate population when being included in the certification for the first time and accordingly included in the audit sample size. After a positive assessment, the sites are assigned to the existing population of the multi-site certification during the following surveillance or during the recertification audit. 6 ZNU 2017, 1st revision, as of 11 January 2017

7 6. Case Studies A summary of various examples for applying the multi-site certification: 1. Organization with a head office and adjoining production site (dual function) and 15 sales offices During the initial certification the head office and 40% of the sites are audited. With a population of 16 sites (15 branches plus 1 production site) this results in 6.4, i.e. 7 sites. During the first surveillance audit at least 20% of the population plus the head office are audited. This amounts to 3.2, i.e. 4 sites. Altogether, already 11 sites have been audited so far. During the last surveillance audit all remaining sites (5 sites) plus the head office must be audited in order to reach 100% of the population. Each site has to be audited at least once during the three years of validity. When auditing the production site together with the head office the special characteristics of the dual function have to be considered and the number of employees of the production site and head office must be added up. 2. Organization with a head office and an adjoining production site (dual function) and further production sites being geographically apart. The head office must be audited annually. The adjoining site is included in the population, meaning that the head office counts as head office with administrative functions and as site. If the head office is audited together with the adjoining production site, the audit costs for the total number of employees of the head office and the site will be jointly calculated. Due to the fact that a production site is adjoining in this case, a deduction based on the multi-site certification will only apply to the outsourced production sites. If the head office is audited without the adjoining site, only the number of employees of the head office will be the basis for calculating the audit costs. In case of 5 production sites, the head office and at least two production sites (40% of the population) have to be audited during the certification audit. As a consequence, the head office and at least one site (20% of the population) have to be audited during each of the surveillance audits. Please pay attention to the fact that all 5 production sites (100% of the population) have to be audited during the certification cycle. 3. Conversion of a site certification (single-site) into a multi-site certification in case of an organization with one head office and several sites. A second site is included after the first year of site certification. Further sites will possibly be included in the following years. A site certification will be expanded by a site during the first surveillance audit and thus turns into a multi-site certification. In this case, the head office and the new production site will be audited (at least 50% of the new sites during the first surveillance audit). The number of employees of the head office with the adjoining production site will only be jointly considered in case of joint auditing. The adjoining production site will be added to the population (in this case: 2 sites). If no further site will be added in the following year (second surveillance audit), usually one of the two production sites and the head office will be audited. If one or several sites will be added during the second surveillance audit, all new sites have to be audited at any rate. 7 ZNU 2017, 1st revision, as of 11 January 2017

8 4. Merging several site certifications (single-sites) into one multi-site certification Merging several single-site certifications into one multi-site certification may follow the launch of a central sustainability management system, for example. 5. Certification of the head office and one branch of a trading company. Further branches will be included in the following years. During the certification audit, the head office and one outsourced branch are audited. During the first surveillance audit, further branches shall be added, while the new branches are regarded as separate population (for example: 3 new branches, meaning that at least 40% = 2 branches have to be audited during the first surveillance audit). This way, the audit sample size and the population, respectively, will be increased. During the second surveillance audit, all branches of the multi-site certification which have not been audited yet must then be audited on site. The head office with the core sustainability management processes will be audited annually. ZNU Zentrum für Nachhaltige Unternehmensführung Universität Witten/Herdecke Alfred-Herrhausen-Straße 50 D Witten Germany Contact: Kesta Ludemann Phone. +49 (0) Fax. +49 (0) znu@uni-wh.de Web. 8 ZNU 2017, 1st revision, as of 11 January 2017