Document Title

CORRECTIVE ACTION PROCESS

Document Number

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Document Title:

CORRECTIVE ACTION PROCESS

Approval of
Department / ISO JOWELL P. MAX
Section / Process DEPARTMENT CABRERA FANKHANEL MILA D. PEREZ
Owner
Department Originator Reviewed Approved

IMPORTANT:
This cover sheet is part of the procedure and is not to be discarded unless superseded by a revised issue.
Unauthorized reproduction is strictly prohibited.
 Document Title
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Document Number DMCI-IM-TQM-004

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REVISION HISTORY
Execution Revision Revision Description of Changes Page Originator Reviewed
Date Number Type Affected Date

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Document Number DMCI-IM-TQM-004

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CONTENTS

1. OBJECTIVE ……………………………………………………………….……….……………… 4

2. SCOPE …………………………………….…………………………………….…………………. 4

3. DEFINITION OF TERMS …………………………………………………….…….…………… 4

4. REFERENCE DOCUMENTS ………………………………………………………….…………. 6

5. RESPONSIBILITY AND AUTHORITY ……………………………………….………………. 6

6. PROCEDURE …………………………………………………………………………………….. 10

6.1. IDENTIFICATION OF NONCONFORMITY

6.2. ISSUANCE OF CORRECTIVE ACTION REPORT
6.3. ANALYSIS AND PROPOSAL OF CORRECTIVE ACTION/S
6.4. PERFORMANCE OF CORRECTIVE ACTION/S
6.5. VERIFICATION OF CORRECTIVE ACTION/S TAKEN
6.6. REVIEW OF EFFECTIVENESS OF CORRECTIVE ACTION/S
6.7. CLOSURE OF NONCONFORMITY

7. RISK MANAGEMENT ………………………………………………….……………………….. 19

8. FORMS ……………………………………………………………………………………………. 20

9. APPENDICES …………………………………………………………………….………………. 22

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1.0 OBJECTIVE

The objective of this procedure is establish and maintain a uniform and consistent
process of taking action to address nonconformities occurred at any stage of
implementation of the Integrated Management System of ISO 9001:2015, ISO
14001:2015 and OHSAS 18001:2007 through proper identification, issuance,
evaluation of corrective action, verification of its effectiveness and documentation of
non-conformities (NCs) identified during and after the delivery of products and
services.

2.0 SCOPE

This procedure is applicable at any stage/s of implementation of the Integrated

Management Systems ISO 9001:2015, ISO 14001:2015 and OHSAS 18001:2004
requiring action to control nonconforming outputs and its cause/s identified before,
during and after delivery of products and services.

3.0 DEFINITION OF TERMS

Nonconformity (NC) Any instance where practice or evidence does not fulfill the
requirements. This may be also a condition of “work in place" or
"work in progress" that lacks agreement or conformity, and which
cannot be corrected in the normal course of action.
Minor Nonconformity A deficiency that may not lead to a breakdown of the company’s
Integrated Management System. This may be due to lapses, failure
or improper implementation of established system and
requirements. Several or continuous commission of Minor Non-
conformities could result to Major Nonconformity.
Major Nonconformity A deficiency that involves a serious non-compliance to the
standards that leads to the serious breakdown of the company’s
Integrated Management System.
Punchlist / Snags Workmanship deficiency that can be corrected in a manner that will
not require large amount of resources and time. Can be closed by
“Making Good” repairs.
Corrective Action A report detailing the nonconformity identified to make an
Report unambiguous, defensible, clear and concise definition of the
problem so that corrective action can and will be initiated. This
report also includes an analysis of the root cause of the
nonconformity, request for approval and execution of corrective

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action/s, verification and review of the effectiveness of the

corrective action/s.
Issuing Entity (IE) Any Personnel, Department or Company who has the first-hand
knowledge of the nonconformity identified. The Personnel,
Department or Company who raise and issue the Corrective Action
Report
Head of Issuing The Head of the QA/QC, OH&S, EMS, ISO or TQM who have
Entity (HIE) jurisdiction over level wherein the nonconformity was identified.
Responsible Entity Personnel, Department or Company who committed and
(RE) responsible for the nonconformity.
Head of Responsible The Project Manager, Department Head, SBU Head, Support BU
Entity (HRE) Head or General Manager of the Responsible Entity (RE) who
committed the nonconformity.
Correction/Immediate Short term actions that can be implemented to quickly address part
Action or full cause of the nonconformity.
Corrective Action Long term actions taken to eliminate the cause/s of an existing
nonconformity in order to prevent recurrence.
Source The activity or process from where the nonconformity is identified.
CAR No. A unique numbering that shall be provided to the issued
Corrective Action Report.
Classification The classification of nonconformity issued. It can be generally
classified as a Major or Minor Nonconformity.
Affected Clause(s) or ISO Standard, Contractual, Regulatory, Legal or Internal
Procedure(s) requirement where nonconformity was observed. It may also be
the quality, environmental, health and safety process / procedure
of DMCI Integrated management system from where the
nonconformity was observed.
Time limit to reply The expected duration the Issuing Entity (IE) will receive the
Corrective Action Request (CAR) proposed by the Responsible
Entity (RE). The HIE shall determine the most practical and
reasonable time period the RE can respond.
Statement of Description of the nonconformity observed including relevant
Nonconformity information such as specific material or equipment description,
location, area, quantity, specific procedure or outputs where the
nonconformity was observed.
Reason for re- Reason for re-issuance of CAR if there is no response on the
issuance requested corrective action within the specified duration, or the
corrective action taken does not satisfy the specified requirements.
Root Cause Factor/s that caused a nonconformity and should be permanently
eliminated through process improvement using industry standard
and/or proven systematic Problem Analysis Tools.
Completion date The date the correction/corrective action will be completed.

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Concession Permission to use or release a product or service that does not

conform to specified requirements.
Relevant Parties Personnel, Department or Company that may be directly or
indirectly affected in the execution of Corrective or Preventive
Actions.
Correction Action to eliminate a detected nonconformity
Preventive Action Action to eliminate the cause of a potential nonconformity or other
potential undesirable situation
Problem Analysis Industry standard tools to analyze the cause of nonconformity such
Tools as Fishbone Diagrams, 5 Whys, Root Cause Analysis, Pareto
Principle, Process Flow Chart, Problem Trees.

4.0 REFERENCE DOCUMENTS

5.1 ISO 9001:2015 Standard, Clause No. 10.2

5.2 ISO 14001:2015 Standard, Clause No. 10.2
5.3 OHSAS 18001:2007 Standard, Clause No. 4.5.3.2
5.4 Internal Audit Procedure Control of Records Procedure
5.5 Preventive Action Process
5.6 Customer Focus Procedure
5.7 Control of Nonconforming Outputs Process

5.0 RESPONSIBILITY AND AUTHORITY

5.1 Issuing Entity (IE)

The Issuing Entity (IE) can be the following:

Stages/Source Issuing Entity (IE) Responsible Entity

(RE)
Internal Audit Internal Auditor Sections Staff or Head
Lead Auditor Department Staff or Head
Process Owner
Material Handling Operations Staff or Head Warehouse Stock Clerk
and Storage QA/QC Staff or Head Operations Staff or Head
Warehouse Stock Clerk Subcontractors
In-process Department Supervisor Section Staff or Head
Inspection Project Manager Department Head
QA/QC Satff or Head Subcontractor

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Final Inspection Department Head Section Staff or Head

Project Managers Department Head
QA/QC Head Subcontractor
Testing and Department Staff or Head Section Staff or Head
Commissioning Project Manager Department Staff or Head
QA/QC Head Subcontractor
Project Turn-Over QA/QC Staff or Head Section Staff or Head
Department Staff or Head
Interested Parties Department Managers / Section Head
Complaints DMR Project Manager
Department Head
Subcontractor
Self- Generated Department Head or Staff Department Head or Staff
Section Head or Staff Section Head or Staff
Design Customer Technical Services
Consultant Personnel
QA Personnel
Internal Products Project Department Head Support BU Department
and Services or Staff Head
Support BU Head

IE shall be responsible for:

5.1.1 Identifying and investigating nonconforming inputs, processes and/or

outputs in the conduct of producing the products and rendering of
services.

5.2 Head of Issuing Entity (HIE)

The Head of Issuing Entity shall be the following:

Level Head of Issuing Entity (HIE)

Quality Occupational Environment
Health & Safety
Project Level Project QA/QC Project Safety Project
Head Officer Environmental
Officer

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Support BU Support QA/QC Support Safety Support

Head Officer Environmental
Officer
SBU Level SBU QA/QC SBU Safety Head SBU Environmental
Manager Head
Corporate Corporate QA/QC Corporate OH&S Corporate
Level Head Head Environmental
Head
Executive TQM Manager TQM Manager TQM Manager
Level
Integrated DMR – QMS DMR – OH&S DMR – EMS
Management
System

HIE shall be responsible for:

5.2.1 Investigating and evaluating the validity of the Corrective Action Report
prior to issuance.

5.2.2 Evaluating the need for action to eliminate the cause (s) of the
nonconformity, in order that it does not recur or occur elsewhere.

5.2.3 Determining if similar nonconformities exist, or could potentially occur.

5.2.4 Reviewing the root cause analysis and corrective action/s proposed by
the Responsible Entity (RE).

5.2.5 Verifying and reviewing of the effectiveness of any corrective action

taken.

5.2.6 Closing of Corrective Action Report (CAR) after corrective action/s and
its effectiveness have been demonstrated.

HIE shall have the authority to:

5.2.7 Reject the proposal or implementation of corrective action/s in case of:

a) Non-Compliance to contract provisions

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b) Unsafe work practice & condition

5.3 Responsible Entity (RE)

RE shall be responsible for:

5.3.1 Determining the cause/s of the nonconformity through a systematic

problem analysis.

5.3.2 Proposing immediate and long term action to control and correct the
nonconformity.

5.3.3 Implementing action/s on controlling and correcting the nonconformity

and its consequences.

5.4 Head of Responsible Entity (HRE)

The Head of Responsible Entity (HRE) shall be the following:

Level Head of Responsible Entity

Project Project Manager
Support BU General Manager / Support BU Head
Department Department Head
SBU Level SBU Head
Corporate Level Corporate Department/Section Head
Executive Level General Manager

HRE shall be responsible for:

5.4.1 Requesting approval of proposed immediate and long term corrective

actions from the Head of Issuing Entity (HIE).

5.4.2 Disposition of non-conforming materials, structures, product and/or

services.

5.4.3 Requesting closure of Corrective Action Report (CAR) from the Issuing
Entity (IE) after corrective actions and its effectiveness have been
demonstrated.

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5.4.4 Updating risks and opportunities determined during planning, if

necessary.

5.4.5 Proposing change/s to the quality management system, if necessary to

prevent recurrence of nonconformities.
5.5 Deputy Management Representative (DMR)

5.5.1 DMR shall be responsible for consolidating the CAR issued by the
Internal Auditors and Lead Auditor for update to CAR Control Register

5.6 Lead Document Controller (LDC)

5.6.1 LDC shall be responsible for consolidating the Self-generated CAR

issued by projects/departments

6.0 PROCEDURE

6.1 Identification of Nonconformity

6.1.1 All personnel performing processing duties are responsible for

identifying and raising nonconformities in the course of their normal
work activities.

6.1.2 Nonconformities may be identified but are not limited to the following
sources:

c) Internal Audit
d) Inspection, Checking, Examination and/or Investigation
e) Customer or any Third Party Complaints
f) Testing
g) Self-Generated / Self-Analysis
h) Review, Evaluation and/or Assessment
i) Or any other forms of Audits, Testing and Inspection

6.2 Issuance of Corrective Action Report

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6.2.1 The person of the Issuing Entity (IE) who identified and has first-hand
knowledge of the nonconformity shall prepare the Corrective Action
Report (CAR) Section 1: Nonconformity Report.

6.2.2 Punchlist or Snags, observations and other workmanship deficiency that

can be corrected in a manner that will not require large amount of
resources and time by “Making Good” repairs shall not be categorized
as nonconformity and shall be closed out in accordance with the Quality
Assurance / Quality Control Process and Project Turn Over Procedure.

6.2.3 If the source of the complaint is from external sources such as Customer
or Third Party Stakeholders, the Head of Issuing Entity (HIE) shall
validate the report accordingly. If the report is found to be valid, the
HIE shall issue Corrective Action Report (CAR) described in this process
to the Responsible Entity (RE) adapting/endorsing the complaint/report
from external sources.

6.2.4 If the complaint/report is found to be invalid, the Head of Responsible

Entity shall communicate in writing with the Customer/Third Party
Stakeholders to repudiate the external complaint or report.

6.2.5 The Section 1: Nonconformity Report of Corrective Action Report (CAR)

shall contain information but are not limited to the following:

a) Source
b) CAR No.
c) Classification
d) Issuing Entity (IE)
e) Responsible Entity (RI)
f) Affected Clause(s) or Procedure(s)
g) Time limit to reply
h) Statement of Nonconformity
i) Reason for re-issuance
j) Does this problem can potentially occur elsewhere?

6.2.6 Once accomplished, the accomplished Corrective Action Report (CAR)

Section 1 shall be submitted to Head of Issuing Entity (HIE) for review
and approval to issue.
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6.2.7 The Head of Issuing Entity (HIE) shall review and assess the Corrective
Action Report (CAR) Section 1 if:

a) The CAR Section 1 contains all the related facts, accurately conveys
the facts, fully explained in brief terms, can be understood for
prompt action, categorized, traceable and verifiable.

b) The CAR Section 1 information is sufficient in form and substance

such that its existence leads to the occurrence of the described
nonconforming event.

c) The nonconformity identified is valid based on the scope and limit

governing the conduct of the process or of the requirement of the
product and services.

d) Time limit to reply is as reasonable and practical as possible.

e) Classification of nonconformity identified is correct and is in

accordance with the Appendix 4: Nonconformity Classification
Guide. In case of uncertainty, the Head of Issuing Entity shall
request clarification to next higher level of authority based on the
Jurisdiction Guide Matrix in Appendix 3.

6.2.8 Upon conformity, the Head of Issuing Entity (HIE) shall issue the
Corrective Action Report to the Responsible Entity (RE). All issued CAR
shall be assigned with its own CAR control no. in accordance with
Control of Documents Procedure.

6.2.9 If provision/s of the Corrective Action Report (CAR) Section 1 is/are

found to be incomplete/inadequate based on conditions described in
6.2.5, the Head of Issuing Entity (HIE) shall recommend the revision of
the Nonconformity Report to the Issuing Entity (IE).

6.2.10 The process described in 6.2.1 to 6.2.5 shall be repeated until the Head
of Issuing Entity accepts/recommends the issuance of the Corrective
Action Report (CAR).

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6.3 Analysis and Proposal of Corrective Action/s

6.3.1 Upon receipt of the Corrective Action Report (CAR), the Responsible
Entity (RE) shall identify and fill up Section 2: Analysis and Corrective
Action with includes the following:

a) Root Cause
b) Correction/Immediate Action
c) Corrective Action
d) Preventive Action (for OH&S)
e) Completion date

All nonconforming outputs shall be controlled in accordance with

process described in Control of Nonconforming Outputs Procedure.

6.3.2 In case the nonconformity observed have the potential of occurring

similarly elsewhere, the Process Owners shall review the root cause
analysis and determine the company wide corrective actions to address
the nonconformity in the QA/QC Meetings, Safety Meetings and/or
Operations Center Meetings.

6.3.3 In case of dispute, the Responsible Entity after careful evaluation found
that the provision or the entirety of Corrective Action Report (CAR)
issued is invalid, the Head of Responsible Entity (HRE) shall
communicate in writing to the Head of Issuing Entity to repudiate the
Corrective Action Report (CAR) issued. Resolution of dispute shall be
decided by the next/higher level of authority who have jurisdiction and
governance over both the Issuing Entity (IE) and Responsible Entity
(RE). The matrix of jurisdiction/authority over disputes is described in
the Appendix 3: Jurisdiction Guide.

6.3.4 The Responsible Entity (RE) shall submit the accomplished Corrective
Action Report (CAR) Section 2: Analysis and Corrective Action to the
Head of Responsible Entity (HRE) for review prior to submission to the
Head of Issuing Entity (HIE).

6.3.5 The Head of Responsible Entity (HRE) shall review and assess the
Corrective Action Report (CAR) Section 2 if:

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a) The analysis and proposed corrective action/s are adequate such

that it leads to the proper implementation of action to correct the
nonconformity and prevent recurrence (for OH&S only).

b) The proposed corrective action is doable/workable based on the

existing conditions and based on industry recognized
methods/process that will lead to compliance of the requirement of
the process, product and/or service.

c) Completion date set is at the shortest possible time and is

achievable based on the existing conditions.

6.3.6 The Head of Responsible Entity (HRE) shall coordinate as necessary

with other concerned parties/department that may be affected by the
implications of the proposed corrective actions.

6.3.7 Upon conformity, the Head of Responsible Entity shall submit the
Corrective Action Report (CAR) Section 2 to the Head of Issuing Entity
(HIE) for approval.

6.3.8 The Head of Issuing Entity (HIE) shall evaluate the Corrective Action
Report (CAR) Section 2 if conforming to the conditions described in
6.3.5. The HIE shall identify and coordinate with other concerned
parties relevant to review the submitted CAR Section 2.

6.3.9 The relevant parties shall review the implications of the proposed
corrective actions in terms of safety, quality, cost, and time. The Head
of Issuing Entity (HIE) shall collate and integrate the comments and
suggestions of the concerned parties. The decision to approve or reject
the Corrective Action Report (CAR) Section 2 shall be based on this
collective comments.

6.3.10 The Head of Issuing Party shall approve the Corrective Action Report
(CAR) Section 2 if the proposed corrective action and other provisions
are acceptable.

6.3.11 If provision/s of the proposed Corrective Action Request (CAR) Section

2 is/are not acceptable, the Head of Issuing Entity (HIE) shall reject the
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CAR Section 2 based on the conditions described in 6.3.5 and issue

relevant comments and suggestions. The CAR shall be retuned to the
Head of Responsible Entity (RE) for revision.

6.3.12 The Responsible Entity (RE) shall revise the Corrective Action Report
(CAR) Section 2 to comply with the comments and suggestions of the
Head Issuing Entity (HIE) and resubmit the revised CAR to the HIE for
approval. The process described in 6.3.1 to 6.3.9 shall be repeated until
approval of the CAR.

6.3.13 In case of dispute, resolution shall be decided by the next/higher level

of authority who have jurisdiction and governance over both the Issuing
Entity (IE) and Responsible Entity (RE). The matrix of
jurisdiction/authority over disputes is described in Appendix 3:
Jurisdiction Guide.

6.4 Performance of Corrective Action/s

6.4.1 The Responsible Entity (RE) shall notify the Issuing Entity (IE) of the
schedule when actions to correct the nonconformity will take place and
other activities thereafter deemed necessary to show evidence that the
corrections (immediate) and corrective actions (final) made is in
accordance with the approved Corrective Action Report Section 2
(CAR).

6.4.2 The Responsible Entity shall perform necessary actions to correct the
nonconformity in accordance with the approved Corrective Action
Report (CAR) Section 2. In case of necessary deviation, the Responsible
Entity (RE) shall notify the Issuing Entity (IE) and amend the CAR in
agreement.

6.5 Verification of Corrective Action/s Taken

6.5.1 The Responsible Entity (RE) shall request inspections as necessary to

the Issuing Entity (IE) before, during and after the conduct of correction
and corrective action/s in order to show conformity to the agreed
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corrective actions described in the approved Corrective Action Request

(CAR) Section 2.

6.5.2 The Responsible Entity (RE) shall submit necessary compliance reports
together with Corrective Action Report (CAR) to the Issuing Entity (IE)
after the completion of correction and corrective action/s. These reports
shall include evidences or proof of conformance showing that the
corrections and corrective actions were performed in accordance with
the approved Corrective Action Request (CAR). This may include but
are not limited to the following:

a) Inspection Reports with pictures or other documentary evidence

duly signed by the Issuing Entity (IE)
b) Third Party Certifications and/or Test Reports
c) Letter of Acceptance (for third party complaints)
d) Concession Agreement

6.5.3 The Issuing Entity (IE) upon the receipt of the compliance reports shall
conduct final verification if the approved corrective action/s were
performed accordingly and is implemented within the prescribed
duration described in the approved Corrective Action Report (CAR)
Section 2.

6.5.4 Deviations from the approved CAR Section 2 identified during the final
verification that can potentially affect or compromise the effectiveness
of the corrective action taken shall constitute a nonconformity and shall
be addressed accordingly with the same process of Corrective Action
Report issuance.

6.5.5 The process described from 6.5.1 to 6.5.3 shall be repeated until the
conformance to the approved corrective and/or preventive action/s is
demonstrated.

6.5.6 In case of dispute, resolution shall be decided by the next/higher level

of authority who have jurisdiction and governance over both the Issuing
Entity (IE) and Responsible Entity (RE). The matrix of
jurisdiction/authority over disputes is described in the Jurisdiction Guide
in Appendix 3.
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6.6 Review of Effectiveness of Corrective Action/s

6.6.1 After the performance of the corrective action/s, a review of its

effectiveness shall be conducted by the Issuing Entity (IE). The Issuing
Entity (IE) shall seek evidence that the corrective action taken is
effective in eliminating or reducing (if complete elimination is not
possible) the cause of nonconformity and not only the symptoms.

6.6.2 The Issuing Entity (IE) shall notify the Responsible Entity (RE) of the
schedule and scope of review to be conducted.

6.6.3 Review of Effectiveness of Corrective Action can be performed through

the following activities as applicable:

a) Evidence gathering – Gathering of documentary evidences through

sampling to show the effectiveness of the corrective action taken.
Sample size shall be determined and proportioned with respect to
the magnitude of the nonconformity. Evidence of effectiveness shall
include but are not limited to the following:

1) Succeeding Process Records

2) Third Party Feedbacks
3) Revision of Procedures
4) Evidence of communication activities to relevant parties
5) Training Records

b) First-Hand Observation / Audit

1) Did the actions address problem causes, instead of just
symptoms?
2) Are the actions fully implemented?
3) Have procedures been revised or developed?
4) Are employees aware of and knowledgeable about the
changes?
5) Are products or outputs improved?
6) Has measurement or monitoring been established?
7) What is the customer's perception of an improvement?
8) Has the problem reoccurred?
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9) Is top management aware of the corrective action?

6.6.4 All observations and comments shall be recorded in the Corrective

Action Report (CAR) Section 3: Corrective Action Follow Up and
Verification by the Issuing Entity (IE).

6.6.5 The process described from 6.6.1 to 6.6.4 shall be repeated until the
conformance to the approved Corrective Action Request (CAR) Section
3 is demonstrated.

6.6.6 In case of dispute, resolution shall be decided by the next/higher level

of authority who have jurisdiction and governance over both the Issuing
Entity (IE) and Responsible Entity (RE). The matrix of
jurisdiction/authority over disputes is described in the Jurisdiction Guide
in Appendix 3.

6.7 Closure of Nonconformity

6.7.1 If the corrective action/s during the review are found to be effective
and performed in accordance with the approved Correction Action
Report (CAR) Section, the Issuing Entity (IE) shall recommend closure
of the Corrective Action Report to the Head of the Issuing Entity (HIE).
The Head of Issuing Entity shall sign and affirm the closure of the
nonconformity by accomplishing the Corrective Action Report (CAR)
Section 4: Closing of Corrective Action Report.

6.8 Non-Performance, Disputes and Resolution

6.8.1 In the event that the Responsible Entity (RE) failed to act on the
nonconformity issued within the prescribed period, the Issuing Entity
(IE) shall reissue the Corrective Action Report to the Responsible Entity
(RE). The Responsible Entity (RE) shall take the necessary actions
within seven (7) working days from the date of re-issuance.

6.8.2 In the event that the Responsible Entity (RE) deliberately delayed or
failed to act on the re-issued nonconformity within seven (7) working
days from the date of issuance, the Issuing Entity (IE) shall coordinate
with the Integrated Management Representative (IMR) to issue Second
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(2nd) Corrective Action Report (CAR) to the Strategic Business Unit Head
(SBU Head) for nonconformities identified within SBU level or the
General Manager (GM) for nonconformities identified on the corporate
level. The SBU Head or the General Manager shall take necessary
actions to resolve the nonconformity.

6.8.3 In the event that SBU Head or the General Manager failed to act within
fourteen (14) working days from the date of issuance, the IMR shall
issue the third (3rd) Corrective Action Report (CAR) to the President.
The President shall take necessary actions to resolve the
nonconformity.

6.8.4 Result of verification of CARs shall be reported in the scheduled

Management Review. This also includes CAR issued by PCO/SO
concerning compliance to legal requirements. In case there are pending
compliance to legal requirements, IMR/DMR shall generate a report and
submit the same to the President for immediate action.

6.8.5 In case of dispute, resolution shall be decided by the next/higher level

of authority who have jurisdiction and governance over both the Issuing
Entity (IE) and Responsible Entity (RE). The matrix of
jurisdiction/authority over disputes is described in the Jurisdiction Guide
in Appendix 3.

6.9 Recording and Storage

6.9.1 The Project QA/QC Head/DMR shall update the Corrective Action Report
(CAR) control register to reflect the status of the corrections taken.

7.0 RISK MANAGEMENT

Control / Solution Responsible

Risk Consequence/s
/ Mitigation
1. Procedure is not  Nonconforming Annual conduct of Corporate
carried out product and services Internal Audit QA/QC Head /
Integrated

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 Unintended delivery Management

and use Representative
nonconforming
products and
services

2. Personnel  Nonconforming Annual ISO Integrated

implementing the product and services Awareness Training Management
procedure is not  Unintended delivery Representative
competent leading to and use
ineffective nonconforming
implementation of products and
procedure services

3. Inadequate  Non-performance of Annual review of Corporate

resources to conduct procedure resources and proper QA/QC Head /
the process and allocation Integrated
internal audit leading Management
to ineffective Representative
implementation of
procedure

4. Procedure is not  Nonconforming Annual review of Corporate

effective or flawed product and services procedure and QA/QC Head
 Unintended delivery amendment as
and use necessary
nonconforming
products and
services

8.0 FORMS

Form Title Document Storage Responsibility

Number Retention Location
Time
Corrective Action Report 2 years ISO Department DMR
(Ground Flr. DMCI
Annex Bldg.) /
Project
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CAR Control Register 2 years ISO Department DMR

(Ground Flr. DMCI
Annex Bldg.) /
Project

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9.0 APPENDICES

APPENDIX 1: PROCESS FLOW CHART

INPUT PROCESS OUTPUT

Issuing Entity (IE) identified a Issuing Entity (IE) to investigate the Nonconformity Closure of Nonconformity
nonconformity

Issuing Entity to prepare a Corrective Action Report (CAR) Checkpoint:

Dept. Head of Issuing Entity
(HIE) check if the CAR is valid

Rejection: Acceptance:
Issuing Entity (IE) to revise the Corrective Head of Issuing Entity (HIE)
Action Report to issue the CAR to the
Responsible Entity (RE)

Checkpoint:
Responsible Entity to prepare a Corrective Action Report
Depart. Head of Responsible
(CAR) Section 2: Analysis and Corrective Action Plan Entity (HRE) check if the CAR
is correct

Rejection: Acceptance:
Responsible Entity (IE) to revise the CAR Responsible Entity (IE) to submit CAR
Section 2 Section 2 to Issuing Entity (IE)

Dept. Head of Issuing Entity (HIE) to review the CAR Section 2

Rejection: Acceptance:
Responsible Entity (IE) to revise the Responsible Entity (IE) to perform corrective action/s
CAR Section 2

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Checkpoint:
Issuing Entity (HIE) to conduct verification of corrective Head of Issuing Entity (HIE) to
action taken check if corrective action is
performed correctly

Rejection:
Responsible Entity (RE) to conform to
CAR Section 2

Acceptance:
Responsible Entity (RE) to conduct Review of Effectiveness
of Corrective Action and accomplish CAR Section 3

Rejection:
Acceptance:
Responsible Entity to revise CAR
Dept. Head of Issuing Entity (HIE) to close nonconformity
and sign-off CAR Section 4.

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APPENDIX 2: FORMS

1. Corrective Action Report (CAR)

2. CAR Control Register

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APPENDIX 3: JURISDICTION GUIDE MATRIX

Level Issuing Entity Responsible Entity Arbiter / Mediator

Project Level Project QA/QC Head Project Department SBU QA/QC
Head or Staff Manager
Project Safety Officer Project Department SBU Safety Head
Head or Staff
Project Environmental Project Department SBU Environmental
Officer Head or Staff Head
SBU Level SBU QA/QC Manager SBU Department Corporate QA/QC
Head Head
SBU Safety Head SBU Department Corporate OH&S
Head Head
SBU Environmental Head SBU Department Corporate
Head Environmental Head
Corporate Level Corporate QA/QC Head, Corporate TQM Manager
Corporate OH&S Head or Department Head
Corporate Environmental
Head
Executive Level Integrated Management General Manager President
Representative / TQM
Manager

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APPENDIX 4: NONCONFORMITY CLASSIFICATION GUIDE

I. IMS INTERNAL AUDIT

A. Major Nonconformity

1 Non-compliance to a whole sub-clause or a combination of minor non-conformities within a

sub-clause of the Integrated Management System.
2 Non-conforming products/services which reached the customer, recurring or with effect on
the achievement of targets, which have not been addressed properly by a Corrective Action
Report (CAR);
3 Valid & critical customer complaints which have not been properly attended and closed;
4 Repeated failure to achieve Quality Environmental Health and Safety Objectives targets.
5 Non-performance of a process requirement/s which resulted to critical customer complaint
or non-compliance to legal requirements.
6 Failure to comply the Compliance obligation accordingly.
7 Operational Control breakdown for various sites.
8 Actual accident at the time of external audit.

B. Minor Nonconformity

1 Discrepancy or lapse in discipline in the defined IMS which have not been addressed
properly by a CAR; and
2 Non-compliance to a certain aspect of a sub-clause of ISO 9001:2015, ISO 14001:2015
and ISO 18001:2007 standards.

Note: Audit findings that are reported as Potentially Nonconformity, Observation and
Opportunities for Improvement do not need CAR issuance but shall be logged and monitored
for actions taken.

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II. QUALITY ASSURANCE / QUALITY CONTROL

A. Major Nonconformity

1 Any nonconformity which may result in failure or reduce the usability of the products or
services for the intended purpose and which cannot be completely eliminated by rework or
reduced to a Minor Nonconformity by an approved corrective action/s.
2 Any nonconformity which may result in hazardous or unsafe conditions for individuals using,
maintaining or depending upon the products or services.
3 Nonconforming products/services which reached the customer, recurring or with adverse
effect on the achievement of targets, which have not been addressed properly by CAR;
4 Valid & critical customer complaints which have not been properly attended and closed;
5 Repeated failure to meet quality standards requirement which drastically affects
product/service delivery due to lack of or poor quality and execution of CAR.
6 Non-performance of a process requirement/s which resulted to critical customer complaint
or non-compliance to statutory, regulatory or legal requirements.
7 Nonconforming products/services which may result to major cost overruns and major delays
that affect the customer’s schedule or the delivery of the product and services.
8 Non-performance of a process requirement/s which resulted in the rejection of incoming
resources, complete rework or the rejection of a batch of finished product.
9 Lack of or deficiency of existing process or procedure that may result to nonfulfillment of
quality requirements.

B. Minor Nonconformity

1 Any nonconformity which does not adversely affect the performance, durability,
interchangeability, reliability, maintainability, effective use or operation, appearance, health
or safety of a product.
2 Isolated occurrence of nonconformity that does not directly affect the customer which
creates little or no waste and can be rectified quickly, easily, and inexpensively.

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III. OCCUPATIONAL HEALTH AND SAFETY

A. Major Nonconformity

1 Any nonconformity which may result in hazardous or unsafe conditions for individuals using,
maintaining or depending upon the products or services.
2 Refusal or failure to conform to accepted standards, rules or laws resulting to detrimental
effect on individual’s well-being and safety.
3 Unsafe or hazardous products/services which reached the customer, recurring or which have
not been addressed properly by CPAR;
4 Valid & critical customer complaints which have not been properly attended and closed;
5 Repeated failure to meet OH&S standard requirement/s which drastically affects the safety
and well-being of individuals due to lack of or poor execution of CPAR.
6 Non-performance of a process requirement/s which resulted to critical customer complaint
or non-compliance to statutory, regulatory or legal requirements.
7 Nonconforming practices which may result to major accident or near miss.
8 Lack of or deficiency of existing process or procedure that may result to nonfulfillment of
OH&S requirements.

B. Minor Nonconformity

1 Any nonconformity which does not adversely affect the health or safety of an individual,
product produced or services rendered.
2 Isolated occurrence of nonconformity that does not directly affect an individual which
creates little or no waste and can be corrected quickly, easily, and inexpensively.

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IV. ENVIRONMENT

A. Major Nonconformity

1 Refusal or failure to conform to accepted standards, rules or laws resulting to detrimental

impact on the environment.
2 Valid & critical customer complaints which have not been properly attended and closed;
3 Repeated failure to meet EMS standard requirement/s which drastically impacts the
environment due to lack of or poor execution of CAR.
4 Non-performance of a process requirement/s which resulted to critical customer complaint
or non-compliance to statutory, regulatory or legal requirements.
5 Nonconforming practices which may result to major environmental catastrophe or disaster.
6 Lack of or deficiency of existing process or procedure that may result to nonfulfillment of
environmental requirements.

B. Minor Nonconformity

1 Any nonconformity which does not have significant impact on the environment in the
conduct of the business.
2 Isolated occurrence of nonconformity that does not have direct impact on the environment
which creates little or no waste and can be corrected quickly, easily, and inexpensively.

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