Module 6 Corrective Action Request (CAR) Overview CMQ101 - Course Introduction 6/1/2018 Module 6 Corrective Action Request (CAR) Overview Last update 4/21/2017

Module Terminal Learning Objective (TLO) Recall the Corrective Action Request (CAR) process for Engineering Change Proposals (ECPs), including DCMA’s role in determining the need for CARs.

Enabling Learning Objectives (ELOs) Identify Engineering Change Proposal (ECP) Corrective Action Request (CAR) causes leading to the determination of issuance based on supplier practices, program knowledge, repeatability and severity of the problem or issue. Given a scenario and supporting documentation and data, choose the applicable Corrective Action Request (CAR) escalation procedures.

Module Topics CAR Process CAR Escalation Procedures DCMA CAR eTool CAR Causes

What’s In It For Me (WIIFM)? What do you know about the Corrective Action Request (CAR)? What do you want to know about using the CAR in your role? What do you want to learn about your roles within DCMA organizational construct?

CME204 Engineering Change Proposal Review Corrective Action Request (CAR) Process

DCMA-INST 1201 Resource Page Image of DCMA-INST 1201 Resource page . Link to CAR instructional policy #1201 Image of policy link Link to Training Material Image of training for CAR link.

DCMA-INST 1201, Corrective Action Process Image of first page of DCMA-INST 1201, Corrective Action Process with date September 8, 2015.

CAR Process Description Supplier’s performance issue identified and discussed with the supplier’s Point of Contact (POC). Create, approve, and transmit a CAR to the supplier if the issue was a product non-conformance or a contractual or regulatory non-compliance Supplier responds to CAR

CAR Flowchart First, you will see it in its entirety. DCMA-INST-1201_Appendix A First, you will see it in its entirety. Then you will examine and explore smaller sections of the process within the flowchart.

CAR Flowchart, Cont. CAR Process Job Aid Image of CAR Flowchart Step 1 A contractor performance issue is identified and discussed with contractor POC. Step 2 Is issue a product non-conformance or contractual regulatory noncompliance? If the answer is no the process ends and goes to the business rule. If the answer is yes, step 3 is create a CAR followed by step 4 transmit CAR. Step 5 is contractor responds. Step 6 review contractor’s response. Step 7 Response acceptable? If the answer to step 7 is yes, but no violation then the flowchart moves to step 15 complete. If the answer to this question is no, then step 8 rejects the response and step 11 escalation required? If the answer is yes, then it goes to step 13 create escalated CAR and back to step 4 to repeat that part of the flowchart. If the answer to step 11 escalation required is no then step 12 is notify contractor, step 14 is document tracking, and it cycles from step 14 back to step 5 contractor responds and follows this phase of the flowchart again. If the answer to step 7 responses acceptable is yes, then step 9 is verify the contractor’s action and step 10 is verification satisfactory? If the answer to step 10 is no, then it returns to step 11 is escalation required. If the answer to step 10 is yes, then step 15 is complete.

CAR Flowchart: Identify Performance Issue DCMA reviews ECP Identifies non- compliance or non- conformance Noncompliance can be identified by customers and suppliers Image of CAR Flowchart Step 1 A contractor performance issue is identified and discussed with contractor POC. Step 2 Is issue a product non-conformance or contractual regulatory noncompliance? If the answer is no the process ends and goes to the business rule

CAR Flowchart: CAR Causes Frequent Misclassification (Class I vs Class II) Incorrect field information entered Incomplete TDP or a TDP not justifying need for ECP Image of CAR Flowchart Step 1 A contractor performance issue is identified and discussed with contractor POC. Step 2 Is issue a product non-conformance or contractual regulatory noncompliance? If the answer is no the process ends and goes to the business rule

CAR Flowchart: CAR Causes, Cont. Missing supporting Technical Data Package (TDP) Missing or improper coordination Image of CAR Flowchart Step 1 A contractor performance issue is identified and discussed with contractor POC. Step 2 Is issue a product non-conformance or contractual regulatory noncompliance? If the answer is no the process ends and goes to the business rule Identifying the cause determines if a CAR needs to be processed.

Identify CAR causes. (Select all that apply.) Knowledge Review Identify CAR causes. (Select all that apply.) Misclassification Incorrect field information entered Incomplete TDP or not justifying need for ECP Missing CARs Missing or improper coordination

What is the main purpose of ECP Corrective Action Request (CAR)? Knowledge Review What is the main purpose of ECP Corrective Action Request (CAR)? To determine the level of severity of non-compliance Address and resolve contract non- compliances/item non- conformances/deficiencies Provide monthly PARS and DAES assessments To provide data that can be analyzed to improve the process

CAR Flowchart: Generate A CAR Image of CAR flowchart, step 3 is create a CAR followed by step 4 transmit CAR. Step 5 is contractor responds. Initiated and tracked via CAR eTool Determine the level depending on severity of noncompliance (Chart on next slide) Suppliers respond to the CAR only if it is a level II or higher

CAR Flowchart: Level of Severity Level I Minor in nature Corrected promptly No need for root cause determination or further preventive action No response required Level II Not promptly correctable Warrant root cause analysis and preventive action Need action to determine if other products/services are affected Requires written response Level III Serious noncompliance, significant deficiency, failure to respond to lower level CARs, or failure to remedy recurring noncompliance Written response required Level IV Serious nature or Level III has been ineffective Mandatory review of contractual remedies

Think About… Consider the following questions: What is your experience using the CAR eTool? What are the pros and cons of the CAR eTool? Now take two minutes to share your thoughts with the person next to you.

DCMA CAR eTool Prepare and issue CARs to suppliers electronically Automatically generate and send CARs Track progress against them Store associated documents

Location of DCMA CAR eTool Image of DCMA CAR eTool pointing out the link to the CAR eTool.

Location of CAR User Manuals, Guides, Support Image of the CAR resource library and web-based training page.

CAR Flowchart: Minimum CAR Elements Matrix Table 2 Minimum CAR Elements Matrix Table 2 with the columns titled CAR Elements, Level I, Level II, Level III, Level IV, and Remarks. Row 1 name of the supplier and locations with Xs in Level I, II, III, IV and no remarks. Row 2 program(s) (if applicable) with Xs in Level I, II, III, IV and no remarks. Row 3 Contract number with Xs in Level I, II, III, IV and remarks read if this affects multiple contracts include a description of the applicable contracts. Row 4 contractual requirements reference(s) with Xs in Level I, II, III, IV and no remarks. Row 5 description of the noncompliance(s) which show(s) a clear departure from the stated requirement with Xs in Level I, II, III, IV and remarks that read identification of “CSI” or “SOF,” if the noncompliance is associated with CSI or SOF characteristics. Row 6 Date noncompliance observed with Xs in Level I, II, III, IV and no remarks. Row 7 date CAR approved with Xs in Level I, II, III, IV and remarks that read EVM only. Row 8 date CAR issued to supplier with Xs in Level I, II, III, IV and remarks that read if different than approved date. Row 9 due date for supplier’s response with Xs in Level II, III, IV and remarks that read not applicable to Level I CARs. For SOF, shall require an initial response from the supplier of no more than 5 working days. Row 10 individual issuing CAR with Xs in Level I, II, III, IV and no remarks. Row 11 individual approving CAR with Xs in Level I, II, III, IV with remarks that read if different than issuing individual. Row 12 disclaimer statement with Xs in Level I, II, III, IV with no remarks.

What does the DCMA CAR eTool allow? (Select all that apply.) Knowledge Review What does the DCMA CAR eTool allow? (Select all that apply.) Prepare and issue CARs to suppliers electronically Help complete any missing information in a TDP Automatically generate and send CARs Stores applicable CAR eTool training

CAR Flowchart: Review supplier’s Response DCMA reviews the supplier’s CAR response If acceptable verify implementation If unacceptable decide if escalation is required Step 6 review contractor’s response. Step 7 Response acceptable? If the answer to step 7 is yes, but no violation then the flowchart moves to step 15 complete. If the answer to this question is no, then step 8 rejects the response and step 11 escalation required? If the answer to this question is no, then step 8 rejects the response and step 11 escalation required? If the answer to step 7 responses acceptable is yes, then step 9 is verify the contractor’s action and step 10 is verification satisfactory? If the answer to step 10 is no, then it returns to step 11 is escalation required. If the answer to step 10 is yes, then step 15 is complete.

CAR Flowchart: CAR Escalation Procedure CARs are raised to the next level when a supplier is unwilling or unable to effect corrective action. Repetitive Level I or II CARs issued in a reasonably short period of time indicating a breakdown of one or more supplier processes or systems Supplier is nonresponsive to a CAR If the answer to this question is no, then step 8 rejects the response and step 11 escalation required? If the answer is yes, then it goes to step 13 create escalated CAR

CAR Flowchart: CAR Escalation Procedure, Cont. CARs are raised to the next level when a supplier is unwilling or unable to effect corrective action. Multiple rejections of the supplier's response for the same CAR. Recurring history of CAR response rejections indicating a breakdown of the supplier’s corrective action system If the answer to this question is no, then step 8 rejects the response and step 11 escalation required? If the answer is yes, then it goes to step 13 create escalated CAR

CAR Flowchart: CAR Escalation Procedure, Cont. CARs are raised to the next level when a supplier is unwilling or unable to affect corrective action. Supplier fails to implement corrective actions outlined in a CAR response. Supplier’s corrective actions are ineffective. If the answer to this question is no, then step 8 rejects the response and step 11 escalation required? If the answer is yes, then it goes to step 13 create escalated CAR

CAR Flowchart: CAR Escalation Procedure, Cont. Image of CAR Flowchart, step 12 is notify contractor, step 14 is document tracking, and it cycles from step 14 back to step 5 contractor responds and follows this phase of the flowchart again. If escalation is unnecessary, the supplier is notified that rework is required. Document tracking is implemented. The flow returns to step 5 in the flowchart where the supplier has to respond again. (Refer back to slide 11 in order to see the entire flow)

Knowledge Review If DCMA deems the supplier’s response to the CAR is acceptable, but the corrective action plan is not effective, what occurs? CAR can be completed CAR is escalated CAR is rejected Supplier notified/CAR tracked

Knowledge Review Identify two reasons why a CAR would need to be escalated. (Select all that apply.) Supplier fails to implement corrective actions Supplier responds too quickly Supplier has never had a CAR before Repetitive Level I or II CARs issued in a reasonably short period of time

CAR Flowchart: CAR Closure If corrective actions are appropriate to prevent recurrence of the non- compliance: Corrective action details should be recorded on the corrective action record Causes and follow-up actions should also be recorded Supplier is notified the CAR is closed Step 6 review contractor’s response. Step 7 Response acceptable? If the answer to step 7 is yes, but no violation then the flowchart moves to step 15 complete. If the answer to this question is no, then step 8 rejects the response and step 11 escalation required? If the answer to this question is no, then step 8 rejects the response and step 11 escalation required? If the answer to step 7 responses acceptable is yes, then step 9 is verify the contractor’s action and step 10 is verification satisfactory? If the answer to step 10 is no, then it returns to step 11 is escalation required. If the answer to step 10 is yes, then step 15 is complete.

Knowledge Review What are three items that should be included in a Corrective Action Report? (Select all that apply.) Follow up actions Causes Cost Corrective action details

Corrective Action Request (CAR) Overview Summary

Key Points Identifying and addressing contractual noncompliance Identifying causes of noncompliance Generating a CAR Reviewing a supplier’s response Escalating a CAR if required CAR Closure

Summary What did you know about Corrective Action Request (CAR) when you arrived? What did you want to know? What did you learn?

Questions?