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Republic of the Philippines D4·2.2.1011

DEPARTMENT OF PUBLIC WORKS AND HIGHWAYS
CENTRAL OFFICE
Manila

2 2 APR 2022
DEPARTMENT ORDER ) SUBJECT: Control of Nonconforming Outputs
and Corrective Action Procedures

NO.
61 ~
)
Series of 2022..11
4 \ ~2 IlO').'1.-
)
In connection with the implementation of the Department's Quality Management System
CQMS) and its provisions, the DPWH shall evaluate the need for action to eliminate the
identified nonconformity and its causes so it does not recur or occur elsewhere. This shall be
done by reviewing and analyzing the nonconformity, determining the causes of the
nonconformity and determining if similar nonconformities exist, or could potentially occur.
Further, the DPWH shall implement any action needed and review the effectiveness of any
corrective action taken. With this, the Control of Nonconforming Outputs and Corrective
Action procedures and pertinent forms are hereby established.

This Order, which supports the QMS requirement on Nonconformity and Corrective Action,
shall take effect immediately and shall supersede the Mandatory Procedures DPWH-QMSP-
04 and DPWH-QMSP-OS as stated in Department Order No. 43, series of 2019.

ROGER G. MERCADO
Acting Secretary

End: Control of Nonconforming Outputs and Corrective'Action procedures and pertinent forms

1.3 JGT/AGC

Department of Public Works and Highways

Office of the Secretary

1111111111111111111111111111111111111
WIN2A04415
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Department of Public Works and Highways Issue Date:
Quality Management System Doc. Code: DPWH-QMSP-18

• Control of Nonconforming Outputs and

Corrective Action Procedures
Revision No.:
Page No.
05
Page 1of 7

1.0 Purpose

To define a system for identifying nonconforming outputs and applying the necessary
control to prevent its unintended use or delivery and establish standard procedure in
identifying nonconformities, determining the cause/s of nonconformities, and providing
action to ensure that nonconformities do not recur.

2.0 Definition of Terms

Correction Refers to an action or measure taken immediately or in the near

term to deal with the Non-Conformity. Shall be approved by the
QMS-Core Team Leader prior to implementation.
Corrective Action Refers to an action to be taken to eliminate the root cause of
the Non-Conformity and prevent its recurrence. This includes the
steps to be taken for the action to be implemented and requires
carrying out a root cause analysis prior to the formulation of the
action. It shall be feasible, appropriate and system-focused.
Shall be approved by the Process Owner prior to
implementation.
Disposition Refers to action taken concerning the detected nonconforming
output.
Nonconformity Refers to findings that are non-compliant to established QMS
(NC) standards (i.e., ISO 9001:2015 clauses, Department policies
and/or Laws) or failure to perform the standard process as
evident from the failure to present the documented evidence
during the audit period.
Nonconforming Refers to a good or service that DPWH is mandated to deliver
Output that does not meet established QMS standards (i.e., Department
policies and/or Laws).

Process Owner An office (i.e., Bureau, Service or Cluster) or group of offices

that has the authority and jurisdiction to standardize the
processes that are covered by the QMS. Standardization is made
thru issuance of policies, manuals and guidelines.
Root Cause The various tools that generally identify the causal or
Analysis (RCA) contributing factor/s that sets in motion the cause-and-effect
chain which resulted to a problem. If performed correctly, would
prevent recurrence of the identified problem. RCA may be
considered in any number of situations, but not limited to:
- Involving an unexpected risk event
- Process or product failure
 . -
Department of Public Works and Highways Issue Date:
Quality Management System
Doc. Code: DPWH-QMSP-18

• Control of Nonconforming Outputs and

Corrective Action Procedures

- Asset damage or loss

Revision No.:
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- Production stoppage
- Safety incident
- Quality degradation
- Customer dissatisfaction

3.0 General Procedure

3.1 Control of Nonconforming Output

Process Flow Responsible Details

Concerned Personnel Nonconforming output may be

Detect detected during receipt, storage,
nonconforming or internal processing. This
output detection shall be embedded in the
specific implementation of
processes in the DPWH Process
Model.

Concerned Upon detection of nonconforming

Apply disposition Personnel/Concerned output, shall apply any of the
Process Owner following:
• Eliminate and/or
address the detected
nonconforming output
based from existing
specialized procedure
enacted by the
concerned process
owner.
• Preclude its original
intended use.
• Take action when found
after delivery or use has
sta rted . '

Where applicable, accomplish the

Corrective Action Report (CAR)
Form (Annex A) in accordance with
the Corrective Action Procedure, or
the appropriate form designed by
the concerned Process Owner.
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Department of Public Works and Highways Issue Date:
Quality Management System
Doc. Code: DPWH-QMSP-18

• Control of Nonconforming Outputs and

Corrective Action Procedures
Revision No.:
Page No.
05
Page 3 of 7

Concerned Process Using statistical analysis on the

Review and
Owner frequency and severity of the
analyze the
occurrence, shall conduct
occurrence
evaluation on whether it exists
elsewhere, or is likely to recur or
potentially occur in another
process. The results of the
analytics shall be an additional
input in the evaluation of Risk and
Opportunity events.

Concerned Process Shall determine the extent of

Identify proactive
Owner actions that need to be
action plan
undertaken, based on the potential
effect of the nonconforming
output. This shall be accomplished
by observing the performance of
processes which yields the output
and how the proactive action plan
could potentially cause adverse
effects in another process and
identify necessary mitigating
actions, prior to implementation.

Implement Concerned Process Shall incorporate the proactive

proactive action Owner action plan thru a policy issuance
plan to be recommended by the Overall
QMS Head.
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Department of Public Works and Highways Issue Date:
Quality Management System Doc. Code: DPWH-QMSP-18

• 3.2
Control of Nonconforming Outputs and
Corrective Action Procedures

Corrective Action
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Process Flow Responsible Details

Identify Auditor/Initiator, Nonconformity may be identified

nonconformity Overall QMS Head, through, but not limited to, the
Overall QMS following:
Secretariat • Customer feedback and
complaints
• Conduct of Internal Quality
Audit
• Conduct of External Audit (3rd
Party)
• Critical incidents on day-to-
day operation where there is
non-fulfillment of any QMS
requirement

The NC shall clearly document the

criteria or requirement not being met
and the specific evidence that
demonstrate the existence of the NC.

Once identified, the CAR Form

(Annex A) shall be accomplished to
properly account the details of the
nonconformity and the
criterion/requirement it has violated.

The accomplished CAR Form shall

then be forwarded to the Overall
QMS Head, thru the Overall QMS
Secretariat. Once approved, a Copy
of the CAR Form shall be provided to
the Head of Office where the
Nonconformity was identified,
attention: Office QMS Core Team
Leader.
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Department of Public Works and Highways Issue Date:
Quality Management System Doc. Code: DPWH-QMSP-18

• Control of Nonconforming Outputs and

Corrective Action Procedures
Revision No.:
Page No.
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Page 5 of 7

Office QMS Core Shall review the nonconformity and

Review
Team Leader determine the possible cause/s using
nonconformity and
various Root Cause Analysis (RCA)
determine cause
methods. The result of the RCA shall
be used to identify options for the
correction and corrective action.

Prepare correction Head of Office Shall account and review the

and corrective correction and corrective action plans
action thoroughly in coordination with the
nonconforming office/unit/personnel
that are involved to ensure
implementation.

Approve the Process Owner Shall review and approve the

proposed action Representative proposed action plans by endorsing
the CAR forms to the Overall QMS
Head, otherwise will be returned for
improvement on the proposed
corrective action. This will also allow
the Process Owner Representative to
determine the need to reiterate or
revise the affected policy and/or
directive.

For CAR forms issued through

Internal Quality Audit, copies shall be
accounted by the Overall QMS
Secretariat. All else, copies are kept
by the concerned office.

Implement Office/U nit/Person nel Shall implement the approved action

correction and with the identified plans. The head of office andlor the
corrective action NC, and Head of QMS Core Team Leader shall oversee
Office and/or the the implementation of the action
QMS Core Team plans including the documentation of
Leader evidence together with the CAR form.
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Department of Public Works and Highways Issue Date:
Quality Management System
Doc. Code: DPWH-QMSP-18

• Control of Nonconforming Outputs and

Corrective Action Procedures
Revision No.:
Page No.
05
Page 6 of 7

IQA Auditor/Head of For CAR forms issued through the

Verify and close Nonconforming IQA, verification of effectiveness of
CAR form Office/U nit/Person nel, actions taken is done through the
and/or the QMS Core next scheduled IQA using the
Team Leader accomplished CAR form as basis of
commitments.

For other forms of NC issued outside

the IQA, verification is done by the
concerned process owner.

Also, revisit and update the Risk and

Opportunity Registers, if necessary.

Determine if the Overall QMS Head Summarize results of corrective

action plan is action and discuss the evaluative
effective analysis of effectiveness in the
Management Review. If the action
plan is implemented and found
effective, revision of existing
documents or creation of a new
document, which shall follow the
Control of Document Procedure, may
be recommended. This will consider
the need for changes to any of the
major processes within the DPWH
Process Model.

4.0 References

ISO 9001:2015 Standards

5.0 Attachments

(Annex A) Corrective Action Report (CAR) Form

 Department of Public Works and Highways Issue Date:
Quality Management System
Doc. Code: DPWH-QMSP-18

•
6.0 Approval
Control of Nonconforming Outputs and
Corrective Action Procedures
Revision No.:
Page No.
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Page 7 of 7

Reviewed by:

.MALIG

1.3 JGTjAGC
 Department of Public Works and Highways Issue Date: •
, .
Quality Management System

•
DPWH-QMSP-18-0 1-
Doc. Code:
RevOS
Corrective Action Report (CAR) Form Page No. Page 1 of 2

SECTION 1 - DETAILS OF NONCONFORMITY

(The auditor/initiator is to provide detailed evidence of the non-conformance)
~
SITE CAR NO: DATE I
RAISED:
Clause
Reference: CAR - of
Code -
Identified thru: _Customer Feedback/Complaint_Internal Quality Audit _Critical Incident __ Others (specify)

Description of the Nonconformity: (Include Evidence)

Issued by: Issued to: (Head of Office)

Sianature over Printed Name Signature over Printed Name

SECTION 2 - CLIENT RESPONSE AND PLANNED ACTIONS
(The client should conduct a thorough investigation of the circumstancesto correctly identify the Root Causers)involved and provide
a relevant response to address the Root Cause)
CORRECTION Proposed by Client
(What do you intend to do to correct the immediate problem)

Target Completion Date:

Date by which
Proposed By -
correction will be
(Client Rep):
Name and Signature implemented:
Client Analysis of the Root Cause
(What do you think caused the problem in the first place, and why?)

Analyzed by:
Name and Signature
 ,
Department of Public Works and Highways Issue Date: • c

Quality Management System

•
DPWH-QMSP-18-0 1-
Doc. Code:
RevOS
Corrective Action Report (CAR) Form Page No. Page 2 of 2

Client Description of the specific Corrective Actions taken, or planned to be taken

(What do you intend to do to address the Root Cause that you have identified above?)

Date by which
Proposed By -
(Client Rep): corrective action will
be implemented:
Nameand Signature

Approved By -
(Process Owner Date approved for
Rep): implementation:
Name and Signature

SECTION 3 - VERIFICATION OF EFFECTIVENESS

(For any response to non-conformance offered by the client during the actual audi~ the validating auditor must
carefully consider whether the rapid actions do indeed identify the correct Root Cause. In all case the C4Rs shall be
raised and decision with evidence recorded in the following section)
Auditor has reviewed and verified the correction and
corrective actions proposed and objective evidence of YES: NO:
implementation

Objective Evidence Presented

Justification for the above decision:

I hereby declare that the issued CAR, defined, corrected and validated by this form, CLOSED

Verified by : Verification Date:

Name and Signature of Validating Auditor

Acknowledged by: Closing Date:

Name and Signature of QMSHead