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Corrective Action Report (CAR)

Definition of Corrective Action Report (CAR):

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A Corrective Action Report is a procedure used to respond to a defect and originate a corrective action. It means that you are documenting a nonconformance and taking action to prevent the problem from occurring again. Usually, when a defect is discovered, a project manager or contractor will issue a CAR to the responsible party. But, CARs can also be asked for by a client.

The main objective of CAR is to investigate a problem that occurred, using root cause analysis, and reach a resolution to prevent the defect from reoccurring.

Benefits of Corrective Action Reports

  1. The main goal of CAR development is keeping mistakes from occurring time and time again. Repeated mistakes can have disastrous effects on an organization, including low employee morale, poor working conditions and unhappy customers who have potentially unsafe products.
  2. CARs provide written documentation of an issue occurring, and if needed, disciplinary records for future reference.
  3. When an organization reduces mistakes and defects through CAR development, overall quality increases and long-term business health improves.

Why are Corrective Action Reports important to understand?

  1. Corrective Action Reports are extremely important documents as they serve as formal mediations between parties and protect against unfair claims. CARs can be leveraged in discussions where parties need to come to an agreement and take necessary corrective action without litigation.
  2. CARs are necessary for companies that deal with corrective actions regularly. Organizations should maintain a standard template for every CAR, ensuring that all information is captured and recorded.
  3. CARs allow multiple parties to work together and uncover the root cause of problem collaboratively, instead of simply focusing on rectifying the defect as quickly as possible. When root cause analysis is conducted, the chances of a defect occurring again become lower.

An Industry Example of a Corrective Action Report

In the medical industry, defects on resuscitation products like defibrillators can have life or death consequences. Issues like a shorted battery cell or scratches and dents on the product can relegate it unusable in an emergency situation. When a defect is uncovered, it’s imperative that a CAR is developed right away to avoid a malfunctioning defibrillator, as this can contribute to a recipient’s death or cause some other serious adverse event. Root cause analysis and proper documentation can assist those developing a CAR in understanding how and where the defibrator is failing to produce the desired outcome.

Best Practices when thinking about Corrective Action Reports

CARs are ineffective without Root Cause Analysis.

When developing a CAR, you must run root cause analysis in order to actually determine the source of the defect or issue. To determine root cause, project managers can leverage several tools, including the 5 Whys Technique.

CARs should always include a unique form number, date of defect identification and who the defect was reported by.

CARs should be as specific as possible in recording what the defect was, how it was discovered and what corrective action will be taken.

CARs can differ across organizations.

CARs may differ depending on management style and organizational need. While there is no universal standard for writing a CAR, project managers must identify a root cause in order to determine the best corrective action. In addition, not every issue warrants creating a CAR. If a problem is repeatedly affecting a company’s quality management process, CARs must be issued.

Frequently Asked Questions (FAQs) about Corrective Action Reports

1. What are Corrective Action Reports?

Corrective Action Reports can help project managers respond to a defect and originate a corrective action, eliminating the chances of the issue reoccurring. A CAR should be developed every time a company discovers an issue or problem that causes a product to nonconform to a desired end result.

2. How do I prepare a CAR?

When developing a CAR, it’s easiest to go step by step. Here’s a couple steps to provide a baseline:

  1. Define corrective action for the problem occurred – this includes defining the problem or defect and what it would take to rectify it.
  2. Conduct root cause analysis – this step includes finding and verifying the root cause of problem, a critical step in ensuring the nonconformance doesn’t happen again.
  3. Define the appropriate CAR level and if one should be issued.
  4. Determine the appropriate time to issue a CAR and define the long-term corrective action plan – determine what steps will be involved in ultimately correcting the defect.
  5. Determine cost, schedule and other contractual requirements that would impact delivery within the CAR.
  6. Conduct CAR status checks and follow-ups.
  7. Determine when the defect has been resolved and record the end result for future reference.

3. Is every CAR the same?

No. Depending on the severity of the nonconformity and what it would take to adequately correct the defect, CARs should be addressed to different levels of management.

It’s important to take corrective action when defects or problems are identified within an organization. With a Corrective Action Report, the problem, root cause analysis and corrective action plan are documented and defined, allowing organizations to proactively identify the defect and take the proper steps in ensuring it does not reoccur. This can lead to long-term value for the company, its employees and its customers.

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