Key Points

• A CAR is a means to respond to defects with a documented process.
• CARs can be generated by leadership or by customers.
• CARs are a safeguard against repeated defects, allowing for better deliverable quality.

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 to keep 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 a 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 in 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.

When a defect is uncovered, a CAR must be 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 defibrillator is failing to produce the desired outcome.

Why They Matter

While defects are going to be present in any production line, how you choose to respond to them is important. By developing a correction action report, you’re giving yourself the means to respond effectively and rectify defects as needed. As such, learning the proper way of creating a CAR should be a top priority for any organization.

Best Practices when thinking about Corrective Action Reports

CARs Are Ineffective without Root Cause Analysis

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

They Should Always Include a Unique Form Number, Date of Defect Identification, and Who Reported the Defect

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

They 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 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.

Other Useful Tools and Concepts

While we’ve discussed this topic at length, there are still other ways to account for quality deliverables. For instance, you might need a way of tracking the performance of a newly installed machine on your production line. Sure, you could take the time to track performance the old-fashioned way. However, utilizing the machine capability index will get you actionable data in a shorter timeframe.

Additionally, understanding the cost of non-conformance in your production is one of the most important costs you can pay attention to. These costs are present when production isn’t lining up with the quality goals set throughout project planning.