Quality Procedure
8.7 Supplier Corrective Action
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Table of Contents
1 SUPPLIER CORRECTIVE ACTION ............................................................................................................... 3
1.1 INTRODUCTION & PURPOSE ..................................................................................................................... 3
1.1.1 Process Activity Map ..................................................................................................................................................... 3
1.1.2 References ......................................................................................................................................................................... 3
1.1.3 Terms & Definitions ....................................................................................................................................................... 3
1.2 APPLICATION & SCOPE ............................................................................................................................ 4
1.3 ROLES, RESPONSIBILITIES & AUTHORITIES ................................................................................................. 4
1.3.1 Roles & Responsibilities ............................................................................................................................................... 4
1.3.1.1 Production Employees ............................................................................................................................................. 4
1.3.1.2 Quality Inspectors ...................................................................................................................................................... 4
1.3.1.3 Purchasing Manager ................................................................................................................................................. 5
1.3.1.4 Quality Manager ......................................................................................................................................................... 5
1.3.1.5 Supplier .......................................................................................................................................................................... 5
1.3.2 Authority Matrix .............................................................................................................................................................. 6
1.4 SUPPLIER CORRECTIVE ACTION PROCESS ................................................................................................... 6
1.4.1 General................................................................................................................................................................................ 6
1.4.2 Identification..................................................................................................................................................................... 7
1.4.3 Supplier Corrective Action Request ........................................................................................................................ 8
1.4.4 Resolution .......................................................................................................................................................................... 9
1.4.5 Response Review ............................................................................................................................................................ 9
1.4.6 Disposition ...................................................................................................................................................................... 10
1.4.7 Monitoring ...................................................................................................................................................................... 10
1.4.8 Validation ......................................................................................................................................................................... 10
1.4.9 Closure-out ..................................................................................................................................................................... 11
1.5 MONITOR & REVIEW .............................................................................................................................11
1.5.1 Key Performance Indicators ..................................................................................................................................... 11
1.5.2 Status of Supplier Corrective Actions ................................................................................................................... 12
1.6 DOCUMENTATION .................................................................................................................................13
1.7 SUPPLIER CORRECTIVE ACTION PROCESS MAP .........................................................................................14
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1.3.2 Authority Matrix
Once the roles and responsibilities are assigned, the assignees are empowered to execute the role activities
and given the appropriate authority for holding other people accountable. Your organization uses an authority
matrix as a tool to help understand which parties need to be involved in correction activities.
Process Participants
Purchasing Manager
Quality Inspectors
Authority Matrix
Quality Manger
Employees
Supplier
Activities and Steps Within the Process
SCAR Identification R A/R R I I
SCAR Request C A/R A/R I C
SCAR Resolution I I C C A/R
SCAR Response Review I I A/R I I
SCAR Disposition I I A/R I R
SCAR Monitoring I I A/R I I
SCAR Validation I A/R A/R A/R I
SCAR Closure I A/R A/R I I
Legend Definition
R = Responsible Executes the task
A = Accountable Accountable for final result
C = Consulted Consulted about the task to provide additional information
I = Informed Needs to be kept up-to-date on activities/tasks
1.4 Supplier Corrective Action Process
1.4.1 General
Your organization’s supplier corrective action process combines organizational management techniques with
individual tools to create a robust closed-loop process in order to:
Monitor, verify
and report the
SCAR
SCAR Request SCAR Resolution SCAR Disposition effectiveness of
Identification
supplier corrective
actions
SCAR Response
Close-out SCAR
Review
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Your organization uses a charge back process to recover costs incurred as a result of a supplier’s
nonconformance or late deliveries. Issuance of a charge back is communicated to the supplier SCAR form and
details about value via email or other local operation system as extension of the process.
1.4.2 Identification
SCAR maybe issued during incoming inspection, at a later day as a result of production line rejections
attributable to the supplier, as part of the Material Review Board (MRB) disposition, or upon discovery of any
supplier caused issues during the products’ lifetime cycle. SCARs may also be issued on first article failures,
poor supplier performances, such as poor on-time delivery. Below are examples for occasions where a SCAR
response required:
1. Warranty failure including high value reoccurring claims;
2. Products which do not meet with drawing, purchase order, or other specification requirement during
development phase or in serial production;
3. Serial faults or repetitive nonconformances that contribute to a production line stop;
4. Lack of communication and response where a supplier repeatedly does not respond to claims or
other requests,
5. Receiving and delivery issues where the supplier does not ship parts to confirmed date, has a history
or repeatedly has short shipments, or wrong quantities, missing packing slips or required material
certification and documentation.
On receipt of incoming materials, the receiving personnel will identify and inspect the items, goods and
materials and match them against the delivery note. The delivery note is compared to the corresponding
purchase order and any related documentation. This inspection should include but not be limited to:
1. Confirmation of identification using the purchase order, drawing numbers, material markings etc.;
1. Confirmation of adherence to delivery schedule;
2. Confirmation of conformance to purchase order requirements;
3. Confirmation of correct quantities;
4. Visual examination for obvious defects;
5. Measurement comparison to drawings where required;
6. Specified certification/documentation as required.
For large numbers of identical items, visual and dimensional checks should be undertaken on a minimum of
5% of the total quantity. No material is released for further processing until receiving inspection has been
completed and goods accepted. All accepted materials passing immediate inspection are allocated a storage
area. Any noncompliant goods must be placed in a separate area, and clearly identified with a Reject Tag.
Further investigations should determine whether the items, materials or goods are to be:
1. Scrapped;
2. Returned to Supplier;
3. Reworked to a useable condition.
When inspecting materials that include specified certification or documentation should only be accepted when
such certification and documentation has been viewed and approved by the Quality Manager or the Purchasing
Manager.
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1.4.3 Supplier Corrective Action Request
Your organization uses a Supplier Corrective Action Request (SCAR) Form which follows the 8D methodology,
to formally notify our Suppliers of quality issues found with their supplied products or services, and for
requesting Suppliers to take appropriate actions to prevent recurrences.
A SCAR Form is issued to Suppliers and vendors for repetitive, ongoing problems and issues that have a major
impact on end product delivery. A SCAR may be requested due to the poor performance of the supplier for
more than three consecutive months or any three months in a 12 months period based on data analysis.
The Quality Manager) will complete the D1 section of the SCAR Form for the nonconformity identified and
define the problem statement/symptoms in the SCAR form, with detailed explanation of the problem including
pictures (if applicable) and/or drawings of the specific component.
The SCAR type is determined by the originator as a:
1. Safety Concern;
2. Process Nonconformity;
3. Product Nonconformity;
4. Systemic Nonconformity.
The SCAR priority is determined by the originator as a:
1. High - A problem that results in Major/ significant impact or is a repetitive problem. Requires a root-
cause investigation, corrective action(s) and preventative action(s);
2. Medium - A problem that results in moderate impact. Requires containment and root-cause analysis,
with corrective actions when appropriate;
3. Low - A low level problem typically closed after immediate correction, requires containment and
trending;
4. Improvement Opportunity - A condition that does not need correction, but rather, can be
enhanced, improved, or made more efficient.
The SCAR form will include the reference of the nonconformity number, part numbers and part description,
and serial numbers (as applicable). Supplier SCARs may also be used to obtain failure analysis information from
our Suppliers to support internal analysis reports.
1. The maximum response time will be seven (7) working days;
2. The response time on SCAR can be extended by Quality Manager as required;
3. All requests for extension the due date will be in writing and submitted to Quality Manager for
approval;
4. SCARs that are overdue will be followed up with a written overdue notice from the Quality Manager
to the assignee.;
5. Supplier SCARs that are overdue will be followed up with a written overdue notice issued by the
Purchasing Manager.
6. If the overdue response is not within the allotted period of time - the thirty (30) working days for
Supplier SCARs, then the SCAR will be forwarded to the Quality Manager for resolution.
7. These SCARs will remain open until the assignee is notified by the Quality Manager that the problem
has been resolved.
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