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Corrective Action and Preventive Action in a Holding Company

T

toto2010

#1
Dear Sir/Madam,

My company is a holding company. Its wholly owned subsidiaries are its customers for our ISO 9001 system.

As we are only a holding company, we only own shares and they run on their own. We have been operating for years but so far they have never complained about us.

So for our company to go for ISO 9001 and customers defined as its subsidiaries, how to have a Corrective Action system when they virtually have no basis to complain about us?

Appreciate any advices.

Thank you very much.
Toto2010
 
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Wes Bucey

Prophet of Profit
#2
As a retired investment banker, I am very familiar with holding companies. May I inquire what product or service you are providing the companies in your pool of companies? Are there synergies between and among the operating companies? (For example: one of the holding companies in which we owned shares held a number of independent commercial banks, but those banks would frequently be participants in a loan syndicate on loans too large for any single bank in the pool to make. The holding company might "steer" borrowers to a bank in its pool to lead and manage such a syndicate.)

In the absence of a product or service offered to the subsidiaries( since you describe the relationship as "we only own shares and they run on their own"), I'm curious as to why your company feels it should obtain an ISO registration for itself.
 
T

toto2010

#3
As a retired investment banker, I am very familiar with holding companies. May I inquire what product or service you are providing the companies in your pool of companies? Are there synergies between and among the operating companies? (For example: one of the holding companies in which we owned shares held a number of independent commercial banks, but those banks would frequently be participants in a loan syndicate on loans too large for any single bank in the pool to make. The holding company might "steer" borrowers to a bank in its pool to lead and manage such a syndicate.)

In the absence of a product or service offered to the subsidiaries( since you describe the relationship as "we only own shares and they run on their own"), I'm curious as to why your company feels it should obtain an ISO registration for itself.
Hi Wes Bucey,

My holding company helps the subsidiaries to purchase food and sell the food to them. But since the subsidiaries are our own people, how do I create a Corrective Action and Preventive Action when I know they do not complain at all.
 

harry

Super Moderator
#4
.......................... So for our company to go for ISO 9001 and customers defined as its subsidiaries, how to have a Corrective Action system when they virtually have no basis to complain about us? ......................
No offence meant but in one of your earliest post, I asked: What is your organizations objective to go for certification for which you've not answered.

Is it for marketing purpose or with a genuine desire to impose some form of standards for the business?

If it is the later, you will normally set up a product and service quality plan where you set standards to guide your daily operation. Any failure to meet these will result in an NC which may need a correction, corrective action and/or preventive action.
 
T

toto2010

#5
No offence meant but in one of your earliest post, I asked: What is your organizations objective to go for certification for which you've not answered.

Is it for marketing purpose or with a genuine desire to impose some form of standards for the business?

If it is the later, you will normally set up a product and service quality plan where you set standards to guide your daily operation. Any failure to meet these will result in an NC which may need a correction, corrective action and/or preventive action.
What is your organizations objective to go for certification for which you've not answered.
This is a bit strategic which my boss did not clearly address that. However, I believe they want the cert to enhance our brands. As many food companies are already having this cert, I believe my company is probably following suit.

Is it for marketing purpose or with a genuine desire to impose some form of standards for the business?
I think both. Marketing in terms of brand recognition. Yes, my company also intends to set some standards. My intention is to set up a system for corrective action when there is a customer complaint. However my problem is the system for CA would be more "for show" as rarely customers will complain as they are our subsidiaries.
So far they only order from us food supplies and we just supply them. I never heard that they complaint before.
Hope you can advise me accordingly.
 

Wes Bucey

Prophet of Profit
#6
Hi Wes Bucey,

My holding company helps the subsidiaries to purchase food and sell the food to them. But since the subsidiaries are our own people, how do I create a Corrective Action and Preventive Action when I know they do not complain at all.
What is your organizations objective to go for certification for which you've not answered.
This is a bit strategic which my boss did not clearly address that. However, I believe they want the cert to enhance our brands. As many food companies are already having this cert, I believe my company is probably following suit.

Is it for marketing purpose or with a genuine desire to impose some form of standards for the business?
I think both. Marketing in terms of brand recognition. Yes, my company also intends to set some standards. My intention is to set up a system for corrective action when there is a customer complaint. However my problem is the system for CA would be more "for show" as rarely customers will complain as they are our subsidiaries.
So far they only order from us food supplies and we just supply them. I never heard that they complaint before.
Hope you can advise me accordingly.
Essentially, the service you describe is akin to grocery or hardware "federations." Ace Hardware and True Value Hardware act as buyers for independently owned stores and groups of stores. They provide uniform advertising, group buying and sourcing, and the sort of help that franchisors offer to franchisees. Similarly, grocers (Centrella and IGA) offer a similar service. There is some cross ownership of shares in individual companies within the groups, but not wholly owned as you describe for yours.

The fact remains, however, that simply because there are zero current or past complaints, the "overlord" should plan a combination of Preventive Action and Corrective Action process should any such complaints arise in the future. The whole point is to think WHAT IF, not WHAT WAS.

THUS, every process that ANY organization would put in place are primarily to demonstrate it has considered and made plans for a range of contingencies which have not happened in the past, nor hoped to happen in the future. For a simple analogy, think of installing smoke detectors, fire alarms, and sprinkler systems in a building that has NEVER experienced a fire.
 
T

toto2010

#7
Essentially, the service you describe is akin to grocery or hardware "federations." Ace Hardware and True Value Hardware act as buyers for independently owned stores and groups of stores. They provide uniform advertising, group buying and sourcing, and the sort of help that franchisors offer to franchisees. Similarly, grocers (Centrella and IGA) offer a similar service. There is some cross ownership of shares in individual companies within the groups, but not wholly owned as you describe for yours.

The fact remains, however, that simply because there are zero current or past complaints, the "overlord" should plan a combination of Preventive Action and Corrective Action process should any such complaints arise in the future. The whole point is to think WHAT IF, not WHAT WAS.

THUS, every process that ANY organization would put in place are primarily to demonstrate it has considered and made plans for a range of contingencies which have not happened in the past, nor hoped to happen in the future. For a simple analogy, think of installing smoke detectors, fire alarms, and sprinkler systems in a building that has NEVER experienced a fire.
Hi Wes Bucey,

Thank you for your enlightenment. You have highlighted the key words "WHAT IF", not "WHAT WAS". Your analogy is also superb. Now I know what to do.

Thank you very much.

Regards,
Toto2010
 
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