Corrective Action Dilemma with Parent Company

Crimpshrine13

Involved In Discussions
We recently had IATF renewal audit, and one of the findings was related to corrective actions. My apology for a lengthy post.

The biggest problem is that we cannot close out the corrective actions from last year that was issued to our parent company.

We're tier 2 automotive company (100%), and while we produce approximately 50% of the products we sell to our customers, the remainder of the 50% comes from our parent company.

Last year, there had been repeated quality issues that could not be fixed, so we decided to visit them to conduct the 2nd party audit (full system audit), which generated 28 nonconformities in a hope things would improve a little bit, but it kind of backfired on us during the external audit. There were overwhelming amount of nonconformities, which most of them were more complexed and very obvious that they would not be able to correct the issues in a few weeks. Because this occurred at the end of October, with the consideration of the year end shutdown, I gave them until the end of February to correct them. They sent in the corrective actions, but I rejected because they were all superficial corrections that did not include thorough investigation. They sent in again the revisions, and they were still superficial and it was getting to the point that I did not have time to teach them which were not good for what reason and I kind of stopped providing feedback (because they are so incompetent to correct problems and lacking basic knowledge in quality control/assurance, and I do not work here to wipe their butt and I have a lot of other things that I have to do - we have only 10 employees here). They also have another product related corrective action that is open since March, 2024.

The auditor didn't like the fact that there were too many open corrective actions that were not resolved.

Part of the problem with the auditor was that the rules of setting due dates was not consistent with what we say in the corrective action procedure. In our procedure, we require immediate response in 24 hours, containment and preliminary corrective action in 2 weeks, and permanent corrective action in 1 month. If extension is needed, we add the extension in the corrective action report. That part, we can solve the problem to clarify the wording regarding the due date in the procedure and maybe develop better follow up process. That we can do.

Our problem is, that these corrective actions are generated for our parent company. We are in a business where there is very little competitions world wide, and since it is our parent company, not unrelated supplier, we are pretty much stuck without any options but to keep buying from our parent company. If it was unrelated supplier and we had an option to buy from other companies, it would have much been easier situation. Our parent company is incompetent that issues like this is not uncommon with their other customers that they have corrective actions that are open over a year, yet the management is not motivated enough to correct the problems from the true root causes, and keep making bad parts. It's embarrassing, but that's what it is. Most knowledgeable employees had already retired or quit and there's only a handful of employees who are knowledgeable about the manufacturing process or quality, who are not at the center of suited positions so it is only getting worse each year.

When a parent company is underperforming and you are doing your best to push them to correct the issues yet they are not cooperating, what can be done at our end? It's like beating a dead horse and not going anywhere... I just don't know how we can close out this external audit finding...

Any thoughts and opinions are appreciated.
 

Ashland78

Quite Involved in Discussions
I can somewhat relate - internal audits. We have had a few NC open for over 180 days. My external audit is coming up next week. We had 9 with undue delay. That manager, I understand is pressured to launch a new project, but I am so trying to get these closed. I realize some need extensions. All I can do is hope they don't see a trend.

I think it may need to be escalated... mine went up to plant director in conversation.
 

Randy

Super Moderator
When a parent company is underperforming and you are doing your best to push them to correct the issues yet they are not cooperating, what can be done at our end?
Keep a solid document trail and move on with what you can control or influence including workarounds. Either that or buy them out and fire everyone in the loop.

If the auditor doesn't "LIKE" it, show him the door, contact his CB with a "non-gratis" statement concerning him and if the CB isn't responsive notify the AB with a complaint.
 

Jen Kirley

Quality and Auditing Expert
Leader
Admin
Locking yourself into hard timeframes is a guarantee of failure. Is this a guideline or an internal shall? If it's a shall, I would strongly support loosening it so you can provide enough time to fix complex issues, address behaviors and/or provide infrastructure enhancements.

Yes, issuing 28 nonconformances at one time was not making it any easier either. Can these be prioritized or combined by subject?

"without undue delay" is thought of as completely resolved, but containment could also work if you can show it's in place. I was once taken to task for an internal NC that had been open for more than a year. I showed my notes detailing all sorts of actions, including a reaudit that failed, meeting dates and so on. The auditor's eyes glazed over and he reluctantly moved on. So, keep good notes.

I often have to work with my suppliers to make NC plans and statements that do more than just the superficial scraping that so many want to get away with. If you have time to spend in meetings to do this and fill out the NCs together, it might take less time in the end than all the back-and-forth emails that drive people bonkers.
 

Golfman25

Trusted Information Resource
Since it a parent company, you're the child. What is the likelihood of success that the child can control the parent? Pretty much zero, just like real life.

Seems to me, you messed with the bull and got the horns. So a few things you probably can do from here. Change your corrective action procedures -- don't require full investigations, etc. where not necessary. Sometimes a simple correction is good enough. Limit specific timelines -- problems are all different and take different amounts of time to correct. Go back thru the 28 non-conformances and focus on the ones that really matter to you and the product you're having an issue with. Good luck.
 

Crimpshrine13

Involved In Discussions
Since it a parent company, you're the child. What is the likelihood of success that the child can control the parent? Pretty much zero, just like real life.

Seems to me, you messed with the bull and got the horns. So a few things you probably can do from here. Change your corrective action procedures -- don't require full investigations, etc. where not necessary. Sometimes a simple correction is good enough. Limit specific timelines -- problems are all different and take different amounts of time to correct. Go back thru the 28 non-conformances and focus on the ones that really matter to you and the product you're having an issue with. Good luck.
Locking yourself into hard timeframes is a guarantee of failure. Is this a guideline or an internal shall? If it's a shall, I would strongly support loosening it so you can provide enough time to fix complex issues, address behaviors and/or provide infrastructure enhancements.

Yes, issuing 28 nonconformances at one time was not making it any easier either. Can these be prioritized or combined by subject?

"without undue delay" is thought of as completely resolved, but containment could also work if you can show it's in place. I was once taken to task for an internal NC that had been open for more than a year. I showed my notes detailing all sorts of actions, including a reaudit that failed, meeting dates and so on. The auditor's eyes glazed over and he reluctantly moved on. So, keep good notes.

I often have to work with my suppliers to make NC plans and statements that do more than just the superficial scraping that so many want to get away with. If you have time to spend in meetings to do this and fill out the NCs together, it might take less time in the end than all the back-and-forth emails that drive people bonkers.
Thank you Jen and Golfman for your feedback...I think we're taking that route. Revise corrective action procedure, if it is a quality related issue that require quick containment, hard deadline of 24-hour response, 2-week corrective action (if impossible to fix everything in 2 weeks, then 2-week additional extension for final corrective action), then everything else would be ranked for priorities and loosening the deadline rules based on the priority levels. Also adding corrective action history log on each corrective action tracking what had been done to each one of them so when someone sees them, it shows something that we're not doing anything...
 

Crimpshrine13

Involved In Discussions
I can somewhat relate - internal audits. We have had a few NC open for over 180 days. My external audit is coming up next week. We had 9 with undue delay. That manager, I understand is pressured to launch a new project, but I am so trying to get these closed. I realize some need extensions. All I can do is hope they don't see a trend.

I think it may need to be escalated... mine went up to plant director in conversation.
I think hoping for auditors not seeing the trend can trigger this issue. At least it was that was for us. We will be revising our procedure to prioritize them based on the risks and revise the rules on the deadlines. Also adding history log on each corrective action so it's visible to anyone that we're not just forgetting and not doing anything.
 

optomist1

A Sea of Statistics
Super Moderator
whether open CAs, Supplier Issues, or action items in route to PPAP, PDR or similar I have found an Action or Open Issues Register via Excel or similar to be very effective. Once in place and updated regularly (with team members/stakeholders), it is shared across and up the organization (visibility). Once in place, identification and escalation of issues is much more effective and much easier. It may make some folks uncomfortable, but is goes a long way in reducing if not eliminating nasty surprises...

Hope this helps
Optomist1
 

optomist1

A Sea of Statistics
Super Moderator
Hi Crimpshrine13, a bit more as old school as this sounds it is in many cases the only method to expose to "compliance exceptions", in fact some prefer to call it just that...an exception report...and of course thoughtful distribution of this report is equally important...when warranted, escalate, escalate, escalate this gives the issues proper exposure.
 
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