JOANNE PAULINE C.

OCHEA
5:30-7:00 MW
1. DIFFERENT MODES OF CORRECTIVE ACTION
1. Normal mode - follow a routine, no crisis approach; this take more time
2. Ad hoc crash mode - saves time by speeding up the response process, geared to the problem
ad hand.
3. Preplanned crisis mode - specifies a planned response in advance; this approach lowers the
response time and increases the capacity for handling strategic surprises.
2. DIFFERENT CHARACTERISTICS OF GOOD STRATEGY OF EVALUATION
A good evaluation system must possess various qualities such as the following:

The activities must be economical. Too much information can be as bad as too little information

as well as too many controls can do more harm than good.

The activities must be meaningful. They should specifiacally relate to the managements

objecives.
The activities should provide timely information. Approximate information that is timely is
generally as a basis for strategy evalutation than accurate information that does not depict the

present. On occation and some areas, managers may need information daily.
It should be designed to provide a true picture of what is happening.
The process should not domunate decisions. It should foster mutual understanding, trust, and

common sense.
It should be simple. Not too cumbersome, and not restrictive.

3. DIFFERENCES BETWEEN CORRECTIVE ACTION AND PREVENTIVE ACTION

Corrective Action Process
Locate and document the root cause of the nonconformity.
Scan the entire system to ensure no other similar nonconformity could occur.
Analyze the effect such a nonconformity may have had on a product or service produced before
the nonconformity was discovered, and take action appropriate to the severity of the situation by
either recalling the product, notifying the customer, downgrading or scrapping product.
Establish thorough follow-up to ensure the correction is effective and recurrence has been
prevented.
Preventive Action Process
Take proactive steps to ensure a potential nonconformity does not occur.
Employ process and system analysis to determine how to build in safeguards and process
changes to prevent nonconformance. For example, use a failure mode and effects analysis to
identify risks and potential deficiencies and to set priorities for improvement.

JOANNE PAULINE C. OCHEA

5:30-7:00 MW

4. USE OF CORRECTIVE ACTION PLAN IN STRATEGIC EVALUATION

The below checklist suggest the following five general areas for corrective actions:

Revise the Standards. It is entirely possible that the standards are not in line with objectives and
strategies selected. Changing an established standard usually is necessary if the standards were
set too high or to low are the outset. In such cases it's the standard that needs corrective attention
not the performance.

Revise the Objective. Some deviations from the standard may by justified because of changes
in environmental conditions, or other reasons. In these circumstances, adjusting the objectives
can y much more logical and sensible then adjusting performance.

Revise the Strategies. Deciding on internal changes and taking corrective action may involve
changes in strategy. A strategy that was originally appropriate can become inappropriate during a
period because of environmental shifts.

Revise the Structure, System or Support. The performance deviation may by caused by an
inadequate organizational structure, systems, or resource support. Each of these factors is
discussed elsewhere in this chapter, or other part of this thesis.

Revise Activity. The most common adjustment involves additional coaching by management,
additional training, more positive incentives, more negative incentives, improved scheduling,
compensation practices, training programs, the redesign of jobs or the replacement of personnel.