CRYSTALCOLD CHAIN CORPORATION Document No.

: IAD-GP-1901
Navotas Fish Port Complex, Road 10 St., Brgy. NBBS, Navotas City
Tel No. +632-400-5434 | +632-296-5517
info@crystalcoldstorage.ph | www.crystalcoldstorage.ph Revision No.: 01
Document Owner: Internal Audit Department Effective Date: March 30, 2020
Document Title: Nonconformance Management Page Number: 1 of 7

REVISION HISTORY
Revision Page/s
Description of Change Originator/s Effectivity Date
No. Revised
Newly established procedure for
00 - M. Villareal April 3, 2019
Nonconformance Management
Update on the existing procedure for
01 All M. Villareal March 30, 2020
clarity and efficiency

1.0. Objectives

This procedure shall establish the requirements in:

1.1. Reviewing of non-conformance;

1.2. Determining the causes of the potential and detected nonconformance;
1.3. Evaluating and determining the need for action in preventing the occurrence and recurrence of a
nonconformance;
1.4. Implementing the determined actions needed;
1.5. Recording results and reviewing effectiveness of the actions taken; and
1.6. Defining the control measures and its corresponding authorities when dealing with non-conforming products
and services.

2.0. Scope

This procedure applies to all processes, products, services and any system nonconformance which can affect
the Crystal Cold Storage’s quality management system.

3.0. Definition of Terms

3.1. Conformance – fulfillment of a requirement.

3.2. Correction – any immediate action that is taken to eliminate a nonconformance.

3.3. Corrective Action – steps that are taken to eliminate the causes of an existing nonconformance or
undesirable situation.

3.4. Corrective Action Request (CAR) – document used to record the identified nonconformance, immediate
action taken to correct it, its identified root cause, and determined corrective and/or preventive action to
prevent possible occurrence and recurrence.

3.5. Nonconformance – failure to comply with a requirement, standard or procedure.

3.6. Opportunity for Improvement (OFI) - an observed situation which is not a nonconformity but where the
results achieved may not be optimal, less than well-organized, or over complicated.

This document is owned and controlled by Crystal Cold Storage. No part of this document may be reproduce, store in the retrieval system or transmitted in any form or
by any means- electronic, mechanical, photocopying, and recording without permission from the management of the organization.
 CRYSTALCOLD CHAIN CORPORATION Document No.: IAD-GP-1901
Navotas Fish Port Complex, Road 10 St., Brgy. NBBS, Navotas City
Tel No. +632-400-5434 | +632-296-5517
info@crystalcoldstorage.ph | www.crystalcoldstorage.ph Revision No.: 01
Document Owner: Internal Audit Department Effective Date: March 30, 2020
Document Title: Nonconformance Management Page Number: 2 of 7

4.0. Procedure Details

4.1. Identification of Nonconformance

Non-conforming processes, products, and/or services may be identified through or as a result of (but not
limited to) the following:

4.1.1. Statutory and Regulatory Requirements

4.1.2. Client Feedback/Customer Satisfaction Surveys
4.1.3. Audit Activities
4.1.4. Management Reviews
4.1.5. Suppliers Performance

4.2. Issuance of Corrective Action Request (CAR)

When a nonconformance or potential nonconformance was identified, CAR Initiator shall implement the
following procedures:

4.2.1. Documentation of nonconformance by accomplishing appropriate part on Corrective Action Request

(CAR). CARs for issuance shall be accomplished in accordance with Figure 5.2.1. Issuance of
CAR
4.2.2. Assign CAR control number by checking the CAR Monitoring. CAR control number comprises by
the following:

CAR-AAAA-BBB where;

AAAA is the year when the CAR was issued.

BBB is a three or more characters reflecting the CAR series.

4.2.3. Submit accomplished CAR to its corresponding Review and Approving authority as detailed in
Table 5.1.1. CAR Review and Approval Matrix.
4.2.4. Issued copies of CAR shall be secured. Therefore, CAR Initiator shall scan the approved copies of
CAR prior issuance to Senior Supervisor/s.
4.2.5. Forwarding of approved CAR to the Senior Supervisor/s should be done not later than two (2)
working days upon accomplishment.
4.2.6. Senior Supervisor/s shall acknowledge receipt of the CAR by signing on the issued to portion of
CAR and CAR Transmittal.

4.3. Correction and Analysis of Nonconformance

Upon the receipt of the CAR, Responsible Department shall implement the following procedures:

4.3.1. Take immediate action to correct the reported nonconformance or potential nonconformance.
4.3.2. Investigate and perform Root Cause Analysis (RCA) with the use of appropriate problem solving
techniques and tools (such as but not limited to 5 Why’s, Fishbone Diagram, Histogram, Pareto
Analysis etc.) to further identify and analyze the root-cause of the problem.
4.3.3. Formulate a correction and corrective action using the results of the RCA. Actions to be taken
should address the identified cause/s of the nonconformance.
4.3.4. Provide specific implementation date for both correction and corrective action.

This document is owned and controlled by Crystal Cold Storage. No part of this document may be reproduce, store in the retrieval system or transmitted in any form or
by any means- electronic, mechanical, photocopying, and recording without permission from the management of the organization.
 CRYSTALCOLD CHAIN CORPORATION Document No.: IAD-GP-1901
Navotas Fish Port Complex, Road 10 St., Brgy. NBBS, Navotas City
Tel No. +632-400-5434 | +632-296-5517
info@crystalcoldstorage.ph | www.crystalcoldstorage.ph Revision No.: 01
Document Owner: Internal Audit Department Effective Date: March 30, 2020
Document Title: Nonconformance Management Page Number: 3 of 7

4.3.5. Monitor and verify the effectiveness of formulated corrective action by logging and regularly
updating these on Corrective Action Monitoring Log Sheet.

4.4. Accomplishment of CAR

4.4.1. Responsible Department shall accomplish the CAR by indicating the formulated correction,
corrective action, and its corresponding implementation date.
4.4.2. All statements specified in the CAR shall be written either by using BLACK or BLUE pen. All
statements written in pencil were considered invalid.
4.4.3. Accomplished CAR shall be reviewed and approved by its corresponding Review and Approving
authority as detailed in Table 5.1.1. CAR Review and Approval Matrix.
4.4.4. Submission of CAR to Internal Audit Department should be seven (7) calendar days from the date of
receipt. CAR Initiator shall be responsible in making a follow-up for the status of all issued CARs
and update these in CAR Monitoring.

4.5. Disposition and Monitoring of Correction and Corrective Action

To mitigate the risk of recurrence of identified nonconformance and the occurrence of potential
nonconformance, Senior Supervisor/s shall be responsible in carrying-out necessary correction and
corrective action. With these in mind, Senior Supervisor/s shall implement these procedures:

4.5.1. Review and approve the RCA, correction and corrective action indicated in the CAR;
4.5.2. Monitor if actions were carried-out according to the targeted implementation date; and
4.5.3. Conduct regular meetings with regards to the Department implementation of QMS, results of actions
taken in the CAR, and other QMS concerns. Documentation of meetings conducted shall be
retained as stipulated in ISO 9001:2015 7.5 Documented Information.

Senior Supervisor/s shall be primarily responsible in ensuring the effectiveness of their own actions.

4.6. Verification of accomplished CAR

CAR Initiator shall verify whether the correction and corrective action indicated in CAR adequately
addressed the identified nonconformance. If upon verification of CAR results:

4.6.1. Correction and corrective action plan is validated and considered effective, tick the resolved bullet
and attach supporting documents as evidence of its effectiveness. CAR Initiator shall affix
signature on CAR indicating the closing date of the nonconformance.
4.6.2. Correction and corrective action plan is taken to be ineffective, tick the unresolved bullet, specify
reason/s and revert the CAR immediately to Senior Supervisor/s to identify additional corrective
action plan on the CAR. Then go back to Step 4.4.3. to 4.6.1.
4.6.3. Else if, reported nonconformance or potential nonconformance was still unresolved for the third
time, provided correction and corrective action plan are deemed ineffective or a failure. Therefore,
CAR Initiator must tick the unresolved bullet of the issued CAR, reissue new CAR series, provide
cross-referencing, and go back to the first step.

4.7. Closing of CAR

This document is owned and controlled by Crystal Cold Storage. No part of this document may be reproduce, store in the retrieval system or transmitted in any form or
by any means- electronic, mechanical, photocopying, and recording without permission from the management of the organization.
 CRYSTALCOLD CHAIN CORPORATION Document No.: IAD-GP-1901
Navotas Fish Port Complex, Road 10 St., Brgy. NBBS, Navotas City
Tel No. +632-400-5434 | +632-296-5517
info@crystalcoldstorage.ph | www.crystalcoldstorage.ph Revision No.: 01
Document Owner: Internal Audit Department Effective Date: March 30, 2020
Document Title: Nonconformance Management Page Number: 4 of 7

4.7.1. All verified CARs subject for closing including its supporting evidences shall be reviewed and
approved by its corresponding Review and Approving authority as detailed in Table 5.1.1. CAR
Review and Approval Matrix.

Note: For process-related issues, CAR can be considered closed only if the implemented
corrective actions are effectively and consistently done for at least three (3) months.

4.7.2. CAR Initiator shall update the CAR Monitoring and tag the corresponding CAR series as “CLOSED”.
4.7.3. Original copy of the closed CAR shall be forwarded to the Assigned Internal Auditor for
recordkeeping purposes.

5.0. Appendices

5.1. Tables

5.1.1. CAR Review and Approval Matrix

CAR Issuance
Reviewed and
Issuance Type Prepared by Issued to
Approved by
Senior Internal Audit
As a result of Audit Internal Auditors Supervisor Senior Supervisor

As a result of Customer Senior Internal Audit

Feedback Supervisor President and COO Senior Supervisor

As a result of Company
Policy Deviation Junior HRA Supervisor Senior HRA Supervisor Senior Supervisor

CAR Accomplishment (Correction and Corrective Action)

Issuance Type Action/s Taken by Reviewed by

As a result of Audit Process Owner/s Senior Supervisor

As a result of Customer
Feedback Process Owner/s Senior Supervisor

As a result of Company Policy

Deviation Process Owner/s Senior Supervisor

CAR Verification
If unresolved, If resolved,
Issuance Type Verified by Reviewed and Reviewed and
Prepared by
Approved by Approved by
Senior Senior Internal
As a result of Audit Internal Auditors Process Owner/s Supervisor Audit Supervisor
As a result of Customer Senior Internal Senior President and
Feedback Audit Supervisor Process Owner/s Supervisor COO
As a result of Company Junior HRA Senior Senior HRA
Policy Deviation Supervisor Process Owner/s Supervisor Supervisor

This document is owned and controlled by Crystal Cold Storage. No part of this document may be reproduce, store in the retrieval system or transmitted in any form or
by any means- electronic, mechanical, photocopying, and recording without permission from the management of the organization.
 CRYSTALCOLD CHAIN CORPORATION Document No.: IAD-GP-1901
Navotas Fish Port Complex, Road 10 St., Brgy. NBBS, Navotas City
Tel No. +632-400-5434 | +632-296-5517
info@crystalcoldstorage.ph | www.crystalcoldstorage.ph Revision No.: 01
Document Owner: Internal Audit Department Effective Date: March 30, 2020
Document Title: Nonconformance Management Page Number: 5 of 7

5.2. Figures

5.2.1. Issuance of CAR

6.0. Authority and Responsibility

6.1. CAR Initiator

6.1.1 Prepares CAR based on the identified issue/problem;

6.1.2 Issues CAR to Senior Supervisor/s;
6.1.3 Monitors issued CARs and update these on CAR Monitoring; and
6.1.4 Verifies the effectiveness of the action taken to correct and mitigate the identified or potential
nonconformance.

6.2. Responsible Department

6.2.1. Takes immediate action to mitigate and correct the identified or potential nonconformance;

This document is owned and controlled by Crystal Cold Storage. No part of this document may be reproduce, store in the retrieval system or transmitted in any form or
by any means- electronic, mechanical, photocopying, and recording without permission from the management of the organization.
 CRYSTALCOLD CHAIN CORPORATION Document No.: IAD-GP-1901
Navotas Fish Port Complex, Road 10 St., Brgy. NBBS, Navotas City
Tel No. +632-400-5434 | +632-296-5517
info@crystalcoldstorage.ph | www.crystalcoldstorage.ph Revision No.: 01
Document Owner: Internal Audit Department Effective Date: March 30, 2020
Document Title: Nonconformance Management Page Number: 6 of 7

6.2.2. Investigates and performs RCA to further analyze and identify the root-cause of the problem; 6.2.3.
Formulates correction and corrective action/s based on the RCA and log these on CAR; and
6.2.4. Performs, monitors and verifies the effectiveness of formulated corrective action/s.

6.3. Senior Supervisor/s

6.3.1 Reviews and receives the CARs issued by the CAR Initiator;
6.3.2 Forwards the received CAR to its corresponding Process Owner;
6.3.3 Reviews and approves the RCA, formulated corrections and corrective actions indicated on CARs;
6.3.4 Ensures all CARs received are properly responded and timely submitted to IAD; and
6.3.5 Ensures formulated corrections and corrective actions are effectively implemented.

6.4. Senior Internal Audit Supervisor

6.4.1 Reviews and approves CARs prepared by Internal Auditor/s for issuance to Senior Supervisor/s;
6.4.2 Prepares and issues CARs for those nonconformance arises as a result of customer feedbacks;
6.4.3 Reviews and approves CARs and its corresponding evidences verified by Internal Auditor/s for
closing; and
6.4.4 Ensures and oversee the implementation of Nonconformance Management Procedure.

6.5. President and COO

6.5.1. Reviews and approves CARs prepared by Senior Internal Audit Supervisor as a result of customer
feedback; and
6.5.2. Reviews and approves CARs and its corresponding evidences verified by Senior Internal Audit
Supervisor for closing.

7.0. Reference Documents

7.1. Source Documents

Document Number Document Title
Quality Management System –
ISO 9001:2015
8.7 Control of nonconforming outputs
Quality Management System –
ISO 9001:2015
10.2 Nonconformance and corrective action

7.2. Implementing Documents

Document Number Document Title
IAD-FO-1903, Rev. 01 Corrective Action Request

IAD-FO-1904, Rev. 01 Corrective Action Monitoring Log Sheet

8.0. Acknowledgment to Comply and Implement

This is to acknowledge that we:

8.1 Reviewed the procedure stated herein;
8.2 Agree with the contents thereof; and
This document is owned and controlled by Crystal Cold Storage. No part of this document may be reproduce, store in the retrieval system or transmitted in any form or
by any means- electronic, mechanical, photocopying, and recording without permission from the management of the organization.
 CRYSTALCOLD CHAIN CORPORATION Document No.: IAD-GP-1901
Navotas Fish Port Complex, Road 10 St., Brgy. NBBS, Navotas City
Tel No. +632-400-5434 | +632-296-5517
info@crystalcoldstorage.ph | www.crystalcoldstorage.ph Revision No.: 01
Document Owner: Internal Audit Department Effective Date: March 30, 2020
Document Title: Nonconformance Management Page Number: 7 of 7

8.3 Commit to strictly implement these processes.

Matt S. Alejo Jherson A. Gravides

Senior Warehouse Supervisor Plant Engineer

May Agnes P. Silo Joana Marie G. Gregorio

Senior Internal Audit Supervisor Senior Human Resource and Administration Supervisor

Ralph Leonyl S. Crisostomo

Accounting Manager

No more statements hereafter

Prepared by: Approved by:

Mary Rose S. Villareal May Agnes P. Silo Alexander Evan O. Uy

Senior Internal Audit Supervisor President and COO
Senior Internal Auditor
Reviewed by:

This document is owned and controlled by Crystal Cold Storage. No part of this document may be reproduce, store in the retrieval system or transmitted in any form or
by any means- electronic, mechanical, photocopying, and recording without permission from the management of the organization.