1. LESSON 6 Customer Complaints and Investigations
15November2013
Lesson 4: Safety Stock

2. Lesson Introduction
Given a report of a customer complaint, you will be able to determine the supplier’s position with regard to resolution for Product Quality Deficiency issues.

3. Lesson Objectives
Upon completion of this lesson, you should be able to:
Identify product quality deficiency categories and reports used to classify customer complaints.
Outline the Defense Contract Management Agency (DCMA) Product Quality Deficiency Report (PQDR) process flow.
Examine the role of Quality Assurance (QA) in investigating customer complaints and reporting deficiencies.
Identify the Quality Assurance Specialist (QAS) initial history investigation responsibilities for customer complaints received from the Deficiency Report Program Manager (DRPM).
Lesson 4: Safety Stock

4. Lesson Objectives (cont.)
Upon completion of this lesson, you should be able to:
Identify the QAS customer complaint investigation responsibilities.
Relate the importance of evaluating the supplier’s actions for resolving the customer complaint to Government Contract Quality Assurance (GCQA) adjustments.
Compare PQDR trends analysis reports for methods of preventing future discrepancies and occurrences of PQDRs.
Prepare an outgoing PQDR investigation report using the Product Data Reporting and Evaluation Program (PDREP).
Lesson 4: Safety Stock

5. Lesson Topics This lesson covers the following topics: Definitions
Product Quality Deficiency Reporting
Outgoing PQDRs and Supplier Deficiency Reports
Product Data Reporting and Evaluation Program (PDREP)

6. WIIFM? This lesson: Defines basic terminology
Explains the flow of the customer complaint process
Identifies the responsibilities of the QAS during the customer complaint process
Identifies the steps required to complete DD Form in PDREP

7. Customer Complaint Policy
DCMA requirements for the customer complaint process are found in the DCMA Deficiency Reports Policy (DCMA-INST 305).

8. Definitions Lesson Topics: Definitions
Product Quality Deficiency Reporting
Outgoing PQDRs and Supplier Deficiency Reports
Product Data Reporting and Evaluation program (PDREP)

9. Topic 1: Definitions Key terms include: Deficiency Report
Product quality deficiency
Deficiency Report Program Manager (DRPM)
Product Quality Deficiency Report (PQDR)
Product Data Reporting and Evaluation Program (PDREP)

10. Definitions (1 of 5) Deficiency Report
Report initiated by the customer and triggered by receipt of nonconforming/non-operable systems or supplies. Such receipt requires an investigation to determine the root cause and corrective action necessary to preclude recurrence.

11. Definitions (2 of 5) Product Quality Deficiency
A defect or nonconforming condition in design, specification, material, manufacturing, and/or workmanship

12. Definitions (3 of 5) Deficiency Report Program Manager (DRPM)
An individual assigned by the Contract Management Office (CMO) to ensure all investigation results are managed, tracked, and documented in PDREP

13. Definitions (4 of 5) Product Quality Deficiency Report (PQDR)
The SF Form 368, or equivalent, used to report a product quality deficiency resulting from an escape of the supplier's quality management or inspection system

14. Definitions (5 of 5)
Product Data Reporting and Evaluation Program (PDREP)
An automated information system for documenting, tracking, and managing quality deficiency reports

15. Question and Answer
What is the automated information system used for documenting, tracking, and managing quality deficiency reports?
Enterprise Information System (EIS)
Product Data Reporting and Evaluation Program (PDREP)
Range Facility Management Support System (RFMSS)
Deficiency Report Program Management (DRPM)

16. Product Quality Deficiency Reporting
Lesson Topics:
Definitions
Product Quality Deficiency Reporting
Outgoing PQDRs and Supplier Deficiency Reports
Product Data Reporting and Evaluation program (PDREP)

17. Topic 2: Product Quality Deficiency Reporting
PDQR categories
PDQR process flow

18. PQDR Categories Category I Deficiency Report (CAT I DR)
A report of a product quality deficiency which may:
Cause death, injury, or severe occupational illness
Cause loss or major damage to a weapon system
Critically restrict the combat readiness capabilities
Result in a production line stoppage

19. PQDR Categories (cont.)
Category II Deficiency Report (CAT II DR)
Major or minor defect that does not meet the criteria set forth in Category I

20. PQDR Process Flow Yes No Issue Report Receive Deficiency Report
Acknowledge Receipt
Perform History Investigation
Need Exhibit
Request Exhibit
Witness Receipt of Exhibit
Perform Independent Investigation
Determine Validity/ Cause of Complaint
Evaluate Supplier Corrective/ Preventative Actions
QA Surveillance Adjustment
Adjust Surveillance
Prepare Report
Issue Report
Exhibit Disposition
End
Yes No

21. Receipt of Deficiency Report
Receive Deficiency Report
Acknowledge Receipt

22. Acknowledge Receipt of Deficiency Report
Return non-applicable PQDRs to the Action Point
Verify PDQR content
Reroute misdirected PQDRs
Acknowledge receipt
Establish initial suspense
Assign for investigation
DRPM
Responsibilities
Receive Deficiency Report
Acknowledge Receipt
WITHIN:
24 hours (CAT I)
72 hours (CAT II)

23. Initial History Investigation
QAS performs an initial history investigation to:
Determine history by review of Government and supplier data
Determine if similar complaints exist
Delegate subcontract level investigation support as needed via PDREP
Acknowledge Receipt
Perform History Investigation

24. Determine Need for Exhibit
Need Exhibit
Yes
Request Exhibit
QAS MUST:
Determine if the supplier needs the exhibit
Request needed exhibit(s) within 7 days
Submit a final report to the DRPM if the exhibit is not received within 45 days
Re-open investigation if exhibit arrives
Witness Receipt of Exhibit

25. Witness Receipt of Exhibit
Exhibit Receipt
Need Exhibit
Notify the PQDR Action Point if damaged
Issue an Exhibit Receipt Letter to Action Point via PDREP
Due dates after exhibit receipt:
20 days for CAT I PQDRs
30 days for CAT II PQDRs
Timeframes include completion of investigation and final report preparation
Yes
Request Exhibit
Witness Receipt of Exhibit

26. Perform Independent Investigation
Evaluate Supplier Corrective/ Preventative Actions
Determine Validity/ Cause of Complaint
Perform Independent Investigation
Identify affected product, processes, and root causes. Affected product includes current production, delivered product, and product in inventory.
Coordinate investigation with the supplier.

27. Perform Independent Investigation (cont.)
Evaluate Supplier Corrective/ Preventative Actions
Determine Validity/ Cause of Complaint
Perform Independent Investigation
When technical data/design deficiencies are the suspected cause of PQDR, coordinate with CMO manufacturing and/or engineering personnel.

28. Determine Complaint Cause and Validity
Evaluate Supplier Corrective/ Preventative Actions
Determine Validity/ Cause of Complaint
Perform Independent Investigation
Conduct independent inspection/test
Witness supplier’s evaluation
Address root cause/corrective actions taken by the supplier
Require supplier to take corrective/preventative action
Issue delegation in PDREP for support at subcontract level

29. Evaluate Supplier’s Actions
Evaluate Supplier Corrective/ Preventative Actions
Determine Validity/ Cause of Complaint
Perform Independent Investigation
Assure the supplier takes corrective action to address:
The immediate cause of the deficiency
Effective action to preclude recurrence
Evaluate and concur or non-concur with the supplier's investigation results
Determine the adequacy of actions taken
Determine the supplier’s position regarding repair or replacement of affected items

30. Adjust GCQA Surveillance
If Yes…
Adjust risk assessments and surveillance
Document surveillance adjustments: what, where, intensity (how much), interval (how often), and methods
Document results on the DD Form 1227
QA Surveillance Adjustment No
Yes
Adjust Surveillance
Prepare Report

31. Adjust GCQA Surveillance (cont.)
If No…
Document results on the DD Form 1227
QA Surveillance Adjustment
Submit report within:
20 days - CAT I
30 days - CAT II No
Yes
Adjust Surveillance
Prepare Report

32. QA Surveillance Adjustment
Exhibit Disposition
CMO approves final responses for CAT I PQDRs
DRPM documents Commander’s approval in PDREP
First Line Supervisor (FLS) reviews CAT II PQDR responses
DRPM releases the final DD 1227 and interim responses to Action Point
DRPM issues Exhibit Disposition Letter and Exhibit Return Letter
QA Surveillance Adjustment
Adjust Surveillance
Prepare Report
Issue Report
Exhibit Disposition
End

33. Question and Answer
After requesting an exhibit, the QAS does which of the following?
Performs an independent investigation.
Evaluates any corrective or preventative actions.
Adjusts the surveillance plan.
Witnesses the receipt of the exhibit.

34. Outgoing PQDRs and Supplier Deficiency Reports
Lesson Topics:
Definitions
Product Quality Deficiency Reporting
Outgoing PQDRs and Supplier Deficiency Reports
Product Data Reporting and Evaluation program (PDREP)

35. Topic 3: Outgoing PQDRs and Supplier Deficiency Reports
Outgoing PDQRs
Government Furnished Equipment (GFE)
Government Furnished Material (GFM)
Supplier Deficiency Reports (SDRs)

36. Outgoing PQDRs – GFE/GFM
Standard Form (SF) 368:
Used to report the receipt of deficient GFE or GFM
Forward through the Administrative Contracting Officer (ACO) to the Procuring Contracting Officer (PCO) within five days of SF 368 receipt

37. Supplier Deficiency Reports (SDRs)
Shipping and packaging deficiencies:
Reported in PDREP on SF 364 and distributed as described in Defense Logistics Agency Instruction (DLAI)
If related to transportation, notify the Transportation Officer

38. SDRs (cont.) Industrial Plant Equipment (IPE)
Reported on a SF 364 with
Defense Supply Center
Richmond (DSCR) as the
action office
Send one SF 364 copy each
to the ACO and Property Administrator

39. Question and Answer What is SF 368 used to report? Deficiencies in IPE
Deficiencies noted with transportation
The receipt of deficient GFE or GFM
Shipping and packing deficiencies

40. Product Data Reporting and Evaluation program (PDREP)
Lesson Topics:
Definitions
Product Quality Deficiency Reporting
Outgoing PQDRs and Supplier Deficiency Reports
Product Data Reporting and Evaluation program (PDREP)

41. Topic 4: Product Data Reporting and Evaluation Program (PDREP)
Guidance
Access
Worklist
DD Form 1227
Sections 1 – 18
Defect code

42. PDREP Guidance
Start at the Naval Sea Logistics Center (NSLC) Portsmouth:
Select the Guides and Manuals Link

43. Access Form 1227 Instructions
View the 1227 Instructions from the Support Point Documents

44. Access PDREP and Logon Select the certificate and enter PIN
Select Accept
Select the certificate and enter PIN
Select the DoD CAC Login

45. PDREP Main Screen

46. PDREP Worklist

47. PDREP Worklist (cont.) Select the RCN to enter 1227 report information
Reply due in 28 days
SMITH,
JOHNATHAN
DAVIS, JAMES
JONES, MERIDITH
DAVIS, JAMES

48. PDREP Worklist Support Point

49. NEW DD FORM 1227 INSTRUCTIONS
Complete DD Form 1227
Prepare 1227 Report
Complete Section 12
Complete Section 13
Complete Section 14
Complete Sections 15 and 16
Complete Section 17
Complete Section 18
NEW DD FORM 1227 INSTRUCTIONS

50. Complete DD Form 1227 - Prepare
Prepare 1227 Report
Complete Section 12
Complete Section 13
Complete Section 14
Complete Sections 15 and 16
Complete Section 17
Complete Section 18
NEW DD FORM 1227 INSTRUCTIONS

51. NEW DD FORM 1227 INSTRUCTIONS
Complete Section 12
Prepare 1227 Report
Complete Section 12
Complete Section 13
Complete Section 14
Complete Sections 15 and 16
Complete Section 17
Complete Section 18
NEW DD FORM 1227 INSTRUCTIONS

52. NEW DD FORM 1227 INSTRUCTIONS
Complete Section 13
Prepare 1227 Report
Complete Section 12
Complete Section 13
Complete Section 14
Complete Sections 15 and 16
Complete Section 17
Complete Section 18
NEW DD FORM 1227 INSTRUCTIONS

53. NEW DD FORM 1227 INSTRUCTIONS
Complete Section 14
Prepare 1227 Report
Complete Section 12
Complete Section 13
Complete Section 14
Complete Sections 15 and 16
Complete Section 17
Complete Section 18
NEW DD FORM 1227 INSTRUCTIONS

54. NEW DD FORM 1227 INSTRUCTIONS
Complete Sections 15 and 16
Prepare 1227 Report
Complete Section 12
Complete Section 13
Complete Section 14
Complete Sections 15 and 16
Complete Section 17
Complete Section 18
NEW DD FORM 1227 INSTRUCTIONS

55. NEW DD FORM 1227 INSTRUCTIONS
Complete Section 17
Prepare 1227 Report
Complete Section 12
Complete Section 13
Complete Section 14
Complete Sections 15 and 16
Complete Section 17
Complete Section 18
NEW DD FORM 1227 INSTRUCTIONS

56. NEW DD FORM 1227 INSTRUCTIONS
Complete Section 18
Prepare 1227 Report
Complete Section 12
Complete Section 13
Complete Section 14
Complete Sections 15 and 16
Complete Section 17
Complete Section 18
NEW DD FORM 1227 INSTRUCTIONS

57. PDREP Defect Code Entry (1 of 3)

58. PDREP Defect Code Entry (2 of 3)
Each field has drop-down menu feature

59. PDREP Defect Code Entry (3 of 3)
PDREP Defect Code Entry – Example of drop-down menu choices for “Detailed Cause Code”

60. PQDR Cause Codes Help determine if PQDR is being properly investigated
Contract Error D
Tech Data Package/Design Error M
Maintenance Deficiency N
Contractor Noncompliance P
Part Application S
Shelf-Life Problem U
Misuse of Item Z
Not Applicable X
Undetermined Cause
Help determine if PQDR is being properly investigated
Allow detection of patterns and systemic issues
Directs actions to resolve pattern and systemic issues

61. DD Form 1227 Release Once the DD 1227 is complete, the QAS:
Follows local CMO procedures for PQDR review
CAT I reports - Commander/Director review
CAT II reports - Team Supervisor (or designee) review
Submits completed DD 1227 to review official or DRPM for ultimate delivery to Customer/Screening Point
NOTE: Local CMO procedures may prohibit using the "Forward to DRPM for Approval and Release" feature in PDREP; check local procedures before submitting completed DD 1227.

62. QA Risk-based Surveillance – Future Concept
Risk Assessment Model
Specific Process Risks Identified
Risk Statements Generated
Contract Technical Review
Critical Characteristics
Critical Processes
First Article
CSI or ALRE
Contract Clauses
Supplier Risk Rating System
Supplier Data
Corrective Action
Customer Complaints
Delivery
PASS
Other
Electronic Surveillance Data
Item and Supplier-Specific Enhanced Surveillance Plan
Item Level
Supplier Level

63. Question and Answer Which PQDR code is matched INCORRECTLY?
C – Contract Error
M – Misuse of Item
P – Part Application
X – Undetermined Cause

64. Question and Answer
In what section of DD Form is the Government's "corrective action taken" recorded? 14 15 16 17

65. Summary Communication is the key to process success
Meeting process timeframes
Coordinating investigations
Exhibit Request/Receipt
Conduct independent investigations
Evaluate adequacy of contractor’s corrective and preventative actions
Risk events – GCQA adjustments
Reports/data available for analysis
Adequate PQDR Reports
Lesson 4: Safety Stock

66. Questions

67. Review Question 1
What form is used to document results of PQDR investigations in PDREP?
SF Form 368
DD Form 214
DD Form 1227
DD Form 1304

68. Review Question 2
Which of the following is NOT a reason for the QAS to perform an initial history investigation?
To determine if similar complaints exist
To review Government and supplier data
To document surveillance adjustments
To delegate subcontract level investigation support if needed

69. Review Question 3
Once the supplier's corrective and preventative actions are evaluated, what happens next in the PQDR process flow?
The exhibit is disposed
A history investigation is performed
Receipt of the exhibit is acknowledged
Adjustment to surveillance is decided

70. Review Question 4
Within how many days does the QAS submit a final report to the DRPM if the exhibit is not received? 25 35 45 55

71. Review Question 5
Section 16 of DD Form records the supplier's position related to _________________.
Repair and replacement
Need for alert notification
Distribution comments and attachments
Deficiency cause and evaluation