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The Additional Requirements for Contingency Plan
(by Choong Ewe Lee)


While conducting training for our clients, we found that some of our trainees could not easily differentiate between Preventive Action & Contingency Plan. In fact, the difference is very simple. It  can be differentiated as below :
• Preventive Action : Any action taken/to be taken to prevent any unwanted circumstance
  (i.e. fire) from happening.
• Contingency Plan : If the above circumstance (i.e. fire) is still happened after the preventive
  action being taken, we shall activate our contingency plan to rescue the above situation, and
  ensure our current operations will be back to normal order in the shortest duration.

So, what are the new requirements of Contingency Plan in IATF 16949:2016 ?


With the new requirements, we have suggested our client to modifie their current Contingency Plan as below:
•    Extend the coverage of contingency plan to recurring natural disaster, such as fire, etc.
•    Shall have notification process to customers, so they will know the extent and duration of the situation that
      impacting their operations.
•    Shall review the Contingency Plan at least once a year.
•    Shall test the effectiveness of Contingency Plan.
•    Shall update the Contingency Plan (by stating the person(s) that authorize the changes & its revision)

  What are the challenges of executing & meeting this requirements?

We found that the key challenge of meeting this requirement is, about testing the effectiveness of Contingency Plan. It is especially, if the organization does not have any experience of facing the actual situation before. Then, the Contingency Plan generated may be a bit lack of practical consideration. Besides, the testing methodology used on the Contingency Plan to assure its effectiveness could be another challenge as well.
  Next Issue:
The Minimum Requirements to be Internal Quality Auditors” 
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