RISK, QUALITY, NCR & CORRECTIVE ACTIONS

Project Manager control of project risk, quality assurance, non-conformance and corrective action

Yacht refit projects contain technical, commercial, programme, safety, regulatory and interface risks. The Project Manager must identify these risks early, assess their potential effect and ensure that suitable mitigation or response actions are assigned and monitored.

Quality control is not limited to inspecting finished work. It begins with clear specifications, approved procedures, competent personnel, inspection points, test requirements and documented acceptance criteria.

When work does not meet the required specification, drawing, procedure or acceptance standard, the issue should be formally identified and controlled. A Non-Conformance Report, or NCR, provides a structured method of recording the problem, containing its effect, defining the required disposition and preventing unsuitable work from being accepted or hidden.

Corrective action goes beyond repairing the immediate defect. It should address the cause of the problem where appropriate so that recurrence is reduced.

Key responsibilities

• Establish a project risk register at the beginning of the project.
• Record technical, commercial, programme, safety and regulatory risks.
• Describe each risk clearly and identify its potential consequence.
• Assess probability and impact using a defined project method.
• Prioritise significant risks.
• Assign a responsible risk owner.
• Define mitigation, avoidance, transfer or acceptance actions where appropriate.
• Monitor residual risk after mitigation.
• Review the risk register regularly.
• Escalate significant changes in project exposure.
• Establish quality requirements for each work package.
• Confirm applicable drawings, specifications and procedures.
• Define inspection and test requirements.
• Establish inspection hold points and witness points where required.
• Confirm required material certificates and traceability.
• Verify specialist qualifications and approvals.
• Record inspections and test results.
• Identify work that does not meet defined requirements.
• Raise an NCR where formal non-conformance control is appropriate.
• Contain or segregate non-conforming work where necessary.
• Record the nature and extent of the non-conformance.
• Determine an appropriate disposition.
• Coordinate repair, rework, replacement or technical acceptance as applicable.
• Obtain required approval before accepting departures from specification.
• Verify completed corrective work.
• Identify root cause where recurrence or systemic failure is a concern.
• Establish corrective actions to prevent recurrence.
• Track NCRs and corrective actions to closure.
• Maintain photographic and documentary evidence.
• Include significant quality and risk matters in project reporting.

A practical qualitative risk assessment normally considers both probability and impact, with impact assessed against objectives such as cost, schedule, quality or performance.

PROJECT MANAGER COMPETENCY TEST

Scenario 1 — Hidden Defect

A structural repair has been completed, but inspection identifies an unacceptable weld defect. The interior team is scheduled to cover the area later the same day.

Question:
What should the Project Manager do?

A. Allow the area to be closed because the repair is structurally complete
B. Prevent closure, record the non-conformance, coordinate corrective work and obtain the required reinspection before the area becomes inaccessible
C. Photograph the defect and close the area
D. Ask the interior contractor whether they are comfortable proceeding

Correct answer: B

Why:
Non-conforming work must remain controlled until the required corrective action and acceptance process are complete. Closing the area would risk concealing the defect and losing inspection access.

Scenario 2 — Recurring Failure

The same type of coating defect has occurred repeatedly in several areas despite repeated local repairs.

Question:
What should the Project Manager do?

A. Continue repairing each defect individually
B. Investigate the common cause and implement corrective action in addition to repairing the existing defects
C. Increase the inspection frequency only
D. Accept the defects because they are recurring

Correct answer: B

Why:
Repeated defects suggest a systemic cause. Corrective action should address why the problem is recurring, not only repair each individual symptom.

Scenario 3 — Programme Risk

A critical supplier warns that a long-lead component may be delivered three weeks late, but the delay has not yet happened.

Question:
How should this be treated?

A. Ignore it until the delivery date is missed
B. Record it as a project risk, assess probability and impact, assign mitigation actions and monitor it
C. Record it as a closed issue
D. Remove the component from the programme

Correct answer: B

Why:
The event is uncertain but could materially affect project objectives. It should therefore be treated proactively as a risk until it occurs or is no longer relevant. PMI guidance distinguishes project risk as uncertainty that may affect objectives. 

Scenario 4 — Unapproved Departure

A subcontractor proposes a repair method that differs from the approved drawing because it is faster and cheaper.

Question:
What should the Project Manager do?

A. Accept the change if the subcontractor is experienced
B. Record the proposed departure and obtain the required technical approval before accepting the alternative method
C. Allow the work and update the drawing afterwards
D. Treat the drawing as guidance only

Correct answer: B

Why:
A departure from approved requirements should be formally assessed and accepted by the appropriate technical authority before it is incorporated into the work.

MODULE COMPLETION

Before completing this module, the Project Manager should be able to:

• distinguish risk from an issue
• establish and maintain a project risk register
• assess risk using probability and impact
• assign risk ownership and mitigation actions
• identify residual risk
• understand basic quality-planning principles
• establish inspection and test requirements
• define hold points and acceptance criteria
• identify and record non-conforming work
• understand the purpose of an NCR
• distinguish correction from corrective action
• coordinate repair, rework, replacement or approved disposition
• recognise when root-cause investigation is appropriate
• verify corrective work and reinspection
• track NCRs and corrective actions to closure
• maintain quality evidence and lessons learned
• report significant risk and quality matters to project stakeholders

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