AUDIT REPORT

FOR

Majik Oasis Engineering Sdn. Bhd. ..

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COMPANY NAME: Majik Oasis Engineering Sdn. Bhd. DATE: 9 June 2010

..

AUDIT STANDARD:

ISO 9001 : 2008

TYPE OF AUDIT:

Initial Certification ISO 9001 : 2008

ASSESSED SCOPE OF ORGANISATION: Provision of Project Management in Building Construction and Infrastructure Works AUDIT OBJECTIVES: To ascertain compliance with the audit criteria with a view to certification to ISO 9001:2008 standard ANZSIC CODES: 4113,4121

NAMES/ADDRESSES OF SITES AUDITED: Lot 3633, 2nd Floor, Medan Jaya Commercial Centre, 97000 Bintulu, Sarawak, Malaysia ORGANIZATIONAL OR PROCESSES AUDITED: All relevant departments and processes EXCLUSIONS & JUSTIFICATIONS (IF APPLICABLE): Clause 7.3 Design and development Clause 7.5.2 (Validation of processes for production and service provision) Justifications given and indicated in the quality manual SUMMARY OF AUDIT & OBSERVATIONS: (a) Current Nonconformity and/or Opportunity for Improvement No NC, Two opportunities for improvements and three observations AUDIT CONCLUSIONS/RECOMMENDATION:
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The audit was conducted with the cooperation and assistance of the management representative and all the staff of the organisation. All the relevant processes and staff responsible for them were interviewed and sample records verified to ascertain compliance with the audit criteria. The company from the findings of the audit is in compliance with the requirements of ISO 9001:2008 standard with the exception of the OFIs and observations indicated earlier. Since there is no major non-conformance, the auditor recommends that the organisation be certified to ISO 9001:2008 standard.

LEAD AUDITORS NAME: Robert Tang

Signature: AUDIT TEAM MEMBERS (IF APPLICABLE):N.A Audit standard(s)/audit criteria ISO 9001:2008 ACSTCMKT (Rev 0) Issue date : 1 January 2007 Quality Management Systems Requirements ACS Terms & Conditions Clients quality manual, quality procedures and relevant supporting documents This report details the outcome of our stage 2 audit of your quality management system to determine the degree of compliance with your own quality system documentation and the requirements of the ISO 9001:2008 quality system standard. This stage 2 audit was conducted in accordance with ACS standard operating procedures. The reporting format follows the selected quality management system standard, clause by clause, and findings are reported as appropriate. Activities that are not in compliance with the audit criteria are reported on our NON-CONFORMANCE REPORTS (NCs) or OPPORTUNITY FOR IMPROVEMENT forms (OFIs). A NON-CONFORMANCE REPORT is a non-compliance of a serious nature, one that may have a significant impact on the quality of the services provided by your company, and/or relate to multiple non-complying activities. NCs must be responded to, corrected and formally closed-out before certification and registration can proceed. Many NONCONFORMANCE REPORTS can be closed-out by our review of documentation and, therefore, you should submit copies of such documentation with your response. If follow-up visits are required for close-out purposes, then we will contact you to arrange a mutually convenient time.

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OPPORTUNITY FOR IMPROVEMENT form addresses areas which are not considered to have a serious impact on the quality of the products provided by your company and normally relate to isolated non-complying activities. OBSERVATIONS point out areas where initiative can be taken to improve sections of your quality system. It is not mandatory to respond to OBSERVATIONS. However, they are taken into consideration at the next surveillance visit, since an observation may be a preventative measure or part of the continuous improvement process. Please respond to this report by completing the NON-CONFORMANCE REPORTS (NCs) and OPPORTUNITY FOR IMPROVEMENT forms (OFIS) referred to and attached in this report prior to the closing meeting on the last day of the audit. (refer to page 7 of this report)

Your signature is required against both Company Representative spaces on the form, and please fill in details of your intended corrective action and the date you anticipate completing the corrective action. If you have a problem meeting the required response times, then please contact us to re-evaluate proposed action and time-scale. (refer to page 7 of this report) If you have any queries, complaints or appeals , please contact the office by phone or email kietang@gmail.com.

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AUDIT FINDINGS:
4. QUALITY MANAGEMENT SYSTEM The general requirements of the system remain established through the Quality Manual, 6 Mandatory Procedures, Process Diagrams, Project Quality Plan Template, Forms and Checklists . This system remain the controlling process of the management system. The organisation had identified the processes and the sequence and interaction of those processes, as they affect the provision of project management in building construction and infrastructure works. The control of outsourced processes are also defined in the quality manual. The required written procedures remain in place and are being complied with. The method of document control remained appropriate. Required records were available and the control of records by identification, storage, protection and retrieval were verified. The documented procedures and manual were verified to be approved by the Managing Director. Revision control was established via revision number on the documents. The documents including external documents were also distributed to various sections via a distribution list duly signed as acknowledgement of receipt by the recipients. The document master list sighted also contains external documents and these documents were sighted to have identification.

5.

MANAGEMENT RESPONSIBILITY The Managing director was interviewed about the objective of obtaining ISO 9001:2008 certification. He remarked that whilst the objective of gaining certification to the ISO 9001:2008 standard is to complied with the requirement of the Construction Industry Development Board, CIDB Malaysia, more importantly the express purpose is to have a quality management system that can be utilised to not only complied to clients specifications but also to serve as a platform for continual improvement. The quality policy sighted was signed by the Managing Director and the staffs interviewed were cognisant of the intent of the intent of the policy. The policy was also found to have been communicated to all relevant staffs. The quality objectives were sighted and they are consistent with the quality policy. The objectives are measurable that would enable them to be monitored and they are defined for relevant functions and processes. However, the quality objectives should have action plans to enable them to be implemented. OFI#1 The job description & specifications defined should be communicated to relevant staff to ensure that they fully understand their duties and responsibilities. Observation #1

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Currently, there are no completed records as the company is new and projects are not yet awarded. Record control will thus be verified at the first surveillance audit. Part of the verification of the records at the next audit would look at how the company regulate the use of records such as issuance, revision status, distribution control. The quality management representative is Ms. Atiqa. She was interviewed about her role. From her responses, she is aware of her role that she is playing.

6.

RESOURCE MANAGEMENT The competency requirements have been defined by way of job specification & descriptions. Personnel files have also being sampled and verified. The personnel files contained information such as application form, letter of employment, application form, resume and relevant certificates and copies of identity cards & driving licenses for truck drivers. The company conducted an appraisal of staff to determine their competency requirements. The aftermath of this appraisal resulted in identification of training needs for some staff. Subsequently, these staff underwent public trainings. The training effectiveness evaluations were conducted. It is recommended that the immediate supervisor upon training obtain a copy of the course notes (if provided) and interviewed the staff concerned on the understanding of the theory prior to observing their practical application of the trainings received. Observation #2

7.

PRODUCT REALISATION Verified the tenders that the company has prepared and submitted to the respective clients. Thus far, no projects have yet to be awarded. Due to this, the project implementation as well as relevant inspections and/or tests would be verified at the first surveillance visit. Purchase Orders were sighted. Suppliers were evaluated by means of self-evaluation questionnaires and annual assessments done through the supplier assessment form. The criteria were stated in both instances. Sighted also the criteria for re-evaluations defined to enable re-evaluations to be conducted. In addition, the calibration of the instruments or equipments used for inspection and/or testings were unable to be verified as well and will be carried during next audit.

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8.

MEASUREMENT, ANALYSIS AND IMPROVEMENT The internal audit and management review meeting were conducted on 25 and 30 May 2010 respectively. The internal audits covered all the relevant elements and clauses of the standard and internal company procedures. The management review covered all the required agenda and they are minuted accordingly. Findings of the audit were documented in the report. These findings should be documented in non-conformance reports to enable proposed actions to be defined, implemented and follow through to completion. OFI#2 Customer survey forms were sent out and the clients feedback to the company. No adverse comments from the clients with the feedback generally positive. However, the company could do well with recording the verbal complaints received and match them with the survey findings. Preventive actions can also be determined from these inputs. Observation#3 No customer complaints & non-conforming report to report at this stage.

HAS ALL PREVIOUS NON-CONFORMANCES (NC) AND/OR OPPORTUNITIES FOR IMPROVEMENTS (OFI) VERIFIED AND CLOSED-OUT? NOT APPLICABLE Note: If No, raised an NC INFORMATION PROVIDED ON APPLICATION FORM CONFIRMED? YES ARE THERE ANY CUSTOMER COMPLAINTS RECEIVED BY THE CLIENT? NO (delete those not applicable) If YES, DOES THE CLIENT HAS THE MECHANISM TO RECEIVE THE COMPLAINTS AND RECORD THE PROPOSED CORRECTIVE ACTIONS ? YES/NO (delete those not applicable) If No, raised an NC If yes, ARE THE PROPOSED CORRECTIVE ACTIONS VERIFIED TO BE EFFECTIVE? YES/NO If No, raised an OFI
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HAS THE CLIENT CONDUCTED AN INTERNAL AUDIT & MANAGEMENT REVIEW? YES Note : If No, raised an NC ARE THE INTERNAL AUDIT AND MANAGEMENT REVIEW SERVE AS EFFECTIVE MECHANISM TO ACHIVE COMPLIANCE TO REQUIREMENTS, CUSTOMER SATISFACTION AND IMPROVEMENT? YES Note : If No, raised an OFI DIFFERENCES FROM INFORMATION PRESENTED AT CLOSE-OUT MEETING: Nil Note to client : Please ensure that any Non-conformance (NC) and/or Opportunity for improvement (OFI) raised by the auditor(s) that you respond with appropriate corrections and/or proposed corrective actions before the closing meeting on the last day of the audit. These corrections and/or proposed corrective actions with evidences of compliance for NCs should be emailed to ACS at kietang@gmail.com. within 30 days or earlier from the last day of the audit. Should there be a need for a follow-up visit to close the NCs, appropriate arrangements would be made with the client. For OFIs, the proposed corrective actions can be closed out by the auditor during the next scheduled surveillance audit . Subject to satisfactory responses on the proposed corrective actions , the NCs can be downgraded to OFIs. The client shall ensure appropriate actions are taken as per the proposed corrective actions with objective evidences ready for the auditor to close out the OFIs at the next scheduled surveillance audit. Note to Lead Auditor : Please ensure that prior to signing the certification/recertification/surveillance decision checklists that all NCs or previous NCs & OFIs have been effectively closed and clients have submitted all evidences. Closed-out NCs & OFIs together with objective evidences are to be emailed to ACS with all other required documents for certification decisions to be made. Downgraded NCs to OFIs shall be defined in the NC reports. Disclaimer During initial stage 2 & recertification audits, ACS auditors would audit all applicable elements of certified quality management system of the applicants organization and ISO 9001:2008 standard as per the audit plan. Surveillance audits would only cover selected elements of certified quality management system of the applicants organization and ISO 9001:2008 standard. In any case, the process by which the auditors conduct all the audits would be on a sampling basis.

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