Internal Quality Audit Report

Company Name: LILAI CONSTRUCTION AND DEVELOPMENT CORP.

Address: Peterbilt / Veterance compound, Taguig City

Representative: Johnny B. Bautista Position: Plant-In-Charge

Date: February 19, 2010

Activity Report

The audit process consisted of Document review of the established Quality Management System: this is to determine whether the system that has been created is being implemented.

Opening Meeting

The audit start with an Opening Meeting between the audit team and the Management of the company (refer to Audit Attendance Record). During the Opening meeting the company were advised of:

The objectives of the audit. The roles of each of the audit team members. The concepts of Non-conformance and the general classifications that could

be raised if non-conformance was identified. The fact that a Closing meeting would be held at the conclusion of the audit

activities at which the overall Findings and Conclusions of the audit team would be presented to the company management.

Conduct of Audit

The audit involved the selective sampling of various kinds of Objective Evidence that demonstrated the extent of effective implementation of company procedural requirements. The types of Objective Evidence sampled were:

Paper- records, data, files etc. Practice - Observed operational activities People - levels of understanding, awareness of requirements, adequacy of

internal communications, commitment to quality from management, customer focus etc.

The audit team used the IQA checklists to guide the audit evaluations following the audit plan detailed in the itinerary. During the on-site audit, and at appropriate times, the audit team met in private to review the progress of the audit to that time and to exchange experiences to ensure that any areas requiring cross checking by other team members in other areas were communicated. The audit team also reviewed the QMS, Standard and Procedure of the company.

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Internal Quality Audit Report

Summary of Audit

Audit includes sampling of document reviewed presented and counter check with the standards and procedures.

Audit of departments including Quality Management Representative (QMR). Management Review (taken last March 27, 2009), management communication with the employee through morning briefing (February 17, 2010) and clients feed back through Clients Satisfaction Survey (Mktg F2 Rev1 4th quarter of 2009 result of 85% in which target is met), audit of the marketing which includes the standards and procedure from acquisition to DTS (MK QS S0601-1 F2 R1 dated February 15, 2010 was checked) to delivery of concrete to client. Requirements before pouring such as contract and purchase order where also checked. If there is customer complaints it was recorded on the complaints log book. Production was also been checked (from records review on daily Dispatching Report – FSG Prod f10 rev0 dated February 19, 2010 which was tallied to Delivery Receipt no. 166733) including inspection of product which included in the Quality Assurance Slump Monitoring and concrete pouring report FSG QS S0901 F4 Rev1 which is taken by the Site Engineer (K. Yangay/R. Martin/Marza) and raw materials including suppliers evaluation. Maintenance of the Transit Mixers based from the Daily Hours Monitoring LC QS F1501 F9 REV3 were checked and Batching Plants based fron the Daily Checklist for Batching Plant LC QS F1501 F1 R1 were also audited. Audit of Employees training were checked, and eveluation was conducted twice a year as per company’s rules. Records and documentation were also audited, changes are made through the use of Communication Slip.

There were no changes in the organization structure, however, there were new appointed PIC and Marketing Coordinator.

Audit Findings

Last non-conformance was closed on DCC, which is the markings of double underline for changes made for PR QS S0701-2, no incident was checked during the audit.

There was a non conformance on the the part of Document Control. As per control of incoming documents an appropriate control or the like shall be established as a means of ensuring that the document was received etheir by: logbook, receiving slip, and others, however HRD was not included in the distribution list of the revised job description of the maintenance department.

Opportunities for improvement

The sompany to check the applicability of forms of the different department, standards and procedure, work instruction, job description and Quality Management Standards, to remove outdated and redundant procedures.

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Internal Quality Audit Report

Closing Meeting

The closing meeting set out to provide company management with a verbal recap and report of the conduct of the audit and to present the Findings and Conclusions of the audit team and team leader.

Prepared by:

Reden D. GalvezLead Auditor

Auditors:

Charmaine B. Llames

Catherine M. Flores

Katherine C. Anub

Elizabeth M. Encisa

Auditor Trainee:

Aileen V. Subiaga

Conformed by:

__________________ ____________________Representative Position Signature Over Printed Name

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