[Company Name]

QUALITY SYSTEM PROCEDURE

Subject:

Procedure Number
QSP 8.3-1
Page

Date Issued

CONTROL OF NONCONFORMING PRODUCT

Written by:

Approved by:

Supersedes

1 of 6

10/01/02
None

Review/Approved Date

1. Purpose:
The purpose of this procedure is to define the steps that [Company Name] follows to document,
segregate, evaluate, and dispose of material/product that is suspect or does not conform to
specified requirements as a means of ensuring that such material is prevented from inadvertent use
or delivery.
2. Scope:
This procedure applies to any personnel involved in or responsible for identification,
documentation, segregation (when practical), evaluation and disposition of nonconforming
materials and products, and for the notification to the functions concerned.
This procedure applies to clause 8.3 in ISO/TS 16949 and Section 8.3 in [Company Name]'s
QMS Manual.
3. Related Procedures and Other Documentation:
Procedure No.
QSP 4.2-3
QSP 8.1-5
QSP 8.5-1

Description of Procedure
Control of Records
Quality Failure Code Reporting and Feedback
Corrective Action

Document No.
QSF 8.3-1.1

Description of Document
Nonconforming Material Report (NCMR)

Copyright 2002 Steudel and Mann, LLC

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Supersedes
None

Date Issued
10/01/02

Page

2 of 6

Procedure No.
QSP 8.31

4. Procedure:
4.1

When nonconforming (or suspect) material or product is discovered, the employee who
identified the material initiates a Nonconforming Material Report (NCMR) by completing
items 1 through 8 and the first two digits of the failure code (item 4) on the NCMR
Form, QSF 8.3-1.1.

NOTE 1:

This employee is referred to as the NCMR initiator.

NOTE 2:

The failure code is used as input to the Quality Failure Analysis and Coding
Technique (Q-FACT) system as a means to analyze defect data and drive a
prioritized reduction plan through corrective action. See Quality Failure Code
Reporting and Feedback QSP 8.1-5.

4.2

The NCMR initiator notifies one or more employees who have been given the
responsibility and authority to perform nonconforming product review and disposition (see
NOTE 3).
4.2.1 If the nonconforming product has left the facility, go to step 4.3.
4.2.2 If the review and appropriate disposition of the nonconforming product will occur
immediately upon its discovery, proceed to step 4.5.
4.2.3 Otherwise, go to 4.4.

NOTE 3:

4.3

The above personnel are designated by the department manager as having the
knowledge to perform nonconforming product review and disposition. These
authorized employees (referred to as the review personnel) are responsible for
obtaining the information, other knowledgeable personnel, etc., necessary for
determining the appropriate disposition.

The review personnel contacts the customer who received the nonconforming product,
documents the correspondence on the NCMR, and sends a copy of the NCMR to Quality
Assurance (QA). Proceed to step 4.5 when the department responsible is ready to
continue review.

NOTE 4:

Quality Assurance may initiate Corrective Action QSP 8.5-1 and/or take other
action appropriate to the effects, or potential effects, of the nonconforming
product provided to the customer. The NCMR stays with the department
responsible for review until its disposition is determined.

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4.4

Page

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Procedure No.
QSP 8.31

The review personnel identifies the nonconforming product with a Nonconforming

Product Tag, writes the NCMR number on the tag, moves the material to the "Bond
Area" of the department in which the nonconformance was found, and sends a copy of the
NCMR to Quality Assurance (QA). Proceed to step 4.5 when the department responsible
is ready to continue review.

NOTE 5:
4.5

Date Issued
10/01/02

The NCMR stays with the department responsible for review until its disposition
is determined.

The review personnel examines the nature of the nonconformance and determines
disposition by addressing the following questions in the order listed:
a)
Does the nonconformance affect product performance?
b)
Can the product be reworked to meet the specified requirements and eliminate
the detected nonconformity?
c)
Can the product be used as is with concession?
d)
Can the product be repaired with concession?
e)
In the case of rejected/scrapped product, can the product be re-graded for
alternative applications?
4.5.1 If the disposition decision involves the product being used as is or repaired
with concession, then go to step 4.6.
4.5.2 If the disposition decision involves visible rework on the exterior of the product,
then go to step 4.7.
4.5.3 If neither of the above apply, go to step 4.8.

4.6

The review personnel obtains and documents concession from the parties responsible for
specifying the product requirements (Customer, End-user, Regulatory body, Engineering,
etc.), and documents the actual condition of the product to be put into use. Go to step
4.8.

NOTE 6:

If the nonconforming product has already been received by the customer, product
recall is initiated.

4.7

The review personnel obtains and documents approval from the customer, end-user,
regulatory body, or other body before performing any rework. (See NOTE 6)

4.8

The review personnel completes the disposition portion (the last two digits of item 4 and
items 9-14, 16 & 17) of the NCMR, and notifies any functions that may be affected by the
nonconforming product and/or decisions on its disposition.

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4.9

Date Issued
10/01/02

Page

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Procedure No.
QSP 8.31

The review personnel compares the intended disposition - with regard to both product and
process specifications - to the currently approved plan which resulted from the Production
Part Approval Process.
4.9.1 If there are no differences between the intended disposition and the approved plan,
then go to step 4.11.

4.10

The review personnel obtains written authorization from the customer prior to proceeding
with disposition and identifies (on the shipping container) any material shipped with
authorization.

NOTE 7:

This requirement applies to products or services from suppliers as well as in-house

production.

NOTE 8:

The authorization shall record the quantity authorized and/or expiration date.

4.11

The review personnel sends the pink copy of the NCMR to QA, and ensures the blue
copy of the NCMR remains with the material until completion of the action to be taken,
and other copies of the NCMR are delivered to the appropriate departments personnel
for initiation of the disposition action to be taken.

4.12

Designated personnel carry out the appropriate disposition action and complete line 18 on
the NCMR.
4.12.1 If the disposition does not involve repair or rework, then go to step 4.14.

4.13

The employee who has been given the authority and responsibility for inspection by the
department manager re-inspects the reworked or repaired product in accordance with the
documented procedures / work instructions.
4.13.1 If the product does not pass re-inspection, go to step 4.2.

4.14

The inspection personnel initials item number 15 on the NCMR, and ensures that the
product is returned to the activity in which the nonconformance was discovered.

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4.15

Page

5 of 6

Procedure No.
QSP 8.31

After disposition and action to be taken are completed, the Department Manager
closes out the NCMR, stores the white copy of the NCMR in the department's
Completed NCMR, and forwards a copy of the closed out NCMR to QA.

NOTE 9:
4.16

Date Issued
10/01/02

All Completed NCMRs are maintained according to Control of Records QSP

4.2-3.

QA reviews the completed NCMRs on a weekly basis for correctness and completeness of
all information and enters the NCMR information into the Q-FACT system according to
Quality Failure Code Reporting and Feedback, QSP 8.1-5.
END OF PROCEDURE.

Copyright 2002 Steudel and Mann, LLC

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Supersedes
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Date Issued
10/01/02

Page

6 of 6

Procedure No.
QSP 8.31

SAMPLE NONCONFORMING MATERIAL REPORT

(17) Route To:

Engineering

Stock/Receiving

Purchasing

Other ______________

Serial No. XXXXX

Date _____(1)_____

NONCONFORMING MATERIAL REPORT

(NCMR)
Part No. _____(2)_____
Failure code __ __ (4) __ ___
Part Name _____(3)_____ Quantity ______(5)______
Job No. _____(6)_____
Supplier/Customer Name _______(7)_______
Description of Problem (8)________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
__________________________________________________________________
DISPOSITION
(9)
(10)
(11)

Rework
Deviate from Spec. Use as is Repair
Scrap/Reject
Regrade

Quantity _____Insp. by ___(15)___

Quantity _____Insp. by __________
Quantity _____Insp. by __________

Requested by _____(12) _____

Date _____
Authorized by _____(13) _____
Date _____
Assigned to _____(14) _____
Date _____
__________________________________________________________________
ACTION TO BE TAKEN
Description of Action to be Taken (16)
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
Action Completed by _______ (18) _______

Copyright 2002 Steudel and Mann, LLC

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Date _____________________

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