Nonconformance (NCR)

A nonconformance report (NCR) records material that does not meet its requirements and what is done about it. It captures what is wrong, how it was contained and why it happened, then lists dispositions — use the material as is, rework it, scrap it or return it to the vendor. Running a disposition does the real work: scrapping takes stock out, returning to the vendor creates and ships a vendor return.

Where to Access

Quality → Issues, Nonconformance view. From there:

Choose New nonconformance to create one by hand.
Use Raise nonconformance on a quality hold to open one pre-filled from the hold.
An inspection whose plan is set to Hold it and open a nonconformance opens a draft report automatically when it fails, filled in from the failed checkpoints.

Report Fields

Title – A short name for the problem.
Item, lot or serials – The material the report covers.
Quantity – How much is nonconforming.
What is wrong – A description of the nonconformance.
Containment – What was done to stop the problem spreading.
Root cause – Why it happened.
Cost impact – The expected cost; approval is judged on it.
Dispositions – What is done with the material (see below).

Dispositions

Disposition	What running it does
Use as is	Nothing moves; the material is accepted.
Rework	Needs the work order and a failed in-process or final inspection linked to the report; opens a re-inspection that must pass.
Scrap	Removes the quantity from stock, charged to the Quality Scrap Account.
Return to vendor	Needs the vendor; creates a vendor return and sends the goods back.

The material can be split between dispositions — for example part scrapped and part returned. Each disposition then needs its own quantity, and together they must add up to the nonconforming quantity.

A vendor return raised this way is numbered after the report, and its reason and notes name the nonconformance. Record the vendor's credit on it the usual way — see Vendor Return.

How Status Works

Status	Meaning
Draft	Opened automatically by a failed inspection
Open	Created by hand
Pending Approval	Submitted and waiting for approval
Approved	Approved — or approved at once when no approval rule applies
Rejected	Sent back; edit it and choose Submit again
In Progress	At least one disposition has run
Closed	Every disposition has run
Cancelled	Withdrawn before any disposition ran

Working a Report

Fill in the fields and the dispositions, then save.
Choose Submit to send it for approval. If no approval rule applies, it is approved straight away.
Once approved, choose Run on each disposition.
When the last disposition has run, the holds the report covers are released.
Choose Close nonconformance.

A Rework disposition also needs its re-inspection to pass (or be waived) before the report can close.

While a Report Is Open

The lot, serials or received stock an open report names cannot ship, whatever the quality profile says about shipping. This keeps material under investigation from leaving by accident. See Holds & the Shipping Gate.

Common Problems

"I cannot cancel a nonconformance." A report cannot be cancelled once any disposition has run, or after it is closed. Finish running the dispositions and close it instead.
"The dispositions will not save." When the material is split, each disposition needs a quantity, and the quantities must add up to the nonconforming quantity.
"Close is not offered." Not every disposition has run yet.
"Close is refused after rework." The rework re-inspection has not passed yet. Complete it, then close.
"The material is still held after I waived the inspection." Waiving an inspection does not release its hold; running the report's last disposition does.

Best Practices

Fill in Containment as soon as the report is opened — it is the part other people act on first.
Put a realistic Cost impact on every report so approvers can judge it.
Use Return to vendor rather than a manual vendor return for supplier defects, so the return is linked to the report.