4.4 Supplier Nonconformance (SCAR) Management

A quality system is not defined by its perfection, but by its reaction velocity when entropy strikes. Nonconforming material is a radioactive asset; it must be isolated, identified, and dispositioned immediately to prevent contamination of the production line. This chapter defines the Non-Conformance Material Report (NCMR) workflow, the Material Review Board (MRB) authority, and the emergency protocols for "Quality Escapes."

Nonconforming Material Control (The NCMR)

Any material that deviates from the drawing, specification, or approved sample is "Nonconforming." It is not "Suspect"; it is guilty until proven innocent.

Immediate Action Protocol:

1. Identification: The moment a defect is confirmed, physically tag the material with a Red "REJECT" Label.
2. Segregation (The Red Cage):
   • Rule: Nonconforming material cannot reside on the active floor. Move it to the locked MRB Cage or a designated Red Zone within 1 hour of detection.
3. System Lock: The SQE must place the Lot on "Quality Hold" in the ERP to prevent accidental scanning/picking.

The Material Review Board (MRB)

The MRB is the "Supreme Court" of quality. It is a cross-functional team authorized to decide the fate of detained material.

Voting Logic:

• Quality (SQE): Chair. Owns the final decision on risk.
• Engineering: Validates functional impact.
• Purchasing: Executes the commercial transaction (Credit/Return).

Disposition Paths:

• Return to Vendor (RTV): Default action. Supplier owns the defect. Purchasing issues a Debit Memo.
• Scrap: Material is destroyed on-site. Supplier pays for material + disposal costs.
• Sort/Rework:
  • Constraint: Only permitted if the rework process is documented and approved by the SQE.
  • Cost: Supplier pays for internal labor (e.g., $50/hour) to screen the stock.
• Use As Is (UAI):
  • Constraint: Requires a signed Concession/Deviation from Engineering. Never allowed for Safety or Regulatory characteristics.

Pro-Tip: Do not use the MRB as a "permanent storage" solution. Set a hard limit (e.g., 5 days) for disposition. If no decision is reached, default to RTV.

The Containment Playbook (The Fire Drill)

When a defect is found, the clock starts. The goal is to "Fence the Problem."

Time-Based Containment:

• Phase 1: Internal Containment (T + 2 Hours):
  • Stock Sweep: Check Warehouse, Line-Side Stock, and WIP. Quarantine everything with the suspect Date Code.
  • Clean Point: Tag the first known "Good Unit" on the line with a Green Label.
• Phase 2: External Containment (T + 24 Hours):
  • Stop Ship: Formally notify the supplier to cease shipments immediately.
  • Controlled Shipping (CS1): Mandate that the supplier performs 100% inspection offline before shipping new lots. The supplier must mark each box with a "100% Inspected" stamp.

Escape Handling (Field/Line Spills)

An "Escape" occurs when a defect bypasses the SQ/IQC firewall and reaches the Manufacturing Line or the End Customer. This is a system failure.

Recovery Logic:

1. Traceability Report: SQE pulls the "Where Used" report to identify every finished unit containing the bad lot.
2. Risk Assessment: Engineering determines severity (Safety vs. Nuisance).
3. Notification:
   • Internal: Notify Operations Director immediately.
   • Supplier: Issue a Level 1 SCAR. The supplier has 24 hours to submit an initial containment plan.

The "3-Lot Rule":

• IF an escape occurs -> THEN the next 3 incoming lots from that supplier must undergo Level III (Tightened) Inspection or 100% Measurement at the supplier's expense.

Final Checklist