8.1 NCR workflow: detect, quarantine, disposition, close

A Non-Conformance Report (NCR) acts as the immune system of the factory. It flags manufacturing risks—defective parts, process drifts, or documentation errors—and isolates them before they can reach the customer. A weak NCR process can result in “escapes,” where known bad units are accidentally shipped simply because the digital paperwork was closed while the quarantine was breached. This module defines the lifecycle of a non-conformance.

Phase 1: detect & document

Identification must be immediate and objective. Attempting to introduce subjectivity at the detection stage obscures the true financial scale of quality issues.

Trigger: Any material, component, or sub-assembly that does not meet the design drawing, the approved BOM, or the designated IPC standard.

The Action:

Whenever a defect is visibly found, the physical unit must be tagged immediately. Setting it aside for later must be avoided, as memory is an unreliable process control. Whenever the defect yield rate exceeds the formal threshold for the shift (e.g., 3 consecutive station failures), the line must be stopped and the lead Quality Engineer notified.

Mandatory Data Fields:

1. Part Number & Serial/Lot Number: Traceability is essential.
2. Defect Code: A standardized digital taxonomy must be used (e.g. “Solder Short_U12”, rather than a vague text field saying “Bad Board”).
3. Physical Evidence: A timestamped microscope photo or raw test measurement CSV attached to the digital record.

Critical Factor

The status of “Pending Inspection” can be misleading. If a unit is not explicitly stamped “Passed,” it must be treated as “Failed” until proven otherwise. Unverified material must always be assumed to be non-conforming.

Phase 2: quarantine (containment)

Costly escapes typically occur in the gap between detection and physical isolation.

Physical Control:

Whenever an NCR is digitally generated, the suspect unit must be moved to the locked Red Box or the designated Quality Cage immediately. For suspect units that are too large to easily move (e.g., populated SMT pallets), high-visibility Red “STOP” tape must be applied around the perimeter and the system transaction blocked with an ERP Lock.

Digital Control:

The suspect serial number must be electronically blocked in the MES (Manufacturing Execution System). This ensures that even if a board is removed from quarantine, it cannot be scanned or processed at any subsequent station.

Phase 3: disposition & authority matrix

Disposition is a technical engineering decision, not a negotiation to meet weekly shipping targets. The authority to decide the final fate of a product increases directly with the risk and financial cost.

The authority matrix

Role	Authority Scope	Allowed Dispositions	Financial Limit
Inspector / Operator	Detection Only.	N/A (Must Escalate).	$0
Quality Engineer (QE)	Standard, known Process Issues.	Rework (Standard only), Scrap (Low Value), “RTV” (Return to Vendor).	< $500
Quality Manager	High Value / Complex Non-Standard.	Scrap (High Value), Repair (Non-Standard engineering).	< $5,000
MRB (Eng + Quality + Ops)	Design / Safety Risk / Customer.	UAI (Use As Is), formal Deviation Waiver.	> $5,000

Decision Logic:

When the physical fix is clearly defined in an approved Standard Operating Procedure (SOP), the QE can independently approve Standard Rework. When a unit does not meet the print spec but is functionally safe and requires customer approval, the formal MRB must unanimously approve UAI (Use As Is). When the calculated physical recovery labor cost exceeds 50% of the raw unit value, the unit should be Scrapped. Avoid dedicating engineering hours to material that cannot be economically saved.

Phase 4: close & verify

An NCR is not “closed” simply when the Quality Manager signs the document; it is only closed when the underlying risk to the customer is demonstrably eliminated.

Hard Requirements for Closure:

1. Execution Verification: The rework was performed correctly, AND the unit successfully passed a complete re-inspection/re-test cycle.
2. Inventory Adjustment: The scrapped quantities are financially removed from the ERP system.
3. Root Cause Link: If the NCR was determined to be a systemic process failure, it must be linked to an open CAPA (Corrective and Preventive Action) tracking number.

Strict Constraint

“Open” NCRs must not be allowed to age indefinitely. Old NCRs represent stagnant inventory and unresolved systemic risks. A clear disposition decision must always be forced: fix the issue properly or scrap the unit.

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Recap: NCR Workflow Execution

Phase	Key Action	Requirement / Constraint	Authority / Role
Detect & Document	Immediate Tagging & Recording	Defect vs. drawing/BOM/IPC; Mandatory fields: Part/Serial #, Standardized Defect Code, Timestamped Photo/CSV	Operator / Inspector
Quarantine	Physical & Digital Containment	Move to locked Red Box/Quality Cage or apply Red STOP tape; Block serial in MES/ERP	Discoverer
Disposition	Technical Decision per Authority Matrix	Standard Rework (QE, <$500); Scrap (>50% recovery cost); UAI/Deviation (MRB, >$5,000)	QE, Quality Manager, MRB per matrix
Close & Verify	Risk Elimination Verification	1. Rework verified & unit re-tested; 2. Scrap inventory adjusted in ERP; 3. Systemic root cause linked to CAPA	Quality Manager