# Nonconforming Product Control Audit Checklist > Source: https://netray.co/tools/nonconforming-product-control-audit-checklist > Publisher: Netray (netray.co), AI and integration engineering for ERP and manufacturing systems. > Section: Free Tools ## Short answer A practical internal audit checklist for how your plant identifies, segregates, dispositions and records nonconforming product. ## Category quality ## Audience - Internal auditor - Quality manager - Production supervisor ## Tool **Kind:** checklist **Groups:** #### Identification and segregation **Items:** **Text:** Nonconforming product is clearly tagged or labelled at the point of discovery **Critical:** true Tags show part number, lot or serial, quantity, reason and date **Text:** A defined quarantine or hold area exists and is physically separated **Critical:** true Quarantine areas are marked and access is controlled No unidentified material is found near machines, in bins or on carts **Text:** Nonconforming stock is held in a blocked or quality inspection status in the ERP **Critical:** true Physical quantity in the quarantine area matches the ERP blocked quantity Suspect material from other lots or stations is checked when a defect is found #### Reporting and disposition **Items:** **Text:** Every nonconformance has an NCR number and a record **Critical:** true NCR describes the requirement and what was found, with measurements Disposition options are defined: use as is, rework, repair, scrap, return to supplier **Text:** People who can disposition are named and authorized **Critical:** true Use as is and repair dispositions have engineering justification **Text:** Customer approval is obtained where the contract requires it **Critical:** true Dispositions are made within a defined time limit Open NCRs are reviewed in regular meetings with aging reported #### Rework, repair and scrap **Items:** Rework instructions are documented and approved **Text:** Reworked product is reinspected against the original requirement **Critical:** true Repair is distinguished from rework and handled per its own rules **Text:** Scrap is rendered unusable or clearly marked before leaving the area **Critical:** true Scrap is recorded in the ERP with a reason code Returned supplier product has a return authorization and a record Costs of scrap and rework are captured #### Records, analysis and corrective action **Items:** Completed NCRs are retained for the required period Defect and reason codes are consistent across lines and shifts NCR data is analysed by defect, supplier, part and process, at least monthly **Text:** Recurring problems trigger a corrective action request **Critical:** true Supplier nonconformances are communicated to the supplier **Text:** Containment includes product already shipped or in transit when relevant **Critical:** true **Text:** Customer notification occurs when nonconforming product may have been delivered **Critical:** true Effectiveness of corrective actions is reviewed before NCR trend is accepted as improved **Scoring Note:** Count conforming items per group. Any failed critical item is a finding to raise in the audit report, even if the overall score is high. Sample real NCRs and physical locations, not just procedures. ## Content **Intro:** Nonconforming product control is one of the most audited processes in any plant. Use this checklist to walk the floor and the records, and to find gaps before an external auditor does. **Sections:** #### How to run the audit **Body:** Go to the floor, not the office. Start in the quarantine area and trace three tagged items back to their NCRs and their ERP status. Then pick three closed NCRs and trace forward to the disposition, rework or scrap record and any corrective action. Mark each item as pass or fail as you go. Export the completed checklist to PDF for the audit report, or to Excel to track follow-up on each finding. #### What good looks like **Body:** In a well-controlled plant, you can ask anyone where nonconforming product goes and get the same answer. The physical quarantine and ERP status agree, each tag has an NCR number, and dispositions are made by named people within a defined time. Scrap leaves the area marked and recorded. Where a customer requires approval for use as is or repair, the approval is attached to the record and not buried in an email. **Bullets:** - Physical stock and ERP status agree - Named, authorized disposition authority - Rework reinspected against the original requirement - Customer approvals on file where required #### Common findings **Body:** Common findings include untagged material at machines, quarantine bins that are also used for good parts, use as is decisions with no justification, rework with no reinspection record, and open NCRs that are months old. Another is inventory blocked in the ERP that no longer exists physically. Treat repeated findings as a system issue: ask what in the process makes the shortcut easy, and address it through the procedure, tools or training. **Cta:** If reconciling physical quarantine stock with ERP blocked stock is a recurring audit finding, we can help build a read-only exception report over your ERP. **Faq:** #### How often should this audit be done? **Answer:** Many plants audit the process at least annually as part of the internal audit program, and risk-based plants audit higher-risk areas more often. A short floor walk monthly is a useful supplement. #### What is the difference between rework and repair? **Answer:** Rework brings a product into conformance with the original requirement. Repair makes it usable but it may not meet the original requirement, so it often needs engineering justification and sometimes customer approval. #### Who can authorize use as is? **Answer:** Only people named in your procedure, usually quality and engineering together, and the customer when the contract requires. Production operators and supervisors should not have this authority alone. #### Should scrap be recorded in the ERP? **Answer:** Yes. Recording scrap with a reason code lets you analyse cost and trends, supports inventory accuracy, and gives evidence that nonconforming product did not return to stock. ## Search terms nonconforming product audit checklist, ncr process audit, internal audit nonconforming material, iso 9001 8.7 audit checklist, quarantine area audit, mrb process audit checklist, control of nonconforming product checklist, shop floor quality audit --- Talk to an engineer: https://netray.co/contact?intent=erp_ai | Machine catalog: https://netray.co/agent/catalog.json