What Is a Non-Conformance Report?
Written by Jason Westland · Edited by Johanna Barnett
A non-conformance report, often called an NCR, is the controlled quality record used when a product, process, material, supplier output, shipment, document, or other result does not meet a defined requirement. It records the requirement, actual condition, affected and suspect scope, containment, disposition, evidence, approval, and closure decision.
In manufacturing, the NCR controls the immediate nonconformance and records the product decision. It does not replace root cause analysis, corrective action, a supplier corrective action request (SCAR), or an 8D when further investigation or formal response is needed.
NCR Flow
- 1Requirement not met
- 2Actual condition
- 3Affected and suspect scope
- 4Containment
- 5Disposition
- 6Correction
- 7Escalation decision
- 8Evidence
- 9Verify and close
What a non-conformance report records
A non-conformance report documents a specific failure to meet a requirement and the decisions used to control it.
NCR means non-conformance report or nonconformance report.
The requirement may come from a drawing, specification, work instruction, inspection plan, control plan, purchase order, customer requirement, supplier requirement, packaging instruction, certificate requirement, or internal procedure.
A useful NCR should answer five questions:
- 1What requirement was not met?
- 2What was actually found?
- 3What is confirmed affected, and what remains suspect?
- 4What containment, disposition, and correction were approved?
- 5What evidence supports closure, and what linked action remains open?
An NCR is not corrective action. The NCR controls the nonconformance and the product decision. Corrective action addresses a supported cause by changing the process or control so recurrence risk is reduced.
NCR terms that must stay separate
| Term | Definition |
|---|---|
| Nonconformance | Failure to meet a defined requirement. |
| Defect | A nonconformance related to the product's intended or specified use. |
| NCR | The controlled record used to document and manage the nonconformance, product status, disposition, evidence, approvals, and closure. |
| Containment | Immediate action to protect the customer or next process while the issue is assessed. |
| Disposition | The authorized decision for the nonconforming product or output, such as rework, repair, scrap, return to supplier, or use-as-is under concession. |
| Correction | Action taken on the affected product or immediate issue. |
| Corrective action | Action taken against the supported cause by changing the process or control so recurrence risk is reduced. |
| Verification | Confirmation that the approved disposition and correction were completed, required evidence and approvals were recorded, and release or closure conditions were met. |
| Effectiveness | Evidence, gathered over the defined review period, that a linked corrective action worked. |
Keep the record types separate
When to raise a non-conformance report
Raise an NCR when a requirement has not been met and the issue needs a controlled quality record rather than a routine correction.
- A part does not meet the drawing or specification.
- An inspection result is outside tolerance.
- A customer complaint or return identifies a shipped defect.
- A supplier batch fails incoming inspection.
- The wrong material, certificate, label, revision, packaging, or document was used.
- A process step was missed or completed incorrectly.
- Suspect product may have moved beyond the point of detection.
- Product is on hold and needs an approved decision before it can move forward.
- The same issue has repeated or a previous correction did not prevent recurrence.
- A supplier, customer, engineering, or quality approval is needed.
The practical test
When a local record is enough—and an NCR is not needed
Do not raise an NCR for every routine correction. Use the smallest controlled record that preserves product status, traceability, and required approval.
A production, inspection, rework, scrap, or supervisor record may be sufficient when:
- the issue is minor and isolated;
- it is corrected within an existing approved process before product or records are affected;
- no suspect product remains;
- no shipment, customer, supplier, fit, function, safety, documentation, or traceability risk remains;
- no special disposition or approval is needed;
- there is no repeat or trend signal;
- the normal production or inspection record captures the correction and verification.
Example
During an in-process check, an operator finds a small burr, removes it using an approved rework step already defined in the work instruction, rechecks the feature, and records the result on the traveler. No suspect product, shipment, special approval, or recurrence concern remains.
Raise an NCR if the burr exceeds the approved rework limit, affects additional units, escapes downstream, repeats, or requires disposition or engineering approval.
The NCR process: from discovery to closure
- 1
Identify the requirement not met
Start with the controlled requirement. Identify its source and revision where available—for example, a drawing, specification, work instruction, inspection plan, purchase order, customer requirement, supplier requirement, packaging instruction, certificate requirement, or internal procedure.
Do not begin with “bad part” or a guessed cause. A reviewer should be able to compare the requirement with the actual condition.
- 2
Record the actual condition found
Write what was measured, observed, reported, or returned. Keep the description factual and separate from possible cause.
Weak NCR description
Parts failed inspection.
Stronger NCR description
Incoming inspection found incomplete formation on the left locking clip of molded housings. The drawing requires each locking clip to be fully formed and to retain the cover during assembly.
- 3
Define affected and suspect scope
Separate confirmed affected scope from suspect scope. Record the affected and suspect quantities, lots, locations, work orders, shipments, or downstream stock as applicable.
Affected scope is what the evidence confirms is nonconforming. Suspect scope is what might be affected until it is checked or cleared.
The failed housings are confirmed affected. The full supplier lot remains suspect until the full sort is complete. Keep earlier or downstream lots outside scope unless evidence links them to the same condition.
- 4
Contain the issue
Containment controls immediate risk. Containment can include:
- place the supplier lot on hold or in quarantine;
- stop shipment or block system release;
- hold related WIP or finished goods;
- check downstream stock where relevant;
- perform temporary sort or targeted inspection;
- identify and record the clean point.
Record who was notified because containment fails if another area continues to consume, move, or ship suspect product.
Good containment entry
Place the supplier lot on quality hold, move it to the designated quarantine area, prevent production use, and check related WIP for material from the same lot.
- 5
Decide disposition
Disposition is the authorized decision about what happens to the nonconforming product or output.
Disposition When it applies Rework Return product to full conformity with the original requirement and verify it after rework. Repair Make product acceptable for intended use without necessarily restoring full conformity; use only with authorized approval and post-repair verification. Scrap Permanently prevent unintended use of the nonconforming product. Return to supplier Return supplier-owned or supplier-caused product under the approved disposition. Use-as-is under concession Release nonconforming product only under authorized concession, including customer approval where required. Sorting and holding are not final dispositions. Sorting separates conforming from nonconforming units; holding prevents movement until an authorized disposition is made.
A deviation is normally approved before work departs from a requirement. Do not use “deviation” as a catch-all disposition for product already found nonconforming.
Repair and use-as-is under concession require the correct authorization before release.
- 6
Complete the correction or product action
Correction deals with the affected product or immediate issue. Examples:
- rework the affected product;
- repair product under approved instructions;
- scrap nonconforming units;
- return affected material to the supplier;
- relabel or repack affected product under approved instructions;
- replace incorrect documentation.
Record post-correction inspection separately as verification. Correction is not corrective action: correction deals with what is already affected; corrective action changes the process or control that allowed the issue.
- 7
Decide whether the NCR needs RCA, corrective action, a CAR, a SCAR, or an 8D
Not every NCR needs a second record. Escalate only when the remaining work needs root cause analysis (RCA), corrective action, a corrective action request (CAR), a supplier corrective action request (SCAR), or an 8D.
- the issue is repeated or trending;
- it escaped to the customer or next process;
- fit, function, safety, or significant risk is involved;
- the issue is systemic or cross-functional;
- the cause is unclear or disputed;
- a supplier must investigate and respond;
- a customer requires a formal response;
- a previous action was ineffective.
Do not open every follow-up record by default. Choose the smallest record that owns the remaining work, and link it to the NCR.
If the issue escaped detection, ask two separate questions: Why did the nonconformance happen? Why was it not detected before moving downstream or reaching the customer?
- 8
Attach evidence
The NCR should be understandable later without relying on memory. Useful evidence includes:
- photographs or returned parts;
- inspection, measurement, or test records;
- the controlled requirement source;
- lot, batch, work-order, or shipment traceability;
- sort, rework, scrap, repair, or return records;
- supplier or customer communication;
- concession or release approval;
- linked RCA, corrective action, CAR, SCAR, or 8D references.
Evidence should support the nonconformance, containment, disposition, correction, approval, verification, and closure.
- 9
Verify and close the NCR
Before closure, confirm that:
- affected and suspect product is controlled;
- the authorized disposition is recorded;
- correction or product action is complete;
- post-correction verification is recorded where required;
- evidence is attached or referenced;
- customer or supplier communication is complete where required;
- any linked RCA, corrective action, CAR, SCAR, or 8D is traceable;
- the closure decision and approver are recorded.
An NCR may close while a linked action remains open only when the procedure allows separate closure, the linked record is traceable, and ownership and due dates remain controlled.
Do not close an NCR because the product was moved out of the way or a follow-up record was opened. Close it when the product decision, evidence, verification, approval, and follow-up path are clear.
An NCR may close while a linked corrective action or SCAR remains open only when product control, disposition and correction are complete and the linked record remains traceable with an owner and due date, subject to the site procedure and customer requirements.
What a complete NCR should include
A complete NCR does not need to be long. It needs to be traceable.
| NCR record area | What a reviewer should be able to see |
|---|---|
| Source | Where and how the nonconformance was found. |
| Requirement | The controlled source, requirement, and revision where available. |
| Actual condition | What was observed, measured, reported, or returned. |
| Affected and suspect scope | Part or material, revision, lot or batch, work order, supplier or customer, affected quantity, and suspect quantity. |
| Containment | What was held, stopped, quarantined, temporarily inspected, or prevented from moving. |
| Disposition and approval | The authorized product decision and the person or function approving it. |
| Correction | What was done to the affected product or immediate issue. |
| Verification | How completion of the disposition or correction was checked. |
| Escalation decision | Whether RCA, corrective action, CAR, SCAR, or 8D is required, including the linked record reference. |
| Evidence | Inspection records, photographs, traceability, sort or rework records, approvals, and communication. |
| Closure | What was accepted, what linked work remains open, the approver, and closure date. |
WORKED MANUFACTURING EXAMPLE
Supplier molded housing nonconformance found at incoming inspection
This example shows how an NCR controls a supplier nonconformance, product disposition, evidence, and escalation without turning the NCR itself into the full cause investigation.
Situation
Incoming inspection finds incomplete formation on the left locking clip of molded control-box housings.
Requirement not met
The drawing requires each locking clip to be fully formed and to retain the cover during assembly.
Actual condition
Multiple housings have incomplete left-clip formation and fail the assembly retention check.
Affected and suspect scope
The failed housings are confirmed affected. The full supplier lot remains suspect until the full sort is complete.
Immediate containment
Place the lot on quality hold, move it to the designated quarantine area, prevent production use, and check related WIP for material from the same supplier lot.
Disposition
Release conforming housings after the full sort and inspection are complete. Return nonconforming housings to the supplier under the approved disposition.
Correction
Return the nonconforming housings to the supplier under the approved disposition.
Verification
Confirm that only conforming housings were released after the full sort, the nonconforming housings were returned, and the released and returned quantities reconcile to the supplier lot.
Escalation decision
Open a SCAR when the supplier must investigate the occurrence cause and detection weakness and provide corrective-action evidence.
Occurrence question
What supplier process condition allowed incomplete clip formation? Check molding parameters, material feed, tooling condition, cavity pattern, setup records, and process observations.
Escape or detection question
Why did supplier inspection not detect the condition? Check the visual standard, sampling plan, retention check, coverage of each locking clip, and inspection records.
Evidence
Incoming inspection record, photographs, requirement source, lot traceability, sort record, assembly retention check, approved disposition, return record, and linked supplier response.
Closure decision
Where the procedure allows separate closure, the NCR may close after affected and suspect product is controlled, disposition and correction are verified, evidence is attached, and the linked SCAR is traceable. The SCAR remains open until the supplier response and effectiveness review are complete.
NCR vs corrective action, SCAR, CAR, RCA, and 8D
| Record or method | Main job | When to link it |
|---|---|---|
| NCR | Controls the nonconformance and product decision. | Use the NCR as the controlling record for the requirement, actual condition, affected and suspect scope, containment, disposition, evidence, approval, and closure. |
| RCA | Uses evidence to support or rule out possible causes and establish the cause. | Link RCA when cause investigation is needed but a full 8D or formal request is not. |
| Corrective action | Changes the process or control associated with the supported cause. | Link corrective action when an owner, due date, verification, effectiveness review, and closure decision are required. |
| CAR | Formal corrective action request from a customer or internal authority. | Link a CAR when a formal corrective-action response is required. |
| SCAR | Supplier corrective action request. | Link a SCAR when the supplier must investigate, respond, correct its process, and provide evidence. |
| 8D | Structured cross-functional response for a customer-impacting, repeated, complex, or high-risk issue. | Link an 8D when a formal D1–D8 response, customer update, team review, and evidence-based closure are required. |
| 5 Whys | Tests one focused possible-cause path. | Use 5 Whys when the problem is well defined and one cause chain can be tested with evidence. |
| Fishbone diagram | Organizes several possible-cause paths. | Use a fishbone diagram when several categories or cause paths must be considered before evidence review. |
Important closure point
When should an NCR link to a SCAR? An NCR does not become a SCAR. Link it to a supplier corrective action request when the supplier must investigate, respond, correct its process, or prevent recurrence.
Common NCR mistakes that weaken the record
| Mistake | Better practice |
|---|---|
| Starting with “bad part” instead of the requirement | State the controlled requirement and the actual condition found. |
| Treating containment as the final fix | Use containment to control immediate risk, then record disposition, correction, and any required corrective action separately. |
| Using hold or sort as the final disposition | Treat hold and sort as interim control activities and record the authorized final disposition. |
| Forgetting suspect scope | Record what else may be affected, where it is, and how it will be checked. |
| Guessing root cause in the NCR description | Keep the NCR factual and move cause investigation into the linked RCA, corrective action, CAR, SCAR, or 8D. |
| Closing without disposition or correction evidence | Attach or reference inspection, sort, rework, scrap, repair, return, release, or approval evidence. |
| Accepting repair or use-as-is without authorization | Record the approval authority and obtain customer approval where required. |
| Closing because a linked action was opened | Confirm product control, disposition, correction, evidence, verification, and traceability before closing the NCR. |
| Ending at “operator error” | Ask what allowed the error and why the process or detection control did not prevent it. |
References and standards context
Use these references as background, then apply your own company, customer, product, process, supplier, and industry requirements.
ISO 9001:2015
Quality management systems requirements, especially control of nonconforming outputs and the nonconformity and corrective action context.
ASQ Quality Glossary
Terminology for nonconformance, corrective action, root cause, and related quality terms.
This guide follows established manufacturing quality frameworks (ISO 9001, AIAG, ASQ definitions) and is reviewed internally before publishing.
This is provided for general manufacturing quality use. Adapt it to your company, customer, product, process, supplier, and industry requirements before use. It is not intended for medical device, pharma, FDA, Part 11, or validated regulated workflows.
When NCR work moves beyond a document, the hard part is keeping the record, product status, disposition, evidence, approvals, and linked actions together. See how 8Dflow is being built to manage NCRs.
Use the non-conformance report template
Use the matching template page when you need a structured form for the requirement, actual condition, affected and suspect scope, containment, disposition, correction, evidence, approval, verification, and closure.