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I  PURPOSE

The intent of this procedure is to describe the process at Dee Electronics for the Control of Nonconforming Product (Section 8.7 of ISO 9001:2015).

The overall Responsibility and Authority for activities related to this element of the standard have been assigned to the President. Team members are charged with the responsibility to implement the procedure as written, and have been granted appropriate freedom and authority to do so.

II APPLICATION

This procedure applies to all stages of the process — from incoming materials and in-process production to finished goods and distribution.

III  PROCEDURE

1. Upon receipt, if products are nonconforming (damaged, part number wrong, count wrong, etc.), Purchasing, Quality Assurance Coordinator, and Sales, when appropriate, are notified. The Quality Control Coordinator or Receiving Personnel records the nonconformance if nonconformance is traceable to supplier error. Product is labeled with Non-Conforming label and then moved to a HOLD AREA.
2. If product is found to be nonconforming after being received, it is identified with Non-Conforming label/tag, and then moved to a secure HOLD AREA to await disposition.  Corrective Action Report (CAR)/RMA document identification is noted on labeling when the document record has been created.
3. The Quality Control Coordinator with team input, determines the disposition of nonconforming product (disposition may also be delegated to the Warehouse Supervisor).
4. Disposition alternatives include:
   • Rework – Product will be reworked to meet specified requirements. Verification is required before release.
   • Repair (Use-as-Is) – Product may be repaired and used with customer approval (requires documented concession).
   • Scrap – Product is destroyed or otherwise rendered unusable.
   • Return to Supplier – For purchased materials, supplier is notified and return/credit process initiated.
5. When customers accept the order by concession without repair, Sales records the acceptance on the original order in the ECIS database. Details of the concession include identification of the customer representative, the date of the concession and a description of the order as accepted. The record of concession without repair is a retained quality record.
6. Returned goods are given an RMA # approval by Quality Control Coordinator and recorded in the CAR/RMA. Quality Control Coordinator dispositions customer-returned goods as stated above in paragraph 4.
7. Product non-conformances are investigated for root causes, analyzed for trends, and discussed in Management Review.
8. Nonconforming orders (e.g., improper scanning, inappropriate product numbers, or inaccurate counts) are refilled, recounted, and rescanned by warehouse personnel.
9. PRODUCT RETURNS: If a product nonconformity is detected by the customer after delivery or use has started, the customer is instructed to return the product, and a Return Authorization/Corrective Action (RMA/CAR) is approved by Quality Control Coordinator and issued by Inside Sales (Customer Service).