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Replies: 1

Stephen Holland

Posts: 1

Non-Conforming Material Procedure 8.3
Posted: Nov 5, 2009 10:48 AM

Hi All,

I am in some need of advice on how to handle our non-conforming material procedure. We are a small machine shop that makes parts for several industries such as, aerospace, semi-conductor, medical and industrial. The materials the parts are made from are typically INCO, stainless (303,304,316, etc.) titanium and aluminum, etc. Most part runs are not usually larger than 100 pcs. on the average.

We are currently revising our quality system from a 45208 type system to ISO 9001. We currently use the Jobboss ERP system and uniPoint quality software to create and track non-conformances. Unipoint seems to work very well and has been a great tool. Since I am currently working on a procedure to address 8.3, I am wondering what will work best for us and maybe someone has some examples of how to handle scrap parts that are part of a percentage of a job overrun.

Do we need to create a non-conformance on parts that get scrapped that are part of the overrun? We are looking at issuing non-conformances if it affects the direct order quantity, not the overrun. The other issue is how to identify the parts. We use tags and red marker along with a non-conformance report for ID. We are also thinking of a red bin for rejects at each workstation to capture the parts so they can be segregated away from the good ones. Once the job is finished, they can be dispositioned.

I know there are probably dozens of different ways to handle this. I was hoping for someone in the same type of industry that has gone thru this could give me some ideas of what works best. I am trying not to saddle production with something that may not work well.

Thanks in advance

Dan O'Leary

Posts: 395

Re: Non-Conforming Material Procedure 8.3
Posted: Nov 5, 2009 3:17 PM

Stephen,

It strikes me that part of question comes from terminology. This is often a problem when quality systems and accounting system interact. They use the same technical terms with different meanings.

The dictionary of technical terms for quality is found in ISO 9000:2005. You need a copy before you go too far down the ISO 9001 path.

Let me use a hypothetical example to illustrate the issue. You have a purchase order for 100 pieces of a certain part. It is made of 303 SS and, part of, the process is turning on a lathe.

Because you don’t expect 100% yield, you create a shop order for 103 pieces.

The lathe removes excess metal (ribbons) which you collect and resell. Accounting will call this scrap and sell it to a scrap dealer. Quality doesn’t have a term.

At the end of the job you made 101 pieces that fully conform to the drawing. This means that 2 pieces are nonconforming material. You will, following 8.3, identify and control these 2 pieces to prevent its unintended use or delivery.

Ultimately you will make a decision on what to do with them. Assuming you cannot rework, repair, or regrade you will scrap them. This is a Quality term. You will probably put them in the same bin as the ribbons, so they are also Accounting scrap.

You now have 101 conforming pieces, but the order was for only 100. You have an overrun. You could do a few things. One put it stock, anticipating a subsequent order for the same part. Throw it away, because you don’t keep finished goods inventory. It is not Quality Scrap, because it is conforming material. It is Accounting Scrap because it ends up with the scrap buyer.

If you calculate yield for Accounting, they will start with the value of the raw material issued to the job (103 pieces) and see that it ultimately produced 100 salable pieces.

If you calculate yield for Quality, they will start with plan to produce 103 pieces and end up with 101 conforming pieces.

Hope this helps.

Regards,
Dan