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Purchased Nonconforming Product Report

Date: NCR #:
Planner/Buyer: P.O. #
Supplier: RGA #:
Contact: $ @ STD:
Part Number: Quantity:
Supplier Agreement: (Check one only)
Supplier Rework / Replace Rework in house (I/R)

Supplier Disagrees Credit due from Supplier

Other (explain)

Physical Disposition: (Check one only)


Return to Supplier Rework

Discard Use As Is
(Design Engineering approval required)
Other (explain)

Data Entry Disposition: (Check one only)


Adjust Rework Job Close Job / Charge Back

Close Job / Scrap

NCR Responsibility: (Check one only)


A – Assembly CR - Customer DT – Destructive Test
E - Engineering F - Fabrication FD – Freight Damage
M – Machine Shop ME – Manf. Engineering P – Purchasing
PC - Planning QA – Quality Assurance SM – Sales / Marketing
TR - Testing U – Unidentified V - Supplier
Shipping Instructions: (Shipping Documentation Attached)
Supplier Will Call (Store) Supplier Will Call (Shipping)

Carrier (Shipping) None

Work Instruction
Explanation of terms:
Revision - Date: Page 1 of 2
Purchased Nonconforming Product Report

Supplier Agreement:

• Supplier Rework/replace – Use when we issue a RW purchase order for rework or replacement. RW PO’s are non-stock purchase
orders – see sample.

• Rework in House (I/R) – Use when Supplier agrees to pay for rework performed by Ingersoll-Rand. A Debit Memo must be issued.

• Supplier Disagrees - Use when the Supplier will not accept responsibility for the nonconformance. If the dollar value of the raw purchased
parts at Standard is below $500, the Planner can proceed with work order by buying more parts, etc. at their own discretion. If the dollar value is
greater than $500, DO NOT proceed with the work order or order more parts. All Supplier Disagrees must be elevated, with all supporting
documentation, to the Senior Buyer or higher.

• Credit due from Supplier – Use when the Supplier chooses to issue credit instead of rework or replace. A Debit Memo must be used.
Replacement product must be received under a RW PO to standardize our receiving process.
Physical Disposition:

• Return to Supplier – Use with any Supplier agreement except Rework in House. A RW PO must be issued.

• Rework - Agreed upon by the Planner and Quality Assurance (QA). Use with any Supplier agreements except rework/replace. The
Supplier must agree before costs are charged to the Supplier. Such charges require a Debit Memo.

• Discard - Agreed upon by the Planner and QA. Use with any Supplier Agreement except Rework in House.

• Use as Is - Agreed upon by the Planner and QA. Design Engineering must approve ALL Use as Is dispositions. Use with Supplier
Disagrees or Credit Due from Supplier.

Data Entry Disposition:

• Adjust RW Job - Requires a RW PO. Change completion date to correspond with RW PO due date. May only be used with
Rework/Replace. Performed by Planning. When product is received against the RW PO, the rework job should be closed.
• Close Job / Scrap - Close job and use scrap procedure. Use only with Supplier Disagrees. May use with Physical Disposition Discard.
Performed by QA/data entry.

• Close Job / Charge Back - Close job and move completed quantities to the vendor charge back account. Use only with Credit Due from
Supplier. Performed by QA/data entry. Requires a Debit Memo.

WORK RULES:

• QA opens a Rework Job using the NCR number as the Job number, and forwards a copy of the NCR with any supporting
documentation to Planning.
• Planner/Buyer is responsible for product involved receives NCR, makes a copy, dates the copy with receipt date and files
the copy in the NCR File by NCR number.
• Planner/Buyer evaluates NCR and contacts Supplier within 24 hours of receipt date to discuss corrective action.
• When Supplier agrees to corrective action, Planner/Buyer issues Rework PO or Debit Memo. The RW Job # is used as
the PO number in system. The NCR number is used as the Debit Memo number.
• Rework PO’s do not use the system part number. Instead, it resembles and Outside Processing PO. It should include
ship-to address, method of shipment, etc. and, with copies of the NCR and Purchased Nonconforming Product Report, is
the Shipping documentation.
• Within five days of receipt by Planner/Buyer of NCR, a Purchased Nonconforming Product Report (R40) will be completed
and returned to QA.
• Planner/Buyer follows up on RW PO’s and RW Jobs and changes dates in system as required.

Revision - Date: Page 2 of 2

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