Fault Identification and

Reporting Procedure
Quarter 1 – Module 3:
At the end of the learning period, the students should be able to:
1. define safety defects;
2. check the received materials in accordance with the standard set by
the organization; and
3. create an inventory report of received materials and components.
Q1M3_Fault Identification and Reporting Procedure 1
PRETEST

Q1M3_Fault Identification and Reporting Procedure 2

RECAP

Q1M3_Fault Identification and Reporting Procedure 3

LESSON
• FAULT IDENTIFICATION AND REPORTING
• Product/factory defects
• -"anything that makes the product not reasonably safe". The
field of law that addresses injuries caused by defective merchandise is
named merchandise liability or product liability.
• A PRODUCT IS DEFECTIVE.
• - poorly designed or tested so cannot perform its desired purpose.
• - design is correct, the merchandise could have a manufacturing
defect if it was made using incorrect materials.
• A product may also be considered legally defective if it lacks
applicable instructions for its use, or applicable warnings of
dangers accompanying normal use or misuse of the product.
Q1M3_Fault Identification and Reporting Procedure 4
• Nonconformity to specifications
• - referred as a defect, it means that a deflection from
a specification, a standard and expectation.
• Classification scheme: critical, serious, major and
minor.
• While some situations allow "nonconformity" and
"defect" to be used synonymously, some industries
differentiate between the two;
• a nonconformity represents a failure to satisfy an
intended state and specification,
• whereas a defect represents a failure to fulfill fitness for
use/normal usage requirements.
Q1M3_Fault Identification and Reporting Procedure 5
Sources of nonconformity
• The causes of nonconformities aren't unlimited and therefore
measurable. These are the common causes for deficiencies to arise
include:
• a) poor communication (or miscommunication)
• b) poor documentation (or lack of documentation)
• c) poor or limited training of personnel
• d) poor motivation of personnel
• e) poor quality materials (or lack of appropriate materials)
• f) poor quality tools and equipment (or lack of appropriate tools and
equipment)
• g) poor or dysfunctional operating environment

Q1M3_Fault Identification and Reporting Procedure 6

Safety Defects
•A safety defect could be a legal term
determined by the court.
•The court considers a number of factors
before it decides that a safety defect has
occurred.
•It is not only limited to good quality but
also how the business or individual
represented them.
Q1M3_Fault Identification and Reporting Procedure 7
Recording and Reporting Procedures
• Manufacturing
• - is the making of products by hand or by machine which upon
completion the business sells to a customer.
• But even though how well the products are designed, there are
some instances when manufacturing defects occur and errors or
unevenness in products.
• Defects: DUE mishandling during the manufacturing or packaging
of the products.
• Products doesn’t work or breaks easily, or faulty, you can ask for
replacement.
• This is in accordance with RA 7394, THE CONSUMER ACT OF THE
PHILIPPINES.

Q1M3_Fault Identification and Reporting Procedure 8

Some Pointers to Consider:
• A. Receiving Materials: The process in receiving the materials
are critical part in maintaining the integrity of inventory
systems.
• This also ensures that the materials are properly
documented.
• 1. Match the packaging slips to the items received and make
sure that they delivered on the right departments.
• 2. Check if the materials indicated in the purchase order
matched with the quantity and discounts.
• 3. Make sure materials are in good condition.
• 4. Terms and conditions are met.
Q1M3_Fault Identification and Reporting Procedure 9
• B. Receiving Reports. Being accountable is also an aspect in receiving reports.
• 1. Computerization, bar-coding, scanning are some easy ways to document the
materials received for easy access.
• 2. Any partial payments, discounts and defects on goods must be noted.
• C. Return of Merchandise. In receiving the materials, one must ensure its
completeness and functionality.
• But if found incomplete and defective, merchandise will be returned to the suppliers
and make proper arrangement for its replacement.
• D. Make an Inventory Report of the Materials. Having an inventory of the materials
aims to have the right products in the right quantity at the right time.
• This reduces the cost of having excess inventory while maximizing the sales.
• The Quality checker can record the date of receipt, name of the materials purchased,
quantity, official receipt range, signature of the one who bought the materials and
signed his name afterward.

Q1M3_Fault Identification and Reporting Procedure 10

Example of
Official Receipt:

Q1M3_Fault Identification and Reporting Procedure 11

Q1M3_Fault Identification and Reporting Procedure 12
Q1M3_Fault Identification and Reporting Procedure 13
ACTIVITIES
•A. Directions: Read and answer
the following questions. Write
your answer SHEET.
•1. What is safety defect means?

Q1M3_Fault Identification and Reporting Procedure 14

ACTIVITIES
•B. The supervisor assigned you as the Quality
checker for the month of May. As part of your
task, make a Log and Assessment Report using
the following data below. Make sure you will
record all the items listed and if they were in
good condition or not. Write your answer on the
log report and assessment of materials received
forms provided.
Q1M3_Fault Identification and Reporting Procedure 15
ACTIVITIES
• 1. May 2, 2020
• 2 Solid State Drive 32 Gigabytes Serial Numbers 23456, 23457
• Received from Juan Dela Cruz, OR# 1234
• Found out that 1 Solid State Drive has damaged and no seal
• 2. May 4, 2020
• 5 Optic Mouse Serial Numbers 35678, 35679, 356710, 356711,
356712
• Received from Juana San Jose, OR#2345
• 2 defective optic mouse
Q1M3_Fault Identification and Reporting Procedure 16
ACTIVITIES
•3. May 5, 2020
•4 Monitor Serial Numbers 45678, 45679,
456710, 456711
•Received from CDQ, OR#3456
•4. May 6, 2020
•3 AVR Serial Number 00123, 00124, 00125
•Received from CDQ, OR#2456
Q1M3_Fault Identification and Reporting Procedure 17
•5. May 7, 2020
•5 Keyboards Serial Numbers 678910,
678911, 678912, 678913, 678914
•Received from Juan dela Cruz,
OR#5678
•All delivered items are in good
condition
Q1M3_Fault Identification and Reporting Procedure 18
Q1M3_Fault Identification and Reporting Procedure 19
Q1M3_Fault Identification and Reporting Procedure 20
WRAP-UP

Q1M3_Fault Identification and Reporting Procedure 21

POSTTEST
•Directions: Enumerate the items being
asked. Write your answer on the space
provided.
•1. What are the causes of nonconformities?
•2. What are the things to be considered in
receiving purchased materials?

Q1M3_Fault Identification and Reporting Procedure 22