What is a Nonconformance Report?

A Nonconformance Report (NCR) is a document used by organizations to record when something does not meet the required standards or specifications. Think of it as a report card for what went wrong in a process or product. If a product is faulty, or a process doesn’t follow the rules, an NCR helps document the problem clearly.

The main purpose of this document is to help the organization find out why the problem occurred, how to fix it, and how to prevent it from happening again. It’s an essential part of quality management systems (QMS) and helps organizations improve continuously.

Why Do Organizations Need an NCR?

Organizations need to use Nonconformance Reports because they help:

Identify issues early before they cause bigger problems

Document problems clearly for analysis and action

Help decision-makers choose the best way to fix issues

Track recurring problems to prevent future mistakes

Meet regulatory and quality standards like ISO 9001:2015

The Standard to Follow: ISO 9001:2015

Creating and managing NCRs must follow ISO 9001:2015 standards—a globally recognized quality management system (QMS) standard. Specifically, clause 8.7 of ISO 9001:2015 addresses the control of nonconforming outputs, guiding organizations to:

Detect and record nonconformities

Decide how to handle them (disposition)

Take appropriate corrective actions

Verify that actions were effective

Keep records for future audits and improvement

Why ISO 9001:2015?

This standard ensures that organizations maintain a consistent, effective process for dealing with nonconformances, helping improve product quality, satisfy customers, and meet legal and regulatory requirements.

The Key Elements of a Well-Structured NCR
A good NCR should include several essential components. Let’s explore these in detail.

1. NCR Title and Reference Number

Every NCR must have a clear title that quickly describes what the problem is. It should also include a unique reference number to help track the document easily. Think of it as the name and ID of the problem.

2. Date and Personnel Information

This part records:

The date when the problem was identified

Names and roles of the person who found the nonconformance

Names and roles of the person responsible for resolving it

Signatures of involved people should be included to verify who approved the actions.

3. Description of the Nonconformance

This is the main part of the report. It should clearly explain:

What exactly went wrong (What happened?)

Where it occurred (Where did it happen?)

When it was noticed (When did it happen?)

Which rule, standard, or process was broken (What was the expected requirement?)

Supporting evidence like photos, test results, or measurements

This clear description helps everyone understand the problem fully and quickly.

4. Classification: Severity of the Nonconformance

Nonconformances are classified based on how serious they are:

Critical: Poses safety risks, legal issues, or possible product recalls

Major: Significantly impacts quality or compliance but not safety-critical

Minor: Small issues that do not affect safety or quality but still need correction

5. Root Cause and Disposition Options

This part is usually filled out after initial fixing. It includes:

The root cause of the problem—why it happened

The disposition — how the problem will be handled. Typical options include:

Rework (fixing the defect)

Rejecting or scrapping the item

Accepting with concessions (if minor and approved)

Immediate containment actions to prevent spreading of the problem

6. Corrective Actions and Preventive Measures

After understanding the root cause, organizations plan corrective actions to fix the current problem and preventive measures to stop future issues. This includes:

Changes to processes

Staff training

Equipment maintenance or upgrades

7. Verification and Closure

Once corrective actions are implemented, a verification process confirms that:

The problem is fully solved

The fix works over time

The NCR can be officially closed

8. Final Approval and Signatures

The person responsible (often a quality manager) reviews all actions and confirms the issue is resolved by signing off and dating the NCR.

The NCR Process (Step-by-Step)

Handling NCRs follows a systematic process:

Identify the Nonconformance: Detection during audits, inspections, or customer complaints.
Document the Issue: Fill out the NCR form with all details, evidence, and classification.
Contain the Nonconformance: Take immediate action to isolate or stop the problem from affecting other products or processes.
Investigate Root Cause: Use techniques like the 5 Whys or Ishikawa diagrams to find the real cause.
Develop Corrective and Preventive Actions: Plan how to fix the current issue and avoid similar problems in the future.
Implement Actions: Carry out the planned fixes and improvements.
Verify Effectiveness: Check that the corrective actions worked over time.
Close the NCR: Once verified, formally close the report and record the closure date.

What is a Non Conformance Report - When to Issue an NCR — What is a Non Conformance Report – When to Issue an NCR

How to Develop an Action Plan for Non-conformance

Developing a robust action plan involves:
Setting clear criteria for identifying nonconformance
Training staff on how to recognize issues
Instantly reporting problems through a standardized NCR form
Investigating the root causes thoroughly
Deciding and implementing corrective and preventive actions
Tracking progress and ensuring timely closure

Preventing Nonconformance

Prevention is better than correction. Effective strategies include:
Management review: Regular meetings to review quality status, identify risks, and set new goals.
Internal audits: Systematic, scheduled audits to check compliance and process effectiveness.
Customer feedback: Listening to customers’ complaints and suggestions to find potential issues early.

These activities help catch problems before they happen, saving time and costs.

Final Words – What is a Non Conformance Report

Having a clear, standardized process for managing nonconformances (like following ISO 9001:2015) promotes continuous improvement and high-quality products. Properly documenting and resolving issues through NCRs ensures transparency, accountability, and prevents recurring problems. Organizations that follow these practices enjoy better reputation, compliance, and customer satisfaction.

FAQ

1. What is a nonconformance report?

It’s a formal document used to record when something fails to meet standards, so it can be fixed and prevented.

2. Why is the standard ISO 9001:2015 important?

It provides a proven framework for ensuring quality and consistency in process management, including handling nonconformance.

3. What are disposition options in an NCR?

Ways to handle the problem, such as rework, reject, accept, or scrap.

4. Who should fill out a nonconformance report?

The person who detects the problem starts it; quality or process managers handle investigations and fix plans.

5. How do you determine the severity of a nonconformance?

Based on its impact on safety, compliance, and quality—classified as critical, major, or minor.

6. How do you verify that corrective actions work?

Through follow-up checks, audits, and data review over time.

7. How does an NCR help in continuous improvement?

By tracking issues and solutions, organizations learn from mistakes and improve processes.

8. Where can I get a sample NCR template?

Many organizations provide free templates, or you can download one from quality management resources online.

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What is a Non Conformance Report? – When to Issue an NCR?