GlossaryKind of term: Manufacturing termNon-conformance report (NCR)

What is a non-conformance report?

A non-conformance report records which product fails its requirements, how many pieces are affected, who decided what and what happens to them.

A non-conformance report, the NCR in many shops, is the document that records an identified departure from the drawing, the order or the specification. It names the part with its revision, the feature, the requirement and the value found, the number of pieces affected, where the problem was found and who assessed it. Then comes the disposition: scrap, rework, repair, return, or use under a concession from the customer. The nonconformity can be a dimension, but also the wrong material, a missing certificate or damage.

What does the standard say about a non-conformance report?

ISO 9001:2015, in clause 8.7 on the control of nonconforming outputs, requires nonconforming outputs to be identified and controlled so they are not used or delivered unintentionally, for example by correction, segregation or return. You record what the nonconformity was, what action was taken, what concessions were obtained and who decided. A new edition of ISO 9001 appeared in 2026, with a transition period for certificates; which edition applies follows from your certificate and your customer's requirements. The standard does not prescribe a form. The terms concession and deviation permit are defined in ISO 9000. Customers and sector standards can set stricter requirements, for example on who may approve a repair.

How does a non-conformance report work in practice?

A non-conformance report costs time that no estimate allows for: measuring again, assessing, talking to the customer, reworking or remaking, and the paperwork. Book that time against the order where the deviation arose and the actuals show which part keeps costing more than planned; in general overhead it disappears. When the same features keep coming back, the cause often lies in the route, the setup or the measuring method, and the customer may ask for a root cause analysis such as an 8D report.

What is a non-conformance report often confused with?

A non-conformance report is not a concession: the report records the deviation, the concession is the customer's permission to use or ship the parts anyway. A deviation permit, by contrast, is asked for beforehand, before you make the parts. And an 8D report is a root cause analysis that can follow a nonconformity, not the record of the nonconformity itself.

Frequently asked questions

What is the difference between a concession and a deviation permit?

A concession is asked for afterwards: the parts are made and deviate, and the customer allows them to be used. A deviation permit is asked for beforehand, before you make the parts, to depart from a requirement.

Where do I book the hours of an NCR?

That is an accounting choice. Booked against the order where the deviation arose, they stay visible in the actuals for that part. As general overhead you can no longer tell which part they belong to.

Does ISO 9001 prescribe an NCR form?

No. The standard asks that you control nonconforming output and record what the nonconformity was, what action you took, any concession and who decided. The form is yours to choose, unless your customer prescribes its own.

Your shop's terms. In every estimate.

Blake lays out the requirements from drawing and model as proposals and builds the cost per operation, with your own machines and rates. Your team decides.