A Non-Conformance Report (NCR, or just “NC”) is the record of something that didn’t meet spec — a defective part, a failed test, a mis-assembly caught at final QC, a customer-returned item with a warrantable defect. Logging NCs is how you turn one-off annoyances into data that drives change.
How to get there #
Menu: Quality → Non-Conformance
Direct URL pattern: https://yourdomain.com/?bizRt=quality/ncr/manager
When to open an NC #
- Incoming inspection — a carton of 24 brake pads arrives but 4 are the wrong compound.
- In-process — during assembly, a hub bearing feels rough out of the box.
- Final QC — a pre-delivery inspection fails a derailleur shift test.
- Customer return — a warranty claim comes back as a manufacturing defect.
- Shop process failure — a stored customer bike goes out with the wrong tire pressure spec.
Creating an NC #
- Click New.
- Set the NC Type: Incoming / In-process / Final QC / Customer Return / Process.
- Pick the Item (SKU) where relevant — links the NC to the inventory record.
- Pick the Vendor (for incoming defects) or Customer (for warranty returns).
- Enter:
- Quantity affected.
- Lot / Serial (if tracked).
- Severity — Critical (safety), Major (functional), Minor (cosmetic).
- Defect Description — specifics, not “bad part”. Photos help.
- Discovered By (employee).
- Disposition — Use-As-Is, Rework, Return to Vendor, Scrap.
- Attach photos or supporting documents.
- Save. An NC number is assigned.
NC lifecycle #
- Open — logged, awaiting disposition.
- Under Review — decision pending on disposition.
- Disposition Approved — action agreed (Rework, RTV, Scrap, etc.).
- Action Complete — physical action done, tied to an Adjustment or Return to Vendor if applicable.
- CAPA Opened — if systemic, a Corrective Action is created.
- Closed — all actions verified.
Linking NC to other records #
- Inventory Adjustment — when scrapped or written off (Category 4).
- Vendor Return — when returned to the vendor (Category 3).
- Customer Return — when the warranty comes through a return (Category 2).
- CAPA — when the root cause warrants a permanent fix.
Important: An NC by itself doesn’t move inventory. It’s a record. Pair it with the right inventory or return transaction so the books, the stock ledger, and the NC log all agree.
Disposition definitions #
| Disposition | Meaning | Typical follow-up |
|---|---|---|
| Use-As-Is | Out of spec but acceptable with customer notice or discount. | Document the waiver. |
| Rework | Can be brought back to spec in-shop. | Rework record / labor hours. |
| Return to Vendor | Send back for credit or replacement. | Vendor RMA + Vendor Refund (Category 5). |
| Scrap | Unusable, no value. | Inventory Adjustment (Category 4). |
| Hold for Investigation | Pending root cause. | Quarantine stock; open CAPA. |
Examples at Ridgeline Cycles #
- Incoming: BrakeBros ships 24 pads; 4 are the wrong compound. NC Severity: Minor. Disposition: Return to Vendor. Linked to Vendor Return for 4 units.
- Customer Return: A two-month-old hub shows play beyond tolerance. NC Severity: Major (functional). Disposition: Return to Vendor under warranty; replacement offered to customer at no charge.
- Final QC: Custom gravel build fails the shift-test on the 7th gear. NC Severity: Major. Disposition: Rework in-house; logged against the build work order.
Tips for Ridgeline Cycles #
- Make the lead mechanic the default assignee for all incoming and in-process NCs. Rotating ownership dilutes follow-through.
- Photograph every defect before you pack it to return. The photo is the evidence when the vendor questions the claim.
- Don’t suppress small NCs. Ten minor NCs from the same vendor are a Supplier Evaluation conversation starter.
- Review NCs monthly. Look for repeats by item, vendor, and defect type — that’s where your next CAPA comes from.
Where to go next #
- Corrective Actions — open a CAPA when the NC reveals a systemic issue.
- Supplier Evaluations — NCs feed into vendor scorecards.
- Quality Reports — NC trending by item, vendor, severity.