NCMR Process Tutorial - Modern Industriesmodinds.com/Supplier/SupplierDocs/NcmrDoc/NCMR Process Tutorial.… · Supplier NCMR Process Tutorial. ... When an item does not meet specifications

Modern Industries Inc. Page 1By: Dave Anderson

Rev. 06-03-03

Supplier NCMR Process Tutorial


Rev. 06-03-03

When an item does not meet specifications it is identified as discrepant and a Non-Conforming Material Report is created.

A team meeting is held between the Material Review Board (MRB) to review discrepant items.

The MRB consists of:Supplier Quality Engineer (SQE)Manufacturing Engineer (ME)Work Center DesigneeProduction Control (PC)

The quality information gathered on a particular part is printed on a report called the Non-Conforming Material Report (NCMR)

Each discrepancy is assigned a unique NCMR number

What is a NCMR?


Rev. 06-03-03

Fault & DispositionsFAULT:

Supplier FaultMII FaultCustomer Fault

DISPOSITIONS:No Defect – Determined to meet all requirements.Use As Is – Discrepant, but can be used without reworkRework – Reworked at Modern IndustriesRTV – Returned to vendor Pending FA – Returned to vendor for Failure Analysis

These are functional failure only and will receive a temporary disposition of MII Fault; Pending FA. Once the FA is received the disposition will change accordingly.

Scrap – Scrapped, rework not cost effective and or possible


Rev. 06-03-03

Policy for Processing Supplier Fault Items

MII Buyer, or designee, ResponsibilitiesDebit the Supplier specified on the NCMRRequest an RMA number from Supplier

RMA to be given to the MII Buyer within 48 hrs of requestNon-Response from Supplier; Part shipped without a RMA.

Print shipping authorizationWill have a reference PO, NCMR # and RMA # to be used for crediting the purchase

Return discrepant part to the SupplierThe returned part is not to be sent back to Modern IndustriesThere is no rework purchase order open for returned Supplier Fault partsThe debit process is a financial recovery for the cost of the part


Rev. 06-03-03

Policy for Processing Supplier Fault Items (Outside Special Processes)

MII Buyer, or designee, ResponsibilitiesDebit the Supplier specified on the NCMR

If material is scrap –Supplier shall be debited a minimum of three times the cost of service, as noted on the PO, and up to the amount Modern has invested in the part.

This does not apply to predetermined yield agreements.

If material is reworkable –Reverse receipt of PO and return for Rework.Supplier to expedite the rework and return under original PO.

Request an RMA number from SupplierRMA to be given to the MII Buyer within 48 hrs of request

Non-Response from Supplier; Part shipped without a RMA.

Print shipping authorizationWill have a reference PO, NCMR # and RMA # to be used for crediting the purchase

Return discrepant part to the Supplier


Rev. 06-03-03

Discrepant Material; RTV Process Flow

Receive ProductFrom Supplier or

Customer

ProductDeemed

Discrepant

MRB Action§ M.E.§ Q.E.§ WC§ P.C.

Part Deemed "UAI"

RoutingDecision

Part DeemedUnacceptable

Rework Internally

SQE / Buyer to contactsupplier:

q Notify of discrepancyq Obtain RMA #q Ship to address

Shipping toforward tracking

info to Purchasing

RTV

YES

Rework CostsTransmitted toAccounting for

Debit

Discrepant Material; RTV Process Flow

MII-CRP-00072 Rev Date: 06-03-03

Move Inventory inFourth Shift

Create MemoShipper and ship

discrepantmaterial back to

supplier.

InventoryControl to pull

from Bond

Forward to AP

Reverse POReceipt

PORV type "V"

AP to issuedebit

Start

NCMR isGenerated

End

SubmitTo

Stores

NO

AP to issuedebit

Modern Industries


Rev. 06-03-03

Processing Supplier Fault Item which are reworked at Modern Industries

Many times rework is possible and or necessary to be completed at Modern Industries.The supplier will be called and rework at Modern will be requested.

Supplier must be able to complete the rework within the same day.

In the event the supplier cannot perform the rework; Modern personnel will.The supplier will be charged back the cost of rework plus an administration fee of $250.00


Rev. 06-03-03

Policy for Processing Modern Industries Fault Items

MII Buyer, or designee, responsibilitiesWrite a zero dollar expense purchase order

Rework purchase orderRequest an RMA # from Supplier

RMA to be given to the MII Buyer within 48 hrs of requestNon-Response from Supplier; Part shipped without a RMA.

Print shipping authorizationReturn discrepant part to SupplierRequest a quote from Supplier

Quote must include a rework price and commit dateAward P.O. to Supplier

Rework must not exceed 45 days of RMA Request date or PO will beclosed and part debited as asset recovery program.


Rev. 06-03-03

Policy for Processing Modern Industries Fault Items; Pending FA

MII Buyer, or designee, responsibilitiesWrite a zero dollar expense purchase orderModern’s policy is we do not pay for the FA it self.Request an RMA # from Supplier

RMA to be given to the MII Buyer within 48 hrs of requestNon-Response from Supplier; Part shipped without a RMA.Non-response from Supplier; NCMR dispositioned as Supplier Fault; RTV –then Debited.

Print shipping authorizationReturn discrepant part to SupplierRequest a Failure Analysis from Supplier

FA must be received from the Supplier within two weeks of PO date.Non-response from Supplier; NCMR dispositioned as Supplier Fault; RTV – then Debited.Failure Analysis Outcome

Supplier Fault: Rework and Return at no cost to MIIMII or Customer Fault (MII Agrees with FA): Supplier to submit rework quote and Lead-time.


Rev. 06-03-03

MII Expectations from SuppliersFailure Analysis cycle is two weeksTotal rework cycle is 45 calendar days

RMA # within 48 hours of request

Quotes must be received within 10-20 days of request

Supplier quote and rework cycle to be 30 days (15 days for transit)

Supplier should only return parts with an open PO

MII will make every effort to return items received without a open or valid PO, but MII will reject any financial responsibility for lost items which were shipped on a closed or invalid PO number.

Supplier must send quotes and get rework PO awarded prior to shipping part to Modern Industries.

Items received without an awarded PO will be paid at zero dollars.

We will not receive any parts from Suppliers that are greater than 3 days early.

Supplier must use approved forms


Rev. 06-03-03

MII Buyer’s Commitment to Suppliers

Reply to Supplier’s quotes within 3 days of receipt

Notify Suppliers of open purchase orders weekly

Notify Suppliers of debits taken for each NCMR

Issue purchase orders for rework as required

Give copy of all NCMRs to Supplier Customer Service Representative


Rev. 06-03-03

Debits

A Debit is taken when the MII Buyer processes a Supplier Fault item and returns the item back to the SupplierA Debit is taken for an MII or Customer Fault rework item that the Supplier has had for longer than 45 calendar days or past their commit dateA Debit is taken for items sent back for failure analysis and the due date is not met. Due dates are always communicated at the time of the RMA Request.A Debit is taken for the cost of rework, plus administration fees, of Supplier Fault items which MII reworks in house.

The Supplier will have the opportunity to come to MII and rework the item prior to MII reworking the item.The supplier must commit to completing the rework the same day.

Debits show up on payment as a Debit Memo StatementDebit Memo number is equivalent to the NCMR number.


Rev. 06-03-03

NCMR Reversal ProcessSupplier submits a request for reversal fault on a NCMR using the NCMR Reversal Request Form SQE reviews the NCMR Reversal Request Form

Response of accept or reject is sent to the SupplierIf the SQE agrees with the reversal request the MRB will be notified for a re-disposition of the itemBoth the SQE and ME must agree with the reversal and sign the requestThe item will then be re-dispositioned to Modern Fault and a copy is forwarded to MII BuyerThe MII Buyer will credit the original PO which was debited.MII Buyer opens a rework PO if necessary and processes the reversal request to A/PA/P posts credit to Supplier


Rev. 06-03-03

Supplier NCMR Reversal Form

Supplier NCMR Reversal Request

NCMR / SUPPLIER INFORMATION

DATE: SUPPLIER REQUESTER PHONE # FAX #

NCMR NUMBER:

ITEM NUMBER: REVISION DESCRIPTION QUANTITY

CHANGE REQUESTED ATTACHED OBJECTIVE EVIDENCE

Change to Modern Industries Responsibility

Change to Customer Responsibility

q Dimensional data q Process control data q Functional test data q Special processing data

q Photos q Historical data q Other ______________________

REASON FOR REVERSAL *Attach Objective Evidence File As Required

MODERN INDUSTRIES RESPONSE

CHANGE REQUEST STATUS

APPROVED DATE ___________

NOT APPROVED DATE ___________

REASON _____________________________________ _____________________________________________ _____________________________________________

ME REPRESENTATIVE: _____________________ SQE REPRESENTATIVE: ______________________

Modern Industries

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