A Non-Conformance Report (NCR) documents a quality defect found in incoming material, in-process production, or finished goods. It records the defect, quantity, source, disposition (use as is, rework, return, scrap), and triggers corrective action.
NCR: Why It Matters
Without structured NCRs, defects are handled verbally and the same problem repeats. NCRs create a paper trail that proves due diligence to customers and auditors (ISO 9001, IATF 16949), and supply the data needed for root-cause analysis. For Indian MSMEs chasing tier-1 OEM business, robust NCR tracking is a prerequisite.
Example with Indian Context
A forging unit in Ludhiana receives 1,000 MS round bars. Incoming QC finds 40 bars with surface cracks and raises NCR-2026-0095. Disposition: return 40 bars to supplier, raise a debit note for INR 8,000, and block the supplier lot pending root cause. Eight weeks of NCR data against this supplier becomes the basis to shift orders to a second vendor.
Related Terms
How ERPDrive Handles It
ERPDrive lets QC raise NCRs directly from the GRN, work order, or dispatch inspection. Dispositions trigger return-to-vendor, rework orders, or scrap writeoffs. NCR analytics by supplier, part, and defect type feed into supplier scorecards and CAPA.
See It in Your Factory
ERPDrive handles NCR workflow as a first-class workflow alongside BOM, MRP, quality, and GST. Book a 30-minute demo.
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