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.
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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