Background

Non-conforming parts (also referred to as rejects) are parts

failing to conform to quality requirements. We judge the
non-conformity to be the supplier's responsibility if any of
the following conditions exist:
• The part does not conform to the current drawing or
specification
• The part does not conform to applicable quality standards
• The part does not conform to limit or master sample
guidelines
• The part does not perform or function per design intent
• The part does not conform to expected commercial quality
• The part fails within accepted warranty period for the end
user
Requirements

When the Qa/qc personnel informs the supplier that non-

conforming parts have been found, the supplier is required
to:
1. Undertake inspection, segregation, and/or repair of suspect
parts.
2. Analyze the cause(s) of the non-conformance and
implement appropriate corrective action.
3. Report results of sorts, suspect lot range information,
repairs, investigations and corrective actions to the
authority.
4. Reflect results to similar systems or processes and to the
supplier’s problem history records.
Requirements

Note – The supplier must immediately notify, in writing,

the qa/qc representative at the affected production
facility and follow the nonconformance requirements
when:
1. The supplier determines that a non-conforming
product has been shipped from the supplier’s facility.
Requirements

2. The supplier will notify the appropriate authorities that

the shipped products is or may be non-conforming.
3. The supplier commences an investigation relating to
potential defects and/or potential nonconforming
product
4. The supplier notifies of or reports to about a death
claim and/or notice it has received.
Non-conforming Product Undertake
Inspection, Segregation and/or Repair
The following list clarifies the requirement to undertake
inspection, segregation, and/or repair of suspect parts:
— Inspection, segregation, and/or repair may be required at a
supplier, at a warehouse or consolidation center, or at the
client’s facility.
— Any required inspection, segregation, and/or repair will be
undertaken without delay, upon direction from appropriate
authority.
— If temporary workers are used to inspect, segregate and/or
repair suspect parts, those workers are contracted by the
supplier from a temporary service and are supervised by the
supplier.
Non-conforming Product Undertake
Inspection, Segregation and/or Repair
— The supplier is responsible to provide the necessary
tools and supplies for repair/rework/sort.
— All supplier associates or contracted temporary
workers at the companies facilities must wear safety
shoes and safety glasses, as necessary, for the supplier
associates. If additional safety equipment is provided
by client, the supplier is responsible for those items.
Non-conforming Product Undertake
Inspection, Segregation and/or Repair
— The supplier is responsible for all labor and material
costs of inspection, segregation, and/or repair incurred
by the client for the repair of completed motors or sub-
assemblies due to the supplier’s non-conforming parts.
This includes time spent containing and/or repairing
parts/units.
Non-conforming Product Undertake
Inspection, Segregation and/or Repair
— The supplier is responsible for the costs of any expendable
items used in the inspection, segregation, and/or repair.
— The supplier is responsible for the cost of any complete or
partially complete items or subassemblies that cannot be
offered for retail sale due to the supplier’s nonconforming
part.
— At client’s discretion, suspect lot(s) of parts may be returned
to the supplier for inspection, segregation, and/or repair. In
this case, the entire lot(s) may be charged as rejects for
financial and inventory reconciliation.
Non-conforming Product Undertake
Inspection, Segregation and/or Repair

— The supplier decides disposition of non-conforming

parts. The supplier is responsible for the costs of
returning nonconforming parts to the supplier.
— The supplier submits an operation standard for client’s
confirmation prior to actual repair/rework/sort
activity. Supplier/sort associates must have knowledge
of the repair/rework/sort requirements.
Non-conforming Product Analyze the
Cause, Implement Corrective Action
The following list clarifies the requirement to analyze
the cause(s) of the nonconformance and implement
appropriate corrective action.
— The supplier is responsible to identify the root cause of
the nonconformance and to implement an effective
countermeasure to prevent recurrence.
— Corrective actions are applied to similar systems or
processes.
Non-conforming Product Analyze the
Cause, Implement Corrective Action
— The supplier is responsible for testing and related costs
to confirm the root cause of the nonconformance.
— The corrective action requires use of the IPP(Inspection
Program Personnel) system..
— The corrective action requires revision of quality
documents if the change has an effect to the documents
(e.g. Control Plans, and process operation standards).
Report Results to Client
The following list clarifies the requirement to report
results of sorts, suspect lot range information, repairs,
investigations and corrective actions to client;
— At the client’s discretion, results of sorts, repairs,
investigations and corrective action is reported using
the Reject Report.
— The Client considers the scope and severity of the
problem when setting the extent of reporting results.
Preliminary results may be required at client’s
discretion.
Reflect Results
— The supplier is responsible to apply preventive actions
to similar systems or processes (parallel analysis).
Non-conforming Product Additional
Clarifications
The following list clarifies additional requirements;
— Failure to properly adhere to the IPP system may
negatively impact suppliers performance rating.
— The affected plant’s quality departments have final
responsibility to judge part quality conformance and
responsibility for any non-conformance. The
appropriate quality department reviews any rejections
disputed by the supplier.
— The supplier has one month from the time a report is
closed to dispute the report.
Supplier Initial Response
The supplier’s initial response is required within 24 hrs
from the time of notification from the client. The
initial response includes;
— Method of containment
— Action plan
— Any investigation or analysis results available
— Others items as requested by the client
Supplier Final Response
Reply by due dates specified according to the level of
concern and method noted on the Reject report. The
supplier’s final response includes:
— Appropriate management approval (prior to returning
to the client)
— When attachments are used indicate on the reply form
(e.g. “attachments 4 pages”) and attach in a logical
sequence.
— If corrective actions cannot be fully implemented by the
response date, a schedule of correction activity must be
submitted.
— If the due date for the response cannot be met, the supplier
must contact the Client’s Quality Representative prior to
the due date. A new due date may be arranged provided the
supplier is making a good faith effort to resolve the
problem.
— For suppliers whose Quality Rating falls in the “Requires
Investigation” rating in accordance to the Supplier
Performance Evaluation System, a letter will be issued by
the client and the supplier shall be responsible for
implementing action for improvement as described.
Non-conforming Product Charge Backs
The Client charges the supplier for expenses due to non-
conforming product. Examples of items charged for
include (but not limited to)
— Downtime
— Client’s materials the supplier uses to sort or repair
parts
— Client’s expenses for containing, sorting, repairing
— Consolidation Center or in-house at client fees (e.g.
access to parts or pallet moves)
— Shipping fees for replacement parts (including export
customers)
— Investigation costs (e.g. layouts, testing, etc.)
— Warranty claims from end user
QUESTIONS
— Write briefly on the process of rectifying the issues
related to non-conformance of items or product.