Procurement Glossary
Control of Nonconforming Product: Systematic control of defective products
November 19, 2025
Control of nonconforming product refers to the systematic identification, labeling, and handling of products that do not meet specified requirements. This quality process is of central importance to purchasers, as it ensures delivery quality and minimizes risks in the supply chain. Read on to learn what control of nonconforming product entails, which methods are used, and how you can successfully implement this process.
Key Facts
- Systematic process for identifying and handling defective products
- Core component of ISO 9001 and other quality management systems
- Includes labeling, isolation, and decision on use
- Reduces quality costs and prevents customer complaints
- Requires clear responsibilities and documented procedures
Contents
What is control of nonconforming product?
Control of Nonconforming Product is a structured quality process for the systematic handling of products that do not meet the defined requirements.
Core elements of the process
The process comprises several key components for the effective management of defective products:
- Identification and labeling of non-compliant products
- Isolation to prevent unintended use
- Evaluation and decision on further use
- Documentation of all measures and decisions
Control of Nonconforming Product vs. Quality Inspection
While quality inspection identifies errors preventively, control of nonconforming product focuses on the reactive handling of deviations that have already been identified. Incoming goods inspection is often the first step in identifying nonconforming products.
Importance in Procurement
For buyers, this process is essential for ensuring delivery quality and minimizing quality costs. It supports supplier evaluation and contributes to the continuous improvement of procurement processes.
Procedure: How Control of Nonconforming Product works
Systematic implementation is achieved through structured procedures and clear responsibilities for the effective handling of non-compliant products.
Identification and labeling
Non-compliant products are identified through various testing procedures and clearly marked. Random sampling and systematic incoming goods inspections form the basis for detecting deviations.
- Visual identification by means of labels or markings
- Physical separation of compliant products
- Documentation in test reports
Evaluation and decision-making
After identification, a systematic assessment is carried out to determine further use. Exemptions may be granted under certain conditions.
implementation of measures
Depending on the evaluation result, various measures are initiated, ranging from rework to complete blocking. Blocked stock management ensures proper handling.
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Important KPIs and targets
Measurable key figures enable objective evaluation of the effectiveness of control of nonconforming product and support continuous improvement.
Quality indicators
The nonconformity rate and error costs are key indicators of process performance. These metrics are directly incorporated into the quality cost calculation and enable informed decisions to be made.
- Nonconformity rate (PPM - Parts per Million)
- Costs for non-compliant products
- Treatment duration
Process efficiency metrics
Response times and processing times demonstrate the efficiency of the control process. Integration with complaint evaluation creates comprehensive transparency.
Supplier evaluation
Supplier-specific non-conformity rates support supplier evaluation and development. This data is incorporated into audit programs and enables targeted improvement measures for critical suppliers.
Litigation risks and countermeasures
Inadequate control of non-compliant products can lead to significant quality and business risks that must be addressed systematically.
identification risks
Undetected non-compliant products can enter production and cause consequential damage. Inadequate testing instructions and insufficient training significantly increase this risk.
- Systematic training of inspection personnel
- Regular calibration of test equipment
- Implementation of redundant testing procedures
process interruptions
A lack of containment measures can lead to costly production stoppages. Stop shipment actions and line stops are often the result of inadequate controls.
Compliance risks
Incomplete documentation and missing evidence can lead to audit complaints. Compliance with ISO 9001 requirements necessitates comprehensive records of all measures and decisions.
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Practical example
An automotive supplier implements a digital control of nonconforming product system. During the incoming goods inspection, defective components are automatically detected by barcode scanners and isolated in a separate restricted area. The system automatically generates a message to the supplier and initiates an 8D analysis. Thanks to this systematic approach, the nonconformance rate has been reduced by 40% and the processing time has been shortened from 5 to 2 days.
- Automatic detection and labeling
- Immediate supplier notification
- Measurable improvement in quality indicators
Current developments and effects
Modern technologies and changing quality requirements are shaping the further development of control of nonconforming products in procurement.
Digitalization and AI integration
Artificial intelligence is revolutionizing the identification of non-compliant products through automated image recognition systems and predictive analytics. Machine learning algorithms recognize patterns in quality data and enable proactive measures to be taken.
- Automated defect detection through computer vision
- Predictive quality models
- Intelligent decision support
Enhanced traceability
Blockchain technology and IoT sensors enable seamless traceability of non-compliant products. Linking them to lot numbers creates transparent tracking.
Integrated quality systems
Networking with SPC systems and quality gates enables seamless integration into the entire value chain and significantly improves response times.
Conclusion
Control of nonconforming product is an indispensable component of quality management in Procurement, ensuring the systematic handling of defective products. Digitalization and AI integration open up new possibilities for automated detection and efficient process control. Successful implementation requires clear procedures, trained personnel, and continuous measurement of process performance. Only through consistent application can quality risks be minimized and sustainable supplier relationships be established.
FAQ
What is meant by control of nonconforming product?
Control of Nonconforming Product is a systematic quality process for identifying, labeling, and handling products that do not meet the specified requirements. It involves isolating defective products, evaluating the deviations, and deciding on further use or disposal.
What measures are taken in the case of non-compliant products?
Non-compliant products are first marked and isolated to prevent unintended use. They are then evaluated by qualified personnel, which may result in various measures: rework, use with deviation approval, reclassification, or disposal.
How is the effectiveness of the process measured?
Effectiveness is measured using various KPIs, including the non-conformance rate in PPM, costs for defective products, processing times, and repeat rates. These key figures enable continuous improvements and supplier evaluations.
What role does documentation play?
Complete documentation is essential for compliance and continuous improvement. All identifications, evaluations, decisions, and measures must be recorded in a traceable manner. This supports audits, trend analyses, and the development of preventive measures to avoid errors.
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