# Non-Conformance Report (NCR): Template and Examples

> A free NCR template with the fields auditors expect, three filled-in examples, disposition options and how an NCR links to CAPA and 8D. CSV for Excel.

Canonical: https://origindatapartners.com/guides/non-conformance-report-template
By: Origin Data Partners
Status: Published
Published: 2026-11-13
Updated: 2026-11-14
Sources checked: 2026-11-13

## Quick answer

A non-conformance report (NCR) records a product, part or material that does not meet its drawing, specification or purchase order: what was found, how much, where it is held, who decided what to do with it and why. A usable NCR has an ID, the part and revision, the requirement and the actual result, quantity, containment, a disposition signed by an authorized person, and a link to any corrective action. The template below has those fields, with three filled-in examples.

## Key points

- An NCR answers five questions: what is wrong, how many, where is it now, what will we do with it, and who approved that.
- Only authorized people should sign a disposition; FAA production approval holders are required to work that way.
- Use as is and repair change what the customer receives, so they usually need design or customer approval.
- An NCR fixes one batch; a corrective action (CAPA or 8D) stops the cause. Link the two by ID.

## What is a non-conformance report (NCR)?

A non-conformance is any product, part, material or service that does not meet a stated requirement: a dimension out of tolerance, a wrong material certificate, a missed test, damaged packaging. The non-conformance report is the record of it. It is raised when the problem is found, follows the material until a decision is made, and is closed when the disposition is carried out.

Regulated manufacturers must have this process in writing. An FAA production certificate holder must have a quality system "that ensures that each product and article conforms to its approved design", and its nonconforming product procedures "must provide for the identification, documentation, evaluation, segregation, and disposition of nonconforming products and articles." ([14 CFR 21.137](https://www.ecfr.gov/current/title-14/chapter-I/subchapter-C/part-21/subpart-G/section-21.137)). Medical device makers must "Document a quality management system that complies with the applicable requirements of ISO 13485" ([21 CFR 820.10](https://www.ecfr.gov/current/title-21/chapter-I/subchapter-H/part-820/subpart-A/section-820.10)). If your company is certified to ISO 9001, AS9100, IATF 16949 or ISO 13485, your certificate is audited against the text of that standard and your own procedures. Check the clause wording in your licensed copy; this page cites only the public US rules.


## NCR template: the fields to include

One row per non-conformance. Keep the fields the same on every NCR so they can be counted and searched later. [Download the NCR template (CSV)](https://origindatapartners.com/downloads/non-conformance-report-template.csv); it opens in Excel or Google Sheets and includes one filled-in example row.

| Field | What to record | Why it matters |
| --- | --- | --- |
| NCR number | A unique, sequential ID (for example NCR-2026-0142) | Lets CAPAs, 8Ds and audits refer back to it |
| Date and raised by | When and by whom it was found | Shows how fast problems are caught |
| Source | Receiving inspection, in-process, final inspection, customer return, audit | Separates supplier, internal and field problems |
| Part number, revision, lot or serial | Exactly what is affected, including the drawing revision | A non-conformance against the wrong revision is not a non-conformance |
| Supplier or work order | Purchase order or job number | Links cost and supplier performance |
| Requirement | The drawing note, dimension, spec or PO clause not met | The NCR must state what "good" is |
| Actual condition | Measured value, defect description, photos | Evidence for the disposition decision |
| Quantity | Inspected, rejected and suspect quantities | Drives containment and cost |
| Severity | Critical, major or minor, by your own definitions | Sets who must approve and how fast |
| Containment | Where the parts are held and what else was checked | Stops suspect parts from shipping |
| Disposition and approval | Decision, reason, names and dates of approvers | The core of the record |
| Corrective action link | CAPA or 8D number, or "none required" with a reason | Connects one batch to the fix for the cause |

For severity, the federal acquisition rules give usable definitions. A critical nonconformance is "likely to result in hazardous or unsafe conditions for individuals using, maintaining, or depending upon the supplies or services"; a major nonconformance is "likely to result in failure of the supplies or services, or to materially reduce the usability of the supplies or services for their intended purpose"; a minor one "is not likely to materially reduce the usability" ([FAR 46.101](https://www.ecfr.gov/current/title-48/chapter-1/subchapter-E/part-46/subpart-46.1/section-46.101)).


## NCR example 1: supplier part out of tolerance (illustrative)

An illustrative example, not a real company record. A machined bracket arrives at receiving inspection.

| Field | Entry |
| --- | --- |
| NCR number | NCR-2026-0142 |
| Source | Receiving inspection, PO 55810, supplier "Supplier B" |
| Part | BRK-2207 rev C, lot 0915 |
| Requirement | Hole position 12.70 mm plus or minus 0.10 mm (drawing zone C4) |
| Actual condition | 12.86 to 12.91 mm on 9 of 20 sampled parts; CMM report attached |
| Quantity | 400 received, 20 inspected, 9 rejected, 380 suspect |
| Severity | Major: holes will not align with the mating panel |
| Containment | Lot tagged and moved to the quarantine cage; stock of lot 0915 on the line pulled and checked: none found |
| Disposition | Return to supplier for replacement; approved by quality engineer and buyer |
| Corrective action | Supplier corrective action request SCAR-0061 issued; due in 30 days |


## NCR example 2: in-process defect fixed by rework (illustrative)

Illustrative. During assembly, an operator finds that 14 welded frames have a weld bead shorter than the drawing calls for. The requirement is a 50 mm fillet weld; the actual welds are 38 to 42 mm. Severity is major. The frames are held at the cell. The disposition is rework: extend each weld to 50 mm under the existing weld procedure, then re-inspect 100 percent. Rework returns the part fully to the drawing, so the quality engineer can approve it without engineering. The root cause (a worn wire feed liner) goes to CAPA-0217.


## NCR example 3: customer return (illustrative)

Illustrative. A customer returns 6 control boxes with a loose connector. The NCR records the customer complaint number, the serial numbers, the ship dates and the test result on return (4 of 6 confirm the fault). Severity is major. Containment covers finished stock and boxes already shipped in the same build week, so the NCR lists the shipped serials and the customer notice. The disposition is repair: replace the connector under an approved repair instruction, retest, and return. Because the defect reached a customer, it is escalated to an 8D (see the [8D report example](https://origindatapartners.com/guides/8d-report-example)).


## Disposition options and the material review board

Disposition is the decision on what happens to the nonconforming material. Keep the decision with people who are authorized to make it. For FAA production approval holders the rule is explicit: "Only authorized individuals may make disposition determinations." ([14 CFR 21.137](https://www.ecfr.gov/current/title-14/chapter-I/subchapter-C/part-21/subpart-G/section-21.137)). Many companies give that authority to a material review board (MRB): quality, engineering and, where needed, the customer.

| Disposition | What it means | Usual approval |
| --- | --- | --- |
| Use as is | The part stays nonconforming but is accepted because it still works | Design authority, and the customer when the contract requires it |
| Rework | Brought back fully to the drawing with the normal process | Quality |
| Repair | Made usable by a method that does not fully restore the drawing | Design authority, and the customer when the contract requires it |
| Scrap | Destroyed or made unusable | Quality; record the quantity and cost |
| Return to supplier | Sent back for replacement or credit | Quality and purchasing; usually with a supplier corrective action request |

Scrap must really be scrap: production approval holders need "Procedures to ensure that discarded articles are rendered unusable." ([14 CFR 21.137](https://www.ecfr.gov/current/title-14/chapter-I/subchapter-C/part-21/subpart-G/section-21.137)). On government contracts, the default is rejection: "The contracting officer should reject supplies or services not conforming in all respects to contract requirements", and the contractor ordinarily gets "an opportunity to correct or replace nonconforming supplies or services" ([FAR 46.407](https://www.ecfr.gov/current/title-48/chapter-1/subchapter-E/part-46/subpart-46.4/section-46.407)). Use as is and repair on a government contract need the contracting officer's acceptance under that section.


## From NCR to CAPA and 8D

An NCR deals with the parts. A corrective action deals with the cause. Production approval holders must have procedures "for implementing corrective and preventive actions to eliminate the causes of an actual or potential nonconformity" ([14 CFR 21.137](https://www.ecfr.gov/current/title-14/chapter-I/subchapter-C/part-21/subpart-G/section-21.137)), and for problems that already left the plant ("quality escapes"), procedures for "identifying, analyzing, and initiating appropriate corrective action for products or articles that have been released from the quality system".

Not every NCR needs a CAPA. A common rule: open a corrective action for every critical or repeated non-conformance, every customer return and every supplier escape, and record on the NCR why none was opened otherwise. For supplier problems, the same rule asks for "a supplier-reporting process" for items "subsequently found not to conform" ([14 CFR 21.137](https://www.ecfr.gov/current/title-14/chapter-I/subchapter-C/part-21/subpart-G/section-21.137)). Customer-facing problems are usually written up as an 8D; see the [8D report example](https://origindatapartners.com/guides/8d-report-example). When the fix is a design change, raise an [engineering change order](https://origindatapartners.com/guides/engineering-change-order-template) and put its number on the NCR.


## How long to keep NCRs

Keep NCRs for at least as long as your strictest rule or contract requires. For FAA production approval holders: "at least 5 years for the products and articles manufactured under the approval and at least 10 years for critical components" ([14 CFR 21.137](https://www.ecfr.gov/current/title-14/chapter-I/subchapter-C/part-21/subpart-G/section-21.137)). Customer contracts, ISO 13485 procedures for device makers and product liability exposure often push this longer. Many manufacturers keep quality records for the life of the product plus several years.

Keep the evidence with the NCR: inspection data, photos, CMM reports, approvals and the linked corrective action. An NCR stripped of its attachments cannot be re-examined later.


## Common NCR mistakes

These are the faults auditors and customers find most often in NCR logs.

- No requirement stated: "bad part" instead of the drawing callout and the measured value.
- Wrong or missing revision, so nobody can tell which drawing the part failed.
- Suspect stock not checked: the rejected sample is quarantined, but the rest of the lot ships.
- Use as is signed by someone without design authority, or without the customer approval the contract needs.
- NCRs closed with no corrective action and no reason why none was needed.
- Free-text defect descriptions with no defect codes, so repeated problems are never counted.
- Scrap recorded but not physically destroyed or marked.


## What non-conformance costs: the four cost of quality categories

ASQ defines the cost of quality as a method for seeing how much a company spends on preventing poor quality, on appraising quality, and on internal and external failures. The last two together are the cost of poor quality, and they are where NCRs belong ([ASQ](https://asq.org/quality-resources/cost-of-quality)).

| Category | ASQ examples | Where it shows up in your records |
| --- | --- | --- |
| Prevention | Specifications, quality planning, quality system upkeep, training | Procedures and training records |
| Appraisal | Checking incoming material, setups and products; audits; supplier rating | Inspection records and audit reports |
| Internal failure | Waste, scrap, rework, failure analysis before delivery | NCRs with scrap and rework dispositions |
| External failure | Repairs, warranty claims, complaints, returns after delivery | Customer-return NCRs and 8D reports |

ASQ cites the 2025 ASQE Insights on Excellence Cost of Quality Report, in which only 31% of respondents said they fully understand the impact of quality costs on their organization's financial performance. Recording quantity and disposition on every NCR is what makes that impact countable.


## Your NCR history is also a data asset

Years of NCRs that link the defect, the measurement, the disposition, the corrective action and the result form a record of how real manufacturing problems are found and fixed. Very little of that is public.

AI developers building tools for quality and engineering work ask for this kind of linked, outcome-bearing history; where a license is agreed, it is de-identified and under written terms. Customer-owned drawings, export-controlled technical data and personal details stay out (see the [export-control checklist](https://origindatapartners.com/guides/itar-ear-checklist-cad-data-ai) and [how to de-identify records](https://origindatapartners.com/guides/de-identify-company-data-before-licensing)). The [guide for engineered-product manufacturers](https://origindatapartners.com/guides/engineered-product-manufacturer-data) covers what is in scope and who signs; [licensing CAD and engineering data](https://origindatapartners.com/guides/license-cad-engineering-data-ai) covers the design side.

If your company keeps years of quality and engineering change records, the [guide for engineered-product manufacturers](https://origindatapartners.com/guides/engineered-product-manufacturer-data) explains what AI developers ask for and who signs. To see what yours could be worth, [describe them in six questions](https://origindatapartners.com/check-fit?sector=manufacturing); no files or system access needed.


## Questions and answers

### What is a non-conformance report?

A non-conformance report (NCR) is the record of a product, part, material or service that does not meet its requirement. It states the requirement, what was found, how many items are affected, where they are held, the disposition decision and who approved it, and links to any corrective action.

### Who should raise a non-conformance report in a manufacturing company?

Anyone who finds the problem: a receiving inspector, an operator, a final inspector or a customer service team logging a return. Quality usually owns the NCR after that and runs the disposition. The person who finds it should not be the only person who decides what happens to it.

### What is the difference between an NCR and a CAPA?

An NCR deals with the affected parts: contain them and decide what to do with them. A CAPA (corrective and preventive action) deals with the cause, so the problem does not happen again. One CAPA can cover several NCRs. Link them by ID in both records.

### What dispositions are allowed for nonconforming material?

Usually five: use as is, rework, repair, scrap and return to supplier. Rework restores the part to the drawing; repair and use as is accept a part that still differs, so they normally need design authority and, where the contract says so, customer approval. FAA production approval holders must limit disposition to authorized individuals.

### How long should a manufacturer keep non-conformance reports?

At least as long as the strictest rule or contract that applies. FAA production approval holders must keep quality records at least 5 years, and at least 10 years for critical components. Many manufacturers keep quality records for the life of the product plus several years.

### What is a material review board (MRB) in quality management?

A material review board is the group authorized to decide what happens to nonconforming material, usually quality and engineering, sometimes with the customer. It handles the decisions that change what the customer receives, such as use as is and repair.

### Can a manufacturer share its NCR records outside the company?

Sometimes. Check customer contracts and drawings first, because many NCRs describe customer-owned designs. Remove personal names and customer identifiers, and screen out export-controlled technical data. Share a summary or a de-identified sample before any full set.

### How do you close a non-conformance report?

Close an NCR when the disposition has been carried out and checked: parts reworked and re-inspected, scrapped and made unusable, or returned with the supplier's acknowledgement. Record who closed it and when, and either the corrective action number or the reason none was needed.

### Is there an NCR template in Word or a printable NCR form?

The template on this page is a CSV that opens in Excel or Google Sheets. The same twelve fields work as a one-page printable NCR form or a Word table: keep the field names and order the same so the records can be counted later.

### What does NC mean in quality management?

NC is short for nonconformity or non-conformance: a product, process or record that does not meet a stated requirement. The non-conformance report (NCR) is the document that records one and tracks it to a decision.

### How do you work out what a single non-conformance cost?

Add up the failure costs recorded against that NCR. Before delivery that means scrap, rework and failure analysis; after delivery it adds repairs, warranty replacements, complaint handling and returns. Keep the quantity, disposition and hours on the NCR itself so the total can be rebuilt later.

## Sources

- [eCFR: 14 CFR 21.137, quality system (production approval holders)](https://www.ecfr.gov/current/title-14/chapter-I/subchapter-C/part-21/subpart-G/section-21.137)
- [eCFR: 48 CFR 46.101 (FAR), quality assurance definitions](https://www.ecfr.gov/current/title-48/chapter-1/subchapter-E/part-46/subpart-46.1/section-46.101)
- [eCFR: 48 CFR 46.407 (FAR), nonconforming supplies or services](https://www.ecfr.gov/current/title-48/chapter-1/subchapter-E/part-46/subpart-46.4/section-46.407)
- [eCFR: 21 CFR 820.10, requirements for a quality management system (FDA QMSR)](https://www.ecfr.gov/current/title-21/chapter-I/subchapter-H/part-820/subpart-A/section-820.10)
- [ASQ: Cost of Quality (COQ)](https://asq.org/quality-resources/cost-of-quality)

## Related reading

- [8D Report: Example, Template and 8D Problem Solving](https://origindatapartners.com/guides/8d-report-example)
- [Engineering Change Order (ECO): Template and Process](https://origindatapartners.com/guides/engineering-change-order-template)
- [License Manufacturing Quality Records to AI Companies](https://origindatapartners.com/guides/license-manufacturing-quality-records-ai)
- [Licensing CAD files and engineering data to AI companies](https://origindatapartners.com/guides/license-cad-engineering-data-ai)
- [How to de-identify company data before licensing it](https://origindatapartners.com/guides/de-identify-company-data-before-licensing)
- [/glossary/non-conformance-report](https://origindatapartners.com/glossary/non-conformance-report)