Quality Clause 265 - Rev_0000

Nonconforming Material Control and Disposition

Requirements

Seller shall maintain a system that clearly identifies, documents, controls, and segregates nonconforming material. The seller shall provide evidence of continuous improvement through objective reporting. Shipment of goods containing nonconformities is not allowed until all disposition actions mentioned below have been resolved or approved.

Seller shall take prompt and effective action to correct and prevent recurrence of all nonconformities, inclusive of those that occur at Seller’s subcontractors. 

Seller is authorized to make the following dispositions:

• Rework/Rebuild to product requirements
• Scrap
• Return to vendor

Seller is not authorized to make the following dispositions without Reliable Robotics written approval:

• Use As Is (UAI)
• Rogue Units

Requests for UAI: If the Seller determines the need to depart from requirements for a specified number of units or period of time in advance of a nonconforming condition, the Seller shall request approval in writing, from the Reliable Robotics Subcontract Manager/Buyer, for a Variance, Deviation, Production Repair, or Ship-at-Risk action.

Disposition methods are defined as:

• Scrap: The disposition action for nonconforming articles that are deemed not usable or beyond economical repair (BER) and subsequently condemned for use on any prior, current, or future FAA-PMA articles. Scrapped articles are typically classified as:

  • Beyond Economical Repair (BER): A classification of scrap an article costs 75% or above the market value or procurement cost of the item.

  • Beyond Physical Repair (BPR): A classification of scrap where the article cannot be returned to service due to excessive damage or component obsolescence regardless of cost. This classification includes:

    • Articles whose misuse in aviation pose an insignificant safety risk;
    • Articles that were used in low-risk, safety aviation applications have future use in non-aviation applications; or
    • Articles that were used in safety-critical aviation applications and may have future use in non-aviation applications. 

  • Low Value Scrap: A classification of scrap where nonconforming articles are valued at less than $100.00 and subsequent processing would except the value of a new replacement.

  • Rogue Unit: A classification of scrap where articles consisting of either end assemblies (component) or individual sub-assemblies that repeatedly cycle through the repair shop with no permanent fix.  Specifically, units that are removed four (4) times in one (1) year for failures shall be defined as “Rogue Unit” units.

• Use-As-Is (UAI): The disposition action for the nonconforming article or upper-level assemblies that authorizes minor errors or deviations to the plan, not to be corrected and usable for its intended purpose in the existing condition. This disposition requires a deviation or waiver to proceed in the manufacturing or supply chain process. The Deviations and waivers are temporary departures from design requirements and do not constitute a permanent change to the original design package. If the change is intended to be permanent, an ECO shall be submitted to correct the drawing, specification, or configuration documentation.

  • Deviation: A planned variance from the engineering drawing, specification, or configuration documentation that requires specific written authorization granted prior to the manufacture of an item for a specific number of units or a specified period of time.
  • Waiver: An unplanned variance from the design package or configuration documentation requiring written authorization to accept an item which, during manufacture, or after having been submitted for inspection or acceptance (including test), is found to depart from specified requirements, but nevertheless is considered suitable for use “as is” or after repair by an approved method. If the change is intended to be permanent, an ECO shall be submitted to correct the drawing, specification, or configuration documentation.
  • No-Fault Found (NFF): The disposition action for articles or upper-level assemblies that are removed from service following a complaint of perceived fault. The article or upper-level assemblies is then checked, but no anomaly is detected. Alternative descriptors include cannot duplicate (CND), fault not found (FNF), no trouble found (NTF), no defect found (NDF), hidden failures, or false failures.

Escape: When nonconforming conditions are determined to include articles or parts already delivered to Reliable Robotics, the Seller shall notify Reliable Robotics Responsible Engineer or Purchasing agent immediately.

Seller shall submit all requests or notifications in Seller’s format and shall include with each submission at a minimum:

• Applicable Purchase Order information; 
• Description of the nonconformance including is and should be conditions;
• Quantities and locations of impacted hardware;
• Rationale for acceptance and proposed disposition, as applicable;
• Containment actions taken or planned; and 
• Corrective actions taken or planned. 

Seller shall, on request, include forms designated by Buyer, provide statements of corrective action on nonconformities or failures of Seller's goods or services. Corrective action statements, at Buyer's option, may require approval signature by Buyer and Buyer quality representatives. All rejected articles resubmitted by Seller to Buyer shall bear adequate identification, including reference to Buyer's rejection document. 

When a nonconforming item is reworked or repaired, it shall be subject to re-verification/reinspection by Seller to demonstrate conformance to the requirements and to ensure no other nonconformity was incurred during the rework or repair process.

Items not suitable for use (i.e. Scrap) shall be conspicuously and permanently marked (e.g. painted red and identified with an alternate part number, etc.) to prevent any unintended use or co-mingling with conforming parts. 

Seller’s nonconforming material reports shall be maintained by Seller and made available for review by Buyer and Buyer’s Buyers.

QC265 - Nonconforming Material Control and Disposition

Effective: 12/1/2020

Reliable Robotics Corporation