How does the log estimate the cost of a nonconformance?

Scrap cost (quantity times unit cost, only when the disposition is Scrap) plus the rework or repair cost you enter, plus a handling cost per NCR from Setup, minus any amount recovered from a supplier. Twelve scrapped brackets at 64.00 each with an 85.00 handling cost come to 853.00. Parts returned to a supplier are not counted as scrap. It is an estimate for ranking and trends, not an accounting figure.

What is the clearance ratio?

NCRs closed divided by NCRs raised over the same dates. Below 100 percent the open backlog is growing; above 100 percent you are working it down. Closing 230 NCRs while 250 were raised gives 92.0 percent, 3.0 points below a 95 percent target, the same answer as the Nonconformance Clearance Ratio calculator.

What is the difference between source and origin?

Source is where the nonconformance was found: receiving, in-process or final inspection, a customer return or an audit. Origin is where it was made: one of your work centres or a supplier. A coating defect found at receiving inspection has source Receiving inspection and origin your plating supplier. Separating the two shows both how good your inspection is at catching problems and who causes them.

Which dispositions does the log use?

Use as is, Rework, Repair, Scrap and Return to supplier, the usual material review board decisions. They are fixed words because the cost formula reads them. Under AS9100 or a customer's requirements, use as is and repair of a major nonconformance may need customer approval; record that approval in your MRB record.

When is an NCR overdue?

When it is still open and older than the closure window on Setup at the status date. With a 30-day window and a status date of 30 June, an open NCR raised on 18 May is overdue. NCRs within the due-soon warning days of their window show Due soon, so you can chase them before they go late.

Can I link NCRs to corrective actions?

Yes. Mark CAPA needed Yes and type the CAPA or 8D number when one is raised; the Check column flags an NCR closed with CAPA needed but no CAPA number. Track the corrective action itself in the CAPA and 8D Tracker template.

Quality Systems and Compliance

Nonconformance (NCR) Log Excel Template

Log every nonconformance with its disposition and cost, and see what it costs, which work centre or supplier it comes from, and whether NCRs are closed as fast as they are raised.

Overview

This NCR log is a working Excel register for quality engineers, inspectors and shop owners who need one place to record nonconforming product, decide what to do with it and see what it is costing. It ships with six months of example NCRs for a fictional machine shop making aerospace brackets and fittings, so the dashboard is populated the moment you open it; replace the example rows with your own and everything recalculates.

Each row records where the nonconformance was found (the source) and where it was made (the origin: one of your work centres or suppliers), the defect type, the quantity and the disposition: use as is, rework, repair, scrap or return to supplier. The workbook estimates the cost of each NCR as scrapped parts at their unit cost, plus the rework or repair cost you enter, plus your own handling cost per NCR, minus any amount recovered from a supplier. It tracks each NCR against your closure window at a status date you type, and compares NCRs closed with NCRs raised over the same dates; that clearance ratio is the same definition the Nonconformance Clearance Ratio calculator on this site uses.

In practice, log NCRs as they are raised, add the disposition after the MRB meets, and close them when the paperwork is done. Read the cost Pareto to see which defect type to attack first and the monthly chart to see whether the open backlog is growing. In the example data, dimensional nonconformances from one machining centre drive most of the cost over the summer, and the clearance ratio of 84 percent shows NCRs being raised faster than they are closed.

What this template includes

NCR Log table: NCR number, date, source, part, lot or job, origin (work centre or supplier), defect type, description, quantity, unit cost, disposition, rework or repair cost, amount recovered, CAPA link and closed date
Per-row scrap cost and estimated cost of the nonconformance (scrap + rework or repair + your handling cost per NCR - amount recovered), days open and a status word (Overdue, Due soon, In progress, Complete) against a typed status date
Check column that names problems in words: duplicate NCR number, origin not on the list, closed before raised, closed without a disposition, recovered above cost, closed without a CAPA number
Dashboard with source, origin and date filters and KPI tiles: NCRs raised, cost of nonconformance in your currency, clearance ratio against your target, overdue and open NCRs, parts nonconforming, average days to close and the biggest cost driver
Charts of cost by defect type (Pareto) and NCRs raised, closed and open by month, plus cost by origin
Summary tables by origin, by disposition and by month
Method sheet with every formula, and a Verify sheet that re-checks the formulas against an independent reference (Self-check: PASS)

Suggested use case

Use it as the nonconformance register for a machine shop or plant, to prepare a material review board meeting, a monthly quality report or a supplier review, and to pick which defect type to attack first.

How to use it

On Setup, type your company, currency, status date, closure window, handling cost per NCR and clearance target, then replace the example sources, origins and defect types.
On NCR Log, add one row per NCR with its number, date, source, part, lot, origin, defect type, description and quantity.
When the disposition is decided, enter it with the unit cost of the part, any rework or repair cost and any amount recovered from a supplier.
Type the closed date when the NCR is closed, and fix anything the Check column flags.
Before a review, update the status date on Setup, open the Dashboard and filter by source, origin or dates.

Frequently Asked Questions

How does the log estimate the cost of a nonconformance?: Scrap cost (quantity times unit cost, only when the disposition is Scrap) plus the rework or repair cost you enter, plus a handling cost per NCR from Setup, minus any amount recovered from a supplier. Twelve scrapped brackets at 64.00 each with an 85.00 handling cost come to 853.00. Parts returned to a supplier are not counted as scrap. It is an estimate for ranking and trends, not an accounting figure.
What is the clearance ratio?: NCRs closed divided by NCRs raised over the same dates. Below 100 percent the open backlog is growing; above 100 percent you are working it down. Closing 230 NCRs while 250 were raised gives 92.0 percent, 3.0 points below a 95 percent target, the same answer as the Nonconformance Clearance Ratio calculator.
What is the difference between source and origin?: Source is where the nonconformance was found: receiving, in-process or final inspection, a customer return or an audit. Origin is where it was made: one of your work centres or a supplier. A coating defect found at receiving inspection has source Receiving inspection and origin your plating supplier. Separating the two shows both how good your inspection is at catching problems and who causes them.
Which dispositions does the log use?: Use as is, Rework, Repair, Scrap and Return to supplier, the usual material review board decisions. They are fixed words because the cost formula reads them. Under AS9100 or a customer's requirements, use as is and repair of a major nonconformance may need customer approval; record that approval in your MRB record.
When is an NCR overdue?: When it is still open and older than the closure window on Setup at the status date. With a 30-day window and a status date of 30 June, an open NCR raised on 18 May is overdue. NCRs within the due-soon warning days of their window show Due soon, so you can chase them before they go late.
Can I link NCRs to corrective actions?: Yes. Mark CAPA needed Yes and type the CAPA or 8D number when one is raised; the Check column flags an NCR closed with CAPA needed but no CAPA number. Track the corrective action itself in the CAPA and 8D Tracker template.