Nonconforming Products and Materials (NCM) & Processes (ADR)

Transcription

1 Nonconforming Products and Materials (NCM) & Processes (ADR) I. What are nonconforming products, materials, or processes? II. What are NCMs, ADRs, and OS&Ds? A. What do NCMs, ADRs, and OS&Ds look like? III. Why are NCMs, ADRs, and OS&Ds issued? IV. What are the different types of nonconformance paperwork, and what are my responsibilities for each type? V. What is a Corrective Action/Preventive Action ()? VI. What do I have to do if a is requested? A. Required Information on Form VII. What happens if I do not complete these forms on time? VIII. How does a NCM affect my Right First Time (RFT) Score? I. What are nonconforming products, materials, or processes? A nonconforming product or material is any purchased product or raw material received by Amway that does not conform to the specifications or agreed upon standards. For all nonconforming products or materials, a Non Conformance Material (NCM) report will be issued to the Supplier and an investigation is initiated. For all supplier caused non- conformances, a Corrective Action/Preventive Action () will be requested. A nonconforming process refers to shipping, packaging, identification, or paperwork errors leading to a delay in product or material receipt. Such nonconforming processes lead to the issuance of an Arrival Defect Report (ADR) or an Over, Short, and Damaged Report (OS&D). For all supplier caused ADR errors, a Corrective Action/Preventive Action () will be requested. II. What are NCMs, ADRs, and OS&Ds? A NCM (Non-Conforming Material) report is generated when components, raw materials or products do not conform to established specifications or standards. This tool is used to notify internal and external parties of the issue. NCMs may be written for non-conformances found during incoming inspection, production, or in market. An ADR (Arrival Defect Report) report is generated when shipping, packaging, identification, or paperwork errors lead to a delay in product or material receipt. This tool is used to notify internal and external parties of the issue. An OS&D (Over, Short and Damaged) report is issued to document miscounts and shipment damages on incoming shipments of products and materials. This tool is used to notify internal and external parties of the issue. Page 1 of 11

2 A. What do NCMs, ADRs, and OS&Ds look like? Refer to the examples below as guides to reading NCMs, ADRs, and OS&Ds. All areas in red should be closely reviewed. Non Conformance Material (NCM) # XXXXX Edit Preliminary Disposition Enter Final Disposition Reassign Disposition Route to Affiliate Form Name Non Conformance Material (NCM) Form Revision 0 Entered By Jane Doe Initiating Department QA - Incoming Physical Date Initiated 8/8/2012 Non Conformance Type Item Number (BPN/SKU) (All CAPS, No - or spaces) Description of Material Brand/Customer Nonconformance Details Incoming Stock Status Rejected PCA1217E Branch Plant CAN SAT VOLUMISING MOUSSE Purchase and Work Order Information Purchase or Work Order# Order Type (OP, OU, MQ, WO, IC) PO Line No. 1 PO Receipt Line No. 1 Non Conformance Details continued... Primary AMC Z5UB Primary Lot# NOTE: Please be sure you have entered All the AMC's including the Primary AMC once you have Submitted the NCM in the AMC table below! Work Center # Total Quantity Received: Unit of Measure Nonconformance Details: Failure Mode Level Total Rejected Quantity each ACCEPTABLE MAJOR DEFECT LIMIT EXCEEDED. 80 SAMPLES WERE INSPECTED ALLOWING FOR 2 MAJOR DEFECTS. 5 CANS WERE FOUND WITH FADED/ MISSING PRINT ON THE BACK AND 1 CAN WAS FOUND WITH WRITING ON THE BOTTOM FOR A TOTAL OF 6 MAJOR DEFECTS. SEE ATTACHED PICTURES. Link To: Failure Mode & Assignable Cause Taxonomy Product Appearance Failure Mode Level 2 Artwork, Decoration, Label Failure Mode Level 3 Illegible OP Contact Information Buyer Department Procurement Buyer John Smith Planner Department Ada Planning Planner Bob Jones Number Page 2 of 11

3 Contact Information Grand Lake LLC 789 Lake Dr. Grand Rapids MI Corrective Actions Link to: Create a Immediate Action Corrective Action Summary Disposition Return to (RTV) Disposition Due Date (Default is 5 business days) 8/15/2012 Reason Comments Enter Preliminary Disposition Reason for Edit Assign to Jenny Smith Status Initiated, Awaiting Disposition Creation User JDoe Creation Date 8/8/2012 3:25:36 PM Last Edit User JSmith Last Edit Date 4/1/ :21:44 AM Dept to Disposition Emp to Disposition Void Assignee QA - Supplier Quality Dev Jenny Smith No Arrival Defect Report GB # XXXXX Assign to Action Create New Action Reassign Action Request Form Name Arrival Defect Report GB Form revision 18 ADR Date 4/5/2013 Entered By Jane Doe ABG SKU (All capitals, no hyphens or spaces) DNP039 Date Received 4/4/2013 PO Number PO Order Type OP Purchase Order Line No Receipt Line No. Bill of Lading No. Branch Plant Purchased Unit of Measure Description of material PO Freight Terms Other Carrier Name (if applicable) PRO Number Pickup Address (VPU) KG RESPONSIBILITY (You must select one) Material Description and Shipment Information OXYBENZONE Collect Carrier, if unknown type in below PRO Date Receiving / Warehouse Issues (Route to Procurement) Supplier Responsibility Other (Type in the carrier below) Page 3 of 11

4 Warehouse Reason Codes Assign to Action or Create a New Action by Due Date Quality Assurance Reason Codes Transportation Reason Codes Variance - PPD Shipped as Collect 0 5/17/2013 QA Laboratory Requirement Issues Q2 - C of A information missing (sku's, specs, tradenames, etc.) Transportation Issues Variance - Used Non- Core Carrier Miscellaneous Reason / Comments Missing information from COA 0 Misc Reason / Comments The spec. states SOME CO. as the manufacturer. The COA does not give a manufacturer only the supplier of Rice. The spec. states China as the manufacturer location. The COA does not give a manufacturer location. AMC: FX9B LOT: ABG and Contact Information Buyer Department Procurement Buyer SMITH, JOHN Planner Department Ada Planning Planner JONES, BOB Number Name / Address Dept Emp Assignment MCN Inc 890 Road Grandville, MI Assignee QA - Supplier Quality Dev Jenny Smith Reason for Edit New record Creation Date 4/5/2013 9:52:02 PM Creation User JDoe Last Edit Date 4/5/2013 9:52:02 PM Last Edit User Status JDoe Awaiting Action Void Over Short and Damaged # XXXXX No Edit Preliminary Disposition Form Name Over Short and Damaged Form revision 6 Date DMDO Initiated DMDO Type Department ABG SKU (All capitals, no hyphens or spaces) 5/12/2011 Entered By Damaged MFG - Plastics PCI1323A PO Number (as noted on the receiving tally) Date Received 5/12/2011 PO Order Type OP Jane Doe Page 4 of 11

5 Purchase Order Line No 1 Receipt Line No. 1 Bill of Lading No. T Branch Plant Purchase currency type Purchased Unit of Measure Description of material USD each Cost per Unit of Measure CLOSURE-QUIX Material Description and Received Quantity ABG Lot Number (a) M7B Quantity (a) 1000 ABG Lot Number (b) Quantity (b) 0 ABG Lot Number (c) Quantity (c) 0 ABG Lot Number (d) Quantity (d) 0 ABG Lot Number (e) Quantity (e) 0 ABG Lot Number (f) Quantity (f) 0 Receiving Unit If palletized, enter number of units per skid Skid Quantity of Received Units Quantity per Unit 2000 Total Received Units of Measure Cases Carrier Towne Air Freight Freight Terms Prepaid PRO Number Trailer Number PNPP 001 Damaged Goods Qty (in purchased units) Damaged Goods - Receiving Comments Short Receipt Qty (in purchased units) Short Receipt - Receiving Comments Over Receipt Qty (in purchased units) Over Receipt - Receiving Comments 1000 Damaged Goods Information 2 Boxes damage when put on trailer, when taken off 1 box caught on side of trailer and ripped. 1/2 box fell on floor. 0 0 Short - Receipt Information Over - Receipt Information ABG and Contact Information PRO Date Buyer Department Procurement Buyer Value of Damaged Goods Who appears responsible for the Damage? Value of Material Shortage Value of Material Overage 45 Carrier Planner Department Ada Planning Planner BJones Number Contact Information LJT INC 456 Lakeview Grand Rapids MI Page 5 of 11

6 III. Why are NCMs, ADRs, and OS&Ds issued? Why is a NCM issued? A NCM is issued to communicate a nonconformance internally (Amway) and externally (Suppliers) NCMs allow the company to control and/or quarantine all non-conforming items NCMs help ensure that the final agreed upon disposition is implemented NCMS are used to measure and track conformance and quality history, so QA personnel can identify trends and areas for improvement Why is an ADR issued? An ADR is issued to communicate failure to meet a shipping, transportation, or quality assurance documentation requirement, both internally (Amway) and externally (Supplier) ADRs are used to measure and track compliance history, so QA personnel can identify performance trends and areas for supplier improvement Why is an OS&D issued? An OS&D is issued to communicate shipping discrepancies (overages or shortages) and damages, both internally (Amway) and externally (Supplier) IV. What are the different types of nonconformance paperwork, and what are my responsibilities for each type? There are three different types of nonconformance paperwork: NCM (external incoming and external in-process), ADR, and OS&D. Please refer to the guide below for an explanation of why NCMs and ADRs are issued and the supplier s responsibilities in each scenario. (See Chart 4.1) Suppliers will be contacted regarding external incoming and external in-process NCMs from their Supplier Quality Development (SQD) Representative or Supply Chain QA. Suppliers will be contacted about ADRs by Quality Assurance, Transportation, or Procurement depending on the issue. Please note: OS&Ds are handled with suppliers via Amway s Warehousing and Global Procurement departments. Suppliers will be contacted regarding OS&D s via Amway s Global Procurement department and/or transportation. *There are six types of dispositions related to NCMs, ADRs, and OSDs. (See Chart 4.2) Page 6 of 11

7 In-Process NCM Incoming NCM Arrival Defect Report (ADR) Chart 4.1 NCM/ADR Process Shipment not in compliance with ABG Supplier Shipping Requirements Arrival Defect Report (ADR) Received via When applicable Provide Missing/ Correct Document within 24 hours Root Cause identification and Corrective Action plan due in 7 days; Preventive Action and verification of due in 30 days. Caution Shipment received does not meet specifications* Incoming NCM Received via Initiate containment due in 48 hours Disposition Request Form Release Under Deviation (RUD) Return to (RTV) Rework Expense (RVE) Root Cause identification and Corrective Action plan due in 7 days; Preventive Action and verification of due in 30 days. Supplier needs to complete form within 3 business days of receipt of NCM, unless otherwise instructed Scrap Expense (SVE) Root Cause identification and Corrective Action plan due in 7 days; Preventive Action and verification of due in 30 days. Product is found to be out of specification during production or in the field postproduction* In Process NCM Received via Initiate containment due in 48 hours Supplier needs to complete form within 3 business days of receipt of NCM, unless otherwise instructed Disposition Request Form Release Under Deviation (RUD) Return to (RTV) Rework Expense (RVE) Scrap Expense (SVE) Root Cause Identification and Corrective Action plan due in 7 days; Preventive Action and verification of due in 30 days. Root Cause identification and Corrective Action plan due in 7 days; Preventive Action and verification of due in 30 days. *ABG did not adversely affect usability of product before or after receipt. Page 7 of 11

8 Chart 4.2 There are six types of dispositions that require vendor action: Type Disposition Description Supplier Action Incoming or In- Process Release Under Deviation (RUD) Disposition notice issued for products, raw materials, or components that do not meet specifications but are accepted by Amway "asis" because they have minimum impact. Incoming or In- Process Return to (RTV) Disposition notice issued for rejected products, raw materials, or components that will be returned to the supplier. Disposition Request Form; Incoming or In- Process Scrap Expense (SVE) Disposition notice issued for rejected products, raw materials, or components that will be scrapped at Amway and charged back to the supplier for payment. Disposition Request Form; Incoming or In- Process Rework Expense (RVE) Disposition notice issued for rejected products, raw materials, or components that will be reworked at Amway, but the charges will be forwarded to the supplier for payment. Disposition Request Form; ADR N/A - No Financial Impact Ex. Transportation: Supplier called our core carrier directly. Ex. Receiving Warehouse: Wrong info. on packing slip Ex. QA: Missing C of A OS&D Freight or Supplier Claim Ex. Stock damaged during transit. Ex: PO Quantity does not match the sum of the case label quantities. Ex. PO quantity and case label quantities do not match actual count of product within case. Damage--Freight Claim Authorization Quantity-- V. What is a Corrective Action/Preventative Action ()? A is a supplier created action plan focused on preventing a non-conformance from recurring. The is created in response to a NCM issued to communicate non-conforming material (or ADRs for non-conforming paperwork). s are required for all NCMs and ADRs. Page 8 of 11

9 VI. What do I have to do if a is requested? If requested to provide a, suppliers will receive a form. The form will indicate what information is needed, and will include due dates for each step of your investigation. A final response, including a preventive action plan and verification of both corrective and preventive action effectiveness, is due within 30 days of initial request. A. Required Information on Form (See Chart 6.1) There are 6 steps involved in filling out the form: 1. Acknowledge Receipt and Define Issue The supplier is expected to acknowledge receipt of NCM/ADR communication and request within 48 hours. 2. Containment Describe the containment actions taken. Containment is required prior to any subsequent shipments and must occur within 48 hours. Has SUPPLIER segregated any remaining non-conforming material from their conforming lots? Has SUPPLIER segregated any remaining non-conforming material from their conforming lots? Can SUPPLIER confirm there is no more non-conforming material? *Do not complete step 2 for ADRs 3. Determine Root Cause Designate what type of fundamental deficiency occurred (manpower, materials, methods, machine, environment) to cause the material/component defect. Identify the Quality System Escape Point(s) and determine root cause of the Quality System failure. Root Cause determination is due within 7 days. What created the issue? What controls are in place to catch these issues? What controls failed? 4. Corrective Action Describe the action(s) taken to correct the defective material and reduce both the rate of failure and the rate of escape. The supplier is expected to provide verification that corrective actions performed are effective in eliminating the nonconformity. The Corrective Action Plan is due within 7 days. How is SUPPLIER reducing the probability of a repeat issue? What controls are being re-enforced? What controls are changing to reduce the probability of a repeat issue? How effective are the methods of reduction? 5. Preventive Action Describe the action(s) taken to eliminate the cause(s) of failure and/or escape. The supplier is expected to provide verification that preventive actions performed are effective in preventing reoccurrence. The Preventive Action Plan is due within 30 days. How is SUPPLIER preventing supplying material with this issue going forward? How effective are the methods of prevention? 6. Recognize Team Both the supplier and Amway will provide names and titles of the individuals involved in correcting and preventing NCM/ADR issue(s). Page 9 of 11

10 Chart 6.1 SUPPLIER FORM (Corrective & Preventive Action Plan) STEP #1: Acknowledge Receipt, Define Issue SQD Assignee: Tanya Hecksel STEP #2: Containment Not applicable for ADRs STEP #3: Determine Root Cause NCM #(s): ADR #(s): Supplier: ABG sku(s): Lot #(s): Trade name: ABG PO(s): Supplier Recipient's Acknowledgement of NCM/ADR & Request Due by: 1/2/00 Date of ABG Issuance: Date of Supplier Response: Full Description of Issue: For Internal Use Only Lab OOS #: Adverse Event #: Field Complaint #: CatsWeb #: Containment Response Due by: 1/2/00 Describe Containment Actions Taken: Date Root Cause (R/C) Determination Due by: 1/7/00 R/C of Material/Component Defect (include date) R/C of Quality System Escape Point(s) (include date) Which R/C Method(s) were used? 5 Why Ishikawa Kepner-Tregoe DOE Other (list) Corrective Action PLAN Due by: 1/7/00 Describe Action(s) Taken Date Verification of Effectiveness of Action(s) Date STEP #4: Corrective Action(s) Action(s) taken to correct defective material; reduce the rate of failure; reduce the rate of escape STEP #5: Preventive Action(s) Action(s) taken to eliminate the cause(s) of failure and/or escape Describe Action(s) Taken Preventive Action PLAN Due by: 1/30/00 Date Verification of Effectiveness of Action(s) Date STEP #6: Recognize Team SUPPLIER TEAM (names, titles): AMWAY TEAM (names, titles): For Steps #1 and #2 - Send Reponses To: Nutrilite Division (excluding Amw ay NA Buyouts) michael.alvarado@amway.com Durables, Beauty, Home/Personal Care, ANA Buyouts Amway.SQD.Ada@amway.com EPC (Enterprise Processing Center) Procurement.us@amway.com For Steps #3 - #6, all future contact is dependent on issue type/origin: Product Quality NCM's SQD Scientist Arrival Defect Reports (ADR's) - QA Lab SQD Scientist For NCM's & QA Lab ADR's, the Name & Address of your assigned SQD Scientist can be found in the Message that this FORM was attached to. Arrival Defect Reports (ADR's) - Warehouse Arrival Defect Reports (ADR's) - Transportation EPC/Costa Rica Transportation Specialist Page 10 of 11

11 VII. What happens if I do not complete these forms on time? The timeliness of your response to NCMs/ADRs affects your Supplier Segmentation standing with Amway, and could affect your Right First Time (RFT) score. While returning these forms on time and fully filled out will help, it would benefit your score more if neither NCMs nor ADRs were issued. Completing corrective/preventive action investigations promptly helps to ensure future shipments will not be rejected for the same issue. If you have additional questions, please contact your Supplier Quality Development (SQD) Representative. VIII. How do NCMs/ADRs affect my Right First Time (RFT) Score? Each incoming Purchase Order Line is assigned a score of 100% or 0%. Any Purchase Order Line assigned a Supplier-related NCM or ADR will be assigned a score of 0%. Suppliers are expected to maintain or exceed an overall RFT score of 99%. SQD Representatives will discuss a quality improvement plan with you if your RFT score falls below 99%. Page 11 of 11