Common use of Nonconformance Clause in Contracts

Nonconformance. The supplier must focus on preventing nonconformance, reducing variability, and building quality into Buyer products and processes through process characterization and mistake-proofing tools. When issues arise, the supplier must take corrective action measures to get processes back into control. When a nonconformity occurs, including any arising from complaints, the Supplier shall react to the nonconformity by Taking action to control and correct it Dealing with the consequences Supplier shall evaluate the need for action to eliminate the cause(s) of the nonconformity, in order that it does not recur or occur elsewhere, by: Reviewing and analyzing the nonconformity. Determining the causes of the nonconformity, including, as applicable, those related to human factors. Determining if similar nonconformities exist or could potentially occur. Supplier shall Implement any action needed Review the effectiveness of any corrective action taken Update risks and opportunities determined during planning, if necessary Make changes to the quality management system, if necessary Flow down corrective action requirements to an external provider when it is determined that the external provider is responsible for the nonconformity Take specific actions when timely and effective corrective actions are not achieved. Any nonconformance detected during incoming inspection, the Supplier shall immediately notify the ▇▇▇▇▇▇ Machine Company LLC Buyer for plan of action. The Supplier shall notify ▇▇▇▇▇▇ Machine Company LLC Buyer if there may be a nonconformance to form, fit, function, or issue with usability, or reliability problem with material that has already been delivered. Supplier shall not knowingly ship non-conforming material without written authorization from ▇▇▇▇▇▇ Machine Company LLC. All nonconformance material shall be physically segregated and identified and separated on shipping paperwork. Rework is considered the return to conformance of a nonconforming feature or item using original instructions and processes. Nonconforming items that result in rework beyond existing instructions, requires written rework instructions and those rework instructions will capture the results of the rework. Rework documentation shall be made available for ▇▇▇▇▇▇ Machine Company LLC review upon request. This requirement shall be flowed down to all sub-tier suppliers. Reworked items must be reexamined in accordance with applicable procedures and the original acceptance criteria. When nonconforming items are identified, including Limited Life items, an evaluation must be performed to determine if any other previously supplied product is affected. If yes, the supplier must promptly notify the Buyer. The Buyer will provide disposition guidance on nonconforming issues. Under no circumstance shall a repair (the use of different methods, materials, or processes to correct a nonconformance) be permitted without prior ▇▇▇▇▇▇ Machine Company LLC approval. As ▇▇▇▇▇▇ Machine Company LLC is typically a make to order entity, approval from ▇▇▇▇▇▇ Machine Company LLC’s customer is also typically required. The supplier must notify the Buyer when a nonconforming condition is identified with Buyer furnished items. The Buyer will provide direction for disposition of such items. Work must be prescribed by, and performed in accordance with, approved and controlled written instructions, procedures, drawings, specifications, other documents, or models that include or reference appropriate acceptance criteria for determining that results have been satisfactorily attained. Current instructions, procedures, drawings, specifications, other documents, and models must be available to and used by the personnel performing the work.

Nonconformance. The supplier must focus on preventing nonconformance, reducing variability, and building quality into Buyer products and processes through process characterization and mistake-proofing tools. When issues arise, the supplier must take corrective action measures to get processes back into control. When a nonconformity occurs, including any arising from complaints, the Supplier shall react to the nonconformity by • Taking action to control and correct it • Dealing with the consequences Supplier shall evaluate the need for action to eliminate the cause(s) of the nonconformity, in order that it does not recur or occur elsewhere, by: • Reviewing and analyzing the nonconformity. • Determining the causes of the nonconformity, including, as applicable, those related to human factors. • Determining if similar nonconformities exist or could potentially occur. Supplier shall • Implement any action needed • Review the effectiveness of any corrective action taken • Update risks and opportunities determined during planning, if necessary • Make changes to the quality management system, if necessary • Flow down corrective action requirements to an external provider when it is determined that the external provider is responsible for the nonconformity • Take specific actions when timely and effective corrective actions are not achieved. Any nonconformance detected during incoming inspection, the Supplier shall immediately notify the ▇▇▇▇▇▇ Machine Company LLC Buyer for plan of action. The Supplier shall notify ▇▇▇▇▇▇ Machine Company LLC Buyer if there may be a nonconformance to form, fit, function, or issue with usability, or reliability problem with material that has already been delivered. Supplier shall not knowingly ship non-conforming material without written authorization from ▇▇▇▇▇▇ Machine Company LLC. All nonconformance material shall be physically segregated and identified and separated on shipping paperwork. Rework is considered the return to conformance of a nonconforming feature or item using original instructions and processes. Nonconforming items that result in rework beyond existing instructions, requires written rework instructions and those rework instructions will capture the results of the rework. Rework documentation shall be made available for ▇▇▇▇▇▇ Machine Company LLC review upon request. This requirement shall be flowed down to all sub-tier suppliers. Reworked items must be reexamined in accordance with applicable procedures and the original acceptance criteria. When nonconforming items are identified, including Limited Life items, an evaluation must be performed to determine if any other previously supplied product is affected. If yes, the supplier must promptly notify the Buyer. The Buyer will provide disposition guidance on nonconforming issues. Under no circumstance shall a repair (the use of different methods, materials, or processes to correct a nonconformance) be permitted without prior ▇▇▇▇▇▇ Machine Company LLC approval. As ▇▇▇▇▇▇ Machine Company LLC is typically a make to order entity, approval from ▇▇▇▇▇▇ Machine Company LLC’s customer is also typically required. The supplier must notify the Buyer when a nonconforming condition is identified with Buyer furnished items. The Buyer will provide direction for disposition of such items. Work must be prescribed by, and performed in accordance with, approved and controlled written instructions, procedures, drawings, specifications, other documents, or models that include or reference appropriate acceptance criteria for determining that results have been satisfactorily attained. Current instructions, procedures, drawings, specifications, other documents, and models must be available to and used by the personnel performing the work.

Nonconformance. The supplier must focus on preventing nonconformance, reducing variability, and building quality into Buyer products and processes through process characterization and mistake-proofing tools. When issues arise, the supplier must take corrective action measures to get processes back into control. When a nonconformity occurs, including any arising from complaints, the Supplier shall react to the nonconformity by • Taking action to control and correct it • Dealing with the consequences Supplier shall evaluate the need for action to eliminate the cause(s) of the nonconformity, in order that it does not recur or occur elsewhere, by: • Reviewing and analyzing the nonconformity. ; • Determining the causes of the nonconformity, including, as applicable, those related to human factors. ; • Determining if similar nonconformities exist exist, or could potentially occur. ; Supplier shall • Implement any action needed • Review the effectiveness of any corrective action taken • Update risks and opportunities determined during planning, if necessary • Make changes to the quality management system, if necessary • Flow down corrective action requirements to an external provider when it is determined that the external provider is responsible for the nonconformity • Take specific actions when timely and effective corrective actions are not achieved. Any nonconformance detected during incoming inspection, the Supplier shall immediately notify the ▇▇▇▇▇▇ Machine Company LLC Buyer for plan of action. The Supplier shall notify ▇▇▇▇▇▇ Machine Company LLC Buyer if there may be a nonconformance to form, fit, function, or issue with usability, or reliability problem with material that has already been delivered. Supplier shall not knowingly ship non-conforming material without written authorization from ▇▇▇▇▇▇ Machine Company LLCCompany. All nonconformance material shall be physically segregated and identified and separated on shipping paperwork. Rework is considered the return to conformance of a nonconforming feature or item using original instructions and processes. Nonconforming items that result in rework beyond existing instructions, requires written rework instructions and those rework instructions will capture the results of the rework. Rework documentation shall be made available for ▇▇▇▇▇▇ Machine Company LLC review upon request. This requirement shall be flowed down to all sub-tier suppliers. Reworked items must be reexamined in accordance with applicable procedures and the original acceptance criteria. When nonconforming items are identified, including Limited Life items, an evaluation must be performed to determine if any other previously supplied product is affected. If yes, the supplier must promptly notify the Buyer. The Buyer will provide disposition guidance on nonconforming issues. Under no circumstance shall a repair (the use of different methods, materials, materials or processes to correct a nonconformance) be permitted without prior ▇▇▇▇▇▇ Machine Company LLC approval. As ▇▇▇▇▇▇ Machine Company LLC is typically a make to order entity, approval from ▇▇▇▇▇▇ Machine Company LLCCompany’s customer is also typically required. The supplier must notify the Buyer when a nonconforming condition is identified with Buyer furnished items. The Buyer will provide direction for disposition of such items. Work must be prescribed by, and performed in accordance with, approved and controlled written instructions, procedures, drawings, specifications, other documents, or models that include or reference appropriate acceptance criteria for determining that results have been satisfactorily attained. Current instructions, procedures, drawings, specifications, other documents, and models must be available to and used by the personnel performing the work.