Managing Non Conformance with Microsoft Dynamics 365 Supply Chain Management

“Each manufacturer is required to establish and maintain procedures to control product that does not confirm to specific requirements” (21 CFR 820.90). Nonconforming can be a Product or a Process that does not meets its specifications. A nonconforming process can lead to a nonconforming product. This blog discusses how Microsoft Dynamics 365 Supply Chain Management can help manufacturers in managing Non conformance.

Non Conformance business process

Why manage Non Conformance – In addition to the regulatory requirements there are many benefits -

1. Improved safety of manufactured products
2. Manage product recalls
3. Better process equals more effective products
4. Gain consumer confidence with product reliability

AI and data analytics can also be used on the data collected for predicting and preventing future errors. The business process in Microsoft Dynamics 365 SCM is shown above and discussed step by step here -

1. Product fails quality – This could be during the incoming product inspection or during the manufacturing production process that a product can fail quality testing. It can also be a return of a product from Customer due to product failure.

2. The QA tester will than create the Non Conformance for the Quality Order. The benefit of creating from a Quality Order is that it has all the necessary details (like Vendor, Purchase Order and Batch #). 

Create Non conformance

3. Approve and print Non Conformance Tag – The Tester can than approve and print the Tag and attach to the product. This becomes a visual indicator on the product itself. Tester will move the product/s to a caged or locked area along with other non conforming products.

Tag

1.     4. Review & identify corrections – The product engineer will review the non conformance and identify corrections. Also assign the correction to the worker. Power automate can be used to notify the worker of the task.

Corrections

The assigned worker completes the corrections. The product engineer can than write the justification for the disposition of the items (using Notes) and closes the Non conformance.

5.      Reporting and analytics – This can be used to for management review of non conformance. Some of the reports that can benefit are - 

• Vendors with recurring # of non conforming products – to improve vendor performance
• Products with highest # of non conformance – to improve process results
• Corrections most applied – to re-design the production process

I hope the above helps you to understand and manage the non conformance process using Microsoft Dynamics 365 Supply Chain Management. Let me know how you are managing your current product or process Non Conformance.

Mihir Shah

@mihircrm 

(originally published by Mihir Shah as a linked in article on 11-23-2019)

reference - 1. https://docs.microsoft.com/en-us/dynamics365/supply-chain/inventory/enable-nonconformance-management