7.1 -REJECTED FINISHED GOODS: ACME HELD

If a production lot is held unacceptable for shipment, the following procedure will be followed:

1. An investigation into the nature and cause of the failure will be conducted. Once a determination of the cause of the failure is made The tooling and /or production machinery will be adjusted or repaired To eliminate future occurrences.
2. All nonconforming goods will be identified and segregated. These parts will then be further inspected in order to determine whether they are to be reworked or destroyed for recycling.
3. If goods are reworked in any way, including cleaning of any form, they will be 100% QA audited. They are then either returned to inventory if deemed acceptable or destroyed for recycling.
4. If the discovery of rejectable pans will delay the delivery of finished goods, the customer will be informed of the situation and advised of a revised quantity and delivery schedule.
5. Production personnel will be trained in detail as to the nature of the cause of the defect and how the problem will be avoided in the future.

NOTE: The QA Manager will stop any production run or shipment if it is believed to be unacceptable for any reason. If this is decided by the QA Manager, the judgment can only be overturned at the customers direction.

7.2 REJECTED FINISHED GOODS: CUSTOMER HELD

If a production lot is found unacceptable for use by a customer, whether by incoming inspection or production line rejection, the following procedure will be utilized:

1. Samples of the rejected goods should be secured for verification and to help with the determination of the problem and nature of the complaint.
2. We will identify the production lot of the rejection and have any remaining inventory segregated for QA inspection. Any nonconforming goods will be reworked or destroyed for recycling. Reworked goods are then inspected and returned to stock if acceptable.
3. The customer will be advised as to the disposition of the complaint and either have the goods reworked, destroyed or replaced.
4. If there will be replacements for the rejected goods , they will be taken from remaining inventory or produced by a new run.
5. Upon receiving any returned goods , they will be segregated and 100% QA audited. A determination will be made as to whether the goods must be destroyed for recycling or can be reworked, reinspected, and returned to stock.
6. Production personnel will be trained in detail as to the nature of the cause of the defect and how the problem will be avoided in the future.