Non-Conformance Rate (NCR) Calculator
Calculation Results
How to Calculate Non-Conformance Rate
The Non-Conformance Rate (NCR) is a critical Key Performance Indicator (KPI) used in quality management, manufacturing, and supply chain logistics. It measures the proportion of a product batch or service instances that fail to meet pre-defined quality standards or specifications.
Monitoring your NCR allows you to identify process inefficiencies, reduce waste, and minimize the Cost of Poor Quality (COPQ). A high non-conformance rate typically indicates issues with raw materials, machine calibration, or operator training.
Non-Conformance Rate Formula
The calculation for non-conformance is straightforward. It compares the number of defective units found against the total number of units inspected.
Where:
- Total Defective Units: The count of items that have critical, major, or minor defects (depending on your acceptance criteria).
- Total Units Inspected: The total sample size or production batch size checked.
Calculation Example
Imagine a factory produces 12,500 plastic widgets in a single shift. During quality control inspection, the QA team discovers that 275 widgets are warped or cracked.
To calculate the rate:
- Divide the defects by the total: 275 / 12,500 = 0.022
- Multiply by 100 to get the percentage: 0.022 × 100 = 2.2%
This means the Non-Conformance Rate is 2.2%, and the Conformance Rate (First Pass Yield) is 97.8%.
Why is NCR Important?
- ISO 9001 Compliance: Tracking non-conforming outputs is a mandatory requirement for maintaining ISO certification.
- Cost Reduction: Every non-conforming unit represents wasted material, labor, and energy.
- Vendor Assessment: NCR is often used to grade suppliers. If a supplier consistently delivers a high rate of non-conforming parts, they may be replaced.
Interpreting the Results
While "zero defects" is the ultimate goal, acceptable NCR thresholds vary by industry. In Six Sigma methodologies, the goal is often 3.4 defects per million opportunities (DPMO). In general manufacturing, a rate below 1% is often considered excellent, while anything above 2-3% may trigger a Corrective and Preventive Action (CAPA) investigation.