IATF 8.7.1.7 Nonconforming product disposition

It may be a concern for Tier-2, Tier-3 suppliers, but it does not mean that this requirement is not applicable.
IATF does not know what is a structure of product we supply.
In most cases full risk will be in Tier-1, but sometimes Tier-2 product itself can be used, so both organization has to consider how it should be managed.
If external company is picking our "unrendered" scrap, so how do we confirm they render it.

There is a documented process required here, so even we persuade it to one auditor as "non-applicable", still we do not meet requirement in other one opinion. It is worth to think about it seriously.

 

It's actually a perfect area to do a thought out risk analysis. For some throwing the sub-components in a scrap bin is low risk. For others, a defective assembly might need further destruction. Unfortunately, they left very little room on this one. It will be a nightmare for many of us.

 

If taking this approach we were told that we would need it documented that the supplier will be rendering it unusable as soon as it returns to the scrap yard (for us scrap yard-metal stamping) and that it will not be sitting around for any amount of time.

 

That's ridiculous. The FAQs would appear to allow the normal everyday practice -- scrap bin at your facility, picked up by the scrap yard, then segregated, crushed and bundled by the yard for recycling. It looks like they want some periodic monitoring of the yard, but that is all.

Has this guy ever been to a scrap yard?

 

My initial comment here was that organization can separate nonconforming products, but then parts are collected by scrap dealers and it is their job to scrap it.
So it is clear outsourcing and example of "externally provided process/service" and whole 8.4.2 is applicable here - IS0 9001 certification and second part audits

Maybe I stop posting as it seems that IATF is following very close my ridiculous interpretation and makes them sanctioned.

 

Some cases devation Or approval required from customer

 

We have come across raw matrials that, after inspection, did not meet our spec, the materials were returned to our supplier after conducting the proper protocol for handling NC products.