NonConformace / DMR - proper process

I had a user contact me about NonConformance question and we I pressed for more info I think they are doing the process wrong. I want to check with some other experts out there.

So currently they create a NonConformance on a part. They decide the part will go back to stock. They just back out the NonConformance; I guess delete it.

But is is my understanding that any NonConformance should be processed as a DMR and then they can Accpet to Stock if part is good.


Thanks a Million Kim

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The later (processing through DMR) is the better way, as it provides a trail that there was a question/issue with the part.

Simply deleting the NC, doe end up with the part back in stock, but you lose the history.

What do they do if it is found to require re-work, or be scrapped? I’d assume they then use DMR to resolve it. So why should “no problem found, return to stock” be any different?

You can use Inspection Processing and accept the parts back to stock without requiring a DMR. You still have the history that there was a potential issue saved in the system. I didn’t think you could delete a nonconformance once it was entered and saved, but I haven’t tested that.

Our shop follows this process:

  1. Nonconformance is entered by the shop floor or quality techs if an issue is discovered.
  2. At least once a week, reps from different departments review nonconformances and determine the best action: parts are actually ok, return the parts to stock; sort and rework; sort and scrap; or return raw materials to the vendor.
  3. Quality uses Inspection Processing to enter these dispositions (as reason codes for tracking). All but return to stock are entered as fails and go to DMR.
  4. The sorting and scrap/rework are performed and good parts are accepted to stock in DMR Processing and parts that had to be scrapped are rejected. Raw Materials stay in open DMRs until we get vendor credit and return the material.
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That Nonconformance should be found in the Inspection Processing workbench where they can Accept or Reject it at that point. If they Reject it, a DMR is created. If they Accept it, then the part would go back to stock with a DMR but the nonconformance is still recorded.

We don’t create an actual DMR unless the part is rejected by the first level of Quality and the part gets put “on hold” (our terminology for quarantine) to be inspected further. Less clutter and we can see what is in our “Hold Cage” that way.


For Nonconformances entered they should not be deleted, the inspection decision should be made in Inspection Processing.
PASS will send it back to stock and you have the opportunity to document in the comments the reasoning and back story.
FAIL will send it to DMR along with a Reason Code.
At DMR you have another opportunity to ACCEPT or REJECT.
ACCEPT can go back to Stock or supply a Job
REJECT would be for scraping or returning to vendor.
There are appropriate GL controls behind the Reason Codes and on the Part Class so move the cost to the desired GL Accounts.


We have a third party customisation AutoDMR which allows us to skip the Inspection Processing stage and go directly from Nonconformance to DMR Processing. Using this we always have the audit trail that the original issue was raised since the original nonconformance can not be deleted, and then the final decision recorded in the DMR Processing.

Hi, I am new to Epicor and had a follow up question to Kim’s general question.

The product sat for a while in Nonconformance then they finally got reworked. I processed them through DMR by job via passed to send back to stock and failed for rework. We looked back at out Material Unit Cost and every time there was a DMR which was failed for rework the cost spiked. My question is: did the spike occurred because the job was closed? or is there another answer?

Thank you,

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could you pleas egive me some more details on this AutoDMR customization? Is it a product I can buy as well or is it tailored to your needs?

Thank you,

Daniel Cardoso

AutoDMR is an Epicor Customisation that you can buy from a company called GHA Solutions. You can contact them using this link Contact us | GHA Solutions, I use a couple of their solutions and find them robust and cost effective and fit perfectly into the Epicor processes.