Company Name QUALITY MANAGEMENT SYSTEM (QMS)
Quality Management Procedure Company
Logo
Title: Procedure For Control of Customer Property
1. PURPOSE:
To provide a consistent process to identify, verify, protect, and safeguard customer property (i.e.,
products, materials, tools, gauges, jigs & fixtures, test fixtures/test machines, software, etc.)
maintained at Company.
2. SCOPE:
To establish and maintain procedure for verification, storage and maintenance of customer supplied
products for conversion, and fabrication as per requirements of customer.
3. DEFINITIONS:
Customer Property: Property owned by the customer and provided for use in meeting the
requirements of the contract. Customer property can include intellectual property, including customer
furnished data used for software, design & drawings, tools, moulds, jigs, fixtures, test fixtures/ text
machines production and/or inspection and any other customer related data.
4. RESPONSIBILITY & AUTHORITY:
Protecting of Customer Property is the Responsibility of all Employees in Company.
Sales Department is responsible for obtaining information about customer supplied products and
communicating to concerned departments like QA, Admin, Tool Management, Production and so on.
5. PROCEDURE:
.1 Involvement of customer supplied products in a contract is clearly brought out by sales in the
contract review and concerned Depts. are kept informed through the sales order.
.2 On receipt of the product, QA verifies the same in a manner identical to purchased product and
communicate acceptability.
.3 In case of discrepancy, loss or damage observed on receipt:
a) For receipt directly from customer, information is given by QA through sales.
b) For receipt directly from supplier (under advice from customer) information is given by QA
to supplier directly for corrective action keeping customer informed through sales for follow-
up and ensuring the disposal of complaint.
c) Disposal of any such non-conformity is decided as suggested by customer.
.4 Products found acceptable are stored at raw material stores. Products are stored with
identification, including customer name and issued to PROD when need arises.
.5 Any difficulty experienced or unsuitability observed during conversion/fabrication is recorded in
the raw material inspection register and communicated to the customer/ supplier through sales.
Doc No.: XXX/XX/XX | Rev No.: XX Prepared By: Mr.Name Sheet Author: Mr.Name
Rev. Date: XX.XX.XXXX Approved By: Mr.Name Page: 1 of 4
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Company Name QUALITY MANAGEMENT SYSTEM (QMS)
Quality Management Procedure Company
Logo
Title: Procedure For Control of Customer Property
.6 In case of any adverse report’s sales reports to customer for corrective action.
.7 Damaged or unsuitable products are labelled and stored separately for further disposal as per
procedure for Non-Conforming product.
.8 Reconciliation of incoming customer supplied product, dispatch of finished product and
available stock is done once a month.
.9 Customer supplied product is treated on par, with purchased product and procedures for
inspection, storage, usage and disposal of non-conforming product are identical in both cases.
.10 Customer supplied raw materials may be accepted for commercial convenience with mutual
understanding on the quality of material supplied. Value of the customer supplied product is
adjusted when calculating the price for the finished product.
6. Identify Customer Property – Identification and Traceability
The identification of customer property is a critical part of not only identifying ownership, but it is
also, a necessary step in preventing the unauthorized use or inadvertent disposal of any customer
property.
Any Customer Property as mentioned above in section 3 shall be identified with proper tagging. Such
tags must contain all relevant information about the property without fail. The information must cover
the details as prescribed by Customer and not limited to, such as Customer Name, Property Name,
Part Name, Part Number, Company Unique Identification Number, Customer Unique Identification,
Year-Month-Date of Manufacturing or Year-Month-Date of Supply or Year-Month-Date of Issue,
Color Code, Make, Model, Address of Customer and so on.
Having all above details on the Customer Property will ensure that they are easily traceable at any
given point of time.
7. Verifying Customer Property
Verification of customer property should be performed to establish the condition of customer
supplied property, including conformance to all specified requirements. These verification
checks may include quantity, physical condition, and other characteristics, as well as the
identification or measurement of chemical, physical or other properties. Typically, this
verification process would be performed upon receipt, and is usually performed in a manner
consistent with the organization’s established process for the verification of purchased product.
Records of such verification activities should be maintained in accordance with the
organization’s record control procedures, and notification made to the customer in the event that
nonconforming product is identified as per the procedure for non-conformity as followed similar to the
customer complaints handling.
The Customer Properties must be verified at-least once a year or as prescribed by the Customer for
their healthy conditions and performance. However, at Company for each of the units an exemption
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Company Name QUALITY MANAGEMENT SYSTEM (QMS)
Quality Management Procedure Company
Logo
Title: Procedure For Control of Customer Property
has been provided for the frequency of verification. The Units are allowed to have their own
customer property verification frequency in accordance with customer or which has been agreed with
customer. If not, the Units can verify the customer properties once in a year.
8. Maintaining Customer Property
In cases where maintenance may be required (e.g., equipment, tools and/or hardware, gauges, jigs,
fixtures/test fixtures, and test machines), the organization should, prior to the acceptance of
customer property, ensure that there is a clear agreement and definition of responsibility with
regarding to both on-going maintenance and repair. Specific terms and conditions should be
established between the customer and the Company to address the types (and schedule) of
maintenance required, including who will be responsible for such maintenance, as well as to
establish guidelines to address extraordinary events, such as repairs due to equipment failure.
As with maintenance and repair activities performed by Company on its own equipment,
records will be maintained in accordance with the Company’s record control procedures.
9. Reporting of Issues
Any concerns, problems or issues related to Customer Property shall be immediately communicated
to Customer with clear notification and all related details.
Any problems or issues, such as loss, damage or failure concerning customer property shall be
promptly reported back to the customer in accordance with the Company’s procedures for the control
of
nonconforming product, as modified by any specific customer instructions. As this is customer
property, subsequent processing activities shall be suspended, until disposition by the
customer has occurred.
Records of such nonconforming product shall be maintained in accordance with the Company’s
record control procedures.
Doc No.: XXX/XX/XX | Rev No.: XX Prepared By: Mr.Name Sheet Author: Mr.Name
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Company Name QUALITY MANAGEMENT SYSTEM (QMS)
Quality Management Procedure Company
Logo
Title: Procedure For Control of Customer Property
10. DOCUMENT REFERENCE
Sl.
Document Name Document Reference
No.
1 Quality Manual XXX/XX/XX
2 Customer Related Processes XXX/XX/XX
Procedure For Corrective Action Customer
3 XXX/XX/XX
Complaints
4 Procedure For Maintain Document Information XXX/XX/XX
5 Procedure For Control of Production XXX/XX/XX
6 Procedure For Inspection and Testing XXX/XX/XX
Procedure For Customer Satisfaction & Confidence
7 XXX/XX/XX
Level Monitoring
8 Procedure For Control of Non-Conformity XXX/XX/XX
REVISION HISTORY:
Rev.
Rev. Date Brief Description of Change Reason For Change
No.
XX XX.XX.XXXX ------ ----
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