Why does NCR matter in a custom steel fabrication shop?

In high-variation, make-to-order work, quality issues do much more than waste a bit of material. They steal capacity because rework hours push out planned work, they damage on-time delivery because late fixes turn into expedites, they reduce margin because quotes assume first-pass success and they create downstream chaos when one missed fit-up or weld issue blocks paint, shipping or install. Monitoring NCR helps you protect capacity, OTD and margin, which is exactly what EZIIL is designed to support.

How do you calculate non-conformance rate (NCR)?

There are several practical ways to calculate NCR, depending on what makes most sense for your shop. Option A, by items: NCR % = (Nonconforming items ÷ Total items inspected) × 100. Option B, by jobs: Job NCR % = (Jobs with at least one non-conformance ÷ Jobs completed) × 100. Option C, by effort: Rework hours % = (Rework hours ÷ Total labour hours) × 100. Many custom steel shops prefer job-based or hours-based NCR because counting individual units can be misleading in high-mix, low-volume work.

Which NCR metric is best for HMLV and make-to-order job shops?

In high-mix, low-volume (HMLV) and make-to-order (MTO) environments, simple item counts rarely tell the full story. A single complex frame that needs rework can consume more time than ten small brackets. That is why many fabricators choose job-based NCR (percentage of jobs with at least one non-conformance) or effort-based NCR (rework hours as a share of total labour hours). EZIIL can help by tracking planned vs actual hours per job and highlighting where extra effort was spent on rework, so you can calculate and trend an hours-based NCR.

How does NCR affect on-time delivery (OTD) and capacity?

Every non-conformance consumes time that was not in the original plan. When welding, fitting or drilling needs to be repeated, those rework hours push scheduled work out of the way. The result is missed promised dates, panicked rescheduling and urgent expedites. Over time, a high NCR means your real capacity is much lower than it looks on paper. By using EZIIL to track rework hours and see where projects overrun, you can connect quality issues directly to OTD and capacity and make better decisions about where to improve.

How can we measure rework hours to understand NCR more accurately?

To measure rework-based NCR, fabricators typically ask workers to book time explicitly to rework, repair or correction tasks rather than mixing it with normal production hours. Rework hours % is then calculated as rework hours divided by total labour hours. In EZIIL, you can create dedicated issue or rework tasks and have the team log time against them. This makes it easy to report how many hours per month or per project are lost to quality problems, which is a powerful KPI for management and continuous improvement.

What are best practices to reduce NCR without creating too much paperwork?

Effective NCR reduction focuses on preventing repeat mistakes, not drowning the shop in forms. Good practices include defining 'done' clearly at each step (fit-up, tack, weld, drill, finish, pack), adding lightweight quality gates where fixes are cheapest (pre-weld checks, first-article checks on repetitive families), using reason codes like fit-up, drawing revision, wrong material, weld defect or missing hole pattern and running a simple monthly Pareto review. EZIIL supports this by keeping drawings and notes in one place, making task statuses and ownership clear and allowing quick issue logging with comments and attachments instead of extra paper.

How should we log and analyse non-conformances in a small steel shop?

For a 10–100 person shop, NCR logging needs to be simple enough that people actually use it. A practical approach is to record issues as they happen, with a short description, a reason code and a photo if needed, then review them monthly. Grouping issues by reason code lets you build a Pareto chart: for example, 40% drawing issues, 25% fit-up, 15% wrong material, and so on. In EZIIL, team members can log issues directly on the project or assembly via comments and attachments, so all 'what went wrong' information is automatically linked to the job and easy to review later.

How does EZIIL help reduce NCR and quality-related rework?

EZIIL helps reduce NCR by improving instructions, handoffs and visibility. All project drawings, notes and decisions live in one place, so the shop is not guessing which revision is correct. Task ownership and clear statuses reduce 'I thought you had it' moments between engineering, fabrication and finishing. Plan vs actual views highlight where hours or materials are overrunning, often due to quality issues, while there is still time to react. And simple issue logging with comments and attachments builds a real-world history of problems that can be used for after-action reviews and improvement work.

How can we use NCR data to improve quoting and reference jobs?

NCR data should feed back into how you quote and plan jobs. If handrails, stairs or frames consistently burn 10–15% extra hours in grinding and rework, that means your reference assumptions are too optimistic. Closing the loop means updating standard hours, rework allowances and even design guidelines based on real NCR patterns. Because EZIIL tracks planned vs actual hours and lets you see which work types cause the most issues, you can refine your 'reference jobs' and quoting rules with data instead of gut feel.

Should we treat repeat NCRs as individual mistakes or system issues?

Repeat NCRs are almost always system issues, not individual mistakes. Common root causes include unclear or late drawings, missing tolerances, rushed releases, poor communication between departments or a lack of clear 'done' definitions. Blaming people usually hides the pattern instead of fixing it. A better approach is to use NCR logs and reason codes to see where the system is failing and then adjust processes, information flow or training. EZIIL makes those patterns visible by tying issues, extra hours and comments directly to projects and operations, so you can improve the system rather than firefight the symptoms.

Who should be responsible for NCR tracking and follow-up in a steel fabrication company?

In smaller steel shops, NCR responsibility is usually shared between the production manager, quality or welding coordinator and sometimes the owner. Operators and supervisors log issues, while production and quality leaders review trends, run root-cause discussions and decide which improvements to implement. When NCR data and comments are captured in a central system like EZIIL, everyone sees the same picture: how many issues happened, where they occurred, how many hours were lost and whether actions are improving the situation over time.

NCR (Non-conformance rate)

Q: What is non-conformance rate (NCR) in a steel fabrication shop?

Non-conformance rate (NCR) is a quality KPI that shows how often work fails to meet requirements. In a steel fabrication context, this usually means a part, weld, assembly or documentation step that triggers rework, repair, scrap or a formal non-conformance record. Tracking NCR helps you see how frequently things go wrong and where quality issues are coming from.

What is NCR (Non-conformance rate) in steel fabrication?

Non-conformance rate (NCR) is a quality KPI that tells you how often work fails to meet requirements.

In a steel fabrication context, that usually means a part, weld, assembly, or documentation step that triggers rework, repair, scrap, or a formal nonconformance record.

Why NCR matters for custom steel fabricators

In high-variation work, quality issues don’t just “cost a bit of material”.

They:

Steal capacity (rework hours push out planned work)
Hit on-time delivery (OTD) (a late fix often becomes an expedite)
Reduce margin (the quote assumed first-pass success)
Create downstream chaos (one missed fit-up or weld issue can block paint, shipping, install)

How to measure NCR

Pick a definition that fits your shop and stick to it for trend tracking.

Option 1: By items/inspections

NCR % = (Nonconforming items ÷ Total items inspected) × 100

Option 2: By jobs

Job NCR % = (Jobs with at least 1 nonconformance ÷ Jobs completed) × 100

Option 3: By effort (great for job shops)

Rework hours % = (Rework hours ÷ Total labor hours) × 100

Tip: in High Mix Low Volume (HMLV)/Make to Order MTO, “units” can be misleading, so many shops prefer job-based or hours-based NCR.

Best practices to reduce NCR

Define “done” clearly at each step (fit-up, tack, weld, drill, finish, pack). Ambiguity creates repeat mistakes.
Add lightweight quality gates where fixes are cheapest (pre-weld checks, first-article on repetitive families).
Use reason codes (fit-up, drawing revision, wrong material, weld defect, missing hole pattern). Then run a simple monthly Pareto.
Close the loop into quoting: if handrails keep burning 12% extra hours in grinding and rework, update the “reference job” assumptions.
Treat repeat NCRs as a system issue, not a person issue: unclear drawings, missing tolerances, rushed releases, or bad handoffs are the usual culprits.

EZIIL best practices

Reducing NCR is mostly about clear instructions, tight handoffs and fast visibility.

If you’re using EZIIL’s steel fabrication software make sure to:

Keep each project’s drawings, notes, and decisions EZIIL’s system, so the shop isn’t guessing which revision is correct.
Use task ownership and statuses to prevent “I thought you had it” moments between engineering, fabrication, and finishing.
Track plan vs. actual hours/materials so quality-related overruns show up while you can still act, not after the job is shipped.
Log issues as they happen (comment + attachment) to build a simple “what went wrong” trail for after-action reviews.