SAMPLE COMPANY                                        Page 1 of 6
SOP # 13-1  Revision: 0                Prepared by:             _
Effective Date:                        Approved by:             _


Title:         NONCONFORMING COMPONENTS AND PRODUCTS

Policy:   Any nonconforming product items are to be identified,
          segregated and documented to prevent their inadvertent
          use.  All nonconforming items will be reviewed to
          determine their appropriate disposition.

Purpose:  To outline the procedures for the handling and
          disposition of nonconforming product.

Scope:    This procedure applies to all nonconforming items found
          in production and finished products.


Procedures:

1.0  Identification and Segregation

1.1  If during production or at an inspection point, any finished
     product, assembly or component is nonconforming and/or
     rejected, the Quality Control Manager is to be notified.

1.2  The Quality Control Manager will evaluate the item and
     determine if any other nonconforming items exist.  The
     Quality Control Manager will work in conjunction with
     production to have all nonconforming items discovered and
     removed from production and inventory storage including
     removal from higher level assemblies.  To control this
     process, a Nonconforming Item and Disposition report should
     be prepared and then a Material Purge Request (Exhibit 1)
     should be completed and appropriate action taken.

1.3  The nonconforming items will then be noticeably identified
     with a color "Red" rejection label or tag and physically
     segregated by placing them into a designated quarantine area
     to await disposition.  Quarantine areas have been
     established along-side but separate from production lines,
     next to the receiving and inspection area and next to the
     finished product inspection area.

1.4  In the event numerous nonconforming items are discovered
     which will interrupt production operations, the Production
     Manager and the Quality Assurance Manager will review the
     situation to determine possible actions including possible
     substitution of equivalent items.  Any substitutions should
     be requested by completing an "Equivalent Item
     Authorization" form (Exhibit 2).
NONCONFORMING COMPONENTS AND PRODUCTS                 Page 2 of 6


2.0  Review and Disposition

2.1  All nonconforming items will be evaluated and reviewed by
     the Quality Control Manager and the Production Supervisor
     for disposition of the items.

2.2  The Nonconforming Item and Disposition report should be
     completed for items deemed to be acceptable as is with or
     without concession or items to be regraded for alternative
     applications.  The items should then be appropriately
     identified and return to stock or production.

2.3  For components that are to be returned to the vendor for
     rework or replacement, a Material Return Notice (Exhibit 3)
     should be completed.

2.4  For items deemed unusable or to costly to justify reworking
     should be tagged as Scrap and disposed of accordingly.

2.5  For items that can be rebuilt or reworked, a Nonconforming
     Material Rework/Repair Instructions form (Exhibit 4) should
     be completed, authorized and implemented.


3.0  Reinspection of Reworked or Repaired Items

3.1  Any rebuilt products or components that have been reworked
     or repaired will be resubmitted to Quality Control for
     inspection and will be notated with the reason for rejection
     and corrective action taken.