QUESTION 1:
What is the intent and requirements for "rendering unusable" prior to disposal? When and where does the "rendering unusable" of product need to occur?
ANSWER 1:
The intent is to ensure that the product cannot find its way into the unofficial aftermarket, onto a road vehicle, or accidentally shipped to the customer.
The process of rendering nonconforming product unusable, does not have to occur in the manufacturing area as long as the product is rendered unusable prior to final disposal.
The company I work for has deemed final disposal the scrap bin outside that the plants scrap from lines ends up in. It is "compacted" when it is half full and full (twice) by a really heavy electro magnet. Another area in our plant that receives scrap compacts it into cubes. We have a sign off sheet to show when this is done and it is audited during our LPA's, This was our accepted fix to a N/C that originally had people in the plant trying to "render scrap unusable." So basically we changed our internal wording/process on "final disposal" and verify it is being crushed in this bin before leaving our site. Hope this helps or inspires an idea.