1 of 6 CONTROL OF NONCONFORMING PRODUCT

DOCUMENT NUMBER CLASSIFICATION DOCUMENT LEVEL REVISION NUMBER ISSUE DATE PREPARED BY APPROVAL
TECHNICAL ADVISORY MFG
GL-WFT-SC-L4-33 CONTROLLED L4 Process Realization B 27 January 2017
COMMITTEE FOR MFG APPROVAL BOARD

TABLE OF CONTENTS

Part Description
1.0 Purpose
2.0 Scope
3.0 Responsibilities
4.0 Procedure
4.1 Product Identification to Prevent Unintended Use or Delivery
4.2 Addressing the Detected Non-conformity
4.3 Taking Action to Preclude It’s Original Intended Use Or Deliver; And
4.4 Authorizing It’s Use, Release, or Acceptance Under Concession
4.5 Disposition of Non-conforming Product
4.6 Review and Approval of Disposition
4.7 Procedure for nonconforming product identified after delivery
4.8 Non-conforming Product
4.9 Release of Non-conforming Product Under Concession
4.10 Customer Return/Complaint
4.11 Customer Notification
4.12 Records
5.0 References and Records
6.0 Document Change Record

©2018 WEATHERFORD ALL RIGHTS RESERVED PROPRIETARY AND CONFIDENTIAL.

THIS DOCUMENT IS COPYRIGHTED AND CONTAINS VALUABLE PROPRIETARY AND CONFIDENTIAL INFORMATION, WHETHER PATENTABLE OR UNPATENTABLE, OF
WEATHERFORD. RECIPIENTS AGREE THE DOCUMENT IS LOANED WITH CONFIDENTIAL RESTRICTIONS, AND WITH THE UNDERSTANDING THAT NEITHER IT NOR THE
INFORMATION CONTAINED THEREIN WILL BE REPRODUCED, USED OR DISCLOSED IN WHOLE OR IN PART FOR ANY PURPOSE EXCEPT AS MAY BE SPECIFICALLY AUTHORIZED
IN WRITING BY WEATHERFORD.
 2 of 6 CONTROL OF NONCONFORMING PRODUCT
DOCUMENT NUMBER CLASSIFICATION DOCUMENT LEVEL REVISION NUMBER ISSUE DATE PREPARED BY APPROVAL
TECHNICAL ADVISORY MFG
GL-WFT-SC-L4-33 CONTROLLED L4 Process Realization B 27 January 2017
COMMITTEE FOR MFG APPROVAL BOARD

1.0 Purpose

The purpose for this procedure is to define and identify the controls and related responsibilities
and authorities for addressing nonconforming product.

2.0 Scope

This procedure shall apply to all nonconforming products at Weatherford Manufacturing facilities.

3.0 Responsibilities

The global quality assurance management group is responsible for ensuring this procedure is
maintained. The site top management and the site management representative are responsible
for ensuring this procedure is implemented, understood, complied with, and communicated.

4.0 Procedure

4.1 Product Identification to Prevent Unintended use or Delivery

Nonconforming product is to be identified in a manner that clearly indicates the product is

nonconforming and is not to be used pending disposition, and to prevent unintended use or
delivery.

Nonconforming product(s) shall be identified with the following as a minimum but not limited to:

 NCR number
 Part Number
 Work Order/Job Card/ Router numbers/PO, etc.
 Quantity

The identification can be done by tags, paint markers, or other means to ensure product stays
identified. Segregation of product can be performed when possible to further reduce risk of using
nonconforming product.

4.2 Addressing the detected nonconformity

Product nonconformities shall be addressed by documenting, reviewing, evaluating, and

dispositioning of all product nonconformities on an NCR in WPTS.

4.3 Taking action to Preclude its Original intended use or Delivery; and

Documenting the nonconformance in WPTS on a NCR, and identifying the NCR number on the
component is taking action to preclude its original intended use or delivery.

4.4 Authorizing its use, release, or acceptance under concession by relevant authority and,
where applicable, by the customer

©2018 WEATHERFORD ALL RIGHTS RESERVED PROPRIETARY AND CONFIDENTIAL.

THIS DOCUMENT IS COPYRIGHTED AND CONTAINS VALUABLE PROPRIETARY AND CONFIDENTIAL INFORMATION, WHETHER PATENTABLE OR UNPATENTABLE, OF
WEATHERFORD. RECIPIENTS AGREE THE DOCUMENT IS LOANED WITH CONFIDENTIAL RESTRICTIONS, AND WITH THE UNDERSTANDING THAT NEITHER IT NOR THE
INFORMATION CONTAINED THEREIN WILL BE REPRODUCED, USED OR DISCLOSED IN WHOLE OR IN PART FOR ANY PURPOSE EXCEPT AS MAY BE SPECIFICALLY AUTHORIZED
IN WRITING BY WEATHERFORD.
 3 of 6 CONTROL OF NONCONFORMING PRODUCT
DOCUMENT NUMBER CLASSIFICATION DOCUMENT LEVEL REVISION NUMBER ISSUE DATE PREPARED BY APPROVAL
TECHNICAL ADVISORY MFG
GL-WFT-SC-L4-33 CONTROLLED L4 Process Realization B 27 January 2017
COMMITTEE FOR MFG APPROVAL BOARD

Acceptable for use: Acceptable for Use outside of Manufacturing Acceptance Criteria will require
Engineering to authorize its use or release under concession, and document technical justification
of why the product will be acceptable outside of the design parameters. The technical justification
will be in sufficient detail to explain the reason for acceptance.

4.5 Disposition of Nonconforming Product

Engineering shall have the relevant authority for disposition, and authorizing its use, release, or
acceptance under concession and where applicable by the customer.

API Licensed Facilities shall refer to the site specific API Monogramming procedure for the
removal of API monogram from nonconforming product when applicable.

4.6 Review and Approval of Disposition

The review of dispositions will consist of an in-house review and approval process, unless
specified by contractual agreement.

When contractual (PO, QCPs) requirements so dictate, the review and disposition process shall
include, to the extent required, formal notification to the customer or their representative for
authorizing its use, release, acceptance under concession of the nonconformance and disposition
recommendations. In all such cases the customer or their representative shall have total review
and relevant authority over the nonconformance disposition.

Manufacturing and/or Quality personnel have the responsibility to disposition scrap and rework
product that does not require additional Engineering disposition.

All completed nonconformance’s will be closed in WPTS by Quality personnel or designee.

4.7 Procedure for nonconforming product identified after delivery shall include controls for:

a) Identifying, documenting, and reporting non-conformances or product failure

identified after delivery;

When manufacturing facilities discover non-conforming product not conforming to DAC or

contract requirements after the shipment has been made, Quality shall be informed. Quality
shall issue a nonconformance report. This procedure will be followed to complete the
disposition process. The Weatherford customer liaison (product line managers, customer
services representatives, and/or sales contact) shall be notified of the engineering disposition
and shall notify the customer(s) of the incident and take action as deemed necessary.

b) Ensuring the analysis of product nonconformance or failure, provided the product or

documented evidence supporting the nonconformity is available to facilitate the
determination of the cause (see 6.4.2);

The documented supporting evidence shall be in WPTS. A corrective/preventive action

request (CPAR) shall be generated and processed in accordance with GL-WFT-SC-L4-27
“Corrective Action” in order to determine the root cause(s) and establish corrective actions to
prevent recurrence of the relevant nonconformance.

c) Taking action appropriate to the effects, or potential effects, of the nonconformance

when nonconforming product is detected after delivery.

©2018 WEATHERFORD ALL RIGHTS RESERVED PROPRIETARY AND CONFIDENTIAL.

THIS DOCUMENT IS COPYRIGHTED AND CONTAINS VALUABLE PROPRIETARY AND CONFIDENTIAL INFORMATION, WHETHER PATENTABLE OR UNPATENTABLE, OF
WEATHERFORD. RECIPIENTS AGREE THE DOCUMENT IS LOANED WITH CONFIDENTIAL RESTRICTIONS, AND WITH THE UNDERSTANDING THAT NEITHER IT NOR THE
INFORMATION CONTAINED THEREIN WILL BE REPRODUCED, USED OR DISCLOSED IN WHOLE OR IN PART FOR ANY PURPOSE EXCEPT AS MAY BE SPECIFICALLY AUTHORIZED
IN WRITING BY WEATHERFORD.
 4 of 6 CONTROL OF NONCONFORMING PRODUCT
DOCUMENT NUMBER CLASSIFICATION DOCUMENT LEVEL REVISION NUMBER ISSUE DATE PREPARED BY APPROVAL
TECHNICAL ADVISORY MFG
GL-WFT-SC-L4-33 CONTROLLED L4 Process Realization B 27 January 2017
COMMITTEE FOR MFG APPROVAL BOARD

Weatherford shall implement corrective action for product already delivered, but later found to
be nonconforming. Customers shall be notified, where required by contract.

4.8 Nonconforming Product

The manufacturing facility shall address nonconforming product by performing one or more of the
following:

All nonconformance dispositions will be documented on the nonconformance report. The specific
disposition is to be detailed enough to satisfy the reviewing parties that the disposition is
warranted. Dispositions are categorized as follows:

4.8.1 Repair or Rework with subsequent inspection to meet specified requirements;

This would be captured in WPTS as Obvious Rework or Rework. All reworked NCRs shall be re-
inspected. Re-inspection shall be documented on the NCR in WPTS.

Obvious Rework

Product that is obvious rework and can be reworked to meet the Engineering drawing
requirements may be dispositioned, by manufacturing, identified with NCR number, and then
reworked.

● Product that is dispositioned in this manner does not require an engineering disposition and
shall be so indicated by selection of Obvious Rework in the Obvious Disposition section of
the nonconformance report.

● Lead person, supervisor, or manager of the function or activity that is responsible for the
nonconformance shall be notified electronically of the nonconformance.

● Product that is not obvious rework as described above shall be identified, documented, and
reviewed by the designated Engineering representative. The designated Engineering
representative shall review the NCR for evaluation and disposition.

Repair or Rework within Manufacturing Acceptance Criteria (MAC).

The person documenting the rework NCR can disposition as Obvious Rework, with the exception
of products requiring repair and only if the product is going to be reworked within Manufacturing
Acceptance Criteria. Reworked or repaired product not conforming to requirement as specified in
the disposition shall be documented as nonconforming and will be processed according to this
procedure.

Rework or repaired product will be re-inspected to verify conformance to specified requirement.

The subsequent inspection and acceptance or rejection of the product shall be documented.

The subsequent inspection portion of the WPTS NCR shall be completed on all rework or repair
verified and the appropriate work order routing operation shall be signed off as completed by the
person performing the rework or repair inspection.

4.8.2 Re-grade for alternative applications: re-grades for alternative applications will be documented in
WPTS as rework; however, justification shall specify the re-grade requirements.

©2018 WEATHERFORD ALL RIGHTS RESERVED PROPRIETARY AND CONFIDENTIAL.

THIS DOCUMENT IS COPYRIGHTED AND CONTAINS VALUABLE PROPRIETARY AND CONFIDENTIAL INFORMATION, WHETHER PATENTABLE OR UNPATENTABLE, OF
WEATHERFORD. RECIPIENTS AGREE THE DOCUMENT IS LOANED WITH CONFIDENTIAL RESTRICTIONS, AND WITH THE UNDERSTANDING THAT NEITHER IT NOR THE
INFORMATION CONTAINED THEREIN WILL BE REPRODUCED, USED OR DISCLOSED IN WHOLE OR IN PART FOR ANY PURPOSE EXCEPT AS MAY BE SPECIFICALLY AUTHORIZED
IN WRITING BY WEATHERFORD.
 5 of 6 CONTROL OF NONCONFORMING PRODUCT
DOCUMENT NUMBER CLASSIFICATION DOCUMENT LEVEL REVISION NUMBER ISSUE DATE PREPARED BY APPROVAL
TECHNICAL ADVISORY MFG
GL-WFT-SC-L4-33 CONTROLLED L4 Process Realization B 27 January 2017
COMMITTEE FOR MFG APPROVAL BOARD

4.8.3 Release under concession and/or: This is captured in WPTS as acceptable for use in
accordance with sections 4.4 and 4.9.

4.8.4 Scrap: This is captured in WPTS as Obvious Scrap/ Scrap, or Return to Vendor.

Engineer should disposition as Scrap and no justification is required. The component can be
disposed as scrap and/or used for setup purposes.

Obvious Scrap/Scrap

Products that are obvious scrap and non-repairable may be dispositioned by Quality Control
and/or manufacturing. It is to be disposed of after the Nonconformance Report is completed and
reviewed by manufacturing supervision and/or Quality Control personnel.

● Product that is dispositioned in this manner does not require an engineering disposition and
shall be so indicated by selection of Obvious Scrap in the Obvious Disposition section of
the nonconformance report.

● Lead person, supervisor, or manager of the function or activity that is responsible for the
nonconformance shall be notified electronically of the nonconformance. The WPTS NCR
allows for selection of personnel that require notification (e.g. Planning, Manufacturing, and
Procurement) and the person will receive and email notification.

● Product that is not obvious scrap as described above shall be identified and documented
and the designated Engineering representative shall review the NCR for evaluation and
disposition.

4.8.5 Return to Vendor

Return to Vendor shall be for product that needs to be either reworked and / or scrap and shall
follow the same requirements as 4.8.1 or 4.8.4.

Quality shall review the disposition and return to Engineering if the guidelines established in 4.9
are not followed.

4.9 Release of Nonconforming Product under Concession.

The evaluation and release under concession of nonconforming product that does not satisfy
manufacturing acceptance criteria (MAC) shall be permitted when Weatherford manufacturing
facility’s relevant authority and the customer (where applicable) have authorized the release
provided that:

a) products continue to satisfy the applicable DAC and/or customer criteria; or

b) the violated MAC are categorized as unnecessary to satisfy the applicable DAC and/or
customer criteria; or

c) the DAC are changed and the products satisfy the revised DAC and associated MAC
Requirements.

4.10 Customer Return/Complaint

©2018 WEATHERFORD ALL RIGHTS RESERVED PROPRIETARY AND CONFIDENTIAL.

THIS DOCUMENT IS COPYRIGHTED AND CONTAINS VALUABLE PROPRIETARY AND CONFIDENTIAL INFORMATION, WHETHER PATENTABLE OR UNPATENTABLE, OF
WEATHERFORD. RECIPIENTS AGREE THE DOCUMENT IS LOANED WITH CONFIDENTIAL RESTRICTIONS, AND WITH THE UNDERSTANDING THAT NEITHER IT NOR THE
INFORMATION CONTAINED THEREIN WILL BE REPRODUCED, USED OR DISCLOSED IN WHOLE OR IN PART FOR ANY PURPOSE EXCEPT AS MAY BE SPECIFICALLY AUTHORIZED
IN WRITING BY WEATHERFORD.
 6 of 6 CONTROL OF NONCONFORMING PRODUCT
DOCUMENT NUMBER CLASSIFICATION DOCUMENT LEVEL REVISION NUMBER ISSUE DATE PREPARED BY APPROVAL
TECHNICAL ADVISORY MFG
GL-WFT-SC-L4-33 CONTROLLED L4 Process Realization B 27 January 2017
COMMITTEE FOR MFG APPROVAL BOARD

Customer returns/Complaint should be documented on a CPAR in accordance with GL-WFT-SC-

L4-27 “Corrective Action”. All returned nonconforming product should be identified with the
CPAR number. Receiving personal will move the product when received to the Receiving
inspection for validation of said problem description.

4.11 Customer Notification

Weatherford manufacturing facilities shall notify the customer when the product is determined to
be nonconforming to DAC or contract requirements after delivery. Weatherford manufacturing
facilities shall maintain records of such notifications and it shall be documented in an NCR or a
CPAR in WPTS. Customers and interested parties shall be notified, when required. This
notification may be by any of several methods such as, directly by Customer Service or
Management via email, document distribution system (DDS), or similar documented method.

5 References and Records

5.1 Reference Source

 GL-WFT-SC-L4-26 Control of Records Procedure

 GL-WFT-SC-L4-27 Corrective Action Procedure
 GL-WFT-SC-L4-28 Preventive Action Procedure
 Weatherford’s Performance Tracking System

5.2 Records

Records of the nature of nonconformities and any subsequent actions taken, including
concessions obtained, shall be maintained in WPTS.

Records Non-conforming product shall be controlled in WPTS and maintained in accordance with
procedure GL-WFT-SC-L4-26 Control of Records.

6 Document Change Record

Revision Parts
Effective Date Responsible Change Description
Number Affected
Approval Board
A 27 January 2017 All New Standardized Global Procedure
for Mfg.
Changed the last sentence in section
4.11 to state: Customers and interested
parties shall be notified, when
Approval Board required. This notification may be by
B 13 April 2018 4.11
for Mfg. any of several methods such as, directly
by Customer Service or Management via
email, document distribution system
(DDS), or similar documented method.

©2018 WEATHERFORD ALL RIGHTS RESERVED PROPRIETARY AND CONFIDENTIAL.

THIS DOCUMENT IS COPYRIGHTED AND CONTAINS VALUABLE PROPRIETARY AND CONFIDENTIAL INFORMATION, WHETHER PATENTABLE OR UNPATENTABLE, OF
WEATHERFORD. RECIPIENTS AGREE THE DOCUMENT IS LOANED WITH CONFIDENTIAL RESTRICTIONS, AND WITH THE UNDERSTANDING THAT NEITHER IT NOR THE
INFORMATION CONTAINED THEREIN WILL BE REPRODUCED, USED OR DISCLOSED IN WHOLE OR IN PART FOR ANY PURPOSE EXCEPT AS MAY BE SPECIFICALLY AUTHORIZED
IN WRITING BY WEATHERFORD.