Pitfalls of Hold Procedures for Faulty Product

Just the existence of a “hold” recognizes Murphy’s Law. Dealing with faulty product should be done in a manner that will prevent further problems.

So what is a “hold?” Simply put, a hold is a procedure designed to remove questionable product from use. Use is usually defined as a fully packaged product on the way to a customer but it doesn’t have to be just finished products. Any questionable material can be placed on hold. These materials could consist of ingredients, packaging supplies, in-process product and even truck trailers. Initially a hold does not mean the product is faulty, just questionable.

REASONS FOR A HOLD. So why do we hold something? Holding questionable product indicates there is a good reason that a defect(s) exists. Although there can be countless reasons for defects, a product defect typically means there is an undesirable variance from standard. The reality of the matter is that some variances are acceptable and some are not. A hold removes questionable product from normal channels to be further investigated and ultimately determines that product’s acceptability.

When a location experiences a product defect, that information should be communicated through proper channels immediately in the form of a “Faulty Product Report.” This report typically will consist of the who, what, when, where, how and why, documenting details associated with product quantity, code dates and other information that collectively substantiates the reason for a hold. Concurrent activity will isolate questionable product in a quarantined area clearly marking the product with a hold warning. This stage of a hold starts the sampling/testing plan measuring the suspect variance to standard for an intelligent disposition decision. Questionable product can be released entirely, sorted bad from good or kept on hold for later disposal. Disposition can range from reworking faulty product (making it saleable) or destroying it by a least-cost method.

Assuming no pitfalls exist with a hold procedure is a dangerous assumption. Pitfalls are hidden and not easily recognized as a danger. Just think of the potential consequences of unsafe product reaching a consumer and your imagination can fill in the blank. Here are a few dos and don’ts to assure that your hold procedure will not make matters worse.

• Do the documentation legibly, timely, completely and keep it organized. A binder, computer folder (backed up regularly) or other record-keeping means should be a central hold communication log, a “go to all in one” place for any hold-related communication.
• Don’t jump to conclusions. It’s a good idea to verify before you make an initial hold decision and any subsequent decisions along the way to final product disposition.
• Do validate the final faulty product disposition. In some cases witnessing and photo documenting the destruction is a good practice. 
• Don’t skip denoting hold warnings on multiple sides of a pallet. Assure the hold warning will withstand pallet movement, i.e., hold tape. Don’t assume that a computer will take care of holding faulty product in an electronic warehouse.
• Do the essential pre-requisites before any hold. An ounce of prevention is worth a pound of cure. Destroy least cost method (DLCM) is a disposition people do not like to see.
• Do keep track of the dollar amount of product unsaleables. This number can pay dividends later when a return on investment solution is being pursued.
• Don’t keep product on hold for too long. Eventually somebody, usually an off-shift substitute employee, will pull held product and ship it. Regularly update held product.
• Do educate all employees what a hold sign means. Help them understand the importance of finding a hold warning lying on the floor that was knocked off a pallet (maybe while cleaning).

CONCLUSION. A final note is that this type of information (faulty product) should be considered sensitive and confidential. Holding faulty product is not a popular subject and one that QA professionals should deal with on a regular basis, assuring customer satisfaction and preventing further problems. May your time of dealing with faulty product not meet with Murphy’s Law.  QA

The author is an accredited associate of the Institute for Independent Business and can be reached through his website www.qualitycenteredconsulting.com or by calling 816/436-1627 or emailing odosland@gie.net.