ISO9001 System Document Package (19) | Customer Property Control Procedure (8.5.3)

Document Description: This document is the implementation procedure for clause 8.5.3 "Customer Property" of ISO 9001:2015, classified as a second-level document (procedure document). It forms part of the control document group for the production and service provision process (8.5) together with the "Production Process Control Procedure," "Identification and Traceability Control Procedure," and "Nonconforming Product Control Procedure." Customer property refers to materials, components, molds, tooling, packaging, technical drawings, intellectual property, and personal information provided by the customer to enable the organization to complete product realization. This is common in business models such as processing on consignment, OEM/ODM manufacturing, equipment installation and maintenance, and testing services. The value of this procedure lies in: clearly defining the responsibilities for identifying, verifying, marking, protecting, using, and reporting anomalies of customer property throughout the process, to avoid losses due to poor storage or improper use, which could lead to claims and a crisis of trust. It is applicable to all enterprises that receive, use, and store customer property, especially small and medium-sized manufacturing enterprises primarily engaged in processing on consignment.

1. Purpose

To standardize the entire process of receiving, verifying, marking, protecting, using, and handling anomalies of customer property, ensuring that customer property is properly stored and correctly used during the organization's control period, and preventing loss, damage, or misuse. When customer property is lost, damaged, or found to be unsuitable, it should be promptly recorded and reported to the customer to protect their rights and meet the requirements of clause 8.5.3 of ISO 9001:2015.

2. Scope of Application

This procedure applies to the following customer property provided by the customer, owned by the customer, and controlled or used by the company in business activities:

1. Raw materials, auxiliary materials, semi-finished products, components, and packaging materials provided by the customer.
2. Molds, fixtures, tooling, gauges, inspection tools, and special equipment provided by the customer.
3. Technical drawings, process documents, formulas, standards, software, and intellectual property provided by the customer.
4. Customer products entrusted to the company for storage, maintenance, installation, or testing.
5. Personal information and other items or documents with property attributes provided by the customer.

Customer property does not include products ordered by the customer but not yet delivered (such products are managed according to the "Production Process Control Procedure" and "Product Protection Control Procedure").

3. Responsibilities

4. Work Procedures

4.1 Identification and Contract Agreement of Customer Property

1. The Sales Department should identify whether customer property exists in the business process during contract negotiations, specifying the types, quantities, ownership, provision times, storage locations, and special storage requirements.
2. For customer property of high value or special storage conditions (such as precision molds, valuable raw materials, and confidential technical documents), separate clauses should be included in the contract/order to define the responsibilities of both parties and the principles of loss compensation.
3. The Sales Department should communicate customer property information to the Warehouse Department, Production Department, Quality Department, and other relevant parties in the form of a "Customer Property List."

4.2 Receiving and Verification

1. Upon arrival, the warehouse custodian and quality inspector from the Quality Department should jointly perform the receiving verification, checking the following:
   • Whether the type, specification, and quantity match the "Customer Property List" or delivery note.
   • Whether the appearance is intact, without dents, deformation, rust, moisture, or damage.
   • Whether the accompanying documents (drawings, certificates of conformity, inspection reports, user manuals) are complete.
   • Whether the packaging is intact and the markings are clear and legible.
2. After verification, the custodian should fill out the "Customer Property Receipt Record," complete the warehousing procedures, and promptly notify the Sales Department to confirm the arrival.
3. If shortages, damage, or incomplete documentation are found during verification, the custodian should store the property separately and mark it as "Pending Handling." The Quality Department should issue a verification conclusion within 1 working day, and the Sales Department should notify the customer in writing within 2 working days to negotiate a handling plan (replenishment, replacement, or conditional acceptance). The handling results should be recorded in the "Customer Property Anomaly Report."

4.3 Marking and Registration

1. All customer property should be marked with a "Customer Property" sign upon warehousing, indicating the customer name, property name, specification, quantity, warehousing date, and responsible person for storage.
2. The custodian should establish a "Customer Property Ledger" based on the principle of "one customer, one book," registering the customer name, property name, specification model, quantity, warehousing date, storage location, and usage/return status, ensuring consistency between the ledger, physical items, and cards.
3. Technical drawings, process documents, and other customer-provided technical documents should be registered and controlled by the Technical Department according to the "Document Control Procedure," stamped with a "Customer Provided Documents" seal, stored separately, and labeled with a confidentiality level.

4.4 Storage and Protection

1. Customer property should be stored in designated areas (which can be separated from the organization's own materials using isolation lines or markings), with storage conditions determined based on the property characteristics:
   • Moisture-sensitive and sun-sensitive materials should be stored in dry and well-ventilated areas, with appropriate moisture and sun protection measures.
   • Precision molds and gauges should be stored on dedicated shelves with rust prevention and impact protection measures.
   • Hazardous chemicals should be stored in designated areas according to safety regulations.
   • Electronic products should be protected against static electricity and dust.
2. The Warehouse Department should conduct a regular inspection of customer property once a month, checking the storage environment, appearance, and quantity against the ledger. The inspection results should be recorded in the "Customer Property Regular Inspection Record."
3. Customer property should not be used for other purposes, lent out, copied, or modified for other products without written consent from the customer.

4.5 Issuance and Use

1. The Production Department should collect customer property from the Warehouse Department based on the "Production Task Order," verifying the name, specification, and quantity upon issuance and signing for confirmation. The custodian should update the ledger promptly.
2. During production, operators should use customer property according to the work instructions, handling it gently and correctly. Any anomalies should be reported immediately to the team leader and the Quality Department.
3. After use, molds, tooling, and other customer property should be cleaned and maintained by the Production Department before being returned to the warehouse. The Warehouse Department should inspect and confirm the return.
4. Customer-provided technical documents should be used only for the current project. After use, they should be returned to the Technical Department for archiving. No copying or external transmission is allowed without written permission from the customer.

4.6 Anomaly Handling and Reporting

1. If customer property is lost, damaged, deteriorated, or found to be unsuitable (e.g., specifications do not meet production requirements) during the organization's control period, the discovering department should immediately report to the Quality Department.
2. The Quality Department should organize a cause analysis with relevant departments, assess the impact, and fill out the "Customer Property Anomaly Report," which should include: a description of the anomaly, the time and location of occurrence, preliminary cause analysis, impact assessment, and handling recommendations.
3. The Sales Department should notify the customer in writing within 2 working days, and negotiate a handling plan (repair, compensation, replenishment, or plan adjustment). The handling results should be signed and confirmed by both parties.
4. If the anomaly affects delivery schedules, the Sales Department should promptly communicate with the customer to revise the delivery plan and process the contract change according to the "Control Procedure for Processes Related to the Customer."
5. All anomaly reports and handling records should be archived by the Quality Department and used as inputs for management review and continuous improvement.

4.7 Return and Account Settlement of Customer Property

1. After the use of customer property or the end of the contract, the Sales Department should handle the return or on-site disposal procedures according to the customer's requirements:
   • Returned property should be counted, packaged, and processed for outbound procedures by the Warehouse Department, accompanied by a "Customer Property Return List."
   • If the customer agrees to on-site disposal, the procedures for scrapping or transferring should be processed based on written confirmation from the customer.
2. After the project is completed, the Quality Department should organize the account settlement of customer property, confirming that there are no omissions or unresolved issues before closing the record.

4.8 Flowchart (Text Version)

Customer Property Provided (Contract Agreement)
        ↓
Receiving Verification (Warehouse Department + Quality Department) ── Anomaly ──→ Separate Storage with "Pending Handling" Mark
        ↓ Qualified                          ↓
Warehousing, Marking, and Registration (Customer Property Ledger)     Notify Customer and Negotiate Handling (Sales Department, 2 working days)
        ↓                                ↓
Storage and Protection (Regular Inspection, Monthly)       Fill Out "Customer Property Anomaly Report"
        ↓
Issuance and Use at Production Site (Correct Operation)
        ↓
Return After Use/Regular Inspection
        ↓
Anomaly? ── Yes ──→ Anomaly Report and Customer Communication (4.6)
        ↓ No
Account Settlement/Return/On-site Disposal at End of Contract
        ↓
Record Archiving (Quality Department)

5. Related Records

6. Related Documents

1. "Document Control Procedure"
2. "Record Control Procedure"
3. "Production Process Control Procedure"
4. "Identification and Traceability Control Procedure"
5. "Product Protection Control Procedure"
6. "Nonconforming Product Control Procedure"
7. "Control Procedure for Processes Related to the Customer"

Usage Instructions

1. How to Modify According to Actual Business Needs

1. Business Model Adaptation: For pure consignment processing enterprises, sections 4.2 Verification and 4.5 Issuance should be more detailed, specifying that each batch of incoming materials must be fully verified. For enterprises primarily engaged in technical services (testing, maintenance, installation), the focus should be on strengthening the receiving registration, status marking, and return confirmation of customer equipment/samples, and a "Customer Equipment Maintenance Handover Form" can be added.
2. Organizational Structure Adaptation: For small enterprises without an independent warehouse department, the warehouse responsibilities can be merged into the production department, with a designated person responsible for these tasks in section 4.4. For enterprises where the sales department and customer service department are combined, the external reporting responsibilities can be unified under the customer service position without adding a new department.
3. Supplement for Special Property: For enterprises involving customer intellectual property (formulas, software, drawings), it is recommended to add confidentiality clauses in section 4.3, specifying the classification, borrowing approval, and destruction requirements for confidential documents. For enterprises involving customer personal information, additional information protection requirements should be included, aligning with the "Personal Information Protection Law."
4. Ledger Format: Small enterprises can use Excel to establish the "Customer Property Ledger," while large enterprises can integrate it into the ERP system. Regardless of the format, the requirements for consistency between the ledger, physical items, and cards, and regular inventory checks, remain unchanged.

2. Audit Focus Points (Frequent Check Items During Certification Audits)

1. Auditors will randomly check 1-2 items of customer property on-site, verifying whether the ledger, physical items, and markings are consistent, and whether the "Customer Property" markings are clear and the storage areas are isolated.
2. They will trace one "Customer Property Anomaly Report" to verify whether the customer was notified within the specified time, whether there is a written response from the customer, and whether the handling was closed-loop.
3. They will check the controlled status of customer-provided drawings/documents: whether they are registered, whether they are stamped with a controlled seal, whether the versions are controlled, and whether there is any unauthorized copying.
4. They will confirm whether the procedure covers all the requirements of standard 8.5.3: "identification, verification, protection, and protection," and "reporting to the customer when lost, damaged, or found to be unsuitable."

3. Common Errors

1. Failure to Identify Customer Property: Managing customer-provided materials and molds as ordinary materials without a ledger or markings, making it impossible to prove control during audits.
2. Failure to Report Anomalies: Handling customer property damage internally without notifying the customer, or notifying them verbally without a record—this is the most common reason for nonconformities under clause 8.5.3.
3. Ledger and Physical Items Out of Sync: Failing to register issuance and returns promptly, leading to discrepancies in inventory, which auditors may judge as "record out of control."
4. Improper Use of Terms in Scope: Incorrectly managing "customer-ordered products" as customer property, or omitting "customer personal information" as a new form of property.
5. Handling Without Closure: Issuing anomaly reports without follow-up, customer confirmation, or final handling records, leading to a "dead-end" situation where the report is considered complete once issued.

Customer property is fully controlled throughout the process, and anomalies are promptly reported to the customer.

Knowledge code: 2.3.1

Version: v20260809

Author: Quality Think Tank Quality Think Tank is dedicated to providing systematic professional knowledge, methodologies, and practical tools for quality management practitioners, helping enterprises continuously improve their quality capabilities.