ISO 9001 Implementation Guide

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7.5.4 Customer property

7.5.4 Customer property *

The organization shall exercise care with customer property while it is under the organization’s control or being used by the organization. The organization shall identify, verify, protect and safeguard customer property provided for use or incorporation into the product. If any customer property is lost, damage d or otherwise found to be unsuitable for use, this shall be reported to the customer and records maintained (see 4.2.4).

NOTE Customer property can include intellectual property.

(from BS EN ISO 9001:2000)

Customer property is a product (which also can include intellectual property such as data, specifications, manuals, software, survey sheets for market research, etc.) that the customer owns but provides to an organization to achieve the requirements or necessary outputs. For example, it could be material provided by the customer for injection molding, labels or reusable containers.

Another good example would be a moving company—its whole business involves this clause, which states that the organization “shall exercise care with customer while it is under the organization’s control or being used by the organization.” Can you imagine a moving company (or an auto repair shop) not adhering to this clause? They wouldn’t be in business long.

Standards writers wanted this to be important to all organizations that use customer property for their product or service, and if customer property is lost, damaged or otherwise found to be unsuitable for use, this must be reported to the customer and records must be maintained. These records are important for not only legal reasons, but also for management review so that the process can be improved.

This is an area that may not require a documented procedure. It simply depends on the size and scope of the organization and whether the organization deems a procedure as appropriate. Organizations should note, however, that if the customer sells the items to you, then Clause 7.4 applies, not 7.5.4.

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