NCR seems, to me, one of the most widely misunderstood acronyms. Most people tend to confuse NCR with a Corrective Action or, worse yet, with an Audit Nonconformity. First of all, a Nonconformance is an instance when a product does not meet product specifications - whether the nonconformity is major or minor - and therefore does not conform to requirements (hence the term Nonconformance). Nonconformance Reports, or NCRs, log and track the occurrence of Nonconformances either in paperwork or in electronic form.