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Operational guide · SMS process

Managing a Non-Conformity (NC)

How a non-conformity is opened, classified and formally closed within the Safety Management System — the heart of the ISM Code's continuous improvement cycle.

ISM CodeNon-ConformitySMSaudit

Operational Explanation

The ISM Code defines a non-conformity, at paragraph 1.1.9, as «an observed situation where objective evidence indicates the non-fulfilment of a specified requirement». The decisive element is objective evidence: it is what separates a finding from an opinion, what makes an NC defensible or contestable on appeal, and what an auditor must be able to point to. A situation raised without it is not a non-conformity.

The Code defines two terms, not three: non-conformity (1.1.9) and major non-conformity (1.1.10) — «an identifiable deviation that poses a serious threat to the safety of personnel or the ship or a serious risk to the environment that requires immediate corrective action, and includes the lack of effective and systematic implementation of a requirement of this Code». Those last two elements are what determines the suspension of the SMC and the outcome of an ISM-related detention. The term «minor non-conformity» does not appear in the Code: it is a category of practice, introduced by the implementation guidelines and by the internal procedures of Recognized Organizations and Companies, and it must be presented as such.

NC management is the mechanism through which the ISM Code translates the principle of continuous improvement into daily practice: without an NC → root cause analysis → action → effectiveness verification cycle, the SMS remains a document rather than becoming a living system.

Regulatory Reference

ISM Code, Section 9 (Reports and Analysis of non-conformities, Accidents and Hazardous Occurrences): the Company must establish procedures for identifying, reporting and analysing non-conformities, as well as for taking corrective action.

Scope of Application

Applies to every ISM-certified Company (DOC) and every ship holding a Safety Management Certificate (SMC). NCs arise from internal audits, from external certification audits carried out by the Administration or the Recognized Organization, from crew reports and from recurring Near Misses.

Port State Control is not among these sources. The PSC does not conduct audits and does not issue non-conformities: it issues deficiencies, each with its action code. Those relating to the safety management system are classified as ISM-related deficiencies and may lead to detention and to a subsequent additional verification by the Administration or the Recognized Organization — and it is that verification, not the inspection, that produces an NC. Opening an NC in the SMS register in response to a PSC deficiency, and stopping there, means failing to carry out the rectification the action code requires.

Procedure / How to Complete It

  1. Record the NC as soon as it is observed: what happened, where, when, which SMS or ISM Code requirement was not met, and above all what the objective evidence is — the document, the record, the measurement, the observed condition. Without it the finding is not defensible.
  2. Establish whether it is a major non-conformity under the definition in paragraph 1.1.10 — serious threat to personnel, ship or environment, immediate corrective action required, or lack of effective and systematic implementation of a requirement of the Code. If it is not, it is a non-conformity: the «minor» label, where the Company uses it, comes from its own procedure and not from the Code.
  3. Conduct a root cause analysis, not stopping at the immediate symptom.
  4. Define a CAPA (corrective and, where relevant, preventive action) with an owner and a deadline.
  5. Verify the effectiveness of the action after a suitable interval, before formally closing the NC.
  6. File the closed NC in the SMS register, available for the next internal/external audit and for the Management Review.

Diagram: from Non-Conformity to CAPA closure

NC identifiedand recorded Root causeanalysis Corrective action(CAPA) planned Effectivenessverification NCclosed If the effectiveness verification fails, the NC remains open and the action is re-planned.

Practical Example

Example entry: "NC-2026-014 — classified minor under the Company’s procedure (a category not provided for by the ISM Code). Identified during the internal audit of 2026-03-12: mooring winch maintenance checklist not completed for 3 consecutive shifts. Root cause: no reminder built into the maintenance plan (PMS). Action: automatic reminder added to the PMS + briefing for the deck crew. Effectiveness verification: the following 3 shifts checked, all correctly completed. NC closed on 2026-04-02."

What Typically Goes Wrong

Several PSC detentions with an "ISM related deficiency" cause arise not from the single non-conformity itself, but from the absence of a documented, coherent NC/CAPA system: inspectors, finding no evidence of a functioning continuous improvement cycle, extend their doubt to the whole SMS.

Common Mistakes Mistake Library

MistakeConsequenceHow to avoid it
NC closed without verifying the effectiveness of the actionThe root cause remains and the NC recurs (repeat NC)Set the effectiveness-verification date when the action is recorded as implemented, and keep the NC open — or in a declared “pending effectiveness verification” state — until that verification. If the SMS uses provisional closure, it must be named as such and distinguished from final closure
Analysis limited to the symptom, not the root causeCorrective action ineffective over timeUse structured techniques (5 Whys, Ishikawa) for major NCs
Recurring 'minor' NCs on the same topic never aggregatedA systemic pattern goes unnoticed until it becomes a major NC or a PSC deficiencyPeriodically review the NC register to identify recurring topics

What the PSCO Checks

Port State Control Officers (PSCOs) and certification auditors verify that the NC register is up to date, that major NCs have generated a CAPA with documented effectiveness verification, and that the Management Review has actually analysed non-conformity trends.

Operational Tips

Preparation checklist

Educational checklist. This summary supports learning and preparation only. It does not replace the vessel’s approved procedures, manuals, statutory documents, company SMS, or applicable official requirements. Completing it demonstrates neither compliance nor readiness for an inspection: it shows that a list has been read, not that the ship is in order. Always verify the current documents carried on board.

FAQ

What is the difference between a minor NC and a major NC?
Only the major non-conformity is defined by the ISM Code (para. 1.1.10). The term “minor NC” does not appear in the Code: it is a category of practice, used by the implementation guidelines and by company and certification procedures to denote an isolated observation of non-compliance with a requirement, with no evidence of systemic breakdown. A major NC, by contrast, indicates a serious or systemic deficiency that poses a risk to the safety of people, the ship or the environment, and can lead to the certificate not being issued or being suspended. When speaking to an auditor the distinction is worth keeping in mind: the first is system language, the second is Convention language.
Who can raise a non-conformity?
Anyone within the management system: internal/external auditors, the Master, officers, crew, the DPA. What matters is that it is formally recorded in the Company's NC system.
Does a major NC stop the ship from sailing?
A major NC does not automatically amount to a ship detention, but it can lead to suspension of the Safety Management Certificate if not addressed; in a PSC context, a related deficiency can contribute to a detention.

Related Topics

Last substantive revision of this page: 29 August 2026 · page fingerprint f7e82ff746c4