Yellow Tag System
A Yellow Tag System is a visual status-control method in manufacturing and inventory that marks material, equipment, or WIP as conditional, hold, caution, or nonconforming but not yet scrap. Its operational purpose is preventing uncontrolled use while a disposition decision is pending. It also flags restricted-use assets not fully approved for normal operation.
On the shop floor and warehouse, yellow tags appear at receiving, in-process inspection, or material review when an item fails a check but is not immediately rejected. Each tag records the movement or order number, part number, inspector name, defect reason, date, and disposition status so downstream users understand why the material is on hold. Yellow-tagged units are routed to MRB, rework, quarantine, or engineering review rather than back to the line, preventing accidental consumption and creating traceability. In the warehouse, tagging separates received-but-not-released inventory, stopping put-away until inspection clears the lot. Raw-material lots with documentation gaps, dimension variance, labeling mismatches, heat uncertainty, or pending COA review are isolated without immediate scrap disposition. The system creates a visible physical control point tied to the decision workflow: hold, rework, downgrade, return-to-vendor, or release.
Is a yellow-tagged item scrap?
Not by default. In shop-floor use, yellow means hold pending disposition or restricted use, not final scrap. Final status depends on MRB or engineering decision.
Where should yellow-tagged material be stored?
In a physically segregated quarantine or hold location with controlled access, separate from unrestricted inventory, so it cannot be accidentally issued to production.
What data should the tag contain for traceability?
Minimum practical fields are part number, lot/heat/batch, quantity, defect code, date/time, inspector, location, and disposition authority. The IJIRT plant example notes movement number, operator name, reason for failure, and unit details on the yellow tag.