;With TestData (Product,Parts,Status) AS (
	SELECT 'Laptop1','mouse','OK' UNION ALL
	SELECT 'Laptop1','screen','OK' UNION ALL
	SELECT 'Laptop1','button','PASS' UNION ALL

	SELECT 'Laptop2','mouse','OK' UNION ALL
	SELECT 'Laptop2','screen','OK' UNION ALL
	SELECT 'Laptop2','button','NOT OK'  UNION ALL

	SELECT 'Laptop3','button','OK'  UNION ALL
	SELECT 'Laptop3','screen','PASS'  UNION ALL
	SELECT 'Laptop3','mouse','PASS' UNION ALL 

	SELECT 'Laptop4','mouse','PASS' UNION ALL 

	SELECT 'Laptop5','button','PASS'  UNION ALL
	SELECT 'Laptop5','screen','PASS'  UNION ALL
	SELECT 'Laptop5','mouse','PASS'   ),
	
C AS (SELECT *,ROW_NUMBER() OVER(PARTITION BY Status ORDER BY Product) AS Rn FROM TestData),
C1 AS (SELECT *,MIN(Rn)OVER(PARTITION BY Status) MinRn FROM C)
SELECT Product, Status, Rn, MinRn 
FROM C1 --WHERE Rn=MinRn
ORDER BY Product ASC, Status

declare @TestStatus as table
(
TestStatusDescription nvarchar(50),
TestResult int
)

insert into @testStatus (TestStatusDescription,TestResult) values ('OK',1)
insert into @testStatus (TestStatusDescription,TestResult) values ('Pass',1)
insert into @testStatus (TestStatusDescription,TestResult) values ('Fail',0)
insert into @testStatus (TestStatusDescription,TestResult) values ('Not OK',0)
... 

SELECT
    Product,
    MIN(CASE WHEN Status = 'NOT OK' THEN 'NOT OK' ELSE 'OK' END) AS [Overall Status]
FROM dbo.tablename
GROUP BY
    Product