Quality Management Demonstration

Agenda of Demonstration Basics of Quality Management - incoming inspection process with 3 different system solutions - QM basic data: Material Master, Inspection Plan - connections to other R/3 modules Demonstration in R/3 begins - Results Recording / Defects Recording - Usage Decision and Stock Posting - Posting Change Special Cases - Production Returns, Returns to Supplier, Scrapping - Exceptional inspection - Display documents, material movements, vendor data, purchase orders Discussion & Wrap-up

Incoming Inspection - 1. scenario Material master - QM view - inspection data Which material is to be inspected + Purchase Order => Automatic creation of inspection lots Inspection plan quantity to be inspected acceptance / rejection limits inspection stage ( tightened, normal, reduced) Scrap / Rework Main warehouse Blocked stock Goods Receipt /nmb01 INCOMING INSPECTION TO for inspected quantity lot number => quantity to be inspected Usage Decision and Stock Posting /nqa01 Posting Change /nlu04 inspected quantity, IM Quality Stock Returns to supplier Usage Decision data for Reports

Incoming Inspection - 2. scenario Material master - QM view - inspection data Which material is to be inspected + Purchase Order => Automatic creation of inspection lots Inspection plan quantity to be inspected acceptance / rejection limits inspection stage ( tightened, normal, reduced) defect codes ( inspection characteristics) Scrap / Rework Main warehouse Blocked stock Goods Receipt /nmb01 INCOMING INSPECTION TO for inspected quantity lot number => quantity to be inspected Results Recording /nqe01 Usage Decision and Stock Posting /nqa01 Posting Change /nlu04 inspected quantity, IM Quality Stock Returns to supplier Lot level information for Reports

Incoming Inspection - 3. scenario Material master - QM view - inspection data Which material is to be inspected + Purchase Order => Automatic creation of inspection lots Inspection plan quantity to be inspected acceptance / rejection limits inspection stage ( tightened, normal, reduced) Inspection characteristics Defect codes, defect locations, free text, etc. Scrap / Rework Main warehouse Blocked stock Goods Receipt /nmb01 INCOMING INSPECTION TO for inspected quantity lot number => quantity to be inspected Results Recording & Defects /nqe01 Usage Decision and Stock Posting /nqa01 Posting Change /nlu04 inspected quantity, IM Quality Stock Returns to supplier Defect level information for Reports

Defective Material from Production 1/2 process Quality data to MQR (Inspection results) Results entry to external database Reporting outside R/3 Mat.Doc Number Inspect Manual lot creation Results Recording Usage Decision Blocked stock Quality personal checks what to do, follow-up actions together with WM IM mvT 344 to Blocked Stock can be used OK Main warehouse ZRE1 to remove material out of specs out of specs return to supplier within specs, cannot be used within specs, cannot be used scrap / rework

Defective Material from Production 2/2 process Inspect Results Recording Quality stock personal checks what to do, follow-up actions together with WM Usage Decision can be used OK Main warehouse IM mvT 322 to Quality Stock out of specs out of specs return to supplier ZRE1 to remove material within specs, cannot be used within specs, cannot be used scrap / rework

Dynamic Modification Rule INSPECTION PLAN Dynamic Modification Rule Sampling Scheme Characteristics 1 Skip 2 Reduced 3 Normal 4 Tightened 5 Dummy Sampling Procedure Insp Lot Sample Acc Rej 280 20 0 1 1200 32 1 2 ...... ..... DC: Critical Major Minor Accumulation MC: Defects Stage Changes Current stage 3 OK inspection 10 Next Stage 2 Rejections 1 Next Stage 4 SAMPLING TYPE VALUATION MODE Defect codes DC MC Operations 0010 Incoming Inspection

Incoming Inspection and R/3 RESULS RECORDING with Inspection Characteristics With lot number One defect / item CLOSE characteristic Defects Recording provides more possibilities to collect and report QM information at Results Recording phase. Also defect level information available from QMIS. USAGE DECISION A = All accepted -> Unrestricted Use R0 = Partly accepted -> Unrestricted Use and Blocked Stock R1 = All rejected -> Blocked stock -> Return delivery to vendor Can be adjusted to local requirements. Codes are still considered to be global. POSTING CHANGE in WM (if used) ‘Releases the material from quality stock’

Special cases in QM MANUAL LOT CREATION Lot origin 01 for incoming, others 07 Results recording etc. as usually No stock postings related to the lot LOT CREATION WITH MOVEMENT TYPE IM MvT 322 & 922 from unrestricted to quality Separate inspection plans Results recording etc. as usually depending on the inspection plan LOT CANCELLATION Usage decision and SAVE Then CHANGE and CANCEL

Special Cases in QM / II Returns to Vendor Returns with Purchase Order - IM Mvt 122 - price from purchase order - reclamation handling Returns without Purchase Order - IM Mvt 506, only from blocked stock - moving average price

Special cases QM / III Scrapping Scrapping from unrestricted use - IM Mvt 551 - cost centre information required Scrapping from blocked stock - IM Mvt 555 Modules with phantom code are not scrapped in R/3!

Good to know Display vendor data Logistics > Materials Management > Purchasing Master Data > Vendor > Purchasing > Display Display Purchase Order Information a) Purchase Order > Display b) Outline agreement > Contract > Display c) Outline agreement > Scheduling agreement > Display