Quality Management in Discrete Manufacturing (227)

1. Quality Management in Discrete Manufacturing (227) SAP Best Practices

2. Purpose, Benefits, and Key Process Steps • Purpose • This scenario deals with quality inspection activities during the production process. Quality activities are required both when a product is manufactured in-house and when the production involves external processing where parts of the production process are done by a subcontractor. • Benefits • Two sub-scenarios to cover both goods acceptance and goods rejection or acceptance and rejection of the external processing respectively. • Quality Notification to track quality issues, and trigger further actions, such as re-work or scrapping • Key Process Steps • QM for goods receipt of production order • QM with In-process control • QM for goods receipt of external processing • Acceptance and rejection of goods/ external processing work are both covered

3. Required SAP Applications and Company Roles • Required • Enhancement package 5 for SAP ERP 6.0 • Company Roles • Production Planner • Warehouse Clerk • Quality Specialist

4. Detailed Process Description • Quality Management in Discrete Manufacturing • Quality Management for Production Order: • The goods receipt for an in-house production order is posted • The material is posted to the QM stock and an inspection lot is created • The Quality Specialist records the QM results and makes a usage decision • If the goods are accepted they are posted to the unrestricted use stock • If the goods are rejected a quality notification is created and the goods are posted to the blocked stock • The process ends with the completion of the quality notification

5. Detailed Process Description • Quality Management in Discrete Manufacturing • Quality Management for External Processing: • After carrying out the QM-relevant activity, a quality check (in-process) control is done • The Quality Specialist records the QM results and makes a usage decision • If the internal work is accepted the rest of the production process can continue • If the internal work is rejected a quality notification is created and processing of the rest of the production order stops until the quality problem has been solved • Part of the production order require the processing of the product by an external subcontractor • After processing is finished, a goods receipt is posted and an inspection lot for external processing is created • The Quality Specialist records the QM results and makes a usage decision • If the external processing work is accepted the rest of the production process can continue • If the external processing work is rejected a quality notification is created and processing of the rest of the production order stops until the quality problem has been solved • The process ends with the completion of the quality notification

6. Process Flow Diagram Quality Management (QM) in Discrete Manufacturing (1 of 2) Event Production Order Warehouse Clerk Post goods receipt Production Order Quality Specialist Quality inspection Record usage decisions Accept produced goods Stock transfer into unrestriced use Reject produced goods Quality Notification Creation Stock transfer into blocked stock Quality Notification Completion

7. Process Flow Diagram Quality Management (QM) in Discrete Manufacturing (2 of 2) Event Production Order Warehouse Clerk Post goods receipt Subcontracting PO Quality Specialist Accept External Processing Quality inspection Record usage decisions Accept in-house production Quality inspection Record usage decisions Reject in-house production Reject External Processing Quality Notification Creation Quality Notification Creation Quality Notification Completion Quality Notification Completion Production Planner Make-to-Stock Production – Discrete Industry (145) External Processing (150)

8. Diagram Connection Legend <Function> Hardcopy / Document External to SAP Financial Actuals Business Activity / Event Budget Planning Unit Process Manual Process Process Reference Existing Version / Data Sub-Process Reference Process Decision System Pass/Fail Decision