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S/4HANA QM Overview - Coggle Diagram

- - - - Technical Delivery term docs are used to pass material-related info to your supplier. For example, you can expect that the supplier supplies materials under monitored temperature conditions
        
        If you require technical delivery terms or quality assurance documents, the quality planner assigns a QM control key in the quality management view of the material master. Depending on the required document, the system behaves as follows:
        
        If you require technical delivery terms, the system executes a consistency check when you save the material master. If no attached technical delivery terms are in the Document Data tab of the material master record, the system raises a message.
      - Quality Assurance docs are used document info about the procurement of a specific material from a supplier from a supplier. For example, you can document that you skipped the incoming quality inspection because a supplier established a QM system.
        
        f you require technical delivery terms or quality assurance documents, the quality planner assigns a QM control key in the quality management view of the material master. Depending on the required document, the system behaves as follows:
        
        If the QM control key requires a quality assurance agreement, the system executes a consistency check when you save the quality info record for procurement.
    - - This is when you inspect goods at that supplier's premises before they are transported to your warehouse.
        
        During procurement, you can plan the inspections of goods at a different point of time. In one case, the quality technician must execute the inspection of a goods receipt when the goods arrive in your warehouse. In this case, the inspection start date corresponds to the date when you post the goods receipt. That is the classical case. In the other case, the quality inspection must already be done at the supplier´s premises before the goods transport to your warehouse. This approach is called source inspection. In this case, the inspection must be scheduled before the goods delivery date. Here are some business reasons for using a source inspection: The transportation costs are high. You want to ensure that the good is in accordance with your quality standards or agreements with the supplier - for example, in a make-to-order production.
        
        Process in SAP S/4HANA
        
        In the case of a source inspection, the SAP system helps you calculate the right inspection start date. To define the inspection start date, it subtracts an inspection lead time from the expected delivery date. How does that work? From a technical perspective, no inspection lot for the source inspection is created when you post the goods receipt. Instead, the system checks the estimated delivery date in the purchase order and the inspection lead time maintained in the quality info record (procurement). It creates an inspection lot for goods receipt in which the inspection start date corresponds to the expected delivery date minus the inspection lead time. Then, before the goods receipt posts, you can execute the quality inspection results, record inspection results, or defects in the respective inspection lot.
        Set the indicator Source inspection instead of GR inspection in the quality info record (procurement). This avoids the system creating another inspection lot after transporting the goods to your premise and posting the goods receipt for this purchase order. In addition, consider that, in this case, quality problems during transport cannot be detected. You do not execute a classical goods receipt inspection. If you want to create another inspection lot when posting the goods receipt, do not enable this indicator in the quality info record (procurement).
  - - - Quality Inspection Stock. The system posts the received goods to quality inspection stock. Quantities in quality inspection stock cannot be used by other processes until the quality inspection completes. The Quality Engineer uses the usage decision to posts the quality inspection stock either to unrestricted use or blocked stock depending on the outcome.
        
        Certificate requirement. If the supplier must provide quality certificates together for a purchased material, the system can ensure that you receive the required documents. If the supplier doesn't provide them the system blocks further processes e.g., usage decision or stock transfer.
        
        Complaints. If the quality technician detects any deviations during goods receipt inspection, they can create a supplier complaint quality notification. The defect can be used to manage defect analysis and return of the defect quantities back to the supplier.
  - - - Create a purchase order
      - Post the goods receipt
      - Review the created inspection lot
      - Execute quality inspection
      - Execute usage decision
  - - - Post the goods receipt
      - Review the created inspection lot
      - Execute usage decision
  - - - Use Case
        
        If an incoming certificate is required, you have the following options for purchase order items:
        
        You can record the receipt of a quality certificate after the purchase order is created. From a business perspective, you use this process variant if you receive quality certificates from your supplier independent of the delivery documents, for example, by e-mail.
        
        You can confirm the receipt of a quality certificate when you post the goods receipt in the system. From a business perspective, you use this process variant if you receive quality certificates with the delivery documents and want to post goods receipt and certificate receipt, respectively, in one transaction.
        
        Irrespective of the selected process variant, the system indicates by a status in the inspection lot whether or not the receipt of the incoming certificate is confirmed. You can always record inspection results or capture defects. When executing a usage decision, the system behaves as follows:
        
        If the certificate receipt is not confirmed, you cannot make a usage decision and the system issues an error message.
        
        If the certificate receipt was confirmed, the quality engineer can post the usage decision for the inspection lot.
  - - - Either your procurement or quality department defines that restrictions be applied when you purchase a material from a supplier. As quality planner, you want to document the related information in SAP S/4HANA:
        
        When can you order the material from the supplier at the latest?
        
        How much material can you order from the supplier?
        
        Is a process step blocked for quality reasons, for example, for creating a purchase order or a purchase requisition?
        
        Before shipment, will there be a goods receipt inspection or an inspection at the vendor's site?
        
        Are there any further quality-related agreements with the supplier that you must consider?
      - S/4HANA Process
        
        You document such information related to the combination of a material and a supplier in a quality information record (quality info record). It controls how the procurement department can further process the material. You create a quality info record whenever you require a quality assurance agreement or a supplier release for a material.
        In the quality info record procurement, you store the following quality-based control information for the combination of supplier and material:
        Release date:
        This date corresponds to the latest date when you can order the material for the plant from the supplier.
        Release quantity:
        You can order a maximum X of this material from the supplier. If there are multiple purchase orders, the system calculates the total of all purchased quantities.
        Blocking function:
        The selected function, for example, the creation of a purchase order or quotation, is blocked for quality reasons. If the purchaser creates a purchase order and this function is blocked, they receive a respective message
        Inspection control:
        On this tab, you can, for example, setup source inspections
        Quality agreement:
        On this tab, you can link documents (quality agreements) to this info record. You can use this to document quality-relevant agreements negotiated between you and your supplier with respect to this material. For example, you document that the supplier implements a quality system and is successfully audited so that you can skip goods receipt inspections in the future.
        Some control information stored in the quality info record is only relevant if the material master is set up accordingly. For example, to make quality assurance agreements mandatory and to release a supplier for a material, you must assign a respective control key in the quality management view of the material master.
        
        Change a quality info record for procurement
        
        Create a purchase order
  - - - Process in SAP S/4HANA
        
        Create a supplier complaint or process defect from a goods receipt inspection
        When you realize that the supplier delivered a damaged product (either when executing a goods receipt inspection or later in the warehouse), you create a quality notification. In the notifications details, you record all details at hand - for example: Purchase order item, Material document for goods receipt, vendor, Problem description in free-text and coded form, Pictures documenting the defect, Notification responsible.
        
        Execute and document immediate actions. An immediate action is any action that ensures that the damaged product does not cause any further issues. For example, you want to ensure that follow-up processes cannot use the damaged product (follow-up processes such as consumption of a raw material in production). Then, you initiate a containment action. You transfer the damaged product quantities from unrestricted-use stock to blocked stock. If you need additional analysis, you can also transfer the product from unrestricted-use to quality inspection stock and create an additional inspection lot for further inspection. In an immediate action, you document the steps you've taken in free-text and coded form. You document them together with date and time information.
        
        Define and trigger corrective actions. A corrective action is any action ensuring the defect is corrected. For example, you contact the supplier and ask for additional information that you need for your error analysis, such as information about the delivery and the product. The product can be beyond repair and, because of high transportation costs, returning it to the supplier is not feasible. In this case, you can scrap the defect quantity. Alternatively, you and the supplier can also decide that you want to return the defective product. Then, you create a return delivery. In parallel to logistical tasks, you can also trigger a root-cause analysis - for example, following the 8D or CAPA methodology. In a corrective action, you document the steps and all communication with the supplier. A person other than the notification responsible usually executes the corrective action. As a result, you assign an action processor and status. The action processor can be informed through e-mail. You use the status to track the progress of the action.
        
        Execute corrective actions. After the action processor received a notification about the action, they execute the action as requested, give feedback, and document the outcome. To inform the notification responsible that they executed the action, they set a respective status. Optionally, the notification responsible can review the feedback given by the action processor and define, if required, additional corrective actions until the problem resolves. In the figure, you see two examples of corrective actions: book goods receipt for the replacement delivery when it arrives at your warehouse, and book goods issue for the return delivery.
        
        Close complaint. When all corrective actions execute and your team identifies the root cause, you document defect resolution and root cause in the quality notification. To track if you or the supplier caused the defect, you can document the origin of complaint (internal versus external). This is important for various activities, for example, for vendor evaluation if you want to evaluate the number of damaged products a supplier delivers.
- - - - System checks to see of the raw materials required for production are available.
      - Inspection time must be added to the goods receipt processing time which is then considered in the MRP Run
      - In MRP List, the MRP Controller can display the planned goods movement from the inspection stock.
    - - Before production can start, raw materials must be inspected.
      - Inspections during production - In-process (03) inspection lot is generated automatically when a production/process order is released in a discrete/process manufacturing type.
      - Defect Recording - QM Notifications. You can document any problems/issues during production results recording. QM Notifications can be created automatically if specification limits are exceeded. Or manually create a production defect with reference to the production operation they are currently executing.
      - Posting a goods receipt from a production/process order can trigger the creation of a stock-relevant inspection lot. If quality standards are not met you can trigger a rework process.
  - - - The purchasing department must procure raw materials if the result of the MRP Run is a component shortage. But before you can use raw materials in Production, they must be inspected.
      - Goods Receipt Inspections - triggered by posting a goods receipt of a purchase order.
      - Release of vendor and supplier evaluations, eg, in the event that Material A needs to be purchased from Supplier B instead of Supplier A - inspections, supplier complaints, and audit results might be used. If deviations are detected during goods receipt inspections, the quality technician records the deviation as a Quality Notification. The notification can be used to manage the return-to-supplier process - from documenting immediate containment over deviation investigations to communication with the supplier until the purchased items are returned to the supplier for replacement
      - Processing of goods receipt certificates - used when deliveries are sent with certificates.
    - - Stock transfer with a company e.g., a goods movement between plants or storage locations, the QM Technician can use QM functionalities to inspect the goods to ensure that the movement of goods has not affected teh product quality.
      - Recurring inspections for batches - monitor materials automatically on the basis of inspection intervals and best before date of the batch. Before the best before date has been reached, the system automatically creates an inspection lot allowing you to inspect whether the batch can still be used.
  - - - Before goods can be delivered to customers, characteristics can be inspected. When creating a delivery, the system automatically creates an inspection lot for the delivery items which must be inspected. Quality Technician posts results, and the Quality Engineer performs the usage decision, goods can be shipped to the customer.
      - If required, the QM Planner can execute customer specific inspections by defining respective inspection plans. Again, the QM Planner can bypass quality inspection for material-customer combination in a respective info record.
      - For certain materials, customers might require quality certificates (Outbound Quality Certificates) to showcase that goods were manufactured according to standards. You can even print inspection results on the certificates. You can create QA certificates automatically and also attach other shipping documents during delivery.
  - - - Quality Engineer in co-operation with the Sales department can finally manage customer complaints/ product return requests.
      - A customer informs you about a defective product they received. Through a QM Notification, you can record sales order number, delivery number, material, batch, quantity, etc. You trigger an internal investigation looking for similar problems in materials that are still in stock to prevent them from being delivered.
      - As soon as goods are returned, you can inspect, document and repair defects. You can further decide, if the returned goods can be moved to unrestricted use stock so that it can be sold to another customer.
- - - - Lifecycle of an inspection lot
        
        Inspection Lot trigger > Inspection Plan Assignment & sample Determination > Result Recording > Defect Recording > Usage Decision
        
        Inspection Lot Triggers - Goods Receipt, Goods Receipt, Stock Transfer, Goods Issue, release of orders, production orders, process orders, maintenance orders
      - Lifecycle of Quality Notifications & Defects.
        
        Notification or trigger > Problem Description > Execution of immediate actions > Execution of Corrective & Preventive Actions > Notification or Defect Closure.
        
        Notification or Defect Triggers - Supplier Complaints, interval deviations, warehouse defects, customer complaints.
        The consultant configures the layout of each notification or defect type, such that business info can be maintained.
        
        Problem description, you can reference info such as purchase orders, material document, business partner, issue description including images.
        
        Execution of immediate actions - containment action moving quantities from unrestricted use stock to quality inspection stock to prevent respective quantities from further usage.
        
        Having contained the issue, corrective and preventive measures can be done e.g., Corrective Actions [repairing a damaged component, co-ordinating a replacement delivery with the supplier]. Preventive Actions [train personnel to handle materials with more care when unloading a truck to prevent stratches.
        
        After all things considered, the Quality Engineer closes the Quality Notitication.
- - - - Example of a planned process in production: During production planning, the quality planner adds inspection characteristics to the existing recipes and routings of the manufactured product, "bike". In addition, they determine that 20% of the material must be inspected by assigning a sampling procedure to the characteristic. If an in-process inspection type is active in the material master, the system creates an inspection lot. During the inspection, the quality technician enters the results in the system. The system compares the measured values with the defined requirements and signalizes deviations.
        Example of a planned process in production: During production planning, the quality planner adds inspection characteristics to the existing recipes and routings of the manufactured product, "bike". In addition, they determine that 20% of the material must be inspected by assigning a sampling procedure to the characteristic. If an in-process inspection type is active in the material master, the system creates an inspection lot. During the inspection, the quality technician enters the results in the system. The system compares the measured values with the defined requirements and signalizes deviations.