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I. Table of Contents
1.0 SAP QM OVERVIEW .................................................................................................................. 3
1.1 NECESSARY OF QUALITY .................................................................................................3
1.2 FITMENT ON SUPPLY CHAIN .............................................................................................3
1.3 BRIEF OVERVIEW ............................................................................................................4
2.0 STAGES IN QM .......................................................................................................................... 4
2.1 QM IN PROCUREMENT. ...................................................................................................4
2.2 QM IN INCOMING ............................................................................................................6
2.3 QM IN PRODUCTION .......................................................................................................6
2.4 QM IN OUT-GOING ..........................................................................................................6
2.5 QM IN SD .....................................................................................................................7
3.0 QM PLANNING........................................................................................................................... 7
3.1 MATERIAL CHARACTERISTICS ..........................................................................................7
3.2 INSPECTION PLAN ...........................................................................................................7
3.3 REFERENCE OPERATION SET ...........................................................................................8
3.4 W ITHOUT INSPECTION PLAN .............................................................................................8
4.0 QM MASTER DATA ................................................................................................................... 8
4.1 CATALOGS, CODE GROUPS, CODES, SELECTED SETS .......................................................8
4.2 CLASS & CLASS CHARACTERISTICS. ................................................................................9
4.3 BATCH CLASSES. ...........................................................................................................9
4.4 INSPECTION METHODS. ...................................................................................................9
4.5 MASTER INSPECTION CHARACTERISTICS. .........................................................................9
4.6 DYNAMIC MODIFICATION RULES......................................................................................10
4.7 SAMPLING SCHEMES.....................................................................................................11
4.8 SAMPLING PROCEDURES...............................................................................................11
4.9 W ORK CENTERS...........................................................................................................12
4.10 INSPECTION PLANS. ......................................................................................................12
4.11 QUALITY CERTIFICATE PROFILES....................................................................................12
4.12 CUSTOMER INFO RECORD.............................................................................................12
4.13 MATERIAL MASTER CLASSIFICATION VIEW. .....................................................................12
5.0 QUALITY INSPECTION............................................................................................................ 12
5.1 INSPECTION LOT CREATION- ..........................................................................................12
5.2 RESULTS RECORDING ...................................................................................................13
5.3 DEFECTS RECORDING ...................................................................................................13
5.4 INSPECTION LOT COMPLETION .......................................................................................13
5.1.1 USAGE DECISION-.....................................................................................................13
5.1.2 STOCK POSTING-......................................................................................................14
5.1.3 QUALITY SCORE .......................................................................................................14
5.1.4 FOLLOW UP ACTION ..................................................................................................14
5.1.5 INPUT TO VENDOR EVALUATION..................................................................................15
6.0 QUALITY NOTIFICATION ........................................................................................................ 15
7.0 QUALITY CONTROL- NOT COMPLETE .................................................................................. 16
8.0 TEST EQUIPMENT MANAGEMENT- NOT COMPLETE........................................................... 16
9.0 QUALITY CONTROL- NOT COMPLETE .................................................................................. 16
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10.0 MULTIPLE INSPECTIONS- NOT COMPLETE.......................................................................... 16

11.0 STABILITY STUDY- NOT COMPLETE ..................................................................................... 16
12.0 ARCHIVING- NOT COMPLETE ................................................................................................ 16
13.0 AUDIT....................................................................................................................................... 16
14.0 PP OBJECTS ........................................................................................................................... 16
15.0 EXECUTION STEPS................................................................................................................. 17
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1.0 SAP QM Overview

1.1 Necessary of quality
Quality is all about meeting the customer satisfactions/expectations.
Not more or not less
Org established SCM
Q from vendor to Customer
Transportation, storage or process
Organization being owner for SCM has to set up quality in every stage.

SRM OEM CRM

QM in proc Incoming
Source
insp +
Audit

Quality management plays an important role in present competitive world. As there are
many players in each business the companies are forced to look for better servicing the
customers. Hence monopoly is no more in this world.
Hence companies should look for value addition to products or service which may not be
directly measured with money but like delighters, extra features, reducing lead time to
delivery, quality, service and sincerity.

Hence if you look at above points not all are related to quality of products but there is
something extra which customers are expecting for every Rs he spends. Hence
companies should go into organizational wide improvement, betterment in everything
which they do or think is what required in present world.

1.2 Fitment on Supply chain

Supply chain spreads from Supplier to OEM to distributor to retail till product/services
reaches to customer
Improving quality across supply chain should be main objectives of OEM.
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Supplier- They provide OEM, the raw material/components required to manufacture

products. They will be many suppliers supplying multiple supplies. Hence quality of their
supplies will be an important factor for our quality product.
There are two quality levels at vendors. One is that which defects occurring within their
production and filtered. This will not reach the OEM. The other is one which is unnoticed
and reaches OEM. Some of these qualities may be noticed during incoming inspection
and some are not.

OEM- Here conversion of components are converted to finished product and delivered to
distribution centers.
Distribution centers- It receives product from OEM and transfers to Retailer or
Customers
Customers- They are the end receiver of products or service
This is whole chain for supply chain management.

1.3 Brief overview

Here final beneficiary of product is end customer and OEM is who should be driving the
whole effort to achieve the purpose.
OEM should be concerned about quality across chain because rejections which are
happening at Vendor may look like it is not his problem. But in long run vendor has to
bear the cost of rejection and finally he looks to transfer the burden to OEM through
reduced quality or demanding more price. Hence anywhere in supply chain quality being
affected will directly affect OEM. The same is true at down the supply chain also.
Hence quality measures taken at vendor also should be monitored by OEM

Hence OEM will need a central tool which monitors quality from END-to-End is most
important. And SAP QM offers a solution for the same.

2.0 Stages in QM
2.1 QM in procurement.
This is the application which controls the quality level of Suppliers. Different evaluation
could be set to vendors like Price, Quality, delivery & services in Vendor evaluation in
Tcode ME61
.
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Using this application following objectives could to achieved

Manage quality-related information for materials, vendors, and manufacturers in quality

info records Tcode ME61

Release or block vendors and manufacturers at Plant level for all material or for specific
material
Monitor the QM systems of vendors and manufacturers

Evaluate vendors on the basis of quality

Certify vendors or manufacturers that have QM systems implemented, to reduce the

inspection requirement

Request that quality certificates be submitted with the delivered goods and monitor the
receipt of these certificates

source inspections

goods receipt inspections

Block the payment of invoices until the goods have been inspected and accepted

Control is set mainly in QM Control key and assigned in Material master

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Source inspection could also be generated with manual or by Batch job for particular vendor
& material Tcode - QI07

2.2 QM in incoming

2.3 QM in production

2.4 QM in out-going

For all three above could be activated through inspection type defining in Material
master
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2.5 QM in SD

3.0QM Planning
Source for inspection could be planned by one of Material characteristics, Inspection
plan, reference operation set or might be w/o inspection plan

3.1 Material Characteristics

Define material characteristics through Tcode QS61 for the material to be tested. MIC
could be selected from multiple plants.

3.2 Inspection plan

Define Inspection plan for material & plant through Tcode QP01

Selection of specific one of above is decided through inspection type configuration,

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You could achieve many controls through one of above checks.

3.3 Reference operation set

3.4 Without inspection plan

4.0QM Master Data

With SAP QM, you need to setup Master data required for successful execution of all
functionality of QM

4.1 Catalogs, Code Groups, Codes, Selected Sets

Represent qualitative attributes that can be inspected and evaluated
Group of Codes forms the code group and is assigned in catalogue

Selected sets are created with Tcode QS51 and will contain codes from one or more
code groups. Define valuation as Accepted or rejected. Contains Q-score which will
become basis for vendor evaluation
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4.2 Class & Class Characteristics.

Define the class, class characteristics through Tcode Cl02 and CT04 resp, which will be
basis for the measure of product

4.3 Batch Classes.

When material has to be classified in a batch create class with class type 023
Batch Search Strategies.

4.4 Inspection methods.

It defines how samples should be inspected. It contains instructions required to test
specific MIC

4.5 Master Inspection Characteristics.

It is object which is basis for verifying quality of product. It could be qualitative or
quantitative. You could assign inspection method, characteristics here. It is used in
Inspection plan, Material characteristics and in certification profile. Tcode-QS21
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4.6 Dynamic modification rules.

It is main statistical quality tool. Sample frequency could be changed dynamically by the
outcome of previous results. Create with Tcode QDR1
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4.7 Sampling schemes.

A table containing list of sampling size based on lot size QDP1

4.8 Sampling procedures.

It defines how to be sampling is carried out. Sampling type decides if sample should be
on the basis of Schema or not. TcodeQDV1
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4.9 Work centers.

. It is a SAP Object to assign labour & cost to direct operation to testing CRQ1

4.10 Inspection plans.

. It is basis for testing the lot. It contains MIC and plan is assigned to Material master. Lot
is created when order is released or during Goods movement. And lots uses Inspection
plan to source for characteristics. It links to most of QM master data

4.11 Quality Certificate profiles.

NA

4.12 Customer Info Record.

NA

4.13 Material Master Classification View.

. Material Master QM View.
. Tcode MM02

4.14 Vendor info record

5.0 Quality Inspection

5.1 Inspection lot creation-
Lot is created either by Goods movement or during production order release. Lot could
also be created at vendor source through work list. It is achieved through assigning one
of following inspection type in Material master. Tcode QA01. Manually lot can be created
by assigning type 89
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5.2 Results recording

Here result of inspection is recorder through Tcode QE01

5.3 Defects recording

Here record defects for the inspection lot Tcode QF11. Automatic defect recording could
be achieved by activation defect recording in MIC and defining defect code

5.4 Inspection lot completion

5.1.1 Usage decision-

Once inspection is complete decision could be made for usage for each of operation lot.
It's very important here for incoming component. Here you can check that you have
received vendor certificate before UD
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5.1.2 Stock posting-

Post the stock as relevant as per decision and result of inspection

5.1.3 Quality score

It could be derived from UD, lot or characteristics. It could be derived based on
inspection type automatically where quality score procedure is defined in inspection type
or through manually.

5.1.4 Follow up action

Automatically could be updated net to UD in lot through data maintained in selected set
for UD of catalog type 03. Manually could be updated during UD
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5.1.5 Input to Vendor evaluation

Above score will be basis for vendor evaluation and the priority for sourcing out of set of
vendors for component supply
The main criterion quality contains the automatically valuated subcriteria - goods receipt,
audit and complaints
Tcode ME61

6.0Quality Notification
It is used for recording, monitoring & analyzing of defects/problems. Problems could be
related to raw material/ product / or internal. Hence this could be processed at three
areas as,
Customer complaints- NA
Internal- NA
Vendor defects- Created with respect to individual purchase order,

Notification contains following sections,

Header - General data related to Notification, status & description. Task and activity
types could be maintained at header level based on config.
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Item level- you can store individual items/defect types. It also contains, tasks to be
carried out on individual item/defect, cause of the defect and activity- carried out on each
defect.
For each of Item, Activity, Causes etc a code has to be assigned in notification type for
enabling specific code group/code.
You can also assign partner determination to enable persons resp for notification
Material supplied by vendor could be returned to vendor at two stage.
During GR, you find defects and you create notificastion,
Decide if they have to be inspected, if not move them to blocked stock
if to be inspected, then move them to inspection stock,
Inspect, and as a result of inspection if you find them defective and want to return
to vendor, post them to blocked stock.
Else move them for scrap stock

To settle the cost of rework, you can create QM order to process the rework. Through
notification you have option to create QM order (or Tcode KKF1)

7.0 Quality control- Not complete

8.0 Test Equipment Management- Not complete

9.0 Quality Control- Not complete

10.0 Multiple inspections- Not complete

11.0 Stability Study- Not complete

12.0 Archiving- Not complete

13.0 Audit
Create Audit plan
Create question list
Create Corrective actions
Create Audit
Assign q llist, action and audit to audit plan

14.0 PP Objects
Mainly captures in-process inspection
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2. PP Data
objects.ppt

15.0 Execution steps

Execution steps

3. Business Process
Steps.ppt