Chapter 8

Quality Control

Quality Control

Fig. 8-1: Quality Control Features

Quality control consists of a number of preventative, monitoring, and corrective
activities. These activities are based on the comparison of the quality planning
specifications and the evaluations obtained from quality inspections and quality
notifications. This chapter highlights some of the individual functions supported
by the QM application component.

Dynamic Modification of the Inspection Scope

Dynamic modification controls the inspection scope (based on inspection charac- Quality Goal
teristics and sample sizes) for a series of inspection lots, to achieve a predeter-
mined quality goal. Common technical rules, such as the sampling systems of ISO
2859 and ISO 3951, follow this principle. The R/3 System contains a complete set
of sampling tables for these standards.
To reach the quality goal, the R/3 System determines the inspection stages for the Quality Level
next inspection lot after each usage decision. It uses the dynamic modification Dynamic Modification Rule
rule in the task list to make these determinations and then writes them to a quality
level data record. The R/3 System takes into account the quality level when deter-
mining the inspection scope and defining the inspection specifications in the in-
spection instruction. The inspection lots are summarized in a quality level accord-
ing to certain criteria. For example, inspection lots in production are summarized Dynamic Modification
according to material, plant, and task list, while inspection lots for goods receipt Criteria
inspections are summarized according to material, vendor, manufacturer, plant,
and task list.

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Fig. 8-2: Dynamic Modification of the Inspection scope

Figure 8-2 shows how the master data and transaction data interact during dy-
namic modification of the inspection scope. The main features of this interaction
are as follows:
q Dynamic modification rules apply uniformly for all inspection characteristics
of a task list, individually for certain inspection characteristics, or generally
for the inspection type that is active for the material.
q Tightening or reducing of the inspection scope based on the results of a pre-
ceding inspection is controlled either by the valuation of the inspection lot, or
by the valuations of the individual inspection characteristics. These alterna-
tives are known as dynamic modification by lot or dynamic modification by
characteristic.
q The inspection scope of a characteristic can be dynamically modified, depend-
ing on the inspection stage of a leading characteristic
q When several lots of the same material are to be inspected at the same time,
the system can dynamically modify the inspection scope in advance by as-
suming that all open characteristics are accepted.
Optimization To ensure that you reach the quality goal and optimize quality costs, you must
decide whether to perform a 100% inspection, or whether to skip the lot. These
decisions depend on the quality level run and the relationship of inspection costs
to nonconformity costs. The R/3 System allows you to do both - perform a 100%
inspection or skip a lot.

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Which dynamic modification levels does the R3 System recognize?

It recognizes:
q Dynamic modification by lot
q Dynamic modification by characteristic

Statistical Process Control (SPC)

Statistical process control (SPC) allows you to monitor, regulate, and improve the
quality of processes.
Control Chart
The most important tool for statistical process control is the quality control chart, Application
a graphic tool for documenting, analyzing, and controlling processes. You can use
this chart both in an inspection during production, and in the procurement or
shipping process. For example, you can use it in a series of goods receipt inspec-
tions for a scheduling agreement.
You choose one or more control variables for the relevant characteristic, deter-
mine their values at regular intervals by taking samples from the process, and
enter them in chronological order on the chart.
The QM application component provides the following types of control charts for Control Chart Types
inspection characteristics with a normal distribution:
q Mean value chart with tolerance consideration (acceptance chart)
q Mean value chart without tolerance consideration (Shewhart chart)
q Standard deviation chart (Shewhart chart)
q Chart for qualitative characteristics (np-, p-, and c-chart)
You can combine the mean value and standard deviation of a characteristic on one
control chart with two tracks.
In addition to the control variable, each track contains control limits. If these lim-
its are exceeded, you must intervene. For some control chart types, you can prede-
fine warning limits or a center line. The limits are determined using statistical
methods from the current process data, or from the results of an initial run, or you
can enter them manually on the basis of existing data. You can use various algo-
rithms for the calculation that are based on different philosophies:
q The acceptance charts are based on predefined tolerances and determine the
share of scrap in the process. Using these charts, if a long-term reduction in
the process variance is achieved, the limits are extended.
q With a Shewhart chart, in this case the limits become tighter. These charts only
take internal process parameters into account and not external tolerance spec-
ifications. In a continuously recurring statistical test, the hypothesis is tested
that the established, controlled status of the process has not changed.

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Updating As an inspection planner, you determine whether a quality control chart is to be

maintained for a given inspection characteristic. The chart runs may extend over
several inspection lots or production orders. The R/3 System creates the quality
control charts when preparing the quality inspection and updates them when you
record results. You can display the charts in results recording and, with the appro-
priate authorization, can calculate the intervention and warning limits if these are
required. Alternatively, you can call up the charts using the control chart list. If
required, you can interchange the algorithms.
Intervention You can evaluate the inspection results using the quality control chart. The stand-
ard R/3 System contains a valuation rule that rejects a sample as soon as an action
limit is exceeded. In this case, the SAP Business Workflow component automati-
cally notifies the department responsible of the appropriate steps, as long as the
defect class has been set appropriately in the defect code of the task list character-
istic.

Fig. 8-3: Illustration of an x-bar-s Control Chart

Process Capability Indices For inspection characteristics with a single or double-sided tolerance range, you
can display the process capability indices cp and cpk on the mean value chart in a
secondary window. This also applies to the qualitative charts.

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Histogram
You can use a histogram evaluation to display the frequency distribution of meas-
ured values in a bar chart. This allows you to recognize typical and extreme val-
ues of a sample, as well as to judge the location, dispersion, and form of the distri-
bution. You can show or hide the distribution function and can print statistical
values.
The histogram contains the following data:
q All valid results for the sample
q Upper and lower specification limits
q Target value
q Distribution function and statistical values
If the inspection results are already divided into classes, the R/3 System uses these
classes to display the histogram. Otherwise, it divides the existing values into
appropriate classes.

Fig. 8-4: Illustration of a Histogram

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Quality Scores
Quality scores for inspection lots are a proven tool for quality control. The QM
application component provides you with several ways of determining the qual-
ity score. It uses information from the following sources:
q Usage decision
q Estimated fraction of nonconforming units in the lot
q Estimated fraction of nonconforming units for characteristics
m Maximum share of defects
m Weighted average share of defects
q Quality score of the characteristic defect classes
m Minimum (worst) quality score
m Weighted average quality score
You can also create your own methods for determining the quality score and store
them in the R/3 System.
The method you use for determining the quality score can be set according to the
type of inspection, plant, and material.

Fig. 8-5: Time Series of Quality Scores

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Vendor Evaluation
When procuring materials, you can use the vendor evaluation to select a suitable Criteria
vendor. This function provides you (as the purchaser) with a summarized score
that has been calculated for the vendor according to main and subcriteria. These
vendor evaluation criteria include:
q Price
m Price level
m Price history
q Quality
m Goods receipt inspection
m Complaints
m System audit
q Delivery
m On-time delivery performance
m Quantity reliability
m Compliance with shipping instructions
q Service

Fig. 8-6: Vendor Evaluation

You define the criteria and their relative weighting, according to your company
requirements.

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Automatic Evaluation When the vendor quality score is recalculated, the R/3 System updates the corre-
sponding data on the basis of the predefined criteria. In the list above, the subcri-
teria for the main criterion Quality come from the following sources:
q Goods receipt inspection
The average of the quality scores of all vendor goods receipt lots for a specific
time period. Inspected lots are given the current determined quality score.
Lots that have not been inspected are given the highest possible quality score.
q Complaints
If no quality notifications exist, the vendor receives the highest possible qual-
ity score. The vendor’s quality score decreases in proportion to the number of
quality notifications for a given time period, until the vendor has reached the
lowest possible quality score. The proportional factor is the ratio of the value
of the determined average damage as the result of a complaint, to the value of
all deliveries.
q QM system audit
You can choose between the average quality score from all system audits exe-
cuted for a given time period, or the quality score from the most recent system
audit.
In addition to the automatic vendor evaluation you, as the purchaser, can also see
how the vendor’s certified QM system itself is evaluated. For example, an auto-
mobile supplier could, independently of audit results, evaluate a QM system that
is QS-9000 certified differently from a QM system that is ISO 9003 certified.

Which subcriteria of the main criterion Quality does the R/3 System auto-
matically evaluate for vendors?
Automatic vendor evaluation takes place for the criteria from:
q Goods receipt inspections
q Complaints
q System audits

Quality Costs
Controlling Within the R/3 System, the Controlling (CO) application component plans, col-
lects, and evaluates all costs incurred by a company. These costs include quality-
related costs (quality costs). In the QM application component, you record ap-
praisal costs originating from quality inspections, or nonconformity costs origi-
nating from quality notifications. Other quality costs from other application com-
ponents (for example, prevention costs for training efforts from the Human Re-
source Management application component), are also included in the cost calcu-
lation.

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The Controlling component uses QM orders to manage quality costs. The follow- QM Order
ing types of QM orders are provided in the standard R/3 System:
q Appraisal costs order
m For individual settlement
m For collective settlement
q Nonconformity costs order

Fig. 8-7: Quality Costs

You can also define your own specific order types, if required. When creating
inspection lots, or a quality notification, you can create or assign a corresponding
QM order.
To distinguish between various types of quality costs (such as internal and exter-
nal nonconformity costs) and to summarize them appropriately in Controlling,
you assign QM orders to a default class in the SAP Classification System and use
class characteristics to differentiate between the orders. The characteristics are user-
defined. For example, you can separate internal nonconformity costs from exter-
nal nonconformity costs by assigning the characteristic origin to the class contain-
ing the nonconformity cost orders, and by allowing this class characteristic to
have both the attributes internal and external.

Appraisal Costs
Appraisal cost orders are stored in the material master and assigned by the R/3
System as cost collectors to individual inspection lots. If, however, a special settle-
ment exists for an inspection, that settlement takes precedence. For example, this
is the case when the lot belongs to a production order or when it comes from a
goods receipt for a purchase order that is assigned to a cost center account.

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Activity Confirmation The R/3 System calculates appraisal costs using the activities that you as the in-
spector can confirm, for example, on the basis of the hours worked. Accounting
fixes the types of activities, such as set-up time or inspection, and their charges for
the cost center that performs the activity. The activities performed for inspection
lots are logged during results recording or at the usage decision. Activities per-
formed for inspections during production are confirmed at the same time as con-
firmations are made for production orders.

Other inspection costs, such as material usage, are settled to the order in which
you confirm the inspection activity.

Nonconformity Costs
To settle nonconformity costs for a quality notification, you create a QM order
when a notification is processed. You assign the order to the notification header
and use it as a cost collector for costs, such as those relating to a warranty, to
scrapping, or to the settlement of activities performed. You can also assign rework
orders to this cost-collector account. This allows you to debit all costs for a quality
notification to the appropriate personnel and analyze the costs using the Control-
ling component.

Why is it advisable to use the Controlling component to process quality costs?

Business costs from all application components are collected in the Controlling
component. If quality costs are easily identified, you can optimize procedures
by taking advantage of the usual controlling methods.

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