Quality Management Order Functionality Helps You Manage Quality Defect Costs More Efficiently

  • by Manish Parchure, Lead Consultant, Infosys Technologies Ltd.
  • August 30, 2010
Discover how using Quality Management order functionality in SAP ERP Central Component effectively helps you record, track, and manage the costs resulting from quality defects.
Key Concept

Discover how using Quality Management order functionality in SAP ERP Central Component effectively helps you record, track, and manage the costs resulting from quality defects.

Traditionally, organizations use functionalities available in their SAP system’s Managerial Accounting (CO) module to collect and evaluate various types of costs incurred during defects tracking. However, categorizing and analyzing costs with this method is difficult because the costs are recorded against internal orders. As a result, it is very difficult to report the quality management costs with the appropriate level of details and categories (e.g., internal or external quality defects costs).

The Quality Management (QM) order functionality helps you overcome the limitations of quality defects cost analysis in the CO module. The QM order functionality captures the desired level of quality defects cost data and provides information to help you make critical decisions. Organizations can keep a close tab on each avenue of defects cost. You can periodically measure the success of your cost reduction efforts and evaluate new opportunity areas continuously. 

Overview of Defects Costs in QM

The defects costs arise due to failure of quality control, such as not detecting a flaw in production machine gauges during the manufacturing process. The costs incurred are categorized as internal or external defects costs.

Manish Parchure

Manish Parchure has been an expert functional consultant in SAP for more than 10 years. He has vast experience in Quality Management, Plant Maintenance, Materials Management, and Solution Manager. He has been involved in large SAP projects in different capacities and roles such as module consultant, functional analyst, lead, and project manager. He has worked on end-to-end implementations and support, rollout, enhancement, training, and IT solution consulting projects. Manish is currently a Lead Consultant at Infosys Technologies Limited. He holds a bachelor’s degree in engineering.

See more by this author


Comments

No comments have been submitted on this article. 


Please log in to post a comment.

To learn more about subscription access to premium content, click here.