2. Quality Management in Procurement Receiving Inspection Trainer: Hazel Ojeda

3. Areas to Cover yDocumentation Location yFlow Chart and the Main Transactions yInspection Lot Types yRecording Defect Basics yUsage Decisions yLink to Vendor Evaluation yStock Posting ySystem Work yProcess Flow Chart Review

4. Where Can I Find the Documenation? zKEG Home Page zBusiness Documentation Ctr zSAP Business Processes zQM – Quality Management yProcess Flows (TQM200 Goods Receipt Inspection) yBPP’s yJob Aids

5. Transactions Used zSome of the main transactions used are:

6. Recording Defect Basics zLet’s first understand some basics...

7. Receiving Inspection Lot Types zReceiving Inspection has three inspection types that are used by QM in Procurement: y01 – Goods Receipts y08 – Line Returns y89 - Miscellaneous

8. Recording Defect Basics Two areas or levels of defect reporting: 1.Characteristics (elements of the part being inspected) 2.Usage Decisions (whether the lot is conforming, rejected or to be used with a deviation)

9. Characteristics zA “qualitative characteristic” is a characteristic that can be inspected visually (I.E. Packaging, Part Marking, etc.). zA “quantitative characteristic” is a characteristic that has to be inspected with a gage and would have measured results (I.E. Length, Resistance, etc.).

10. Characteristics Example HOUSING: yBroken or cracked post (qualitative) yPart markings (qualitative) yFlash (qualitative) yPost length (quantitative) yHole diameter (quantitative)

11. Characteristic “Links” Characteristics are “linked” to Quality Stages; therefore, they impact whether materials are moved up or down in the Quality levels: ycontinuous inspection yskip lot ycontinuous skip lot

12. Usage Decision What is a Usage Decision? zA usage decision (UD) is a decision on the further processing of an inspection lot that is made on the basis of the inspection results.

13. Usage Decision Example Lot of Housings: zThere were 2500 housings in the lot that was received and inspected. Based off of the material meeting the specifications, a decision will be made on the lot as to whether it is yconforming ydefect yused with a deviation

15. Usage Decision “Links” Usage Decisions are linked to Vendor Evaluation scores. (The quality section score for Goods Receipt is impacted from the PPM calculations derived from rejected quantities and lot quantities with a usage decision made during the specific timeframe.)

16. STOCK POSTING  Unrestricted - Valuated stock of a material held by (and belonging to) a company, which is not subject to any usage restrictions.  Scrap - Nonconforming product that will not fulfill the quality requirements even after rework and that cannot be used for other purposes.  Sample usage - The smallest quantity of a product or material that can be inspected. It is measured in sample units of measure. The sample size is therefore always a whole-number multiple of the sample unit.  Blocked stock - Valuated stock of a material, held by (and belonging to) a company, which is not to be used and cannot be classed as "unrestricted". For the purposes of the availability check, blocked stock counts as "not available”.  New material - New material that can be traded, used in manufacture, consumed, or produced.  Reserves - Sum of all quantities of a material reserved for withdrawal from stock.  Return delivery - Delivery returning goods that are part of your stock to an external supplier. A return delivery references a purchase order or goods receipt

17. Training Tools zSystem clients are available for training, experimenting, and testing zProcess Flow Charts zBusiness Process Procedures (BPP’s) zJob Aids zKEJ, KEA, KETL, and KET QM activities can be viewed by you zPower Users

18. Basic Transaction Review Let’s view the system!

19. Flow Chart Review TQM200 Let’s put it all together!