Calculating cost of poor quality.

[Former Member]

Dear Friends,

Need some help from you in calculating cost of Poor Quality.

In SAP cost of quality contains Appraisal cost and non conformity cost, here I think since at my clients place we have mentioned cost of poor quality,we should consider only non conformance cost , please correct me if am wrong.

Following steps already done :

Parameters defined.

Formula defined.

Standard value key formula defined.

Assigned all this in work center.

Cost element created

Activity type created

Pricing maintaining for activity type and cost center combination.

QM order made and assigned to material

Work center assigned to quality plan

Now my problem if I donu2019t maintain any pricing in Activity type then my cost is coming u2018Zerou2019 when checked in UD >> COST section. What my understanding is if any rejection happens whether from customer / in process, the entire cost ( lot quantity x material std price ) should be treated as cost of poor quality.

I canu2019t define the fixed price in Activity type as it varies from material to material, also if no price defined in activity type cost is coming zero.

Please help me by telling where is the missing link.

BR

Shekhar

[former_member186399]

Dear Shekhar,

Please go thru this link

Link: [http://help.sap.com/saphelp_media464/helpdata/en/e4/e312d81ff611d4b2cd0050da4ceab0/frameset.htm]

Regards

gajesh

[former_member186399]

Dear Shekhar,

Please let me know how you are capturing the non conformance cost now. i want to know details related to transaction datas. What is the activity type created .

Regards

gajesh

[former_member186399]

Hello Shekhar

Correct

Appraisal cost is a part of cost of Quality while Non conformance is a part of poor quality.

The process you have mentioned here is for capturing Appraisal cost during inspection . The activity price has to be maintained for the same otherwise cost will not be captured. some suggestion would be

1) Maintain your activity type in Labour hours.

2) Maitain a fixed price for activity type

3) when you input the labour time for each material during rejection inspection vary this according to the cost.

Suppose X material the cost is more you input 5 hrs, for a material which is having lower cost input 0.5 hours

For non conformance cost capturing Use notifications

1) You can create a notification for each rejection.

2) create an QN01/ QN02 order types available in the notificatio itself

3) Link the notifications to the KB21N Transaction - Call this transaction for inputing the labour time (depending on the material cost) spent for the rejection.

Hope this helps. please let me know if you want more information. You can include many other parameters also for non conformance

Regards

gajesh

[Former Member]

Hi Gajesh,

Thanks for you inputs, Can you please elaborate following:

"For non conformance cost capturing Use notifications

1) You can create a notification for each rejection.

2) create an QN01/ QN02 order types available in the notificatio itself

3) Link the notifications to the KB21N Transaction - Call this transaction for inputing the labour time (depending on the material cost) spent for the rejection."

In my case notification is mapped automatically, when there is defect notification raised automatically. Order type also I am using QN01.

How to link notification with KB21N??? putting material cost in terms of labor time concept not digesting.

My requirement is only capture non conformance cost, one thing tell me why it is not possible to take directly the entire cost of material, If I have a rejection from customer say 1000 nos, then my cost of poor quality is entire cost of that material, in system std price already there and quantity figure available why system should not take that cost?? when i raise notification. Pl correct me if am wrong.

BR

Shekhar