To make a so-called Second-party audit (also named Customer or supplier audits) according to ISO 19011 in SAP, the Inspection type 07 is useful, when auditing a material at the vendor site.

If it is necessary to make inspections more frequently than an audit, then a source inspection with inspection type 01 should be considered.

Prerequisites for second-party audit

  1. There has to be created either a task list or a material specification to be able to record the results from an audit inspection.
  2. The vendor evaluation component should be configured if the results from an audit should be used in the vendor evaluation.

Procedure

Activate inspection type 07 in the material master for those materials which should be audited at the vendor site and use the below settings for the inspection type:

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Field Name

R/O

Description

Insp. with mat. spec.

O/R

Inspect with Material Specification

When you set this indicator, you can perform an inspection using a predefined material specification.

An inspection of this type can be used to supplement or even replace an inspection on the basis of a plan.

Dependencies

If you set this indicator, you must also maintain the material specification for the inspection to be performed.

Insp. with task list

O/R

Inspection with Task List
If you set this indicator, the inspection is performed based on the task list.

Dependencies

You must maintain a task list for the material to perform an inspection.

Automatic assignment

O/R

Automatic Specification Assignment

If this indicator is set, the system trys to assign a task list or a material specification automatically.

Dependencies

You can only set this indicator if either the indicator to inspect with a task list or the indicator to inspect with a material specification is also set.

Check Chars

O

Inspect by Characteristics

Dependencies

  • If you want to record results based of characteristics, you must inspect using a task list or a material specification.
  • Characteristic-based results recording is a prerequisite for characteristic-based dynamic modification. In the task list, you can choose a dynamic modification level.
  Automatic UD   O

Automatic Usage Decision Planned
If you set this indicator, the system can automatically make usage decisions for inspection lots.

The inspection lots must meet the following conditions:

  • All characteristics have been completed
  • None of the characteristics have been rejected
  • No defects have been recorded, or quality notifications created
  • The waiting time set in Customizing must have elapsed.
  • Inspection lots with the status skip lot can also be taken into account.

Dependencies
The indicator is active in the inspection lot, if it has been set for the relevant inspection type in the inspection setup for the materials.

You use the job management function to activate the indicator.

You can schedule and start jobs directly from the worklist in quality inspection.
For more information about planning the automatic usage decision, see the Implementation Guide.

  • If no automatic usage decision can be made, you must make one manually.
  • The system documents the automatic usage decision in the long text for the usage decision.
  • Inspection lots without an usage decision can’t be archived.
Avg. insp. duration

O

Average Inspection Duration

Average duration of an inspection (in days) for each inspection type.

When an inspection lot is created and you enter the start date for an inspection, the system uses the value stored in this field for the average inspection duration to calculate the end date for the inspection.

If you enter the end date of the inspection when the inspection lot is created, the system calculates the start date of the inspection using the average inspection duration entered in this field.

The average duration is used in the MRP to calculate if the material is released when calculating the need of an order.

Q-score Procedure

R

Procedure for Calculating Quality Score

The procedure used to calculate the quality score for the inspection lot.

You can define a quality score procedure for each inspection type in the material master.

Dependencies

The quality score is taken from the code for the usage decision or calculated using a function module, which is assigned to the quality score procedure in Customizing.

Allowed scrap share

O

Allowed Share of Scrap (Percent) in Inspection Lot

Some quality score procedures need the allowed share of defects to calculate the quality score.

This is NOT relevant for an audit inspection, since there is no stock postings!

Individual QM Order

O

Record Appraisal Costs in Individual QM Order

If you set this indicator, an individual QM order will be created for this combination of material and inspection type.

Dependencies

If the field for the QM order is also filled in addition to the indicator being set, this field will be taken into consideration only if an individual QM order could not be created as a result of a missing account assignment in the inspection lot.

To be able to create an individual QM order, the inspection lot must have an account assignment rule such as a customer order, cost center or asset.

This is NOT relevant for an audit inspection!

QM Order

O

Order Number for Recording Appraisal Costs

The number that  uniquely identifies the QM order that is to be used for collecting costs.

The QM order defined in the inspection setup (Quality Management view of the material master)  is used as a copy model when inspection lots are created, provided no individual QM order is created for the inspection lot.
  
This is NOT relevant for an audit inspection!

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10 Comments

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    1. Craig S

      Task list usages are totally configurable.  It would depend on exacty how you use the 07 for audits and how you use your other task lists for other inspection types.  There is no “rule” that says one usage is better than another.  There is no difference between task list usages.  They are only used to link a group of inspection plans to one or more inspection types.  you confiigure what makes sense for your business.

      If unsure, use the configuration as delivered by SAP.

      Craig

      (0) 
  1. Louis Nicolas Arson

    Audit management with 07 Insp. origin is now out of date to my opinion.

    This kind of audit should be now plan and execute with the Audit Management module (PLMD_AUDIT)

    (0) 
    1. Craig S

      Not necessarily.  I’m pretty sure PLMD_AUDIT is not integrated with the Q-score for the vendor evaluation like the 07 inspection type.   Audit managment does provide a valuation but it doesn’t directly fed vednor evaluation. So it depends if you want to use the purchasing vendor evaluation and include a quality vendor audit component in it.

      You might be able to resolve that issuse with a follow-up action in Audit management that would than manually set site visit component  of the valuation score and you would configure out the 07 component from it.

      Craig

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      1. G S

        can this be used for vendor process and systems audits ? Or does it have to be used to audit mtls on the vendor sites ? I guess the statements at the beginning of the blog states how 07 and 01 source inspection differ. We have a scenario and it should be very common, where we want to audit vendors and have periodic supplier performance reviews. How have other companies handled these two scenarios? I am guessing using the 07 (vendor audit) and a Z07 (periodic performance reviews) could be used. Any thoughts ?

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        1. Craig S

          You can use PLMD_AUDIT to actually perform your periodic supplier performace reviews.

          But those are not automataiclly included in a vendor’s Q-score.  This is an area that can get complicated very fast and there is no one way to do things.

          I would suggest creating 07 inspection lots with certain characteristics in them.   First though you need to create a dummy material for this since inspection lots must be created for a material.  You aren’t realistically going to do a full customer audit for every material sourced from them usually  (in some industries they do).  I’d actually create a new material each year for this purpose.
          “Vendor Audits 2016”

          “Vendor Audits 2017”

          etc. etc..

          The 07 vendor inspection plan can then have several characteristics to complete in it for the audit.  Each characteristic would usually be Pass/Fail.

          PLMD_AUDIT Questionaire  PASS?FAIL

          Site_visit  PASS/FAIL

          Reducion of issues?  YES/NO

          Calculation of Q-score could be very complicated, (Weighting keys for instance from MIC’s), or could simply be a manually assigned Q-score, or based on UD code.  (Provide ten UD’s, each with differnt Q-score values, i.e 100, 90, 80, 70, 60…etc)

          Then your vendor evaluation in purchasing needs to be weighted properly to utilize the 07 inspection type to the weighting level you desire.

          This is probably how I would start implementation of this.  But that’s not knowing anything of the business and having a greenfield implementation.  Business requirements or existing requirements might not allow that particular process.

          Craig

           

          (0) 

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