Quality-Related Costs

Purpose
Quality-related costs are the costs that are incurred by a company for planning and assuring the quality of a
product or service, based on predefined quality requirements. These costs cover a wide range of expenses
relating to the tasks of quality assurance. In the Quality Management (QM) application component there are
the following quality-related costs:
Appraisal costs
These costs are associated with inspection processing activities (for example, labor, material and equipment
costs for inspections).
Nonconformity costs
Nonconformity costs cover internal or external nonconformities that are associated with a product or service
(for example, defect costs, rework costs or warranty expenses). You record costs of this type when you
process quality notifications.
In the QM component, you can only record the actual appraisal and nonconformity costs. Functions for
managing planned costs are currently not supported. Other types of quality-related costs, such as prevention
costs, can also be recorded in other R/3 application components. For example, you can record the expenses
for training the quality inspectors in the Human Resources (HR) component.

Work center cat.

Key which distinguishes the work centers by their category (for example, production work center, maintenance work
center).

Work center
Key identifying the work center.

Object Name
Contains a brief description of an object (for example, an organizational unit).

Person responsible for the work center

The person or group of people who are responsible for the maintenance of the work center master files.

Key for task list usage

Key to control in which type of task list you can use: operating resources (for example, work centers or production
resources/tools).

Standard value key

Key defining and giving a dimension (for example, time or area) to one of up to six standard values.

Control key
Determines which business transactions should be executed for the object that belongs to the task list or order (for
example scheduling or costing).

Capacity short text

Text which describes the capacity in more detail.

Capacity planner group

Key referring to the capacity planner group, which is responsible for planning this capacity.

Base Unit of Measurement for Capacity

Unit in which available capacity is maintained. A typical unit is "hours".

Capacity utilization rate (percent)

The relationship (expressed in percent) between a machines actual capacity and its theoretical capacity.
Enter the average capacity utilization rate of all machines providing that capacity during the shift.

Number of individual capacities

Number of elements which make up a capacity group.

Unit of measure of capacity

Unit of measure in which available capacity is to be displayed.

Capacity category
Key which describes capacity in more detail. The capacity category enables you to determine whether it is machine or
labor capacity.

Formula for setup time

Formula used in scheduling to calculate the setup time of an operation.
If you do not enter a formula, the system uses a setup time of zero for scheduling.

Formula for the duration of processing time

Formula used in scheduling to determine the operation processing time.

If you do not enter a formula, the system uses a processing time of zero for scheduling.

Cost Center
Key uniquely identifying a cost center.

Activity type int. processing

Key identifying the activity type used in other types of internal processing in costing (for example, in networks, process
orders or maintenance_orders).

Formula key for costing

Key which refers to the formula used to determine costs per activity type.

Work center cat.

Key which distinguishes the work centers by their category (for example, production work center, maintenance work
center).

Dependencies
The work center category determines which data can be maintained in the master record for the work center.

Work center location

Key which describes the physical location of the work center