Quality Management in Procurement

1. Quality Management in Procurement SAP Best Practices for Chemicals

2. Purpose, Benefits, and Key Process Steps • Purpose • Thescenario dealswiththebusinessprocesses usign QM in procurement. Target group are quality specialist and quality manager. • Benefits • Substitution of an external LIMS. • Key Process Steps • Quality Inspection in Goods Receipt with Inspection Plan • Quality Inspection in Goods Receipt with Inspection Plan –Processing Qualification model • Quality Inspection in Goods Receipt with Supplier Certificate • Quality Inspection in Goods Receipt for Active Ingredient • Quality Inspection for Pipeline Materials • Quality Inspection for Tank Trailer Procurement

3. Required SAP Applications and Company Roles • Required SAP Applications • SAP ECC 6.00 enhancement package 5 • Company Roles • Quality Specialist

4. Detailed Process Description • Quality Management in Procurement • Almost all materials that are used within preconfigured procurement processes in SAP Best Practices for Chemicals are subject to Quality Management as it is common for the chemical industry to have extensive QM in place. • This scenario describes different QM inspections for different types of materials assuming the goods receipt was carried out according to other Business Process Documents (exception: Tank Trailer Procurement). • Main process steps are creation of inspection lot (either manually or automatically), recording of inspection results and recording usage decisions.

5. Process Flow Diagram Quality Management in Procurement Event Quality Inspection in Goods Receipt with Inspection Plan Quality Inspection in Goods Receipt with Inspection Plan – Processing Qualification Model Quality Inspection in Goods Receipt for Active Ingredient Quality Inspection in Goods Receipt with Supplier Certificate Quality Inspection for Pipeline Materials Quality Inspection for Tank Trailer Procurement Goods Receipts for Purchase Order Goods Receipts for Purchase Order for Pipeline material Goods Receipts for Purchase Order Purchase Order for Tank Trailer Material Generated Inspection Lot Created Automatically Vendor Sends Certificate Inspection Lot Created Automatically Quality Specialist Create Inspection LotManually Create Inspection LotManually Results Recording Confirm Receipt of Certificate Goods Receipts for PO Recording the Usage Decision Results Recording ResultsRecording Recording the Usage Decision Recordingthe UsageDecision Recordingthe UsageDecision

6. Diagram Connection Legend <Function> Hardcopy / Document External to SAP Financial Actuals Business Activity / Event Budget Planning Unit Process Manual Process Process Reference Existing Version / Data Sub-Process Reference Process Decision System Pass/Fail Decision