What is nonconformity costs in SAP QM - Quality Management?

SAP Term: nonconformity costs

• Component: QM

• Component Name: Quality Management

• Description: The quality-related costs that are caused by defects. These costs include: Nonconforming products Rework Scrap Unplanned screening inspections Repeat inspections Guarantees Product liability

Smart SAP Assistant

• Key Concepts: 
  Nonconformity costs are the costs associated with the failure of a product or service to meet the required quality standards. In SAP Quality Management (QM), nonconformity costs are used to measure the financial impact of quality issues. This includes costs associated with rework, scrap, and other corrective actions. 
  
  How to use it: 
  In SAP QM, nonconformity costs can be tracked and monitored using the Nonconformity Cost Analysis report. This report provides an overview of the total nonconformity costs for a given period of time. It also provides detailed information on the types of nonconformities and their associated costs. 
  
  Tips & Tricks: 
  It is important to track and monitor nonconformity costs in order to identify areas where quality improvements can be made. By understanding the types of nonconformities and their associated costs, organizations can take steps to reduce or eliminate them. 
  
  Related Information: 
  For more information on nonconformity costs in SAP QM, please refer to the SAP Help Portal: https://help.sap.com/viewer/product/SAP_QM/7.5/en-US