Different materials are manufactured in production with either production orders or process orders. Defects recording for an order is an easy way to document problems that occur during production in the SAP S/4HANA system. You define various defect codes in order to be able to record defects for later analysis and evaluation. Defects recording is primarily used in the following areas:
Production of Complex Products or Systems
Defects recording is a very important tool for the production of complex products or systems (for example, electronic equipment, cars, and industrial machinery). In this area, a consistently high product quality level can only be maintained if the defects are kept to a minimum or eliminated altogether. Defect records are required to identify quality problems in the production process and to comprehensively evaluate the defect data (for example, the total number of all defects, the total number of defects categorized by defect type, a valuation of defects based on various factors such as location, seriousness, etc.).
Discrete Manufacturing
In the production of less complex, single parts such as nuts, bolts, or bearings, you are likely to record both characteristic values and defects. For example, a manufacturer of ball bearings may record characteristic values for the bearing diameter, as well as the defects that affect the quality of the bearing material.

In the SAP S/4HANA system, defects recording can be implemented by:
Using an inspection lot (inspection lot origin 03)
Using a quality notification (notification origin Q3)
Using the Nonconformance Management (Production Defect)
This lesson will focus mainly on defects recording using an inspection lot for the production order and using the Nonconformance Management.