# SAP QM Dynamic Modification Rule Calculator

> Source: https://netray.co/tools/sap-dynamic-modification-rule-calculator
> Publisher: Netray (netray.co), AI and integration engineering for ERP and manufacturing systems.
> Section: Free Tools

## Short answer

Model how much inspection effort a skip or reduced stage saves, based on the share of lots that run at the reduced stage.

## Category

sap

## Erp

SAP ECC / S/4HANA

## Industry

Manufacturing

## Audience

- SAP QM consultant
- Quality manager
- Supplier quality

## Tool

**Kind:** calculator

**Currency:** $

**Inputs:**

#### Inspection lots per year

**Key:** annual_lots

**Type:** number

**Default:** 1200

**Min:** 0

**Step:** 50

**Unit:** lots

**Help:** Lots that would be inspected at the normal stage.

#### Share of lots at the reduced stage

**Key:** skip_share

**Type:** slider

**Default:** 60

**Min:** 0

**Max:** 100

**Step:** 5

**Unit:** %

**Help:** Percentage of the time suppliers and materials sit in the skip stage.

#### At reduced stage inspect 1 in every

**Key:** inspect_one_in

**Type:** number

**Default:** 3

**Min:** 1

**Step:** 1

**Unit:** lots

**Help:** For skip logic, enter n to inspect one lot in n.

#### Inspection hours per lot

**Key:** hours_per_lot

**Type:** number

**Default:** 1.5

**Min:** 0

**Step:** 0.25

**Unit:** h

**Help:** Average inspector time including recording results.

#### Loaded inspector rate

**Key:** rate

**Type:** number

**Default:** 40

**Min:** 0

**Step:** 1

**Unit:** $/h

**Outputs:**

#### Lots inspected per year

**Key:** lots_inspected

**Expr:** annual_lots * ((1 - skip_share / 100) + (skip_share / 100) / inspect_one_in)

**Format:** integer

#### Lots skipped per year

**Key:** lots_skipped

**Expr:** annual_lots - lots_inspected

**Format:** integer

#### Inspector hours saved

**Key:** hours_saved

**Expr:** lots_skipped * hours_per_lot

**Format:** hours

**Primary:** true

#### Inspection cost saved per year

**Key:** cost_saved

**Expr:** hours_saved * rate

**Format:** currency

**Primary:** true

#### Share of inspection effort removed

**Key:** pct_saved

**Expr:** if(gt(annual_lots, 0), lots_skipped / annual_lots * 100, 0)

**Format:** percent

**Chart:**

#### Cost saved vs share of lots at reduced stage

**Type:** line

**X:** skip_share

**From:** 0

**To:** 100

**Steps:** 20

**Series:**

- cost_saved

**Disclaimer:** This is a simplified model. Real dynamic modification rules move between stages based on rejected and accepted lots, so the actual share at each stage depends on supplier quality. Skipping inspection increases risk, so match it to your quality agreement.

## Content

**Intro:** A dynamic modification rule in SAP QM changes the inspection stage up or down depending on the quality history. This calculator shows what a given time at reduced inspection could save.

**Sections:**

#### How to use the calculator

**Body:** Enter the number of lots per year, the share of time lots run at the reduced stage and how many lots are skipped. Skip logic of 1 in 3 means two of every three lots are not inspected. Add the average inspection hours per lot and a loaded rate. The calculator shows lots inspected, hours saved and annual cost saved, and the chart sweeps the reduced stage share so you can see how sensitive the saving is.

#### The logic behind the model

**Body:** Lots inspected equals lots times the share at normal stage plus lots times the share at reduced stage divided by n, where one lot in n is inspected. Lots skipped is the difference. Hours saved multiplies skipped lots by hours per lot, and cost saved multiplies hours by the rate. In SAP QM, dynamic modification rules can lower the sample size or skip the lot altogether, depending on the stage, and they escalate again after a rejection.

**Bullets:**

- Lots inspected = lots x (normal share + reduced share / n)
- Hours saved = skipped lots x hours per lot
- Cost saved = hours saved x rate
- Stage changes depend on accepted and rejected lot history

#### Common mistakes

**Body:** The biggest mistake is assuming a supplier stays on the reduced stage all year. A single rejection normally sends the supplier back to the normal or tightened stage, so use a conservative share. Another is ignoring the effort of managing the rules, reviewing the history and handling the lots that are inspected at the tightened stage. Use the result as a business case input, not as a promise.

**Bullets:**

- Using 100 percent reduced stage share
- Ignoring tightened inspection after a failure
- Applying skip logic to critical or safety characteristics
- Forgetting the customer or quality agreement limits on skipping

**Cta:** Netray can analyze your actual lot history in SAP to estimate how much time each supplier spends at each stage, read only. We are happy to discuss it.

**Faq:**

#### What is a dynamic modification rule in SAP QM?

**Answer:** It is a rule that changes the inspection scope or stage for a material, vendor or characteristic depending on past results. It can reduce the sample, skip lots or tighten inspection after failures.

#### Where are dynamic modification rules maintained?

**Answer:** In QM master data, for example transaction QDR1 creates a rule and QDR3 displays it. The assignment happens in the inspection plan or material specification. Check your release for the exact menu path.

#### Is skip lot inspection safe for every part?

**Answer:** No. It suits stable suppliers with proven quality history and low risk parts. For critical characteristics or regulated industries, follow the customer and standard requirements and keep full inspection where needed.

#### How do I get a realistic reduced stage share?

**Answer:** Export lot history from SAP and count the time or lots at each stage for the past year. Use that share in the calculator rather than a target value.

## Search terms

sap dynamic modification rule, sap qm skip lot inspection, sap inspection stage, sap dynamic modification calculator, sap qdv5 dynamic modification, skip lot sampling savings, reduced inspection savings calculator, sap qm inspection effort

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