Infor SyteLine

SyteLine Cost of Quality (COQ) Tracking Configuration

Cost of Quality tracking in Infor SyteLine quantifies the financial impact of quality activities across four categories: prevention, appraisal, internal failure, and external failure. By configuring SyteLine to capture quality costs at the transaction level through the SLQualityResults, SLQualityNonConformances, and GL transaction records, organizations can identify where quality investments deliver the highest return and where failure costs indicate systemic process issues requiring attention.

Quality Cost Category Configuration

Define cost of quality categories and sub-categories that map to SyteLine transaction types and GL accounts. Configure quality cost capture at the source transaction level so costs are recorded as they occur rather than estimated after the fact. The four COQ categories (Prevention, Appraisal, Internal Failure, External Failure) provide the framework for quality investment analysis.

  • Configure Prevention Cost tracking: training costs from HR records, quality planning labor from timekeeping, SPC implementation costs from project tracking
  • Set up Appraisal Cost capture: incoming inspection labor and equipment costs, in-process inspection time from SLQualityInspections, calibration costs from maintenance
  • Define Internal Failure Cost accounts: scrap costs from NCR disposition transactions, rework labor and material from rework job orders, re-inspection costs from quality records
  • Enable External Failure Cost tracking: warranty claims from customer returns, customer complaint investigation costs, product recall costs from recall tracking records
  • Map quality cost sub-categories to GL account segments for automated cost of quality reporting from the general ledger trial balance

Transaction-Level Quality Cost Capture

Accurate COQ requires capturing costs at the point they occur. Configure SyteLine to record quality costs automatically from scrap transactions, rework job orders, inspection labor records, and warranty claims. The key is linking quality events in the SLQualityNonConformances IDO to their financial impact in the GL through proper cost posting configuration.

  • Configure scrap cost posting from NCR dispositions to record material and labor costs to designated internal failure cost GL accounts
  • Set up rework cost tracking through dedicated rework job orders that capture incremental labor, material, and overhead for failure cost calculation
  • Enable inspection labor cost capture by linking quality inspection time entries to appraisal cost accounts through the labor posting rules
  • Configure warranty cost tracking from customer return transactions linking credit memos and replacement costs to external failure cost accounts

COQ Reporting and Analysis Dashboards

Cost of quality reports transform raw cost data into actionable intelligence. Configure COQ reports that show the balance between prevention/appraisal investment and failure costs, trend analysis over time, and cost of quality as a percentage of revenue. The goal is to demonstrate that increased prevention spending reduces total COQ by driving down failure costs disproportionately.

  • Build COQ summary reports showing the four cost categories as percentages of total quality cost and as percentages of revenue for executive visibility
  • Configure trend analysis reports displaying COQ by category over 12-month rolling periods to demonstrate the impact of quality improvement initiatives
  • Set up pareto analysis of failure costs by defect code, product family, and production line to identify the top cost drivers requiring improvement action
  • Enable COQ benchmarking reports comparing quality cost ratios against industry standards (typically 2-4% of revenue for prevention/appraisal, declining failure costs)
  • Configure automated COQ reporting distribution to quality management and executive teams on monthly schedules via the SyteLine Report Scheduler

Quantify your quality investment with SyteLine COQ tracking—schedule a quality cost assessment today.