Explanation
Box 1: Quality association
A quality association defines all the following information for a quality order that is generated:
The transaction event
The set of tests that must be performed on the items
The acceptable quality level (AQL)
The sampling plan
You must define a quality association for each variation in a business process that requires automatic generation of quality orders. For example, a quality order can be generated in the business processes for purchase orders, quarantine orders, sales orders, and production orders.
Box 2: Test variables
For every qualitative test that is defined on the Tests page, you must define a test variable and its possible outcomes (results). (For qualitative tests, the Type field on the Tests page is set to Option.) You use the Test variables page to set up, edit, and view the possible outcomes for a test variable that is associated with a qualitative test. For each outcome, you assign an outcome status of either Pass or Fail to indicate whether the test is passed or failed when that outcome is selected as a test result. You use the Test groups page to assign a test variable and a default outcome for it to an individual qualitative test.
For every test variable, we recommend that you define at least two outcomes: one that has an outcome status of Pass and one that has an outcome status of Fail. There is no limit on the total number of variables or outcomes that can be defined. Additionally, multiple tests can use the same test variables to record results.
Examples of test variables
Example
A manufacturing company performs two tests on manufactured materials. In one test, the pH level is associated with a color strip. Acceptable pH levels are in lighter colors, and unacceptable pH levels are in darker colors. In another test, multiple visual inspections are performed, and quality workers use their judgement to determine whether the item passes or fails the visual inspection.
Reference: https://learn.microsoft.com/en-us/dynamics365/supply-chain/inventory/quality-associations
https://learn.microsoft.com/en-us/dynamics365/supply-chain/inventory/quality-test-variables