This video explains the concept of Dynamic Modification Rules in the SAP S/4HANA Quality Management (QM) module. Here are the key points:

1. Dynamic Modification Rules: The video explains that dynamic modification rules are used to reduce inspection costs as a result of high quality. These rules are used to either totally skip the inspection or to reduce the sample size for inspection.
2. Inspection Skip and Reduced Sample Size: The video outlines two scenarios where dynamic modification rules are used. In the first scenario, after inspecting the first few lots, if they are okay, the next few lots are skipped for inspection. In the second scenario, the sample size for inspection is reduced after the first few lots pass the inspection.
3. Dynamic Modification Rule Structure: The video describes the structure of a dynamic modification rule, which includes the definition of inspection stages, the dynamic modification time, and the conditions that lead to an inspection stage change.
4. Inspection Stages: The video demonstrates the different inspection stages, which include normal inspection, reduced inspection, inspection skip, and tightened inspection. The transition between these stages is controlled by the dynamic modification rules.
5. Conditions for Inspection Stage Change: The video explains that an inspection stage change can occur due to two conditions: acceptance or rejection of the previous inspection lots.
6. Storage of Dynamic Modification Rules: The video shows that dynamic modification rules can be stored in three places: in the inspection plan at the header level, in the inspection plan at the characteristic level, and in the inspection setup of the Material Master record at the inspection type level.