In control key defination there is an option to tick indicator insp-chr-required.
What would be the subsequent result of choosing this indicator?

This scenario is for PP-QM interface
 
With this indicator you can record the results for that Production order - Operation combination.
But the pre-requsits are you need inspection Characteristics in routing & 03 type must be active for that material
 
Then the scenario become as
 
Planned order (PP Fuct) ---- Production order  (PP Fuct)  --- Prod order rel (PP Fuct)
----- Inspection lot generated (QM Fuct) ---- Result recording for that opeartion
 (QM Fuct) --- Accept lot (QM fuct) ---- Confirm Prod Order ( PP fuct) ---- GR for production order.
 
Amit

Indicator: inspection characteristics for operation required
This indicator specifies that inspection characteristics are to be maintained for the following objects if specified in the control key you selected:

Operations in Quality Management (QM) and Production Planning (PP)
The system ignores this indicator if it is set for sub-operations. For operations and phases in Production Planning for Process Industries (PP-PI)
The system ignores this indicator if it is set for secondary resources.
The system ignores this indicator in Plant Maintenance (PM).
In the following situations, the consistency check for the task list generates a warning message:

If you set the indicator in the control key but have not maintained inspection characteristics for the operation or phase if you have not set the indicator in the control key but have maintained inspection characteristics for the operation or phase

Dependencies
Operations and phases, in which this indicator is set in the control key, are included in the QM work lists for inspection results recording.

Poobie

If you use this indicator then you should:
1-assign MICs in this operation
2-and then you can  make inprocess inspection
3- record result for this operation  every specified time or quantity produced  (using inspection points )
4-  u can also get charts for ur operation such as control chart to get an idea about  the capability of the process
*each step  want some details

Eng

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SAP PP (Production Planning) Configuration Hints and Tips

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SAP ABAP/4 Programming, Basis Administration, Configuration Hints and Tips