Hi Kathy
03 inspection type is used for in-process inspection so quality parameters are attached only those operation for which you want to do inspection. and you can assign quality parameters to that operation in which co-product is assigned.
And if you want the inspection of co-product when GR is done against Production/Process order then you have to activate 05 inspection for that material as by product is produced against 531 movement type which is assigned to lot origin 05.
regards
Manish