It gives me the impression that it's more than a mere list of mistakes. I could record a list along with some basic details such as when/where/how/by whom, but to say "documented" sounds more official, even more comprehensive suggesting greater detail is recorded, for example interviews, a narrative of the event, and perhaps a root cause analysis. This is coming from my imagination as there is nothing definitive about *how* "documented" is necessarily more comprehensive than "recorded" but that is my perception as a native English speaker. And yes, "documented" is common and sounds professional in the context of a factory where theoretically the documentation serves as feedback to improve processes and reduce mistakes in the future.

To add to Shawn's answer: here, "documented" refers to a process, rather than the production of a piece paper that simply notes that the event happened. Each mistake would be documented individually. The process would involve careful information and evidence collection, analysis of why the mistake happened, and perhaps a proposal of corrective measures. So the "documentation of a mistake" might result in file full of information such as interviews, audio or video recordings, photographs, proposed and enacted solutions, etc.

It just means that a record is made of each incident, there doesn't have to be an actual document. You can say either "documented or "recorded". For the latter you might say, "A record is kept of every mistake at the factory." N.B. You should perhaps avoid saying, "Every mistake is recorded at the factory." It implies that audio recordings are being made of staff!

See below.