If an importer wishes to verify the accuracy of a manufacturer's order before placing an order with them, the importer may request a factory audit, which is a physical inspection carried out on his or her behalf at the manufacturer's manufacturing facility. Performing a Factory Audit can help you avoid getting yourself into trouble by contracting with the incorrect factory in the first place. To be confused with quality management system auditing, which involves not only the auditing of the quality management system, but also a thorough investigation into the company's background, including its industrial experience and exporting history, as well as a thorough investigation into the company's quality management system and quality management system implementation.
Selecting which factory to partner with in order to conduct business is an important step in the development of a successful business venture, and it is one that must be taken carefully. According to the International Labor Organization, an increasing number of Chinese manufacturers are closing their doors on a daily basis as a result of increasing pressures caused by poor rice production and an unstable labor market throughout the country. It is preferable to identify and address critical issues as soon as they arise in order to avoid being caught off guard when they do occur, as this will yield the best results.
Where does one begin when evaluating whether to source products from a new supplier and factory, and how does one determine which aspects of a factory audit are the most important ones to pay attention to?
Confirm that the supplier is a legitimate business by doing the following:
Working with a supplier whose factory has been audited by a reputable quality control firm significantly reduces the risk associated with doing business with that supplier. The ability to communicate effectively is particularly important for first-time suppliers. In order to begin selling and exporting your products as soon as possible, it is critical that you obtain all of the necessary certifications and licenses. Failure to do so will result in severe consequences. Under Chinese law, the business license will include information about the date on which the company will be established, as well the scope of operations and activities of the company, among other things. If the manufacturer's business license does not include production language, as indicated by this message, the factory is ineligible to participate in the manufacturing process. It is also necessary to obtain a rental agreement or a certificate of ownership from the landlord in order to determine whether or not the building is legitimately used in the manufacturing process.
2. Check on the progress of the manufacturing process as it is taking place?
It is necessary to take the manufacturing process into consideration when conducting a new Factory Audit Service, or is this not the case? Manufacturing revealed a great deal about the expertise and capability of the team members who were involved in the product's development and manufacture during the course of the process. There are several types of small businesses, including those that have only one manufacturing process, such as an assembly line, or that combine a number of simple manufacturing processes into a single larger manufacturing process. Except in cases where the manufacturing process is extremely straightforward, it is likely that a factory will have difficulty maintaining complete control over the vast majority of quality-related aspects by itself. An increase in the number of production processes that are subcontracted to third-party suppliers increases the likelihood of a quality issue occurring in the manufacturing process.
Machines and other equipment, as well as measuring instruments, are among the items on the list.
Finding out what machinery and equipment you have makes determining whether your production capability and manufacturing process control will meet your expectations much simpler. It is my current job that I am working with a client who is interested in purchasing children's rainboots from a variety of different manufacturers and retailers. One supplier has an in-house mold-making workshop, as well as an Italian injection machine, while the other does not have an in-house mold-making workshop, but does have a domestic injection machine. Despite the fact that the client considered doing business with a factory that did not have its own mold-making workshop, the client ultimately decided to form a partnership with one of these factories because the costs associated with running a company were lower in these factories. This is due to permanent flaws in the outsole that cause shrinkage over time, making it impossible for the factory to maintain strict quality control throughout the manufacturing process. It was necessary for the factory to close as a result of their inability to properly design and construct a dependable injection machine for the product in question. In the end, the customer has made the decision to end his or her commercial relationship with the manufacturer.
Determine whether or not you have any human resources available to you at the present time.
When it comes to conducting a successful Factory Audit Service process, it is also critical to check on the availability of human resources in the organization. You can determine how many workers are required for production and how many people are required for product design when you have a clear understanding of your organization's human resource structure. Therefore, a factory that only has a production department and no quality assurance department will be unable to maintain the necessary control over the quality of its products. Besides that, it is a sign that the company possesses engineering capabilities that will be extremely beneficial to the manufacturing process if a product development and engineering department is created.
5. Confirm that the organization possesses the necessary manufacturing capabilities.
According to the information in the audit report, the vast majority of the information in the audit report's information on production capability is inaccurate. What is the underlying cause of this situation, exactly? For the sake of expediency, the auditor only requested that the manufacturer provide the data and maintain a copy of the data on file. The manufacturer agreed to comply with this requirement. When it comes to gathering trustworthy information, what methods do you employ? I believe that if the manufacturer is able to provide an annual report on manufacturing operations, the data will be more reliable than if the manufacturer is unable to provide one. When a manufacturer is unable to provide us with this type of annual production report, we can request that he provide us with a copy of an annual contract signed by a large client in lieu of the annual production report.
Evaluation of overall effectiveness of the quality management system in its entirety is done in step six. When the auditing team arrives on the premises, they will assess the effectiveness of the factory's Quality Management Systems (QMS).
Following the ISO 9001 quality management system standard, they will assess and rate them in accordance with their performance. You will have a much clearer picture of whether or not there are any quality risks in your supply chain after you have completed your supply chain risk assessment, which will be extremely beneficial.