How to inspect the factory like a professional?

By justchinait
December 1, 2020

Supplier inspection is an integral part of supplier evaluation. The evaluation is based on all influencing factors that affect the supplier’s supply, such as document system, on-site operation, equipment management, and material control.

Whether you are purchasing or business, whether you are a boss or an employee, in the enterprise’s business management activities, you should go to the factory or accept the inspection of others. So what is the purpose of the factory inspection? The process of factory inspection and how to achieve the goal of factory inspection? What are the common traps that will mislead us in our judgment on the factory inspection results?

What is the purpose of the factory inspection?

1. Buyers hope to learn more about their suppliers through factory inspections, and obtain specific information on a production scale, management level, technical level, and labor-management relations, and compare this information with their supplier standards for a comprehensive evaluation, and then based on the assessment The results are selected. The factory inspection report provides a basis for the buyer to judge whether the supplier can cooperate for a long time.

2. Factory inspection can also help buyers maintain a good reputation and sustainable development. It is often seen that some foreign media expose the use of child labor, prison labor, or severe labor exploitation by a famous brand. As a result, these brands suffer not only huge fines but also boycotts from consumers.

Nowadays, factory inspections are the needs of purchasing companies themselves and the necessary measures forced by European and American laws. Of course, these explanations are a bit too written. Most of our people at the present stage have a straightforward purpose of inspecting the factory. Firstly, to see whether the factory exists; secondly, to see whether the actual situation of the factory is related to the promotional materials and business. The staff said so well.

The factory inspection process and how to achieve the factory inspection goal?

1. Communication between purchasing personnel and suppliers

Explain in advance the factory inspection time and personnel composition, as well as those things that require the factory’s cooperation during the factory inspection. Some regular manufacturers need to provide their necessary information, such as business license, tax registration, bank account, Etc, before the factory inspection. Some also need to fill in a detailed written review provided by the purchaser. Report. For example, I used to work in a Taiwan-funded factory sony came to our company to inspect the factory. Before the inspection, I sent out a factory inspection report of theirs. The content is very detailed. There are hundreds of items—the company’s production and marketing. , Engineering, quality, warehousing, personnel, and other links have corresponding review items.

2. The first meeting for factory inspection

Brief introduction of the personnel of both parties. Arrange the accompanying staff and schedule the factory inspection. This is the same as the ISO audit routine.

3. Review of the document system

Whether the company’s document system is complete, for example, if the company has a purchasing department, is there a document on purchasing activities? For instance, if the company has design and development, is there a document system to form a program document for the design and development activities? If there is no crucial document, it is a significant defect.

4. On-site review

Mainly go to the scene to see, such as workshops, warehouses, 5S, fire-fighting facilities, dangerous goods identification, material identification, floor plans, Etc. For example, whether the machine maintenance form is filled in truthfully. No one signed Etc.

5. Interviews with workers Interviews with managers

The selection of the object of the worker interview can be randomly selected from the company roster, or it can be selected in a biased manner, such as deliberately selecting 16-18-year-old juvenile workers or those whose job numbers are recorded by the auditor during the on-site inspection worker. The content of the interview is related to wages, working hours, and working environment. To protect the rights and interests of workers, the interview process is strictly confidential to the factory. Neither factory management personnel are allowed to be present or stay in the area near the interview room. If you still don’t understand some questions during the factory inspection, you can communicate with the company’s management again to get a deeper understanding of the situation.

6. Summary meeting

The advantages and disadvantages seen during the factory audit are summarized. This summary will be confirmed and signed on the spot to the factory in written form. How to change the non-conformities, when to improve, who will complete the information, Etc, will be sent to the factory for confirmation within a specified period. Do not rule out the possibility of the second and third factory inspections.

The customer inspection process is the same as the ISO inspection, but there is one difference. ISO comes to audit the factory to charge the company’s fee, help the company find shortcomings, improve the weaknesses, and finally meet the requirements. Customers come to inspect the factory mainly to see whether the company meets its needs and whether you are eligible to become their qualified supplier. He does not charge you, so the inspection is more stringent than ISO.

The process is like this, so how can the customer’s factory inspectors see the company’s real face? Personal actual combat experience is summarized as follows:

1. File View

There is no need to look at too many program files. The game of program files is also easy. For factories that can pass ISO, there is no problem in this regard. As the reviewer, remember to read fewer documents and more records. See if they follow the text.

2. A single record is meaningless

To review according to a clue. For example, you asked if the purchasing department has a list of qualified suppliers? Is there a production schedule and order review? Is there any incoming inspection? Asking them to find these separate materials can be provided. If this is not possible, such a factory does not need to review it.

How should it be tried?

It’s effortless. For example, randomly select a customer order, ask the business department to provide a review report of this order, ask the planning department to give the material requirement planning table corresponding to this order, and ask the purchasing department to provide a purchase this order. The purchasing department is required to ensure whether the vendors on these purchase orders are on the list of qualified suppliers. The quality department provides the incoming inspection report of these materials. The engineering department offers the corresponding SOP. The production department provides the production daily report corresponding to the production plan, Etc. Wait. If you can’t find the problem by checking it like this, it means that such a factory is quite reliable.

3. Focus on-site review

The most important thing is whether there is advanced production equipment inspection equipment.

A few people can write documents beautifully, but it is not so easy to cheat at the scene. Especially some blind spots. Such as toilets, such as stairs, such as the origin of models on machinery and equipment. The effect of surprise inspection is.

4. Interviews with workers Interviews with managers

You can interview managers to find answers from their answers. Interviews with employees are more relevant to listen than to ask. The reviewer does not want someone from the factory to accompany it. It is more effective to go to the staff restaurant to choose a place to have a meal with the staff and chat casually than you ask for a day.

The following common pitfalls will mislead us in our judgment of the audit results:

1. Registered capital

Many friends think that more registered capital means that the factory has strength. This is not the case. Whether there is a 100w or 1000w in China, a company with a registered capital of 100w or 1000w can be registered. Still, it is only necessary to spend more money on the company registered as an agent. He does not need to take out 100w or 1000w to register first.

2. Results of third-party review

①Such as ISO inspection and QS inspection.

It is too easy to get an ISO certificate in China now, you can buy one for 1-2w. So I really can’t imagine that cheap ISO certificate. However, there is also a small trick. The more the ISO certificate of the big factory, the more useful it is because the ISO auditors don’t want to smash their signs. The more well-known the factory, the stricter the audit, and the less famous factory they are. You can sell ISO certificates.

②Perfect file system

The document is written too well, and the execution is too bad. Even the file is the same thing as the actual operation. To cope with the review, some factories specialize in making ISO documents. Still, no one knows how much the people who stay in the office and write reports understand the company’s actual operation.

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