A few months back, I wrote about how some buyers can no longer put up with their suppliers' quality issues. And I often lament on the poor state of quality systems here. In this article I'd like to mention the other enormous source of frustration for foreign buyers: the high minimum order quantities (MOQs) and the long lead times. High MOQs and long lead times are tightly linked They come from the same underlying issue: the "big batch & long queue" mentality. Industrial engineers, as … [Read more...]
The Sad State of Quality Systems in Most Chinese Factories
The sad truth in China is, 5% of the manufacturers are doing a good job consistently, and the rest have ups & downs that irritate and frighten Western customers. And, of those 5% that do a good job consistently, 0.5% do so because of good systems and the other 4.5% do so because operations are not very complex and management watches what happens carefully. Yes, I made these numbers up. But that's my impression after 12 years spent working here across multiple sectors (from apparel to … [Read more...]
Do Good Manufacturing Practices (GMP) Audits Drive Improvement?
In any industry, there are generally-accepted 'good manufacturing practices' (or GMP). And customers often audit their suppliers' operations by using those GMPs as a checklist. First, what are those 'good manufacturing practices'? Think of it as the requirements of ISO 9001 (which are vague enough to be applicable in any type of organization) + some specific manufacturing arrangements. For general consumer goods, GMPs include batch-level traceability, identification of all materials, … [Read more...]
No Process Improvement Action Plan in Chinese Factories? Why?
In good factories, the leaders look at the future and wonder how to make their company stronger. They usually have an action plan that will support process improvement. That's how they will improve their quality, cut lead times, and contain costs. When I go to Chinese factories, managers very seldom tell me "here is our action plan". They seem to respond to every day's urgencies: A supplier is late in delivering some materials, and the customer will ask us to send the goods by air? Let's … [Read more...]
Avoiding Plastic Injection Molding Defects: Key Preventive Measures
Plastic injection molding is one of the most common production processes here in China. And most Chinese manufacturers are not very good at setting up and maintaining their presses and their molds... If the right polymer is used, and if the factory adopts the right process control measures, there is a low probability for things to go wrong. I have met many manufacturers that don't understand that... There are a multitude reasons for parts to be rejected. Some of the more common defects are … [Read more...]
Sourcing from China 101, Part 15: How a Factory Can Improve Productivity
This is the last part in this 15-part series. Here we'll focus on labor productivity in factories. Why is it important for buyers? Because, unless your suppliers make progress in this area in the next 5-10 years, many of them will go out of business. Admittedly, if you are not their biggest customer, they will not follow your suggestions of re-organizing production, but it is your responsibility to open their minds about best-in-class practices. I have prepared a simple explanation of … [Read more...]
Sourcing from China 101, Part 14: How a Factory Can Improve Quality
I bet you are tired of hearing your Chinese suppliers say “this is made by hand, so avoiding defects is impossible”. So am I, because it’s so wrong. Some small factories have decreased their defect rate below 50 parts per million (that’s 0.005%). Some of them, in Japan, employs housewives in the countryside, and their operations are all manual! So, how do they get so close to zero defects? The answer is by applying a set of principles. 1. Faster production cycles help improve … [Read more...]
Sourcing from China 101, Part 13: The 5 Steps to Developing a Chinese Supplier
Many importers work in one or two product categories. They buy 80% of their volume from 1-4 manufacturers. And many of them make the same mistake: they don’t try to improve their CURRENT suppliers. Instead, they spend time sourcing NEW factories and training them to their requirements, and consequently they are taking risks on the first order from a new supplier. Is there an alternative? Sure. A supplier development program follows 5 steps. And it starts at the sourcing phase! 1. … [Read more...]
What Can Quality Professionals Do When Most Suppliers Are Off (CNY)?
Do you find yourself with some time on your hands, when your Chinese suppliers are enjoying their New Year holiday? Why not take advantage of it and do some work that will be important to your company's success? Here are 4 suggestions. 1. Data analyses for better decisions If you can easily extract all the issues from QC reports (or if you can use an intern to do that work), this will be well worth your efforts. Ideally, you would classify the past issues per product, per supplier … [Read more...]
Do You Focus on Product Redesign Rather than Process Improvement?
Let's say you develop a custom product (based on your own design) with a manufacturing partner in China. After 2 years, they push for a price increase because their costs are going up. And let's say you cannot raise your purchasing price. You have to find ways to keep costs down in manufacturing. There is definitely a place for product redesign. It can lead to enormous savings. And often, a Chinese supplier can give suggestions, such as: A cheaper grade of steel would do the work just … [Read more...]
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