In many industries, one of the most common reasons for defective goods is dust contamination, and they have adopted different cleanliness standards (see the Wikipedia page on cleanrooms and factory cleanliness). If you have visited Chinese factories in certain industries, you have probably seen their efforts in that regard. During our factory audits, we always give a grade about general organization and cleanliness. What advice can I offer about maintaining a clean factory without spending … [Read more...]
3 Common Ways Factories Try to Cheat Inspectors/Auditors
Every day in China, in Vietnam, in Bangladesh, and in India, thousands of inspectors and auditors take a bus or a car to a factory. And, in some of those factories, managers are plotting how to cheat those unwelcome visitors. Let's look at 3 very common ways this is done, so you are warned and ready to avoid unscrupulous suppliers like this... … [Read more...]
Factory Audit Tips: 10 Signs of a Bad ISO 9001 Implementation
A few days ago, I wrote about the basics of ISO 9001 -- both the standard and the certification/registration process. I got some comments on Linkedin about how useless ISO 9001 is. It is useless indeed in many manufacturing facilities I have visited, and the key reasons are: Poor implementation (because managers want to take shortcuts), combined with Inadequate auditing (lack of understanding of processes and of what is important, and lax enforcement of the standard by many registrar … [Read more...]
Quality Auditor vs. Consultant Working on Improvements
Many people think auditors go on site, look at the situation, and suggest improvements. However, it is not that simple. Auditors acting as consultants can cause several types of issues. And yet, the line between these 2 roles is often very thin... I have spent time working in each of these roles, and I wrote my observations below. Let's look at each separately. What is the purpose of an audit? To establish to what extent an organization complies with a set of requirements (often based on an … [Read more...]
How To See if a Chinese Manufacturer Is Capable of Improving in the Future?
Last week I wrote about the best way to have a Chinese supplier take responsibility. However, the most important question, I feel, is how to work with manufacturers that will keep improving over time. And it all starts from supplier selection. If at the sourcing stage, you don't try to work with people and companies that will tend to improve, you are sabotaging all your other efforts. Here are 5 areas I'd look at. … [Read more...]
3 Types of Factory Evaluations for Purchasing in China
More and more importers discover that they can appoint an auditing agency to evaluate factories before they issue an order. But not all these evaluation services are equally helpful. I distinguish between 3 broad types of factory evaluations. Each type is suitable for different needs on the importer's side. 1. Basic Factory Evaluation The purpose is to collect basic information about the manufacturer, such as: What is the address? What do the buildings look like? How big is it? What … [Read more...]
How Factory Audits, Inspections, and Lab Tests Fit Together
I am often asked questions such as “what is the difference between audits and inspections” or "why are lab tests necessary if you send an inspector". In this article, I will show how these three types of services fit together. Let's start with the service that is needed even before a purchase order is issued. 1. Factory audits Auditors usually check a factory for capacity and reliability. They verify: The facilities and equipment (can they make this product, and do they have the … [Read more...]
Are Technical Auditors Necessary for ISO 9001 Audits?
Many people think the ISO 9001 standard is pretty generic is applicable to all industries (that's mostly correct), so a good auditor can check any type of business when performing ISO 9001 audits (I don't agree with that). And the ISO 19011 standard, which provides guidelines for auditors and auditor management, contains this often-overlooked clause: If all the necessary competence is not covered by the auditors in the audit team, technical experts with additional competence should be … [Read more...]
Auditing a small Chinese factory: does it make sense?
I see some well-meaning importers who pay for factory audits based on a checklist inspired by the ISO9001 standard. However, I am really questioning the value of auditing a small factory (below 400-600 workers). Don't get me wrong, I am not suggesting that purchasers roll the dice. They should try to visit the factories before placing orders. It is always good to see what equipment the factory will use, and what kind of products they are manufacturing. My point is that a formal audit will … [Read more...]
ISO 9000 factory audits for your China suppliers
Factory audits in China and other Asian countries are often (loosely) based on a checklist inspired by the ISO 9000 series. That means the main part of these audits consists in looking for holes in the factory's quality system. Why are ISO 9000 factory audits important? Because they directly impact the factory's reliability (how likely are they to have quality problems and to miss deadlines). Performing such an audit on a small workshop is over-kill. They probably have no system at all, … [Read more...]