Nearly 2 years ago I wrote When To Do a Random AQL Inspection vs. Check 100% of the Goods. It is a good overview of these 2 options: Send inspector(s) to your supplier's factory for checking random samples Have the manufacturer of the goods deliver them to a facility (often called an "inspection center" or a "QC platform") where all the pieces will be checked This is a topic we explain regularly to our clients who use our contract packaging and contract assembly services. And my … [Read more...]
Service Providers: Escape the Commoditization Trap
We compete with a number of other service providers, and over the years I have seen stark changes happen in some verticals. An interesting case study is the TIC (Testing, Inspection, Certification) industry. In 2005, importers were paying 500+ USD per man-day for QC inspections on consumer goods. Over the years, salaries and other costs went up, but the market price tended to go down. (I wrote before why some buyers always want a lower price.) What are the reasons? It is a combination of … [Read more...]
Understanding Product QC Inspections: What Is in a Man-Day?
A conversation earlier today made me realize that some buyers who haven’t spent much time in Chinese factories have some common misconceptions. For example, “Chinese production operators are forced to work 12 hours a day, in a case of modern slavery”, “all metal factories do all the steps from casting/forging to surface treatments and all the way to assembly and packing”, and so on. Another misconception is that a good inspector will spend 8-10 hours working at the factory. This is what I … [Read more...]
How to set up a Receiving Inspection: Checklist, Procedure, Reporting form
I have written extensively about pre-shipment inspections (before, during, or after production), always from the perspective of the buyer checking what a supplier is doing; but I noticed that I haven't covered the receiving inspection (also called incoming quality inspections). However, that's a really important topic, so let's get into how to set one up here... … [Read more...]
A Simple AQL Calculator To Prepare Your Product Inspections
One of our developers prepared this simple AQL calculator for Sofeast. You can use it instead of reading the AQL tables to quickly produce your sample size and permissible defect number. … [Read more...]
When To Do a Random AQL Inspection vs. Check 100% of the Goods
First, let me get one thing out of the way: not all batches need to be checked. If a manufacturer has great systems and processes, and if they have a history of complying with your quality standard, there is usually no reason to send quality inspectors to their facility. Similarly, if you can easily return the whole batch and it can be reworked quickly, you probably don't want to spend resources on checking whether they did as promised. Now, let's assume you do want confirmation of … [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...]
Why the AQL tables are not in favor of the buyer
This is the third and last video about the ANSI tables (also known as “AQL tables”). As I explained in the last video, these sampling schemes were designed for very stable relationships, where the manufacturer keeps making the same products and keeps shipping them regularly (e.g. twice a month) to the same customer. As a consequence, the assumption is that quality is under control. And an inspection is used to catch the big accidents. What it means is that the statistics are way, way … [Read more...]
The 4 ways of checking product quality before shipment
I can see four key product inspection solutions that importers should use for checking product quality before the goods are shipped out (remember, it is extremely hard to send a container of defective products back to China). … [Read more...]
How much does a Chinese inspector cost?
Some importers wonder how much a Chinese inspector costs to hire full time. The short answer is: More than you might think. It's more than just their salary, so in this post, I'll explore the 5 types of people you might hire as an inspector, their pros and cons, approximate salaries, and then break down how to calculate their full cost to your business as a new hire. … [Read more...]