What is Examined During a China Factory Audit 2021
What is a China factory audit?
The on-site evaluation of a factory is termed as a factory audit. The purpose of a factory audit is to verify whether a manufacturer is skillful enough to make a specific order as per your requirements.
Therefore, a factory audit usually concentrates on one specific product (category). For example, if you want to produce e-bikes, you found a manufacturer that produces electric bikes and electric skateboards. The auditor will then concentrate on evaluating the manufacturer’s ability and capacity to produce your particular order of e-bikes.
During a factory audit, the auditor (which can be you, a colleague, or a third-party professional auditor) will travel to the factory. When it arrived, the auditor will collect information about the factory and work using a checklist of items that the factory should follow.
Generally, this checklist is based on the client’s international standards and requirements, which can be you. In the end, all findings of the factory audit are documented in a report to provide a detailed overview of the manufacturers’ capacity and capabilities.
Why does China need a factory audit checklist?
A factory audit allows you to compare different manufacturers and choose the appropriate one for you depending upon the facility’s facility, quality & experience.
What is examined during a China factory audit?
Factory requirements vary across different industries. For clothing brands, it has become very much important that the working conditions inside a factory should be ethical. And if you buy medical equipment, you need to make sure your manufacturer works with strict rules and regulations. To serve these needs, different types of factory audits exist, focusing on a specific area.
The three most common factory audits in China are listed below:
Initial Factory Evaluation
The Initial Factory Evaluation is the most basic factory audit among the three. It focuses on typical but vitally significant aspects of a manufacturer for the supplier selection process. The audit report generally includes, but is not limited to:
- Factory profile (address, major products, the main export countries).
- Staff count (number of workers for production, engineers, QC personnel).
- Production process (describing the production steps).
- Machinery & Equipment (condition of machines, their type, and number).
- Quality Management (work procedures, work instructions).
- Official Documents (licenses & certificates)
- Facility (images of the workshop, QC room & warehouse).
Technical Quality Audit
A Technical Quality Audit provides a more clear evaluation of the factory’s equipment maintenance, management techniques, and quality of the system, making it easy for you to determine the manufacturer’s strengths & weaknesses.
It includes the same information, and also, the auditor evaluates:
- Quality Management (objectives & action plans).
- Supplier Selection (procedures in progress to vet sub-suppliers).
- Internal QC (quality procedures & revisions).
- Capacity (comparing the same products from different manufacturers).
- Use of Data (documentation & analysis of inspection yields, defect rates, resource needs, corrective actions).
- Equipment Maintenance (calibration records & certification of equipment).
- Employee training ( training records & work instructions).
Social Compliance Audit
A Social Compliance Audit focuses on a factory’s consent with social, environmental, and legal standards. This is essential for the protection of your brand. A Social Compliance Audit includes:
- Labor Policies (child labor, forced labor).
- Safety Policies (evacuation plan & fire prevention).
- Environmental Policies (waste disposal, hazardous chemicals & energy use).
- Health & Safety (in workshops & buildings).
- Working hours (reviewing documents & employee interviews).
- Compensation (respecting minimum wages, reviewing payment records)
Global Sourcing is becoming an important part of international business. Companies running global businesses must make sure the goods they buy are of good quality, safe, compliant with associated requirements and guidance and that they have been created in ethically and environmentally friendly conditions. This is why you need China factory audit to avoid Chinese suppliers scams.
To discuss how we can help you achieve your sustainable strategy throughout your supply chain, contact us now!