How Futian Sourcing Help You Do Factory Audit in China
Futian sourcing is a reliable and trusted service to import goods from china. We have our presence in China, which gives us an upper hand over others. We serve big brands and importers. The scope of our services is vast, and we help you in different aspects of sourcing from factory audits to shipment and delivery. So far as factory audit is concerned, we have expertise in hardliness and various types of goods. We have personalization, speed, and industry knowledge. It is the core of our values. We offer a variety of services for factory audits, and we may conduct different types of audits, whether product quality or social compatibility.
Factory Audit
Why Audit Your Supplier’s Factory?
A factory audit is an essential part of the product sourcing process. You may have worked with the utmost diligence and got a supplier to work with. It sounds good on papers, and there is everything that your client needs. The products meet the standard, and you see it as a great choice. Now, are you ready to place an order? Not at all! There is something important you need to do before you order the supplier to manufacture goods for you. You need to go to a factory audit.
Factory audit
A factory audit is an assessment of products in the factory at a particular time. A skilled auditor visits the factory and verifies the production process and checks product quality and standards. In this way, they certify that everything that the company claims is true and up to mark. It is a fact that the manufacturer always needs to win the projects, and for this reason, there may be some exaggerations about the factory’s standards and capacity. They may always say yes to every question. The factory audit may address some crucial issues.
- Does the factory have enough capability to manufacture your products?
- Are they capable of delivering the goods according to the timeline and schedule?
When you have performed a factory audit, you may understand all aspects very thoroughly. You may identify the issues and areas where the factory may make improvements. In this way, you may encourage the progress over time. You may perform an audit in the following areas.
Capability
You may see whether the factory has the necessary equipment and tools required to produce the goods. In this way, you may also know about the standard and quality of products.
Capacity
You may understand the ability of a factory to manufacture a product at a specific time.
What are the 7 Most Common Types of Factory Audits?
When you are buying products from a manufacturer or a supplier, you need to ensure that they are reliable. The factory can produce your required products before you integrate them into your business. The factory audits are the best choice for this purpose, and you get a full insight into the sourcing and operational policies of the supplier. It makes sure that that are n complete alignment with your business and brand image.
Here are seven main types of factory audit
Food Supplier Audits
The food hygiene system and proper manufacturing measures are assessed during this type of audit. This audit is related to food suppliers and food items for manufacturing facilities. Food quality and safety are the primary focus of this audit. It ensures that food facilities meet specific quality standards. There are some advantages to food supplier audits.
- It demonstrates your commitment to food items ‘items’ quality and standards.
- It is vital for the improvement of operational efficiency
- It checks whether you follow government regulations and requirements of the market.
Quality system audit
The main focus of quality system audit measures the capability of manufacturer quality management systems. The evaluation of the supplier is done following ISO 9001 standards. It also assists in determining the strong customer focus, motivation, and application of a quality management system. This audit helps in assessing the quality of goods for a more extended period. The process approach and continual improvements are the real goals of the quality system audit.
Top 10 Factory Audit Checklist Essentials
Zero tolerance requirements for severe violations
You may look over some deviations in some checkpoints on your factory audit list. But there are some deviations where importer does not tolerate. If there is anything adverse, it will give the fail results for a quality audit. So zero-tolerance requirement for severe violation of regulations is an integral part of factory audit.
Necessary facilities, environment and equipment maintenance
The quality audit process includes the tour of the full factory. It assesses the overall audit. The walkthrough shows the operational capacity of the facility. The auditor records the findings in the checklist that covers global production and operations.
Quality management system organization
The quality audit checklist should also include a part to cover the quality management system of the supplier. It tells whether you meet the quality standards. You need to check the QMS development and ISO 9001 certification… the recent policy documentation and other factors are also considered.
Incoming quality controls for materials and components
Material quality assessment is also part of the checklist for factory audits. The quality of the content is an essential consideration because it affects quality. In becomes prominent when it is difficult to rework. It gives an insight into the quality control standards of your supplier.
Quality management system organization
An efficient and working checklist also includes an action in which there are specifications about the quality management system. It determines if the supplier meets your specific requirements. It covers some essential topics and includes top management and certifications.
Incoming quality controls for materials and components
The quality audit checklist must cover some important things related to incoming material inspection, material tagging, and material storage. There may be a clear and evident process to select and evaluate the quality performance system.
During production, controls to identify quality issues
If you have an active production control system, you may locate quality-related points. The quality audit checklist includes the verified factory personnel and includes safety checks of production units. There should be a suitable sampling plan, also.
Finished goods controls and inspection
This part of the audit checklist includes the quality control process after completion of production. The issues related to post-production are vital. There may be defects that appear later and may cause problems. The random inspection is essential to remove these issues.
Lab testing capabilities and collaborations with third parties
Testing capabilities are essential. With proper tests, you have an insight into material purity and quality. It gives you an insight into the elasticity and resilience of the final product. It gives you information about the safety and stability of goods. You may answer these questions only with lab testing. So the lab testing is an integral part of the audit checklist.
HR recruitment and training practices
There may be some issues with the recruitment of staff for a factory. If turnover is higher, it may lead to unnecessary delays and quality complications. For these reasons, a quality checklist should include the HR system and recruitment procedure.
Engineering, research and design capabilities
It is crucial to have skilled engineering and design professionals on site. These resources are vita for starting new projects and develop innovative products. You need to assess these capacities if you are going to source products. So capabilities are an essential part of the checklist.
Business development and management behavior
Effective communication with buyers is crucial for business development. The professional process of order and professional demeanor is vital for sourcing. The audit checklist is essential. It answers some critical questions.
Manufacturing Audit
Manufacturing audit is crucial for determining the capacity of a factory. The auditor evaluates the capability of suppliers in some specific areas related to products you are sourcing.
The factory audit is vital for determining whether the products meet your specifications or not. Is it capable of addressing costly disruptions, and will it? Factory audit has some obvious benefits that are as under:
- It verifies that the facilities at the factory are suitable for making your products.
- With a manufacturing audit, you may align the companies sourcing policies with your suppliers.
- You may identify and lessen the potential quality, operational, and ethical risks.
- You may evaluate the competency of the factory.
Social compliance audit
We may term social compliance audit of a factory as an ethical audit or social accountability audit also. Most souring agents rely on this type of factory audit to assess the suppliers working conditions and compliance with international labor regulations. The retailers and brands may address the soil compliance risks that may affect the reputation of a factory. There are some unethical labor practices and factory disasters that may result in a negative reputation of brands. There are different international standards about the social compliance of manufacturing facilities. This type of audit is essential for product sourcing.
Good manufacturing practices (GMP) audit
A GMP audit to check compliance with regulations shows if you have full control over the process and quality management system of a factory. There is an inspection of the facility and going through the scope and standards of good manufacturing practices. You need to fix the following six points to verify;
- Manufacturing site
- Tools and equipment
- Raw material
- Skill human resources
- Finished goods
- Quality control system
There is a comprehensive assessment of violations and deficiencies during the audit process. This type of audit is crucial for sourcing of products.
Environmental Audits
This type of audit is related to ecological compatibility. He auditor conducts audits to check whether the factory is complying with the environmental laws and standards placed by environment agencies. There are different thresholds and criteria for this type of inspection. An ISO 1400 international standards is an essential audit in these types of factory audits. You need to check whether there is a reliable environmental management system placed in the factory. During the audit, you need to check emission, energy usage, and other factors during the process.
Customs-Trade Partnership against Terrorism (C-TPAT) Audit
This audit is crucial for the improvement of security related to terrorism. C-TPAT audit type audit focuses on security issues in private businesses and supply chains. The US custom and border department lead the regulations of such an audit. The audit program emphasizes enhanced security measures related to physical and virtual aspects. This audit has some extraordinary benefits, including.
- Enhancement of security to your working facility
- The integrity of security practices with your partners
- Proper border security
How to Conduct a Manufacturing Audit
a manufacturing audit aims at assessing the process to verify the intended performance. The process gives some results and determines the accuracy and effectiveness of the managed procedure. For this purpose, you should follow some basic rules and procedures. You need to correct the problems quickly and be consistent in the findings. It ensures that there is an ongoing improvement, and there should be some corrective measures.
Here is the process of manufacturing audit
- You should determine priority areas for the audit process. High-risk factors are essential in this respect.
- You need to select an auditing team. The team needs to be skilled in the manufacturing and related areas.
- You need to determine the frequency of audit and establish a timeline for the audit process.
- Creating a schedule is essential. You need to communicate with the workforce and set up a program.
- You need to record the issues that you find during the audit process.
- After you have identified the problem, you need to provide some corrective measures to solve the issues.
- Follow up monitoring is the final step in the manufacturing audit process.
Factory audit
A factory audit verifies the processing activity and quality system to check whether it complies with the requirements. A factory audit may be general or specific for a particular product.
Inspections
The inspection is related to checking goods for compliance with your determined specifications and needs. It focuses on the assessment of the appearance, construction, and essential functions of a product. There is a difference between factory audit and inspection.
3 Meaningful Ways Factory Audits Differ from Factory Inspections
- Audits are About the Long Term, and Inspections are About the Short Term: a factory audit is long term process and involves a comprehensive assessment of different aspects of production, management, and other issues. While factory inspections are short term and may focus on the production and quality of a product.
- Audits are About the Big Picture; Inspections are About the Little Picture: the factory audit has a broad scope and assesses the overall quality. There are different types of factory audits, and it shows the picture of a bag of the product site while factory inspection is not so broad and focuses mainly on the quality of a product.
- Audits Help You Establish the Right Relationships, Inspections Help You Make Sure you’re on Track: audits are related to your relationship with the supplier. You consider different aspects of your contract after an audit. In contrast, the inspection is related to ensuring that you are on Track and the products meet your requirements.
Factory audit of social responsibility
If you want a formal review of the supplier’s endeavors, processes, and code of conduct related to social responsibility, you may conduct a social audit of the factory.
In this type of audit, you get an insight into the impact of the factory and its product on society. You assess the goal and benchmarks for social responsibility.
Strategy and Vision
the aim of social responsibility audit is a balance between profitability and social responsibility. It may be an internal valuation of the business and its effects on society. It helps his business in meeting their standards. It is about the public image of a factory and supplier. It rests on measurable goals and benchmarks.
Factory audit of security
Security audit has become essential in the backdrop f global terrorism. In this scenario, security has some benefits and advantages to lower restrictions on goods shipping. You may reduce the number of CBP examinations and go for the front of the line inspection of your goods. It imparts you exemptions from stratified exams and shortens wait times at the border. The conduct of these audits ensures that you are capable of meeting the minimum requirements of anti-terrorism programs.
Global Security Verification (GSV Audit)
This audit is related to the methodology for promoting best practices in global business and trade. It will enable the importers to mitigate security risks that are related to cross border transport of goods. It may help in utilizing the resources and innovations to beat untoward incidents of terrorism. There are different global supply chain initiatives to partner with international suppliers and importers to go for the worldwide security verification process.
Customs-Trade Partnership against Terrorism (C-TPAT) Audit:
this program is a multilayered cargo enforcement strategy to mitigate threats of terrorism. According to the terms of this program. CBP works with the trade community to strengthen international supply chains and enhance border security. This audit is almost essential for importing goods to the United States.
Factory audit by big brands
Factory audit has significance for big brands. The big brands have strict criteria for factory audits, and they adhere to these criteria. These companies know if there is a failure, it could not maintain their reputation as a big company. Along with prices and quality, the factory audit is an essential part of big businesses. But why big brands choose to conduct a factory audit. There are some reasons. In general terms, the big companies have their code of conduct. They perform the factory audit after a specific time and duration.
Usually, the big brands have the following audits
Social Compliance Audit
For big brands, social compliance audit is necessary to maintain their reputation and popularity. It is a fact that social compliance audit imparts a trust to a big company. The big companies have their human resource and social compatibility features, and they see whether they are following these norms.
Quality Control Audit
big businesses have their quality control departments, and they conduct the quality control audit to maintain the quality of products. It is quality that makes them accessible, and a quality control audit is crucial for this purpose.
Security Audit
Security and safety have biome more critical due to modern terrorism background. The companies may conduct a security audit on their own, or the bolder agencies may make it compulsory for different brands.
The 5 Common Social Compliance Audit Standards in China
a social compliance audit is an effective method to assess your supplier. You may identify compliance issues. In China, there are different social compliance audit standards. These audit types are good starting points for importers going for the first time to import goods from china. These types of audits set a strong foundation for compliance with local laws. The social audit helps importers to see whether the Chinese factories comply with local laws and international human rights norms. The audits are necessary for Chinese companies. Here are five social audits in china to check social responsibility:
- Sedex
- ICT (International Council of Toy Industries)
- SA8000
- EICC (Electronic Industry Citizenship Coalition)
- WRAP (Worldwide Responsible Accredited Production)
Conclusion
If you are an importer and a sourcing agency, the factory audit is vital for the delivery of quality goods and compatibility with internal regulations related to product quality social responsibility and anti-terror regulations. For this purpose, I recommend Futian sourcing the best sourcing and audit service.
