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Ardencraft Technology

The Importance of Quality System Audits and Factory Inspections

Updated: Apr 9

Introduction

In today's global market, the pursuit of dependable manufacturing partners is a critical strategy for businesses aiming to develop high-quality products cost-effectively. This holds especially true when engaging with suppliers in countries renowned for their extensive manufacturing capabilities, such as China. To empower businesses with the knowledge and insights needed to select the right partners, this comprehensive blog post explores the significance of Quality System Audits (QSA). It reviews an audit report for a factory in Guangdong, China, specializing in the production of alkaline and carbon batteries.

Quality System Audits

What is the Quality System Audit?

Ardencraft's Quality System Audit, or QSA, is a valuable service designed to assess potential suppliers' manufacturing capabilities and quality systems, aligning them with ISO 9001 standards. Selecting a QSA can be a strategic move for businesses seeking to partner with reliable and capable suppliers. By evaluating the effectiveness of the supplier's organizational and quality system, as well as their capacity to meet production requirements, a QSA offers multiple advantages:


Avoiding Wasted Resources: A QSA prevents businesses from entrusting large orders to factories that cannot meet production needs or maintain consistent product quality. This, in turn, helps in preventing financial and time wastage.


Ensuring Supplier Improvement: For businesses already collaborating with suppliers, a QSA becomes a tool to gauge progress and improvements in manufacturing processes over time.


Verification of Claims: This substantiates that a supplier's organization and quality system align with their claims, reducing the risks associated with miscommunication and misunderstandings.


What Type of Factory Should a QSA Be Performed On?

A QSA is suitable for factories of all sizes when assessing their potential as reliable partners. It serves especially well when verifying if the manufacturing organization and quality processes align with specific business requirements. It's essential to note that a QSA is a highly focused and efficient process, concentrating on the processes relevant to the intended product.


Type of Factory

What is Included in a QSA Report?

A QSA report offers a comprehensive overview of the audited factory. It includes:

  • Factory Profile: This section furnishes details about the factory, encompassing its establishment date, annual turnover, and affiliations with business groups.

  • Detailed Staff Count: The number of employees in various roles within the factory is presented here.

  • Products Currently Produced: An overview of the products presently manufactured in the factory.

  • Observation of One Production Line: This section provides detailed insights into a specific production line, including process steps, machine types and quantities, and a capacity evaluation.

  • Audit of the Entire Quality System: The factory's quality management system is thoroughly evaluated, covering aspects like supplier qualification, internal quality control activities, data utilization for issue resolution, work instructions, and more.

  • Overview of Personal Safety Issues: This section describes the factory's safety measures and compliance.

  • Photos of Facilities: Visual documentation of the factory's infrastructure, encompassing the building, production workshop, warehouse, and office areas.

  • Photos of Important Documents: Images of crucial documents, including business licenses, management system certificates, and other relevant certificates.

How Much Does It Cost?

Ardencraft offers QSA services at a rate of 595 GBP per man-day for audits conducted in areas near their auditors in China. In cases where audits are performed in other locations, additional travel expenses may apply. This pricing typically covers a one-day on-site audit, which is sufficient for most clients' needs. The one-day audit is particularly effective under specific conditions:

  • It serves as a second-party audit designed to evaluate a factory's system maturity.

  • The client specifies the intended product type for purchase, allowing the auditor to focus on a particular workshop area.

  • The audit is conducted at a single facility.

Evaluating a Factory in Guangdong, China: A Comprehensive Audit Report

In the manufacturing landscape, ensuring product reliability and quality is of paramount importance. To provide a practical illustration of these principles, we turn our attention to a factory located in Guangdong, China, specializing in the production of alkaline and carbon batteries. By reviewing a comprehensive audit report of this facility, we aim to offer valuable insights into its strengths and areas that necessitate improvement and serve as an invaluable resource for businesses contemplating sourcing products from this factory.


Audit Report

General Information

  • Service No.: 191009C12

  • Date: 18 Oct. 2019

  • Supplier Name: [Confidential]

  • Factory Name: [Confidential]

  • Factory Address: [Confidential], Guangdong province, China

  • Supplier Contact: [Confidential]

  • Supplier Tel. No.: [Confidential]

  • Supplier Email: [Confidential]

  • Nearest International Shipping Port: Nansha Seaport, Guangzhou City, Guangdong Province, China

  • Nearest International Airport: Guangzhou International Airport

  • Main Products: Alkaline battery; Carbon battery

Reliability Evaluation: The factory's reliability is evaluated based on several key aspects, resulting in an overall grade of 71 out of 100. A breakdown of the key evaluation areas reveals areas of strength and areas in need of improvement:


General Organization, Housekeeping, and Working Environment (Grade: 11/15): The factory exhibits good organization and maintains a reasonably clean working environment. While machines are well-maintained, some areas require attention.


Understanding the Buyer’s Requirements (Grade: 7/10): The factory does not adequately prepare a clear list of customer requirements before production, and operators are not fully informed about these requirements.


Suppliers of Materials/Components (Grade: 4/5): The factory evaluates and approves its suppliers, but there is no comprehensive evaluation report or on-site audit record for suppliers.


Incoming Quality Control (IQC) (Grade: 9/10): The factory checks materials and components against specifications and conducts tests upon reception. IQC results are recorded, and dedicated quality control employees handle IQC.


Organization of In-House Production (Grade: 3/10): The factory has clear procedures for operators, but certain instructions are lacking. Work in progress is stored in plastic containers.


In-Process Quality Control (IPQC) (Grade: 7/10): The factory performs various control steps during production, but it does not include cleanliness and organization in its quality control points for IPQC.


Subcontracted Production (Grade: 0/0): The factory asserts that it does not subcontract any part of production for the client's products.


Final Quality Control (FQC) (Grade: 8/10): FQC is conducted after packing is completed, involving random sampling. Inspection levels and AQL limits are specified, and dedicated quality control employees oversee FQC.


Instruments & Machines (Grade: 7/10): The factory routinely checks and calibrates instruments, but some instruments, such as humidity and temperature meters, lack calibration.


Prevention of Problems (Grade: 7/10): The factory has documented procedures for addressing quality issues and performing root cause analysis. However, production is not halted when quality issues are identified, and there is no evidence of seeking customer permission for process changes.


Personal Safety (Grade: 8/10): The factory maintains fire retardants, fire extinguishers, and personal protective equipment. Stairs and pathways are clear and unobstructed.

Total Grade: 71/100


Auditor’s Recommendations

Auditor’s Recommendations:

The auditor provides several recommendations to address issues identified during the audit. The top three severe issues to address include:

  1. Including cleanliness and organization in the quality control points for in-process QC.

  2. Calibrating instruments, such as humidity and temperature meters.

  3. Maintaining proper documentation for Engineering Change Notices (ECN) or Engineering Change Requests (ECR).

Intended Production:

The client plans to produce alkaline batteries at this factory.


Capacity Projection:

The observed production line can manufacture 521,400 pieces per day, while the entire factory can produce 1,042,800 pieces per day for the client's intended product.


Conclusion

In the realm of manufacturing, ensuring product reliability and quality is crucial. Quality System Audits (QSA) offer a reliable method to evaluate potential suppliers, ensuring they meet the required quality and capacity standards. By opting for a QSA, businesses can avoid potential production setbacks and costly errors when collaborating with suppliers. Additionally, factory audits, like the one conducted in Guangdong, China, provide valuable insights into the strengths and areas for improvement in a manufacturing facility. By combining QSA and factory inspections, businesses can make informed decisions about their manufacturing partners, enhancing their efficiency and product quality.

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