According to UN data, China represents 28.7% of the world’s manufacturing output. China says that it has reached the top of the manufacturing world, which is true. The Economist reports that China produced over 25% of the world’s products in 2023. This includes 80% of the world’s air conditioners, 60% of shoes, 70% of mobile phones, and more. China can make almost anything for less money than other countries. As a result, a lot of private-label products on the market are likely made in China. So, when you are looking for a Chinese supplier. Usually, you will find that many suppliers can make your products. But it’s hard work to find the right one.
As a business owner, you take a big risk every time you work with a new Chinese factory. Do they have a real business? Can they meet your requirements for quality? So, the ideal method is to do a factory audit to test your new Chinese suppliers. If you are looking into new Chinese manufacturers or evaluating current ones. You should think about doing a factory audit in China. They are especially crucial now because supply-related difficulties have affected manufacturing. So, we are here to help you deal with this problem. Here are a few of the most important points you need to know about “How to audit Chinese factories.” Let’s start!
What is a Chinese Factory Audit?
A factory audit is the word used to describe the in-person inspection of a factory. The point of a China factory audit is to ensure the supplier can complete your order exactly how you want it. So, the focus of a factory audit is typically limited to a single type of product. Suppose you wanted to manufacture electric bikes. You have to track down a factory that makes electric bikes and skateboards. Then, the auditor will try to figure out if the maker has the skills and capacity to make the electric bikes.
You, a coworker, or a qualified outside auditor may go to the facility in person to do an audit. The auditor will enter the factory and use a checklist to gather information. The Chinese factory audit checklist usually follows the client’s international guidelines. The factory audit ends with a report that details all findings. It gives a detailed look at what the manufacturers are able to do. A thorough factory audit is crucial to any good quality assurance system. It helps to reduce risks and boost the performance of the production chain.
How Do You Audit a Chinese Factory?
Manufacturer Identification (Pre-Audit)
You should identify potential suppliers before doing a factory audit. This process can involve more than one thing. It involves calling companies or sending them emails to ask them important questions. You must also review factory-sent samples. It is helpful to have all of the information you got during this pre-audit process during the audit.
Get General Information
The next phase in an audit of a Chinese factory is to find out basic information about the company. These usually include who owns it, where it is, how big it is, any titles it has, and more. This can help you determine the factory’s legal status and whether or not it follows local laws.
Technical Quality Assurance
Technical quality auditing is a detailed look at how the factory makes sure the quality is good. This will reveal the facility’s management, maintenance, and equipment control methods. The relevant standards might differ from one business or product to another. For example, the plane industry uses AS9001, and the medical sector follows ISO13485. ISO9001 is by far the most popular method to rate the Quality Management System of a Chinese company. You can find out the manufacturer’s strengths and flaws by comparing it to this standard. Also, it shows how well the maker can make your order on time, at the right quality, and for the right price.
Auditing Social Compliance
The goal of a social compliance check is to find out if a factory follows all the rules of law and society. SA8000 is a frequently applied auditing standard for this. If you use this approach to check out a factory in China. This lets you figure out if the factory’s working conditions are fair and legal. This is a must if you want to protect your brand’s reputation. Social Compliance Auditing includes a few basic details. Such as:
- Labor Policies (for example, signs of child labor, forced labor)
- Safety policies (like an evacuation plan, ways to avoid fires, and protective equipment)
- Environmental policies (like how to get rid of trash and handle harsh chemicals)
- Working hours (such as reviewing documents and interviewing employees)
- Salary (paying a reasonable rate and reviewing payment records)
Infrastructure, Cleanliness, and Security
You need to ask about facility power outages and look over any records. Also, you need to find out if the factory has any way to make power and, if so, how much it can make. It’s important to take note of the infrastructure and machinery as a whole. It’s also important to look at the facilities of the area, such as the roads, ports, and more. In terms of security, you should check the areas and reports of the security guards. If you need to, look for other security steps like automatic alarms and CCTV cameras.
Production and Capability
It might involve a thorough audit to track manufacturing capacity and production. You should have enough information to decide whether or not to work with this business in the future. It’s important that when you look at capability, you do so in relation to the product you want to make. Also, you should note how the factory keeps production records and how it is set up.
Quality Assurance and Meet Product Standards
You must make sure that the QC and the production department are separate. Also, there is documented evidence to support it. The auditor must review all paperwork and records related to IQC, IPQC, and FQC. Your product category must be considered while assessing the factory’s testing areas. You should also find out if the factory knows the product standards and safety rules in your country.
Conclusion
Sourcing products from China is now recognized as an essential part of global trade. Global businesses must ensure that the products they buy are reliable and secure. They are also created ethically and follow all necessary standards and rules. This is why a China factory audit is necessary. An audit of a Chinese factory can help reduce the risks that come with new suppliers. These factory audits will give you a third-party opinion of your supplier’s capabilities. You can determine whether they are able to make things that fulfil your demands.
This article explains the important steps to do a factory audit in China. When picking a Chinese factory, you should also think about your needs and plans for the future. Factory audits are on-site inspections. You can use it to see if a manufacturer can fulfil your order under your specifications. So, we listed a few auditing tips to help you figure out how to audit Chinese factories. We hope that you will find this article informative and helpful.
