Product Inspection

7/28/2019 Product Inspection

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PRODUCT INSPECTION

The four types of quality inspection services

Four types of quality inspection services are usually distinguished. Each one corresponds to a particular step in the

production process. They are all part of the toolbox of every importer, when it comes to buying in China and other low-

cost Asian countries.

I tried to summarize the options available to buyers, in a visual manner.

The four types of quality inspection services:

All quality inspection services are not adapted to the same situation:

1. A pre-production inspection tells the buyer which kind of raw materials (or components) will be used. Factories are

often suspected of lowering their costs by purchasing substandard materials, and this can be disastrous for the buyer

(e.g. the wrong kind of chip in an electronic device).

The pre-production inspection can also focus on the processes followed as production starts. Sometimes this can also

be critical, as Chinese factories very often cut corners and do not respect the buyers blueprints (e.g. patterns for

cutting fabric are received from the buyer, and they are modified to make the process easier and faster).

2. A during production inspection (often called DUPRO in the industry) allows the buyer to have an idea of average

product quality, early in the production cycle. It is the most useful and the most under-rated tool at the disposal of

importers, who often only rely on final inspections.

It usually takes place once some finished products have come out of the lines. If quality issues are found, what is

already produced might be re-workable, and corrective actions can be taken for the rest of the job. It gives buyers the

time to plan ahead, and even to avoid delays (repairs and re-inspections take much more time when problems are

noticed after all production is finished).

3. The final random inspection (also called pre-shipment inspection) is by far the most common type of QC check. It

takes place once 100% of shipment quantity is finished and at least 80% is packed, so it can be a real random

inspection (this is not exactly the case if quality is checked earlier earlier) and suppliers cannot play games.

It puts pressure on suppliers and gives power to buyers. Its objective is really to confirm a shipments quality, rather

than catching issues early. Therefore I usually advise my clients to complement final inspections with a DUPRO, to

avoid finding disasters at the last minute.

4. The container loading inspection, like the pre-production inspection, it is seldom used. But it can be a worthwhile

option in some specific cases.

It can be useful if the buyer has a precise loading plan and needs it to be respected very precisely (e.g. some cartons

are too fragile to be placed at the bottom), or if the packaging is not conventional (e.g. some garments hung on bars,

with no carton protection).


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It can also ensure that the right kind of products is shipped out in the right quantity, when the importer places no trust

in his supplier or when several suppliers bring their products for consolidation.

Only the most sensitive projects require all four types of inspection. Generally, only one or two of these tools are used,

depending on the risks identified by the buyer.

These quality inspection services are used mostly for consumer goods involving little customization. Different

approaches are often chosen for ensuring that industrial products are up to specs (much more attention is spent

during development and early production).

1. Pre-production inspection: what benefits for buyers?

A pre-production inspection takes place either before production starts (usually to check inputs) or at

the very beginning of final assembly.

It is the least frequently used among the four major types of quality inspections for most consumer products. On the

other hand, for industrial goods and for highly-customized products in general, production has to be followed very

closely at this stage.

When to conduct a pre-production inspection?

It really depends on what the buyer wants the inspector to see/check. I worked on a little sketch to represent the key

dates to watch closely:

Sending an inspector so early is also a way of ensuring that production starts without delay. If the factory wants to

give priority to another order, the simple fact that you monitor their progress will make them think twice about it.

What is checked during a pre-production inspection?

The buyer should specify clearly what the inspector must pay attention to.

Here are 4 things a P-P inspection can cover:

The materials/components: factories often use the cheapest materials they find, and they are not always aware of

restrictions in the importing country. If you dont want to run any risk, the inspector can draw a few samples at random

and send them to a testing laboratory. He can also verify their colors, sizes, weights, etc.

A prototype: sending a sample of large furniture is quite expensive. Why not send an inspector to check it and send

you photos, so that you can validate it as a reference for production without wasting time?

The making of a first product(s): sometimes the buyer cannot see a perfect sample until the right materials are

ordered and the bulk production processes are started. Here is the time to check whether the factory is capable of

making products that respect specifications.


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The processes of mass production: the buyer may have certain requirements about the way to produce, and needs to

check if they are implemented correctly.

What are the limits of a pre-production inspection?

The first pieces coming out of the production line are not necessarily a good reflection of average quality, especially

when there are lots of manual operations. An inspection during production might be more useful.

Sometimes the whole cycle takes several weeks, so the inspector cannot see any finished product at all. It might be

impossible to verify, or even get an idea about, the conformity to specifications just by looking at in-process inventory.

In some cases, a deceitful factory starts a short production run to make its customer happy, and then subcontracts the

rest in another workshop. I remember an importer who sent 2 technicians to China for the sole purpose of setting the

machines properly and checking the first days of work. I went to inspect the goods 3 weeks later, and there was no

doubt that what I saw had not been made on the machines set by the customers technicians.

2. Inspection during production: a necessity?

The inspection during production (or DUPRO) is the second most frequent type of QC inspection

after the final random inspection (see the list of the major types of quality inspection services).

Why is it often necessary?

Inspecting the goods after production is finished is often too late. In some cases, a whole order is found unsellable just

before shipment; the factory is unable to repair it; re-ordering materials and re-producing would take 2 months; and

the supplier refuses to do it for free.

After a few such experiences, many importers conclude that inspection should take place earlier (during production).

The objective is to catch quality issues before it is too late:

The few products that were already manufactured can (hopefully) be re-worked without inducing a delay;

The same issues can be avoided on the rest of production.

If quality problems are found at this stage, buyers are advised to force the supplier to work on a corrective action plan.It is a way to document an issue to make sure it is repaired appropriately and also avoided for repeat orders.

A side about communication with suppliers It is often better to frame it this way:

An inspector will come to check a few samples to help you adjust your internal QC efforts, so that both of us have no

last-minute surprise.

When to conduct an inspection during production?

The ideal timing actually depends on the product type and the experience of the factory. But a few rules of thumb can

be followed for 80% of consumer goods, if these conditions are true:

The factory is used to making this kind of product involving this level of complexity,

The cycle time to get the first finished products out of the lines is no more than 10 days.

In such cases, the below sketch is applicable:


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Lets take the example of an order of 20,000 pieces that takes 30 days to manufacture. If some finished products

appear 8 days after production started, and if 600 products are available for inspection 4 days later (in the early

morning), the good time for a DUPRO is 12 days after production start.

There are two dangers to avoid:

Checking too early

The very first products that get off the lines are not representative of average quality (they are usually worse). And thefactory needs to have time for their internal QC, or they will claim that of course, they would not ship this kind of

defects.

And if you think you can inspect products that have gone through a few processes but are not finished, youd better be

sure you can find quality issues this way. It depends on the type of products, but inspection firms usually dont have

the expertise to do that.

Checking too late

Most factories in Asia produce in very large batchesthis is why finished products often do not appear before one or

two weeks into production (and sometimes more).

If the buyer waits until 50% of the products are finished, it is likely that another 30% are already being processed. If

quality issues are found at that stage, they might already be present on 80% of the order!

What is checked during production?

Naturally, the inspector verifies that production is taking place in the workshop. He can also ask for the updated

production planning.

An inspection during production can be failed for three reasons:

1. Non-conformity to specs:

All the relevant aspects of the product (quantity, components, assembly, aesthetics, function, size, labeling) are

controlled, based on the buyers requirements.

2. Too many visual defects:

Based on the sampling plan, the inspector selects and checks some products, and then he compares the number of

defects to the AQL limits.

3. Failed on-site test(s):

Some simple tests can be done by the inspector in the factory (instead of sending samples to a laboratory). For

example: a full function check, to make sure that a DVD player really works.


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What are the limits of an inspection during production?

First, it is not enough in itself. A factory might identify some problems, hide them away from the inspector, and then

ship them out. This is why an inspection during production should be followed by a final random inspection, to confirm

average quality.

Second, for sensitive projects, the factory might need some guidance from the beginning of production. This is the

work of a technician capable of setting up processes as required.

One of my clients was sending some experienced sewing technicians to China: they were checking the way the fabric

was cut, and then the way the operators did they job. Unfortunately, they stopped doing it because Chinese factories

did not welcome their assistance and did not apply their suggestions It can only work with small workshops that

have few other customers.

Third, in certain cases production takes place on multiple lines or even in multiple factories. One inspector will not be

able to get an idea of average quality in one day He should stay for longer and monitor both production schedule

and quality.

Fourth, very often labeling and packing cannot be checked properly. Chinese factories tend to receive packing

accessories towards the end of production (because they delay payments of inputs as much as they can).

Use corrective actions plans to ensure effective repairing

You have placed orders with a Chinese supplier, you have appointed an inspection company, and they found someissues that need to be fixed before shipment. Sounds familiar?

Should you simply tell your supplier to re-work the products, and send an inspector again once its all done? This

hands-off strategy is chosen by many importers, who reason that their supplier is responsible for a finished product

and should find appropriate ways to deliver it.

However, in some cases the re-inspection report shows the same issues (not effectively repaired) or entirely new

issues (caused by poor rework). There can be several reasons for this, and here is the list of the most frequent ones:

Miscommunication between the salesperson you contact and the technicians in the factory.

Inapropriate measures taken for repairing, either mistakenly or consciously (to same money and time).

The refused products actually cannot be repaired properly, and have to be re-produced.

If you are in one of these situations, you will waste time and might argue with your supplier for nothing. But there is a

way to dramatically increase the chances of effective repairing.

What is a corrective action plan?

The buyer (or its appointed inspection company) can require the supplier to fill out a form called a corrective action

plan, or CAPA (for corrective action/preventive action). Here is a simple example, based on root cause analysis:


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After the supplier has filled it out, a quality engineer working for the buyer analyzes it (he can confirm it, refuse it, ask

for more information, or propose other solutions).

Benefits of using a corrective action plan

The supplier is forced to think of the root cause for the problems found, and communicate with the factory technicians

If they do their job correctly, they will be in the right frame of mind to find the most effective method of repairing.

They might do several tests to validate a method; buyers are advised to ask for photos (or even short videos) showing

such tests and their results.

If the factory does not want to do any rework, a sharp buyer should feel it right away: in that case the descriptions

tend to be sketchy and unclear If the document is sent back at all!

Another advantage is that it is a written document. The supplier has no excuse for not taking the necessary steps to

prevent the same issues on the following batches.

Asking the supplier to fill out a document costs nothing.

The limits of this tool

An importer with no knowledge about production will not be able to make full use of the corrective action plan, simply

because nobody will be able to confirm the suppliers suggestions. In this case, the supplier might invoke some

obscure technical reasontrue or notand confuse the buyer.

When the importer is assisted by a quality control firm, chances are better to validate an effective plan. However,

most QC firms inspect all kinds of consumer goods, and their local engineers probably have no deep knowledge about

the factorys processes and the materials that go into your product.

The most effective procedure is to send an engineer in the factory during the repairing work. She will record theactions undertaken and will check their result.

Overall, though, I think all buyers should include this tool in their buying procedure. Unacceptable quality? Please fil

out the corrective action plan, and well book a re-inspection at your cost.

3. Final random inspection: a guide for importers

The final random inspection is by far the most popular QC service in China (see my last post, where

listed the other major types of quality inspection services).


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It is suitable for nearly all types of consumer goods purchased in Asia. The final inspection report is typically used by

the importer to authorize shipment and trigger payment.

When to conduct a final random inspection?

It takes place at the end of production. The whole shipment quantity should be finished and available for sampling.

Packing should be nearly (at least 80%) done, so that the cartons can be counted.

If these conditions are respected, the factory cannot hide defective goods in a back room. So timing is of prime

I drew a little sketch to represent the key dates to watch closely Importance when it comes to final checking.

A final random inspection usually takes place in the factory, rather than in the forwarders warehouse (or nothing can

be repaired). So it is performed before the goods are sent out of the factory.

For urgent shipments, the inspection might occur a few hours before the products are loaded in a truck and then

shipped out by air freight. This is not ideal for several reasons:

The purchaser has no time to study the report and ask questions to the inspection firm or the supplier.

The inspector only has time to write a non-official report (handwritten and without photos), so misunderstandings can

occur.

In many cases, importers just tell their suppliers you ship if the QC report is passed and cannot be reached in timefor a decision. This puts a lot of pressure on the factory and the inspector. And what to do if the report is failed? Or if

something unexpected is found that might be unacceptable by the buyer?

If some quality issues are noticed, the factory might not even have a few hours to do a quick repairing!

This is why I always advise to set the final inspection at least 2 days before ex-factory date (e.g. on Monday if the ex-

factory date is on Wednesday).

Some importers take more precautions: they ask for final inspections at least 2 weeks before shipment date, to leave

room for potential re-work and re-inspections.

What is checked during a final random inspection?

Three types of issues can trigger the failure of the inspection, and potentially the refusal of the shipment by the

purchaser:

1. Conformity to specs:

All the relevant aspects of the product are controlled: quantity, components, assembly, aesthetics, function, size,

labeling, packaging, etc.

Ideally, the buyer has constituted a document listing all the specifications of the product to inspect, and these specs

become the inspectors checklist. When no such information is provided, the inspector simply collects information for

the buyers review.


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2. Number of visual defects:

Based on the sampling plan, the inspector selects a predefined number of products at random. He checks them one by

one, and counts the number of defects, which are compared to the AQL limits.

3. On-site tests:

Depending on the type of products, certain tests are included in the inspectors job. For example: a product drop test

on 3 samples, from 80cm high on concrete floor (if at least 1 sample breaks or does not function any more, the test is

failed).

What are the limits of a final random inspection?

Suppliers resent it

Importers often put a lot of pressure on suppliers, who risk a tough re-negotiation of prices (or even an orde

cancellation) if the products have serious quality problems. QC inspectors are seen as policemen, and might be bribed

if supervision is not sufficient.

No 100% guarantee

It is conducted on samples drawn randomly, not on the whole quantity. There is always a small chance that findings

are not applicable to the whole shipment, even if the so-called normal or tightened levels are followed.

Similarly, a dishonest factory can short-ship of switch the products just before shipment (unless the loading of the

goods is also monitored).

Too late

If the purchaser only sends inspectors after production is finished, it can be too late. Either because the defective

products have to be re-produced, or because re-work takes too long.

This is why I usually advise to conduct an inspection during production, in addition to a final random inspection

problems are caught early, and some suppliers see it as assistance rather than policing.

Final product inspections: should the whole order be ready?

Most product inspections take place after production is finished, and just before shipment. It is a convenient way of

checking whether all the product and packaging requirements are met.

However, timing is usually tight. The importer wants to get the goods and start selling them fast. And the supplier

wants to ship out and get the payment as early as possible.

A quality control inspection can usually take one day. But the buyer has to receive the QC report and sometimes

communicate with the supplier (e.g. please correct this and then you can ship, or I will accept if you guarantee that

you will compensate for any claim from my own buyers). So we usually advise importers to dedicate two full days for

each inspection.

However, it does not mean that the shipments are delayed by two days. Most inspection companies and mostimporters agree to start inspection after 100% of the quantity is finished and 80% of the order quantity is fully packed.

What is the advantage of starting before all packing is done?

The inspection can occur earlier. Sometimes it saves more than a day, because the last few products might be under

repairing and re-checking (it can take a lot of time). In that case, the final inspections do not delay shipment.

What if a supplier confirms a date, the inspector comes, and not enough products are ready?

This is a very important question. This situation occurs more often that one would thinkmore than 30% of the time.

Why?


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Many factories are poorly organized and tend to be too optimistic, so they are often behind schedule.

Something unexpected happens, for example a quality problem occurs because of a process late in the production

cycle. The factory can pack some acceptable products, but is still re-working the rest.

Some factories purposefully sort the defective pieces out and dont present them for inspection.

In such a situation, there is no easy decision. In theory, the inspection should be aborted because some defective

goods might not be part of the inspected lot.

But it is not so easy. Many buyers wouldnt understand why an inspection is aborted:

As mentioned above, they are in a hurry to see their goods shipped out.

Many buyers trust their suppliers and dont expect dishonest behavior.

They are afraid their supplier wont accept to pay for a second inspection.

So, what do we do in this case?

The inspector advises his supervisor. If the buyer can be reached by phone, the inspector goes on, but the report wil

be failed because the presented quantity is not up to the buyers requirement.

In parallel, it is very important for to let the buyers know about the risks. For example, I received some angry emails

from a client. Her own customer sent her claims because the products were full of stains. What really happened?

When the inspector arrived, nothing was packed yet.

Actually, the factory was sorting the goods that could be accepted from the ones that should be re-worked. But they

didnt tell the inspector about it.

The factory gave some samples to the inspector, who could not pick them at random. It was written in the report.

The buyer only looked at the defects and the photos, and it showed very few stains. So she asked for immediate

shipment, without a re-inspection.

The factory packed all the goods (including the ones with stains) without further rework and shipped out.

My conclusion is that there is no easy solution to this situation. We dont abort inspections, but the report is always

failed and we warn the buyer about these dangers.

The best is for the buyer to clearly specify her expectations:

Should 100% of the order quantity be presented packed, or is 80% enough?

If the expected quantity is not presented, should the inspector proceed or abort his job?

Then these requirements have to be clearly communicated to the supplier, with the understanding that non

compliance is cause for failure.

PS: why is this issue such a gray area?

Product inspections are, in their vast majority, performed according to the standard developed by the US Army during

World War II. This standard (MIL-STD 105E) gives clear guidelines on a number of topics. But some questions are not

answered, for instance everything related to packaging. Why? Because the US Army was generally receiving goods in

bulk.

-TRANSCRIPT:

How does a random quality inspection work?

FINAL RANDOM INSPECTIONS - How is quality controlled before shipment?


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Most consumer goods exported from low-cost Asia to Europe and the USA are inspected randomly. For example, for an

order of 8,000 pieces, only 200 samples are selected for inspection. How can an inspector draw valid conclusions afte

checking some pieces at random?

Here is how it works.

1. COMMUNICATION OF REQUIREMENTS

The purchaser describes his product: specifications, dimensions, labeling, packaging The more precise the

information, the more you take advantage of the inspection. If possible, an approved sample can be sent for the

inspectors reference.

2. AN INSPECTOR GOES TO THE FACTORY

When? After all production is finished and packed, and about 2 days before the goods leave the factory.

(In most cases, one inspector is enough)

3. QUANTITY VERIFICATION

The cartons are counted, to check if the whole quantity is presented. Then the inspector randomly selects a few

cartons, opens them, and checks their content.

4. RANDOM SELECTION OF SAMPLES

Some samples are taken from each of these cartons, totally randomly. The inspector follows industry-standard

statistical rules to ensure his findings are valid.

5. COSMETIC AND WORKMANSHIP CHECK

These samples are checked thoroughly for visual defects. A defect is an imperfection on the product (or its packaging)

The statistical rules provide a maximum number for each type of defect. If there are too many defects, the inspection

is failed.

6. CONFORMITY VERIFICATION

The inspector also checks if the goods presented by the factory correspond to the purchasers requirements. For

example, the products might be too small, in the wrong color, incorrectly labeled, or insufficiently protected.

7. TESTING IN THE FACTORY

The inspector performs some tests that are specific to the product, with the factorys equipment. Tests vary according

to the nature of the products. A few examples: checking if there is current leakage on an electrical device; checking if

a piece of furniture falls over easily; checking if the export carton is strong enough.

8. REPORT PREPARATION

The inspector issues a report that describes the situation and illustrates it with photos. It documents his findings about

presented quantity, visual defects, conformity to requirements, and on-site tests.

Here is my report. You have the info you need to take a decision (accept or refuse the shipment).

How to select the cartons to inspect in a factory

Lets say you intend to conduct a final random QC inspection, after all the products are packed.

(I already explained why the whole order should be ready for final QC).

You need to select a few cartons at random. What are the best practices to ensure that the samples you will check

represent the whole batch?

1. Dont come if nothing is packed.


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When the manufacturer is rushing the job and products are still under production (or rework), it is impossible to do a

good job. You will never be sure that your findings are representative of the whole order.

You cannot count how many pieces are on the lines. And chances are they will not let you interfere with their

production processes.

2. Make sure you can count and pick cartons randomly

If the warehouse is full and the factory prepared this kind of pile, you are in trouble.

It is impossible to separate each reference in a different pile, because of lack of space. Good luck to pick cartons fromall sides of the pile

Youll need to insist heavily on this point before going for the inspection. Sometimes they will make an effort for you

when they stack the cartons up.

3. Pick cartons in a stratified random manner

If 100% of the cartons are ready and they are nicely stacked, you can use the packing list to select the carton

numbers: 3, 10, 17, 23, 32, and so on. Two pieces of advice:

Avoid no arithmetical series in the list of numbers you select (2, 4, 6, 8).

The number of picked cartons should be at least the square root of the total number of cartons.

However, most of the time this is not practical. Warehouse workers spend a lot of time searching the right carton

numbers because their pile is a mess!

Most of the time, QC inspectors follow this logic:

Then the factory workers take the cartons that were selected, and bring them to the inspection area (under the

inspectors supervision, of course).

4. Following step: pick the products

In many cases, there will be more products in the inspection cartons than the number of inspection samples you need

to check.

The same logic applies: dont take all the products in one carton, or in the same place inside the cartons.

Is it clear?

Container loading inspection: a guide for importers

A lot of things can go wrong when a shipment is loaded in a container, or during transport. A good solution is to send a

technician conduct a container loading inspection. For some urgent shipments, it is performed in combination with a

final random inspection (see the list of the main types of quality inspection services).

The container loading inspection is not used as frequently as the final inspection, but I met some buyers who only

perform this type of quality check. For most importers, it is reserved for the most sensitive shipments.

When to conduct a container loading inspection?


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It usually takes place in the factory, when the products are loaded in container(s), in the exporting country.

Obviously, the whole shipment quantity should already be fully packed.

Here is a little sketch that shows the key dates to watch closely:

What is checked at the time of the loading of container(s)?

1. Conformity of products

The inspector can arrive a little in advance, open a few cartons, and check if the products and the inner packing areconform to what the buyer is expecting.

The objective is to ensure that the right kind of goods is shipped out. Of course he can only check a few samples of

each SKU, so he might not notice if 30% of the quantity is broken. Thats why a random inspection on a higher number

of samples (during production and/or after all is finished) is advised.

2. Outer packing

A quick look at the condition of export cartons is a must. The cartons might be very soft because of the wet weather,

or already crushed/bulged, or not properly closedthese are all red flags for the buyer. What will cartons look like after

several weeks in a container, and a few loadings/unloadings in trucks and distribution centers?

Other packing materials might be requirement by the buyer: palets, plastic wrap, etc. And for some large or fragile

products, some dunnage (eg. inflatable bags, kraft paper) might be necessary. Factories are always tempted to save

a few pennies on such accessories, with potentially disastrous consequences.

3. Total quantity and breakdown

The inspector can count the whole quantityit should be easy since it should all be packed in cartons. The number of

cartons appears on the bill of lading issued by the forwarder, but this type of inspection also ensures that cartons

contain the right quantity (and, if applicable, the right mix) of products.

4. The container(s)

When truck(s) arrive, the inspector takes a few minutes and examines the container(s) condition. If he sees potential

leaks or other issues, he should report it immediately and (if possible) ask for another container.

5. The handling and the loading process

The inspector supervises the loading. The buyer might have sent a loading plan, or some simple directives (e.g. the

heaviest cartons at the bottom).

He also makes sure the factory workers try to make all cartons fit nicely in the container. Sometimes they dont take

this pain, and they end up pushing (and crushing) cartons with a forklift

6. The seal

The inspector verifies that a proper seal closes the container before the products are driven away from the factory. It

also protects the exporter (under FOB or EXW terms), as it clarifies the responsibility of the forwarder.

When are container loading inspections the most useful?

If the loading way absolutely has to be respected (for example, jackets placed inside a plastic film and then hung up

on racks);

If products from different suppliers are consolidated by the buyer (or his local agent) into full containers: it is important

to check who brings what quantity of products;

If the buyer does not trust his supplier at all, and is afraid that the wrong type of products will be shipped out;

If the outer packing will be used as retail packing (a flooded container might be disastrous).


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What are the limits of a container loading inspection?

As noted above, it is not a replacement for more in-depth inspections.

It can only be used for confirming product quality (because nothing can be repaired at this stage, unless shipment is

suspended) and for putting pressure on the factory to load properly.

Four simple steps for starting to do quality control

Some importers have been buying from China for many years, and yet they have never done quality control in a

professional manner. The science behind inspection protocols seems complexnearly intimidating. Buyers dont knowwhere to start, and they dont know how their suppliers will react.

On the other hand, quality control is a necessity for most shipments. The constant search for cheaper suppliers, the

bad habit of subcontracting to lower-grade factories, and the high risk of communication mistakes, all make a strong

case for systematic inspections.

So, how to start? What are the first steps? After helping a few importers to start doing quality control, here are the first

four steps I recommend.

1. Establish clear expectations

Some buyers choose a sample, negotiate a price, and then wait for delivery. This might work for off-the-shelf

(standard) items with low quality/safety constraints, but not for most made-to-order products. And, think about it: onwhat basis will an inspector approveor rejecta production?

You should try to get perfect/golden samples (i.e. representative of what you expect to get out of bulk production), but

this is usually not enough. You also have to prepareor confirm, if your supplier accepts to do ita list of specifications

And these specs will become the checkpoints for the inspector. See this useful infographic: How to prepare a quality

inspection checklist.

2. Dont focus on final inspections

Final random inspections are a good tool for approving all aspects of production (total quantity, product specs

aesthetics, packaging). But they tend to put a lot pressure on the supplier: what happens if serious non-conformities

are found at that time? It is too late. The risks for a factory that gets caught are pretty high: re-work of the goods, re-

production, penalties, air freight, or even order cancellation

Instead of sending inspectors at the end (i.e. using them as policemen), try to send them when the goods are in

process. Issues can get caught and corrected early: this is not only an extra safety for the buyer, but also a helping

hand for the factory. This is how you should frame the discussion when you tell your suppliers about your QC

intentions.

Early inspections (during production) have several positive side effects. They are a way to ensure that production is

taking place in the right factory. Samples can be picked up randomly for lab testing. And it can prevent long shipment

delays if the factory corrects course immediately after quality issues are noticed.

Dont get me wrong, Chinese suppliers will not welcome this idea warmly. Many of them see QC inspectors as a

nuisance. I have seen long-time suppliers of an importer (more than five years) getting used to inspections But they

would never admit that it is a necessity. Which leads me to the third step.

3. Inspections are not an option

You should be careful about the signals you send to your suppliers. Small things can go a long way:

You should write Quality inspection required prior to shipment on your P/Os.

If you pay by letter of credit, you can require a passed inspection report from your nominated QC provider.

When you develop new products, ask extra samples for the inspectors use.

Keep track of the final inspection date and the shipment date, not just the shipment date.


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All this is quite standard, and thousands of importers follow these tips.

You still have the freedom not to book an inspection for a given shipment, or to do skip-lot inspections for the most

reliable suppliers. But you are the one to take this decision, not your suppliers. They should see inspectors as an

extension of your organization. On the other hand, you should make sure you work with professionals who will be

respected by factories.

4. Find the right balance between helping and arm-twisting

A buyer can play it tough, be easy on his suppliers, or find the right balance in between.

The tough way: a focus on final inspections performed rigidly.

Suppliers have no choice: either they comply with the rules, or they are charged penalties and/or re-inspection fees.

Charge-backs are triggered by late changes in planning or non-respect of quantity requirements, for example. The fees

are charged by the inspection firm to the importer, who re-invoices everything to the supplier.

It works well for large buyers who are adequately organized and who have the power to charge penalties

systematically. But small-and-medium-sized importers can seldom play this game.

The easy way: in-line inspections and/or tailored final inspections.

As noted above, inspections during production dont create much adversarial tension, and there is less timing

pressure.

Once production quality has been secured, final inspections can be a little less formal. Why? Because it is less risky to

loosen requirements about the proportion of presented products.

This easy way is only possible if you have at least *some* trust in your suppliers. It is technically possiblebut rather

difficultfor them to cheat.

Any other tips, anyone?

The 4 ways of checking product quality before shipment

I can see four solutions 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).

Inspections by external inspector(s) in the factory

This is the most common type of quality inspection service. An inspector goes in the factory, takes some samples

randomly (based on the AQL tables), and draws a conclusion about the whole batch.

It is typically performed by a third-party quality control agency, or by the buyers in-house QC staff.

In 80-90% of cases, it is conducted after production is finished. Depending on the report conclusion, the importer

accepts or rejects the shipment.

Pros:

The final random inspection is the standard way of checking quality. Suppliers are used to it.

It is easy to set up and relatively inexpensive, even with many different suppliers in many different places.

Cons:

The supplier might interfere in several ways: only showing a part of production (usually because they are late), bribing

the inspector, or shipping other products if the inspector does not stay until the container is sealed.

If the purchaser only sends an inspector after production is over, and if the inspection is failed, the supplier might

refuse to rework the goods. He might wait until the purchaser is obliged to deliver his own customers orders.

Final inspections on a platform


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This solution is popular with some large buyers, mostly from Japan.

Once the goods are completed, they are brought by the supplier to a platform usually a forwarder warehouse. A

certain number of cubic meters of storage is rented, as well as inspection room(s).

Platform inspections are conducted either on a randomly selected set of samples, or on 100% of the goods.

Pros:

Inspectors are more productive (no need to travel), and the goods can be shipped immediately after acceptance.

No risk of supplier interference.

Cons:

Suppliers often resent this solution. If the inspection is failed, they have to pay for the transport back to the factory,

sort & re-work the goods, and submit them again.

Not suitable for small and irregular volumes.

Piece-by-piece inspection in the factory

If you want to check 100% of production (once it is over), piece by piece inspection in the factory might be a good

idea.

You basically set up the final quality control line in the factory, with inspectors that are not on the manufacturers

payroll.

Pros:

The defect rate in the shipment is very close to zero after this 100% check.

The manufacturer sees what is rejected and needs to re-work it.

Cons:

Suitable only for large and regular volumes in one geographical area.

Can be expensive, depending on the number of inspectors to station in the factory

Training & auditing internal inspector(s) in the factory

Training an internal inspector is ideal for the following situation: you purchase more than 30% of a factorys output

you have been working with them for more than a year, you trust them very much, and you need better reporting on

your production (both on quality and on timing).

Once an in-house inspector (on the factorys payroll) has been trained and is dedicated to you, the key is to set up a

reporting & auditing system. Then, the only ongoing cost is to audit his work (once every couple of weeks at the

beginning, and less often if it runs fine).

Pros:

Much lower cost than sending third-party inspectors

In addition to controlling the products quality, the inspector can report on production status

Cons:

You need a high level of cooperation from the manufacturer (no interference at all)

There might be many complications if you purchase through a trading company


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There are other solutions beyond inspection

As Deming wrote, the ideal is to cease dependence on inspection to achieve quality. Eliminate the need for massive

inspection by building quality into the product in the first place.

You can do it by improving the reliability of the manufacturing process, and by reducing risks during product design

But this is outside the scope of this article

Documents

Product Inspection