Monday, December 3, 2018

How to Ensure the Effectiveness of QC Inspections in China

Quality Control Tips

As I wrote on many occasions on this blog, there are few caseswhere an importer doesn’t need a quality inspection before shipment.
So, if inspections are such an important step in the supply chain, what can be done to ensure they actually defend you and catch the problems you don’t want to receive? There are actually a lot of factors at play.

1. An appropriate quality control plan

If you are worried about poor workmanship, is a final inspection (after all is finished and packed) sufficient? Probably not. An inspection during production is probably more appropriate, in order to catch issues while they can still be corrected.
Another element of the QC plan is the inspection settings. Sometimes, an inspection might necessitate more than 1 day of work (for example if the products are complex or if there are many SKUs). Don’t force inspectors to cut corners, and give them the time they need if you can afford the extra cost.

2. Providing context about the final use of the product

If the product is not very common, or is used for a very specific application, make sure to give some context to your supplier and to the inspection company.
For example, what is the most important? What should be the main focus of the inspection? The look? The workmanship? Some specific functions? The way the product fits with another product? …

3. No excessive pressure on the supplier

We often see purchasers who say to their suppliers “if this order is rejected, we cancel it”.
In this case, the supplier feels like a criminal chased by the police. After all, there are always a few defects here and there, right? It means they have all the incentives to resort to cheating and bribery!

4. Sufficient advance notice from the client

The inspection company will probably have questions when they receive your booking (more on the documents they need below).
Understanding what you have in mind, especially if the product is technical, might take time. Do not ask them to rush. Try to give them bookings a week in advance, especially for products that are new to them.

5. Sufficient advance notice from the supplier

Sometimes the supplier writes “we need you to come tomorrow, and we need to ship the goods tomorrow at 7pm or we will miss the deadline for the vessel desired by the customer”.
It puts the QC firm in an uncomfortable situation. What if they don’t have any competent inspector on that day in that area? Should they send an unqualified employee? Or a freelancer who can’t really be controlled?
I usually advise my clients to charge a penalty of 100 USD (or more) to the supplier in case a minimum advance notice is not respected. Surprisingly, a small sum like this gets their attention and improves compliance.

6. One document containing clear and precise requirements

Try to keep one master document where you describe the product (and packing) you expect to receive. Ideally it should be built as a checklist, so you already know how how your product will be checked.
Why one document?
The more difficult it is for inspectors to find the information, the higher the risk of overlooking important requirements. Remember, an inspection is sometimes performed in a hostile environment, with supplier representatives who keep asking questions and commenting on everything.

7. Perfect sample(s) approved by the client

It is always good to make sure the inspector has a perfect sample against which to check the production batch. Many problems, large and small, are found this way. (This is particularly important in China because the tendency I have observed over and over is to focus on the small details and to forget about the big picture. Right size of each part, right weight… right color? Nearly forgot to check that one!)
Make sure the supplier can’t play with the perfect samples. if they are to be collected in the factory, promise a penalty to the supplier if they are not presented at the time of inspection or if the seal is broken.

8. One document containing examples of defects

This is the cherry on top of the cake for the inspector because it annihilates 90% of disputes with manufacturers.
If you list the most frequent defects and if you categorize them (what is critical vs. what is major vs. what is minor), you are removing a lot of subjectivity from the QC process.

9. Favorable payment terms

Some of our clients have negotiated very favorable terms. A few of them pay 100% of the order after inspection in their warehouse!
It gives suppliers less of an incentive to cheat. If problems slip through pre-shipment QC, they will be caught upon arrival and they will be much more costly. (Surprisingly few suppliers understand this fully, but overall their attitude is better).
A few final thoughts on this subject:
  • All of the above-mentioned points depend on the client. Only poorly organized importers complain about their suppliers every day.
  • Creating good conditions for QC inspections also helps the manufacturer understand what you want. All the above 9 points are good practices in all situations and should not be seen as “what the quality assurance guys want”.
What do you think?

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