Before selecting a supplier, the factory in which production will take should be evaluated to ensure it meets the buyer’s requirements. A factory audit usually takes place after a group of potential suppliers have been narrowed down to a few serious candidates. Factory audits have two chief goals: to confirm that the factory is capable of delivering the right product in the right amount of time, and to encourage progress over time by identifying areas that need improvement.
The audit is like a snapshot in time, measuring the state of everything at that moment. The main objectives are to detect gaps in the factory’s quality system and to evaluate reliability. During quality and capability audits, the auditor assesses where the factory is in terms of its procedures and what’s being produced. A checklist is followed and the verifications of incoming materials, in-process products, and finished goods are observed. The factory’s official licenses and certifications are requested and evidence of other customer orders is reviewed. For audits incorporating workplace conditions, verifications focus on things like pay records, worker interviews, and workshop observations.
The auditor describes the main types of products seen on the lines, as well as the production organization – including facilities, equipment, workers, and product flows. Some key questions an auditor should ask include:
- Is this factory capable of making the buyer’s products?
- Does this factory focus on low cost or can it handle complex workmanship?
- What is the rough capacity (in number of pieces per week) for the buyer’s products?
Once all of the appropriate information is gathered, claims by the factory should be supported by written records.
Factory audits measure the present processes and production quality of a factory and provide the auditor with an accurate glimpse of how well manufacturing procedures and regulations are being followed. This will help the buyer determine whether or not the supplier is a good fit for them.