Factory Audit Report

Transcription

1 Factory Audit Report AsiaInspection Limited. All rights reserved Client Anonymous Client AI Service No R-us Supplier Shenzhen Yes-Hope Auditor Rick Guo Factory Shenzhen Kingda Co., Ltd. Audit Date 14/Feb/2014 General Overview of the Audit Findings Fields Amount Score Theoretical max Score / 5 Weight / 5 Weighted Score Work Flow and Organizational Charts 18 / Production Lines - Capacity 30 / Factory Facilities - Machinery Condition 33 / Quality Assurance System 28 / Supply Chain Management 4 / R&D Sampling Capacity 13 / RoHS Standard 2 / Special Feature 1-7 / / / / / Total Overall Score 6.78/10 Important remarks For Production lines / Capacity As per the factory management statement, procurement time for raw materials is within one week. However, no records were available. For Quality Assurance System & Related Certificates (optional) The QC staff are not entirely independent of those in production. The QC Manager has sufficient authority to halt production. For Supply Chain Management (optional) 1. The factory could only provide the suppliers list for review, but did not manage them sufficiently well. 2. The factory could only provide the sub-contractors list to review, but did not manage them sufficiently well. For R & D / Sampling capacity (optional) 1. The factory has a R&D Department. Remark: The R&D Department is only responsible for existing products. Research on new items is undertaken by the AI-QR-16-01A Page 1 of 34

2 R & D Departments of other companies AsiaInspection Limited. All rights reserved 2. According to the factory management statement, the approval sample lead time is between 7 to 30 days, and is mainly determined by the raw material preparation time. According to the factory management statement, the procurement time of the raw materials is about one week. However, no record was available. For RoHS Standards (optional) 1. The factory did not provide any RoHS certificate for the raw materials or finished products, but it was able to provide reports from its own RoHS testing machine, that the products had passed the relevant tests. 2. The factory stated that most of their products were compliant with RoHS standards, but did not distinguish between the products. No RoHS labels were affixed to the products. Content : General Overview of the Audit Findings... 1 Important remarks... 1 Content :... 2 PART FACTORY PROFILE... 4 General Information... 4 Communication Infrastructure... 4 Products / Markets... 5 Recommendations / Credentials... 5 Building :... 5 PART FACTORY ORGANIZATION AND PRODUCTION PROCESS... 8 Factory Organization Chart... 8 Production Workflow Chart... 9 PART PRODUCTION LINES / CAPACITY Production Area Condition PART FACTORY FACILITIES / MACHINERY CONDITIONS Main Machines for Production... Error! Bookmark not defined. Machine Documentation Warehouse/Factory Condition Sample Room Condition Public Power Supply Shipment Capabilities PART QUALITY ASSURANCE SYSTEM & RELATED CERTIFICATES (OPTIONAL) Export License AI-QR-16-01A Page 2 of 34

3 Quality System Management Quality System Management PART SUPPLY CHAIN MANAGEMENT (OPTIONAL) PART R & D / SAMPLING CAPACITY (OPTIONAL) R & D Facilities PART ROHS STANDARDS (OPTIONAL) Knowledge & Awareness RoHS Products Management of RoHS and Non-RoHS Products & Components PART SPECIFIC INSTRUCTIONS FROM CLIENT (OPTIONAL) Specific Instructions PART SYNOPSIS OF MAJOR FACTS AND PROBLEMS FOUND Capacity to Manufacture Client s Product: (Part 2 and 3) Factory Behavior during Audit: Number of Days Spent: 1 Auditor : Rick Guo Supervisor:Jacky Ren AI-QR-16-01A Page 3 of 34

4 Part 1 Factory Profile General Information 1 Date of foundation Feb 02, Legal status Private 3 Location 2-3/F, Building 1, Wanxia Industrial Park, Gonghetongfuyu Industrial Zone, ShaJing Street, Baoan District, Shenzhen City, Guangdong Province, China 4 GPS location 22 46'11'' N/S '48'' E/W 5 Area 2,500 sqm 6 Number of employees Total Male Female 71 Peak Season (about 180) Breakdown of employees Managers Engineering Admin QA/QC Workers Number of shifts Normal working hours: 1 shift : 08:00-12:00 ;13:30-17:30 9 Factory owner Ms. Jenny Su ; 10 Factory manager Mr. Su Yu ; 11 Main products Headsets, Earphones 12 Main market USA, Europe, Asia 13 Business license Certificate No: Issued Date: Expiration Date: 14 Annual turnover for the past 3 years Feb 02, 2007 Longterm 2013 :8.4 million USD 2012 : 7.4 million USD Turnover 2011 :7.2 million USD Communication infrastructure 15 Telephone sets Factory Tel : 3 sets, mainline: Fax machine Factory Fax : 2 sets, ; Homepage AI-QR-16-01A Page 4 of 34

5 Products / Markets Product type Major customer (name) Market location Not provided for reasons of confidentiality. Yearly order Qty Recommendations / credentials Company Name Country Contact Products Details (date ) Shenzhen Yes-Hope Co., Ltd. China Mr. John Yin Unlimited Registered number: ; Registered date: Oct 22, 2002 Building: Factory Name Factory Name Factory view Factory Office Area AI-QR-16-01A Page 5 of 34

6 Business License Production Lines: Workshop Workshop AI-QR-16-01A Page 6 of 34

7 Workshop Workshop Workshop Workshop Workshop Workshop AI-QR-16-01A Page 7 of 34

8 Part 2 Factory Organization and Production Process Factory Organization Chart Questions Findings/Comments Score Does the factory have a clear Organization Chart? Is it available to all employees? Are all employees aware of each others' responsibilities? The departments as well as their responsibilities are clearly defined The organization chart is available to all employees. Most workers are not aware of the responsibilities of their direct managers, supervisors or department director. 5 /5 4 /5 General Manager Management Representative Manufacture Manager Finance Manager PMC QC Production Engineering Procurement Admin Sales Finance Dept. Dept. Dept. Dept. Dept. Dept. Dept. Dept. Organization Chart AI-QR-16-01A Page 8 of 34

9 Production Workflow Chart Questions Findings/Comments Score Does the factory have a written Production The Production Process is clear, with each production step Process? identified. 4 /5 Is the Production Process followed? The Production Process is followed rigidly. 5 /5 Actual found Factory Production Process: Wire stripping Soldering Pin welding Injection Assembly Speaker soldering Cover assembly Function test Packing FQC Spot Checks Storage OQC Spot checks Delivery Production Workflow Chart Actual Score Theoretical Max 18 /20 AI-QR-16-01A Page 9 of 34

10 Part 3 Production Lines / Capacity Daily Output Check: Questions Findings/Comments Is there a running production in the factory during the Yes, the production lines are running. Audit? START FINISH Total time 10:00 12:00 2 hours Finished products Finished products Output 0 pcs 2,450 pcs 2,450 pcs What is the overall capacity? What is the theoretical maximum capacity? Daily Weekly 9,800 pcs 58,800 pcs Daily Weekly 11,400 pcs 68,461 pcs Questions Findings / Comments Score Is the production capacity sufficient to The factory has sufficient production capacity to fulfill the 5 /5 cover potential clients' orders? clients' orders. Pictures Workshop view Workshop view AI-QR-16-01A Page 10 of 34

11 Lead times for client s production: Questions Findings / Comments Score What is the raw material procurement According to the factory management statement, the time? Are records available? procurement time of raw material is within one week. However, no records were available. 2 /5 Production area Condition Questions Findings/Comments Score Is the assembly line tidy and organized? The productions lines and warehouse are clean and tidy. The 3 /5 workstations are clean, and the intermediate products are well stored. Is the production area well lighted? The production area and the workstations are well lit. 4 /5 Is the production area suitable; ventilated; The production area is ventilated, and the working conditions 4 /5 cooled & heated? are acceptable. Are production lines laid out in an efficient The production line is highly efficient, with no bottlenecks and 4 /5 manner? not many intermediate products lying around. Does the production area have floor There are perfect floor markings, with specific corridors for 4 /5 markings? machines and workers, respectively. Are corridors free from obstruction? All the corridors are large and free. 4 /5 Pictures Productions lines are well lit Productions lines are clean AI-QR-16-01A Page 11 of 34

12 Warehouse was clean Warehouse was clean Special Remarks on this section According to the Factory Management Statement, the procurement time for raw materials is within one week. However, no records were available. Actual Score Theoretical Max 30 /40 AI-QR-16-01A Page 12 of 34

13 Part 4 Factory Facilities / Machinery Conditions Main Machines for Production Maintenance Condition/ N Types of Machinery No. of / Calibration Service o. machines record time Name Brand Country Yes No Score 1 Injection molding XINWEI Not 6 Average; Yes 3 5 machine provided more than 2 years 2 Wire stripping machine TUOZHAN Not 3 Average; Yes 3 5 provided more than 3 years 3 High frequency welding HENGXIN Not 2 Average; Yes 3 5 machine G provided more than 2 years 4 Ultrasonic welding JZCH Not 1 Average; Yes 3 5 machine provided more than 4 years 5 Sealing machine HENGXIN Not 6 Average; Yes 3 5 G provided more than 3 years 6 Binding machine WENZHOU Not provided 2 Average; more than 2 years Yes 3 5 Score (overall) 3 /5 Machine Documentation Questions Findings/Comments Score Does the factory have an equipment and Complete and updated equipment/machinery lists are machinery list? available. 4 /5 Do the machines have instructions? Several machines have instruction and procedure manuals Procedure Manual? Available for workers? available for workers. 4 /5 AI-QR-16-01A Page 13 of 34

14 Pictures Work instructions Maintenance records Warehouse/Factory Conditions Questions Findings/Comments Score Are the storerooms/warehouse tidy? Can The warehouse is tidy, and the products well packed and 4 /5 they stock all the potential orders? labeled. There are specific traffic corridors. Estimated Warehouse Capacity: 1,200 sqm Sample Room Condition Questions Findings/Comments Score Does the factory have a tidy sample room? There is a tidy sample room within the factory area. 5 /5 AI-QR-16-01A Page 14 of 34

15 Related Pictures: Warehouse / Sample room Warehouse view Warehouse view Sample room view Sample room view Public Power Supply Questions Findings/Comments Score Connected? Yes 5 /5 Does the factory employ an electrician with certificate? The factory employs a certified electrician. 5 /5 AI-QR-16-01A Page 15 of 34

16 Frequent power outage in the area? Does the factory have a backup electric power generator? (Enquired with several people: workers & management) Electric power generator count: There was no backup electric power generator, but the factory seldom faces an electrical power outage. N/A 3 /5 Shipment Capabilities Questions What are the delivery / loading conditions? How far is the nearest port / airport? Findings/Comments Average conditions Shenzhen Airport: About 0.5 hour (by road). Shenzhen Yantian Seaport: about 2 hours (by road). Actual Score Theoretical Max 33 /40 AI-QR-16-01A Page 16 of 34

17 Part 5 Quality Assurance System & Related Certificates (optional) Export License Date of the license: Registered number: ; Comments: Registered date:oct 22, 2002 Export License Export License Quality System Management Questions Findings/Comments Score Does the management have an understanding of ISO 9001 or any similar quality management system? Is the certificate available? The factory management has an understanding of ISO9001, and the factory does indeed have ISO9001:2008 certification. 4 /5 AI-QR-16-01A Page 17 of 34

18 Quality System Management Questions Findings/Comments Score Are clear instructions visible at all work stations? Clear instructions can be seen at most of the work stations. 4 /5 AI-QR-16-01A Page 18 of 34

19 Are the QC staff fully independent of the production staff? Does the QC manager have sufficient authority to stop production? Does the factory perform regular quality control at major production steps? Is there a documented calibration system for equipment? Is the QC staff qualified? Are QC supervisors easily identified Record / reports available? The QC staff are not fully independent of the production staff. The QC manager has sufficient authority to halt production. The factory performs regular quality control checks at major production stages. The incoming QC and IPQC, and final QC records are available. A documented calibration system for the equipment is available. The QC staff are qualified, and the QC training records are available. QC / QC supervisors are easily identified (by their work cards). N/A Picture(s) 2 /5 3 /5 5 /5 5 /5 5 /5 Quality manual Quality policy IQC record IQC records AI-QR-16-01A Page 19 of 34

20 IPQC records IPQC records QC records QC records Special Remarks on this Section The QC staff are not fully independent of the production staff. The QC manager has sufficient authority to stop production. Actual Score Theoretical Max 28 /35 AI-QR-16-01A Page 20 of 34

21 Part 6 Supply Chain Management (Optional) Raw materials Questions Findings/Comments Score Is the factory able to provide data The factory can only provide a suppliers list for review. but does about suppliers? Does the factory not manage this well. 2 /5 control them? Sub-contracting Questions Findings/Comments Score Is the factory able to provide data The factory could provide a sub-contractors list for review, but does about sub-contractors? Does the not manage it well. 2 /5 factory control them? Special Remarks on this section The factory could only provide the suppliers and sub-contractors' lists for review, but does not manage them well. Actual Score Theoretical Max 4 /10 AI-QR-16-01A Page 21 of 34

22 Part 7 R & D / Sampling capacity (optional) R & D facilities Questions Findings/Comments Score The factory has a R&D Department that is only responsible for their Does the factory have a R&D existing products. Research on new products is carried out by the Department? R & D departments of other companies. What is the sample production The R&D department is modifying old items. There were two (2) process? engineers working in the R&D department. Does the factory have special facilities? The R&D department has its own testing machines and measuring (sample production line or instruments. equipment) According to the factory management statement, the approval of What is the approval sample lead sample lead time is between 7 to 30 days. The lead time is mainly time? influenced by the raw material preparation time. Picture(s) 2 /5 4 /5 5 /5 2 /5 R&D Department AI-QR-16-01A Page 22 of 34

23 Special Remarks on this section 1.The R&D department is only responsible for existing products, while research on new products is carried out by the R&D departments of other companies. 2. The lead time is mainly influenced by the raw material preparation time. According to the factory management statement, the procurement time of raw material is about one week, but no records are available. Actual Score Theoretical Max 13 /20 AI-QR-16-01A Page 23 of 34

24 Part 8 RoHS Standards (optional) Knowledge & Awareness Is the factory aware of the RoHS regulation? The factory is aware of the RoHS regulation, and it has the RoHS testing machine. Who is in charge of implementing RoHS standards in the Factory? Name Mr.Carter Chen Position Supervisor RoHS Products Has the factory already produced RoHS As per the factory s statement, 90% products were products? compliant with RoHS standards. Name & description of the products: All kinds of the following products: Bluetooth headsets; Stereo headsets; Multimedia headsets; In-ear earphones; Noise cancelling headsets; Tf-card headsets; Sport headsets. The factory did not provide any RoHS certification for the raw List of certificates available materials or finished products. However, the factory could (Including name & details of Certifying Company + provide test reports from its own RoHS testing machine, scans) showing that the products conformed to relevant standards. Reports from tests by its own RoHS testing machine Was there a running RoHS production line in the factory during the Audit? Reports from tests by its own RoHS testing machine According to the factory s requirement, the product lines were RoHS compliant. AI-QR-16-01A Page 24 of 34

25 Management of RoHS and Non-RoHS Products & Components Are the RoHS and Non-RoHS products separated? The factory states that although most of their products are RoHS compliant, they were not separated, and no RoHS labels were affixed to the products. Components Picture(s) Comments: Finished products Raw material Picture(s) Raw material Comments: Finished goods view Finished goods view AI-QR-16-01A Page 25 of 34

26 On the Production line Picture(s) Comments: Semi-finished goods Semi-finished goods Special Remarks on this section 1. The factory did not provide any RoHS certification for the raw materials or finished products. However, the factory can provide test reports from its own RoHS testing machine, showing that the products have passed the relevant tests. 2. The factory states that although most of their products are RoHS compliant, they were not separated. No RoHS labels were affixed to the products. Actual Score Theoretical Max 2 /5 AI-QR-16-01A Page 26 of 34

27 Part 9 Specific Instructions from the Client (optional) Specific Instructions Please include in Supplier Audit: 1) R & D and Engineering Capabilities Yes-Hope is able to launch, each month, 3-5 new designs that are developed in the R&D department of other companys. Their own R&D department is only responsible for modifying details of their existing products. Each new design (developed by other companies) is in line with the latest requirements and ideas of the customers. According to Yes-Hope s statement, most of their newer items were well received by potential and existing customers. This year, Yes-Hope will continue with several new Bluetooth headset designs, and will, periodically, send new product information to customers.. 2) ISO Documentation The auditor reviewed the ISO 9001 certificate and the ISO procedures documents ISO certificate Quality manual AI-QR-16-01A Page 27 of 34

28 Quality procedure Quality procedure 3) In Process Inspection Process and Procedures The factory can provide related procedures, as well as IQC report and IPQC and FQC report,for review. AI-QR-16-01A Page 28 of 34

29 4) Product Drawings and/or Blueprints The factory provided product drawings or blueprints, as below: AI-QR-16-01A Page 29 of 34

30 5) Incoming raw materials - inspection process and reports The factory has 3 IQC workers to check the incoming raw materials, and upon receipt, they are stored in the incoming raw materials storage area. The related QC-pass labels are posted on the materials. The factory has related procedures, and IQC check records can be provided. IQC check record IQC check record Incoming raw material Incoming raw material AI-QR-16-01A Page 30 of 34

31 Incoming raw material Incoming raw material 6) Final assembly inspection process and final approval The factory can provide the relevant final assembly inspection procedures for review. It has related QC workers to check each product, including the semi-finished goods and finished goods, prior to shipment. QC check area IQC check area AI-QR-16-01A Page 31 of 34

32 7) First Article Inspection Reports First article in product line First article report First article in product line AI-QR-16-01A Page 32 of 34

33 Part 10 Synopsis of major facts and problems found Capacity to manufacture client s product:(part 2 and 3) Very bad Bad Average Good Very good Production conditions:(part 4 and 5) Very bad Bad Average Good Very good Factory behavior during Audit: Very bad Bad Average Good Very good AI-QR-16-01A Page 33 of 34

34 Original signature from the Factory Manager, accepting AsiaInspection's conditions on Shipment authorization and bribery issues IMPORTANT NOTES THE ABOVE RESULT(S) REFLECT(S) ASIAINSPECTION LIMITED S FINDINGS AT THE TIME AND PLACE OF AUDIT. WITH REGARD TO THE RANDOM SAMPLE CHARACTER OF THE AUDIT, IT SHOULD BE NOTED THAT ADDITIONAL NONCONFORMITIES MAY EXIST, WHICH WERE NOT FOUND DURING THE AUDIT. THE AUDITOR'S FINDINGS DO NOT RELIEVE THE AUDITEE OF ITS RESPONSIBILITY TO ENSURE THAT THE REQUIREMENTS OF THE STANDARD ARE FULFILLED AND CONSTANTLY ADHERED TO. End of the Report AI-QR-16-01A Page 34 of 34