Post on 16-Feb-2022
Best Practices to Refresh Your Quality Control and Audit Program
Presenter: Terri Olano| Date: June 10, 2021
sales-china@qima.cominfo@qima.com
Best practices for product inspections and supplier audits
How to manage your supplier relations and keep subcontracting above board
Efficiency practices to optimize quality costs while improving quality in the long term
Webinar agenda
2
1.
2.
3.
This webinar will take you through some key touch points in making sure your established quality program is up to date: from making sure all your bases are covered during inspections and audits, to making the best of your quality budget with smart use of sourcing data and technology.
info@qima.com
The Evolution of a Product
3info@qima.com 3
sales-china@qima.cominfo@qima.com
Product integrity throughout the life cycle
Store / Merchandising
Transportation
Product Concept
Quality & Capability Audit
Social Audit
Raw Materials Testing /Testing to Failure
In-Line / In-Process Inspection
ProcessAudits
Pre-Shipment Inspection
DistributionReturn to Vendor Analysis C-TPAT /
Security Audit
Vendor Selection
Pre-Production
Production
LoadingInspection
GAPAnalysis
Sensory Testing
Concept /Design Review
SupplierQualification
Risk Assessment
Label Evaluation & Verification
Production Monitoring
Raw Materials Traceability
InterventionTesting
Compliance & Performance Testing
Final Random Inspections
CUSTOMER DATA MANAGEMENT
4
sales-china@qima.cominfo@qima.com
Auditors, inspectors and back-office experts are trained and certified by product line and/or client
Softlines
Inspector Training• Fabric Weight Testing• Textile Color Shading• Measurement Checks
Testing Capabilities Include• Fiber Identification• Toxicity • Banned Azo Colorants• Performance Testing
• Footwear• Garments & Apparel• Luggage & Bags• Soft Toys• Textiles & Fabrics
Hardlines
Inspector Training• Visual and Functional Requirements• Safety Testing • Product-specific testing
Testing Capabilities Include• Endurance and Performance• Directive Testing• Safety Testing
• Brown & White Goods• Toys & Recreational• Eyewear• Gifts & Homeware• Technical Parts
Food
Inspector Training• Sensory Analysis • GHP / HACCP audits• Fresh and Frozen Food• Canned Food
Testing Capabilities Include• Heavy Metals • Pesticides • Microbiology
• Fruits & Vegetables• Seafood, Meat & Poultry• Canned & Frozen Food• Baby Food • Food Packaging
The importance of a properly trained team
5
info@qima.com
Best Practices for Product Inspections and Supplier Audits
6info@qima.com 6
sales-china@qima.cominfo@qima.com
The most popular services that we see:
Store / Merchandising
Transportation
Product Concept
Quality & Capability Audit
Social Audit
Raw Materials Testing /Testing to Failure
In-Line / In-Process Inspection
ProcessAudits
Pre-Shipment Inspection
DistributionReturn to Vendor Analysis C-TPAT /
Security Audit
Vendor Selection
Pre-Production
Production
LoadingInspection
GAPAnalysis
Sensory Testing
Concept /Design Review
SupplierQualification
Risk Assessment
Label Evaluation & Verification
Production Monitoring
Raw Materials Traceability
InterventionTesting
Compliance & Performance Testing
Final Random Inspections
CUSTOMER DATA MANAGEMENT
7
sales-china@qima.cominfo@qima.com
Ethical Audits: QIMA’s Best-In-Class Protocols use innovative solutions and most recognized international standards for ethical compliance
Structural Audits: To keep workers safe, our licensed civil engineers assess the structural, fire, and electrical safety of factory buildings
Environmental Audits: We assess your suppliers’ pollution risk through actionable audit protocols including chemical controls, water testing, waste disposal assessment
Different types of supplier audits
Manufacturing Audits: Ensure your suppliers' capabilities deliver on their promises
Technical Audits: Estimating the gap between the documented systems and the actual implementation
C-TPAT Audits: Audits that strictly adhere to the protocols of U.S. Customs and Border Protection
Food Audits: Hygiene (GHP) and Good Manufacturing Practice (GMP) Audits for food processing facilities
8
sales-china@qima.cominfo@qima.com
Manage social risks and gain an accurate picture of working conditions
Auditors conduct an extensive
evaluation of a supplier’s social practices
according to QIMA’s own audit protocol
or international standards such as
SMETA, amfori BSCI, ICS or Higg Index.
Ethical audit protocols typically cover:
Hygiene
Health & safety
Waste management
Labor practices
Worker representation
Disciplinary practices
Discrimination
Working hours and wages
Monitor and improve a factory’s environmental impact
QIMA auditors assess a factory’s compliance with regulations and standards for environmental protection.
Our environmental audit protocol is based on the ISO 14001 standard and covers:
Environmental management system
Solid and hazardous wastes
Wastewater
Air emissions
Nuisance
Energy and water use
CO² emissions
Waste management
Audit protocols focus on specific aspects of social responsibility
Ethical Audits Environmental Audits
Verify the integrity and safety of your supplier’s premises
Licensed structural/civil engineers conduct
an audit of a factory’s premises and
provide recommendations for repairs,
strengthening and retrofitting measures.
Structural audit protocols cover:
Verification of load conditions
Structural system of the building
Detection of structural defects, damage, distress, deformation or deterioration
Plan and alignment check
Maintenance and exposure to aggressive environment
Fire safety check (optional)
Electrical safety check (optional)
Structural Audits
9
sales-china@qima.cominfo@qima.com
Comprehensive CSR solutions for a responsible supply chain
Ethicalaudits
Environmentalaudits
A suite of options to help your business meet all of its sustainable sourcing goals
Independent third-party review of your supply chain’s impact with a focus on long-term change
Gather data to manage risks and make informed decisions to build a sustainable supplier network
Audit protocols performed to recognized industry standards or customized to your needs
Corrective action plans equip you and your suppliers to take action
Protect workers and the planet, improve consumer trust and encourage meaningful continuous improvement
Structural audits
10
sales-china@qima.cominfo@qima.com
• Mandatory supplier kickoff workshop
• Audit existing factories incl. tier 2 suppliers
• Timeframe: 1-2 weeks
• Determine high and low performing suppliers
• Factory Improvement Services to implement CAP
• Organize supplier training workshops
• Follow-up audits for failed suppliers
• Eliminate suppliers with continued non-compliance
Approved for 1 Year
Robust process designed for long-term transformation
Desktop
Review
Desktop Review
Potential third intervention follow-up
AT RISK
GOOD CONDITION
NEEDS IMPROVEMENT
2. Measure and correct (months 3-6)1. Engage (months 1-2) 3. Train and educate (months 6-12)
AT RISK
GOOD CONDITION
NEEDS IMPROVEMENTInitial Visual
Audit-
Full VisualRe-audit
Action Plan+
Second Intervention
GOOD CONDITION
11
sales-china@qima.cominfo@qima.com
Collaborate for continuous improvement
Use QIMA audit data to build targeted factory improvement programs that bring results
Establish an improvement program for each factory based onaudit findings, with timelines and fixed KPIs
We work with your factory to fix non-compliances listed in the corrective action plan
Independent advisory services on audit failure root cause analysis and process improvement
Custom onsite training, e-learning and workshops to onboard your supply network and increase supplier collaboration
Go beyond audits by working with suppliers to improve and upskill for long-term partnerships
info@qima.com 12
sales-china@qima.cominfo@qima.com
Data and tech integrated into our audit approach for full visibility
Advanced tools to simplify decision making and maximize the impact of your supplier audit programs
Identify and manage risk in your supply chain
Monitor supplier compliance and identify performance trends by audit type, industry or location with your custom dashboard
Identify unauthorized subcontracting with GPS tracking & supplier mapping; link audit and inspection data to spot inconsistencies
Risk-based approach: prioritize audits for higher risk countries and establish optimal frequency based on KPI data and our robust country risk map
Ensure business continuity and assess ethical compliance when physical factory access is limited with remote auditing solutions
13
sales-china@qima.cominfo@qima.com
Audit dashboard for monitoring suppliers and compliance trends
Filter your audit data by audit type and industry, or zoom into individual countries and factory locations
Monitor your suppliers’ scores and track audit
validity and CAP status easily
14
sales-china@qima.cominfo@qima.com
Detect quality issues early in the production process (raw materials, machines setup, etc)
0-20%
Initial Product Check (IPC)
80-100%
Pre-ShipmentInspection (PSI)Verify the quality of the whole production lot before it leaves the factory
Production Timeline
0-100%
Production Monitoring (PM)Detect quality issues early in the production process (raw materials, machines setup, etc.)
Sample Picking (SP)Have samples collected from the production line, for your own reference or lab testing
Inspections secure your product quality at every stage of production
100%
Container Loading Check (CLC)Ensure every product you paid for makes it to the truck; reduce the risk of damage during shipment
20-80%
During Production Inspection (DUPRO)Mid-production follow up to ensure that all issues discovered are corrected before ordercompletion
15
info@qima.com
How to Manage your Supplier Relations and Keep Subcontracting Above Board
16info@qima.com 16
sales-china@qima.cominfo@qima.com
A constructive philosophy
The importance of a good audit program is to promote transparency, cooperation and continuous improvement through training (e.g. kick-off supplier workshops, follow up of CAPs and re-audits with suppliers)
The purpose of supplier audit programs is to ensure continuous improvement
Continuous improvement is a result of:
Partnering with your factories to promote factory improvements rather than policing them
Transparency into their production issues and concerns so you are “aware” when subcontracting is needed
Great data that accurately reflects your supply chain
Using your audit data to work towards continuous improvement
17
info@qima.com
Efficiency Practices to Optimize Quality Costs while Improving Quality in the Long Term
18info@qima.com 18
sales-china@qima.cominfo@qima.com
Accurate data is the key
Efficiency Practices - Audits
Accurate supply chain data
Supply chain transparency
Safer, more ethical global trade
Improved business efficiency
Informed decisions
19
sales-china@qima.cominfo@qima.com
Supplier audit best practices
Continuous review and regular follow-up helps to assure that requirements and necessary improvements are being implemented
Efficiency Practices - Audits
1. Engage –visual audit
2. Measure & correct –2nd intervention
3. Educate & train
20
sales-china@qima.cominfo@qima.com
Training for consistency:
Create program guidelines to be used by both the factory and your inspection team
Implement a self-inspection program to be used in conjunction with your inspection party
Compare results from the factory self-inspections with results from your inspection teams to drive improvement and efficiency
Reward for “Good Behavior”:
Utilize the data from “all” of the inspections to make decisions
Implement less inspections through service providers if factory proves they are following procedures.
Engage in a “skip lot” inspection program to encourage the factory to always be engaged in their products and quality
Efficiency Practices - Inspections
Inspection best practices
21
sales-china@qima.cominfo@qima.com
Smart Inspection Programs
Based on 6 months collected data, our ‘skip-lot’ programs help you make smart use of your inspection budget:
1. QIMA identifies and ranks low performing suppliers or
factories at risk based on failure rates, defect rates
2. Inspection frequency is automatically adjusted (from
50% to 100% of all shipments - customizable) for each
supplier or factory based actual performance data
3. Skipped inspection orders are randomly cancelled at
the last minute, keeping suppliers on their toes
Your inspection budget is spent efficiently, and your suppliers are incentivized for quality
Smart inspections, not just a skip lot program
Efficiency Best Practices - Inspections
22
sales-china@qima.com
Thank You!
Email: Terri.Olano@qima.comVisit: www.qima.com