The Fundamental Process of a Factory Audit What Exactly Is Involved in a Factory Audit

The purpose of a Factory Audit Service is to conduct an audit or evaluation of the factory based on a set of criteria

The purpose of a Factory Audit Service is to conduct an audit or evaluation of the factory based on a set of criteria. In general, it can be broken down into human rights factory inspections, quality factory inspections, factory inspections focused on countering terrorism, and so on.



Customer, as used in the context of a factory audit, refers to the ultimate purchaser or brand party.

– The term "middleman" refers to a dealer who acquires goods from manufacturers and then resells them to end users.

– Factory: This term refers to the business that is responsible for the production of goods and is synonymous with the term "supplier."

– Auditing firm or institution: The company or organization that is responsible for carrying out the audit.

1. Initiate application
When it comes to the brand side of the business, the purpose of the Factory Audit Services is to improve supply chain management, guarantee consistent product quality, mitigate risks such as negative public opinion and product recalls, identify potential new high-quality suppliers, enhance the quality control level of existing suppliers, and provide support for the company's decision regarding its business strategy.

As Party B, the factory frequently acts in a manner analogous to that of a passive party in order to satisfy the requirements of customers and obtain orders to accept factory inspection. In point of fact, this is not the situation. The Factory Audit presents an opportunity for us to improve the level of management at the factory, so we should take advantage of it.

In the case of a customized two-party audit, the entrusting party notifies the audit institution of its own requirements and demand points, and the institution then formulates the checklist, auditor's instruction manual, and other documents suitable for the entrusting party according to the customer's requirements and audit system standards, laws and regulations, as well as the factory inspection reports required by Wal-Mart, Disney, Decathlon, and other brands when they settle in the e-commerce marketplace. In addition, the factory inspection that is required by the client is audited by two independent parties.

3. Confirmation and examination of the data
The client gives their approval to conduct an audit and names an auditing firm.

4. Payment
The customer or the factory is responsible for paying the necessary fees and expenses (including audit fees and travel expenses) to the auditing organization. The specific negotiation between the factory and the customer will determine who will be responsible for paying the expenses, whether that be the factory or the customer.

5. The schedule for the audit After the audit institution has received the audit fee, it will get in touch with the factory to retrieve the pre-audit questionnaire and schedule an appointment for the audit date.

Send an email with the appointment details, including auditors, the arrangement of audit date, factory name, site address, audit list / plan, and any other relevant information.

6. Implementation audit

The auditors from the auditing institution are required to travel to the location of the factory being audited on the appointed audit date or during the audit notice period in order to carry out the audit.

Process of Auditing the Factory

1. First meeting: After the auditor has arrived at the location, he or she will convene the enterprise representatives in order to hold the first meeting. During this meeting, the auditor will answer the questions posed by the factory representatives and briefly present the purpose of the audit, the schedule, and the requirements for employee interviews.

On-site inspection: if it is a QMS audit, the auditor will carry out a series of inspections on the on-site fire-fighting facilities, maintenance of machinery and equipment, production quality control, raw materials, and storage; if it is a CRS audit, the inspection will focus on social responsibility, human rights, child labor, occupational health, wages and working hours, etc. 3. Documentation review: if it is a QMS audit, the auditor will review the documentation for the QMS

3. Document check The auditor is responsible for performing a document check on the factory as required. This check will primarily focus on the process flow, production records, warehouse entry and exit records, inspection records, records of employees' wages and working hours, employee information, and other similar records.

4. Interviews with Factory Workers Not all Factory Audit Services projects require interviews with Factory workers. In the event that the answer to this question is yes, the manufacturer's representative is not permitted to participate in the interview process with the employee.

5. At the conclusion of the meeting, the auditor will issue a temporary audit report that will summarize the issues that have been identified and the areas in which there is room for improvement.

6. Result of the audit will be delivered in the form of a report by the auditor. Following the review, the party that entrusted the inspection will receive a comprehensive report on the factory inspection.

Correction The customer requires the factory to make a corrective and preventive action report according to the severity of the missing points in the audit report. This report may need to be audited again depending on the severity of the problem and the requirements of the customer. In the event that the audit result is qualified, the annual audit is typically scheduled after a period of one year.

Gorikic Dado

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