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What is a Pre-shipment Inspection?

A very general quality rule that is true for the industry and for everyday life is that when you start controlling a process, it will start improving as well.

Quality issues on products manufactured in China do happen and they often impair business profitability, affect brand image on the market and can mean lost sales, product returns and factories stopping production.

The most traditional kind of inspection that is performed on exports from China is the final random inspection before shipment. After production is completed and all merchandise is ready and packed for shipment, inspectors randomly inspect batches of products to check compliance to the specifications and requirements, including cosmetics, function and packaging. It is based on a statistical approach know as AQL (Acceptable Quality Level) and defined during World War II for the US military, that allows to test only a small number of units out of a large batch of products.

For example, if you have regular shipments of 1,000 (similar) products exported out of China, you can reasonably expect that you won't receive more that one single defective unit every four shipments if you have inspected (successfully) 50 units (out of the 1,000) before each delivery. That's testing 200 units instead of 4,000.

With 5 percent of the effort, you can reach 99.75% confidence on the quality. Sounds like a good deal.

Those who have ever played cards, craps, or "rock-paper-scissors" know that, at the individual level, you cannot always rely on statistics. As a matter of fact, several issues affect the AQL approach which often are not, or cannot, totally be solved:

• The way the statistical model is applied: The assumptions taken to design the AQL model include that we are talking large numbers and that we are talking "homogeneous" batches of products that should be produced under the same conditions, same shift, same machine, same set-up with the same raw material batch.
• The way the inspection plan is defined: you usually don't test all the parameters, but limit yourself to the most critical, and some potential defects cannot be tracked by standard functional or cosmetic inspections (like internal intermittent failures or material content.
• The way inspection is operated: In China, I have seen some factory's own inspectors switching the unit under test, repairing it, or twisting the measurement equipment, so that the product passes and that they could give a positive report.

Nonetheless, final random inspections are an efficient way to significantly improve your confidence level in the quality, but they have to be designed and operated with professionalism.

Other measures you can take include other kind of product inspections like final inspections during production cycle. Performed on the shop floor at the factory site and during the production cycle, they minimize the reaction time in case of non conformities and may usually cover a 100 percent check. This is well adapted for large mass production volumes and when there are strict requirements for on-time shipments.

Inspections at loading (container stuffing) include supervision of the loading operations, to verify product quantity and smooth handling of the cargo. Upon completion, the containers are sealed so that, at destination, the receiver can trust that his shipment has arrived unspoiled.

The other dispositions that can be taken for the quality include laboratory testing, quality improvement and quality system audits, as well as specific advanced programs like 6-sigma. Moving up the supply chain and securing the production processes is supposed to help reducing the number of issues found during final product inspection.

If you have a customer waiting for a delivery, the best way to serve him is to consistently deliver the compliant products on time. A final product inspection that will eventually stop some shipments of bad quality will not be sufficient by itself because once the problem is identified; you are still left to solve it.

If you are at peace about your methods you can build upon them, but it is often advisable to get the services of a professional partner with the capability and experience to help set-up and operate the system in a cost efficient way.

By Nicolas Binse*

How to order a Quality Inspection

From

While the importance of controlling the quality of the products coming from Chinese suppliers is now obvious to most international buyers, questions remain on just how to do it.

Testing plan

First you need to think about what exactly you want to control. It is ideally coming from your own definition of what is critical for your products and your business. To help you with defining the test plan, try to consider what are the past quality issues you faced, ones that brought you to call for inspections; or go through the specifications of the product and pick the ones that could have the greatest impact on your customers. Keep in mind that the inspection plan should be made in line with what is at stake: the value and criticality of the product. Obviously, you might not want to test rolls of paper tissues as extensively as medical respiratory equipment. A typical testing plan includes several cosmetic and functional items to check, with pass and fail criteria. Most of them will be based on visual checks or basic instrument measurements (ruler, caliper, weighing scale, etc.).

Professional inspection companies should be able to assist you in defining your test plan, according to the industry you are in, the profile of your customers and, of course, the type of product you source from China. By experience they know what to look for specifically in toys, IT equipment, raw materials, textiles and automotive parts, for examples.

Your inspection plan should also cover the expected confidence level you want to achieve. It is usually defined in percentage of defects you can accept, using the standard statistical AQL (Acceptable Quality Level) approach. An AQL level of 0.4 means you accept to receive a shipment with potentially up to 0.4% defects (that means 99.6% good). 100% confidence can only be achieved by 100% testing, the AQL approach greatly reducing the number of units to be tested (to around 5% to 10%) and the associated costs.

Inspection location

Once you have your inspection plan in hand, you need to define where to have it performed. Unless specific reasons dictate, inspections should take place at the supplier's site, after production is finished and before products leave the factory. That is where you can get the highest benefits in terms of reaction time and cost. If you are on a very tight schedule, inspections can also be performed during the production cycle. Inspections at a later stage, before loading at the port of departure, or even upon arrival in the country of destinations, are quite specific and can be justified for various reasons, like sensitivity to transportation, impossibility to access the manufacturing site or consolidation with other materials, availability of special testing equipments.

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How to order a Quality Inspection (cond) 

Planning and ordering

Take into account that an inspection company needs a few days to organize themselves to validate your testing plan and send inspectors to the supplier site. The sooner you do it the better, but not later than two to three days before the expected date for shipment from the factory. Finalize all arrangements beforehand.

Before placing an order, make sure that you have your detailed testing plan defined and that you know the total quantities to be shipped, the expected shipment date and the exact location (detailed address and contact information of your supplier). This will have to be communicated to the inspection company, who will confirm the booking price, for you to make your final decision. Most shipments just require a one day inspection, but it all depends on the number of samples tested (AQL level vs. total quantity) and the number/complexity of parameters to check (testing plan), it should be confirmed to you in advance by the inspection company.

If you have a business with a continuous flow of shipments from the same locations, a specific organization can be set up to support it and, thanks to economies of scale, costs can be contained.

Inspection report

After the inspectors go on site to perform their duty, you will quickly receive an inspection certificate with administrative information and the results of their findings: how many units they checked, what results they recorded and whether the lot(s) pass or fail. The ideal way is to hold the shipment until you receive the report, so that you can decide if any containment actions are necessary prior to shipment. Therefore, add on one to one and a half days to your regular schedule before shipment to allow for inspection. You should keep the records of the inspection reports for future reference.

Relying on an independent party to inspect on your behalf will not only help you to control your costs. It will also bring impartiality, efficiency and peace of mind in your relationship with your Chinese suppliers.

By Nicolas Binse

Replying to [Aussie]:
Very good article.

Personally, I always do inspection with Intertek. Depending on the product I increase the final inspection level to minimize the risk. Also I request few Raw Material inspections and During production inspections.

For me these 3 inspections represent that 70% you said!

1. Raw material inspection
2. DPI During production inspection
3. FRI Final random inspection

Replying to [Aussie]:A good point there. But personally, I always do inspection with SGS or Bivac.

Replying to [MikePTY-HK]:Hi

I have been looking at Intertek also for inspection wondered if you wouldn't mind discussing their services and what happens etc. Sorry I am new to this. Please feel free to add me to your TradeManager if you like so we can talk further. Thanks

Hope to hear from you soon.

Thanks

Lisalou1

Replying to [Aussie]:ok I'll trycotecna , but what is the cost

 

Hi Mohamad,

Price will obviously vary according to the job. Here's their website ...

http://www.cotecna.com/COM/EN/

I understand they have offices in Cairo and Alexandria which you could phone to get started on a quote.

Will be interested to hear how you go.

Replying to [Aussie]: yes my city is Alexandria , you knew it from my phone I think not grigo only , .........I can say Aussie holmes

Replying to [Aussie]:thanks

Replying to [Aussie]: Hi can you please tell me how this works and how much is it.

regards,

Novica