FACTORY AUDITS: QUALITY STANDARDS, FAIR LABOR CONDITIONS AND SOCIAL SECURITY

For a long time, the Asian market – especially China – struggled with the reputation of cheap goods and social injustices. Business was exclusively dominated by price, and all of a sudden, many European companies were involved in a media scandal, a risk long underestimated from which only few enterprises recovered. The European consumer rightfully expects to be sure that nobody suffers damage caused by his consumption.

Regular factory inspections provide safety

For a decade, the production facilities and factories of the STM-Group are inspected, assessed and improved by regular factory audits. By this, fair labor conditions are examined, hygienic standards are adjusted and safety controls are implemented. This is not only good for China where the middle classes experience a prosperity like never before, but also for Europe. Based on detailed records and documentation STM-Group customers can be sure: Made in China responsibly.

Simple Factory Audit (SFA)

The aim of a manufacturer’s assessment is to use a one day’s visit to establish whether a supplier is basically qualified to deliver a certain product in accordance with a defined quality.

Which purpose does a “Simple Factory Audit” serve?

In conducting business, you should know all details of your partner and be aware whom you are dealing with. The “Extensive Factory Audit” is our main service taking 2 days. The „Simple Factory Audit“ is based on the internationally recognized standard ISO 9000 for quality management systems. Although the SFA is not very comprehensive compared to the “Extensive Factory Audit”, this factory inspection provides an overall view of the potential business partner. You will have to utilize a factory audit irrespective of whether you cooperate with a factory for the first time, wish to establish a long-term partnership or your product can only be made by the one supplier

  • Avoidance of inexperienced suppliers
  • Potential suppliers are compared and alternatives are provided
  • Inspection of required certificates and licenses
  • Review of the manufacturer’s experiences concerning the product in question

What is checked during the “Simple Factory Audit”?

A. FACTORY PROFILE: Name, contact information, licenses etc.

B. STAFF and EMPLOYEES: Management, quality control etc.

C. INSPECTION OF THE PREMISES: Office, basic equipment, production facilities etc.

D. CUSTOMERS and EXPERIENCES: Analysis of past business transaction, spot checks

E. DOCUMENT VERIFICATION: Licenses, certificates etc.

In addition, the “SFA” comprises: status of the production facilities, supplier’s orientation, production and distribution capacity, brief check of existing quality assurance systems

Why should I choose this audit?

Make sure what you get yourself into and with whom you want to cooperate. A “Simple Factory Audit” saves you bad surprises because the qualified and experienced STM-Group’s auditors recognize problems early before they arise and cause complications.

Extensive Factory Audit (EFA)

An audit before the production start guarantees that your requirements have been understood and avoids possible misunderstandings concerning production factors. Within 2 days an SFA ensures that the product will be produced in compliance with your norms and expectations.

Which purpose does an “Extensive Factory Audit” serve?

The “Extensive Factory Audit” is based on the internationally recognized standard ISO 9000 for quality management systems. Its findings are presented in an extensive report on deviations found, including a comparative assessment of the manufacturer. You will want to make use of a factory audit no matter whether you cooperate with a manufacturer for the first time, wish to establish a long-term partnership or your product can only be made by the one supplier.

Audit Emphases:

  • Avoiding inexperienced suppliers
  • Potential suppliers are compared and alternatives are provided
  • Inspection of required certificates and licenses
  • Review of the manufacturer’s experiences concerning the product in question
  • You get a complete overview of the factory structure, its organization, quality procedures and past work experiences.

What is checked during the “Extensive Factory Audit”?

Our qualified auditors perform an independent assessment of all aspects and make sure that the factory inspection is based on the internationally recognized standard ISO 9000 for quality management systems.

A. FACTORY PROFILE: Name, contact information, licenses etc.

B. STAFF and EMPLOYEES: Management, quality control etc.

C. INSPECTION OF THE PREMISES: Office, basic equipment, production facilities etc.

D. CUSTOMERS and EXPERIENCES: Analysis of past business transaction, spot checks

E. DOCUMENT VERIFICATION: Licenses, certificates etc.

F. MANAGEMENT SYSTEM:

  • Distribution
  • Design control/Construction
  • Document and data control
  • Sourcing / Purchasing
  • Warehouse management
  • Incoming goods inspection
  • Production control and production inspection
  • Continuous improvement
  • Social responsibility of the companies
  • Corporate governance

Why should I choose this audit?

Make sure that production capacity and quality is conform to your production requirements and that production itself is performed following internationally recognized standards.

Social Audit

A “Social Audit” is understood to constitute a critical examination of business procedures and structures in respect of their social and ethical conflict potentials. Accordingly, production orders should be examined for compliance with social responsibility standards!

The added value of a “Social Audit”

Protect your company’s reputation! Check your production orders for compliance with social responsibility standards. The investigation by the “Social Audit” examines a company’s standard concerning the treatment of employees. Here we help you to retain essential values in order to continue being a responsible, trustworthy and socially dedicated company. We do use certain guidelines of our own, which can, however, be modified in compliance with your ideas. Our qualified inspector has at least 10 years of relevant working experience and is highly familiar with local business practices. Our “Social Audit” is based on the internationally recognized standard for employees’ working conditions SA 8000.

The main contents of this assessment are:

  • Industrial safety
  • Child labor
  • Working hours and compensation
  • Discrimination
  • Disciplinary proceedings
  • Freedom of association and the right to collective bargaining

Why should I choose this audit?

The “Social Audit” must be used specifically by companies outsourcing their production to developing countries. An enormous communication campaign denouncing you as company with bad labor conditions could have disastrous consequences for your corporate image. This report constitutes an important contribution for yourself and your customers in preventing cooperation with unqualified suppliers not complying with legal provisions.