Thursday, 29 September 2016

Quality Control In China - Ensuring Your Bottom Line

China is the world's factory, with tens of millions of people employed in making almost every conceivable product and tens of thousands of manufacturers in the Pearl River Delta region alone.
That's true but there's another revolution waiting to happen in China, and it has nothing to do with politics. Much of the Chinese dragon's success can be drawn as a parallel to the rise of Japan's manufacturing heyday.
China has already achieved the status that Japan achieved 30 years ago, for low cost low importance goods wherever you go in the West you can find Chinese made toys, clothes, electronics, and more. But Western consumers still treat these products with a certain amount of disdain because they are considered to be "cheap and cheerful".
Western companies can be blamed for this too, in the rush to secure massively increased margins many contracts have been signed only on a "price per article" basis. A good prototype is produced, and the assumption is that all future items will be of the same grade.
This needs to change. If you consider the Japanese rise to global dominance the key factor in their success was the implementation of strict quality controls and brand new theories of management, both Kaizen and Total Quality Management owe their existence to the endless drive to increase the sale ability and worth of Japanese products.
Otherwise you'll end up being one of the many companies who've been on the embarrassing end of product recalls (this includes many multi-nationals who are not exempt from making mistakes; Hasbro for example have had to recall lead contaminated children's toys in both Europe and the United States).
When setting up your outsourcing relationship it's worth examining in detail what kind of quality control (if any) your supplier has in place. It's common for factories to declare in depth QC processes and dedicated staff when closer examination reveals that there are no documented processes, no such staff and worse no records kept of any procedures that are actually conducted.
If this is the case it doesn't mean you should refuse to work with that business, but it does mean you will need to spend some time educating them on the value of higher quality production and working with them to achieve that, and auditing their compliance over a period of time.
There will be a revolution in quality in China, the government is now trying to encourage a more internally focused economy and while the prevailing focus of the Chinese consumer may still be cost focused (thanks to appreciably lower earnings than their Western counterparts), there are growing signs that when Chinese consumers purchase goods they are choosing foreign made over domestically produced goods in no small part because they consider them to be better made.
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Thursday, 15 September 2016

China Suppliers Up Ante on Product Safety

Many of the new safety standards require makers to conduct more tests on a greater number of chemical substances. As a result, certification fees for some products have risen by as much as 50 percent, and even doubled in a few cases. In many instances, fulfilling safety requirements involves replacing infringing materials with compliant substitutes.
Suppliers of food-grade products, for instance, have already stopped using BPA, an organic compound found in many plastics. In a range of consumer goods, further modifications include the shift from PVC to POE, and from PC to phthalate-free PES, glass and nontoxic silicone.
Battery makers are striving to develop or source safer anode and cathode materials. Some have begun to replace conventional lithium cobalt oxide formulation with lithium iron phosphate, an alternative with lower environmental impact. Other efforts are aimed at improving protection against overcharging, discharging and heating.
In some cases, imported materials, which invariably cost more, are favored over domestic equivalents. Overseas-sourced organic fabrics, likewise, are 20 to 30 percent more expensive than local variants.
Despite the high outlay, some companies prefer to source abroad for consistent quality. Foshan Geuwa Electric Appliance Co. Ltd sources 80 percent of materials and components for its blenders and juicers overseas, while the rest are purchased locally.
Besides higher raw material expenses, makers have to contend with increases in indirect costs, particularly those related with monitoring the supply chain to ensure that all manufacturing inputs meet specifications.
According to Tim Corrigan, president and CEO of the Quality Assurance Institute, "The root cause of the problem (of product quality) is control of the raw material, application contaminations and subfactories. To fix this requires an overhaul at many factories. The solution calls for significant transparency, diligence and dedication."
Generally, material vendors are able to offer third-party certification. But for those that cannot do so, companies need to send their own QC staff to supervise the production at the material suppliers' factories.
More exporters are now limiting their sourcing to suppliers that can provide certified inputs. Still, collection and documentation of every component utilized requires time, effort and money.
In addition to testing and materials quality, manufacturers are also enhancing their in-house QC facilities.
Some baby stroller factories are now equipped with wheel performance, dynamic durability and drop-testing facilities. At the same time, many stuffed toys and children's garments makers are purchasing more needle detectors.
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