Getting You Product Inspections Right First Time (2of 2)

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Andy Church is back on Product Inspections

Product Inspections report

Understanding the timeline at the beginning
You can then hold the factory to the date for inspection
Product Inspections are a 2 day window
If a problem is found then make sure the factory has time to put things right before they need to be shipped
Ideally 3-5 days before they need to be at the Port for shipping
Regardless of the order size it’s still a day at least and turnaround time on the report
Add in a week to Factory timelines as they are often aggressive and slips happen
Allow for delays by the factory

Not always effective
Inspector is fatigued
300 sample size is the number of pieces an inspector can inspect in a given day
An order size bigger than this is a challenge for 100%
Inspector fatigue impacts the quality of the inspection as the high volume of units inspected through the day gets lower as time goes
Decision fatigue also has a part to play in this (Steve Jobs wearing the same outfit each day to preserve his decisions quota)
Acceptance Quality Limit = AQL (worst level of quality your able to tolerate)
An AQL chart is out there and it’s quite simple once you understand
What level fo defects you willing to accept
Then the order quantity
Then sample size
And the number of defects can be observed and still pass
Accept and Reject criteria is on the chart for you to decide what’s acceptable

Three levels of defects
- Critical
  - Always a Zero (One defect at this level then reject)
  - Anything that would cause injury to or safety hazard to the user
  - Electrical: shock
  - Sharp toys
  - Needle in plush teddy bear
- Major and Minor
  - 2.5 defects (5%)
  - 18 inches from eyes and arms length
  - Affect usability or saleability
  - Carton is crushed
  - Missing components
  - Put it together and can’t use it
  - Would be returned
- Minor
  - 4.0 defects
  - Not affect usability or saleability
  - But not as specified
  - Scratches, etc
  - Unlikely to be returned
You may want to lower the defect numbers on these levels depending on your risk, standards and costs
Upto you to decide with you and the Factory before you place the order to set the AQL levels

AQLs should be established and included in your order to he factory
The factory should be able to follow these in their own internal quality processes

Agree up front what happens if the inspection fails
You may decide to pay the re-inspection costs
Most times the factory is responsible for the re-inspection costs
The factory needs to know they have responsibility
Factories agree to these up-front to avoid upset
Use as a bargaining tool
If an inspection fails for minor defects – buyers will still purchase but it’s got minor scratches
If the minor defect level was exceeded – you might ship it but agree a discount to take it as is and meet your ship date
Some agree to replace any returns on the next shipment – so all returns are compensated

Should be willing to have a conversation with you about the process
What you need to consider from a defect point
The buyer and factory should be an expert in their product but…
Working with the Factory and Inspections service should cover what’s needed in defect terms and levels and agree what the inspection criteria should be
For Danny – this inspection step is simply a corner you can’t cut! The cost to you of a failed products that you have to pull out of hte Warehouse