Technical audit of the supplier (second party inspection)

Globalization poses the new challenges for customers in the area of new supply chains. Monitoring of suppliers and large industrial enterprises has become a laborious and complex process due to the wide dispersion of production units around the world. Facilities become more complex and the supply of equipment and materials from only one region or one country becomes not only ineffective, but also impossible task.

Technical audit of a new large terminal complex in the Sea Trade Port of Primorsk in Russia

For a modern enterprise, regardless of the industry and the tasks performed, it is impossible to overestimate the importance of reliable suppliers who will be able to ensure the production of components (product units, equipment and other types of material and technical resources) with the required quality, on time and in the required quantity. This indicator of the efficiency and reliability of component supplies undoubtedly affects the quality of the final product, transparency of communications and understanding of the overall goals and objectives.

Technical audit of supplier’s production (second party inspection)

is an independent evaluation procedure, which can be carried out if it is necessary to check the reliability of the supplier by the number of following indicators: quality management system, the manufacturing process, documentation, the supply chain and the product (component). In other words, this type of inspection increases the strength and durability of the supply chain. It is a necessary and indispensable tool in searching for new and evaluation of existing suppliers, as well as in the inspection of their own enterprises. In the process of its implementation, it searches for and provides recommendations to correct problems that exist with the customer or supplier before these problems begin to affect the process of the client or the end user. The audit also helps to avoid the risk of product recalls, supply and production disruptions or unpleasant legal issues.

Main purpose of technical audit consists in determining, prior to the establishment of contractual relations, of the potential supplier ability to produce quality products on time and to ensure continuity of supply.

The RiskConcept team performs vendor inspection in two main areas:

1. Process-oriented inspection. It is designed to assess the quality of the work process or the ways operations are performed. The main purpose of this test type is to assess the ability of the process to ensure the required quality of work. Such audit is carried out with the client performance of installation and construction works when the customer is interested in delivery of MTP with appropriate quality. Therefore, the inspection procedure should include not only the control of the finished product, but also the inspection of all production processes. Only by making sure that the product is produced in accordance with the regulations, the customer can be fully confident in the reliability of the supplier. The main tasks while performing this type of audit are:

2. The audit focused on the product. This audit is intended to assess the quality of the product or the result of the work. Its main purpose is to confirm the characteristics of the product and their compliance with the requirements of the customer or technical regulations. This type of assessment is the main during the inspections of suppliers and is applicable not only to importers of material and technical resources, but also to organizations engaged in the supply of works and services, mainly construction companies. During the audit the main objectives are:

  • performance of quality control of products or works: several samples are taken at the intermediate stage of production or any intermediate results of works and their control is carried out; such check can be carried out together with internal sampling control;
  • check of stability of production processes or performance of works: it is performed due to survey of results of work of this process for some period of time, for example, on records on acceptance of production, acts of acceptance of works, and also on remarks in these acts;
  • evaluation of the effectiveness and appropriateness of the accompanying documentation: allows to identify documents requiring modification or cancellation.

According to the results of the technical audit of the supplier, a report is prepared, which is transmitted to the supplier and the customer. This document includes the following paragraphs:

  • audit objective;
  • audit scope, precise indication of the inspected structural and functional units, processes and operations, as well as the time of the audit;
  • customer’s evaluation;
  • head and members of the audit team;
  • date and place of examination;
  • validation criteria;
  • audit results;
  • register of corrective and preventive actions;
  • results of the risk assessment supplier;
  • conclusion of the audit;
  • expected timing for corrective actions, if required.

Working with RiskConcept you get access to world-class quality services. Our expert auditors with high qualification and experience in certification and licensing bodies are ready to conduct “second party inspection” for you and your partners, thereby confirming the quality of your work and services. When working with us you get more than the conclusions of the report, you get a reliable business partner who will help you to provide more transparent processes of quality control, saving your precious time and money.

Supplier’s inspection during the execution of works (DUPRO)

In order to maintain the proper level of quality at every stage of the production process, some companies offer the checks (inspections) in the production process, during which experts assess the quality of raw stuff, components, materials and finished products. Inspections are carried out at the place of production usually after the manufacture of 30-40% of all products. DUPRO (During Production Inspection) inspections are designed to verify that the samples conform to the norms, standards and conditions of the supply contract, as well as to identify actual, potential defects and inconsistencies and correct them. These actions are more preferable than performing expensive testing and making economically impractical changes at subsequent stages of production.

The inspection objects can be:

  1. Means of technical equipment
  2. Personnel (with the presence of definitive requirements for qualification and experience in the supply contract)
  3. Means of measurement
  4. Documentation for products (design, technological, registration, accounting, etc.)
  5. Infrastructure
  6. Special processes and operations
  7. Direct inspection of production units
  8. Inspection and marking control

Upon of the expert’s arrival, the Supplier is obliged to provide the necessary documents:

  • complete set of documentation (design, technological, etc., if it is available);
  • testing methods while the production;
  • registration and accounting documents (test logs, folders with protocols, acts, etc.), which show compliance with the Customer’s requirements);
  • other documentation on request of the Customer.

The place and periodicity of inspections depend on the significance of the specific characteristics and the convenience of their carrying out.

The following activities may be done as part of the inspection:

  • checking the installation and first sample;
  • control checks or tests carried out by the machine operator;
  • automatic control or automatic tests;
  • control at the setting points of the process at certain intervals;
  • volatile control of specific operations by special inspectors.

Also during the analysis internal measures of supplier taken for ensuring compliance of products to the established requirements should be checked:

  • measures to comply with established requirements;
  • measures to carry out works for conformity assessment;
  • measures to control the implementation of established product requirements;
  • measures to inform the customer about changes that may affect the implementation of the established requirements for products.

Inconsistencies identified in the inspection process are classified as significant and insignificant. The first are:

  • absence of infrastructure element (s) required for the manufacturing of declared products;
  • absence or failure of one or more units of technological equipment required in accordance with the instructions of technical documentation for products;
  • absence or usage of not verified measuring instruments or instruments with the expired term of verifying (for measuring instruments which are subject to assessment) for the purpose of obligatory requirements confirmation;
  • usage of non-tested test equipment for confirmation of the compliance with mandatory requirements;
  • absence of objective evidence of validation processes (operations) classified as “special”;
  • absence of records (registration records) confirming the performance of acceptance inspection and (or) testing of products for compliance with the mandatory requirements;
  • non-conformity of marking to the Customer’s requirements.

In the event of one or more major inconsistencies, the inspector will draw up the act with comments.

The supplier needs to develop a plan to eliminate them, coordinate it with the inspector and representatives of the Customer and carry out corrective measures in a timely manner, as well as to provide the results of these measures. The inspector shall re-examine the inconsistencies identified.
If minor discrepancies are found in the acts, they also indicate the need for corrective measures, but the scope of re-inspection can be reduced.

The company RiskConcept has the unique possibilities meeting your requirements in the field of inspection in the production process. Along with one-time and spot inspections, we offer our clients to include them in quality assurance and improvement programs. DUPRO inspections conducted by RiskConcept can also be incorporated into our customer’s risk assessment procedures. Huge experience and recognition of our experts will allow your company to protect business interests and avoid additional costs.

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