1. An Overview of Inspection Service
Date : Nov. 23, 2005
Speaker : Leo CHOI
Sales & Marketing Manager
KEMA Quality Hong Kong Ltd.

2. Objective To introduce inspection service to emerging SME which
have increasing needs to comply with the different
inspection requests from their international buyers.

3. Quality Control Laboratory Testing Inhouse laboratory
External International Laboratory
Physical Inspection
Inhouse QC team
External International Inspection company

4. Consumer Products Inspection
Electrical Products (household appliances etc.)
Electronic Products (electronic toys etc.)
Hardgoods (household products etc.)
Softgoods (garments etc.)
Fabric

5. Why Inspection International trade between buyer & seller
Buyer ensures product quality comply with contractual specifications
Buyer ensures manufacturer comply with
social accountability (Code of Conduct)

6. Who do the Inspection First party (by factory) Second party (by buyer)
Third party (by inspection company, independent company)

7. What is Inspection Factory Audit (Vendor Assessment)
During Production Inspection (Durpro) / Inline
Final Random Inspection
Loading Supervision

8. Factory Audit
Verify if factory comply with technical & social requirement
Compose of technical & social audit (code of conduct)
Technical audit on Incoming Quality Control (IQC), Production line, any Sub-contractor, QC team, Store room etc.
Social audit on how labour is treated, any child labour, working hours, pay, dormitory, toilets, freedom of trade union etc.
Audit Report of different sections, weighted average to a Total, Pass / Pass with Correction needs / Fail

9. Inspection Method
Inspector uses AQL (Acceptance Quality Level) to select a sample size
Within sample size, check for
Critical defect – endanger life of consumer e.g. sharp edge
Major defect – defect easily spot out in a selling place
Minor defect – defect NOT easily spot out in a selling place

12. Inspector Level & Acceptance Criteria
The higher the AQL level, the bigger the sampling size, more demanding
The higher the acceptance criteria, more defect is allowed, less demanding
Most commonly used is Level II, major 2.5, minor 4.0
Most expensive / quality conscious products, major 1.5, minor 2.5
Large volume and less expensive products use Level I

13. Inspector checks in the sample size
Packaging and Packing Information
Barcode scanning
Functional check
Additonal tests like drop test, Hi-pot test etc.

14. Inspection Result If critical defect >0, fail
If (major & minor) defects < tolerance level, pass
If (major & minor) defects > tolerance level, fail
If (major & minor) defects = tolerance level, pending

15. During Production Inspection / Inline
When products are produced in an initial stage
(e.g. 15% - 20% of whole lots produced)
Verify if products comply with contractual requirements
Take corrective action on the goods if necessary
Use AQL to select sample size
Check total number of defects found

16. Final Random Inspection
Most common type of inspection
When goods are at least 80% produced or more
Use AQL to decide sample size
Check total number of defects found
Issue inspection certificate if result is pass
Inspection certificate link to Letter of Credit

17. Loading supervision Witness loading of goods into a container
(no checking of qualtiy)
Randomly open a few cartoons to make sure the right products are loaded
Take photos throughout the whole process in a report

18. Conclusions Inspection result as a reference
Shipment control in the hands of buyer and factory
Pending results for buyer to decide
Inspection company as an independent body
Factory prepared by asking for a checklist
Quality of the products for long term relationship with buyer

19. End of Presentation Thank you