"Better standards and a clearer understanding"

"Better standards and a clearer understanding"

FIDUCIA'S RINGO LAU SHEDS LIGHT ON PRODUCT INSPECTIONS, FACTORY VISITS AND A SHIFT IN THE QUALITY PERCEPTION OF CHINESE SUPPLIERS.

China Focus (CF): Ringo, thank you for taking the time to talk to us about your role as Fiducia's Quality Assurance Officer. First of all, what is Quality Assurance?

Ringo Lau (RL): Quality Assurance (QA) is the process of ensuring product quality according to certain industry standards and client requirements. Or to put it simply: Making sure that a product is good enough to meet the end customer's expectations.

CF: How does a typical product inspection work?

RL: When inspecting a product, a QA Officer has to assume the role of the end customer. First, I check for safety in production quality and handling. A product has to meet safety standards when it comes to movable parts or sharp edges. In a second step, I focus on the operational side of things. Is the product fully functional? Is everything where it is supposed to be? Does it have the right colour, size and shape? Appearance in terms of processing quality and the checking for scratches, dents or kinks constitute the final control step. If everything is up to the mark I can clear the product sample ?and move on to the next one.

CF: How do you make sure your QA measures are accepted by your clients?

RL: We work in close co-operation with our clients and use standards such as the AQL, the Acceptable Quality Level, which has been used by the US military for standard sampling procedures for over 50 years. Our customers tell us what their AQL is and we control the supplier's products accordingly. Unfortunately we know that even if QA has cleared a product line there is still a small chance it contains the odd defective piece. You can never be 100% sure.

CF: Is there a certain time in the production process when you usually control?

RL: For us, quality control mostly equals pre-shipment inspection. That means we control the finished product before it is shipped to the client. There are cases when we also check product components or raw material at an earlier stage, but usually it is the assembled product that undergoes a thorough scan. Contrary to common assumptions the great majority of QA checks take place in the factory where the goods are produced and not in the containers waiting for shipment.

CF: Why is that?

RL: First of all, it is much warmer and drier (laughs). But all jokes aside: If I visit a factory to control the supplier's products, I can choose for myself which samples I want to take and where to take them from. With a preselected and packed container I don't have this option. How do I know that the containers I sample represent the whole amount of produced goods or whether not only the first ten boxes contain impeccable products? The possibilities of manipulation are far less when I check the production site and pick my own samples. I can also monitor, if the companies are using the right facilities in the manufacturing process and support them in technical questions.

"Maybe 5% of suppliers try to cut corners. The other 95% do a good job."

Ringo Lau, Quality Assurance Officer, Fiducia

CF: Another advantage of factory visits could be the surprise factor?lt;/b>

RL: That is true. Usually the supplier is informed about an upcoming factory audit but we also conduct random "surprise visits" in order to get the full picture ?not just the po-lished surface. This is important for obvious control reasons, but doesn't happen on a daily basis. Most suppliers I am working with have a very good relationship with the sourcing side ?my clients ?so there is nothing a surprise visit could reveal.

CF: Don't suppliers feel overly controlled when the client companies send you as a watchdog?

RL: Again, most client-supplier-relationships I know have grown over the years and work on a stable basis ?with time comes trust. But even in cases where the relationships are comparatively new, suppliers usually don't feel threatened or pressured by QA measurements. Almost always I am considered as support, a link that can help ‘translate' or clarify things. This may sound strange, but most factories see me as a guide to achieve better standards and a clearer understanding of the client's requirements. In their eyes, I am the guy the client company sends out to help them.

CF: We rarely see you in the office, you must be busy?

RL: Indeed, I am. On average, I visit about one or two factories per day ?in the whole of China. And to come back to your earlier question: if all factory audits were unannounced I couldn't manage to maintain this quota because random visits usually take up more time. If nobody is expecting you, you sometimes have to wait for quite a while.

CF: Do you think the attitude of suppliers regarding quality issues has changed in the aftermath of the "Mattel incident"?

RL: There has been a shift in awareness amongst Chinese suppliers, yes. They realise that in the long run they can only remain profitable if they deliver acceptable quality. I have already noticed this change of attitude before Mattel but the whole discussion about the safety of Chinese products has certainly accelerated the thinking process amongst manufacturers. In my estimation, maybe 5% of the suppliers I have been in contact with try to cut corners. The other 95% do a good job. Manufacturers now say no if they don't have the technical equipment or the resources to deal with a client's request. Before, many would have said yes and just tried to figure it out somehow.

CF: Has anyone ever attempted to bribe you?

RL: Oh yes, for sure. Money offers are very common, especially in the regions around Beijing and Shanghai. My same reaction every time is: Thanks, but no thanks. Sometimes it is just done out of habit, to show respect and also as an acknowledgement to the level of influence you are considered to have. For me, it is easier to say no because I come from Hong Kong where the Anti-Corruption legislation is excellent. This "excuse" comes in handy for me, so both sides can keep their face.

CF: What is your personal piece of advice for companies that look into sourcing from China?

RL: Try to avoid working with a local QA company. Choose a reliable internationally known QA partner with respected staff and good reputation instead, for example Germany-based TUV. A little bit of ‘healthy mistrust' is always good, no matter if you work with European, American or Chinese business partners. Finally, when it comes to quality control, don't let the price influence your judgement. The seemingly ‘better deal' very often includes lesser quality. And to me, that is not worth it.

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