1. Business Registration, Ownership and Organizational Structure

Identify the ownership breakdown of the organization, ensure business and manufacturing licenses held are current and appropriate, and identify current and previous customers and countries of export.  It’s also beneficial to note the factory’s approximate sales volumes for the past and current year (both domestic sales and export sales).  You may also want to review and/or photocopy the organizational chart of the factory.

2. Production, Equipment, and Capacity

This section can be completed in detail (e.g. measuring the output and capacity of each manufacturing step), as a general overview, or anywhere in between. The level of detail gathered should be sufficient for you to make future decisions about working with this factory. It’s important that when you’re evaluating capacity, you are doing it in regard to the item that you are expecting to produce. In this section, you should also take note of the factory’s production record keeping and organization.

3. Quality Control, Testing, and Product Standards Awareness

Check for clear separation between QC and production departments and documentation to support it. Check records and documentation in regard to IQC, IPQC, and FQC. Evaluate the factory’s own testing facilities with regard to your product category. Determine if the factory is knowledgeable and confident in regard to the product and safety standards of your country.

4. Material Supply Chain

Take note of the main material suppliers for this factory.  Evaluate the factory’s ability to deal with change in their supply chain. Check for documented systems for evaluating suppliers on a regular basis.

5. Control Environment 

That consists of all internal and external elements affecting production activities.

6. Working Conditions

Review working hours, production processes and quality-control policies. Also evaluates control adequacy in warehouses, production systems and maintenance activities.

7. Safety Requirements

Safety procedures consist of policies, standards and guidelines that factory management uses to ensure worker safety. An auditor ensures that corporate safety policies adhere to regulatory guidelines, such as Occupational Safety and Heath Administration rules.