I've talked to a lot of people who are in this situation, and it seems like the majority of them aren't entirely aware of what they could be passing up. In this article, I will focus on these aspects of the audit of the factory in China.

A factory audit is an inspection that takes place at the manufacturing facility itself.
For this reason, the focus of a factory inspection is typically placed on a single product (or category). For instance, if you want to produce e-bikes, you should look for a manufacturer that also produces electric skateboards and electric bicycles. After that, the auditor will concentrate on determining whether or not the manufacturer is capable of producing the quantity of electric bicycles specified in your order.

Why Is an Audit of Your Factory Necessary?
You won't be aware of the specific kinds of operations that are involved. Were they relatively simple procedures? How well structured are they (and how safe is it to use them)? There is a significant gap between a factory that is run efficiently and one that is run inefficiently. It is very obvious in the scores that were given in the audit report. We plotted some of the average scores from the audits that we carried out in a number of Chinese cities, and there is a significant gap between the best and worst cities in China (including Yiwu, which should come as no surprise).

You will be unable to determine whether or not their ISO 9001 certification is legitimate.
If a factory in China wants to obtain ISO 9001 certification, all they need to do is set aside money in their budget for it (rather than "build a management system that meets the requirements of the standard"). In point of fact, almost any factory in China is capable of obtaining this certification. In order to successfully conduct a factory audit in China it is critical to first understand your objectives and requirements. In the article titled "10 Signs of ISO 9001 Implementation Failure," I discussed some of the terrible systems that we came across during our research.

A poor performance in an audit of the quality system is not a good sign.
It became abundantly clear that factories that scored higher in factory audits also tended to perform better in product inspections after we collaborated with Professor O'Connor from Monash University to determine whether or not insights could be gained from looking at historical audit and inspection data (based on completely anonymous excerpts) that we had conducted for our clients. These excerpts were taken from the audits and inspections that we had carried out for our clients. You won't be able to tell if they adhere to the process discipline.

What we are seeing now is that customers from overseas are not coming in as frequently as they used to every two to three months, and as a result, many manufacturers have a tendency to "relax."Their capacity to perform well on the job has been diminishing recently.

Even if they are successful in locating the source of the issue, you won't be able to verify their findings. If you buy a lot of products from a single vendor and want to push for continuous improvement at that company, then this may be a good option for you.

Prior to Beginning an Audit of a China Factory:
They are qualified to go to any factory and perform supplier verification in their capacity as a professional third-party inspector. If the factory is operational but no one is allowed inside, it may be beneficial to review their most important standard operating procedures (SOPs) and records. In addition, as an additional measure, the audit may be supplemented with information obtained from government databases in certain nations, such as China.

How much does it cost to conduct an audit of a factory?
What Kind of Things Are Checked Out During a Factory Audit?
The following is a checklist for the three types of factory inspections that are most common in China:
Initial Assessment of the Factory
In comparison to the other two factory audits, the Initial Factory Evaluation is the most fundamental one.
The production process (in which the individual steps of production are described).
The state of the machines, as well as the types and quantities of equipment, are both taken into consideration.
Management of Quality (both work procedures and work instructions).

A more in-depth evaluation may be performed on factories that give the appearance of having a quality management system (for instance, they may hold certification from ISO 9001).

In addition, a process audit is necessary in the event that buyers wish to evaluate the various manufacturing processes and best practices utilized by a factory. The question that really matters is whether or not they are competent.

Internal quality control, including quality procedures and revisions.
Training of staff members (including training records and work instructions.
Sometimes the most important question to ask is whether or not the manufacturer is prepared to take orders (taking into account their internal production capabilities, their supply chain, and their ability to validate new products).

An audit known as a Social Compliance Audit examines a factory to determine whether or not it complies with social, environmental, and legal standards.

Policies pertaining to the environment, including the disposal of waste, the handling of hazardous chemicals, and the consumption of energy.

Concerns regarding health and safety in workplaces and other structures. On the other hand, you will likely need to keep a close eye on the dynamics of the manufacturer. It's possible that their most valuable customer has stopped doing business with them. At the very least once a year, you should have someone check in with your major vendors.