Factory Audit Report

Client:
Factory Name: Factory Address: Supplier Name: Audit Date:

Report No.:ca200807001

July 09 2008

Comment:
The factory is professional in producing wafer valves, highly professional, production equipments and test equipment can all meet production capacity and quality control requirements, it has a relatively high market share in wafer valves market, doing OEM productions for many local big valve companies , and enjoy relatively high popularity, the entire product appearance and workmanship is relatively good. The factorys quality management system is still relatively weak, although it has the ISO9000 certificate, but the quality management systems operation is not very standardized, and is lack of the relative documents and records. The factorys scale is relatively small, but beginning from June because of the big increase in the output value and tax revenue, it has been upgraded from Yongjia County level of enterprise to Zhejiang Province level of enterprise. It is already in the search for a new plant, meanwhile the factory is applying for the related CE and API certification.

Follow up Action
No# 1.

Recommended Corrective Actions

The ISO9000 should be operation more shandardized and have record.

Committed Deadline
N/A

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Index
Part 1 Part 2 Part 3 Part 4 Part 5 Factory Profile Factory Facilities / Machinery Conditions Production Capacity Quality Assurance System Special Instruction from Client Page 2 Page 8 Page14 Page15 Page20

Part 1 Factory Profile

Findings or Comments
Name of Audited Factory Address

Zhejiang naibang valve co.,LTD

27# jianshen road,tangtou industrial zone,oubei town,yongjia county,wenzhou Legal Status Private Owned Date of Foundation June 22 2000 Business Licence 330323000015659 Contact Person Xiaoxiao lin Tel / Fax / E-mail 0577-67996985 0577-67996987 nbvalves@163.com Main Products Wafer-type check valve Production Capacity 12000pcs /year Manufacturing Floors (S.Q. Meters): 800m2 Female Sub-total Male Employees Details Production line workers 35 0 35 Engineering Staff 2 0 2 Quality Control Staff 3 0 3 Administration Staff 1 1 2 Sales Staff 0 4 4 Others 4 0 4 Grand Sub-total 45 5 50 Total:
Main Subcontractors / Raw Material Suppliers Country of Origin / Location Shanghai Shanghai qingtian

Material/component

Alloy Alloy Cast

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Production Flow Chart

Purchasing raw material IQC inspection Trimming of Die cast parts MachiningPolishingAssemblyTestingCleanness/dryingP aintingPacking Delivery

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Photos (factory outlook/each floor/workshop/producing line/Business & export license):

Factory gate

Address label

Exterior view of workshop

Office

Office

Office

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Business certificate for factory (Valid date: to 2010)

Tax Register Certificate for factory

ISO 9000 Certificate for factory

ISO9000 Certificate for one of the suppliers

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Production lines

Trimming of die casting parts

Machining

Machining

Surface polishing

Factory Floor

Painting

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Assembly line

Testing of small size products(80-300mm) N/A

Testing of large size products(300-600)

n/a

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Part 2 Factory Facilities / Machinery Condition Machinery Condition

No. Description Is maintenance carried out on production equipments and are there any records? Are work instructions / procedures provided at appropriate locations? Is machinery in good condition? Does the factory possess a maintenance team to support production? Does each machine have a record/log hung on it?

Yes/No NO NO YES YES NO

Comment

1 2 3 4 5

Machinery detail information

Name: Description: Qty: Comment:

Polishing machine Made in China 5 In good condition

Name: Description: Qty: Comment:

Machine tool Made in China 2 In good condition

Name: Description: Qty: Comment:

Machine tool (cw61125B) Made in China 1 In good condition

Name: Description: Qty: Comment:

Machine (CD6150A) Made in China 6 In good condition

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Name: Description: Qty: Comment:

Machine tool(M7130) Made in China 1 In good condition

Name: Description: Qty: Comment:

Welding machine Made in China 3 In good condition

Name: Description: Qty: Comment:

Machine tool(X5030A) Made in China 1 In good condition

Name: Description: Qty: Comment:

Machine tool Made in China 1 In good condition

Name: Description: Qty: Comment:

Machine tool Made in China 20 In good condition

Name: Description: Qty: Comment:

Testing marchine Made in China 1 In good condition

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N/A

Name: Description: Qty: Comment:

Machine for making label and marking Made in China 1 In good condition

Name: Description: Qty: Comment:

N/A N/A N/A N/A

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Housekeeping and Cleanliness condition

No. 1

2 3 4

Description Is the storage well organized? Does the capacity of the warehouse meet the maximum production capacity? Is the factory clean? Are samples well kept and in good condition?

Yes/No NO NO NO YES

Comment

Pictures

Raw material storage - Die cast part

Raw material storage - Accessories

Semi-Product storage

Final Product storage

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N/A

Welding work station

N/A

Electric power supply

No. 1 2 Description Is there stable electric power supply in the area? Any self-supplied electric power generator?

Yes/No Yes Yes

Comment

Pictures
N/A

Generator

N/A

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Delivery/Loading conditions
No. 1 2 Description Any trucks owned by the factory? Any shipping ports / airports nearby? Is there enough space for 2 or 3 containers to be loaded at the same time?

Yes/No Yes Yes No

Comment 1 truck Ningbo

Pictures

Packaging Area

Delivery area

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Part 3 Production Capacity Production Capacity

No. 1 2 3 Description Can the machinery quantity meet the order volume? Can the worker quantity meet the order volume? Can the warehouse meet the order volume? Yes/No Yes Yes No Too small Comment

Capacity Checking
Main process Trimming Surface Polishing Machining Painting Assembly Testing Machine Name By hand Polishing machine Machine tool By hand By Hand Testing machine Number Of Machines 20 5 12 1 0 1 Capacity per week 250pcs per week 250pcs per week 250pcs per week 250pcs per week 250pcs per week 250pcs per week 250pcs per week

Overall capacity (equate to minimum capacity) Comment n/a

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Part 4 Quality Assurance System General Description

No. 1 2 3 Description Is there a complete quality control plan available in writing? Is the factory ISO 9000 registered? Is there an independent Q.C. manager or supervisory level person to head the Q.C.functions? Are quality meetings held with records? Are there adequate documented internal training programs provided for all quality control personnel? Are customers and approved internal specifications properly filed and easily accessible? Any quality system certificates available? (with certification company details and dates) Any sampling methods applied to conduct random product inspection? Is workmanship standards / acceptance level provided for checking? Have testing equipments been calibrated and with calibration date noted? Yes/No yes yes No Hold quality meeting not periodically and have no records. Not adequate training to quality control personnel Comment

No

5 6 7 8 9 10

No Yes Yes Yes No Yes

ISO 9001:2000 But not followed strictly

Incoming Material Control

No. 1 2 Description Incoming QC available? (how many? day shift/night shift) Are written inspection/ testing instructions available? Adequate enough? QCs fully followed up? Are inspection status and results clearly marked / identified? Are inspection results recorded? What actions are taken if non-conforming material s are found? Are the procedures followed? Are storage facilities and handing methods appropriate? Is there outgoing inspection records from supplier for each lot? Are there certificates from material suppliers if applicable? Yes/No Yes No Comment 1 worker, day shift Not followed strictly

3 4 5 6 7

No No No Yes Yes Will return to supplier to rework

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Manufacturing Process Control

No. 1 2 3 Description Is final QC available? How many inspectors? Is there a procedure to conduct random product inspection after final packaging ? Are inspection status and results clearly marked / identified? Are test and inspection results recorded and maintained for analysis and future quality control? Yes/No Yes No No Found no label or marking to show status of products Found no non-conforming records in inspection report, only have some simple statistical sheet Comment 1 QC inspector and the test worker will also assist quality control

No

Client Complaint Control :factory said there were never have complaint.
No.
1 2 3

Description
Is any clear procedure for handling customers complaint? Are corrective & preventive actions mechanism established and implemented effectively? Are corrective actions documented and followed up?

Yes/No

Comment

Pictures (Control of non-conforming product/WI/ inspection criteria used on site/quality system certificate)

ISO 9001:2000 certificate

Quality manual and procedure document

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Quality management documents

Inspection record from supplier

Incoming material inspection record

Example Certificate from material supplier

Assemblying test inspection record

Pressure test inspection record

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Example Equipment maintenance record

Example American API598 standard for pressure test N/A

Example Chinese GB standard for pressure test

N/A

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Coating thickness test

Coating thickness test

Torque test

Example hardness test

Measuring equipments

Samples in show room

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Products in workshop

Example Products in workshop

Part 5 Special instructions from client

No. 1 2 3 4 5 6 Description What size and type valves can they make? What international standards they can make to? Production schedules? Accreditations, client list, projects Does the factory belong to any group of companies? Is yes, what is the name of the group? Any export experience? If yes, where to? NO YES NO yes Spain Yes/No Comment 1200mm WAFER-TYPE CHECK VALVE API ,GB

End of Report

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