The six-step process for auditing Chinese machinery and equipment factories: ① Preliminary document review (business license, export qualifications, certification certificates, export records); ② On-site/video audit (factory premises, equipment, workforce, production floor); ③ Production capacity assessment (calculating capacity based on number of machines × shifts); ④ Quality system inspection (QC processes, testing equipment, management of defective products); ⑤ Sample and case study verification (work-in-progress, finished goods, client case studies); ⑥ Audit report (conclusion, risk points, and corrective action requirements)—the audit conclusion determines the partnership status (no cooperation if unqualified; conditional cooperation; or approval to proceed if qualified).
I.
Preliminary Document Review
Business License (registration age, registered capital, business scope); Export Qualifications (Customs registration, import/export rights); Certifications (verifying the authenticity of CE/ISO certificates with the issuing body); Records (Customs export data, bills of lading); Platforms (e.g., Alibaba factory audit reports)—preliminary document review filters out unqualified or non-existent companies (paper-based review precedes on-site inspection).
II.
On-site Audit
Factory Premises (area, workshop environment, layout); Equipment (machine tools, number and condition of production lines); Workforce (headcount, skill level, shifts); Products (work-in-progress, inventory, samples); Video Alternative (random remote video connections: workshop → warehouse)—on-site audits verify the “physical entity” (the “Four Essentials”: factory premises, equipment, workforce, and products).
III. Production Capacity and Quality
Capacity (estimated monthly output based on the number of key machines, shifts, and yield rates; verification of delivery commitments); Quality (QC processes, testing equipment, and pre-shipment inspection records); Systems (ISO 9001 implementation and handling of defective products); Suppliers (sourcing channels for key components)—Capacity and quality determine the ability to deliver on time and up to standard (delivery timing is a major risk in machinery procurement).
IV.
Samples and Case Studies
Work-in-Progress (verifying authenticity via current production orders); Finished Goods (actual product quality); Case Studies (export records to the destination country or for similar clients); Reference Clients (contacting existing customers to verify reputation)—Cross-verification of samples and case studies (to prevent “showpiece machine” scams).
V. Reports and Classification
Reports: Audit conclusions, findings, and photographic evidence (SGS/BV or self-audit);
Classification: Approved/Conditional Cooperation (re-audit after corrective actions)/Rejected; Updates: Annual reviews or re-audits for large orders—Audit reports serve as the basis for procurement decisions (third-party reports can substitute for on-site visits; periodic reviews are required).
The six-step process for auditing overseas machinery manufacturers: preliminary document review → on-site/video inspection → capacity assessment → quality system review → samples and case studies → audit report.
Key elements include the “Four-Have” standard, capacity calculation, and quality systems;
outcomes fall into three categories: approved, conditional cooperation, or rejected.
