Suppliers Outsourcing Quality Problems in China

We work with the best technologically geared companies in the US and Europe which outsourced their electronics manufacturing to Chinese factories.

Our customers conceptualized, designed and set out the manufacturing perimeters for their China suppliers.

AMREP is a part of our customers’ supplier quality management in China manufacturing processes.

To work with the best in technology design and the best in Chinese manufacturing requires deploying our people with the best in China quality and manufacturing knowledge and skills to match changing production methods.

AMREP SQE services are not about just doing last minute China pre-shipment ; or quality control inspections; factory audits or doing ISO quality management systems reviews.

Our SQE services are all about solving critical to quality issues; auditing and correcting supplier’s production quality processes and implementing corrective actions to minimize quality defects to finished products.

WE FIND AND FIXED SUPPLIER QUALITY PROBLEMS IN CHINA.

Quality Control Tools for Managing Your Outsourced Supply Chain

Managing your outsourced suppliers is about applying quality management tools.

Some Quality Control tools you apply only occasionally. Some selected quality management tools become a supplier management process. We are good in doing ALL. We are your user tool for applying better quality control of your suppliers:

 

Pre-shipment Inspection: Best applied to suppliers when you have short-term or one off supply relationship or you don’t really know the supplier.

 

Factory Audits: Best problems prevention tool to reduce your unexpected procurement and financial losses.

 

Process and Line Inspection: To be used continuously if the supplier is new, the production volume large, continuous and long-term.

 

FMEA (Failure Mode Evaluation Analysis): Best applied on a new product production launched by a new or existing supplier to remove Critical to Quality and Critical to Usability problems.

 

PPAP (Production Part Approval Process): A necessary application when component conformity and compliance is critical to production process conformity to making a conforming product.

 

AMREP Inspection is best at using all this. Quality professionals define the usage of these tools as Supplier Quality Engineering.

China Supplier Solar Panel Reviews

Our business is to manage suppliers for our outsourcing customers. Our services require us to work with different suppliers. Our work also provides us with an opportunity to gather information on the business activities of the industries which we are always engaged in.
Here are some information which we gathered and which we want to share with you. Today’s focus is on Solar Panels manufacturing in China.

 

  • Yongli Green Energy Holding makes photovoltaic solar power modules. It has doubled its production capacity. It is now operating at full capacity and has orders for the whole year. Global demand for its products has increased because of European purchases driven by European government subsidies for solar energy manufacturers.

 

  • Suntech Power Holdings and LDK Solar are also doubling its production capabilities. Suntech has opened a new production facility in Arizona.

 

  • China Synergy and CNPV Solar Power have secured contracts from the China government to install solar panels for power generation.

 

Amrepinspect is currently doing supplier quality management work on solar panel products sourced by American customers.

Email supplyquality@amrepinspect.com to find out more on our Solar Panel QC Work.

Call Valerie at +86-755-2783-4426 Ext. 801 or Isabel at +1-954-443-0046.

In China, 2300 Suppliers Use Alibaba.com to Cheat Customers

Our Supplier Evaluation and Capabilities Verification Audit is the most preferred service wanted by customers seeking for new vendors (suppliers) in China. China is such a big country with suppliers popping up every day. How do you know that the supplier is not a fraudulent company? Or that the supplier has a factory which belongs to him or just a paid “pretender” factory?

 

If you are buying from a new Chinese vendor, how do you verify its manufacturing, production or product capabilities when you are sourcing them through an e-commerce website? Would you trust the Approval Rating provided by an on-line sourcing website? We know the great financial disaster of 2008 was caused by the high credit ratings given by Moody’s, Standard and & Poor to financial instruments because of paid credit ratings by their customers.

 

Here is something you need to read to understand how AMREP Supplier Management Services can add value to your Strategic Outsourcing.

 

Extracted from BusinessWeek, February 28, 2011, written by Caroline Winter

 

 

Alibaba.com. Fraud sparks a shakeup

Alibaba.com shares took their biggest tumble in a year after an internal probe found more than 2,300 vendors used the Chinese e-commerce site to defraud global buyers. CEO David Wei and COO Elvis Lee who weren’t accused of wrongdoing, resigned to take responsibility for the “systematic breakdown” of integrity. In 2009, some 1,219 of its suppliers engaged in fraud and 1,107 did so last year, the company says. The probe also found that roughly 100 of Alibaba’s 5000 salespeople, as well as some supervisors and managers, either intentionally or negligently allowed vendors to evade the company’s authentication and verification measures and set up “fraudulent storefronts”.

 

Find out how our supplier verification services work in China from Isabel at 1 954 4430046 or
email her at
supplyquality@amrepinspect.com

China Procurement and Managing China Buying Quality and Profitability

The race towards out-sourcing is the race towards increasing profitability and reductions in costs of operation. It is a good approach taken in the wrong context with lots of quality disconnections with the importance of managing your overseas suppliers’ quality.

 

This approach increases the distance between the buyer and the maker. Highly productive quality activities localized in the management of local suppliers’ manufacturing quality are eliminated by the company. The management of quality is then shifted to the local China office in China and manned with employees with the least experience in the management of out-sourced suppliers.

 

Consequently, our customers end up with surprised associated costs related to production and quality anagement when production is transplanted to factories which they don’t own, manage or collaborate with intimately. These costs escalate when they discover rather late that their local China staff, or Asian staff or their wn expatriates’ employees cannot relate to the issues of manufacturing in different unfamiliar manufacturing environments.

 

All these have a serious impact on the profitability of out-sourcing your production.

 

So when it comes to managing suppliers’ quality in China or Asia, I chose to ask my clients to tabulate the costs of concern to them before marching into the supplier’s factory to fix these problems.

Prevention and Cure of problems caused by suppliers can be classified as:

  • Customer returns – because we failed to detect manufacturing and components problems.

 

  • Rejects – upon arrival because these failed to meet the original sample and manufacturing specification conformances and requirements.

 

  • Rework – simply because the rejects were too expensive to send back, or must be fixed to reduce manufacturing downtime.

 

  • Recalls –simply because we failed to do some of the above and saving costs on supplier testing.

 

  • Inspection costs –simply because we did not add in an independent uncorrupted inspection team in the beginning to detect quality issues in the factory.

 

China suppliers are moving targets. China is itself a moving industrializing target. It is better to Plan to Succeed than Plan to fail with caution in outsourcing.

 

Posted by: Derrick Goh, Business Partner,
Accumatrix Business Technologies, Systems and Methods.

How to manage Quality and Suppliers in Mexico?

AMREP Mexico was one of the busiest places for our Mexican Suppliers Quality Management teams. We were operating with high efficiency and productivity in Tijuana, Nogales, Mexicali, Guadalajara, Monterrey, and Reynosa or wherever there is a factory somewhere in Mexico.

Well, this was before the Great Financial Crash and the Great Mexican Drug Wars. The manufacturing pattern has changed drastically.  But work is still going on, and the quality problems remain the same, although at a different pace.  Some things change, some things do not!

Mexican Quality Management does not change.

I was at a meeting with Sam Quintana, at San Diego, Claremont, talking to the Director of Quality Engineering about getting the best out of Mexican suppliers.

The biggest problem with Mexican engineers and managers, the Director said, was their “Tomorrow” attitude on problems resolution. Americans have the “Today” attitude in problem resolutions.

So when too many “tomorrows” were repeated, the Director decided to place a customer quality representative inside the supplier factory to overcome the Mexican barrier and sit on the Mexican factory management.  He was unaware that Sam Quintana was our Mexican manager for AMREP Mexico.

I was embarrassed. Sam was not.

“The truth hurts”, Sam said. Therefore, the Director needs AMREP services to get over this “Tomorrow” attitude. Sam was American trained. He figured that all that was needed was a clever, smart talking Mexican to out smooth talk the factory Mexicans and move them towards problem resolutions. “You fixed quality problems, the Mexican Way and Style with the American Tools”.

Posted by

Isabel, AMREP Customer Service

San Diego

China Quality Engineering Hub

Supplier quality management of suppliers is a continuous non-ending interaction with Chinese suppliers on product quality management and quality control services inside.

 

AMREP China is China’s Supplier Quality Management Central. It provides the specialized quality control services in China to make suppliers’ products better.

 

AMREP China Quality Engineering (CQE) hub pools together all the Supplier Quality inspectors and engineers. From this single pool of qualify specialists you can:

  • Assign a quality inspector to do a pre-shipment inspection before packing, containerization or exported to you.
Find a China Process Quality Engineer to audit a manufacturing, line process audits for production work in progress inside the Chinese manufacturer.
Hire a Senior Quality Specialist to do a factory audit or do a China supplier qualification in preparation for your buyers’ visit in China.
Send in a full quality team of quality inspectors, Supplier Quality Engineers or Industrial engineers to supervise suppliers’ corrective actions to solve Critical to Quality production issues.
Or you can check out specialized expertise to help you with sending your first article or product to approve laboratories for testing for conformance to international standards on safety, reliability, or compliance with strict FDA requirements on drugs or toys.
Train a quality specialist to manage your quality issues and specialize the quality specialist to work on the new design consumer, mechanical or electronic component used by your supplier.

 

  • Find a China Process Quality Engineer to audit a manufacturing, line process audits for production work in progress inside the Chinese manufacturer.

 

  • Hire a Senior Quality Specialist to do a factory audit or do a China supplier qualification in preparation for your buyers’ visit in China.

 

  • Send in a full quality team of quality inspectors, Supplier Quality Engineers or Industrial engineers to supervise suppliers’ corrective actions to solve Critical to Quality production issues.

 

  • Or you can check out specialized expertise to help you with sending your first article or product to approve laboratories for testing for conformance to international standards on safety, reliability, or compliance with strict FDA requirements on drugs or toys.

 

  • Train a quality specialist to manage your quality issues and specialize the quality specialist to work on the new design consumer, mechanical or electronic component used by your supplier.

 

If you are not a large corporation with the financial resources to hire a China Quality Control specialist for long-term usage, then the China Quality Hub is your source of short-term quality specialists.

 

 

 

 

 

Email supplyquality@amrepinspect.com to find out more on what we do for customers in the US and Europe.

Call Valerie at +86-755-2783-4426 Ext. 801 or Isabel at +1-954-443-0046.

Managing Bad Procurement Strategies and Bad Supplier Quality

A continuation of an interview with retired CEO, AMREP SMS on the subject of managing supplier quality in China, Asia and India and with Mike Lee, Asia Supplier Management Journal.

 

Mike Lee: You said AMREP has provided supplier management support to well known International Procurement Offices in Asia and China since 1982. You included IBM, Dell Computers and Motorola plus others as customers. These companies have their own quality control and quality engineering staff, and yet they used your company. Why???

Derrick Goh: It is all about picking the right person for the job to be done. Most procurement managers and strategies have poor ground level knowledge of the working characteristics of the suppliers they selected. Most of their technical and quality staff  have good university degrees but short-term manufacturing experiences, and little skills in handling difficult suppliers. Consequently, my people are called in to solve supplier problems which our customers’ procurement people created and their technical and quality people cannot cure.

 

Mike Lee: You implied the Customer creates procurement problems for themselves.

Derrick Goh: Yes and No. We dealt with different suppliers with different managements these past several years. Be it a Taiwanese, Japanese, Singaporean, Thai or Indian operation, the shared fundamental objective is to maximize production and send it out ASAP. Therefore, all factory employees work hard at achieving this through all means applicable. Meaning, making unachievable promises, wine, dine financial seductions, friendly socializing and more.

 

Mike Lee: So how does one manage these problems?

Derrick Goh: The customers’ problems create opportunities for our service. We cannot solve the customers’ internal staffing problems. Make a China guy your procurement strategist and he is strategizing to create a business for himself in the China of opportunities. Place an American procurement manager inside China office and he is creating a little kingdom for himself.

 

We can handle the suppliers’ problems. The supplier quality people we send into suppliers’ factories must obey and conform to self-preservation operating rules. For example, our supplier quality personnel cannot socialize with the suppliers’ senior production people, including not having meals with them or be entertained in the factory. Managing employee integrity and honesty is a challenge to us. I did not invent this. I learned it from my first customer-IBM.

 

Mike Lee: Your focus is on managing the suppliers’ technical and quality problems relating to procurement

Derrick Goh: There will always be technical and quality problems with in production. Practical product and manufacturing experiences are good ground level experiences which lead to better supplier problem resolutions.

 

 Suppliers find it easier to work with practical production and quality specialists. I think they really get wheezed off by someone employed by a big company and talking like God. When IBM was our customer, the suppliers described the local IBM procurement and quality specialists as Idiots Become Managers.

 

Mike Lee: Let’s talk about Supplier Management Services the next time.

Quality Assurance Services on Some Customers’ Outsourced Products

Defence Electronics

AMREP is back again into working on Defense Electronics. Previously our work was on night vision goggles. We are in action on components, plastic and lenses which go into military hardware. Electro-mechanics embedded devices require tracking quality problems back to its sources of origin. Our supplier quality line inspectors are doing visual, tolerances and material inspections. Data collection leads to supplier quality engineering and immediate problems resolution by AMREP Supplier quality engineers working in collaboration with suppliers in China, Taiwan and South Korea.

 

 Defense electronics are more complicated with many off-the-shelves availability of components. There are much hardware which involves specialty avionics, tactical data links and synchronization devices, and military field equipment. All of which require specialized training of final product line inspectors.

Applying AMREP Quality Control work on Smart Ticketing Hardware.

Anyone traveling on a public transport system or entry using smartcard devices in your country?? If there are problems using your card, it is either the software or the hardware.

 

It is hard to test hardware when the software is not ready to test the card in your country. Hardware comes out faster than the software. Hardware quality can be tested at the factory before sending them overseas. So AMREP Quality Product inspectors are checking the small hardware devices, sensors and wireless detectors in factories in China. Our customers know that the final assembler is getting its components from external suppliers. So AMREP material quality engineers are working backwards towards the assembler’s external sources in China, Taiwan, Japan and even Mexico. Data analysis of supplier’s incoming QC is always helpful in doing FMEA stripped down of problems.

 

Pre-shipment inspection of final product is no guarantee of good quality of hardware is kept in stock and not in use until months later.

 

Auditing E-Readers manufacturers in China on Component quality

As our e-reader customer said, “Customer satisfaction is all about buying an e-reader of high quality or low quality; of workability, durability and no repairs required!” So AMREP Supplier Management Services was contracted by the customer to audit the manufacturer’s capabilities before signing the contracted manufacturer up. Next, to inspect the first sample product. Carry out an FMEA on the sample and components analysis of the work in progress in the factory. Finally do line inspection, function testing and quality problems resolution. All these means assigning three levels of AMREP quality personnel to work with the supplier’s production team.
More buyers’ satisfaction, less quality and repairs recalls, means having a marketing advantage over rivals making the same product of different designs for our customer.

 

Talk to Valerie at +86 755 2783 4426 Ext. 801 or Isabel at 1-954-443-0046 email supplyquality@amrepinspect.com to verifty the work we do, and customers who are using our Supplier Management Services.

Smart Wireless Technology Hardware Quality Control

Smart Wireless Technology Hardware Requires Smart Quality Control of Assembly

AMREP Supplier Management Services (SMS) quality management support of the best in wireless technology designs, engineering and designing has raised our standards in quality control work with wireless technology hardware manufacturers in China, Malaysia, Taiwan, South Korea and Japan.

 

 Universal Electronics, Verifone, Emerson are some of our best wireless technologies customers and quality management teachers.  Working with their contracted suppliers, AMREP SMS has upgraded its quality inspections expertise on the “quality of assembly”. Our Supplier Quality Engineers have progressed from problems detection to quality improvement collaborations, and to managing integrated problem resolutions between supplier, customer and AMREP. We move onwards from final product inspections to production quality problems relating to interoperability, reliability and usability of the manufactured wireless hardware.

 

The mission of AMREP is to maximize supplier’s product quality optimization; minimize quality risks to the buyer; and maximize customer’s value on its procurement contract with its supplier.

 

Every wireless technology customer with a new product has concerns on supplier’s adaptations to the manufacture of its new products. Every supplier components usage has an impact on the micro-electromechanical systems (MEMS), RFID components, wireless sensors, embedded processing chips and more on the new designed wireless controllers or universal remotes.

 

What does AMREP SMS do to handle these concerns of our wireless product customers?

 

We send in quality auditors, final quality inspectors, and supplier quality engineers to sort out quality issues. We are the Customer’s eyes and ears, helping the suppliers to a shared method of controlling the quality of manufacturing.

 

Email supplyquality@amrepinspect.com for more on what we can do for your company.

Call Valerie at +86-755-2783-4426 Ext. 801 or Isabel at +1-954-443-0046.

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