How Does a Factory Audit Work?

How Does a Factory Audit Work?

Factories can be large, which makes controls, waste reduction and management of resources very important. However, it does not matter how effective your processes are. Conducting audits is a must before the operations start. Infographics experts recommend thorough audits by an experienced firm.

Usually, the process is completed after the selection of suppliers so that this too can be verified. When everything seems ready to be rolled out, the auditors come in.

Verification of Documents

The main concern will be, of course, the financial documents. The auditing team wants to know the amount of money that has been used from the beginning of setting up the company to the end. It is from this information that the investors can set up the ROI strategy. Therefore, the official must present clear records of these documents.

Additionally, they want to see other documents that are crucial to operations like the licenses, permits and certificates. They will scrutinize them to understand whether or not they are valid and ready to support the factory’s operations.

Production Area Audit

The main part of a factory is the production area. If you hire GRS officials, they will thoroughly check how you have set up the production area. Their focus is on whether or not this area will produce the anticipated units per day. They will also consider the safety of the workers around this area in relation to the set standards.

Verifying the Quality Control System

All factories have quality standards that they want to fulfill. These standards are set in relation to the competition around them since they must not go lower than that if they want to succeed. Also, the price range of the final product determines the quality they want to achieve.

All in all, the audit will first check whether the minimum standards will be achieved when the actual production starts. The machines and equipment should have the right capabilities to maintain quality. Also, the SOPs and systems that have been established should show the ability to achieve these goals.

Employee and Social Welfare

The most important asset a factory can have is the employees regardless of the level of automation the factory has. People have the ability to assess circumstances and make decisions, which can lead to growth in a business. Therefore, there should be a clear job description for all positions. Also, the welfare of the employees should be considered in terms of days off, leave and remuneration.

Social welfare includes working in harmony with the neighboring communities and giving back to them according to the agreements. Waste disposal and extraction of raw materials should not cause any harm to the community and the larger environment.

Making the Reports

By now, the audit team will be ready to compile a report for the investors and other involved stakeholders. The report will highlight the effectiveness of the mentioned areas by rating them using specified criteria. Of importance, they will offer recommendations on what must be improved before the operations start. With a good auditing company, it is easy to get through this stage without having to spend more time on setup and being prevented from reaching the operations stage.