A Factory Audit: Inside China Hardware SourcingsteemCreated with Sketch.

in #business7 years ago (edited)

After working in China Manufacturing for 12 years, visiting and evaluating factories has become second nature. I forget sometimes how interesting it is after doing it for so long, but it is interesting. Knowing how the products we use every day are made is pretty cool. It's good to respect the hard work that goes into the everyday items we take for granted.

With that in mind, I saw the opportunity to show you behind the scenes with my recent visit to a "cheap sunglasses" factory in Shenzhen, China. Cheap glasses are an item we all use without thinking about where they came from, and even disparage their quality without a second thought. However, visiting a factory that makes them, you see that it takes quite an operation to pull-off, and you meet good people who work hard to put a product out that many of us enjoy. For many of us, what would we do without inexpensive glasses? All it takes is losing one pair of Ray Bans before you realize the value of being able to pop in almost any store anywhere and buy a cheap pair to get your through the rest of your vacation, and not have the stress of the investment you make in an expensive pair.

So, a day in the life of a manufacturing engineer. Usually starts with delivery Mcdonalds, then out the door, hiring the Chinese uber, and out of the city to factory country. Here are some pics of the trip. It takes about 1-2 hours to get to factory zones, where they're everywhere you look. We went to Heng Gang, which is a small factory district where about 80% of the low-mid grade glasses in the world are made. Pretty weird.

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Dididache is like uber. This 30km ride was about $20usd


bye bye home


Leaving the city. Shenzhen city, especially around the bay, is a young city, spread out, green, low smog, great weather, nice place.

There's a mountain range just north of the city and to get to the burbs and up toward Dong Guan and Guang Zhou you have to take one of the tunnels. It's still Shenzhen metro area on the other side, and it turns into city centers surrounded by and full of factories. It's where Foxconn makes the Apple stuff that you belong to. The mountains are quite pretty. Apparently there are state parks with hiking trails. I've always intended to check them out, but well... no.


Tunnels!

South China is full of places like this; population centers with factories interspersed with shopping malls and restaurants. Here's a picture of the factory entrance and a couple shots of the surrounding neighborhood, including the restaurant where we ate lunch.



rocketsullyktv.jpg
Rocket and Sully love KTV

Even small towns have plenty of flashy karaoke bars. Many business deals are made after hours of drinking bai jiu in the ktv bars. Some are pretty filthy, but others are nice, complete with marble staircases and full auditoriums chinese pop stars play on the weekends. I could do a whole post on the Chinese KTV culture. I could do a lot of things. But I digress.

Manufacturing 101

When you visit a factory, here's the agenda:

  • Introductions
  • Look at their product samples
  • Tour the Factory
  • Sit-down discussion - They tell you about the factory, you tell them about your product, and then plan next steps
  • Lunch - they really, really, really want to take you to lunch. For some reason it's very important. If you don't like Chinese food then just stop reading right now.

Depending on the complexity of the project and size of the factory, this whole process could take you half a day or a full day.


The factory floor

This is a relatively small factory, but they can still put out a million pairs of glasses per year. That's called capacity. You always want to know the capacity of the factory and if it's enough for your needs. Similar to how I need to know my wife's capacity to listen to my bad jokes.


They make a lot of different kinds of glasses


These acetate glasses start from the raw material and get machined out to the rough shape


They use buffer machines like this to smooth and polish the rough shape


To get the metal inside the plastic, they use a machine like this, which holds the arms of the glasses, called "temples", inside a fixture that heats and semi-melts the plastic, then a ram shoves the metal into it.


buffing, sorting, assembly, and packing stations


Metal Frame stations for steel and titanium, fixture shelf, and inventory room.


Eye gouging machine for unruly employees.

Here's a checklist of information and qualities to look for at a factory:

  • Cleanliness and organization: Does the material flow between stations make sense? Is the factory well-lit? Are there piles of crap everywhere?
  • Equipment: What machines do they have and how many?
  • Tooling and fixtures: This is important. Regardless of the product or machine process, every part is different and the machine will need a specific fixture or tool made for that product. The quality and precision of a factories' fixtures and organization of those fixtures is a sign of their capability.
  • Materials: What materials are their products? What raw materials do they buy and from where?
  • Certification: Do they have paperwork for their material and equipment?
  • Quality Control: Every factory should have a quality control laboratory where they have test fixtures and equipment. Some may have them just for show, so it's important to see if they are actually using it while you're there.
  • Evidence of their current business: Is the factory busy(could be suspiciously quiet or actually too busy)? Do they have nice product samples? Do they make products for brands you recognize?

The answers to these questions could be good or bad depending on your needs. On the extreme ends you have high price, best quality and then you have low price, low quality. Usually you want something in between. Sometimes price is more important than quality, and you can let a few things in the above list slide. But if there is no room for error, you have to pay the price and you need a factory that has everything and knows it. They'll charge a premium.

Of course these are just the basics. I could speak volumes on any of the above items. If you have any questions or want me to elaborate, just ask!

and then... lunch. In this case it was some delish hunan food. The factory is not happy with your visit if they don't witness you eat enough food to last you for the week.


some pork ribs, garlicy chicken, tofu, pretty good

Well I hope that was informative and gives you a new respect for your glasses. I'll add one more thing, you may look at this factory and say yeah it looks kind of messy and dirty, it makes sense that they're making low-end glasses. I'll tell you this, Ray Ban's factory is 95% the same. They're using the same machines, same process, same level skilled workers. They spend more money on quality control, keeping bad parts from getting out the door. They may have a couple of fancy processes but in the end, for most commodity type brand name products, you're paying for the name, not the work that went into it. High tech products are different, but that's for another post.

The end.

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I'm going to pretend you posted this for me given our recent conversation. Awesome to see how things are really made in China. Can you give some examples of some of the better organized factories you've been in? What were they making and is there a pattern to which ones might be better and in which industry?

People seemed to have liked this post so I'll do another one for sure. It's a good idea to do one about an upper tier factory.

You have a cool job. You must have seen some pretty cool factories in that area. Do they do tours in English?

I toured a small Photo Bioreactor factory in Dalian when I was looking into building one. I haven't been I too many factories but they all seem quite interesting. All the machines and tools that I can't even pretend to use.

Yep I've seen just about every kind of factory there is. Bigger factories will have someone that speaks at least a little english, but most do not. In this case the factory boss took us around and he spoke very little english.

Can't wait for this High tech products are different, but that's for another post.

Awesome post. Thanks for this...

I think you missed a word or two here(shown by the yellow marker).

"Knowing how the products we use every day are made is pretty cool.

Good catch thanks!

Very intricate and unique post. Seeing where these things come from makes you appreciate them a little more. Resteemed.

I cannot understand why cleanliness and tidiness is always so difficult to implement in China.

I have wondered the same thing many times. I think for one thing, a lot of factories get busy and keeping the place organized and clean is the first quality that gets sacrificed because most of the time it's not customer facing.

Great write-up @cryptastic. I'm over the border in HK, haven't 'toured' the factories myself, but my girlfriend (HK Chinese) has worked as a freelance, in-field translator for a few medical equipment companies over in Shenzen, Guangzhou areas. I still can't believe the level of growth in those areas, especially when I think back to the first time I visited as a little 'gweilo' kid with my dad back in the 80's.

wow you were here in the 80's? There was nothing here I've seen some pictures. Must have been cool.

Yup - there was literally nothing. I vaguely remember staying in a crap hotel plonked right in the middle of 'nowhere', not another building around, visiting a school to watch kids perform a dance routine they must have practised a thousand times for people like me, going to a shocking restaurant - I can still remember that clearly. Also, buying fire crackers, and going to a 'shopping mall' which looked like it had recently been looted. E.g - One TV on a shelf, with other random assortments scattered about in no particular order.

And then the next thing I know - boom! Unprecedented growth and commerce. A seriously 'blink and you miss it' kind of place.

@ktkization Here's a good read about manufacturing in China

"If you learn how to make money FOR your self, BY yourself only then will you be truly free"--truer words have never been spoken. I worked very hard when I was in my 20's to get an engineering degree. I worked full time while I was in college.

I've now worked in corporate America for 8 years and I hate it. Every day I go into work I feel like I die a little bit inside. There's no windows and only fluorescent lights and computer screens that strain my eyes on a daily basis. The facility I work in is dusty and dirty. The management has only their self-interest in mind...I could go on and on but it would take several pages of text to fully describe all the things I hate about it. I've thought about going to another job but it's like trading the devil I know for the devil I don't know which is not a very smart thing to do. It's a gamble at best.

It's a paycheck and a pretty good one at that but the amount of time I spend there being miserable and feeling trapped on a daily basis has crushed me the past year or so. I've been working really hard to get a few different businesses of my own off the ground but it's very slow because I spend so much time at my regular job.

I think all of us here have the thought in the back of our minds that in several years steemit could be huge and be our ticket to financial independence. I'm not counting on it and I'm working on other things outside my normal job as well. But that's the dream for those of us who missed out on the early days of bitcoin.

Best of luck to you in whatever your own businesses are. I wouldn't wish a life of corporate slavery on my worst enemy. This was an excellent post and you deserve every bit of rewards you get for it. You've got my upvote, for what it's worth.

Congratulations! This post has been upvoted from the communal account, @minnowsupport, by cryptastic from the Minnow Support Project. It's a witness project run by aggroed, ausbitbank, teamsteem, theprophet0, someguy123, neoxian, followbtcnews/crimsonclad, and netuoso. The goal is to help Steemit grow by supporting Minnows and creating a social network. Please find us in the Peace, Abundance, and Liberty Network (PALnet) Discord Channel. It's a completely public and open space to all members of the Steemit community who voluntarily choose to be there.

This post has received a 2.30 % upvote from @booster thanks to: @cryptastic.

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