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Prepared By : Alex Choi Date : Oct 30, 2009

Current quality assurance practices in Hong Kong. Prepared By : Alex Choi Date : Oct 30, 2009. About the speaker. Alex Choi MSc in Manufacturing Systems Engineering from University of Warwick University UK

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Prepared By : Alex Choi Date : Oct 30, 2009

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  1. Current quality assurance practices in Hong Kong Prepared By : Alex Choi Date : Oct 30, 2009

  2. About the speaker Alex Choi MSc in Manufacturing Systems Engineering from University of Warwick University UK Work for the electronics manufacturing industry in Hong Kong and China over 20 years in various areas including industrial engineering, QA, manufacturing, sales and marketing, and management position. Currently holds the General Manager position of VTech Communications Limited. Prior to joining the Company, Alex Choi worked in various electronic manufacturing services companies in Hong Kong and have extensive China factory management experience. email : alex_choi@vtech.com company website : www.vtechcms.com

  3. China as the World Factory ? Product manufactured in China Typical product typesBrands, Players High end Industrial, Medical, Automotive, GE, Siemens, e.g. X-Ray machine, CT scanner,General Motors, Car Toyota, Nissan, Benz Medium PC, HDD Dell, Seagate Low End Telecommunications system HuaWei, 3Com, Cell phone system, phone set, e.g.ZTE, PuTian, toys, consumer products, simple McDonald, Mattel, mechanical assemblies Hasbro Product Complexity

  4. 1980-2007 China Export-Import Value Trend USD100M Source: National Bureau of Statistics of China Web site: http://www.stats.gov.cn

  5. Problems associated with these massive product manufactured Traditionally, western people believe China products are cheap, copies, and low tech… To some extent, it is not totally wrong ! China manufacturers (including investors from HK and Taiwan…) are able to manufacture at very low cost, with average to good quality products. Product selling cost & margin down trend has drawn the attention to good product quality and higher manufacturing yield -> QUALITY of product itself and manufacturing processes

  6. Why quality is important ? … quality is everything, quality is king…?! Not only that ! Be practical, the product liability never ends.... More and more massive product recall, heavy fine...... Mentality changed over the past decades. Before was : Buy and sell relationship, Inspected, accepted, then shipped Product corresponding liability ends ! Not any more...... Some examples :

  7. Union Carbide India Limited leakage killed 8,000+ in 1984 Union Carbide Case History Thursday, 02 February 2006 In November of 1999, several victims of the 1984 Union Carbide gas plant disaster at Bhopal, India, filed suit against Union Carbide and its former CEO, Warren Anderson, in federal court in New York. The leak of poisonous gas from the Bhopal pesticide plant killed over 5,000 people immediately, and injured many thousands more. Union Carbide's actions violated international human rights law, environmental law, and international criminal law, and the plaintiffs sought to hold the corporation accountable for these violations. In addition to the 1984 disaster, the plaintiffs sought compensation for ongoing pollution and contamination at the Bhopal plant. The history of the attempts to hold Union Carbide legally accountable for this disaster is long and complex. Lawsuits were filed in the U.S. as early as 1985, but they were dismissed in favor of litigating the case in Indian courts. The Indian Supreme Court finally ordered a settlement of the claims against Union Carbide in 1989 for a mere $470 million, less than $10,000 for each immediate death, let alone the later suffering and deaths of the survivors. The Indian Supreme Court also allowed criminal cases against Union Carbide and Warren Anderson to continue, but neither ever appeared after arrest warrants were issued. The Bano case suffered a setback in August 2000 when the trial courtdismissed the lawsuit. The plaintiffs won a mixed victory in November 2001, however, when the Second Circuit Court of Appeals reinstated parts of the case. The appeals court allowed all of the claims of pollution and contamination not directly related to the 1984 gas plant disaster to proceed. It sent those claims back to the trial court. The court dismissed the claims relating to the 1984 disaster, however, because it found that the 1989 settlement precluded any other legal claims, despite the fact that Union Carbide and Anderson had failed to show up to answer the criminal charges against them. The court never ruled on whether Union Carbide's actions did, in fact, violate international law norms.On March 18, 2003, the trial court dismissed the Bhopal residents' claims that Union Carbide caused massive water pollution of the local water supply. In dismissing the case, the Court did not address the question of whether Carbide caused the pollution. Instead, the Court dismissed because, in its view, the named plaintiff was injured too long ago to present a claim, the organizations that filed suit were not proper representatives of the victims, and an order that Union Carbide clean up the plant would be difficult to enforce. On March 17, 2004, the Second Circuit reversed that decision in part. It held that while the named plaintiff’s personal injury claims were time-barred, her property damage claims were not. In addition, the Court held that Union Carbide could be ordered to clean up individual victims’ property, and could also be ordered to clean up the plant site itself, if the government, which owns the land on which the plant sits, were to intervene and request such a clean-up. Source : http://www.earthrights.org/site_blurbs/bano_v._union_carbide_case_history.html

  8. Union Carbide India Limited leakage killed 8,000+ in 1984 This case also named as the world’s worst industrial disaster Company : Union Carbide Indian Limited (UCIL) Location : India Bhopal Date : December 3, 1984 Case : 42 tonnes of methyl isocyanate gas leakage (pesticide) Killed : 3,000 immediate death, total over 8,000 within two weeks, and many injury Causes : Poor process control and maintenance, causing over pressure in the storage tanks, and finally led to leakage at relief valves Out-of-court settlement in 1989 : US$470, equals < US$10,000 per death Note : Union Carbide (parent company) sold UCIL share in 1994 to Eveready. Dow Chemical merged with Union Carbide in 2001. Union Carbide name disappear. Source : http://en.wikipedia.org/wiki/Bhopal_Disaster#Background_and_causes.2C_summary

  9. China recall toy factory boss hangs himself

  10. China recall toy factory boss hangs himself

  11. Milk contaminated with melamine 10,666 children still sick from milk in China October 10, 2008 BEIJING More than 10,000 children remain hospitalized in China's tainted milk scandal, Chinese health officials revealed, while the country defended its dairy products yesterday at a meeting of the World Trade Organization. The Health Ministry said in a statement on its Web site Wednesday that 10,666 children were still in hospitals after drinking milk contaminated with melamine, an industrial chemical that can cause kidney stones and lead to life-threatening kidney failure. No new deaths have been recorded, it said. The scandal has so far been blamed for the deaths of four babies and the sickening of about 54,000 other children in China. China's food exports have increasingly suffered, with more than 30 countries restricting Chinese dairy imports and in some cases all Chinese food products. Source : http://www.baltimoresun.com/news/nation/bal-te.briefs103oct10,0,7533258.story?track=rss

  12. Milk contaminated with melamine

  13. 三鹿Sanlu Group集团原董事长田文华一审被判无期徒刑 Tian Wenhua, former chairwoman and general manager of Sanlu Group, filed an appeal on February 1, the appeal deadline. She pled not guilty in the Intermediate Court. Tian was sentenced to life in prison for “producing and selling fake or substandard products” in late January. Three top Sanlu officials, Wang Yuliang, Hang Zhiqi and Wu Jusheng, also filed an appeal to the Higher People’s Court of Hebei Province that same day. The Intermediate People’s Court also ruled that Sanlu Group is guilty of “producing and selling fake or substandard products”, but Sanlu Group did not appeal the decision, thereby accepting the verdict. The Sanlu tainted milk scandal was exposed to the public in early September 2008. Tian was detained by the Shijiazhuang Public Security Bureau, accused of “producing and selling fake or substandard products” and was officially arrested on September 26, 2008. The court found that Tian knew that the Sanlu milk formula contained the industrial chemical melamine and understood its harmful effects on the human body, but did not stop producing or selling the tainted Sanlu milk formula. The court also ruled that she was guilty of ordering the subsidiaries of Sanlu Group to produce liquid milk out of the tainted formula. The court ruling found that “Tian cited the alleged ‘European Union Standard’ and allowed Sanlu milk formula containing melamine less than 10 milligrams per kilogram to enter the market.” However, Tian asserts in her appeal petition that it was Guo Xueyan, a director from Sanlu’s New Zealand investor, Fonterra, who provided the standard and suggested Sanlu to use it. Full article in Chinese: http://www.caijing.com.cn/2009-02-02/110052079.html

  14. Guangdong counterfeit wine 中国食品产业网 (2009-2-3 9:42:06)   尽管广东当局过去几年不断严厉抽检打假,今年春节前又掀起抽检打假风,但假酒泛滥的清况在广东却一直没有改善。一名知情人士向本报透露,虽然没有统计数据,但他可以肯定,广东的很多夜店和娱乐场所仍在卖假酒,尤其是假洋酒,因为“太好赚了”。   尽管广东当局过去几年不断严厉抽检打假,今年春节前又掀起抽检打假风,但假酒泛滥的清况在广东却一直没有改善。一名知情人士向本报透露,虽然没有统计数据,但他可以肯定,广东的很多夜店和娱乐场所仍在卖假酒,尤其是假洋酒,因为“太好赚了”。  这名知情人士从事食品调味业,他告诉记者,无论什么品牌的酒味都能假冒,一般消费者是无法辨认出来的。他透露,时常会有人找上他,要他调配各种酒味,但由于这种生意是违法的,他肯定会回绝。不过,周围的很多同行却愿意铤而走险,因为利润的确很有吸引力。  知情人士说:“在广东各大城市,尤其是珠三角城市,夜店的竞争非常激烈,大家都在搞促销,一瓶洋酒的价格可以低至300多元(人民币,下同,约60新元)。若他们用的是真洋酒,哪里有钱挣?” 他告诉记者,即使是假酒,也可分为几个层次,素质较好的,喝下去对身体基本上无害;素质较差的,喝了之后可能造成头疼、呕吐等现象,长时间累积,对身体必定有害。

  15.   “在广东的夜店,最安全的就是喝啤酒,因为中国的啤酒太便宜了,没有人会去假冒。”他幽默地告诉记者。  春节期间,广东人的酒类消费迈入一年当中的旺季,假酒的制造也进入高峰期。  广东中山市警方最近就打破一个制造、储存、销售“一条龙”的假冒洋酒组织,在四个窝点中发现假冒的“轩尼诗”、“芝华士”、“人头马”、“五粮液”等国内外品牌名酒近百箱,数量近千瓶,涉及金额70多万元。  查案人员在现场存放的账本中发现,这个组织的许多假酒都卖给一些酒店和KTV、酒吧等娱乐场所。  假酒问题在广东,乃至整个中国,已存在多年。尽管各地警方全力打假,但在高利润的诱惑下,假酒业可说是“野火烧不尽,春风吹又生”。此外,各种酒类品牌的持有者,往往也不愿高调处理假酒案件,他们若发现有人假冒自己的品牌,一般会倾向以警告方式低调处理,若假冒的清况不严重,他们甚至可以睁一眼闭一眼。主要因为是,他们担心自己品牌的假酒新闻若时常出现,将影响品牌的形象和销售额。  “在广东的夜店,最安全的就是喝啤酒,因为中国的啤酒太便宜了,没有人会去假冒。”他幽默地告诉记者。  春节期间,广东人的酒类消费迈入一年当中的旺季,假酒的制造也进入高峰期。  广东中山市警方最近就打破一个制造、储存、销售“一条龙”的假冒洋酒组织,在四个窝点中发现假冒的“轩尼诗”、“芝华士”、“人头马”、“五粮液”等国内外品牌名酒近百箱,数量近千瓶,涉及金额70多万元。  查案人员在现场存放的账本中发现,这个组织的许多假酒都卖给一些酒店和KTV、酒吧等娱乐场所。  假酒问题在广东,乃至整个中国,已存在多年。尽管各地警方全力打假,但在高利润的诱惑下,假酒业可说是“野火烧不尽,春风吹又生”。此外,各种酒类品牌的持有者,往往也不愿高调处理假酒案件,他们若发现有人假冒自己的品牌,一般会倾向以警告方式低调处理,若假冒的清况不严重,他们甚至可以睁一眼闭一眼。主要因为是,他们担心自己品牌的假酒新闻若时常出现,将影响品牌的形象和销售额。 据了解,假冒分子用的酒瓶一般是保存完好的真品酒瓶,这些都是他们从市场上收购回来的。因此,中国某些城市的警方近期特别呼吁市民,在喝完洋酒之后,应该有意识地拿走酒瓶或者撕毁酒瓶上的标签、防伪标志等“正牌标识”,这样将有助于杜绝假冒洋酒的出现,因为生产酒瓶和标签的成本很高,假冒分子得不偿失。

  16. Source : http://www.foodqs.com

  17. Henan counterfeit Maotai wine with Dichlorovos • 2009-01-06 10:11:07 来源: 中国经济网(北京) • 核心提示:1月4日,河南查获一制假茅台酒的作坊,工商人员在作坊内发现调酒味用的剧毒农药敌敌畏。 • 中国经济网1月6日报道 前日17时40分,中原工商分局李宏涛来电称,他们接到群众举报,在淮河路西段的李江沟村一民房内,发现一个制假茅台酒的作坊,因为作坊涉案价值太大,他们已经通知警方,对翻窗逃跑的嫌疑人展开调查。他们在作坊内,发现调酒味用的剧毒农药敌敌畏。

  18. 当日,在淮河路西环道边上的老年公寓东侧一处民房的一楼,远远就能闻到一股浓烈的酒曲气味儿。工商人员正在两间民房内,点查大量的“茅台酒”,屋内堆满了写着“茅台酒”字样的箱子,里面已装满了“成品酒”,一角放着两个塑料大桶,盛满刚调好的酒,酒桶边上放置着一暗色瓶子。半瓶液体经鉴定,确认是剧毒农药敌敌畏。“这专门用来调酒出味儿的。几年来,就有不少人喝假酒喝死的,太可怕了。”在墙角处,工商人员又发现另一满瓶未开封的敌敌畏农药。 现场的中原工商分局监管科王智科长介绍,当天17时30分左右,他们接到群众举报,此处窗户内飘出酒味儿,有人拉走成箱的东西,但租房者每次进屋都立即紧闭房门,里面的人好像怕有人进他们的屋内。“我们的车刚到,老板就冲上了二楼,从二楼阳台上跳下去跑了。初步查明这是一个制造假茅台作坊,现场查获200多瓶茅台酒以及制酒工具和大量原料,按市场价每瓶700元算,涉案价值14万元以上。”因为制假者涉嫌非法经营,涉案价值巨大,工商执法人员立即通知中原公安分局刑侦人员赶到,现场只留下涉嫌制假者的一本结婚证,显示嫌疑人姓卢,中原刑侦已根据该结婚证,对卢某追查中。 房东因为给造假者提供生产作坊,也在接受警方的调查。 (郑州晚报 记者 徐富盈/文 王银廷/图) (本文来源:中国经济网 ) Source : http://news.163.com

  19. Counterfeit Maotai wine with Pesticide 假酒窝点:杀虫剂勾兑出酱香型茅台 中国酒网 (2009-2-11 16:17:28) 春节前,南京市栖霞公安、质监接到市民举报后,联手端掉了栖霞区马群东花岗村一个制售假酒的特大窝点,此次查获的假酒数量之大可谓近几年罕见。两辆货车来回几十趟,用了5个多小时才把这批假酒运出,抓获涉案人员66人,其中35人被批捕。  出租屋里造“名酒”1月7日22时,200多名执法人员悄悄集结。执法人员首先对村口的主要交通要道进行把守,随后悄悄地对涉嫌制售假酒的出租屋外围现场进行封锁。随着统一行动的一声令下,200余名公安、质监执法人员对该村22户出租屋当场进行了清查,有17户出租屋在造假。当晚警方抓获涉嫌制售假酒者53人,接着又从外围抓获涉案人员13人。此外,还查获8台机动车,5本笔记本电脑及银行卡若干,卡内金额及现场查获的现金,加起来有66万余元。

  20. 杀虫剂掺入“茅台”  在一间灌装假茅台酒的生产窝点里,涉及茅台酒市场上的十来个品种。经执法人员现场清点还有精包装礼品酒杯若干,甚至连茅台酒没有的品种也赫然在场,其制作水平之高让消费者单凭肉眼根本无法鉴别。在制假现场,一箱“全无敌”杀虫剂和一支注射器引起执法人员的注意,经制假者交待,茅台酒制假者为让假酒从口味上达到逼真的效果,一般都要将这种毒药注射到假酒中,通常每瓶注射一至两滴。  茅台为什么会有杀虫剂的味道呢?原来茅台是酱香型的白酒,在发酵过程中自然形成了这种独特的味道。很多人其实是不喜欢这个味道的,但都知道真正喜欢喝酒的人一喝茅台,必须有酱香味,否则会被视为假酒,于是茅台酒制假者就在假茅台酒中加上杀虫剂。  经审查显示,张某、宁某、董某、罗某等为首的60余名制假分子,均为湖北省孝昌县人,2008年10月来到马群东花岗村,大肆生产假冒高档白酒。在销往南京部分酒店同时,还将假酒销往苏州、连云港、盐城、扬州、青岛等9个地区的饭店、个体超市和酒类批发市场。质监人员分析,如果这批假冒白酒全部销售出去,非法获利将达300万元。从目前调查情况看,这一案件算得上是南京市历年查处的假酒案件中,涉案人数最多、涉案金额最大的一起。 Source : http://www.cnwine.cn

  21. Industrial alcohol in counterfeit wine 中国酒网 (2009-2-9 11:08:13) 河源市酒类专卖局与源城区酒类专卖局近日在酒类专项清查行动中,分别在源城区4家酒类批发点及销售点发现多批疑用工业酒精勾兑的某知名品牌的假白酒,其中在该区源南镇白田村的一家商店的仓库内共查获假酒37箱共计443瓶,而在河源市区东江河边紫金桥下的一家商店,当地酒类专卖局执法人员共查出该商店已销售出去的假白酒118瓶。  昨日,河源市酒类专卖局执法人员仍在紧急追查被销售出去的假酒去向及其假酒来源。  据当地酒类专卖局执法人员介绍,12月10日中午,该局接到多位河源市民举报,称该市源城区源南镇白田村的一家商店正在销售一种疑用工业酒精勾兑的冒牌假白酒。  执法人员随即到该商店进行现场突击检查,发现该商店出售的某品牌白酒无酒类流通随附单、食品卫生许可证、批次许可证,经某品牌制酒厂家的打假人员辨认,确认属于仿冒假酒。在该商店仓库,执法人员当场查获仿冒假酒37箱共443瓶。  “正品酒是粮食酒,而这种假酒多为勾兑工业酒精制成,对人体有相当大的危害。”当地酒类专卖局一位执法人员昨日告诉记者,随后执法人员在河源市区东江河边紫金桥下的一家商店清查时,发现该商店12月6日购进销售的同一品牌假酒120瓶,店里只剩下2瓶假酒,其余的已被销售一空。  而在河源市区站前路一个酒类批发仓库清查时,执法人员抵达时发现该酒类批发仓库大门已经紧闭,一位执法人员称:“估计是得到同伙告密后临时关门的。”文章编辑:cyanine 文章来源:广州日报 Source : http://www.cnwine.cn

  22. 澳门居民称在街市买到假鸡蛋 民署表示关注(图)澳门居民称在街市买到假鸡蛋 民署表示关注(图) 2009年02月20日10:58来源:中国新闻网   据澳门日报报道,对于有居民称怀疑购买多只假鸡蛋,澳门民署管委会委员伍秉贤表示,过去曾有多宗问题鸡蛋投诉,但其后查证并非澳门进口,不排除有非正途来源的鸡蛋流入澳门,利用假冒红印蒙骗居民。  伍秉贤呼吁居民若发现问题鸡蛋,应记下生产编号及销售点,连同问题样本送交民署、经济局或卫生局,以便有关人员检验。  有居民表示,早前怀疑在佑汉街市购买到假鸡蛋,遂把假蛋带到民署化验所要求化验,但有关人员并没有接纳。伍秉贤回应指,居民若怀疑出现食品安全问题,可把有关食品送交由民署、卫生局或经济局,前线人员将会接收有关产品并登记,由部门转介技术部门化验。

  23. 伍秉贤称,事件中涉及者并非化验所人员,并不清楚内部规则,言语间令该名居民误会要自行化验。他承认有关人员在处理事件中有缺失,并对该名居民致歉。 伍秉贤表示,所有进口澳门的鸡蛋,其来源场地、日期、生产编号、商铺位置,民署均一一登记,居民若怀疑有假鸡蛋,可以向民署反映,以便有关人员追查。此外,鸡蛋在高温下,外壳印有的编号会消失,鸡蛋煮熟后也有所变化,不利检验及找寻来源,若居民发现鸡蛋有异样,不要煮熟,尽量保留原状,送交民署,以便追踪货品的来源。  今年1至2月所收集到的问题鸡蛋投诉不足10宗,只有约2宗提供样本,其中居民交来的鸡蛋壳上的红色编号,多为未登记,不排除是非正途流入澳门。  伍秉贤强调,民署现时已与海关方面加紧联系,加强堵截问题鸡蛋流入。民署19日下午联同卫生局、经济局的兽医及人员,大规模抽查市面多个鸡蛋零售点,争取最短时间公布查验结果。  民署化验所处长吴伟濠表示,检验鸡蛋的真伪须经四方面检测,每个分析所需时间一至两天,若化验样本中发现色素、苯甲酸钠及金属铝(明矾),便是假鸡蛋。 Source : http://hm.people.com.cn

  24. Quality issues ring the bell All these issues ring the bell of all manufacturers. What have already been done in most electronics manufacturing factories ? For sizeable and structured ones ? What countermeasures have been added lately ? What is the coming trend & consequence ?

  25. What quality measures are being enforced in most electronic factories now • Usually at four levels : • At supplier manufacturing site level • Own factory IQC • In Process QC • Outgoing QA

  26. What quality measures are being enforce in most electronic factories now • Supplier manufacturing site level • - ensure your suppliers have enough financial strength to do business with you ! • - source inspection, for those bulky & relative less expensive parts, and • expensive to transport. Say, packaging, plastic, mechanical assemblies • - 3rd party certification, e.g. conformance to ISO9000, QS16949 system, etc • - regular supplier audit. As a rule of thumb, at least once a year • 2. IQC level • - AQL sampling check on all the parts • - Less tight on low defect ppm parts, e.g. IC, semiconductors • - Tighter on higher defect ppm parts, e.g. mechanical fabricated parts, plastics, PCB, metals • - Use 80/20 rule : 80% of the problems are caused by 20% of the parts • - Monitor the incoming quality trend of : • Individual part types by week, by month • Individual suppliers by week, by month

  27. What quality measures are being enforce in most electronic factories 3. In Process QC level - In process quality check and verification station, usually 100% - capture of these quality data, failure mode, and distribution for corrective actions - monitor these quality by week, by month...... 4. Outgoing QA level - QA acts as a virtual & independent external party/customer, to do outgoing quality check per end customer specifications - usually by lot AQL sampling - capture of these quality data, failure mode, and distribution for corrective actions

  28. A typical Manufacturing & QA Planning Process Flow - Define fabricate assembly fixtures & tools needed - Suggest quality check point • Confirm testing sequence, location, • method, equipment, parametric • requirement • Quality Plan • Inspection Instruction document

  29. Control Plan of Digital Torque Product (an example) Please double click =>

  30. Manpower of QA and IQC As a general rule, QC and inspection work are not value added process, the lower the better. Is there any general market norm for how much is excessive ? Depending on the type of business, and the selling price of the product, it should not be >10%

  31. Typical QA & QC manpower ratio in a China factory QA&IQC (8-10%)

  32. What countermeasures have been added lately ? • Intensive factory inspection and incoming parts verification • Financial background / strength of the supplier become an important factor • Verifications to be done by not only internal quality persons but also external labs • Mandatory for CoC, “Certificate of Conformance” from supplier • Signing Letter of Undertaking • Buying product liability insurance

  33. What is the coming trend & consequence ? • Cost of business goes up • Selling price increases • More cautious in manufacturing the products • Smaller size companies go out of business !

  34. Thank you!

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