Factory audit

01

What is BYD factory inspection? 

The main purpose of BYD's factory inspection is to ensure that the products, production capacity, management level and other aspects of the suppliers can meet BYD's requirements, in order to ensure the stability of the supply chain and the reliability of product quality. The factory inspection by BYD mainly focuses on whether the quality system of the suppliers complies with the quality system requirements of BYD. This auditing process is based on the ISO9001 quality standard, but it also includes some specific requirements added by BYD itself. It is worth noting that BYD's quality system does not provide detailed explanations of the products, which means that during the factory inspection process, the specific types and characteristics of the products can be disregarded, and only the quality system of the supplier or manufacturer can be evaluated. Therefore, before participating in the factory inspection by BYD, suppliers need to ensure that they have made adequate preparations for this audit. 

02

The scope of the factory inspection by BYD 

Quality Management System: 

BYD will conduct a comprehensive review of the quality management systems of its suppliers, covering quality management strategies, quality manuals, procedure documents, operation guidelines, etc. 

Production equipment and processes:

BYD will inspect the production equipment and process flow of suppliers to ensure that they can meet the production requirements of the products. 

Product inspection capability:

BYD will assess the product inspection capabilities of suppliers, including inspection equipment, inspection personnel, inspection methods, etc. 

Environmental Management System:

BYD will conduct an assessment of the environmental management systems of its suppliers, covering aspects such as environmental policies, environmental facilities, and environmental behaviors. 

03

Supplier self-assessment 

Before the on-site audit by BYD, suppliers are required to complete the self-assessment as per the notification requirements and provide feedback within 3 working days after receiving this document. If the self-assessment is不合格 or if the self-assessment is not provided on time， the qualification for the audit will be directly revoked.

If suppliers encounter situations where they do not fully understand the audit terms during the self-assessment， they can consult the BYD audit specialist.

Checklist： It should provide a detailed description of the documents， forms， records， measures， and implementation status related to the audit terms. It should not be explained simply with words like "yes" or "no"， or "has been established"； simultaneously， based on the current implementation status of the terms within the company， the self-assessment score should be output.

It is hoped that suppliers will inquire about those unclear points or to better understand the audit standards during the self-assessment. In each corresponding column of the self-assessment form， suppliers should fill in specific evidence and scores. Based on the self-assessment results， the supplier will notify the BYD audit team. 

04

Factory inspection standard framework 

Audit standard structure 

There are several types of inspection standards for BYD factories circulating in the market. This is probably due to the inconsistent standards of different business divisions in the early stage. It is highly likely that a relatively consistent group inspection standard will be formed in the later stage. 

This reference standard is divided into 10 sections. Each section consists of several sub-questions. By asking questions about each sub-question and scoring them based on the degree of compliance, an evaluation is conducted based on the final total score. 

Plate structure 

Serial Number

Plate Name 

Number of questions 

Full score / Maximum score 

1

Quality Management System

Quality Management System 

twelve

36

2

Corporate Social Responsibility 

23

69

3

Design and Development

Design and Development 

7

21

4

Supplier development and management 

7

21

5

Material Management 

16

48

6

Production control 

16

48

7

Measurement and metrology

Testing and Measurement 

8

24

8

Sales and customer service

Sales and Customer Service 

5

15

9

Safety & IT & IPR Safety / Information / Intellectual Property Rights 

21

63

10

HSPM For Product Content

Management of Hazardous Substance Processes (Products Containing) 

21

63

Final overall score judgment conformity degree

Admission = 85% 

Conditional recognition = 70% - 85%

Non-recognition = 70% 

Among them: If the total score of the audit is ≥ 85%, it is recommended to be classified as a Grade A supplier; if 85% > total audit score ≥ 70%, it is recommended to be classified as a Grade B supplier. 

If the total score of the review is less than 70% or the score of any single module is less than 70%, the review conclusion will be "Not Approved". 

If the review discovers any of the following situations, the total score will be 0, and the review conclusion will be "Not Approved". 

a. Illegal practices such as the use of child labor and forced labor. 

b. The supplier engaged in bribery on their own initiative, deliberately concealed facts, and fabricated key evidence. 

c. Failure to supply goods in bulk to other customers (lack of production lines or incomplete setup of production lines, making it impossible to produce continuously at the normal pace) or financial collapse. 

d. 1 or more serious non-compliances 

Note: Any of the following situations during the review process will be regarded as a serious non-compliance: 

More than 6 (including 6) minor non-conformities are concentrated in a certain area or a certain process. 

Serious non-conformities include: falsification of records for key features, quality process information, etc.; non-conformities that may cause product regulatory and safety issues during product use. 

Any non-compliance will result in the flow of unqualified products to the customers. Based on judgment and experience, non-compliance will not only lead to the failure of the quality system, but also substantially reduce its ability to ensure the production process and product quality. 

Improvement Measures Plan 

The supplier should respond with a revised plan within 3 working days upon receiving the non-compliance written record. Based on the revised plan, they should start submitting relevant evidence of improvement. The specific completion time for rectification shall be as agreed upon by both parties, but it must not exceed 3 months.