Inspection Notes

8/18/2019 Inspection Notes

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Inspection and quality control are the most important tools in today's corporate world. A third-

party inspection company is a business organization complying with the ISO17020 standard.

Third-party inspection or "Category A" is the most stringent of the 3 categories of inspection

organization that the standard specifies. Such organizations are third party inspection agencies that

must not be inoled in any actiities other than inspection and testing. !ased on this reuirement

the third party inspection agency must not be inoled in design# procurement# fabrication#

construction and installation. All companies and parties such as buyers# sellers# engineering

companies# plant owners must hae access to these agencies and use their serices. The

confidentiality# independence# impartiality and integrity are important conditions for being a Third

$arty %nspection Company.&(

4 TYPES O !"#$ITY I%SPE&TIO%

). A pre-production inspection tells the buyer which *ind of raw materials +or components, will be

used. actories are often suspected of lowering their costs by purchasing substandard materials#

and this can be disastrous for the buyer +e.g. the wrong *ind of chip in an electronic deice,.

. A during production inspection +often called /0$12 in the industry, allows the buyer to hae an

idea of aerage product uality# early in the production cycle. %t is the most useful and the most

under-rated tool at the disposal of importers# who often only rely on final inspections.

3. The final random inspection +also called pre-shipment inspection, is by far the most common

type of 4C chec*. %t ta*es place once )556 of shipment uantity is finished and at least 756 is

pac*ed# so it can be a real random inspection +this is not e8actly the case if uality is chec*ed

earlier, and suppliers cannot play games.

9. The container loading inspection# li*e the pre-production inspection# it is seldom used. !ut it can

be a worthwhile option in some specific cases. &3(

Industrial Third Party Inspection

Industrial Third Party Inspection refers to independent inspection services that are

provided by inspection agencies. This article supplies you with information about TPI

denition, TPI companies and also supplies you with third party independent

inspection procedures for dierent x, rotary, electrical and instrumentalequipment.

In purchasing and procurement proects the sellers and vendors are rst parties.

The second parties are purchasers or buyers.

https://en.wikipedia.org/wiki/ISOhttps://en.wikipedia.org/wiki/Third-party_inspection_company#cite_note-2https://en.wikipedia.org/wiki/Third-party_inspection_company#cite_note-2https://en.wikipedia.org/wiki/Third-party_inspection_company#cite_note-3http://www.inspection-for-industry.com/third-party-independent-inspection.htmlhttp://www.inspection-for-industry.com/third-party-independent-inspection.htmlhttps://en.wikipedia.org/wiki/Third-party_inspection_company#cite_note-2https://en.wikipedia.org/wiki/Third-party_inspection_company#cite_note-3http://www.inspection-for-industry.com/third-party-independent-inspection.htmlhttp://www.inspection-for-industry.com/third-party-independent-inspection.htmlhttps://en.wikipedia.org/wiki/ISO


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!irst party inspection refers to quality control activities that are done by equipment

vendors or sellers.

"econd party inspection refers to inspection activities that are done by equipment

buyers or purchasers.

In fact rst party is seller and second party is buyer. "o when you say second party

inspection, it means that an inspection and quality control activities that are done

by a buyer and when you say rst party inspection, it means that an inspection and

quality chec# that are done by a vendor in its construction shop.

These quality controls and inspections are done based on Proforma Invoice,

Purchase $rder and International standards.

The Third Party Inspection refers to independent inspection activities that are done

by a Third Party Inspection %gency either hired by a buyer or seller.

The I"$ &'()* + equirements for the operation of various types of bodies

performing inspection+ species characteristic of these #inds of inspection agencies.

-ased on these requirements, these agencies must be impartial and independent in

their inspection activities and in their inspection reports and results.

%ll interested companies such as traders, buyers, sellers, engineering companies,

construction companies must have access to the services of these inspection

agencies.

The impartial and independence conditions are very important factors for third party

Inspection agencies. In this direction I"$ &')() does not allow these companies to

be participated or involved in any procurement, purchasing, construction,

installation and even design activities.

They must only provide third party inspection services and not anything else.

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-ased denition of the I"$ &')(), these inspection companies are category %

inspection organiation. -ased on this standard there are two more inspection

organiations that are not independent.

% category - inspection organiation is an inspection department in a large+scale

company that is involved in the design, procurement, construction, installation, etc.and this inspection department provides inspection services to its own company.

/ormally a category - inspection organiation is a quality control department in an

engineering or 0P1 company. This department assists company in procurement and

purchasing proects and ma#es inspections on the equipment and materials that are

purchased by own company.

"uggest an 0P1 company has a contract with an oil company for design,

procurement, and construction of a desalting plant. Then the quality control

department of this 0P1 1ompany ma#es inspection on the equipment and material

that have been ordered by 0P1 contractor for this desalting plant. "o this is what we

name second party inspection and based the I"$ &')() is category - type

inspection.

This inspection will not be enough by end+user or in this example oil company. The

oil company will hire an independent inspection agency or in other word a category

% inspection company to conduct inspection on the procured equipment and

material by 0P1 company.

"ometimes the end+user or 2oil company in this example3 ignores to hire an

independent inspection company by itself but mandates that the 0P1 1ompany tohire an independent inspection agency that is in their approved list.

4ierent proects have dierent procedures for handling inspection activities in their

procurement proects. "ometimes the procured equipment is inspected by both

parties i.e. by 0P1 contractor quality control as well as by end+user third party

inspection agency. In other word equipment are inspected by category % and

category - inspection organiations.


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-ased on I"$ &')() denition, there is also category 1 inspection organiations.

These inspection organiations are not too much. It refer to an inspection

department of engineering company that provide services to its own procurement

and purchasing proects as well as to other engineering companies. "imilar to the

category - inspection organiations these companies also cannot be independent.

There are lots of scopes of wor# for 1ategory % inspection agencies or in other word

in third party inspection companies. $ne of them is Third Party 5uality

Inspection that refers to quality part of wor#. In this part an inspection agency

chec#s and ma#es sure that the quality of the commodity is as the same of

purchase order specication.

The scope of wor# is determined by buyers and purchasers. "ome of them require

only a pre+shipment inspection and some other may mandate more stringent scope

and as# their third party inspection agency to witness important tests and

inspections such as material certicate review, material identication, welding

inspection, /40 test review, dimensional control, hydro+static testing, mechanical

running testing, performance testing, painting inspection, pac#ing and mar#ing

inspection and loading inspection.

The scope of wor# for inspection and testing is dened through inspection and test

plan 6ITP7. This is very important document in purchasing and procurement proects.

This document identies duty and tas# of each parties regarding inspection during

manufacturing and construction process.

In giant proect it is necessary that an inspection company or a category %

inspection organiation toexpedite inspection activities. It is duty of inspectionagency to chec# that to see if all inspections and tests are done with satisfactory

results before issuing of inspection release notes. -ut in no case an inspection

agency must expedite procurement wor# such as reporting to client about

percentage of manufacturing progress or etc. These are not tas# of inspection

agency* this must be done by 0P1 contractor expeditor engineer or technician.

This chec#ing must be done based approved inspection and test plan. The

inspection agency can use the ITP as chec# list to see if all inspection completed

and their inspection visit reports are available.

It is best practice that an inspection releases note to be referred to the purchase

order number as well as to the inspection and test plan document number. The

quantity also must be stated in release note if the commodity is going to be shipped

partially.

It is responsibility of the category % inspection organiation or inspection agency to

issue an inspection visit report after each visit in manufacturer shop. The inspection

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date must be notied to inspection agency normally ' wor#ing days in advance. It is

responsibility of the vendor to notify the inspector agency. The quality control team

of a manufacturer must chec# inspection and test plan frequently and when they

see they have reached to specic stage of construction that need an inspection,

then must notify inspector for its visit.

The communication channel between inspection agency, vendor and client must be

set+up. This normally is done in Pre+Inspection meeting or Pre+Production meeting.

In this meeting that is conducted before commencement of proect, all parties will

be attended in the meeting and discuss about proect coordination and

communication.

%ll parties are responsible to act and communicate based what is agreed and

conrmed in the meeting and 8inute of 8eeting 68$87 will be based for coming

actions.

aw material inspection must be done based purchase order specication. The third

party material stamp inspection is another important tas# of inspection agencies.

They chec# material conformity based on -"0/ &)()9 requirements for :.& and :.(

certications.

% :.& material certicate refers to the certicate that is issued by a material

manufacturer but a :.( certicate is material certicate that is issued by material

manufacturer but conrmed and approved by independent inspection agency. It is

necessary that inspection agency to witness important test during of manufacturing

process for conrming such certicates

'ey (ene)it o) Third Party Inspection #*ency

). :nsure the uality and uantity.

. :nsure the mar*ing and pac*ing of material as per buyer specification.

3. :nsure the material is genuine and as per specified standard.

9. Sure that prohibited goods not used or sent by consignor in any consignment.

;. Sure the safe and healthy wor*ing condition.

inimize the ris* of defectie products.7. >inimize the cost of organization.

?. %t ensures the actiity Safe and secure.

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BS 7671!rom ;i#ipedia, the free encyclopedia

-ritish "tandard BS 7671


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Documents

Inspection Notes