Why a QC inspection in level 1 is rarely a good idea- INHI

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Why a QC inspection in level 1 is seldom a good idea? For checking certain shipments in a reliable manner, we should send several inspectors or 1 inspector during several days.

(Note: most of the inspections are performed within 1 man-day but when the order quantity is large, when there are many references to check, or when the product is complex, we sometimes need 2 man-days or more).

But sometimes when we request several man-days to perform the inspection, we get a push back from the client, who does not want to pay more than 1 man-day.

What happens? Some importers decide to save money by switching from the standard “level II” to “level I”.

For example, for an order or 40,000 pieces, the inspector should select 500 samples under level II. But only 200 samples under level I. It often makes the difference between 2 man-days and 1 man-day.

However, it comes with a much higher risk. The inspection report might not show any issue precisely because so few samples were checked. A normal-level inspection might have detected an issue.

What does the ISO 2859 standard say about the different levels?

    Unless otherwise specified, level II shall be used. Level I may be used when less discrimination is needed.

In other words, the reduced inspection level is appropriate when the client is very confident that the quality of the products is acceptable.

Not when the client wants to save a few dollars… Which does not make sense, as we demonstrate below.

Let’s say you save 1 man-day (268 USD) by switching to level I, and let’s say you increase your risk of receiving unacceptable products by 10% on a 10,000 USD order. By the way, this 10,000 USD order actually costs you 15,000 USD (including duties, freight, followup time…).

Isn’t the expected value of your risk (10% of 15,000 USD) actually a much higher sum than your savings on quality control?

Takeaway for importers: level II represents the minimal sampling size to check if you want a reliable inspection.

   There is also a “level III”, where more samples are checked. This inspection level is used for suppliers that recently had quality problems. Very few clients use this level, even though it would be appropriate for many situations.

On the other hand, some clients are very demanding about quality and ask us to perform 100% QC checks!

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