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Concept
Pre-shipment inspection
Summary
Pre-shipment inspection (also preshipment inspection or PSI) is a part of supply chain management and an important quality control method for checking the quality of goods clients buy from suppliers.
PSI helps ensure that production complies with the governing specification, contract, or purchase order. A final random inspection (FRI) checks finished products, often when at least 80% of an order has been produced and export-packed. Samples are selected at random, according to standards and procedures.
Re-shipment acceptance sampling, involving inspection, and acceptance testing, may be agreed upon between a buyer, a supplier, and a bank, and it can be used to initiate payment under a letter of credit. A PSI can be performed at different stages before shipment, such as checking the total amount of goods and packing, controlling the quality or consistency of goods, checking of all documentation, as for example test reports, packaging list, or verification of compliance with standards of the destination country like ASME, CE mark and import duties.
At the 80 percent completion point, random pieces are pulled. The goal is 8 and 2: for every ten products, two are allowed defects. If There are more, and the entire batch may be pulled.
ANSI / ASQC Z1.4 (ISO 2859-1) is the international standard for the inspection process. The Acceptable Quality Limit, AQL, is previously determined by agreement of importer and manufacturer and is a necessary part of the contractual agreement.
There are three levels of defects in a pre-shipment inspection with each defect escalating into the next.
Small - Defects of this level will not affect functionality like small miscolorations.
Major - The defects are problematic and must be resolved immediately. The manufacturer risks the entire batch in this case.
Critical - The batch has serious issues and is refused. Products involving chemicals such as cosmetics, often require professional laboratories to complete the inspection.
The inspection team covers the order and shipment.
Official source
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