Factory audit is conducted to ensure the supplier has a production plant which has enough capacity to produce the product and can manage to deliver the orders timely, the labor force is fully trained to design and construct a product, the raw material has good quality and the cost is according to market rates. This all is done in order to make sure that supplier is able to deliver the right order at right time, moreover, the factory audits also point out the lacking in a production department thus help the supplier to improve his work performance to survive in the market in a better way.
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