6 Most Common Types of Factory Compliance Audits For Assets

Factory asset compliance audits are critical for ensuring that manufacturing facilities, whether they be general, food or clothing, maintain regulatory compliance, adhere to industry standards, and effectively management of their on-site assets. These compliance audits help identify any discrepancies or non-compliance and enable corrective actions to be taken promptly. Below are the six most common types of factory asset compliance audits that take place in manufacturers.

1. Asset Audits

Factory Asset inventory audits focus on verifying the accuracy and completeness of the factory’s asset records. These audits involve physically inspecting assets and cross-referencing them with databases. The goal is to ensure that all assets are properly accounted for and accurately recorded in the asset management system.

2. Asset Maintenance Audits

Asset maintenance audits assess the factory’s compliance with scheduled maintenance procedures and regulatory requirements. These factory compliance audits evaluate factors such as maintenance records, equipment service history, maintenance schedules, and adherence to manufacturer recommendations. The aim is to ensure that assets are properly maintained to ensure operational reliability and a longer lifespan.

3. Asset Calibration Audits

Asset calibration audits focus on verifying the accuracy and reliability and testing the manufacturing equipment used in the factory. These audits involve calibrating equipment against traceable standards, documenting calibration procedures and results, and ensuring compliance with regulatory requirements and industry standards. The aim is to ensure that measurement equipment is properly calibrated to maintain accuracy and reliability in production processes.

4. Asset Security Audits

Asset security audits assess the factory’s security measures for protecting valuable assets from theft, damage, or misuse. These factory security audits evaluate factors such as access controls, security protocols and employee training on asset security procedures. The goal is to identify any vulnerabilities or weaknesses in asset security measures and implement measures using a factory asset management system to enhance protection.

5. Asset Disposal Audits

Asset disposal audits focus on ensuring compliance with regulatory requirements and internal policies regarding the disposal of assets. These compliance audits assess factors such as disposal methods used, documentation of disposal transactions, compliance with environmental regulations, and proper handling of hazardous materials – with the aim being to ensure that disused assets are disposed of responsibly and in compliance with laws and regulations.

6. Asset Depreciation Audits

Asset depreciation audits examine the factory’s adherence to accounting standards and tax regulations regarding asset depreciation. These compliance audits assess factors such as depreciation methods used, useful life estimates, salvage values, and compliance with applicable financial reporting requirements. This check aims to ensure accurate accounting for asset depreciation.

Factory compliance audits for machinery and technology are essential for ensuring that manufacturing facilities maintain regulatory compliance, adhere to industry standards, and effectively manage their assets. By conducting regular audits across various asset compliance areas, factories can identify areas for improvement, mitigate risks, and ensure the integrity and reliability of their asset management practices.

How InVentry can help

InVentry’s manufacturing asset management systems can help you provide a record of the history of your assets. Contact our team today to discuss how our manufacturing sign-in system can help your business take the next step.