Sunday, January 27, 2013

Many ways to decrease your financial risks when you are purchasing a industrial Commodity

By Billie Hubach


In this article we will explain the definition of third party inspection (TPI), the importance of independence, and provide brief information on the other types of inspection organizations.

What are the third party inspection organizations and what services can they provide?

According to the quality standards provided in the ISO 17020, there are three types of inspection bodies. The third party inspection is the first and it is solely responsible for inspections services. Unlike the other accreditation types, TPIs cannot participate in other activities such as installation, supply, procurement, fabrication, and design.

This quality standard also requires all parties to have access to the third party inspection organizations and their services. This requirement is what makes the presence of TPI organizations so important to the functionality of businesses that are involved in purchasing, selling, etc.

This means that a third party inspection institute delivers their services to buyers, custom authorities, engineering companies, and sellers, along with every other company that has to follow safety or quality rules and policies.

Principles of confidentiality, impartiality, integrity, and independence have a substantial role within the operation of a TPI organization.

It is important for the TPI organization to administer their procedures in a manner which is nondiscriminatory.

On account of these conditions, when a contract is ordered by a seller or buyer, their commodity shall be inspected on an independent basis.

If a dispute arises among the buyer and seller, then neither party should expect the TPI organization to make a judgment based on their individual interests.

In some cases, buyers and sellers have made the argument that their position as the client should force the contracted inspector to act under their authority and interest.

But, due to the TPI standard that requires autonomy or independence, this notion is false. If adopted, this approach would clearly harm the integrity of the TPI organization. Consequently, no company would trust the inspection services given.

The engineering companies have a department that is called quality control department. This department provides quality control services to the purchase order that issued by procurement section. This type of organization is the second type of inspection organization by definition of ISO 17020 standard.

The third type of an inspection body is similar to the second type. This inspection body also is a part of a big company. In addition it provides the inspection services to other similar companies as well.

But actually it is not applicable. Most of inspection organizations are in first group. Actually the second and third types are not inspection organization; they are quality control organizations.

The most common question asked about third party inspection is: Why is it considered third party and who are the first and second parties involved?

Well, the seller, vendor, or manufacturer is considered the first party. Then the buyer, engineering company, or end user is designated as the second party.

The third party will provide their inspection services independent of either party.

This suggests that the first and second parties will likely do inspections of their own, but the third party is brought along to eliminate a conflict of interest.

It should be noted that any person employed by a seller, vendor, or engineering company cannot officially be considered an inspector. They are only quality control personnel.

The official title of inspector exclusively belongs to those who work for an accredited third party inspection organization, or owner inspectors that are hired by the owner directly.




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