Production capacity is one of the most common risks in overseas steel structure procurement. A supplier may have a large workshop, but the project still fails if equipment is overloaded, subcontracting is uncontrolled, or the production plan does not match the required delivery schedule.
1. Check monthly output evidence
Ask for recent monthly output records, not only a stated maximum capacity. The useful number is the realistic output under current workload, drawing complexity, coating requirements, and inspection level.
2. Review workshop flow
- Raw material receiving and storage area.
- Cutting, drilling, assembly, welding, straightening, blasting, painting, and packing flow.
- Space for finished components waiting for inspection or shipment.
- Separate handling routes for painted components.
3. Verify key equipment
| Equipment | What to confirm |
|---|---|
| CNC cutting and drilling | Capacity, maintenance condition, operator availability. |
| Assembly and welding lines | Fit for beam and column size required by the project. |
| Blasting and painting line | Surface preparation grade, paint curing space, weather protection. |
| Lifting equipment | Maximum component weight and handling safety. |
4. Understand current workload
A factory with good equipment can still be risky if it is already committed to other projects. Ask for a production schedule showing current orders, planned start date, drawing approval milestones, coating sequence, and shipping batches.
5. Identify subcontracted work
Subcontracting is not always a problem, but it must be controlled. Ask which work is subcontracted, how subcontractors are qualified, whether quality records are still traceable, and who is responsible for final inspection.
6. Check bottlenecks
Common bottlenecks include shop drawing approval, welding inspection, blasting and painting, drying time, rework, and packing space. A realistic production plan should show these constraints instead of only promising a shipment date.
Audit questions
- What was the actual output in the last three months?
- Which equipment limits this project schedule?
- How many welders and inspectors are available for this package?
- What work will be subcontracted?
- How are production delays reported to the buyer?