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Why guangxi is bad for proper check and balance

Popularity 2Viewed 1805 times 2014-7-22 21:56 |Personal category:Life Story|System category:News| Check, and, Balance

Have a read of the following two case. What is there in common?

THE use of out-of-date meat at the Shanghai-based food processing company at the center of a public health scandal has been going on for years, a senior employee admitted yesterday.
http://shanghaidaily.com/metro/society/Food-chains-halt-sales-of-suspect-products/shdaily.shtml

The head of the civil affairs bureau in Hainan province has apologized for sending moldy food to typhoon victims in Wenchang city, Hainan province.
http://www.chinadaily.com.cn/china/2014-07/22/content_17898374.htm


Some business deals are done over the shake of a hand with minimal input from key professionals. . Agreement are authorised by the boss without any further checks by company staff. Decision making is top down. When there is a problem with quality, one word from the boss and a speedy Gonzales type decision is implemented without much consideration.

Where are the check and balances. In accounting, the person who authorised a purchase is never the same person who receive and check the goods. This balance is to limit illegal payment. In banking, there is a chinese wall between the division providing investment advice and the division providing the loan. This balance is to limit the issue of bad loan. In manufacturing the people producing the goods are not the same people as those who do the quality check. This is to prevent cheating.

Where is the quality check in the food production process from the farm to the supplier to the supermarket and fast food chain. When guangxi between supplier and buyers, supplier and quality inspector override the normal day to day quality checking process, the quality checking process and check and balance are just exercise in paperwork.

When a department in a company need to purchase an item, the purchasing department will source for the best supplier, the receiving department will check that the item receive meets the specification set by the buying department and the accounts only pay the invoice when everyone is happy. Now, that is check and balance. No amount of guangxi at a personal level should be able to override so many processes at the same time. That is process control.

What process control is there in the entire food distribution chain?

(Opinions of the writer in this blog don't represent those of China Daily.)


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