01Why risk-based
Inspection budgets are limited. Inspecting every order the same way either wastes money on simple items or under-controls critical ones. Many EPC contractors and owners therefore assign an inspection level to each purchase order.
02Factors to rate
- Consequence of failure: safety, environment, production loss, repair cost.
- Complexity: special processes, tight tolerances, integration.
- Supplier experience: history, capability audit result, certification.
- Schedule criticality: long lead, critical path.
03Typical inspection levels
| Level | Typical scope |
|---|---|
| 0 | No inspection, supplier certificate of conformity |
| 1 | Document review and final inspection or release |
| 2 | Pre-inspection meeting, key hold points, final inspection, FAT |
| 3 | All ITP hold points, regular surveillance, expediting |
| 4 | Resident inspection or continuous surveillance |
Level definitions vary by company; what matters is consistent application.
04Use a matrix
A simple severity by likelihood matrix helps rank orders and suppliers. Try the interactive matrix below.
Risk matrix: severity versus occurrence
A simplified 5 x 5 matrix used to rank supplier and process risks before an inspection plan is set. Select a cell.
Rows: occurrence. Columns: severity.
Higher scores call for stronger controls: hold points, 100% checks or process changes.
Published 2026-11-08 · QUALITAS TR technical team