Supplier Certification Program

Transcription

1 Report No.: Date of Report: Page 1 of 23 Supplier Certification Program Initial Certification Costco Supplier Certification 100% - 85% no critical Audit Valid for facility for 1 year from the date of audit No further action required. 99% - 85% with critical Audit Valid for facility for 1 year from the date of audit. Corrective Action Plan (CAP) is required to be provided with 14 days of audit. No Re-Audit necessary. Less than 85% - 70% Audit Valid for 6 months from date of audit. Corrective Action Plan (CAP) is required to be provided within 14 days of audit. CAP must be completed prior to re audit within 6 months and will be verified at next audit. Less than 70% - 60% Audit Valid for 3 months from date of audit. Corrective Action Plan (CAP) is required to be provided within 14 days of audit. CAP must be completed prior to the re audit within 3 months. Less than 60% No Certification, Corrective Action Plan (CAP) is required to be provided within 14 days of audit. Re Audit must take place within 60 days. Questions marked CRITICAL (with**) denote Costco s most essential areas of concern regarding Quality and Safety. On FAILED audits (total score less than 85%), a re-audit is required within a certain period for, at minimum, the critical failures OR prior to any new production of Costco goods. Re-Audits will not be scheduled unless a CAP has been submitted to Costco and approved for all noted violations OR your company has communicated with Costco the reasons for noncompliance and that reasoning was deemed acceptable by Costco. Question Rating Guideline: All questions answered as N/A must be supported by an explanation in the remarks section Score 3 points for each asterisk (**) marked yes and 1 point each for all others marked yes Subtract the N/A points from the Maximum possible points available to get the Adjustable Maximum points under each section if any question marked N/A, and update the Summary of The Points That The factory Achieved table accordingly

2 Report No.: Date of Report: Page 2 of 23 Factory Information Factory Name: Interstoff Apparels Ltd. Address: Chandora, Kaliakoir, Gazipur, Bangladesh Telephone: ( ) Fax: ( ) rafiq@icl.bdrmg.com Agent/Vendor: KHQ Investment Factory producing Kirkland Signature items YES NO Type of Audit: Initial Audit If Re-Audit: Original Audit Date: NOVEMBER 23, 2011 Re-Audit Report #: DC Other (please specify): Original Score: 94.08% Audit Result Audit Valid for facility for 1 year from the date of audit. No further action required Audit Valid for facility for 1 year from the date of audit. Corrective Action Plan required. No Re-audit necessary. Audit Valid for facility 6 months from the date of audit. Corrective Action Plan required. CAP must be completed prior to re-audit within 6 months and will be verified at next audit. Audit Valid for 3 months from date of audit. Corrective Action Plan required. CAP must be completed prior to the re-audit within 3 months No Certification Re-audit within 60 days. Shipment may be held depending on audit results regardless if Critical defect is present or not Score: 100%-85% with no critical Score: 99%-85% with critical Score: Less than 85% - 70% Score: Less than 70% - 60% Score: Less than 60% Total Score % Date of Audit: November 28, 2012 Auditor: Md. Abdullah Al Mamun Talukder

3 Report No.: Date of Report: Page 3 of 23 Company Organization Met during Audit? (name of the person) Managing Director No Md. Shahinur Rahman Marketing Manager No S. M. Shafiqur Rahman Plant Manager No Mr. Amzad Hossain QC/ QA Supervisor / Manager Yes Mr. Anwar Hossain Factory Manager Yes Mr. Amzad Hossain Factory has been in operation since 2002 Staff Information # of Manufacturing Personnel: 3000 # of Quality Controllers: 387 # of Engineers: 15 Production Information Types of Product Produced: Knit Garments Costco Dept. No (2 digits) 31 Monthly Production Capacity: 150,000 pieces Required Lead Time: (time between placing an order to starting production) 90 days On average how many units of each type of item can be produced daily? Items Daily Production Quantity Kids pieces Mans pieces Ladies pieces Major Machinery: Manufacture Date: Quantity: Dyeing machine Not provided 09 Stenter macnine Not provided 02 Dryer Not provided 02 Compactor Not provided 02 Sue ding machine Not provided 02 Fabric inspection Not provided 03 Plain machine Not provided 517 Over lock machine Not provided 416 Flat lock machine Not provided 201 Button stitch machine Not provided 28 Hole stitch machine Not provided 28 Bar tack machine Not provided 02 PMD Not provided 10 Snap button machine Not provided 08 Belco attach machine Not provided 02 Back Tape Machine Not provided 19 Fusing machine Not provided 02 Cutting machine Not provided 14 Spreading machine Not provided 2 Band knife machine Not provided 02

4 Report No.: Date of Report: Page 4 of 23 Metal detector machine Not provided 03 Conveyor belt type Steam iron Not provided 73 Heat transfer machine Not provided 14 A. METAL DETECTION PROCEDURES (All Critical Questions) Please note: Costco requires some form of metal detection for all garments produced. 1.) Are metal detectors used? ** Type of metal detector: Conveyer belt type Quantity available for use: 01 Frequency of calibration: 6 times per day Who is responsible for calibration: Mr. Aminur Rahman (Quality officer) 2.) Are needle guards used? ** 3.) If needle guards are used, are they used consistently on all machines? ** 4.) Is there a needle replacement policy in effect? ** If so, explain this policy below in remarks: NOTE: All factories producing wearing apparel are required to have an operable metal detector along with an efficient policy/procedure in place for metal detection. Costco may approve the factory in-lieu of metal detectors. Example: a.) Use of needle guards b.) Needle replacement policy or c.) Other means of ensuring no metal is inadvertently left in garments. Rating: Metal Detection ( 3 ) out of 4 Critical items rated as "YES" = ( 09 ) Points *N/A answers will not be factored into the Maximum Points Available Item #: Total Score for Section A: ( 09 ) /12 A-3 A-4 (Remarks) It was noted that approximately 90% of the needle guard of the sewing machines are not in appropriate height. Factory has a broken needle policy which covered needle replacement procedure. According to the policy needle must be replaced on a one for one basis. New needle is issued only when all the parts of the broken needle found and registered, if not then the garments of that particular machine passed through metal detector to find out the broken parts of the needle as well as the area of that machine took under special consideration to find out all the broken parts by using magnet. If all needle fragments cannot be found the garment (s) must be destroyed.

5 Report No.: Date of Report: Page 5 of 23 B. FACILITIES 1. Does the plant layout appear acceptable for the type of Product being manufactured? ** 2. There is no evidence of damage due to flooding or inadequate drainage? 3. Does overall maintenance of the premises appear acceptable? working toilets hand washing stations first aid kits / stations fire extinguishers floor free from debris 4. Does the general housekeeping appear tidy and is it overseen by appointed management? 5. Are housekeeping schedules established and maintained? 6. Did you see a complete company quality manual? 7. Did you see documentation that all production machines are on a maintenance schedule and a maintenance team was in place? 8. Were all machines and equipment calibrated and checked to run efficiently and are maintenance records readily available? ** 9. Did you see that all machines/equipment/fixtures were suitable to produce the intended product? 10. Did you see evidence that the factory has a well organized maintenance team that could immediately respond to a machinery breakdown or emergency? 11. Did you confirm that telephones were available for employees in case of emergency? 12. Did you confirm electronic communication systems were in place? (PC s with word processing, spreadsheet and capabilities). 13. Are isles kept clean and free of debris? 14. Does factory provide a separate area for workers break time and eating, away from the production area? 15. There is no evidence of smoking, eating or drinking in the production area? 16. Are the lighting and ventilation conditions adequate?

6 Report No.: Date of Report: Page 6 of 23 Rating: Facilities - ( 2 ) out of 2 Critical items rated as "YES" = ( 6 ) Points (14) out of 14 Non-critical items rated as "YES" = ( 14 )Points *N/A answers will not be factored into the Maximum Points Available Total Score for Section B: (20) / 20 Item #: B-8 (remarks) Factory has updated calibration certificates for the measuring devices e.g, measuring tapes, Pull test machine, weighing balance Light boxes, physical testing equipments (crocking meter, washing machine). C. QUALITY CONTROL SYSTEM 1. Is factory operating a formal & written internal quality control procedure? ** 2. Are there adequate internal training programs provided for all quality control personnel involved? 3. Are there adequate traceable training records for factory personnel? 4. Are the factory s Q.C. personnel certified or assessed before they perform their job as outlined in the Q.C. procedures? 5. Has management defined its quality control objectives? If so, are those objectives clearly understood by personnel? 6. Does the factory use international, national, client s, or its own approved standards to perform in-house quality control? Explain in remarks. 7. Does the factory have a detailed written plan demonstrating how safety requirements on products are checked in-house? 8. Do detailed Factory Records reflect that products are properly checked in accordance with customer requirements & specifications prior to proceeding to the next production process? 9. Is there Q.C. supervision on all shifts? 10. Does quality controller fully understand factory s quality policy, quality consciousness and the importance of the quality assurance concept?

7 Report No.: Date of Report: Page 7 of Does Q.C. personnel have knowledge and expertise on products to be made? 12. Are all QA staff a separate team and different personnel from the trimming and inspection teams? 13. Is there an adequate number of QA staff to deal with the quality and quantity of spot-checking? Rating: Quality Control Systems ( 1 ) out of 1 Critical items rated as "YES" = (3) Points ( 9 ) out of 12 Non-critical items rated as "YES" = (9 ) Points *N/A answers will not be factored into the Maximum Points Available Total Score for Section C: ( 12 ) / 15 Item #: C-3 Factory does not have any traceable training records for factory personnel. C-4 QC personals are not certified before they perform their job as outlined in the QC procedures. C-7 It was noted that factory checking some safety requirement on products like pull test and snap button test without any detailed written plan. Factory use international standard like 4 point system for fabric inspection, roll to roll shade C-6 (remarks) check, AQL for accessories inspection, traffic light system followed in sewing inline and 100% end line visual inspection for sewing confirmation, AQL- 1.5 for pre final and AQL-2.5 for final inspection or according to their buyer standard. D. INCOMING INSPECTIONS 1. Does the factory verify that raw materials meet required specifications before use? ** 2. Are raw materials properly labeled, stored and traceable? 3. Are raw materials kept in controlled storerooms/areas to avoid theft, loss and any deterioration of quality? 4. If raw materials need inspection before use in production, are they properly inspected and are records maintained and traceable? 5. Is the inspection sampling schedule adequate and can the quality of the product be guaranteed with confidence? 6. Are inspection records maintained to prove products meet all requirements?

8 Report No.: Date of Report: Page 8 of Are there written inspection instructions available as guidelines to 3 rd party inspectors? 8. If testing equipment is needed during inspection, is there a sufficient quantity of equipment in order to do so in timely manner? 9. Does the factory have a system for lot control of raw materials that requires oldest date to be pulled first for use, First in/ First out? 10. Does the factory have a policy and procedure for inspecting incoming fabric? 11. Are incoming and outgoing raw materials registered to prevent intermingling? 12. Are raw materials kept in controlled storerooms to avoid theft, loss and deterioration of quality? 13. Does the factory possess a fabric inspection machine? If so, is there a policy/procedure for it s usage on all material? 14. Does the factory have its own light box? 15. Are faulty fabrics / raw materials well separated in order to avoid mixing? 16. Are different shade lots of fabric well separated in order to avoid mixing? Rating: Incoming Inspections ( 1 ) out of 1 Critical items rated as "YES" = ( 3 ) Points (15 ) out of 15 Non-critical items rated as "YES" = (15) Points *N/A answers will not be factored into the Maximum Points Available Total Score for Section D: ( 18 ) / 18 Item #: D-1 (remarks) Factory use international standard like 4 point system for fabric inspection, roll to roll shade check, AQL for accessories inspection

9 Report No.: Date of Report: Page 9 of 23 D-7 (Remarks) Factory preserves approved samples, Pre Production meeting minutes, Fabric construction details, Measurements as a reference for the auditors. E. IN PROCESS QUALITY CONTROL 1. Are all toolings fully tested and evaluated with all measurements and safety issues? 2. Are samples of pilot run, or approved client samples carefully reviewed by engineers and/or quality staff to see that all safety aspects are being met? 3. Is the factory able to perform pre-development testing? 4. Is there an In Process QC system to prepare for mass production? ** 5. Is there any documentation from either engineering, Q.C. department or top management to authorize mass production? 6. Are there line patrols by quality controllers or other means to monitor the compliance of the product to meet safety requirements? ** 7. Does factory use international or other approved standards to carry out in-process inspection? Are there records? 8. Do records reflect the action taken on the rejected lots? 9. Do records show rejected lots are well identified and segregated from accepted lots? 10. Is there a system or policy in place for permanently removing non-conforming manufactured items? 11. Are there clearly written criteria/instructions available for employees to follow? 12. Are there approved samples attached to all areas to give inspectors or workers a guideline? 13. Is the inspection and test equipment reliable to verify the conformance of the semi-finished final product?

10 Report No.: Date of Report: Page 10 of Are the inspection defects charted, analyzed, and monitored to improve the problems encountered? 15. Are QC supervisors and management easily identifiable? (e. g. QC supervisors and management wear certain colored vest/shirt uniforms, other than badges) 16. Are rejected lots well-identified and segregated from accepted? 17. Are shade batches separated in a lay while cutting? 18. Are cutting panels checked before they are put into the sewing floor? 19. Is there a tearing test for fused parts? 20. Are cutting panels properly placed into containers / boxes? 21. Are workers wearing protective gloves while operating cutting machines? Rating: In-Process Quality Control - ( 2 ) out of 2 Critical items rated as "YES" = ( 6) Points (13 ) out of 19 Non-critical items rated as "YES" = ( 13) Points *N/A answers will not be factored into the Maximum Points Available Total Score for Section E: ( 19 ) / 25 Item #: E-8, E-9 Factory does not preserve any defect rework reports. However, factory preserves inspection reports along with defect quantities. E-11 Working instructions are not given in pressing area. E-12 No reference sample found at ironing area. E-15 QC supervisors or personnel were not provided with identification uniform to be worn for easy identification. Factory has no physical segregation between accepted cut panels and rejected cut panels. E-16 Factory provided a reject box, but workers are observed to keep damage cut panel bundles in same table where cut panel inspection take place. F. FINAL INSPECTION 1. Do factory s quality controllers perform any internal final inspection on merchandise? ** 2. Are international, client s or other approved standards

11 Report No.: Date of Report: Page 11 of 23 used? For example: USA federal and state regulations. 3. Are there written internal inspection reports/logs and are they properly filed and traceable to review quality of products? 4. Are customer drawings/specifications readily available from quality control or posted on each line? ** 5. Does factory perform internal mechanical tests on finished goods to safeguard the product s quality? If so, note below how often. 6. Are there records to show factory has regularly performed such mechanical safety tests? 7. Are inspection and testing records maintained and readily available? 8. Does the factory have a process for quantity of sample size pulled for internal review and inspection? 9. Are there normal procedures that require acceptable inspection reports in order to authorize and shipment of products? 10. Does factory perform check on functionality of final production? 11. Does the factory have a process by which to review and compare finished product at different stages of production run for customers order? beginning, middle or at the end of production run? 12. Are measurement audit conducted during final inspection? 13. Are dummies (fit models) used to check the fit and hang aspects of the finished garments? 14. If some operations are sub-contracted out, will the factory send its QC to the sub-contractor s site for monitoring the quality and are the out-inspection records readily available? Rating: Final Inspection - ( 2 ) out of 2 Critical items rated as "YES" = ( 6 ) Points (11) out of 11 Non-critical items rated as "YES" = ( 11 ) Points Total Score for Section F: ( 17 ) / 17 *N/A answers will not be factored into the Maximum Points Available

12 Report No.: Date of Report: Page 12 of 23 F-5 (Note) F-14 (Remarks) Factory performs internal mechanical tests on finished goods. Besides this, factory has an internal lab where factory is doing physical and chemical tests. Factory has no operations which are subcontracted out, however they do embroidery which is outsourced from their sister concern named Southeast textile limited and Anam clothing limited. G. FINISHING AND PACKAGING 1. Is the packaging area clean and free of contaminants? 2. Are there any safeguards to prevent another company s products from being packaged into master cartons for another order? 3. Is there any control to prevent any defective or rejected products from being packed into master cartons? ** 4. Are semi-finished products well segregated from final finished products in the packing area? 5. Are finished approved products packed promptly for best manufacturing process in order to avoid dust and dirt? If not, are they properly stored and protected until packing? 6. Do workers wear gloves, hats/caps, shoe covers when necessary? 7. Is there an established and posted packing procedure for product according to the customers specific requirements? 8. Is the weight of packed master cartons randomly checked to avoid product shortages? If not, is there a procedure to avoid the possibility of shortages? 9. Are packed master cartons well stored in a covered area or a good shelter to keep from exposure to climate conditions which could compromise final appearance or structural integrity? 10. Is there equipment to use for stamping the date code, lot code, and case number? 11. Does the facility have a working barcode scanner to verify that the barcode on packaging is correct? 12. Does the facility have a policy for storing and stacking finished cartons prior to shipment? ** 13. Is a filter connected to the water pipe used for steam boiler in pressing?

13 Report No.: Date of Report: Page 13 of Have the steam boilers been examined periodically by outside Certified engineers and are those maintenance records readily available? 15. Are cleaning liquids and agents properly stored to avoid catching fire or being inhaled by workers? 16. Are scales used to accurately obtain the carton weight? If so, how often are those scales calibrated? Answer in remarks below. 17. If laundry or washing machines are used, are there any written procedures for wastage water treatment? Rating: Finishing and Packaging - ( 2 ) out of 2 Critical items rated as "YES" = (6 ) Points ( 13 ) out of 15 Non-critical items rated as "YES" = ( 13 ) Points Total Score for Section G: ( 19 ) / 21 *N/A answers will not be factored into the Maximum Points Available Item #: Factory has randomly checked weight of packed master cartons to avoid G-8 product shortages but no records maintained to track or cross check product shortage. G-10 There is no equipment to use for stamping the date code, lot code, and case number. G-16 (Note) Calibrated weight measuring scales used for obtaining carton weight. G-17 (Note) Factory does not have any washing plant. But factory have an effluent treatment plant for treatment of the waste water of dyeing and printing section. H. NON-CONFORMING MATERIALS 1. Is there a documented procedure for non-confirming materials? If so, are those procedures clearly understood and implemented by factory personnel and are records readily available?? ** 2. Are non-conforming materials properly segregated at all stages? 3. Are non-conforming materials easily identifiable? 4. Is scrap or non-conforming material easily distinguished from good product? 5. Is there a corrective action procedure for non-conforming materials? **

14 Report No.: Date of Report: Page 14 of Can the factory demonstrate how they handle non-conforming materials such as product that fails the mechanical tests? If so, does this demonstration coincide with its written procedure? 7. Can the factory supply solid proof to guarantee non-conforming materials/products are unquestionably segregated from conformed production and will not intermingle? 8. Does the factory have a process for notification to client when non-compliant product is identified as being introduced into the production run? 9. Is it found that there are no workers wearing garments identical to garments being produced? Rating: Non-Conforming Materials - ( 1 ) out of 2 Critical items rated as "YES" = ( 3 ) points ( 3 ) out of 7 Non-critical items rated as "YES" = (3) points *N/A answers will not be factored into the Maximum Points Available Total Score for Section H: ( 6 ) / 13 Item #: H-2 H-3, H-4 H-5 H-7 Alter/reject/ Ok garments are not segregated at all the production process. Factory has provided alter/reject box in sewing, finishing section but it is not functional. Worker are not aware about alter/reject box. Non conforming materials are segregated at all stage but no proper marking system found to identify the non-conforming product. In sewing section factory has provided separate alter/reject box but no identification found at those box. Factory does not track the re-work activity and non conformance products to ensure re work quality. Factory does not have a process for notification to client when non-compliant product is identified as being introduced into the production run. I. COMMUNICATION, DOCUMENTATION CONTROL AND WORK MOVEMENT 1. Does factory management and key staff understand English sufficiently to ensure communication with vendor/us Rep/Retailer? 2. Is there an adequate and formal system for receiving and applying line drawing, procedures, design change? 3. Are approved line drawings and specifications used properly, filed in chronological sequence and traceable? 4. Are line drawings, records and specifications that reflect an

15 Report No.: Date of Report: Page 15 of 23 adequate history of changes readily available? 5. In the case of authorized subcontracting, does factory provide adequate supervision and specifications to ensure compliance to the requirements of client s standards? ** 6. Does the factory conduct a 100% inspection on all subcontracted work? ** 7. Does factory have clear written instructions to its departments, delegating authority to stop production if the products do not meet the safety requirements of client s standards? 8. Is technical information clearly identified to QA personnel with adequate controls to insure process is replicated throughout the production run? 9. Does factory have a policy for keeping all client s technical project information confidential? 10. Does the factory have an efficient policy to notify the client and advise/discuss any failure on processing problems? 11. Does the factory retain copies of internal test reports? If yes, note type of test reports in remarks section. 12. Does the factory retain copies of external test reports? If yes, note type of test reports in remarks section. 13. Do records show the daily production output of each section? 14. Are pre-production samples or pilot lots evaluated in writing with comments attached? 15. Do records show that regular pre-production meetings are held before a new style is put into production? Rating: Communication, Documentation Control and Work Movement ( 0 ) out of 0 Critical items rated as "YES" = ( 0 ) Points (13) out of 13 Non-critical items rated as "YES" = (13 ) points *N/A answers will not be factored into the Maximum Points Available Total Score for Section I: (13 ) / 13 Item #: I-5, I-6 (Note) Factory has no operations which are subcontracted out, however they do embroidery from their sister concern Southeast textile ltd and Anam clothing limited.

16 Report No.: Date of Report: Page 16 of 23 I-12(remarks) Factory perform external test through 3 rd party testing company (Bureau Veritas / SGS etc) for color fastness to wash, color fastness to light, color fastness to crocking,dimensional stability,tensile strength, pilling resistance and others garments test as per their buyer requirement. J. HANDLING OF COMPLAINTS 1. Is there a procedure for the handling, investigating and resolving customer/product complaints? ** 2. Are customer complaint handled by factory management? 3. Are the complaints analyzed and root causes investigate? 4. Are corrective and preventive actions taken to eliminate the non-conformity? 5. Is the corrective and preventive plan communicated with the customer? 6. Are there traceable records for the handling of complaints? 7. Do records show that the corrective and preventive actions are properly conducted and monitored to client satisfaction? Rating: Handling of Complaints: ( 1 ) out of 1 Critical items rated as "YES" = ( 3 ) points *N/A answers will not be factored into the Maximum Points Available Total Score for Section J: ( 3 ) / 3 Item #: J-1 (Remarks) It was noted that, factory does not face any complain from their client yet. K. TRANS-SHIPMENT INFORMATION (All Critical Points) ** 1. Is the factory free from any evidence of trans-shipping? **

17 Report No.: Date of Report: Page 17 of Does all WIP (Work in Progress) present at the time of audit have appropriate paperwork? ** 3. Is the correct Country of Origin on all paperwork? ** 4. Is the factory free from any evidence of diverted shipments from Other countries? ** 5. There is no evidence of contraband production. ** 6. There is no evidence of fraudulent labels. ** 7. Can WIP (Work in Progress) be completed within this factory? ** 8. There is no evidence that the factory is subcontracting our garment Production. ** Rating: Trans-shipment Information ( 8 ) out of 8 Critical items rated as "YES" = ( 24 ) points *N/A answers will not be factored into the Maximum Points Available Total Score for Section K: (24 ) / 24 Item #: K-1 Its confirmed by last shipment documents Verification of Costco Canada, PO # ,Style No# Harg 1003/1004/1005/1007,Total cartons : 2000 ; that the factory free form trans-shipping. Factory direct shipped from Chittagong port (Port of loading) to buyer destination Canada. (Port of Discharge). Additional Questions - Information Only (No Points Achievable) 1. Is the facility monitored by security cameras, gated or guards? 2. Does the factory have an in-house testing facility? 3. List any Factory Accreditations. Yes No N/A 4. Does the factory possess any other accreditations? Yes No N/A 1. Factory has installed CCTV to monitor the key entrance and exits and security

18 Report No.: Date of Report: Page 18 of 23 guards are posted to ensure security of the premises. 2. Factory has in house testing facility to conduct test for product s safety and quality assurance. 3. Factory has ISO 9001:2008 and WRAP certification. Factory Name: Address: Initial Audit Interstoff Apparels Ltd Chandora, Kaliakoir, Gazipur, Bangladesh Re Audit

19 Report No.: Date of Report: Page 19 of 23 SUMMARY OF THE POINTS THAT THE FACTORY ACHIEVED Maximum Points Total Points SECTIONS Available Achieved A. Metal Detection Critical Points B. Facilities C. Quality Control System D. Incoming Inspections E. In-Process Quality Control F. Final Inspection G. Finishing and Packaging H. Non-Conforming Materials I. Communication, Document Control, Work Movement J. Handling of Complaints K. Trans-Shipment Information Critical Points Total Points Available 181 (B) Total Points Achieved 160 (A) Audit Result: Total Score in %=88.39 (A/B X100%) 28 Critical questions (with **) worth 3 points each (84 possible points). Total Score less than 85% constitutes an automatic failed audit and re-auditing is required within 60 days for, at minimum, the critical failures OR prior to any new production of Costco goods.

20 Report No.: Date of Report: Page 20 of 23 Digital Photo Records Factory Outlook Factory Name Dyeing section Dyeing finishing Chain mail gloves used in Cutting section Sewing section Ironing section Packing and folding section Fabric store

21 Report No.: Date of Report: Page 21 of 23 Accessories store Finished carton store Sample section Pattern making section with CAD facility Fabric relaxation area Cut panel numbering

22 Report No.: Date of Report: Page 22 of 23 Cut panel stored in separate boxes color wise. Printing section. Fusing section Cutting section Snap button attachment section Calibrated pull test machine Reference sample in sewing line End line inspection Final inspection Metal detector Reject box for metal contaminated garments Test card for calibration Metal detector

23 Report No.: Date of Report: Page 23 of 23 Weighing balance for Cartons Bar code scanner Broken needle register Button pull test machine Dummy used for fitting confirmation Light box Traffic light introduced in the sewing section. Fabric inspection machine Shade band Band knife cutting machine Rev: Separate June 27, boxes 2012 found for alter / reject / okay in sewing section. Workers are keeping damage cut panel bundles in same table where cut panel inspection taking place. Needle guard are not in appropriate height.