GM FACTORY AUDIT REPORT

Transcription

1 FACTORY ASSESSMENT SERVICES REPORT NO. OTHER FTA REPORT DATE ASSESSMENT DATE INITIAL ASSESSMENT 20/10/ /10/2017 Yes Factory Name (N/A if withheld) Address of Assessed Factory (District-City-Province-Country) FACTORY DETAILS Dongguan Fenghe plastic & Silk flowers products factory.36,yinhai Rd,Lingxia,Shishuikou Village,Qiaotou Town, Dongguan City,Guangdong Province,China Dong Guan China FINAL RESULT Green - Meets Criteria Amber - Fails Criteria Red - Fails Criteria N/A - t Applicable FINAL SUMMARY Detail: Factory strengths/weaknesses; Recommendations for improvement/development FENGHE PLASTIC AND SILK FLOWER PRODUCTS FACTORY was located at.36,yinhai Road, Lingxia Village, Qiaotou Town, Dongguan City,Guangdong Province,China. Factory was found in Jan 6, 2009, had 8 years experience for the head ornaments. Factory had one 3-storey production building. Based on talking with management, factory had manufactured products and samples for KMART. Factory did not have ISO9001 certificate, but the factory built up the complete quality management system. Factory had 5 QC staffs. The main machines in factory were injection machines, fabric cutting machines, molding machines, sewing machines, assembly and packing lines. The main process in factory was injection, fabric cutting, molding, sewing, assembly and packing. Red Amber Green Gold CONCLUSION & RECOMMENDATIONS Issues of critical and major concerns were identified or suspected as listed on the report. Improvements need to be made within the specified timeframe on the report and a re-audit maybe required prior to further orders being placed. Issues of major concerns were identified or suspected as listed on the report. Improvements need to be made within the specified timeframe on the report and a re-audit maybe required to assess the corrective actions. Factory generally meets the quality requirement on major areas. Any Corrective Action Plans or improvements required actioning within the specified time frame. Subsequent audits will be arranged subject to business requirement. Factory generally meets the quality requirement on critical and major areas with only minor issues being identified. Any Corrective Action Plans or improvements required actioning within the specified time frame. Subsequent audits will be N/A FACTORY ASSESSED BY FACTORY AUDIT APPROVED BY FACTORY REPRESENTATIVE Name: SGS HK (FTA) Name: Name: Title: Factory Auditor Title: Title: Date: 16/10/2017 Date: Date: Page 1 of 20

2 CORRECTIVE ACTION PLAN Details of n-compliances to be addressed by Factory Pt. n-compliance Photo Proposed Corrective Action Advised. Completion 1 Purchased materials are subject to incoming QC inspections to meet agreed specification or requirement? The factory did not conduct gram weight test for incoming fabrics as inspection instruction s requirement. (Remark, the factory conducted fabric weight test for the rolls of fabrics) 2 Incoming goods stored in a clean, safe, dry area with appropriate lighting and temperature? 1 Based on onsite observation in plastic materials warehouse where located aside of injection workshop, there were some waterlogging on the ground. 3 Critical raw materials tested against legal, quality and safety requirement? The factory did not conduct gram weight test for incoming fabrics as inspection instruction s requirement. (Remark, the factory conducted fabric weight test for the rolls of fabrics) 4 IPQC checks carried out during production? IPQC patrol inspection records were provided till 10:30 am on the audit day. 5 Proper handling procedures for non-conforming products at production (e.g. suitably segregated with clear identification)? 2 Based on onsite observation, the nonconforming products were separated from conforming products, but no detailed identification with the non-conforming products. 6 A formal system in place for corrective action of nonconforming products? Factory established non-conforming handing procedure and provided the non-conforming materials/semi-products/finished goods handing reports for review. But the sampled report showed that factory did not provided the CAP report for rejected non-confirming materials. 7 n-conforming quality records are maintained? Factory established non-conforming handing procedure and provided the non-conforming materials/semi-products/finished goods handing reports for review. But the sampled report showed that factory did not provided the CAP report for rejected non-confirming materials, and few reports showed that factory did not provide the evidence to support the action plan implementation. 8 Procedures in place for controlling re-work or work-inprogress? Sampling checked the non-conforming handing reports, factory did not provide the work instruction for re-working process. 9 Equipment and machinery are properly installed and maintained in good condition? Based on onsite observation, no detailed maintain records was kept for the fabric inspection machine. 10 Factory is maintained in hygienic and good condition (e.g. factory building in good order, floor/window/walls in good repair)? 3 Based on onsite observation, the wall of production workshop was exfoliated, but it was not repaired timely. 16/01/ If re-worked is permitted, products are being re-inspected (and re-tested where needed)? Sampling checked the some non-conforming handing reports, factory did not provide reinspection records. (Remark, they only remarked Rework OK on the reports) 12 Re-worked records are maintained properly? Sampling checked the some non-conforming handing reports, factory did not provide detailed rework records for review. 13 Finished products storage area is clean, dry, with appropriate lighting and temperature? 4 Based on onsite observation in finished goods warehouse, there were some waterlogging on the ground. (Remark, it was raining on the audit day) 14 Testing equipment is maintained in good condition and calibrated regularly? 5 Based on onsite observation, one caliper which used by QC inspector was out of valid calibration period. (Remark, the valid calibration period was from Jan18, 2016 to Jan17, 2017) 15 Workers use Personal Protective Equipment (PPE) relevant to the area? 6 The fabric inspection inspector wore the Disposable mask. (t dust protecting mask) Page 2 of 20

3 Recommended Re-Assessment Date Insert Day/Month/Year: 16/10/2019 Page 3 of 20

4 Factory Name Address Contact Person Phone Address Products and Market Products Customers PONY Disney, Walmart TAIL,HEADBAND,HEA DWRAP,BROOCH Factory capacity Production Capacity Peak Season Floor Space (Sq M) Number of Shifts Factory quality processes FACTORY PROFILE Dongguan Fenghe plastic & Silk flowers products factory.36,yinhai Rd,Lingxia,Shishuikou Village,Qiaotou Town, Dongguan City,Guangdong Province,China Dong Guan China Benjamin Yeh What products does the factory supply to Kmart? List ports of shipment available to your factory. Market American European Australia/New Zealand Japan ABN / Business. Other pcs/month Year Established Does the factory have a Quality Manual? Number of Staff 800 Number of QA/QC 3 1 Does the factory have a Quality Manager to handle quality issues? Does the factory have an Organizational Chart? HEADBAND,HEADWRAP BROOCH. Hong Kong Has the factory been audited for social compliance? If yes, attach audit documentation Does the factory have any third party quality system certification? (e.g ISO, GMP, BRC, HACCP, SQF or others) If yes, please specify below Fax Detail % of volume for each market Yes (Pls attach) Yes Yes (Pls attach) Yes Yes Has this factory been audited and accredited to an International Standard or Retailer? If yes please provide audit documentation Yes Does the factory have access to Kmart Standards and policies from the Kmart e-trading website? Yes Does the factory have relevant Australian Standards? Does the factory have "in-house" testing facilities/laboratory? Is yes, list laboratory capabilities. Yes Yes List 3rd party testing laboratories used. Does the factory have research & development (R&D) facilities? If yes, list capabilites Yes Does the factory have metal contamination equipment and procedures? If yes, attach a brief outline. Yes Subcontractors Does the factory have an approved vendor / subcontractor list? How often are subcontractors audited? Yes (Pls attach) Page 4 of 20

5 A. MATERIAL CONTROL 1 Purchased materials are subject to incoming QC inspections to meet agreed specification or requirement? The factory did not conduct gram weight test for incoming fabrics as inspection instruction s requirement. (Remark, the factory conducted fabric weight test for the rolls of fabrics) 2 Proper handling procedures for nonconforming materials (e.g. suitably segregated with clear identification)? Based on onsite observation, the nonconforming materials were identified well and placed on specified area 3 Incoming goods stored in a clean, safe, dry area with appropriate lighting and temperature? Based on onsite observation in plastic materials warehouse where located aside of injection workshop, there were some waterlogging on the ground. 4 Critical raw materials tested against legal, quality and safety requirement? The factory did not conduct gram weight test for incoming fabrics as inspection instruction s requirement. (Remark, the factory conducted fabric weight test for the rolls of fabrics) Quality records are maintained for raw materials? An approved raw material supplier program in place? Raw materials are subject to appropriate preparation procedures before production (e.g. mechanical sorting, screening) when necessary? Based on the workes interview, IQC inspectors finished the inspection records and the records were reviewed by the QC supervisor. The records were maintained 12 months at least. requirement for this audit. requirement for this audit. B. PRODUCTION CONTROL 1 The latest specification or reference sample available at production? Page 5 of 20 Based on site observation, factory established the product's specification and provided to QC inspectors and

6 B. PRODUCTION CONTROL 1 production operators. And the references sample with QC inspection records were provided for reference. 2 3 IPQC checks carried out during production? Proper handling procedures for nonconforming products at production (e.g. suitably segregated with clear identification)? IPQC patrol inspection records were provided till 10:30 am on the audit day.(remark, the IPQC conducted patrol inspection once per hour) Based on onsite observation, the nonconforming products were separated from conforming products, but no detailed identification with the non-conforming products. 4 5 A formal system in place for corrective action of non-conforming products? n-conforming quality records are maintained? Factory established non-conforming handing procedure and provided the nonconforming materials/semiproducts/finished goods handing reports for review. But the sampled report showed that factory did not provided the CAP report for rejected non-confirming materials. Factory established non-conforming handing procedure and provided the nonconforming materials/semiproducts/finished goods handing reports for review. But the sampled report showed that factory did not provided the CAP report for rejected non-confirming materials, and few reports showed that factory did not provide the evidence to support the action plan implementation. 6 Production area is clean, safe and dry with appropriate lighting and temperature? Based on onsite observation, the production areas wer tidy and clean. And there was enough ligting on these areas. Page 6 of 20

7 B. PRODUCTION CONTROL Workers are suitably trained and are capable of doing their jobs accurately and safely? Smoking, drinking and eating at designated area only? Procedures in place for controlling rework or work-in-progress? Based on workers interview, they know well for quality requirement and showed good skills for operation. The smoking, drinking and eating were forbidden in the production and warehouse area. And non smoking sign was posted in production and warehouse area. negative evidence was observed during this audit. Sampling checked the non-conforming handing reports, factory did not provide the work instruction for reworking process. 10 Customer feedback is monitored, reviewed and followed up properly? The factory built up customer complain handing procedure (FH-MP-019), established annual complain list and kept the complain handing reports for review. The reports showed that the complains were closed within the due date. 11 Factory has traceability system of materials from source to finished products and vice versa? The factory established traceability procedure and conducted annual traceability test, the traceability test reports were kept for review Equipment and machinery are properly installed and maintained in good condition? Factory is maintained in hygienic and good condition (e.g. factory building in good order, floor/window/walls in good repair)? Factory has documented product recall procedures in place? Factory has an appropriate documented quality policy in place? Based on onsite observation, no detailed maintain records was kept for the fabric inspection machine. Based on onsite observation, the wall of production workshop was exfoliated, but it was not repaired timely. requirement for this audit. requirement for this audit Factory keeps samples from each batch of finished product? Major work instructions are available on production line? requirement for this audit. requirement for this audit. Page 7 of 20

8 C. INSPECTION & STORAGE 1 2 Inspection of finished products is carried out in accordance with specification, legal and safety requirement? Inspection records are maintained properly? Factory had 1 QA staff to conduct the finished products inspection. According MIL-STD-105E sample size, and AQL was 0/0.65/1.0 for Critical/Major/Minor. And factory conducted the drop test, pull test and sharp edge test,etc. The test records were maintained for review. Recent 12 months' quality record of final inspection and testing was maintained in this factory. 3 4 Inspection area is clean, safe and dry with appropriate lighting and temperature? Proper handling procedures for nonconforming products at inspection (e.g. suitably segregated with clear identification)? Based on site observation, factory had dedicated area for QA staff, it was clean, safe and dry with appropriate lighting and temperature. n-conforming product control procedure(fh-mp- 032) had been worked out for nonconforming product management. And from onsite observation, nonconforming finished goods were identified and segregated in designated quarantine area. 5 If re-worked is permitted, products are being re-inspected (and re-tested where needed)? Sampling checked the some nonconforming handing reports, factory did not provide reinspection records. (Remark, they only remarked Rework OK on the reports) 6 Re-worked records are maintained properly? Sampling checked the some nonconforming handing reports, factory did not provide detailed rework records for review. 7 Finished products storage area is clean, dry, with appropriate lighting and temperature? Page 8 of 20 Based on onsite observation in finished goods warehouse, there were some waterlogging on the ground. (Remark, it was raining on the audit

9 C. INSPECTION & STORAGE 7 8 Effective system in place for monitoring goods at storage area before leaving the factory? day) The factory established internal ERP system for finished goods monitoring. D. TESTING 1 Products are being tested in accordance with specification, legal and safety requirement (if applicable)? Based on the test records review, factory conducted the tension test and drop test as customer requirement, etc. The test records were maintained for review. 2 3 Testing facilities and equipment are suitable and adequate for the products being tested? Testing equipment is maintained in good condition and calibrated regularly? Factory had an inhouse test lab and one qualified test technician, based on the test records review, factory condcuted the tension test and drop test, etc. The test records were maintained for review. Based on onsite observation, one caliper which used by QC inspector was out of valid calibration period. (Remark, the valid calibration period was from Jan18, 2016 to Jan17, 2017) 4 Testing area is clean, safe and dry with appropriate lighting and temperature? The internal testing room was located in the second floor where was clean, safe and dry with sufficient lighting and proper environment control. 5 6 Test records are maintained properly? Person who carried out the test has been suitably trained and is capable of performing the test accurately and safely? Recent 12 months' quality record of internal testing was maintained in this factory. Dedicated technician Mr. Wang Jianrong was responsible to carry out internal testing in current. Per interview, he had sufficient knowledge and skill to perform testing. Page 9 of 20

10 E. SHARP TOOL CONTROL 1 All sharp tools are tethered to working stations and needles are installed in sewing machines? Factory built up the procedure for the sharp tools control (QP-SP-001). All the sharp tools were fixed in the worktable, and all of them were identified with unique numbers, the supervisor recorded the logs of the sharp tools counted out and in, the logs information was traced to the user. All the spare sharp tools were locked in the tool kit, and kept by the supervisor in office. The snap-off blades and break-away blades were forbidden to use in factory area. From onsite observation in the injection molding, and assembly lines the balde were used for plastic component burring. 2 Production area is free of break-away blade or glass object? Factory built up the procedure for the sharp tools control (QP-SP-001). All the sharp tools were fixed in the worktable, and all of them were identified with unique numbers, the supervisor recorded the logs of the sharp tools counted out and in, the logs information was traced to the user. All the spare sharp tools were locked in the tool kit, and kept by the supervisor in office. The snap-off blades and break-away blades were forbidden to use in factory area. 3 Broken needle records are kept properly? Based on onsite observation, no production for sewing process on the audit day. But the needle inventory records and borken needles records were kept for review. 4 All products pass through tunnel type metal detector before packing Page 10 of 20 Based on operator interview, all

11 E. SHARP TOOL CONTROL 4 (If applicable)? Metal detector calibration before, during and after use? Access to production area (e.g. packing area) after metal detection inspection is restricted with control of sharp tools / objects? A company policy is in place to control metal / sharp tools / broken needle that clearly state the following: All sharp tools shall be tethered to the workbench; Break away blades and glass objects shall not be used; Issuance and return record shall be maintained; and Missing sharp tools shall be followed. products with fabric materials (no metal parts) were passed through tunnel type metal detector before packing. Based on operator interview, the metal detector would be calibrated before, during and after using. Related records were kept available. Based on onsite observation, the sharp tools/objects were restricted in packing area (after metal detecting process). Factory built up the procedure for the sharp tools control. All the sharp tools were fixed in the worktable, and all of them were identified with unique numbers, the supervisor recorded the logs of the sharp tools counted out and in, the logs information was traced to the user. The logs were maintained at least 12 months. All the spare sharp tools were locked in the tool kit, and kept by the supervisor in office. The snap-off blades and break-away blades were forbidden to use in factory area. 8 Each sharp tool has a unique identification no. (except needles)? Yes. All the sharp tools were fixed in the worktable with the unique numbers, and the supervisor recorded the unique number and workers name, it was easy to trace to the user. 9 A record book is in place to register issuance and return of all sharp tools? The sharp tool issuing and retrieving log was registered on internal documented. And sharp tool issuing and retrieving mechanism was implemented in daily manner. 10 There is no overhead walkways/structures that sharp Page 11 of 20 overhead walkways/structure

12 E. SHARP TOOL CONTROL 10 objects can fall into the products from there? s was observed in this factory. F. ETHICAL 1 Fire escape exits are unblocked or unlocked? Health and safety control procedure was available in social document system. And fire safety facility and equipment was checked in monthly manner. Based on site observation, fire exit route and fire exit were free to be open and free of any obstruction. 2 Workers use Personal Protective Equipment (PPE) relevant to the area? The fabric inspection inspector wore the Disposable mask. (t dust protecting mask) 3 Hazardous chemicals are stored in an appropriate area with Material Safety Data Sheet available? Yes. Based on site observation, the factory used the chemicals of the cleanser, lubricating oil, the hazardous chemical was stored in separated chemical storage area with secondary containment. And MSDS was posted in the chemical storage area and chemical using area. 4 5 Machines all have adequate safety guards fitted? There is process in place of controlling Child Labour at factory? Safety guard structure was fitted in equipment, such as the handrail for the ladder, the blocker on injection molding machine. Factory built up the child labor protection procedure. The minimum age requirement in this factory was above 16 year old, which was in compliance with legal requirement in China. Factory would screen child labor by checking Page 12 of 20

13 F. ETHICAL 5 personal file, e.g., ID card, during recruiting process. And no young or children-like person was observed during line tour in this factory. Based on the personal file review, the youngest worker in factory was 20 years old, who was born on July 13, 1999, joined in factory on May 12, Workers are not subjected to physical abuse, the threat of physical abuse or intimidating verbal abuse? Factory built up the abuse control procedure. And from simple communication with workers, no such negative case/situation was reported by workers. 7 Factory does not use forced, bonded or involuntary labour? Factory built up the force labor control procedure. Any force labor, bonded labor or involuntary labor was forbidden in this factory. From warehouse turn in/out manifest review, no prison labor was detected. And from simple communication with workers, no such negative case/situation was reported by workers. workers' personal belonging, ID card or other personal property was held by this factory. FOOTNOTE The Factory Assessment is based upon basic criteria of international factory assessment and audit standards, as per ISO Critical elements of safety standards are included as a responsible retailer to the community. The provisions of the report recognise minimum and not maximum standards, and should not be used to prevent companies from exceeding these standards. Companies providing product to Kmart are expected to comply with national and other applicable laws to their country, and where the provisions of the law and this assessment address the same subject, to apply that provision which affords greater protection. The Factory Assessment evaluates basic Factory competencies and is not intended to replace or address social and ethical sourcing codes. Elements of social compliancy are addressed but are not exhaustive. The Factory Assessment process provides a sampling of information provided at the date of the assessment - suppliers/factories are relied upon to ensure information provided is true and accurate. Page 13 of 20

14 GM FACTORY AUDIT REPORT DIGITAL IMAGES 1. 1, NC-A3 2. 2, NC-B3 3. 3, NC-B , NC-C7 5. 5, NC-D3 6. 6, NC-F2 7. 7, Factory gate 8. 8, Factory name 9. 9, Factory name2 Page 14 of 20

15 GM FACTORY AUDIT REPORT DIGITAL IMAGES , Production building , The house no , Samples showroom , Customer sample , Customer sample , Customer sample , Packing materials warehouse , Fabric materials warehouse , Raw materials identification Page 15 of 20

16 DIGITAL IMAGES , Fabric cutting , Forming area , Defect samples , Injection workshop , Injection station , Patrol inspection record of injection process , Patrol inspection record , Production order , Semi-products inspection Page 16 of 20

17 28. 28, Sewing workshop ( production on the audit day) DIGITAL IMAGES , Metal detecting machine , 9-points Checking fo Metal detector , 9-points checking record for metal detector , Assembly , FAI of assembly process , FAI of packing process , Finished goods identification , Final inspection Page 17 of 20

18 DIGITAL IMAGES , Maintain record , Finished goods warehouse , Packing , Broken needles record , Sharp tools with number identification , n-conforming box , The Count in out record , Tension test , Emergency exit Page 18 of 20

19 DIGITAL IMAGES , Emergency plan , Emergency button of injection machine , NO SMOKING sign was posted , The test instruction , The fire extinguishers , Aisle of dormitory , Fire extinguishers and fire hydrant , Business license , Work instruction of cutting Page 19 of 20

20 55. 55, Toilet of dormitory DIGITAL IMAGES Page 20 of 20