COSTCO FACTORY EVALUATION REPORT COSTCO WHOLESALE
CPS-I NUMBER: CLIENT DEPT.: EVALUATION DATE: ISSUE DATE: ADDENDUM DATE:
NON-FOODS QUALITY A SSURANCE
999 LAKE DRIVE ISSAQUAH, WASHINGTON 98027 ATTN: C.C.:
[email protected] BONNIE SMITH LAB OVERALL RATING *See Below Note
GOOD CORRECTIVE ACTION REQUIRED UNSATISFACTORY results. Final acceptance, or rejection is Note: Rating is based on testing lab results. per Costco only.
FACTORY EVALUATION RESULT
Evaluation Rating: Points Achieved: Points Possible: Critical Failures Found:
CV EVALUATION
* Note: Any critical failures automatically result in evaluation failure.*
Evaluation Re-Evaluation Other (please specify):
Type of Evaluation:
Any answer with “No” at Cashmere Evaluation (add cashmere evaluation addendum) part A and J.
Product Description: Factory Name (English): Factory Name (Chinese): Factory Address (English): Factory Address (Chinese): Factory Tel. Number: Vendor Name: Costco QA Project Person: Country of Origin: Prev Previo ious us Repo Report rt No: No: Addendum Report: Yes: Reason For Addendum: Date of Audit:
Factory Fax Number: Factory Email: Costco Item No.: Vendor Style no: Country of Destination: Char Charge ge Vend Vendor or::
Yes: Yes:
No: No:
No:
Auditor: The Costco QA person’s name stated on the TRF. 1 of 19
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Total Points
Total Points Achieved
Possible
A. Metal Detection Procedures B. Facilities & Working Environment C. Quality Control System D. Incoming Material Inspections E. In-Process Quality Control F. Final Inspection G. Finishing and Packaging H. Non-Conforming Materials I. Communication, Documentation Control and Work Improvement J. Handling of Complaints K. Trans-shipment Grand Total Possible: Grand Total Achieved:
Executive Summary:
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Recommendations For Improvement: To be filled by the auditor.
Factory Information COMPANY ORGANIZATION
NAME
Met during audit?
Owner Managing Director/General Manager Sales Manager/Marketing Manager Plant Manager QC/QA Manager Production Manager/Factory Manager
Yes Yes Yes Yes Yes Yes
No No No No No No
Factory has been in operation since STAFF:
Full time 1. 2. 3. 4. 5. 6. 7. 8.
Part time
Temporary
Contract
No. of workers Cutting Room Sewers Packing Clerical Mechanics Supervisors Engineering Staff
PRODUCTION INFORMATION:
Monthly Production Capacity
Required Lead Time
Main Products Produced: Woven: Knitted:
FACTORY SELF-OWN QUOTA OF LAST YEAR: Category Quantity Category Quantity Category
Quantity
Category
Quantity
OPERATIONS PERFORMED:
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Operations
In house
Operations
Outsourcing
Spinning (N/A) Weaving Knitting Cutting Sewing Linking Embroidery Fusing Trimming Washing
In house
Outsourcing
Buttoning Hand stitching Pressing Folding Packing Outsouring means the operation will be done by outsiders. Others: For example, if fabrics are purchased from outside, this is not outsouring, so spinning and weaving should be mentioned with “N/A”
PHYSICAL CONDITION:
1.
Masonry
Yes
No
9.
Canteen
Yes
No
2.
Steel
Yes
No
10.
Quarters
3.
Number of Floors
11.
On site Medical station
Yes Yes
No No
4.
Square Meter
12.
Yes
No
5. 6.
Electrical Light Source Air conditioned
7. 8.
Yes
No
13.
Yes
No
No No
14.
Fire Equipment
Yes Yes
15.
Yes Yes
No No
First Aid Equipment
Yes
No
16.
Yes
No
Type of ownership of factory (i.e. Taiwan owned, HK owned, Chinese owned, Local Chinese Township Enterprise, Etc.): If the factory is a Foreign-Investment Factory, Number of Home Country Staff at factory: Title & Responsibilities of home country staff:
Home Country staff means the staff are sent from the owner’s country At All Times % of the time and station at the factory country. For example, a Vietnam factory is owned by a Taiwanese and there are 5 Taiwanese staff stationed in this Vietnam factory.
Factory Background Information 1. Who are the owners / principles of this factory? What are their names / titles? 2. If factory is located in China, are the owners from: Taiwan Hong Kong Chinese government-owned Chinese “private” enterprise Other: 3. If factory is Chinese government owned, what is the name of the Chinese government unit? 4. If the factory is a Chinese-Chinese “private” enterprise, what are the work experience and backgrounds of the owners? 5. How many years has this factory been at this particular location? 6. What is the factory’s approximate annual FOB export dollars (US$) for the past 3 years? 7. How many years has this factory been manufacturing the same or similar item(s) as that being
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sold to Costco? 8. What are the names of the factory’s key customers in the U.S. / Canada / Europe? 9. What are the names of any OEM customers (i.e. brand name customers)? 10. What is the factory’s monthly capacity (# of 40’ containers) and at what percentage capacity is its current output? (i.e. Is it 90% full? Is it 75% full?) 11. Is the factory vertical or nearly vertical? Explain: 12. If factory is primarily an assembly / finishing / packaging operation, who are the other key subOEM stands for Original factories involved with this product? Equipment Manufacturing
Equipment
Total # of Sewing Machines: Total # of Serger (overlocking) Machines:
A vertical factory means that all processes (including raw material manufacturing: fabric weaving & finishing) are produced by its own. *It is nothing related to the vertical shape of the factory building.
Listing of all major machinery & Equipment at factory relevant to the manufacturing of the product. (Do not list sewing / serger machines) Brand Name/Type of Machinery
Model #
Manufacturin g Country
Purpose
# of Units
If Relevant Capacity
PERSONS TO WHOM QC/QA MANAGER REPORTS: Does QC or QA Manager have other job responsibilities in other areas? If yes, please list.
Yes
No
Other Job Responsibilities: Current Major Customers:
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A. METAL DETECTION PROCEDURES*
Metal detector is a machine or device that used to detect broken needles or metal parts remaining on the garments.
Costco requires some form of metal detection for all garments. 1. Are metal detectors used? Type of metal detector: Quantity available for use: Frequency of Calibration: Who Calibrates the Equipment: 2. Are needle guards used?
Yes
No
Needle guard is a wired device that attached close to the needle bar, it acts as a barrier to prevent the fingers from going into the needle sewing area. This is for the safety purpose.
Yes
No
3. If needle guards are used, are they used consistently on all machines?
Yes
No
4. Needle replacement policy in effect?
Yes
No
Explain policy:
Usually when there is any sewing needle broken, the worker is required to find and submit all parts of the broken needle, then the supervisor will verify it and offer a new needle to the worker.
Note: Factories making children’s garment are required to have a metal detector. Based on the production method for adult garments, if the factory does not have a metal detector but they do use needle guards, have a needle replacement policy of some other means of ensuring no metal is left in the garments. Costco may approve the factory despite not having a metal detector. * Denotes critical questions.
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B. FACILITIES & WORKING ENVIRONMENT 1. Are fax, email, and telephone utilities available? Yes
No
Yes
No
Yes
No
Yes
No
Yes
No
Yes
No
Yes
No
Yes
No
Yes
No
Yes
No
Yes
No
Yes
No
Yes
No
2. Are the working areas clean with no obstructions?
3. Is the lighting and ventilation condition adequate? 4. Is there a written machine maintenance schedule?
5. Does the factory possess a strong maintenance team to back up production? 6. Does each machine have a maintenance record hung on it?
7. Is there a time card recording machine?
8. Are the aisles, exits and stairways kept clear at all times?
9. Are workers wearing uniforms and need to change working shoes before entering into the production floor? 10. Is there at least one well-stocked first aid kept on every factory floor?
11. There are no workers smoking at the production area observed during evaluation. 12. There are no workers drinking or eating at individual workstations? 13. If factory caters lunch/ meal to the workers, is kitchen safe and clean?
Rating: Facilities: Score 1 Point for each marked yes.
Item #:
Total:
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Remarks:
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C. QUALITY CONTROL SYSTEM 1. Is factory operating a formal internal quality control procedure on its products?
Yes
No
2. Are all QA staff a separate team and different personnel from the trimming and inspection workers?
Yes
No
3. Are there adequate number of QA staff to deal with the quality and quantity of spot-checking?
Yes
No
4. Is the QA manager authorized to stop production when there is serious quality problems with production?
Yes
No
5. Are there adequate internal training programs provided for all quality control personnel involved?
Yes
No
6.
Are there adequate traceable training records?
Yes
No
7.
Are the factory Q.C. personnel certified before they perform their job as outlined in the Q.C. procedures?
Yes
No
8.
Does the factory use international, national, client or its own approved standards to perform in-house quality control? Which used:_____________________________________________
Yes
No
9.
Does factory have a detailed written plan demonstrating how safety requirements on products are checked in house?
Yes
No
10. Do detailed Q.C. reports reflect that the products are to be properly checked beforehand?
Yes
No
11. Does quality controller fully understand factory quality policy, quality consciousness, and the importance of the quality assurance concept?
Yes
No
12. Does Q.C. have adequate basic knowledge and expertise on products to be made and general manufacturing technology?
Yes
No
Rating: Quality Control System: Score 1 Point for each marked yes.
Item #:
Total:
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Remarks:
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D. INCOMING MATERIAL INSPECTION 1. Does factory perform incoming fabric inspection procedures?
Yes
No
2. Are incoming and outgoing raw materials registered to let stocks check?
Yes
No
3. Are raw materials properly labeled, stored, and traceable?
A proper fabric inspection machine is a machine Yes No light that equipped with front and rear rollers, tubes, speed adjuster and yardage counter.
4. Are raw materials kept in controlled storerooms to avoid theft, loss, and any deterioration of quality?
Yes
No
5. Is there a fabric inspection machine?
Yes
No
6. Does the factory have its own laboratory or light box?
Light box is a device that provides a standard light source for the purpose Noof to distinguish theYes color shading fabric.
7. Is the inspection-sampling schedule adequate and can the quality of the product be guaranteed with confidence?
Yes
No
8. Are adequate inspection records maintained to prove products are checked and meet all requirements?
Yes
No
9. Are there adequate written inspection instructions available as guidelines to inspectors?
Yes
No
10. If testing equipment is needed during inspection, is it sufficient and in good condition?
Yes
No
11.Is there a systematic control on the non-conforming raw materials and is it efficient?
Yes
No
12. Are faulty fabrics / raw materials well separated in order to avoid mixing?
Yes
No
13. Are different shade lots of fabrics or raw materials well separated in order to avoid mixing?
Yes
No
Rating: Incoming Inspection: Score 1 Point for each marked yes.
Item #:
Total:
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Remarks:
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E. IN-PROCESS QUALITY CONTROL 1. Are all toolings fully tested and evaluated with all measurements and safety issues?
Yes
No
2. Are samples of pilot run carefully be reviewed by engineers and Control. quality staff to see all safety aspects are being met?
Yes
No
3. Is IPQC sufficient to prepare for mass product?
Yes
No
4. Is there any documentation either from the engineering, QC department, or top management to authorize mass production?
Yes
No
5. Are there line patrols by quality controllers or other means to monitor the compliance of the product to meet quality and safety requirements?
Yes
No
6. Does factory use international or clients standards to carry out in process inspection? Are there records?
Yes
No
7. Do records reflect the action taken on the rejected lots?
Yes
No
8. Do records show rejected lots are well identified and segregated from accepted lots?
Yes
No
9. Are rejected lots well-identified and segregated from accepted lots?
Yes
No
10. Are there adequate, clearly written criteria/instructions available for inspectors to follow?
Yes
No
11. Are there adequate approved samples attached to all areas to give inspectors or workers a guideline?
Yes
No
12. Are the inspection and test equipment sufficiently reliable to verify the conformance of the semi-finished final product?
Yes
No
13. Is the testing equipment calibrated accurately and is it sufficient?
Yes
No
IPQC stands for In Process Quality
A small machine that clips the
14. Are the inspection defects charted, analyzed, and layers monitored of theto fused part and tear Yes improve the problems encountered? to breaking. It shows how much of the force applied on the tearin stren th. 15. Are shade batches separated in a lay while cutting?
No
Yes
No
16. Are cutting panels checked before they are put into the sewing floor?
Yes
No
17. Is there a tearing test for fused parts?
Yes
No
18. Are cutting panels properly placed into containers / boxes?
Yes
No
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19. Are workers wearing protective gloves while they are operating cutting machines?
Yes
No
The glove made of metal mesh that prevents the worker’s fingers Rating: In-Process Quality Control: Score 1 Point for each marked yes. Total: / 19 mistakenly touching the cutting blade of the List the various on-line QC Checks: straight knife m/c or the band knife m/c.
Item #:
Remarks:
F. FINAL INSPECTION 1. Does factory QC perform internal final inspections on finished products?
Yes
No
2. Are there written formal inspection reports and are they properly filed and traceable to review quality of products?
Yes
No
3. Are customer drawings/specifications readily available from quality control or engineering department on request?
Yes
No
4. Does factory perform internal mechanical tests during production to safeguard the product’s quality?
Yes
No
5. Are there records to show factory has ever performed such mechanical safety tests?
Yes
No
6. Are adequate inspection and testing records maintained?
Yes
No
7. Does the factory inspect 100% of the product?
Yes
No
8. Is the sampling size of products for final inspection adequate enough to show the confidence of safe products?
Yes
No
9. Are there normal procedures to require acceptable inspection reports to authorize and shipment of the products?
Yes
No
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10. Does factory perform 100% check on functionality? If not, is the current procedure sufficient?
Yes
12. Are dummy used to check the fitting and hanging aspects of finished garments?
Yes
No
13. 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 there any out-inspection records to proving that?
Yes
No
No
Dummy is a body-shaped mould that garment makers 11. Are measurement audit conducted during final inspection? Yes No use it for garment shape design / patterning purpose.
Rating: Final Inspection: Score 1 Point for each marked yes.
Item #:
Total:
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Remarks:
G. FINISHING AND PACKAGING 1. Are packed master cartons well stored in a covered area or a good shelter to keep from sunshine, to avoid being flooded or rained upon and protected from dirt & rodents?
Yes
No
2. Is there adequate safeguard to prevent another company’s products from being packaged into master cartons?
Yes
No
3. Is there adequate control to prevent any defective or rejected products from being packed into master cartons?
Yes
No
4. Are semi-finished products well segregated from final finished products in the packing area?
Yes
No
5. Are finished products packed into master cartons immediately when case product count has been done?
Yes
No
6. Do workers wear gloves, hats/caps when necessary?
Yes
No
7. Is the method of product count into master cartons accurate?
Yes
No
8. Is the current procedure acceptable to avoid the possibility of shortage of product?
Yes
No
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9. Is the packaging area tidy and free of contaminants?
Yes
No
10. Is there any equipment to use for stamping the date code, lot code, and case number?
Yes
No
11. Is filter connected to the water pipe used for steam boiler in pressing room?
Yes
No
12. Have the steam boilers been examined periodically by outsidecertified engineers and with certificates to prove it?
Yes
No
13. Is cleaning liquid and agents properly stored to avoid fire catching or inhaling by workers?
Yes
No
14. Is weighing machine used to take the actual weight of the cartons?
Yes
No
15. Is barcode scanner used to verify the correctness of barcode stickers on packages (if applicable)?
Yes
No
16. Are finished cartons put on pallets to avoid direct contact with floor?
Yes
No
17. If laundry or washing machines are used, are there any written procedures for wastage water treatment?
Yes
No
Rating: Packaging: Score 1 Point for each marked yes.
Item #:
Total :
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Remarks :
H. NON-CONFORMING MATERIALS 1. Is non-conforming material sufficiently identified?
Yes
No
2. Do records show that reworked parts/materials have been re-inspected to comply with standards?
Yes
No
3. Is scrap material handled satisfactorily?
Yes
No
4. If reclaimed materials are used, is there adequate identification and checking to specification?
Yes
No
5. Can the factory demonstrate how they handle the non-conforming
Yes
No
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materials such as products that fail the mechanical tests? 6. Can the factory supply solid proof to guarantee non-conforming materials or products are absolutely segregated from normal production and none will be mixed into the production? Or re-selling with brand labels.
Yes
No
7. Is non-conforming material properly segregated at all stages?
Yes
No
8. There are no signs that workers are wearing garments identical to garments being produced?
Yes
No
Rating: Non-Conforming Materials: Score 1 Point for each marked yes.
Item #:
Total:
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Remarks:
I. COMMUNICATION, DOCUMENTATION CONTROL AND WORK MOVEMENT 1. In the case of authorized subcontracting, does factory provide adequate supervision and specifications to ensure the compliance to the requirements of client standards?
Yes
No
2. Is there an adequate and formal system for receiving purchase orders, tooling, and equipment?
Yes
No
3. Are pre-production samples or pilot lots evaluated in writing and with comments attached on it?
Yes
No
4. Are approved drawings and specifications used properly, filed in chronological sequence, traceable and easily available?
Yes
No
5. Do factory management and key staff understands English sufficiently to ensure communication?
Yes
No
6. Does factory have clear instructions to its departments to delegate authority to stop production if the products do not meet requirements of client’s standards?
Yes
No
7. Is client technical information clearly identified with adequate controls throughout production process?
Yes
No
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8. Does the factory realize that all the technical information related to the client’s product is confidential and will not be exposed to other clients?
Yes
No
9. Does factory work closely and efficiently with client on the assigned project to advise and discuss any failure on processing problems?
Yes
No
10. Do records show that regular pre-production meetings would be held before a new style is firstly put into production?
Yes
No
11. Are the factory rules and the labor ordinance posted on the notice board so to let the workers know their rights and privileges?
Yes
No
12. Do records show the daily production output of each section?
Yes
No
Rating: Communication, Documentation Control and Work Movement: Score 1 Point for each marked yes.
Item #:
Total:
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Remarks:
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J. HANDLING OF COMPLAINTS 1. Are customer complaint handled by management?
Yes
No
2. Is factory operating a formal handling of complaint procedure?
Yes
No
3. Are the complaints analyzed and investigated the root causes?
Yes
No
4. Are corrective and preventive actions taken to eliminate the nonconformity?
Yes
No
5. Is the corrective and preventive plan communicated with the customer?
Yes
No
6. Is there any adequate traceable handling of complaint records?
Yes
No
7. Do records show that the corrective and preventive actions are properly conducted and monitored to be acceptable?
Yes
No
Rating: Handling of Complaints: Score 1 Point for each marked yes.
Item #:
Total:
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Remarks:
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K. TRANS-SHIPMENT INFORMATION (YES / NO)* 1.
There is no any evidence of trans-shipment.
Yes
No
2.
Does all WIP (work in progress) present at the time of the inspection have appropriate paperwork?
Yes
No
3.
Is the country of origin correct on all paperwork?
Yes
No
4.
There is no evidence of diverted
Yes
No
5. 6.
There is no evidence of contraband production. There is no evidence of fraudulent labels.
Yes
No
Yes
No
WIP means the semi-finished products shipments other countries. that still from in production process.
Yes Can WIP be completed within this factory ? Yes There is no evidence that the factory is subcontracting out garment production. *Denotes Critical Questions Rating: Trans-shipment Information: Score 1 Point for each marked Yes. Total:
7. 8.
Item #:
No No
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Remarks:
Conclusion
The factory is generally acceptable for producing products for Costco Wholesale.
Bureau Veritas Consumer Products Services (HK) Ltd.
__________________________ Lawrence Chan Inspections Division The above reflects our findings for the particular factory in concern on the date of our service only. This report does not certify, confirm or imply : a) compliance with any government, industry or association regulations or standards, unless stated otherwise; or, b) the quality of any specific products manufactured by the factory/sellers/suppliers; or, c) the shipment of any specific products. This report does not discharge or release the factory/sellers/suppliers from their commercial, legal or contractual obligations with buyers in respect of products manufactured by the factory/sellers/suppliers. Our services, including reports and certificates, are subject to the General Conditions of Service of Bureau Veritas which have been sent to your company. They can be resent upon written request. This report cannot be partially copied. Any reader other that the party for which this report has been specifically issued is hereby informed that the General Conditions of Service of Bureau Veritas contain liability limitation provisions.
Photos for reference:
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Metal detector machine (conveyor type)
Hand-held type metal detector
Needle guard (wire device to prevent the fingers from trapping in the needling area)
Needle guard (wire device to prevent the fingers from trapping in the needling area)
Attendance clock
Attendance clock
Traditional attendance clock (punch card type)
Electronic attendance clock (swift card type)
Non-conforming products segregated for repairing
Fabric inspection machine
Protective steel glove used by the worker
Light box (for color shade checking)
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Dummy
Shoes changing area
Fire extinguisher
First aid kits in workshop
Finished cartons put on pallets
Waste water treatment pond
Waste water treatment facility
Barcode scanner
Tension pull gauge
Emergency exit light
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