Factory Evaluation Report

Factory Evaluation Report
Applicant:
Vendor:
AS Watson (Trading) Macao
Commercial Offshore Limited
---
Attn:
: Sean Law
Supplier:
Power Sky International Ltd.
Manufacturer:
Yingzhijian Technology Manufactory Limited.
Manufacturer
Representative(s):
List of products:
Date of Visit:
#1: Mr. Liu Weiping
(Position: Vice Factory Director),
#2: Mr. He Wen Hua
(Position: Quality Manager)
Pedometer with Fat Analyzer
Sep. 15, 2006
Report date:
Auditor:
Sep. 20, 2006
Report number:
OXY Au/Engle Yao
J022100
Scope of Audit:
To evaluate the manpower, quality system, facilities, equipment and social compliance of the manufacturer.
Summary:
The factory mainly produced pedometer, fat analyzer, keep health message etc. They have
not got ISO9000 certificate yet. During this assessment, they demonstrated their
capability to produce pedometer.
Conclusion:
Based on the finding from the assessment, it is considered that the manufacturer does
have the necessary manpower, quality system, facilities, and equipment.
However, the manufacturer cannot meet the Minimum Ethical Code of Conduct
requirement which set up by A.S. Watson (Trading) Macao Commercial Offshore
Limited. Moreover, the manufacturer should make improvement in those areas that listed
in recommendation of this report.
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Page 1 of 22
Factory Evaluation Report
1. Supply Chain Information
No
1.1
Question
Sales order flow is listed as below:
AS Watson (Trading) Macao Commercial Offshore Limited => Power Sky International Ltd. =>
Yingzhijian Technology Manufactory Limited
1.2
Supplier’s contacts details
Name:
Power Sky International Ltd.
Address:
Flat 909-912, 9/F, Kwong Sang Hong Centre, 151-153 Hoi Bun Road, Kwun
Tong, Kowloon, Hong Kong
Telephone:
(852) 36938000
Fax no.:
(852) 36938701
E-mail:
[email protected]
Contact person:
Ms. Maggie Wong
1.3 Manufacturer’s contacts details
Name:
Yingzhijian Technology Manufactory Limited
Address:
Bldg 2 & 3, Phase 3 of Fu’an Industrial City, Dayang Development District,
Fuyong Street, Bao’an, Shenzhen, China
Telephone:
(86) 755-33933580
Fax no.:
(86) 755-33933360
E-mail:
[email protected]
Contact person:
Mr. Liu Wei Ping
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Page 2 of 22
Factory Evaluation Report
2. General Information of the Manufacturer
No
2.1
2.2
2.3
2.4
2.5
2.6
Question
In Operation since
1997
Ownership
Private
Major Customers / Market
Li & Fung/Europe and America, AJD/America, Coca Cola/America
Products Range
Pedometer, fat analyzer, keep health massage
Product(s) supplied (or to be supplied) to the buyer
Pedometer with fat analyzer
Organization chart of the Manufacturer
Board Chairman
General Manager
Secretary of
General Manager
Finance
Management
Representative
Human Resource
Finance
Supervisor
Administration Centre
Finance Centre
Human Resource
Dept.
Factory Director
Marketing Dept.
Vice Factory
Director
R&D Manager
R& D Dept.
Production Manager
Production &
Technology Manager
Silica Gel Production
Dept.
Electronics Production&
Technology Group
Painting&Silk-Screen
Printing Dept.
Silica Gel Production&
Technology Group
Electronics
Production Dept.
Rubber Production
Dept.
Quality Manager
Quality Dept.
PMC Manager
PMC
Warehouse
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Page 3 of 22
Factory Evaluation Report
2. General Information of the Manufacturer
No
2.7
2.8
Question
Manufacturing Premises (m2/ ft2)
(a) Area assigned for the production: 8,000 m²
(b) Area assigned for the dormitory: 10,000 m²
Type of machine/ facilities:
Description
Small drill press machine
Air compress machine
Heat press molding machine
Small tin stove
2.9
Brand
------YONGSHENG
Number of Units
3
1
3
1
List of precise equipments used in quality control and/ or production:
Description
Pedometer testing fixture
Digital multi-meter
Caliper
LCR testing bridge
DC power source
Oscilloscope
Brand
--UNI-T
MITUTOYO
----LEADER
Number of Units
9
4
3
1
5
3
2.10 Workforce
Department
Management
Production
Quality
Design and development services
Others (Supporting, Logistic, Engineering etc.)
Total
Total staff
80
1,300
45
6
10
1,441
2.11 Working hour (shift, etc.)
- The daily working hour starts from 8:00 to 17:30 from Monday to Friday
- Lunch hours starts from 12:00 to 13:30
- Overtime starts from 18:30 to 20:30.
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Page 4 of 22
Factory Evaluation Report
2. General Information of the Manufacturer
No Question
2.12 Production Capacity
Production rate for manufacturing is 20,000 pieces per day.
2.13 Any production constraint?
No
2.14 How to control the production status to meet the delivery schedule?
Marketing department would inform the PMC department the shipping date and then the PMC
department would set up production plan to control the production status to meet the delivery
schedule.
2.15 Who take(s) this responsibility? (Name/Position)
PMC manager (Ms. Wen Jin Hua)
2.16 Export quota (if applicable):
N/A
2.17 Give details on which standard does the product comply with?
EMC directive 89/336/EEC
Testing standard: EN55022: 1998+A1:2000+A2:2003
EN61000-6-3:2001
EN61000-6-1:2001
2.18 Which parts are made in house?
PCB assembly and product assembly
2.19 Which parts are sub-contracted from outside manufacturer?
Electronic components, plastic part, packing material, PCB etc.
3. Quality System:
No
3.1
Question
Yes
No
N/A
Availability of Quality Manual and Quality Procedure?
5
The quality manual (Y&J-QM) and quality procedure (Y&J-CP-01 –
Y&J-CP-25) were available.
3.2 What is the company quality policy and quality objective respectively if
available?
Quality policy:
5
Focus on design and manufacture, heart customer service.
Quality objective:
Final products pass rate>=99%
Customer satisfaction >=98%
3.3 Availability of quality records? If yes, provide information for which
production stages.
5
Quality records were available. e.g. IQC reports, IPQC reports, QA
records, CAPA reports, etc.
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Page 5 of 22
Factory Evaluation Report
4. Product Review:
No
4.1
4.2
4.3
Question
Which department is responsible for reviewing the customer requirement
and/ or customer change?
Marketing department is responsible for reviewing the customer
requirement and changes.
Which department is responsible for converting the customer information
into usable document and distributing to use?
PMC department is responsible for converting the customer information
into usable document and distributing to use.
Any product specifications and/ or approved samples are available for
reference?
Product specifications and approved samples were available for IQC and
QA inspection and production reference. In IQC room, one PCB
reference sample (model# YKF17025-2) was found without proper
protection.
Yes
No
N/A
5
5. Manufacturing Process:
No
5.1
Question
Yes
No
N/A
Manufacturing process flowchart?
PCB assembly => Product assembly => Functional and cosmetic check
=> Packing => QA inspection => Finished goods warehouse
5.2. Does the factory always use pilot run before mass production?
5
Pilot run for pedometer was conducted before mass production and the
relevant reports were available.
5.3 Do the process parameters control under stated requirement, including
clear defect classification and acceptance tolerance?
Process parameters were under control according to work instruction.
5
(e.g. the step count accuracy would be controlled within a tolerance ± 5
steps every 100 steps. The function/control button should work as
intended and contact well, etc).
5.4 Are any obsolete documents being used inside production area? How they
control the document issuance, retrieval?
5
No obsolete documents were found inside production area. They control
the document issuance and usage according to the document control
procedure: Y&J-CP-01).
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Page 6 of 22
Factory Evaluation Report
5. Manufacturing Process:
No Question
5.5 Does the factory offer product coding method to identify each production
lot and for traceability purpose? Give details.
The factory claimed that date code or serial number would be applied on
product when client required.
5.6 Outside laboratory (Which tests to be conducted by outside laboratory? Is
the laboratory accredited by National / International Certification
Body? Are test reports properly kept?)
For model# Y-2005, the CE/EMC approval test was conducted by
Accurate Technology Co., Ltd., and the RoHS test was carried out by
STS (Skyte Testing Services).
5.7 In-house testing facility / laboratory (Which tests to be conducted inhouse? Describe the testing facility / capability of the factory)
They conducted the high temperature (60°C) resistance test for 30 minutes
by oven, conducted low temperature (-5°C) endurance test for 4 hours
with refrigerator and conducted free fall test at wood.
5.8 Are the tests adequate to detect non-conformance and to ensure product
safety? (Should be a CRITICAL failure if basic product safety test has not been conducted adequately.
e.g. high-pot for electrical item, metal detection for plush toy, etc.)
Accuracy check (±5 steps for 100 steps) and functional check (including
alarm, clock, fat analyzer check) were performed on assembly line.
5.9 Are faulty items properly identified and segregated?
The faulty items would be identified with red label and segregated at
designated red case.
5.10 Is scrap efficiently cleared from the shop floor?
Scrap was cleared from the shop floor.
5.11 Are those records from the manufacturing processes used in conducting
corrective action?
If necessary, corrective action would be conducted as per manufacturing
processes records (e.g. problem was found on assembly processes, mass
defective products generated in IPQC report, etc). The corrective action
report was available.
5.12 Are sharp tools used during manufacturing/packaging? Is there any
policy in case of breakage and lost of sharp tools? (This is concerning any sharp
tool with risk of goods contamination if breaking or lost. Should be a CRITICAL failure for toys, products
for child/baby, and cosmetics/health.)
5.13 Is there any risk of goods contamination by glass breakage? (This question will
be CRITICAL failure for cosmetics / health care products only)
5.14 What is the factory policy to protect the production and packaging area
from outside contamination? (This question will be CRITICAL failure for cosmetics / health
Yes
No
N/A
5
5
5
5
5
5
5
5
5
care products only)
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Page 7 of 22
Factory Evaluation Report
6. Calibration:
No
6.1
6.2
6.3
6.4
Question
Do they have a master list of the calibrated equipment?
Master list of calibrated equipment was not available.
Do they have annual schedule for the calibration?
The factory did not have annual schedule for calibration.
Check from the manufacturing site, any measuring devices are out of
calibration?
In QA room, all the timers (used for clock accuracy check) were found
without calibration.
In the IQC room, one digital caliper (S/N: QA-001) and one digital
multi-meter (model# VC603) were found out of calibration and the
calibration due date was Mar. 10, 2006 and Aug. 11, 2006
respectively.
From calibration records, do they follow international standard?
Review calibration records, they did follow international standard.
Yes
No
N/A
5
5
5
5
7. Training/ Complaint/ Internal Audit:
No
7.1
Question
Yes
No
N/A
Is training provided to the staff?
5
Relevant training was provided to staff.
7.2 Any training plan? List the training categories?
Annual training plan was available, the training categories including:
5
ISO basic knowledge training, internal audit training, communication
skill, recognition of quality concept and QC, reduce the cost, etc.
7.3 Verify the training record?
5
Reviewed the training record, the column about assessment result after
training was blank.
7.4 Availability of master list of the customer complaint?
Master list of customer complaint was available, in the last two quarters,
5
total six (6) complaint cases occurred and they were all closed before
this audit.
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Page 8 of 22
Factory Evaluation Report
7. Training/ Complaint/ Internal Audit:
No
7.5
7.6
Question
Check any corrective/preventive action carrying out for each complaint?
They carried out corrective/preventive action, as per the CAPA control
procedure: Y&J-CP-25, and corresponding CAPA was conducted for
each complaint and the efficiency was verified.
How many of these NC’s still open since last internal audit?
The factory informed us that they were applying ISO9000 certificate by
SGS, and upon now, no internal audit was conducted. According to the
internal audit plan, they would carry out internal audit on Sep. 20
subsequently.
Yes
No
N/A
5
5
8. Purchasing:
No
8.1
Question
Yes
No
N/A
Availability of Approved Supplier List?
5
Approved supplier list was available for purchasing purpose.
8.2 Do they have a rating system to measure the on-going performance of
the supplier?
5
The on-going performance of the supplier would be measured
periodically as per supplier assessment procedure (Doc: Y&J-CP-12).
8.3 For those suppliers offering poor performance, what action will be
performed? Give details?
All the suppliers were classified as A, B, C or D grade as per the
estimate points. When the supplier was graded as rank C, the CAPA
notice would be issued and only one improving chance would be
offered to the supplier. After passing the assessment on site, it would
be listed on the approved supplier list and purchasing continuously;
when the supplier was classed as rank D as per assessment rules, it
would be removed from approved list.
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Page 9 of 22
Factory Evaluation Report
9. Incoming Goods and Material:
No
9.1
9.2
9.3
9.4
9.5
9.6
Question
Availability of inspection criteria?
The inspection criteria (Doc: Y&J-WI-QA-02) was available and general
inspection level II, AQL: Critical: 0; Major: 0.65; Minor: 1.5 was
conducted. However, the defect classification was not defined on the
inspection criteria.
Check inspection records. Is the inspection completed with an inspection
record/report?
After reviewing the inspection report, the inspection was completed as
per inspection procedure.
Are all incoming goods inspected?
Except the bonding IC, all incoming goods would be inspected.
If No, which materials do not require inspection?
The bonding IC do not require inspection.
Do they offer the list for those items not requiring incoming inspection?
The list for those non-requiring inspection material was available.
Are incoming materials properly identified and segregated?
All incoming materials were properly identified with inventory card and
segregated at designed area.
Yes
No
N/A
5
5
5
5
5
5
10. Finished Goods:
No Question
Yes
No
N/A
10.1 Availability of inspection criteria? At which production stage?
The inspection criteria (Doc: Y&J-WI-QA-001) was available and
general inspection level II, AQL: Critical: 0; Major: 1.5; Minor: 2.5
5
was adopted. However, the defect classification was not defined on
inspection criteria. The factory claimed that the battery voltage check
was required during final inspection, but this check was not listed on
inspection criteria.
10.2 Check inspection records. Is the inspection completed with an inspection
record/report?
5
Reviewed the inspection records, the check point of battery voltage
check remained blank and without any data and comment.
10.3 How do they segregate non-conforming product?
The non-conforming product control procedure (Doc: Y&J-CP-20) was
5
available.
The faulty sample would be stuck with identification label and
segregated at designated area.
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Page 10 of 22
Factory Evaluation Report
11. Reliability Testing:
No Question
11.1 Any long-term reliability tests carried out on products? If not, why?
Long-term reliability test (10000 steps check) was carried out and the
records were available.
Yes
No
N/A
No
N/A
5
12. Housekeeping:
No Question
12.1 Any cleaning schedule for premises / equipments?
Cleaning schedule for premises and equipment was available and the
cleaning was conducted every day.
12.2 Any pest control?
Pest control was implemented and record was available.
12.3 Adequate area for third party inspection?
Two (2) inspection rooms were ready for third party inspection.
12.4 Is the production working area clean and tidy?
The production working area was clean and tidy.
Yes
5
5
5
5
13. Hygiene, health and safety:
No
13.1
Question
Yes
No
N/A
Does the factory provide necessary Personal Protective Equipment
(PPE) to the operators?
In the painting room, the factory only provided the operator with
5
common mask instead of special one and the provided mask could
only filtrate the dust but could not efficiently filtrate the hazardous
chemical substance.
13.2 Does the factory provide appropriate PPE’s to workers that are
5
suitable and relevant for the jobs involved?
Refer to 13.1
13.3 Does the factory provide sufficient training to the workers for safety
issues? (Such as usage of protective equipment / fire extinguishers,
5
handling of hazardous materials...etc.)
Training records were available.
13.4 Is there evidence of usage of Personal Protective Equipment (PPE)?
5
Gloves and masks were provided to the workers at painting room.
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Page 11 of 22
Factory Evaluation Report
13. Hygiene, health and safety:
No
13.5
13.6
13.7
13.8
13.9
13.10
13.11
13.12
13.13
Question
Does the factory offer adequate first aid boxes at the production areas?
(Are they unlocked, readily accessible and with sufficient unexpired
first aid items)
Sufficient first aid box was located in each workshop.
Does the factory record the case of industrial accidents? What is the
trend (Up or down)?
According to last year record, no industrial accident occurred.
Is the working or lighting conditions acceptable?
The working and lighting conditions were acceptable.
Does the factory provide adequate fire extinguishers in the production
area? (Readily accessible, unexpired, and of the appropriate type)
Fire extinguishers were adequate and suitable in workshop and
warehouse.
Are there adequate fire evacuation procedures?
No fire evacuation plan was found in whole factory building.
Are evaluation routes / exits clearly marked and the routes / exits are
unlocked / unblocked?
Evacuation routes and exits were clearly marked/unlocked.
Are safety lights adequately installed and in operational conditions?
Safety lights were installed adequately.
Are electrical appliance (socket, plug, switch, etc.) properly installed
and without exposed live part?
Electrical appliances were properly installed.
Is there any hand washing facility available? (This question will be CRITICAL
Yes
No
N/A
5
5
5
5
5
5
5
5
failure for cosmetics / health care products only)
5
Hand washing facility was adequate.
13.14 Are machines properly guarded (e.g. flywheel cover) or with
appropriate type of safety facility installed (e.g. 2 hands operated
5
press button)?
All machines were properly guarded.
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Page 12 of 22
Factory Evaluation Report
14. Environment:
No Question
Yes
No
N/A
14.1 Does the factory have a policy for material reuse and recycling? (List
out the policy or make a copy as attachment if available)
5
All the waste generated in whole production process was collected and
sold to the assigned agency.
14.2 For selecting the supplier(s) or assessing the supplier(s) performance,
does the factory take the environmental protection as a factor into
5
consideration?
The supplier assessment procedure included environment protection
aspect (e.g. RoHS requirement).
14.3 Does the factory emit industrial waste (e.g. solid, liquid, vapor dust,
5
etc?)
No industrial waste was emitted from factory.
14.4 Does the factory conduct the measure on the industrial waste? Or does
this waste comply with the local law?
5
The local environment department would conduct inspection
periodically.
14.5 Does the factory undertake any environmental impact assessment of its
5
site operations?
Environment impact assessment was conducted.
14.6 Does the factory store raw materials and chemicals in a way to minimize
5
environmental impact?
Chemical and hazardous materials were stored properly.
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Page 13 of 22
Factory Evaluation Report
15. Labor Policy:
No
15.1
15.2
15.3
Question
What is the minimum working age of the worker in the factory?
(For reference, the legal minimum working age in China is 16)
The minimum working age of the worker in the factory was 18 years
old.
Are there any child labor (below the age of 16) found in the production
premises? (Randomly select 5 young-looking workers and check the
personal records)
No child labor was found.
Are there young workers working in the factory? (If Yes, please answer
below questions 15.4 ~ 15.6)
No young workers were found in this factory.
Yes
No
N/A
5
5
15.4
Are the young workers (age 16-18) required to work at night (between
5
the hours of 10:00pm - 06:00am)?
Refer to 15.3
15.5 Are they registered with the labor Bureau and have health check paid
5
by the employer?
Refer to 15.3
15.6 Are they required to work on tasks that are potentially hazardous to
5
their health? Give details.
Refer to 15.3
15.7 Are forced / prison labor being employed?
5
No forced or prison labor were employed.
15.8 Are workers subjected to any physical abuse or disciplinary practices?
5
No these cases were found in this factory.
15.9 Is there any evidence of discrimination of any kind?
5
No evidence of discrimination was found.
15.10 Are the workers allowed to join unions or other type of worker
5
representative committees?
Workers were allowed to join unions.
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Page 14 of 22
Factory Evaluation Report
16. Remuneration
No Question
Yes
No
N/A
16.1 What is the legal minimum wage of the area where the factory is located?
The legal minimum wage of the area was RMB700/month.
16.2 Do wages of the workers meet the legal minimum standards? What is the
5
minimum wage in the factory?
Check the payroll last month, the minimum wage was RMB580/month.
16.3 Do workers have to place unreasonable deposits with the company to
5
work?
As per worker’s interview result, this case was not found in this factory.
16.4 Is the identity card held as security until worker leaves the company?
5
As per worker’s interview result, this case was not found in this factory.
16.5 Are the workers allowed to work overtime voluntarily?
5
The workers were allowed to work overtime voluntarily.
16.6 Is the rate of payment for overtime work according to the legal
requirement?
5
The rate of payment for overtime work was comply with legal
requirement.
16.7 Are workers’ total working hours within the maximum legal limits?
5
Total normal working hours were 40 hours weekly, total overtime
working hours per month was within 36 hours.
16.8 Are wages deducted for disciplinary purposes?
5
No wages were deducted for any purposes.
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Page 15 of 22
Factory Evaluation Report
17. Continuous Development:
List out all other areas found within the Ethical Audit and should be used to help develop the factory further,
though are not reason enough to prevent A.S. Watson (Trading) Macao Commercial Offshore Limited from
using the supplier/manufacturer.
Actual Findings:
--18. Other Comments:
Nil
19. Recommendation:
1.
Both the master list of the calibrated equipment and the annual schedule for calibration were not
available. The factory should set up the master list and annual schedule as to clearly know the
calibration status of equipment and well control the equipments.
2. In the QA room, all the timers (used for clock accuracy check) were found without calibration and in
IQC room, one digital caliper (S/N: QA-001) and one digital multi-meter (model# VC603) were
found out of calibration. All equipment/devices used for test should be calibrated periodically.
3. In the IQC and QA inspection criteria, no defect classification was defined. The defect classification
should be defined in inspection criteria so that the operator could determine the defect clearly and
judge the inspection result correctly.
4. The factory claimed that the battery voltage should be checked at final inspection, but this check point
was not listed on QA inspection criteria and the column for this check on QA report was blank. The
battery voltage check should be added in QA inspection criteria and the measured data should be
filled in QA report.
5. In IQC room, one PCB sample (model# YKF17025-2) was found without any protection. All samples
should be protected properly to avoid damage and deviation when used as reference sample.
6. Check the training records, the column about the assessment result after training was blank. The
assessment result for each training should be recorded as to know the efficiency of the training course
and the mastering level of each trainee.
7. Fire evacuation plan was not found on whole factory building. The evacuation plan should be clearly
posted in each floor so that employees know how to properly exit the building in case of an
emergency.
8. In painting room, the factory provided the operator with common mask instead of special one. The
provided mask could only filtrate the rust but could not filtrate the hazardous chemical substance. The
special mask that could filtrate the hazardous chemical substance should be provided to operators.
9. The minimum wage of local area was RMB700/month, but the minimum wage in this factory was
RMB580/month. The factory should increase the minimum wage to meet the local law.
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Page 16 of 22
Factory Evaluation Report
PHOTO ATTACHMENT
FACTORY BUILDING 1
FACTORY BUILDING 2
FACTORY BUILDING 3
CANTEEN
DORMITORY 1
DORMITORY 2
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Factory Evaluation Report
PHOTO ATTACHMENT
DRINKING WATER AREA
ASSEMBLY LINE 1
ASSEMBLY LINE 2
ANTI-STATIC BAND
FINISHED GOODS WAREHOUSE
FIRE EXTINGUISHER
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Page 18 of 22
Factory Evaluation Report
PHOTO ATTACHMENT
FIRST AID BOX 1
FIRST AID BOX 2
HAND WASHING FACILITY
INCOMING MATERIAL WAREHOUSE
IQC ROOM 1
IQC ROOM 2
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Page 19 of 22
Factory Evaluation Report
PHOTO ATTACHMENT
MATERIAL WITH ROHS LABEL
OVEN FOR HIGH TEMPERATURE TEST
PAINTING AND SILK-SCREEN PRINTING ROOM
PAINTING STATION (WORKER WITHOUT CHEMICAL
FILTER)
PEDOMETER TESTING FIXTURE
PRODUCTION PLAN
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Page 20 of 22
Factory Evaluation Report
PHOTO ATTACHMENT
RED CASE FOR FAULTY ITEM
REFRIGERATOR FOR LOW TEMPERATURE TEST
REPAIR STATION FOR ROHS PRODUCT
ROOM FOR HAZARDOUS CHEMICAL MATERIAL 1
ROOM FOR HAZARDOUS CHEMICAL MATERIAL 2
SAFETY LIGHT
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Page 21 of 22
Factory Evaluation Report
PHOTO ATTACHMENT
SAMPLE IN QA ROOM
TIME CARD MACHINE
TOOLS FOR ROHS PRODUCTS
WORK INSTRUCTION IN WORK STATION 1
WORK INSTRUCTION IN WORK STATION 2
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Page 22 of 22