& Regulatory Compliance

System

HENZ

Hazardours Substances Free

— Principle and Operation

1990’s conflicting pressures for change:– Industry concerns over burden of chemicals legislation but

• Pressures from consumer groups• Pressures from green NGO’s• Pressures to replace substance of concern

Need to know what chemicals are in products and what risk is there to the user and the environment

The original plans for REACH in 1990 emphasised the need to identify risk and ensure risk management

RISK = HAZARD x EXPOSURE

SVHC in Articles: The Challenges Practicalities and Enforcement

The Challenges – identification of SVHC

Courtesy of Volkswagen

Information from suppliers— Increasingly difficult the longer the supply chain

Managing Communication

Obtaining and verifying data— Can suppliers be trusted?— Do they know the materials used, or have they been analysed?— Is there a chain of custody to demonstrate regulatory compliance?

COST

The Challenges – For Industry

Many consumers already asking about the presence of Candidate List Substances in the products they buy with a view to making a choice of “to buy or not to buy”

Citing “Public right to know” under Article 33 of REACHCompetitors reporting each otherConsumers

— Looking for compliant, caring retailers and suppliers— Impact on Business Reputation and Shareholder Value

Public Pressure— More Public scrutiny

INFLATIONARY PRICING PRESSURES

The Challenges – Consumer Reactions

Collection, Storage and Management of Compositional Information throughout Supply ChainUnique, extensive and verified databases

— >10,000 Materials linked to— >180,000 Substances— >15,000 Substances of Concern— >250 Chemical Regulations

Verification of Bill of Materials/ Bill of SubstancesCalculation of Bill of Substance from Bill of MaterialsAnalysis of Materials/ Components and Articles against Global Chemical RegulationsWeb based, secure and easy access to information to provide smooth communication through the

Supply Chain Internationally Supported and Managed by Eurofins - CIRS

Eurofins – CIRS The Practical, Cost Effective Supply Chain Solution to Ensure Chemical Compliance

HENZ Solution Outline

The key of Hazardous Substance Free and Chemical Compliance is product composition data collection, regulatory compliance assessment, documentary evidence preparation and supply chain communication. This requires processes for smooth communication flowing throughout the supply chain with support on understanding regulations, materials and chemical substances.

HSFRequiremen

t

BOM+BOS

Assessment Report

Processing Report

Self-Declaration

+PSDS

Proof

HSFGuide

+

+

+

DevelopingHSF & CRC Requirement

Start

Training staff and vendors

Information collection and management in supply chain

Regulatory compliance assessment

Implement of regulatory compliance measures

Preparation of regulatory compliance documents

Communication in supply chain

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Test for quality assurance

Vendor enter material data of products in HENZ system

HENZ system assess regulatory compliance of products

Find material ofvery high concern?

HENZ system generate substance data of products

Test SVHC for material of very high concern

YES

NO

Meet regulatorycompliance?

YES Implement of regulatory

compliance measures (follow regulatory requirement)

Submit data to DU

Accept data for prove regulatory compliance

Test for data verification

NO

OVER

Is the dataComplete ?

YES

NOReject the data

Supplementary data

Start

Existing test data / evidence? YE

SNO

Legend:

Vendor Action

DU Action

Lab Action

HENZ Action

The key of Hazardous Substance Free and Chemical Compliance is product composition data collection, regulatory compliance assessment, documentary evidence preparation and supply chain communication.

HENZ Procedure

HENZ is based on the B/S (Browser/Server) model. It is used to manage the product composition information, generate the regulatory compliance assessment and preparing regulatory compliance documents. The system is able to help users implement regulatory compliance with minimum costs.

Build and maintain the supply chain management;Collect and manage the product composition data;Analyze the hazardous substance free and regulatory compliance situation;Provide abundant proof of regulatory compliance.

HENZ system enables users to:

Introduction to HENZ System

Function Permission

Welcome and Notification, Show system notification and user profile. BPE

Supply Chain Information, Establishment and management of supply chain. BPEDownstream User, List of Downstream User and DetailsSupplier, List of Suppliers and DetailsIssued Invitation, Invitations that already sent to another user for establishing partnershipSend Invitation, Send invitation to another user for establishing partnership

Data Management, The operation of product composition data, like input, copy, query, edit, update, upload

BPE

Material Data Input, Input material dataProduct Data Input, Input product composition data, including product construction informationMaterial Data Management, The operations of material data, like input, copy, query, edit, update, uploadProduct Data Management, The operations of product data, like copy, query, edit, update, upload

Data Inspection, Inspect product composition data and other related data submitted by suppliers

BPE

Material Data Inspection, Inspect material dataProduct Data Inspection, Inspect product dataInspection Configuration, Set parameters of automatic inspection

Data Analysis and Processing, Analyze product composition data according to regulation requirements and processing incompliant item

PE

Material Data Analysis, Analyze material dataProduct Data Analysis, Analyze product dataBasic Material Analysis, Analyze basic material dataMaterial Data Processing, Process material dataProduct Data Processing, Processing product data

Regulations and Standards, Query regulations and standards ERegulation information, Query regulationRegulated Substances, Query regulated substanceStandards Information, Query standardsStandard Managed Substances, Query standard managed substances

Basic Data, Query basic data EBasic Substances Data, Query basic substances dataBasic Material Data, Query basic material dataTemplates and Forms, Query templates and forms

User Profile Management, Query and manage user profile BPEUser Profile, Query and update user profilePassword Change, Change user passwordCharges, Query charges

Help, User manual and other information BPEUser Manual, A guide to operate HENZ systemDocuments, Query related documentsFAQ, Frequently asked questionsFeedback

HENZ Functions

HENZ consists of a large database, a logical system and a user interface.

Supplier Down stream user Administrator

Basicdata

Productdata

Auxiliarydata

Attach-ment

Userinfo Logic

system

Interface for user

Interface for administration

 

Chinese/EnglishBasic/Plus/Extra permission……

 

250 regulations15,000 Hazardous S.180,000 Substances10,000 Basic materials……

 

Materials dataParts dataProducts dataStructure info……

Material typeRegion code…… 

DocumentsPictures……

Basic informationLogin record……

if (!empty($reguSubs))$conclusion= " Found REACH Restricted substances,……";…… 

HENZ Structure

HENZ manages both data at product, at material and substance level. All traced back through the structure of the Article.

  Product

Part

Material

S Substance

  Product

P1

P2

M1

S

S

S

S1

S2

S3

M2

S

S

S4

S5

S

S

S

S6

S7

S8

M3

Pn

S

S

S

S9

S10

S11

M4

S

S

S

S12

S13

Sn

Mn

HENZ Data

Category Class Sort Code

Metal

metal Metal M111

iron alloys

Highly alloyed steel M121Low alloyed steel M122

Highly alloyed cast iron M123Cast iron M124

Aluminium alloys Aluminum alloys M131Copper alloys Copper alloys M141

Magnesium alloys Magnesium alloys M151Tin alloys Tin alloys M161

Nickel alloys Nickel alloys M171Lead alloys Lead alloys M181Zinc alloys Zinc alloys M211

Titanium alloys Titanium alloys M191Other alloys Other alloys M201

Inorganic nonmetallic

materials

Ceramics Ceramics I111Glass Glass I121

Cement Cement I131Refractory material Refractory material I141

Abrasive I151Abrasive I152

Cast stone Cast stone I161Nonmetallic ore Nonmetallic ore I171Carbon materials Carbon materials I181

Silicon Silicon I191Other inorganic non

metallic materialsOther inorganic non metallic

materials I201

Organic polymer

RubberNatural rubber O111

Synthetic rubber O112

Fiber

Wood O121Paper O122

Mineral fiber(Asbestos) O123Other nature fiber(cotton

wool) O124

Synthetic fiber O125

Plastic

PE O131-1PP O132-1

ABS O133-1PVC O134-1POM O135-1

PS O136-1PA O137-1PET O138-1

PPE/PPO O139-1PC O140-1

PUR O141-1Other resin plastic O142-1

LeatherNatural leather O161

Synthetic leather O162Other Organic

polymer materialsUnknown material or

Mixture O171

Functional materials

Adhesivehotmelt glue O181

solid paste / filling O182Other adhesive O183

Coating

insulating lacquer （ epoxy ） O152

insulating lacquer （ refractor ） O153

Other coating O151

CompositeReinforced fibers C111Reinforced resin C112

Other compounds C113flame retardants flame retardants F111

Absorber Absorber F121humidity indicator humidity indicator F131

drying agent drying agent F141Lubricants Lubricants F151Refrigerant Refrigerant F171

Preservative Preservative F161enamel enamel F191

others mixture others mixture F201PCB PCB F211LED LED F221LCD LCD F231

Battery Battery F241Resistor Resistor F251

Capacitor Capacitor F261transistor transistor F291

transformer transformer F281other Electronic part other Electronic part F271

Consumable

Print writing consumables

(writing) ink Y111(print)ink Y112

(Print)Ribbon Y113carbon dust Y114

chalk Y115crayon Y116

kneaded eraser Y117Liquid glue Y118

correction fluid Y119carbon (paper) Y120stamp-pad ink Y121

red ink paste used for seals Y122

Detergent and Cosmetics

perfume Y131toilet soap Y132

camphor ball Y133air freshener Y134

Mosquitoes liquid Y135

Fire equipment consumables

carbon dioxide extinguishing agent Y151

Powder extinguishing agent Y152fire-extinguishing foam Y153

Food contact materials

Ceramic food contact materials

Ceramic food contact materials T111

Plastic food contact materials Plastic food contact materials T112

Regenerated cellulose film food contact

materials

Regenerated cellulose film food contact materials T113

HENZ material classification is set according to the basic requirements governed by the rules of industry and regulations; combined with the actual operation. This includes classification of basic materials such as metals, non-metallic inorganic materials, organic polymers, functional and consumable materials. Classification helps users quickly find the materials they are using in an Article, and identify in the substance list.

HENZ Materials Classification

Electrical and electronic equipments except refrigeration equipment(EEE) and ToyVehiclesPackaging and packaging wasteBatteries and accumulatorsTextiles,leather and wood productsFootwareToysPlastic Food contact materials(PFCM)Ceramic Food contact materials(CFCM)Regenerated cellulose film Food contact materials(FFCM)Rubber nippleEEE+PFCMEEE+CFCMEEE+FFCMTOY+PFCMTOY+CFCMTOY+FFCMOther products (non-food and medical equipment)TOY+EEERefrigeration equipmentRefrigeration equipment+PFCMAll

To assist in the assessment of products against the Chemical Reglations, HENZ employs set Product categories

Since updated regulations may involve the applicable product category adjustment, so the product classification of HENZ will be updated.

HENZ Products Category

Communication in the supply chain is a primary function of the HENZ system. Supply chain management.

Through supply chain management, our clients control their supply chain ensuring that only recognized vendors are in their supply chain. This function allows for easy search for information on suppliers and downstream users and provides a check on their response to information etc.

yesno

Start

Launch invitation to establish a partnership

Assessing the the invitation

Accept ？ reject

Over

Establish the relationship between supply chain

Supplier Down stream useruser

HENZ Supply Chain Management

Data input consists of either manual input of the Bill of Materials or import from vendors and clients systems.

Start

Over

Input from basic material?

Enter data of material

Enter data of substance

Save material-substance

 

Material generation

Enter data of product

Assemble parts and materials

Product generation

Save product data 

Input from BOM? Determine the BOM

confirm to enter

Modify the product

Determine the basic material

Confirm to enter

Modify the material

HENZ Data Enter

[1] Data submit refers to the operating that submit data to downstream user through HENZ;[2] Data update refers to the operating that modify the structure of the product;[3] Data modify refers to the operating that edit the data of the product like name, model, categoryand so on;[4] Data delete refers to the operating that delete the data of the product from database;[5] Data detail refers to the operating that list the information of the product in detail;[6] Data copy refers to the operating that copy the data of the product to generate a same product or material;[7] Documents generate refers to the operating that output compliance documents automatically.

Data copy6]

Start

Over

Determine query mode(product or material)

Determine query object

Data operate Data delete[4]

List of product or

material

Data submit[1]

Data updata[2]

Data modify[3]

Data detail[5]

Documents generate [7]

Object detail

HENZ Data Management

Users can select the corresponding material from the material database of HENZ system to acquire the material composition data.

Database of basic

materials

S

S

S

M1

S1

S2

S3

 

S

S

S

P1

P2

M1

S1

S2

S3

BOM

HENZ Material-Substances Data

HENZ system realizes the regulatory compliance assessment function through contrasting the product composition to the hazardous substances regulated by chemical regulations and further making clear the obligations related with chemical compliance.

 BOS

Start

Assessment Report

Regulatory database, update with regulations Synchronously by CIRS

Material database stored 50,000 basic material data, including the material name, standard number and the list of substances

……

Over

One by one controlBOM

HENZ Assessment Schmatic

Results of Chemical Regulatory assessments are saved in system database for automatic uploads into our clients own regulatory compliance systems, or for direct access through the web portal.

Maintained data is available for automatic reassessment as and when regulations change.

HENZ Assessment Procedure

Print Evaluation Report ？Assessment

Report

Confirm the Product to Be Assessed

Start

Confirm the Country or Area of Product Launch

Start Assessment Process

Assessment Process [1]

Over

Display Relevant

Regulations with

Explanation

DisplayAssessment

Result

Yes

No

Save Assessment Report

The assessment will list the substances which regulated by regulations in the materials of product, HENZ provides the function to process the substances to meet the requirements of the regulations.

HENZ Data Processing

Print report ?Print the report

Determine the product to process

Start

List the result of assessment

Process the result of assessment

Over

print save

Display of the result

Save the report

Result of assessment[E]

The supply chain communication function enables the upstream users to submit the product, material and substance data and relevant documents to the downstream users.Data submit can be completed by selecting the products/materials and the objects.

Start

Over

Determine the DU to transfer information

Search product or material

Enter the DU’s code

Submit

Accept the info ？

Yes 

No 

Return to supplier

Save the information 

HENZ Information Transfer

HENZ includes the data verification function, which helps downstream users analyze and verify the data submitted by the upstream users and make decisions to accept or reject the data based on the verification results.

Supplier Down stream user

Set rules of data integrity

BOM HENZ

Meet rules?

 

Verify

Submit to down stream user

Return to supplier for supplement of data

BOS+Assessment

Report

Enter product-materials dataReceive product-material-

substances data and compliance documents

HENZ Data Verification

The quality control of HENZ system can be realized by data integrity and data consistency. Data integrity demands the completeness of the essential data, which can be verified by the system automatically according to the integrity conditions set by the users. Dada consistency refers to how the product composition data match the real products, which need to be confirmed by necessary tests.

BOS

Start

Requirement of data integrity set by downstream

user

Generated by HENZ from BOM which is entered by vendor

Submitting data to downstream user

Over

Meet the requirements of data integrity?

Reject for data supplement

Verifying of

data accuracy

Yes

No

Checking of data integrity

HENZ Quality Assurance

The Security of HENZ includes the following levels:Operating system platform security. The operating system platform of HENZ is based on digital certificates-firewall model;Application system security. Measures are taken including…Application data security. Users can ensure the application data security via pluralized data backup, user register, logging in, recording, etc..

Internet

IDS

Application Server

IDS

Backup Server

HENZ Safety Strategy

1. Charge for each productNo. of materials(NMs) Charge(CNY)

~25 27526~50 275+ (NMs-25) × 8.0

51~100 475+ (NMs-50) × 7.5101~150 850+ (NMs-100) × 7.0151~200 1200+ (NMs-150) × 6.5201~250 1525+( NMs-200) × 6.0251~300 1825+ (NMs-250) × 5.5

301~ 2100+ (NMs-300) × 5.02. Discount with No. of products

No. of products(NPs) Discount （ %）~10 0

10~60 98%60~ Be discussed separately

Save the bill 

Enter product data

Start

Billing the cost of the product [1]

Generate the invoice regularly

Over

Save charge record 

Submit the invoice

Charging operation

HENZ Data Verification

Technical and regulatory support is always needed in the process of hazardous substance free and regulatory compliance. Helpline will provide the supporting services for you. Consultants

- Online customer service

Trainers- Training lectures

Engineers-Technical Support on BOM

Quality Manager- Record, Review,Feedback,

Assess and report

Helpline Manager- Helpline design, operate, monitoring and Improve

IT Support- Maintenance and Development

Data support- Data of materials and substances 

Regulations support- Interpretation of regulations

Vendors

Dow

nstream

User

COO- Project Monitoring and liaison with Kingfisher 

Organization

Technical & Regulatory HELPLINE

HELPLINE Facilities

Example — Login

Example — Homepage

Example— Materials management

Example — Material in detail

Example — Products Management

Example — Product in detail

Example — Assessment

Example — Assessment Report

Example — Assessment Report - Result

Example — Assessment Report – Conclusion & Suggestion

Example — Bill Information

Example — Statistic-1

Example — Statistic-2

ThanksHENZ will provide the best service for your chemicals policy!