FCCA Quality System Audit Outline

1.0Factory Facilities and Environment

1. Are lighting sufficient in the following key areas?

1.1. Inspection Areas

1.2. Production Areas

1.3. Packaging

1.4. Warehouse/Storage and Loading Areas

2. The facility maintains clean and organized production, finishing and packing areas.

3. Facility has separate inspection area for each department with inspection tables and proper ventilation.

4. Facility has documented and adequate pests control program which includes frequent inspections. (in-house or 3rd party)

5. Facility has documented moisture control program which includes frequent inspections. [Mandatory for factories producing products with solid wood & composite wood parts]

6. Are storage conditions appropriate and adequate for raw material, WIP, finished products to avoid deterioration of quality or safety? Especially for sensitive materials/components. For example, for IC storage. Does factory have good environmental control on temperature, humidity, etc.?

7. No broken windows or leaking roofs that may result to product contamination was observed during Audit.

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6. Machines, equipments and tools that need to be repaired are properly labeled or marked to avoid accidental use.

7. Factory has proper, clean and organized storage area of critical tooling (i.e. injection moulds) with labeled shelves.

8. Factory has proper documentation and updated inventory of machines, tools, spare parts and equipments.

9. Factory has maintenance team with suitable skill level and equipments to perform necessary repair and calibration on machines.

2.0Quality Management System

1. Does the factory have accredited Quality Management System in place with any international, national or customer quality standards association(e.g. ISO 9001, etc.)?

2. Does the factory have established Quality Management System (QMS) that is clearly documented in their Quality Manual which follows ISO9001 or other International Quality Standard that is appropriate to the products they manufacture?

3. Workers & Supervisors are familiar to these quality policies and objectives.

4. Factory has documented customer complaint system and documented recall program.

Critical

5. Factory QC team is independent from Production division.

6. Does the factory have some type of listing to identify specific defects [similar to Defect Classification List (DCL) or Critical-Major-Minor Defect List (CMM)] and is it being used in their inspections?

7. Production management and QC team discuss and work together in solving Quality issues/ concerns. (Documented)

8. Factory maintains effective traceability system that can determine immediate source from raw material to finished product.

9. Factory has systems and procedures in place to control the risk (Risk Assessment) of physical or chemical contamination that may damage/affect raw materials, process, equipment & tools, products and personnel as well.

Critical

10. Have the factory been accredited by any well recognized certifying body? E.g. FSC/PEFC? [Mandatory for factories producing products with wood & plant components to ASDA]

Critical

11. Does factory have a valid timber control system / process? [Mandatory for factories producing products with wood & plant components to ASDA]

Critical12. Does factory have control system in place to comply with the requirements of the LACEY ACT, that they have exercised due care to ensure that the wood/plant materials contained in products supplied to Wal-Mart are legally sourced from their country of origin [Mandatory requirement for factories producing products with wood materials to WMUS]

Critical

13. Does factory have control system in place to comply with the CARB requirements in compliance with the State of California's Airborne Toxic Control Measure (ATCM)? [Mandatory requirement for factories producing products containing any engineered wood products to WMUS]

14. Has the factory registered the Law Labels in GRS (Global Registration Services)? [Mandatory WMUS requirement for all Upholstered and Stuffed Articles]NOTE: Applicable only for existing factories. New factory is exempted (N/A) for this requirement during the Initial Pre-Qualification Audit.

3.0Incoming Materials Control

1. Factory has documented process & procedures (instructions, guidelines and records) for quality inspection and verification on all in-coming raw materials, accessories, components and/or sub-assemblies to ensure that it conforms to specifications, quality standards, safety & regulatory requirements.

2. Proper first in-first out (FIFO) system on materials are practiced.

3. Is the system can trace back to the raw material source or know where they are from?

4. Incoming and outgoing material quantities are monitored and documented.

Critical

5. Does the factory maintain records showing proof that all paints, coatings and non- paint components (hardware, labels, etc) are tested for Lead and Heavy Metals content and complied with the safety & regulatory requirements where the products are sold, as applicable?

Critical

6. Does the factory maintain records showing proof that all raw materials are tested for EU REACH Substance of Very High Concern (SVHC)-ASDA and/or Volatile Organic Compound (VOC)-US and complied with the safety & regulatory requirements where the products are sold, as applicable?

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4.0Process and Production Control

1. Does factory PD study and apply product safety features, evaluates patterns, moulds and samples during product design and development?

2. Factory has documented Quality Process & Procedures with Work Instructionsat each stage of operation.

3. Factory has documented Production Process & Procedures with WorkInstructions at each stage of operation.

5.0In-House Testing

1. Does factory perform any kind of in-house testing? Are test equipment/tools well maintained, organized and technicians are well trained. Test Standards used are traceable to any international or local standards? (Please refer to the FCCA attachment for the minimum In-House Testing requirements)

2. All gauges and test equipments have valid calibrations and are properly labeled

6.0Final Inspection

1. Does factory have procedure and working instruction for Final QC Inspection?

2. Factory QC conducts final inspection based on client-specific AQL sampling plan.

3. An approved sample or reference sample with packing list and shipping marks are available as reference for factory QC.

4. Approved sample or Reference samples shall be stored in good conditions to maintain product integrity.

5. Are there formal written final inspection reports? Are they properly filed and traceable for review on quality of products?

6. Where applicable, does factory final QC performs internal mechanical/functional tests to ensure the safety of product?

7. Where appropriate, are inspection and testing equipment used by the inspector in good condition and calibrated?

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Critical

8. Failed inspections are properly corrected prior to final inspection by customer.

9. Factory does not ship goods unless subjected to release procedures from customer.

7.0People Resources and Training

Critical

1. Factory conducts documents and maintains on-job training for all personnel or conducts pre-hire testing of skilled workers prior to hiring.

2. Is there a formal, documented Technical training/cross-training or certification program for PRODUCTION WORKERS on process, work station, equipment that they perform/use?

3. Is there a formal, documented Technical training or certification program for QC INSPECTORS on QC processes?

4. Is there a formal, documented Technical training or certification program forENGINEERS, MAINTENANCE OR EQUIPMENT TECHNICIANS?

5. Records of trainees and all regular personnel with corresponding performance records are kept and maintained.

6. Are training courses / materials suitable for trainees with different job scope?