THE HOME DEPOT Factory Quality Assessment€¦ · Are there procedures for notifying Customs or The Home Depot / their representatives and other law enforcement agencies in cases

Procedure Title: FQA-02 FQA Template Authorization: Brian Akins

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Control Number: HDQA.FQA.02 Revision ID: ORIGINAL 08/15/02

Confidential and Propr ietar y This is an unpublished work containing confidential and proprietary information

of The Home Depot U.S.A., Inc. All rights reserved.

DATE OF VISIT: Aug. 27, 2004 REPORT NO.: TW04A0003 / C-04104

VENDOR: iTouchless House wares & Products, Inc. DEPT: 29

SUPPLIER: Rich-Flow Enterpr ise Co., Ltd.

FACTORY NAME: Tai Ruey Electr ical Industr ies Co., Ltd.

No.4-6, His Men Lane, Tung Lan Rd., Shian Shin L i, Tung Shyh, Taichung Hsien, Taiwan, R.O.C.

FACTORY ADDRESS:

CONTACT: Mr. Ban Liu POSITION: General Manager

TELEPHONE: 886-4-25878921 FAX: 886-4-25870541

EMAIL: [email protected] SCOPE : To evaluate the manufacturer’s quality system, manufacturing process,

capacity, and capability of producing quality EZ Faucet GRADE:

Above Average Less than (6) MINOR Non-Conformities

Average (1) MAJOR or (6 – 11) MINOR Non-Conformities

Below Average (2 – 3) MAJOR or greater than (11) MINOR Non-Conformities

Unacceptable (4) or more MAJOR or (1) CRITICAL Non-Conformities

OVERALL GRADE: Average.

This factory was established in 1980. Factory got the ISO9001 cer tificate in 2003. Their quality control system and quality manual are satisfactory. The main product is PC board. Factory have two independent Dept. Wire and Electr ical depts. The product EZ faucet is in Electr ical Dept. Factory has 111 workers and the total area is 3729 sqm (1 building with 2 floors). The factory processes included production l ine, assembly, packing and shipment. The incor rect sample size was found on incoming inspection reports and the final inspection repor ts are incomplete, missing sample size and inspection plan and inspector ’s signature. Some finished products did not have identified labels. No secur ity system in this factory for security control. No secur ity guard, visiting records and identified badge for visitor ’s control.

CONCLUSION:

The actual factory address is different from the registration address on the factory l icense. Factory claimed that the location is farmland. So, it cannot use for the registration.

Service Provider Use: Service Provider Name and Address: Specialized Technology Resources (Taiwan) Ltd 27F, No. 289, Wen-Hwa Road, Sec. 2,Pan-Chiao City, Taipei Hisen, Taipei, Taiwan Auditor Name: Andy Tsai

THE HOME DEPOT Factory Quality Assessment 2455 PACES FERRY ROAD ATLANTA, GEORGIA 30339-4024


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M anufacturer Profile:

Product Range: Electrical PC board, EZ Faucet Parts Sources: Local and Foreign Supplies, Inception Date: 1980

Type of Ownership: (Choose One) Partnership Who is the Owner: Mr.Liu Human Resources: Factory floor space: 3729 M2 Management: 8 Persons Production: 83 Persons Quality: 12 Persons Engineering: 8 Persons

Product Description Max. Monthly Capacity (units)

1) EZ Faucet THD Product ? Yes Dept. 100,000 pcs. per month

2)

THD Product ? Yes / No Dept.

3)


4)


5)


6)


7)

THD Product ? Yes /No Dept.

8)



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Production Certificate: Issuing Body: Issue Date: Product: Issuing Body: Issue Date: Product: Issuing Body: Issue Date: Product: Issuing Body: Issue Date: Product:

Electrical & polyester and metal parts.

Components sub-contracted:

Plating

Processes sub-contracted:

Major Customer: Yamaha Country: Japan % of Production: 30% Major Customer: Atsumi Country: Japan % of Production: 15% Major Customer: Honey Well Country: U. S .A. % of Production: 5% Major Customer: Johnson Outdoor Country: U .S. A. % of Production: 5% Major Customer: Country: % of Production:

Capacities: Peak production months: June-December and January Operational capacity percentage for peak months: 60% Slow production months: February - May Operational capacity percentage for slow months: 40% Number of production lines (Peak): 3 Total units produced/day (Peak): 4000 pcs Number of production lines (Normal): 2 Total units produced/day (Normal): 3000 pcs

Production Lead Time: Number of days from receipt of purchase order to receipt of raw materials/sub-contracted components:

30 days

Number of days required for the manufacturing process: 30 days Number of days for finished product quality assurance process: 1 day Total lead time (start to finish): 60 days (purchase order to load container)


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Warehouse / Shipping: Warehouse: (yes) 1320 M2 Number of buildings: 1 / 2 floor Number of loading docks: 2 Number of containers loaded/day: FEU - Forty foot Equivalent Units TEU – Twenty foot Equivalent Units 4 FEU / 1 days Working Time: No. of Shifts: 3 shift(s)/day Hours per Shift: 9 hours Total Shifts: 3 Operating Hours: 8 hours Primary Holidays: 7 day(s) Maximum Overtime: 2 hours No. of days off / Week: 1.5 day(s) Max. Shift per employee /

Week: 1

What raw material has the longest lead-time and what is that lead-time? Electrical parts (semiconductor) – 60 days What sub-contracted component has the longest lead-time and what is that lead-time? Metal parts - 30 days Are raw materials and components kept in controlled, segregated locations to prevent quality deterioration?

Yes Does the factory have a policy in effect for quality and safety certification of raw materials prior to their release to production? Yes Are there efficient systematic controls on non-conforming raw materials and components? Yes How much back-up capacity does the factory have internally? 30% Are there controls to segregate products from other customer’s products? Yes What can The Home Depot do to help reduce the cost? A large qty per order What products would you prefer to make? Be specific. EZ Faucet, PC Board


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Training: Verbal Training: Yes Written Training: Yes Language: Chinese Certificate: No Issuing Body: No Issue Date: N/A Expiration Date: N/A

ISO9000 Certified: ISO 9001:2000 Yes Issue Date: May 2003 Registrar: SGS Accreditation of Registrar: SGS Issue Number: TW03/01544QA

Quality Assurance: Contact Person: Mr. Jen Inspection Frequency: Per shipment Name of Company requesting 2nd / 3rd Inspection: Atsumi Internal QA: Yes Third Party Inspection Company No Owned Subsidiary: No


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M anufacturer / Warehouse Secur ity Questionnaire: Yes / No

PHYSICAL SECURITY Are the buildings constructed of materials that resist unlawful entry and protect against outside intrusion?

Yes

Are there adequate locking devices for external and internal doors, windows, gates, and fences? Yes Is international cargo segregated and marked within the facilities by a safe, caged, or otherwise fenced-in area?

Yes

Additionally, is high value or dangerous goods cargo further marked and segregated? Yes Is adequate lighting provided inside and outside the facility including parking areas? Yes Is the parking area for private vehicles physically separate from the shipping, loading dock, and cargo areas?

No

Are there internal/external communications systems in place to contact internal security personnel or law enforcement?

Yes

ACCESS CONTROL Do all production and warehouse facilities have access control to the shipping, loading dock, and cargo areas? .

Yes

Is there a positive identification process for recording and tracking all employees, visitors, and vendors? No security guard in this factory. No record.

No

Are there procedures for challenging unauthorized/unidentified persons? No procedure in used. No PROCEDURAL SECURITY Do all production and warehouse facilities have procedures to protect against unmanifested material being introduced into the warehouse?

Yes

Is there a designated security officer to supervise the introduction/removal of cargo? Yes Are there procedures for properly marking, weighing, counting, and documenting cargo/cargo equipment against manifest documents?

Yes

Are there procedures for affixing, replacing, recording, tracking, and verifying seals on containers, trailers, and railcars?

Yes

Are there procedures for detecting and reporting shortages and overages? Yes Are there procedures for notifying Customs or The Home Depot / their representatives and other law enforcement agencies in cases where anomalies or illegal activities are detected or suspected by the company?

No

Is there proper storage of empty and full containers to prevent unauthorized access? Yes EDUCATION / TRAINING and PERSONNEL SECURITY Does the company conduct employment screening and interview prospective employees to include periodic background checks and application verification?

No

Is a security awareness program provided to employees including recognizing internal conspiracies, maintaining cargo integrity, and determining and addressing unauthorized access? No this program in factory

No

Do such awareness programs offer incentives for active employee participation in security controls?

No

Understanding that each business entity has unique circumstances, please elaborate on the applicability of any of the above questions. Additionally, attach any written procedures applicable to the above questions.


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�Organizational Char t of M anufacturer :

Electrical Dept.

Sales Dept.

Manager Director

Product development.

Factory Production Dept.

Management Q.C. Section Incoming Material section

Wire Dept

Production line

Account Dept

General Manage

Purchasing Section

Sales section

Assembly line Auto Insertion section

Q.A. Section

Insertion line Repairing line

Q.C. control system

Inspection QC group


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Product Safety

a Is the product required to comply with US regulations? (If not, give details.)

_________________ Yes_____________________________________ ____________

______________________________________________________________________

b Is the product covered by a specific US Safety standard? (If not, give details.)

__________________Yes_________________________________________________

______________________________________________________________________

c Are tests conducted to ensure compliance to the standard / legislation? (If not, give details.)

__________________ Yes________________________________________________

______________________________________________________________________

d Are these tests conducted by an independent body? (If not, give details.)

__________________ Yes________________________________________________

______________________________________________________________________

e Are precautions taken to ensure ongoing production continues to meet the requirements of

the relevant standard / legislation? (If not, give details.)

__________________ Yes________________________________________________

______________________________________________________________________

f Are the products safety listed? (If not, give details.)

__________________ Yes________________________________________________

______________________________________________________________________

Findings

The factory will send the samples to outside Lab. for safety test.

.

__

___________________________________________________________________________

__________________________________________________________________________

Consolidate all of the findings from each section to the table below.


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Findings

Section Fact Classification

Quality

System

Satisfactory

Purchasing

Control

The purchasing control system is used EPR system, this is a

computerized system.

Design

Control

No design dept. in this factory.

Incoming

Good &

Materials

Found the incorrect sample size on some inspection reports. The

correct sample size should be 125 pcs, but actual sample size on

the report is 126 pcs.

Minor


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Findings


MFG Process

Control

Satisfactory

MFG Process

Inspection Satisfactory

Final

Inspection

Final inspection plan is AQL II, 0.65 for major, 0.65 for minor.

The inspection plan, sample size and the name of QC were not

recorded on the inspection reports.

Major

Packing Satisfactory

Storage Some finished goods did not have identified labels.

Minor


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Findings


Calibration Satisfactory.

Corrective

Action &

Preventive

Action

Satisfactory

Training &

Internal

Auditor

Satisfactory


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Recommendations

1. Factory should improve the incoming and final inspection records. Inspection plan, sample size, inspector name and supervisor review signature should be included in the records.

2. All the final products should have identified label for identification.

3. Factory should set up the security system for security control.


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Photographs / Drawings: Figure 1: Factory Outlook Figure 2: Loading area at the factory

Figure: 3 Storage area for incoming materials Figure: 4 Storage area for final product

Figure: 5 Packing area Figure: 6 Factory address


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Figure7. Production line Figure 8. Rejected parts storage area

Figure: 9 Assembly line area Figure: 10 Testing area

Figure: 11 PC board repair area Figure: 12 Incoming inspection


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Figure: 13 In-line inspection Figure: 14 Final inspection

Figure: 15 In-Process inspection Figure: 16 Auto insertion machine

Figure: 17 Auto welding machine Figure: 18 Temperature control room


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Figure: 19 THD’s product EZ faucet Figure: 20 Semi-product storage


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1.Quality Systems

Yes No N/A

1.1 Is the quality system based on ISO 9000? X

1.2 Is there an independent Quality Department? X

1.3 Is there a management approved Quality Manual? X

1.4 Are personnel familiar with all relevant instructions and quality

procedures?

X

1.5 Is approval on quality of product received before being put into full-scale

production?

X

1.6 Do training records exist to show the skills and capabilities of all

employees?

X

Findings.

Satisfactory


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2. Purchasing Control

Yes No N/A

2.1 Is there a written procedure for the control of vendors or sub-

contractors?

X

2.2 Does a new vendor or sub-contractor receive formal approval from all

relevant departments before a purchasing order is placed?

X

2.3 Are goods purchased per written specifications? X

2.4 Are the specifications quoted on all relevant orders? X

Findings

Satisfactory


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3. Design Control

Yes No N/A

3.1 Are procedures for control and verification of design established and

maintained?

X

3.2 Are design inputs requirements identified, documented and reviewed? X

3.3 Is design output documented and expressed in terms of requirements,

calculations and analyses?

X

3.4 Are verification procedures established and documented to ensure that

design output meets design input requirements?

X

3.5 Are procedures established and maintained to control change of design? X

Findings

No design dept. in this factory.


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4. Incoming Goods and Materials

Yes No N/A

4.1 Are incoming goods inspected per drawings / specifications?

X

4.2 Are incoming goods supplied with the manufacturer’s warranty?

X

4.3 Are inspections carried out for incoming goods? What type of inspection? (against sampling plan, or fixed %) AQL Level II, 1.5% MA+MI. .

X

4.4 Are the results of inspections recorded? X 4.5 Is material quarantined before release to production?

X

4.6 Is inspected/ rejected material identified? X 4.7 Is any action taken on rejected raw material?

(Explain) Return to vendors

X

4.8 Is there an effective procedure established for the control and rotation of accepted goods and materials, such as First in - First out?

X

4.9 Is there a documented procedure established to define the preservation of material?

X

Findings

4.4 Found incorrect sample size on some inspection records. The incorrect sample size was 126 pcs

instead 125 pcs. According to the AQL level II, it should be 125 pcs.


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5. Manufacturing Process Control

Yes No N/A

5.1 Are all work instructions available at each workstation? X

5.2 Do instructions cover all-important characteristics? X

5.3 Are obsolete work instructions removed from the production area? X

5.4 Are visual reference standards / samples used? X

5.5 Are they under control and in good condition? X

5.6 Is a product identification method implemented? X

5.7 Does the method provide sufficient information for identification and traceability? (e.g. vendor/date code) (If yes, please specify) Order number

X

5.8 Is scrap efficiently cleared from the shop floor? X

5.9 Are samples retained from each batch or any production record kept for traceability?

X

5.10 Is there a separate area for rejected parts? X

5.11 Is this area suitable? X

5.12 Flow chart of the manufacturing process.

Incoming inspection– PC board production line- in-process inspection- assembly line –In-line inspection- PC board

repair section -testing line - Final Packing – Final inspection - Storage – Ship out

Findings

.


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6. Manufacturing Process Inspection

Yes No N/A

6.1 Is quality monitored on all relevant line operations? X

6.2 Are inspectors independent of production? X

6.3 Are existing methods or tests adequate to detect non-conformity and

ensure effective control?

X

6.4 Are defect classifications and acceptance tolerances clearly defined? X

6.5 Are inspection results recorded? X

6.6 Do the records provide effective traceability by identifying the process,

line, machine, or operation?

X

6.7 Is retention time of records specified? X

6.8 Are the inspection findings assessed to initiate meaningful corrective

actions?

X

6.9 Is there any evidence to show that corrective/ preventive actions have

been taken?

X

6.10 Has the effectiveness of corrective and preventive action been reviewed? X

Findings


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7. Final Inspection, Packing and Storage

Yes No N/A

7.1 Does the factory carry out statistical sampling methods to check

functionality and fitness for purpose?

X

7.2 Are the records of inspection kept? X

7.3 Are non-conformities clearly isolated? X

7.4 Are inspected finished goods identified by means such as label or

marking?

X

7.5 Is the storage area for finished goods adequate? X

7.6 Are there written instructions for packaging and shipping requirements? X

7.7 Is approval for shipping given by authorized personnel? X

Findings

7.2 Incomplete records. The report did not have inspection sample, standard and inspector name &

supervisor’s signature after review.

7.4 Some finished goods did not have identified labels after final inspection.


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8. Calibration

Yes No N/A

8.1 Is the appropriate precision inspection equipment available?

(If yes, please specify)

Gauge / Clipper

X

8.2 Are measuring and test equipment adequate? X

8.3 Are measuring and test equipment calibrated at the appropriate interval?

(If yes, how often?) ‘

The time interval depends on the equipment. The time range is from

half year to one year.

X

8.4 Are records kept for these checks? X

8.5 Are the records traceable to national/ international standards? X

Findings


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9. Corrective and Preventive Action

Yes No N/A

9.1 Is there any documented control system for handling customer

complaints?

X

9.2 Is the cause of non-conformity identified? X

9.3 Is the corrective action planned and implemented? X

9.4 Has the effectiveness of corrective and preventive action been reviewed? X

9.5 Are records kept? X

Finding


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10. Training and Internal Quality Audit

Yes No N/A

10.1 Are procedures established for identifying training needs? X

10.2 Are training records kept for all personnel directly involved with quality? X

10.3 Are personnel adequately trained to perform specific assigned tasks

affecting quality?

X

10.4 Are audits planned and documented? X

10.5 Are audits conducted to verify compliance and effectiveness of quality

system?

X

10.6 Are documented procedures established for governing audit activities? X

Findings


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11. Employee Interview Questionnaire

Yes No N/A

11.1 Was the employee interview process as defined in QAP-06 Employee

Interview Questionnaire.doc conducted?

X

11.2.A Were there any negative responses? X

11.2.B If answer in 11.2.A is yes, was your appropriate Service Management

contacted?

X

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THE HOME DEPOT Factory Quality Assessment€¦ · Are there procedures for notifying Customs or The Home Depot / their representatives and other law enforcement agencies in cases