COSTCO

FACTORY
EVALUATION
REPORT
COSTCO WHOLESALE CPS-I NUMBER:
NON-FOODS QUALITY ASSURANCE CLIENT DEPT.:
999 LAKE DRIVE EVALUATION DATE:
ISSAQUAH, WASHINGTON 98027 ISSUE DATE:
ADDENDUM DATE:
ATTN: NONFOODSQA@COSTCO.COM
C.C.: BONNIE SMITH
LAB OVERALL RATING
*See Below Note
GOOD
CORRECTIVE ACTION REQUIRED
UNSATISFACTORY
Note: Rating is based on testing lab results. Final acceptance, or rejection is
per Costco only.
FACTORY EVALUATION RESULT

Evaluation Rating:
Points Achieved:
Points Possible:
CV EVALUATION Critical Failures Found:
* Note: Any critical failures automatically result in evaluation failure.*

Type of Evaluation: Evaluation

Re-Evaluation
Other (please specify): 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: Factory Fax Number:
Vendor Name: Factory Email:
Costco QA Project Person: Costco Item No.:
Vendor Style no:
Country of Origin: Country of Destination:
Previous Report No: Charge Vendor: Yes: No:
Addendum Report: Yes: No:
Reason For Addendum:
Date of Audit: Auditor:
The Costco QA
persons name stated
on the TRF.
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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 Yes No
Managing Director/General Manager Yes No
Sales Manager/Marketing Manager Yes No
Plant Manager Yes No
QC/QA Manager Yes No
Production Manager/Factory Manager Yes No

Factory has been in operation since

STAFF:
Full time Part time Temporary Contract
1. No. of workers
2. Cutting Room
3. Sewers
4. Packing
5. Clerical
6. Mechanics
7. Supervisors
8. 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 Outsourcing Operations In house Outsourcing

Spinning (N/A) Buttoning

Weaving Hand stitching
Knitting Pressing
Cutting Folding
Sewing Packing
Linking
Outsouring means the operation
Embroidery will be done by outsiders.
Fusing Others:
For example, if fabrics are
Trimming purchased from outside, this is not
Washing outsouring, so spinning and
weaving should be mentioned with
PHYSICAL CONDITION: N/A

1. Masonry Yes No 9. Canteen Yes No

2. Steel Yes No 10. Quarters Yes No
3. Number of Floors 11. On site Medical station Yes No
4. Square Meter 12. Yes No
5. Electrical Light Yes No 13. Yes No
Source
6. Air conditioned Yes No 14. Yes No
7. Fire Equipment Yes No 15. Yes No
8. 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.):
Home Country staff means the staff
If the factory is a Foreign-Investment Factory, At All Times are sent from the owners country
Number of Home Country Staff at factory: % of the time and station at the factory country.
For example, a Vietnam factory is
owned by a Taiwanese and there are
Title & Responsibilities of home country staff: 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 factorys 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 factorys 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 factorys 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 sub-
OEMfactories involved
stands for with this product?
Original
Equipment Manufacturing A vertical factory means that all
Equipment processes (including raw material
manufacturing: fabric weaving &
finishing) are produced by its own.
Total # of Sewing Machines: *It is nothing related to the vertical
Total # of Serger shape of the factory building.
(overlocking) Machines:

Listing of all major machinery & Equipment at factory relevant to the manufacturing of the
product. (Do not list sewing / serger machines)
Brand Name/Type Manufacturin # of If Relevant
of Machinery Model # g Country Purpose Units 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? Yes No
Type of metal detector:
Quantity available for use:
Needle guard is a wired device that attached close
Frequency of Calibration:
to the needle bar, it acts as a barrier to prevent the
Who Calibrates the Equipment: fingers from going into the needle sewing area.
This is for the safety purpose.
2. Are needle guards used? 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
Usually when there is any sewing needle broken, the
Explain policy: 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 childrens 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
2. Are the working areas clean with no obstructions?
Yes No

3. Is the lighting and ventilation condition adequate? Yes No

4. Is there a written machine maintenance schedule?

Yes No

5. Does the factory possess a strong maintenance team to back up

production? Yes No

6. Does each machine have a maintenance record hung on it?

Yes No

7. Is there a time card recording machine?

Yes No

8. Are the aisles, exits and stairways kept clear at all times?
Yes No

9. Are workers wearing uniforms and need to change working shoes

before entering into the production floor? Yes No

10. Is there at least one well-stocked first aid kept on every factory floor?
Yes No

11. There are no workers smoking at the production area observed

during evaluation. Yes No

12. There are no workers drinking or eating at individual workstations?

Yes No
13. If factory caters lunch/ meal to the workers, is kitchen safe and
clean? Yes No

Rating: Facilities: Score 1 Point for each marked yes. Total: / 13

Item #: Remarks:

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C. QUALITY CONTROL SYSTEM

1. Is factory operating a formal internal quality control procedure on its Yes No
products?

2. Are all QA staff a separate team and different personnel from the Yes No
trimming and inspection workers?

3. Are there adequate number of QA staff to deal with the quality and Yes No
quantity of spot-checking?

4. Is the QA manager authorized to stop production when there is Yes No

serious quality problems with production?

5. Are there adequate internal training programs provided for all quality Yes No
control personnel involved?

6. Are there adequate traceable training records? Yes No

7. Are the factory Q.C. personnel certified before they perform their job Yes No
as outlined in the Q.C. procedures?

8. Does the factory use international, national, client or its own Yes No
approved standards to perform in-house quality control?
Which used:_____________________________________________

9. Does factory have a detailed written plan demonstrating how safety Yes No
requirements on products are checked in house?

10. Do detailed Q.C. reports reflect that the products are to be properly Yes No
checked beforehand?

11. Does quality controller fully understand factory quality policy, Yes No
quality consciousness, and the importance of the quality assurance
concept?

12. Does Q.C. have adequate basic knowledge and expertise on products Yes No
to be made and general manufacturing technology?

Rating: Quality Control System: Score 1 Point for each marked yes. Total: / 12

Item #: 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

A proper fabric inspection machine is a machine

3. Are raw materials properly labeled, stored, and traceable? Yes
that equipped with front No light
and rear rollers,
tubes, speed adjuster and yardage counter.
4. Are raw materials kept in controlled storerooms to avoid theft, loss, and Yes No
any deterioration of quality?

5. Is there a fabric inspection machine? Yes No

Light box is a device that provides a
standard light source for the purpose
6. Does the factory have its own laboratory or light box? to distinguish theYes Noof
color shading
fabric.

7. Is the inspection-sampling schedule adequate and can the quality of the Yes No
product be guaranteed with confidence?

8. Are adequate inspection records maintained to prove products are checked Yes No
and meet all requirements?

9. Are there adequate written inspection instructions available as guidelines to Yes No

inspectors?

10. If testing equipment is needed during inspection, is it sufficient and in Yes No

good condition?

11.Is there a systematic control on the non-conforming raw materials and is it Yes No
efficient?

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 Yes No
to avoid mixing?

Rating: Incoming Inspection: Score 1 Point for each marked yes. Total: / 13

Item #: Remarks:

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E. IN-PROCESS QUALITY CONTROL

1. Are all toolings fully tested and evaluated with all measurements and Yes No
safety issues?
IPQC stands for In Process Quality
2. Are samples of pilot run carefully be reviewed by engineers and
Control. Yes No
quality staff to see all safety aspects are being met?

3. Is IPQC sufficient to prepare for mass product? Yes No

4. Is there any documentation either from the engineering, QC Yes No

department, or top management to authorize mass production?

5. Are there line patrols by quality controllers or other means to monitor Yes No
the compliance of the product to meet quality and safety
requirements?

6. Does factory use international or clients standards to carry out in- Yes No
process inspection? Are there records?

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 Yes No
accepted lots?

9. Are rejected lots well-identified and segregated from accepted lots? Yes No

10. Are there adequate, clearly written criteria/instructions available for Yes No
inspectors to follow?

11. Are there adequate approved samples attached to all areas to give Yes No
inspectors or workers a guideline?

12. Are the inspection and test equipment sufficiently reliable to verify Yes No
the conformance of the semi-finished final product?

13. Is the testing equipment calibrated accurately and is it sufficient? Yes No

A small machine that clips the
14. Are the inspection defects charted, analyzed, and layers
monitored
of theto Yes
fused part and tear No
improve the problems encountered? to breaking. It shows how much
of the force applied on the
tearing strength.
15. Are shade batches separated in a lay while cutting? Yes No

16. Are cutting panels checked before they are put into the sewing Yes No
floor?

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 Yes No
cutting machines?
The glove made of metal
mesh that prevents the
workers 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 Yes No
products?

2. Are there written formal inspection reports and are they properly filed Yes No
and traceable to review quality of products?

3. Are customer drawings/specifications readily available from quality Yes No

control or engineering department on request?

4. Does factory perform internal mechanical tests during production to Yes No

safeguard the products quality?

5. Are there records to show factory has ever performed such Yes No
mechanical safety tests?

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 Yes No
to show the confidence of safe products?

9. Are there normal procedures to require acceptable inspection reports Yes No

to authorize and shipment of the products?

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10. Does factory perform 100% check on functionality? If not, is the Yes No
current procedure sufficient?
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.
12. Are dummy used to check the fitting and hanging aspects of finished Yes No
garments?

13. If some operations are sub-contracted out, will the factory send its QC Yes No
to the sub-contractors site for monitoring the quality and are there
any out-inspection records to proving that?

Rating: Final Inspection: Score 1 Point for each marked yes. Total: / 13

Item #: Remarks:

G. FINISHING AND PACKAGING

1. Are packed master cartons well stored in a covered area or a good Yes No
shelter to keep from sunshine, to avoid being flooded or rained upon
and protected from dirt & rodents?

2. Is there adequate safeguard to prevent another companys products Yes No

from being packaged into master cartons?

3. Is there adequate control to prevent any defective or rejected products Yes No

from being packed into master cartons?

4. Are semi-finished products well segregated from final finished Yes No

products in the packing area?

5. Are finished products packed into master cartons immediately when Yes No
case product count has been done?

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 Yes No

of product?

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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, Yes No
and case number?

11. Is filter connected to the water pipe used for steam boiler in pressing Yes No
room?

12. Have the steam boilers been examined periodically by outside- Yes No
certified engineers and with certificates to prove it?

13. Is cleaning liquid and agents properly stored to avoid fire catching or Yes No
inhaling by workers?

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 Yes No
on packages (if applicable)?

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 Yes No
procedures for wastage water treatment?

Rating: Packaging: Score 1 Point for each marked yes. Total : / 17

Item #: 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 Yes No

to comply with standards?

3. Is scrap material handled satisfactorily? Yes No

4. If reclaimed materials are used, is there adequate identification and Yes No

checking to specification?

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 Yes No

materials or products are absolutely segregated from normal
production and none will be mixed into the production? Or re-selling
with brand labels.

7. Is non-conforming material properly segregated at all stages? Yes No

8. There are no signs that workers are wearing garments identical to Yes No
garments being produced?

Rating: Non-Conforming Materials: Score 1 Point for each marked yes. Total: / 11

Item #: Remarks:

I. COMMUNICATION, DOCUMENTATION CONTROL AND WORK MOVEMENT

1. In the case of authorized subcontracting, does factory provide Yes No

adequate supervision and specifications to ensure the compliance to
the requirements of client standards?

2. Is there an adequate and formal system for receiving purchase orders, Yes No
tooling, and equipment?

3. Are pre-production samples or pilot lots evaluated in writing and with Yes No
comments attached on it?

4. Are approved drawings and specifications used properly, filed in Yes No

chronological sequence, traceable and easily available?

5. Do factory management and key staff understands English Yes No

sufficiently to ensure communication?

6. Does factory have clear instructions to its departments to delegate Yes No

authority to stop production if the products do not meet requirements
of clients standards?

7. Is client technical information clearly identified with adequate Yes No

controls throughout production process?

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8. Does the factory realize that all the technical information related to Yes No
the clients product is confidential and will not be exposed to other
clients?

9. Does factory work closely and efficiently with client on the assigned Yes No
project to advise and discuss any failure on processing problems?

10. Do records show that regular pre-production meetings would be held Yes No
before a new style is firstly put into production?

11. Are the factory rules and the labor ordinance posted on the notice Yes No
board so to let the workers know their rights and privileges?

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. Total: / 12

Item #: 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 non- Yes No
conformity?

5. Is the corrective and preventive plan communicated with the Yes No

customer?

6. Is there any adequate traceable handling of complaint records? Yes No

7. Do records show that the corrective and preventive actions are Yes No
properly conducted and monitored to be acceptable?
Rating: Handling of Complaints: Score 1 Point for each marked yes. Total: /7

Item #: 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 Yes No
appropriate paperwork?
3. Is the country of origin correct on allWIP
paperwork? Yes No
means the semi-finished products
4. There is no evidence of diverted shipments
that stillfrom other countries.
in production process. Yes No
5. There is no evidence of contraband production. Yes No
6. There is no evidence of fraudulent labels. Yes No
7. Can WIP be completed within this factory ? Yes No
8. There is no evidence that the factory is subcontracting out garment Yes No
production.
*Denotes Critical Questions
Rating: Trans-shipment Information: Score 1 Point for each marked Yes. Total: /8

Item #: 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 Hand-held type metal detector Needle guard (wire device to prevent
type) the fingers from trapping in the
needling area)

Needle guard (wire device to prevent Attendance clock Attendance clock

the fingers from trapping in the
needling area)

Traditional attendance clock (punch Electronic attendance clock (swift Non-conforming products segregated
card type) card type) for repairing

Fabric inspection machine Protective steel glove used by the Light box (for color shade checking)
worker

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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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