Walmart Responsible Sourcing Evaluation

RS / FCCA / GSV

* Example Report *

North America
+1-813-252-4770

Latin America
+52-1-333-2010712

Europe & Middle-East

+49-8122-552 9590

Asia & Asia Pacific

+886-2-2832-2990

India
+91-120-4291971

Email
info@proqc.com

www.proqc.com
 Wal-Mart Supplier Audit Rev.
SUMMARY 1
Supplier Name Audit Date Report No.
XXXXXXXXXXXX XXXXX XXXXX

SUPPLIER'S INFORMATION CLIENT'S INFORMATION

NAME : ABC Factory NAME : ABC Company

ADDRESS : ADDRESS :

CITY : CITY :
COUNTRY : COUNTRY :
PHONE : PHONE :
FAX : FAX :
SUPPLIER'S PERSONNEL PARTICIPATING
Mr./Mrs. Title: Email:
Mr./Mrs. Title: Email:
Mr./Mrs. Title: Email:
Mr./Mrs. Title: Email:
Mr./Mrs. Title: Email:
Mr./Mrs. Title: Email:
Mr./Mrs. Title: Email:

Pro QC PERSONNEL
Mr./Mrs. Champlain Title: Pro QC Auditor Email:
Mr./Mrs. Title: Email:
Mr./Mrs. Title: Email:

Scope :

AUDIT RESULTS

RS = 43.88% FCCA = 39.68% GSV = 54.3%

CSA 43.88% FCCA 39.68% GSV 54.3%
C 36.73% C 9.52% Comply 11.11%
I 21.43% I 11.11% Need Imp 20.99%
NC 41.84% NC 79.37% Not comply 67.90%

RECOMMENDATIONS

Systems are effective, you could start or continue business with this supplier

System is acceptable, with minor nonconformities, you could use this

supplier, and keep pushing them to improve it.

System has some major issue, you could temporarily use this supplier and
request immediate corrective action in case of long term business.

There are serious major issue in this supplier that could impact in your business
The better solution will be to source for another supplier
 Wal-Mart Supplier Audit Rev.
AUDIT REPORT 1
Supplier Name Audit Date Report No.
XXXXXXXXXXXX XXXXX #VALUE!

Scope of Audit:
To evaluate the social responsibility level of the supplier associated with conducting business with Wal-Mart.

Summary/Recommendation:
The factory just received their business license in March this year.
Their production center is located on 6210 square meter in a workshop of 2 floor rented from someone else.
The building certificate was provided. The factory started to produce last year.

The current number of people is around 88 workers, acting in full time, no specific Quality Department, but with
5 people acting as QC, 1 for incoming inspection, 1 for final inspection and 3 in-process inspection.
The factory does not have any quality management system in place. Machines looks new, but with no documented
maintenance plan, and no calibration plan for inspection / test equipment.

The building has 2 floors, the 1st floor is for knitting and injection mold product, warehouse and delivery product.
The 2nd floor is for assembly testing, testing and packaging. The whole building seems to be under construction
with additional equipment current in installation process, including fire equipment. The factory is currently developing
documents to conform to social responsibility requirements. For example, work contract, working hours, salary payroll
respecting
basic the
requirement of national law. The safety condition and sanitary is an issue for improvement. The factory
has not yet conducted a full risk assessment that should lead to have safety program in place , including training
and necessary communication to workers. People assigned in paper as being responsible of safety issues are not
visible. They do not seem to be totally aware of safety risk in the environment.

Energy consumption and monitoring, as well as environmental aspect and their impact are not well known.

In regards to GSV / C-TPAT, there is no security system in place. Containers can come in, but no inspection is
conducted on them, neither in visitor or employee. Employees are not identified with badges. Fences are not equipped
with necessary cameras, and the facility looks easily accessible from various points.

This factory is aware of these issues and now trying to group energy and resources to resolve.

Strengths:
Equipment looks new.
Enough space for the development of future business.
The location of the factory is quite easy to find.

Opportunities for Improvement:

See above summary and within report.
 Audit for Wal-Mart Suppliers Rev.
Social Responsibility 1

Supplier Name Audit Date Report No.

XXXXXXXXXXXXXXXXXXXXXXXXXX xxxx

C = Complies with the requirements, I = Improvement Needed, NC = Not Complies, N/A = Not Applicable
QUESTIONNAIRES EVIDENCE TO CHECK FINDINGS SCORE
1 COMPLIANCE WITH LAWS SCORE
1.1 Does your facility adhere a written labor Attach the policy statement or Yes, the policy is written in the social
and ethics policy (or statement of document asserting commitment to manual (KX/SA01), page #18. Must
commitment)? compliance be signed. I

1.2 Does your facility adhere a written Attach the policy statement or Yes, the policy is written in the social
health and safety policy (or statement document asserting commitment to manual (KX/SA01), page #18. Must
of commitment)? compliance be signed. I

1.3 Does your facility adhere a written Attach the policy statement or Yes, the policy is written in the social
enviroment (or statement of document asserting commitment to manual (KX/SA01), page #18. Must
commitment)? compliance be signed. I

1.4 Is there a management representative Name and title of the person with the Yes, the company has nominated Mr.
at this facility assigned responsability defined authority to carry out the Wang Li xia as Representative, there
for assuring and facilitating compliance requirements is a nomination letter KX [2015]01
with labor and ethics, health and safety signed in 201504-01 (See Photo #8).
policy and environment policies, The Safety representative is also C
regulations and codes? nominated in the file KX [2015] 02,
signed in 2015-04-01.

2 VOLUNTARY LABOUR
2.1 Child Labour
2.1.1 Does the Company know the minimum Ask HR department or individual Yes, the company is aware of the
legal working age? responsible in charge of Hiring minimun legal working age which is
employee. Ask if that person has a 16 years olds. Ms Cary is in charge of
documented National law in which the Human resource and hiring process. C
minimal working age is written.

2.1.2 Does a written policy exist at the
Company addressing legal minimum
age or 15, whichever is greater?
Review policy and record the The factory defined the minimun
document number in which this policy working age as 16 years old. It writing
is written. in Social Responsibility Manual
(KX/SA01, Rev. A/0), page #28, C
section 4.1.1

2.1.3 What are the procedures the Company Review the procedure, and ask the The hiring procedure is writing in the
follows to verify the age of its audited person to explain the Social manual (KX/SA01, Rev. A/0),
employees? procedure page #28, section 4.2.1 as verify the
ID and Kukou certificate, and check in
the national website in case it need. C
The web site should be added in this
section.
 Audit for Wal-Mart Suppliers
Social Responsibility
Supplier Name
XXXXXXXXXXXXXXXXXXXXXXXXXX
C = Complies with the requirements, I = Improvement Needed, NC = Not Complies, N/A = Not Applicable
QUESTIONNAIRES EVIDENCE TO CHECK
2.1.4 Are ages of all employees checked Select 5 employees (of apparent
prior to hiring? youngest age) at each workshop,
record their name and ID, ask them
their age, year of birth, date of hire.
Ask them if their employer asked for
age identification at the time of their
hiring. Cross check employee
information with HR records.
2.1.5 Are any employees found to be under Record the Name of the Worker(s)
the minimum legal age or 15, whichever found to be under minimum legal age
is greater, during the audit review? or 15. Possibily take a photo of the
worker(s)
2.1.6 Do the Organization has a remedial Check if any or more of following
program for under age-hired workers remedial program is planned :
such as? a) Hire one of his or her family
members.
b) Send them to school.
c) Feed them.
d) Pay for them to go home.
Record the documented number in
which this program is written
2.1.7 Have the organization implemented the If there is an under age-hired
remediation program as defined worker(s), check the record of
implemementation of remediate
program. If not then this question is
not applicable.
2.1.8 Does your facility ensure that young or Review the restrictions (if any). Are
workers don´t perfom night work or the restrictions documented and fairly
hazardous work? enforced? If restrictions do exist,
check the restricted work areas for
compliance.
2.2 Forced Labor
Rev.
1
Audit Date Report No.
xxxx
FINDINGS SCORE
The factory has list of all employees,
around 103, including 15 already
leave, since April this year . Each
employee is listed with his name,
employee code number, sex,
education level, department number, C
name, ID number, birthday, hiring
date, location address, age between
19 to 49 (See photo #9)
Following 11 employees were
checked: KX002, KX003, KX021,
KX055, KX069, KX072, KX088,
KX089, KX096, KX099 and KX100.
C
Their age is between 18 to 25. None
of them were found under minimun
legal age (See photo #10)
Yes, the factory has a remedial
prgram writing in the Social Manual
(KX/SA01, Rev. A/0), page#17,
section #4.7, 4.8, 4.9 AN 4.10. The
program is:
1) Immediately stop work.
2) Conduct physical medical check 3)
Immediately inform local labour
service. C
4) Do not stop his contract, clean up
his salary, take care of transporation
expense to home, conduct necessary
investigation...etc
No, the factory has never experienced
the use of child labour, and has never
implement a such plan, Not applicable N/A
Yes, the factory defined policy for
young workers (16 to 18) describe din
the Social Manual (KX/SA01, Rev.
A/0), page #16, section 5.6, and has
C
prohibit the OT and night work in the
section 5.6.2

Supplier Name
XXXXXXXXXXXXXXXXXXXXXXXXXX
C = Complies with the requirements, I = Improvement Needed, NC = Not Complies, N/A = Not Applicable
QUESTIONNAIRES
2.2.1 How does the Company ensure it does
not use prison labor or forced labor and
that all workers are doing so
voluntarily? (Human traffiking)
2.2.3 Does your facility has a documented
procedure to verify that your suppliers
avoid slavery and human trafficking?
2.2.4 Does each personel employed at the
facility has a written contract?
2.2.5 Does the Company employ guest
workers or temporary labor?
2.2.6 Does the company require employees Review the contract and do interview
to make any monetary deposits or keep to 5 employess to corroborate
any original identification documents as information
a condition of employment or make any
financial guarantee to secure
employment?
Audit for Wal-Mart Suppliers
Social Responsibility
EVIDENCE TO CHECK
1. Let them explain the steps they
follow to verify that prison labor or
forced labor are not used at the
Company and that all workers are
doing so voluntarily.
2. Review the procedures/ practices.
Review documents or requirements
requested to suppliers before to
purchase goods and services.
Select 5 employees at each workshop
who are paid directly by the facility.
Check their contract and record the ID
No. of employee checked. Check if
the remunaration is written in the
contract.
If there is no guest or temporary
worker, then no applicable. If not
check the employment or business
contracts to evaluate the employee
payment conditions
Rev.
1
Audit Date Report No.
xxxx
FINDINGS SCORE
Yes, the factory defined policy to
prohibit the use of forced labor
described in the Social Manual
(KX/SA01, Rev. A/0), page #22. The
procedure is comform to national law. C
Yes, the factory defined a procedure
to select, qualify supplier is the base
of their respect or engagement in the
social policy. This procedure is
documented in the social manual
(KX/SA01, Rev. A/0), page #8, 9.
The factory has a list of 6 main I
suppliers, but there is no evidences of
their commitment to social effort.
Following 11 employees were
checked: KX002, KX003, KX021,
KX055, KX069, KX072, KX088,
KX089, KX096, KX099 and KX100.
Each has a written work contract,
signed by the employee himself. But I
no signature from the company
represenative. Remuneration is not
mentioned (See photo #11).
No guest at this factory
N/A
No, such practices are prohibited by
the policy documented in the
procedure of Social Manual
(KX/SA01, Rev. A/0), page #22,
section 3.2.2, as required by national
labor law in section #32, and #96. All C
interviewed employee has never
experienced been forced to such
practices.
 Audit for Wal-Mart Suppliers Rev.
Social Responsibility 1

Supplier Name Audit Date Report No.

XXXXXXXXXXXXXXXXXXXXXXXXXX xxxx

C = Complies with the requirements, I = Improvement Needed, NC = Not Complies, N/A = Not Applicable
QUESTIONNAIRES
2.2.7 Are all employees free to stop their
employment at the factory?
EVIDENCE TO CHECK
Interview 5 employees at each
workshop who are paid directly by the
facility. Ask them what the top
management will do if they decide to
stop their employment at the factory.
FINDINGS SCORE
Yes, employees are free to stop their
contract as it defined in the Social
Manual (KX/SA01, rev. A/0) page #29,
section 6.1. Around 15 employee
resigned their contract since April.
And each has completed the resign
process, for example of the employee C
#KX064, hired in 2015-3-27, applied
the resign in 2015-6-15, and approved
in 2015-6-16.

2.2.8 Is there any evidence of forced, Regardless of the reason why, if any No evidence
bonded, or involuntary prison labor of these conditions are identified,
used at the site? score "NC"
C

3 LABOR HOURS
Is there a legal limit on total working If so please enter legal limits for 5 working days ber week, 8 hours per
hours in country or region? regular hours and over time hours in day (8:30 to 11:30, 12:30 to 17:30),
both case per days, per week and per OT is 3 hours per day (18:30 to
3.1 month 20:30). At least 1 day rest within 7 C
working day

What is the limit on total working hours Please enter legal limits hours and Yes, the factory has defined working
in your facility? over time hours per days, per week hours in the document KX [2015] 08
and per month in your company as following (See photo #12):
5 working days ber week, 8 hours per
day (8:30 to 11:30, 12:30 to 17:30),
3.2 OT is 3 hours per day (18:30 to C
20:30). At least 1 day rest within 7
working day

Do all your workers have regular rest Check if they have at least 1 during Yes, 1 day rest per week
3.3 day? every seven-day period C

Do you workers have regular brakes Check with employees Yes, everyday from 11:30 to 12:30
3.4 during them working hours? C

Do any of your workers at the facility If so on what basis do they accept Yes, worker perform over time, for
perform over time work? over time work? Voluntary or example of worker KX072, KX096,
3.5 requiered . Check time record it KX099. KX088 who has accumulated C
should we available for all workers 24 hours OT in april.

Are employees provided with clear Ask 5 employees if they were Yes, the receive pay check with all
information about their wages and provided with the paycheck or other information, working hours and OT,
3.6 benefits on a regular and timely basis? documentation information on a and they sign when they get their pay C
regular basis. (See photo #14)
 Audit for Wal-Mart Suppliers Rev.
Social Responsibility 1

Supplier Name Audit Date Report No.

XXXXXXXXXXXXXXXXXXXXXXXXXX xxxx

C = Complies with the requirements, I = Improvement Needed, NC = Not Complies, N/A = Not Applicable
QUESTIONNAIRES EVIDENCE TO CHECK FINDINGS SCORE
Does the time worked by all workers is Check time cards or other reliable Yes, there record of working hours in
fully documented? system such a lectronics swipe cards regular and OT in daily basis, they
use electronic fingerprinter cards (See
3.7 photo #15), and time are recorded C
automatically (See photo #13)

Does the facility pay the legal minimum Ask HR department or department in Yes, check record of KX088, KX021
wage for regular time and overtime? charge of payroll to show the (See photo #14) for the payroll of
3.8 documents and it should be according March, April and May. C
with the law

4 HIRING AND EMPLOYMENT PRACTICES

When is required the company have a Review with HR department contracts Yes, each wroker has contract
contract for the workers according with made for the employees according to the law. But this contract
the law? is only signed by the employee, not by
4.1 I
the company representative (See
photo #11)

This contract has a clear description
and is provided in the national language
4.3 and with a clear understanding to the
person who is being hired?
Review contracts made for the Yes, the contract provide clair
employees, it should be provided in information in national language (See
the national language or the prevalent photo #11) C
language of the majority of the
employees

The company do any form of home It is niot allowed home working unless No home work
4.4 working? prior consent is obtained C

Is there any evidence of the use of
sexual harassment, corporal
punishment, mental or physical
4.5 coercion or physical abuse in the
facility?
Interview 5 employees who have No evidence
recently (past 2 years) received
disciplinary actions. If no employees
have received disciplinary actions C
randomly select 3 employees.

Does the facility have a policy on
discrimination or is a statement
included in an employee handbook?
4.6
Review the policy/ practices. (this
should be addressed to avoid sexual
harassment, corporal punishment,
mental or physical coercion or
physical abuse Are management
personnel (including supervisors and
any other individuals who can
administer discipline trained in the
policy?
Yes, the factory defined policy to
avoid practice of discrimination, and it
writing in the employee handbook.
No promotion notice against
discrimination in the field
C

Does this policy is clear, Ask for the document where is the The policy is written in employee
understandable and duly communicated policy and review the records made handbook, We did not see any
to the workers? about it evidences, such as traning record, or
4.7 I
public notice to enforce the respect of
this policy.

Supplier Name
XXXXXXXXXXXXXXXXXXXXXXXXXX
C = Complies with the requirements, I = Improvement Needed, NC = Not Complies, N/A = Not Applicable
QUESTIONNAIRES
Are deductions and/or penalties made
for disciplinary purposes?
4.8
Are allowed to the workers reasonable
movement in the workplace including
unrestricted access to bathrooms and
4.9 drinking water?
Does your company avoid request to
their job applicants pregnancy testing
4.1.0 and AIDS test?
Does the facility have a prenatal and
postnatal program that ensures
expectant mothers and new mothers
are able to safely continue working in
an area suitable for the condition and in
4.11 accordance with any applicable
governmental requirements?
5 COMPENSATION
Are the wages provided at least of the
legal minimum?
5.1
Are employees provided with other
benefits (holiday pay, vacation) to which deductions. Review 5 employee
they are legally entitled?
5.2
Audit for Wal-Mart Suppliers
Social Responsibility
EVIDENCE TO CHECK
Review policy or schedule of
deductions. Review 5 employee
paychecks who receive deductions for deduction for disciplinary purpose.
disciplinary purposes to verify they
are correct and that they are clearly
documented.
Interview 3 employees to know if this
basic right is fulfilled
Review the selection procedure
conducted by HR (including
questions, test, surveys and
documents requested)
Review the documented program or
procedure, review of work areas
designated by the facility as suitable
for expectant mothers and new
mothers. Sick leave provided. Limits
for nightshift or overtime work.
Relocation to less demanding work.
Verify wages for the last 12 months of
paychecks for 5 employees. Consider
regular, overtime and holiday wages.
If applicable, does piece rate pay
comply with legal minimum wage
Review policy or schedule of
paychecks who received other
benefits to verify they are correct and
that they are clearly documented.
Rev.
1
Audit Date Report No.
xxxx
FINDINGS SCORE
Yes, the factory published a rules in
the office, in which it's indicated
NC
Yes, all workers has reasonable
movement in the factory. No
unreasonable restriction to access to
bathrooms and drinking water C
There is no such request when hiring
people
C
The factory has defined policy for
protection of expected and new
mother in the social manual KX/SA01,
Rev. A/0, page 23, 24. Including
working hours, holidays…etc. An
prohibited work environment during C
pregnancy . With allowance to fit their
baby for 30md when it needed.
We have checked monthly pay check
of March, April and May 2015,
because the company has just got
their business license since March
this year. Record of salary, including
OT is documented in hours rate, and C
the salary is almost above legal
minimum
There is a procedure in the Social
Manual KX/SA01, Rev. A/0, page #10,
11, section 5.6.1.4 describing salary
calculation such as 150% for OT in
regular day, 200% for OT in Saturday
and Sunday, and 300% in national
holiday. There were national holiday in
May 1st, employee did not work that C
day, and there is no OT. Other benefit
are assurance for accident, and
retirement documented in the file
GP29002004486195.
 Audit for Wal-Mart Suppliers Rev.
Social Responsibility 1

Supplier Name Audit Date Report No.

XXXXXXXXXXXXXXXXXXXXXXXXXX xxxx

C = Complies with the requirements, I = Improvement Needed, NC = Not Complies, N/A = Not Applicable
QUESTIONNAIRES EVIDENCE TO CHECK FINDINGS SCORE
Is the salary are paid in timely manner Ask the same 5 employees how often the salary is provided every month of
including over time? they are paid, and check if the date of 25 days, it written in the record
payroll is respected (no more than 30 salary.
5.3 C
days from beginning of wage period)

Does is deducted from wages only what Deductions from wages must not be
is legally allowed? made without the express and written
consent of workers and shall be
documented in employee files.
5.4 Deductions must not be made as a
disciplinary measure and Suppliers
must not deduct recruitment agency
fees.
There is deduction for employee
assurance of employee, 158.90 for
immigrate employee, and 282.20 for
local employee. According to the
national law. C

6 FREEDOM OF ASSOCIATION AND RIGHT TO COLLECTIVE BARGAINING

6.1 Is there a work union in your facility and Review a Policy or procedure signed Yes, the factory recognize freedom of
if so, do you recognize it? by a company top authority, in association as defined in the
recognition of the work union force. procedure of Social Manual C
(KX/SA01, rev A/0), page #31.

6.2 Is there an elected member of the work Note the name of the worker Yes, the authority has approved the
force that acts as employee Representative, and note his work election of worker representative see
representative? location. nomination letter KX [ 2015]07 signed
in 201504-15. Worker Rep. are: He
chen Xiu, Shi hua, Liu Dong, Li De
Yan. The valid period is from 2015-04-
15 to 2017-04-14. I
There is no recorded that attest that
those people were selected by
worked

6.3 Are employees free to join a union or Interview 5 workers at each workshop Yes, it defined that workers are free to
association? if they know who is their worker join an union or association
representative C

6.4 Are representatives or union members
subject to discrimination?
Interview the worker's representative
The factory has define policy to not to
discriminate workers representative in
the Social Manual KX/SA01, Rev. A/0,
C
page 32, section 4.6.2

If unions are restricted by law: Ask for the representative committee Union is not restricted by the law.
Do the employees have a in the facility
6.5 N/A
representative committee?
 Audit for Wal-Mart Suppliers Rev.
Social Responsibility 1

Supplier Name Audit Date Report No.

XXXXXXXXXXXXXXXXXXXXXXXXXX xxxx

C = Complies with the requirements, I = Improvement Needed, NC = Not Complies, N/A = Not Applicable
QUESTIONNAIRES EVIDENCE TO CHECK FINDINGS SCORE
6.6 Do the employees have access to Interview 5 workers at each There is procedure to allow employee
management? workshop, and ask them how they to convert their complaint to top
access to management in cas of management, written in the document
need(complaint) KX/CARE201-234, page #67, section
3.1, 3.2. An
unique mail box is fixed at the first
floor workshop (See photo #16). The I
mail box is totally empty. The
procedure i snot communicated to
employee

6.7 Are workers allowed to meet on work
related or personal issues?
Interview 5 workers at each workshop Yes, worker are allowed to meet on
and ask them if is allowed this kind of work related or personal issue. But we
meeting did not see any evidence that worker
are aware of such right, no publish I
notice. No record of their attendee.

6.8 Workers know who the representative Interview 5 workers at each Interviewed few worker, almost they
is? Employees remember when the last workshop, and ask them if the now do not know their worker
elections were held? when the last elections were held. representative. There is no notice in NC
field to inform them about

7 HEALTH AND SAFETY

7.1
7.1.1 Are kept clear and unblocked at all
times aisles, exits and stairwells ?
Fire safety
Please take photos of these places Stairwells some stairwell are not free
like evidence of object. All aisles at the 1st and 2nd
floor are blocked with object (See I
photo #6)

7.1.2 Are the exits clearly marked and
unlocked at all times during working
hours ?
Exit doors must open outwards, be
unlocked from the inside and require
no special operation. Please choose
different exits at the facility and take
photos to collect evidence
Some exist doors are marked, and
maintained unlocked during the
working time.
While others are locked (See photo
#17) at the 2nd floor. I
Few exist doors are opened in the
opposite direction.

7.1.3 Does the facility conduct regular fire
drills?
It should be at least once per year or They haven't conduct fire drills, not
as mandated by law, whichever is record so far.
more frequent. (Review the
Occupational Health and Safety NC
program or policies)
 Audit for Wal-Mart Suppliers Rev.
Social Responsibility 1

Supplier Name Audit Date Report No.

XXXXXXXXXXXXXXXXXXXXXXXXXX xxxx

C = Complies with the requirements, I = Improvement Needed, NC = Not Complies, N/A = Not Applicable
QUESTIONNAIRES
7.1.4 Is fire fighting equipment and training
available/ appropriate?
EVIDENCE TO CHECK
Fire fighting equipment and training
must be consistent with the
expectations of the facility and the
expected behavior of workers in the
event of an incident. Does the factory
have Fire Extinguishers distributed
throughout the facility?
a) Are the locations of the fire
extinguishers prominently identified?
b) Are the fire extinguishers all
serviceable?
i. Are they numbered for
identification?
ii. Are they maintained secure with
lock clips retainers in place?
iii. Are the inspections of the
Extinguishers documented?
FINDINGS SCORE
Fire extinguishers are about to be
distributed, they are now placing
them at the related place.
A) Some are identified with a code
number, and physical place, while
few are surrounded with object. B)
They are serviable, with code number
in some of them. c) have
inspection record from March only.
Must have a map that locate each fire
extinguisher. (See I
Photo 18)

7.1.5 Are adequate emergency exits and
emergency notification systems
provided?
In most cases, 2 or more main Exist has notification system in place,
emergency exits are appropriate. Are but very limited.
the main emergency exits marked,
accessible and unlocked? Do exits
open in the direction of travel and I
discharge to a safe area?

7.2 Electrical Safety

7.2.1 Does the facility maintain appropriate
electrical wiring and circuit box
conditions and use appropriate
protection equipment, including rubber
mats as required?
Check the electrical wiring , circuit box Electric wiring and circuit box are not
and see the conditions. Review protected, to avoid worker to be hit by
protection equipment. Take photos to electricity (See photo #19) NC
collect evidence

7.3 PPE/Chemical Safety

7.3.1 Does the facility has a inventory of all
chemicals used ?
They should be:
Separated like hazardous and non-
hazardous.
With appropriately store MSDS/CSC
(chemical safety card) in local
language and available on the floor.
- Dated when are received and
properly labeled with at least the
chemical name and hazard warnings.
- There is no specific place that indicate
the location of chemical product, such
- as oil used for the maintenance of
machines. Not labeling. No MSDS
document, and no specific storage
place for chemical material found on
NC
side (See photo #20)

7.3.2 Is Personnel Protective Equipment Identify 3 jobs (preferably more
(PPE) provided, used and appropriate? hazardous jobs or more common
jobs). Evaluate what the correct level
of PPE is for the jobs. Is this level of
PPE provided? Is it worn correctly
and when necessary?
The leakage testing are generate
noise, and operator are not protected.
Noise reach around 71 db, which is
out of requirements (Photo #21)
NC
 Audit for Wal-Mart Suppliers Rev.
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C = Complies with the requirements, I = Improvement Needed, NC = Not Complies, N/A = Not Applicable
QUESTIONNAIRES EVIDENCE TO CHECK FINDINGS SCORE
7.3.3 Does the factory has eye wash stations Please take photos like evidence Not need eye wash
. Are them appropriately located and N/A
maintained?

7.4 Hazardous Liquid

7.4.1 Does the factories has a list of They should be: - There is not list of hazardous liquids,
hazardous liquids (flammable and acid Stored in appropriate (durable and for hazardous elements found on site
base) compatible) storage (See photo #21, 22)
bulk/drum/container.
- Has a standard operating
procedures SOP (flammable liquids)
- Dated when are received and NC
properly labeled with at least the
chemical name and hazard warnings.

7.4.2 Does the factory has preventative Ask the prevention program and No preventive system, no record
maintenance program for flammable documents showing that it has been attesting that it was communicated to
liquid systems and its communicated to communicated and followed all employee
NC
the workers and duly recorded?

7.5 Sanitation
7.5.1 Does the facility provide safe drinking Review it and take photos for They have certificate for drinking
water for their workers? evidence. water, # 20150675, conducted in 2015-
03-26 to 2015-04-08, according to GB
17323-1998, and GB 17324-2003.
Drinking water, and devices are not I
located in sanitary manner, too much
dirty around (See photo #23)

Does the spaces in your facility such as General conditions. Is a health or The factory does not have restrooms,
restrooms, canteens, food preparation occupancy certificate issued by the canteens, food preparation,
areas, dormitories, etc. are maintained local authorities? Is a score provided dormitories
7.5.2 in a safe and clean condition? on the certificate? N/A

7.5.3 Does your company possess Ask for this certificates if they have it Not applicable
appropriate hygiene certificates for their
canteen and its workers as mandated
N/A
by law

7.6 Accident/First Aid/Risk Assessment

7.6.1 Does your facility to adhere to a written Or commitment statement for the There is no specific safety plan since
Occupational Health and Safety policy? company focused on this . What are risk was not identified yet
the decisions and actions taken? NC
 Audit for Wal-Mart Suppliers Rev.
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C = Complies with the requirements, I = Improvement Needed, NC = Not Complies, N/A = Not Applicable
QUESTIONNAIRES EVIDENCE TO CHECK FINDINGS SCORE
7.6.2 Does factory maintain detailed Attach occupational health and safety There is no accident / incident log in
accident/incident logs? policy and check the accidents and place
incidents occurred at factory are NC
registered

Are adequate first aid competence Check who are first aid people, what The factory has 3 person certified 1st
available in the facility, including related certificate they have, interview 5 aid person, 2 newly added in 2015-06-
medicine disposal? workers at each workshop if they 10. their name, and contact people
7.6.3 know the first aid people. should be visible at the medical box. I
(See photo #24)

7.6.4 Is your company have documents Ask for risk and hazards found at The factory did not conducted risk
where have been identified the risk and work duly document and the plan identification, and assessment
hazards at work? action to avoid them NC

7.7 Machine/Equipment Operation and Maintenance

7.7.1 Training regarding the proper and safe
operation of machinery/ equipment is
provided to workers?
Ask for the records of these training
proper operation, practices and
procedures to safeguard employees
from unexpected startup
There is no proper work instruction to
describe the safety operation of the
machine on site. No operating raining
record for production machine in NC
place (See photo #3, 4, 5, 6, 25)

7.7.2 Does the machines are equipped with
appropriate and operational safety
devices?
Review if the machines: Are
inspected and serviced on a regular
basis. Machines
with rotating parts are enclosed and
interlocked with an automatic shut off
mechanism.
All required safety/protective guards
are securely in place.
Few machine are equipped with
appropriate safety devices (See photo
25). Others does not (See photo 26).
Knitting machines, around 30 are
equipped with an alarm system, and
system to stop if any problem (See I
photo 27)

7.7.3 Does the company has detected the Ask for machine safety instructions
risks associated with machine hazards? (including pictures/warnings)
Machine operational parameters are
posted on all machinery. (root
cause analysis)
The machine list is not update, and
machine safety manual is not visible
in place. No document showing that
machine wear detected with certain
risk. However, few machines has NC
warning sign

7.7.4 Does the company has records for Proper CLTI (Cleaning, Lubrication, No records and no plan for
maintenance machinery and Inspection and Tightening) checklist is maintenance.
equipment? maintained after each machine NC
maintenance.

7.7.5 Does the facility has a machine safety
committee?
This committee should be comprised No safety team for the machine
of management, worker maintenance.
representatives and maintenance NC
team to address concerns related to
machine safety.

Supplier Name
XXXXXXXXXXXXXXXXXXXXXXXXXX
C = Complies with the requirements, I = Improvement Needed, NC = Not Complies, N/A = Not Applicable
QUESTIONNAIRES
7.7.6 Does the facility has all the certificates
and license and registration of the
machine when is needed?
9 ENVIRONMENT
9.1
9.1.1 Does your facility have a program Review environment program focused We cannot see any program about
and/or procedures for management of on wastewater
wastewater and solid, including
monitoring, characterization, treatment,
discharge, and/or recycling?
9.1.2 Does the facility has appropriate
permits for onsite waste disposal as
required by law. (water and solids)
9.1.3 Is collection and transfer to a waste
management firm used to manage the
wastewater and solid waste?
9.1.3 Are the type of waste classified?
9.1.4 Is onsite disposal or incineration used
to dispose of solid waste at your
facility?
9.1.5 Does the employees receive training
about wasted management?
9.2
9.2.1 Does the company conducts regular
wastewater ?
Audit for Wal-Mart Suppliers Rev.
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Audit Date Report No.
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EVIDENCE TO CHECK FINDINGS SCORE
Ask the legal certificates needed for There are 2 elevators, one is under
the machines and machines parts like 500 kg, do n0t need to be certify, and
pressurized/compressed equipment another has certificate at the building
(boilers, compressors, gas cylinders, owner has that certificate. They have I
etc.). 2 persons with certificate
Wasted Management
environment.
NC
Review the permits that the facility Cannot see it
has regarding this issue
NC
Deliver hazardous waste for offsite No record
treatment and disposal only to
contractors licensed or permitted by
appropriate competent authority (if
any), which should be verified NC
regularly. Review this documents
It should be segregate hazardous and No record
non-hazardous waste. Should
be Maintain in containers and labels
in an appropriate condition.
Maintain inventory and tracking
records, including the disposal and NC
treatment of both on-site and off-site
waste.
Please check the method used it No record
should Conduct no on-site waste
burning or uncontrolled waste land NC
filling.
Review the training program No record
(Employees should be provided
appropriate waste management
NC
training, including the handling and
segregation of wastes)
Wastewater & Effluents Management
Review if they make sampling & No plan, and no record
testing, as required by law. NC

Supplier Name
XXXXXXXXXXXXXXXXXXXXXXXXXX
C = Complies with the requirements, I = Improvement Needed, NC = Not Complies, N/A = Not Applicable
QUESTIONNAIRES
9.2.2 Does the facility has a proper drainage
system?
9.3
9.3.1 Does your company obtain and
maintain appropriate permits for air
emissions?
9.3.2 Are methods used to control airborne
emissions at your facility?
9.3.3 Does your facility have a program
aimed at reducing the amount of
airborne emissions generated, including
process modification, containment, or
efficiency improvement?
9.3.4 Does your facility have a program
aimed at inventorying, reducing, and
reporting the emissions of global
warming gases (GWGs) from your
operations?
9.4
9.4.1 Does the facility maintain appropriate
permits for water use ?
9.4.2 Does the facility maintain data
regarding water use consumption?
9.5 Energy use and GHG (greenhouse gases) management
9.5.1 Does the facility obtain and maintain
appropriate permits as required by law? applicable legal requirements in terms this audit
9.5.2 Does the facility set up energy use
inventory (direct and indirect)?
9.6
Audit for Wal-Mart Suppliers Rev.
Social Responsibility 1
Audit Date Report No.
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EVIDENCE TO CHECK FINDINGS SCORE
A detailed layout or schematic of the No detailed layout of the drainage
drainage system should be available system
N/A
for review.
Air Emissions Management
Ask for this permits, it should be as No appropriate permit for air
required by law emissions
NC
Review methods to control like No method, no system
exhaust ventilation, oxidizer, scrubber,
electrostatic precipitator, carbon NC
filtration etc.
Review the immediate corrective No method, no system
actions taking by company when in
the event emission limits are
exceeded. NC
Review that the facility has: Inventory No program
of sources related to air emission
points.
Maintain an inventory of ODS (ozone
depleting substances). NC
Seek to expand the inventory of ODS
(ozone depleting substances)
containment equipment.
Water Management
It should be as required by law No permits was available by the time
of this audit NC
You can verify by water consumption No data for water consumption
data from water bills and meter
NC
readings
Review documents where prove No permit was available by the time of
of energy use and GHGs emissions. NC
Review documents such as energy No energy use inventory system in
consumption data from energy bills place
and meter readings, fuel bills, gas
NC
bills, on-site transport
Land Use and Biodiversity
 Audit for Wal-Mart Suppliers Rev.
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Supplier Name Audit Date Report No.

XXXXXXXXXXXXXXXXXXXXXXXXXX xxxx

C = Complies with the requirements, I = Improvement Needed, NC = Not Complies, N/A = Not Applicable
QUESTIONNAIRES EVIDENCE TO CHECK FINDINGS SCORE
9.6.1 Does the facility conduct Environmental Review the permits for land use and The factory has not conducted
Impact Assessment and submit the facilities construction as required by environmental impact, record seems
results to competent authority? law, Including permits to protect land. to be at someone office who was not
in place during the time of the audit NC

9.7 Environmental Management System

9.7.1 Does your facility have a program
and/or procedures for obtaining
environmental permits/approvals and
managing compliance with the permit
requirements?
Review environmental legal register, There is a procedure for env.
programs and /or procedures Management. But no assessment
record, and no risk assent, no specific
plan I

9.7.2 Does this program has a management Ask for the documents where prove Not visible
team coordination of environmental the conformation of this group and
management activities? show the mechanics used be
communicated to the employees NC

9.7.3 Does the company has a Emergency Ask for this plan and remember it Plan No response plan
Response Plan for environmental should be communicated to the local
issues? authorities, emergency services, and NC
local communities as required by law.

9.8 Hazardous Substances Management / Soil & Ground Water Pollution Prevention
9.8.1 Does the company use hazardous Review the list and have in account: No list
substances? Is forbidden the use if banned
chemicals. It should
has the permits required by law NC
(handling & storage)

9.8.2 Does the company take appropriate This risk could be hazardous No measure in place
measures to prevent & control any risks substances release, including the
of environmental pollution? contamination of soil and
groundwater.
Verify the existence of sensitive
receptors (e.g. rivers, underground NC
water, etc.) close to productions
facilities and see the measurements
to prevent these risks.

Does the facility maintain an inventory Ask for inventory list and review that No inventory
of hazardous substances used and it should be maintained together with
stored? relevant up-to-date Material Safety
Data Sheets (MSDS). NC

Supplier Name
XXXXXXXXXXXXXXXXXXXXXXXXXX
C = Complies with the requirements, I = Improvement Needed, NC = Not Complies, N/A = Not Applicable
QUESTIONNAIRES
9.8.3 Are the employees trained about
hazardous substances issues?
9.8.4 Does the facility report any pollution
and hazardous substance incidents to
the authorities?
9.9
9.9.1 Has your facility implemented a risk
assessment process to identify,
prioritize, and mitigate the potential
Health and Safety risks associated with
Noise pollution in operations and
activities?
9.10 Permissible harvests and origin of raw (input) materials:
9.10.1 Does the facility demonstrate origin of
incoming materials and place of
production?
9.10.2 Does the facility demonstrate that raw
materials were obtained from legal
harvests?
10
10.1 Does your facility have a program
and/or procedures in place to prevent
excessive gift-giving, on the part of
suppliers, contractors, or agents
representing the facility?
11
Audit for Wal-Mart Suppliers Rev.
Social Responsibility 1
Audit Date Report No.
xxxx
EVIDENCE TO CHECK FINDINGS SCORE
Ask for the documents of training it No training record
should include pollution prevention
and response. NC
And training in substance handling
Ask for the records if it has happened There is no procedure for such action.
or the way that they have to However, the factory never record an
communicate any incident incident that need to be report to local I
government.
Noise Pollution
Ask for this program and have in We were no able to see the last
account risk detected and corrective assessment record about noise to
actions in the event the noise pollution know if the factory is within tolerance.
limits are exceeded. But from outside, the factory do not
I
produce excessive noise, except
inside which is harmful for worker
Ask for inventory records and Yes, the factory maintain a list of
production records to demonstrate supplier who provide raw material
origin of materials C
Ask for certifications which prove the The factory use plastic raw material,
raw materials were obtained from and cartons for packaging. Their buy
legal harvests according with those raw material from eligible
international treaties and protocols in company having business license
addition to local laws and regulations provided by the local government. C
even if national regulations do not License are available
regulate harvests.
GIFT AND ENTERTAINMENT
Ask for this program and must ensure There is no such policy, procedure
factories do not offer gifts or and training. Including monitoring
entertainment to Wal-Mart associates system
or those working on behalf of Wal-
Mart. Gifts include but are not limited
to:
Meals
NC
Travel expenses
Money or the equivalent
Free goods
Tickets or access to events
Personal favors
CONFLICTS OF INTEREST
 Audit for Wal-Mart Suppliers Rev.
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Supplier Name Audit Date Report No.

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C = Complies with the requirements, I = Improvement Needed, NC = Not Complies, N/A = Not Applicable
QUESTIONNAIRES EVIDENCE TO CHECK FINDINGS SCORE
11.1 Does your facility have a program Suppliers must not enter into There is no Ethical business program
and/or procedures to detect, eliminate, transactions with Wal-Mart associates to protect conflict interest
and prohibit situations in which Wal- that create a conflict of interest. So
Mart Associates have a potential review program or procedure (Ethical
conflict between the company’s Business practices) to detect and NC
interests and their own? avoid this kind of situation

12
12.1 Does your facility have a program
and/or procedures in place to prevent
corruption, including bribery, , extortion,
or embezzlement, on the part of
suppliers, contractors, or agents
representing the facility?
ANTI CORRUPTION
Review Ethical Business Manual it The factory does not have program /
should be addressed to: procedure to prevent corruption,
Suppliers may not promise, offer, or bribery…etc.
pay anything of value to a government
official or political party to obtain or
retain business or secure an
advantage on behalf of Wal-Mart.
Ethical Sourcing This electronic copy, NC
maintained on Retail Link and on
Walmartstores.com,
Wal-Mart Stores, Inc. is the only
controlled document. Printed copies
are deemed not controlled.

13
13.1 Does the company keep accurate
records of all matters related to their
business with Wal-Mart?
FINANCIAL INTEGRITY
Ask for financial records. They should There is no such record linked to
be in accordance with standard GAAP, IFRS system
accounting practices such as
Generally Accepted Accounting
Principles (GAAP) or International
Financial Reporting Standards (IFRS)
NC
and available for for pre-arranged and
unannounced audits by Wal-Mart or
authorized third party representatives.
 Audit for Wal-Mart Suppliers Rev.
FCCA CHECKLIST 1
Supplier Name Audit Date Report No.
XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX xxxx xxxx

QUESTIONNAIRES / EVIDENCE TO CHECK FINDINGS WEIGHT SCORE

1 Factory Facilities and Environment
1.1 There is sufficient lighting on: There is sufficient lighting in production, finishing,
Production, revising, finishing, inspection, packing and Inspection, packing and loading area (See photo 3,4,5,
2 3
loading areas? 6)

1.2 The facility maintains clean and The facility is not clean.
organized production, finishing and packing areas. 2 1

1.3 Facility has separate inspection area with inspection The facility does not have a separate are for inspection.
table and proper ventilation 2 0

1.4 Facility has documented pests/mildew and moisture There is no system to prevent it.
control program which includes frequent inspections. (in-
3 N/A
house or 3rd party)

1.5 No broken windows or leaking roofs that may result to Broken windows, and opened window are visible on site.
product contamination was observed during audit
3 0

1.6 Factory implements strict sharp tools The factory does not have strict control system to avoid
control procedure to prevent scissors, knives, blades, scissors, knives, blades, broken glasses and needles in
broken glasses and needles to be mixed with product the product. 5 0
(CRITICAL)

2 Machine Calibration and Maintenance WEIGHT SCORE

2.1 Factory has documented system and procedure for The factory does not have a system and procedure for
scheduled equipment cleaning and repairs equipment cleaning and repairs 3 0

2.2 Factory machines and equipment Injection machines are 6, and 10 knitting machines, 30
appear to be clean and in good running condition knitting all appears to be new, clean and in good
condition (See photo, 3, 4, 5, 6) 2 3

2.3 Machines, equipment and tools are Machines, equipment and tools are not properly labeled,
properly labeled with date of last no maintenance, no calibration.
maintenance/calibration and schedule. 3 0

2.4 Machines, equipment and tools that No label in machine that need to be repaired.
needs to be repaired are properly labeled to avoid
2 0
accidental use

2.5 Factory has proper, clean and organized storage area of There are storage are, but not properly labeled.
critical tooling (i.e. injection moulds) with labeled shelves
3 1

2.6 Factory has proper documentation and updated No document.

inventory of machines, tools, spare parts and equipment
3 0

2.7 Factory has maintenance team with There is no maintenance team, no JD, no plan.
suitable skill level and equipment to
perform necessary repair and calibration on machines. 3 0

3 Quality Management System WEIGHT SCORE

3.1 Factory has established Quality No system.
Ma nagement System that is appropriate to their
5 0
products and procedures

3.2 Workers & Supervisors are familiar to these quality No system, no training record, no policies, no objectives.
policies and objectives 4 0
 Audit for Wal-Mart Suppliers Rev.
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Supplier Name Audit Date Report No.
XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX xxxx xxxx

QUESTIONNAIRES / EVIDENCE TO CHECK FINDINGS WEIGHT SCORE

3.3 Factory has documented customer There is no complaint system, and there is no log.
complaint system and documented recall program
4 0

3.4 Factory QC team is independent from Production There are 5 QC peoples, 1 at incoming inspection, 1 at
division (CRITICAL) final inspection, 3 at in-process inspection. No leader,
no specific department, no specific JD. 5 1

3.5 Production management and QC team discuss and work No specific document as guideline.
together in solving Quality issues/ concerns.
3 0
(Documented)

3.6 Factory has systems and procedures in place to control No system and procedures to control risk of physical,
the risk of physical, chemical and biological chemical. Lot of machine, hazardous elements in field
contamination that may damage the product and 5 0
personnel as well

3.7 Factory conducts risk audits to identify hazards from No risk audit, no person
chemicals, raw materials, process equipment and tools
5 0

3.8 Is factory accredited with any No

international, national or customer quality standards
association (e.g. ISO 9001,etc.)? 5 0

4 Incoming Materials Control (Warehousing and Storage) WEIGHT SCORE

Has the factory taken adequate measures to assure raw There is no adequate system to assure materials
materials conformance to required specifications before conform specific requirements.
4.1 3 0
use?

Proper first in-first out (FIFO) system on materials are No FIFO system in place.
4.2 practiced 3 0

Factory has procedures (instructions, guidelines and No procedure.

documented records) for quality inspection on incoming
4.3 raw materials, accessories and components 4 0

Is needed testing equipment available, and maintained 2 main test equipment, to check pressure resistance
in good condition? (100%), and leakage (randomly). Test equipment seems
4.4 new, but with pressure meter no calibrated. 3 3

Are raw materials properly labeled, Raw material not labeled.

4.5 stored and traceable? 3 0

Factory has documented process and reference For plastic raw material, no need references samples.
samples that ensure incoming raw materials conform to But for component, no reference samples
4.6 specifications. 3 0

Factory has proper system on material segregation to No segregation area or system in place.
avoid accidental contamination from rejected items
4.7 (CRITICAL) 5 0

Factory properly separate good quality items from No strict separation of good / bad in field.
rejects and identifies non-conforming (rejects) materials
4.8 for replacement. 4 0

Facility’s storage areas have sufficient lighting, well Yes, lighting is sufficient, and ventilated.
4.9 ventilated and clean surrounding. 2 3
 Audit for Wal-Mart Suppliers Rev.
FCCA CHECKLIST 1
Supplier Name Audit Date Report No.
XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX xxxx xxxx

QUESTIONNAIRES / EVIDENCE TO CHECK FINDINGS WEIGHT SCORE

Materials, components and accessories are properly No labels on materials, component.
stacked and identified with tags / labels and off the floor.
4.10 3 0

Chemicals and maintenance substances are properly No marking in chemical material.

marked and stored to prevent risk of contamination
4.11 5 0
(CRITICAL)

Does factory have a documented Mr. Shen is in charge of supplier selection, he do not
4.12 supplier selection and approval process? have standard procedure for the selection, they have 6 3 1
suppliers
Does factory track, evaluate and The factory do not have system to track, evaluate
document material’s supplier reliability (performance)? supplier reliability
4.13 3 0

Does factory have an established, No system, no data.

documented quality procedure and does factory
4.14 evaluate, monitor sub-contractor quality performance 3 0
and reliability?

5 Process and Production Control WEIGHT SCORE

Does factory PD study and apply product safety No system.
features, evaluates patterns, moulds and samples during
5.1 product design and development? 4 0

Factory has documented Quality Very few. Work Instruction at the assembly line, not very
5.2 procedures (QP) at each stage of weel done, not under control. 3 1
operation
Does factory conduct Pre-production meeting prior to No record meeting.
5.3 start of production? 3 0

Are critical quality and safety checks reviewed, No record, no procedure.

identified, and actions for improvement documented
5.4 during Pre-production meeting (CRITICAL) 5 0

5.5 Does factory conduct “pilot-run”, review product quality No system, no record.
against specification sheet and document results with
corrective actions prior to production? 3 0

5.6 Was in house lab-testing performed on current No lab-testing in place

production? (Request for test copies) 3 0

5.7 Does factory QC compare first piece No record of first piece inspection.
samples with approval sample and 3 0
specification sheet?

5.8 Are there adequate approved samples, first piece No visible approved sample in place.
samples, reference samples and work instructions to
provide workers with 4 0
proper guidelines?

Does Quality Control have authority to stop production if No QUALITY department, no authority acting as quality
quality of products did not meet specification leader.
5.9 (CRITICAL)? 5 0

5.10 In-line inspections (IPQC) are There is 3 in-line QC, but no specific JD, no work
performed by QC at every operation instruction, no record.
process 3 0
 Audit for Wal-Mart Suppliers Rev.
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Supplier Name Audit Date Report No.
XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX xxxx xxxx

QUESTIONNAIRES / EVIDENCE TO CHECK FINDINGS WEIGHT SCORE

5.11 Is quality of item acceptable on current production? There is no standard and criteria for acceptance of
(Check 8 finished products taken from factory final product, they conduct inspection at 100%.
inspected goods and check for major defects on the 3 0
item.)

5.12 Factory QC inspects per standard AQL or as per The factory does not have standard AQL as industrial
industry standards standard.
3 0

5.13 Factory performs 100% functionality Yes, the factory performs 100% functionality pressure
check on final products? resistance test, randomly check in leakage test.
3 3

5.14 Does factory use corrective actions and root cause No system in place.
analysis methods? (Please provide examples)
3 0

5.15 Does factory have guidelines in place to ensure No system.

packaging is correct for product? 3 0

5.16 Does packing area have enough space to perform The space is enough, but no well organized.
packing functions properly? Is it clean and organized?
3 1

5.17 Packed cartons are stored in enclosed area not exposed Packed cartons are inside the workshop, but windows
to sunshine and wet weather are very close, and sometime open, leader to wet
weather could enter. 3 3

5.18 Does factory track and document on-time ship No system.

performance?
3 0

6 In-House Lab-Testing WEIGHT SCORE

6.1 Does factory perform in-house lab No lab.
testing and are facilities appropriately equipped? 15 N/A

6.2 All gauges and test equipment have No lab.

valid calibrations. 3 N/A

6.3 Testing manuals of various industry No lab.

standards are available as reference 3 N/A

6.4 In-house Lab Technicians are properly trained to perform No lab.

testing functions 3 N/A

7 Final Inspection WEIGHT SCORE

7.1 Does factory have procedure and No writing procedure for final QC.
working instruction for final QC? 3 0

7.2 Factory QC conducts final inspection per standard AQL No QC final inspection.
or as per industry standards.
2 0

7.3 An approved sample or reference sample with packing No approved sample, not identified.
list and shipping marks are available as reference for
factory QC. 2 0

7.4 Are there formal written final inspection reports? Are No inspection report.
they properly filed and traceable to review quality of
2 0
products?
 Audit for Wal-Mart Suppliers Rev.
FCCA CHECKLIST 1
Supplier Name Audit Date Report No.
XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX xxxx xxxx

QUESTIONNAIRES / EVIDENCE TO CHECK FINDINGS WEIGHT SCORE

7.5 Does factory final QC perform internal mechanical tests Yes, final QC perform internal mechanical, but no record
to ensure the safety of product?
4 0

7.6 Where appropriate, are inspection and testing Good condition, but not calibrated.
equipment used by the inspector in good condition and
2 0
calibrated?

7.7 Failed inspections are properly corrected prior to final No record of failed, no record to show the follow up.
inspection by customer (CRITICAL) 5 0

7.8 Factory does not ship goods unless No procedure in place.

subjected to release procedures from customer 3 0

8 People Resources and Training WEIGHT SCORE

8.1 Factory conducts, documents and maintains on-job No training plan, no record.
training for all personnel or conducts pre-hire testing of
skilled workers prior to hiring
4 0

8.2 Factory conducts and documents technical training There are few people trained with certificate.
programs for Electrical/Mechanical Engineer, Machinist,
QC and Lab Test Technician 4 1

8.3 Records of trainees and all regular No record training.

personnel with corresponding performance records are
kept and maintained
4 0
 Audits for Wal-Mart Suppliers Rev.
GSV CHECKLIST 1
Supplier Name Audit Date Report No.
XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX xxxx xxxx

A A.Records & Documentation:

Is there documented security improvement action plan Facility has no documented security improvement action
summarizing identified vulnerabilities and their relevant plan summarizing identified vulnerabilities and their
1 corrective actions? relevant corrective actions. NC

Does the facility has security department/personnel Yes, the facility has 2 security department / personnels,
one working at daily time, and another at night time. No
2 specific JD, no record of their presence during these I
time.
Has the facility conducted a site security assessment No
3 NC

Has the facility designated a company official No

4 responsible for contractor security NC

Has the facility designated a company official No

5 responsible for conveyance/transport security NC

Has the facility designated a company official No

6 responsible for personnel security NC

Has the facility designated a company official No

7 responsible for plant security NC

Has the facility designated a company official No

8 responsible for security audits or evaluations NC

Has the facility designated a security chief No, the facility has 2 security department / personnels,
one working at daily time, and another at night time.
9 They do not have a higher level person as their chief. I

Are Security procedures and improvement plans where No security procedures.

10 relevant, documented and verifiable NC

Does the facility has policy in place to ensure that No policies.

11 security procedures are documented NC

B Personnel Security:
1 Is background checks on all applicants conducted No, backgroup are not checked, only record of birthday,
ID are visible. I

2 Is company identification required for entry of No, employee does not have identification or badge.
personnel. NC

3 Are criminal background checks updated periodically as No system in place to required such check, no record.
needed, and/or when employees' work responsibilities
require it. NC

4 Are Employee personnel files maintained include the Yes, name, bithday and location address, and ID
date of birth, name, ID number, and address of the number are included in employee personnel files. C
employee
5 Are employees required to return their badges when Employee does not have badge.
they leave the company? NC

6 Are Employment history checks conducted
7 Does facility have process in place requiring all
personnel to participate in the security awareness
program
The have form to conduct history check, but most of
their record are empty at the spaceof history I
employment.
No process, no training. Employee are not aware of the
security requirements as explained in C-TPAT, GSV.
NC

8 Does the facility have or maintain a written code of Code of conduct are documented in employee
conduct for employees handbook, and few others published at the office area, I
but these CoC are not related to C-TPAT/ GSV, they are
9 Does the facility has process in place to publish the more for disciplinary
No process, no procedure purpose.
to publish.
security procedures throughout the facility (i.e. posters,
bulletin boards, etc) NC

10 Is IDs required to access restricted areas? There is no restricted area, no ID is required.

NC

11 Is IDs specify access for loading/packing dock areas? No specific ID to access loading/packing area, these
areas are opened to everyone. NC
 Audits for Wal-Mart Suppliers Rev.
GSV CHECKLIST 1
Supplier Name Audit Date Report No.
XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX xxxx xxxx

12 Are lost IDs replaced and recorded as missing? No procedure to handle lost IDs, no record for the
replacement. NC

13 Does new employee orientation include challenging and No training, no announcement. Employees are not
reporting unidentified persons to security or aware of C-TPAT requirements. NC
management personnel
14 New employee orientation does not include computer No training, no announcement. Employees are not
security aware of C-TPAT requirements. NC

15 New employee orientation does not include confirming No training, no announcement. Employees are not
that all onsite personnel are wearing ID aware of C-TPAT requirements. NC

16 New employee orientation does not include detection of No training, no announcement. Employees are not
unlawful activity aware of C-TPAT requirements. NC

17 New employee orientation does not include maintaining No training, no announcement. Employees are not
cargo integrity aware of C-TPAT requirements. NC

18 New employee orientation does not include recognizing No training, no announcement. Employees are not
and detecting dangerous substances and devices aware of C-TPAT requirements. NC

19 Does new employee orientation include reporting No training, no announcement. Employees are not
compromised security infrastructure (broken locks, aware of C-TPAT requirements. NC
windows, computer viruses, etc.)
21 Security procedures and periodic security checks related None
to personnel security are not documented and verifiable. NC

22 The control over distribution and inventory of employee None

ID badges and facility access keys/cards/codes is not NC
restricted to a limited number of authorized employees
23 The ID does not include a biometric indicator, i.e. a Fingerprint is isued to identify people.
unique physical identifier such as a facial photograph or C
fingerprint
24 Is the issuance of employee identification centralized By HR
and controlled by a specific department? I

25 There are no procedures in place to retrieve IDs and/or Not defined.

deactivate access as needed NC

C Physical Security
1 Is Access to the lighting switches restricted to authorized No, there is no restriction to the lighting switches.
personnel only NC

2 Is Access to video monitors controlled videos monitors is located at an office, beside the desk,
no body there in 24/24 to monitor it. Any person could go
I
through.

3 Areas near the cargo conveyances are not lighted Lighting is enough.
C

4 Is visitors log which records entries and exits maintained No visitor log for entries and exits.
NC

5 Are containers stored an adequate distance away from Containers are keep in the factory, they came and go
the perimeter walls/fence just after loading. The container with tracks are stored
between building. The distance is around 5 m. I

6 Are containers stored away from exterior building walls Containers are keep in the factory, they came and go
just after loading. The container with tracks are stored
between building. The distance is around 5 m. I

7 Are copies kept of container seal numbers on incoming No records kept.

shipments NC

8 Is Employee access limited to the relevant areas of No limitation to access to the area.
responsibility NC

9 Are Employee parking lots located away from entrances No limitation to access to the area.
and exits? NC

10 Are Employees observed by and/or subject to security No inspection to employee when entering the building.
inspection when entering the building NC

11 Entrances/exits for the facility are not secured by gates The company has only 1 entrance, with gate (See photo
#1). C

12 Entry/exit control points for employees are the same as There is one entrance gate, but no control at all.
for visitors, vendors, repairmen, etc. I
 Audits for Wal-Mart Suppliers Rev.
GSV CHECKLIST 1
Supplier Name Audit Date Report No.
XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX xxxx xxxx

13 Examinations of containers found with broken seals do Containers are no examined, no record (See photo 25
not document other anomalies with a container that was there during the audit). NC

14 Facility buildings are not properly maintained and Yes, facility are not properly maintained (See photo 28).
repaired I

15 Facility does not have a back up power source for the Yes, there is back up power for alarm system.
alarm system C

16 Facility does not have a designated security guard force There are just 2 security personnel, with no specific Job
description. I

17 Facility maintain an up-to-date list of names and No available list of contractor, vendor, repairmen
addresses of all contractor, vendor, repairmen personnel personnel, exceed for raw material supplier. I

18 Facility has adjoining/overhanging structures or foliage Yes, there are lot of possibility to illicit entry over the
which would potentially facilitate illicit entry over the fenced (See photo 28).
NC
fenced areas into the facility

19 Facility has outside lighting No outside lighting on the fence.

NC

20 38. Facility's designated security guard force is not There are just 2 security personnel, with no specific Job
overseeing the facility 24 hours a day, 7 days a week description, one working in day time, another night time. I
(24/7)
21 For conveyance entries/exits, logs are not maintained No log maintained.
with container number NC

22 Gates are monitored by cameras during non-operating No camera at the gate and around the fenced. Camera
hours are only inside workshop at certain point. I

23 If allowed to enter facility area, vendor and visitor Vendor / visitor vehicle are not inspected.
vehicles are not inspected NC

24 Parking lots are not monitored No specific parking area limited.

NC

25 Shipping/receiving parking lots are separated from all Shipping/receiving parking lots are not separated from
other parking lots all other parking lots (see photo 29). NC

26 The activity inside/outside the facility is not monitored by The activity inside the facility is monitored by closed
closed circuit television cameras (CCTV) circuit television cameras (CCTV) located in manager
office, in one computer screen. Activity outside the I
factory is not monitored.
 Audits for Wal-Mart Suppliers Rev.
GSV CHECKLIST 1
Supplier Name Audit Date Report No.
XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX xxxx xxxx

27 The company does require the use of visual The company does NOT require the use of visual
identification for employee parking identification for employee parking.
NC

28 The company does require the use of visual No, the company does NOTrequire the use of visual
identification for visitor parking (a coded parking sticker, identification for visitor parking (a coded parking sticker,
NC
tag, decal) tag, decal).

29 The container storage area is surrounded by a secure No, the container storage area is not surrounded by a
fence or wall secure fence or wall. NC

30 The entire perimeter of the facility (including gates) is The entire perimeter of the facility (including gates) is
lighted not lighted at night time. NC

31 There are distribution records of the facility's access No, there are no distribution records of the facility's
keys, codes and cards to employees access keys. NC

32 There are procedures for detecting and reporting 98. There are no procedures for detecting and reporting
shortages and overages shortages and overages. NC

33 Is there a termination procedures in place for employee? No, there are no termination procedures in place to
immediately terminate existing physical access when an
individual terminates employment or transfers to another NC
position.

D Information Access Controls

1 Computer information backups are stored at an off site Computer information backups are not stored at an off
facility site facility. NC

2 Computer information is saved on a back-up system No back up system to avoid lost.

NC

3 Incidents of unauthorized IT system access are not There is no IT knowledge at the factory.
investigated and recorded N/A

4 Information systems are password protected Password is not used.

N/A

5 Passwords are subject to regular forced changes Password is not used to access information, each
person use password in his computer, there is no
NC
automatic periodical change.

6 The facility does have procedures for identifying which No, the facility does not have that procedures for
employees are allowed access to automated systems, identifying which employees are allowed access to
NC
company document. automated systems.

7 The facility implement firewalls into its network system No firewalls system used.
NC

8 There is process or plan to restore IT data in the case of No, there is no process or plan to restore IT data in the
a failure case of a failure. NC

9 There is system in place to suspend a log in user ID No, there is no system in place to suspend a log in user
after a certain number of failed access attempts ID after a certain number of failed access attempts NC

E Shipment Information Controls

1 Information requirements for shipments are automated Information for shipments are manual, not automated.
I

2 Records are maintained of outcomes of unannounced Records are maintained of outcomes of unannounced
security checks related to shipment information controls security checks related to shipment information controls C

5 The designated company representative responsible for No training record.

providing accurate information on the company products
to the carrier/broker/forwarder, has IS been trained on
the information requirements for shipments to the United NC
States

6 There is company representative responsible for Yes, there a person who can provide accurate shipper,
providing accurate shipper, forwarder, and consignee forwarder information. C
information
7 There is company representative responsible to provide Yes, the Production Manager can provide such
timely advance information for shipments information. C

8 There is designated company representative responsible Yes, there is someone who can provide such
for providing accurate information on the company information.
products to the broker/forwarder C