FCCA report number: WGSFCCA24-KH201311-28041178-ITS

75.71%
FCCA Score:

FACTORY CAPABILITY & CAPACITY AUDIT (FCCA-APPAREL)

SUPPLIER NAME: J-UP International Co., Ltd. FACTORY NAME: MIN KUAN TEXTILE CO.,LTD. FACTORY C/O: Cambodia
SUPPLIER ID: 36112563 FACTORY ID: 28041178 TENTATIVE FACTORY ID:
SECTION 1: ON-SITE LABORATORY Rating NA Score
10 5 3 0
1) Is there an on-site, fully equipped laboratory with trained technician on site? x x
2) Is your laboratory certified by other major U.S. companies? If yes, by who? N/A
3) Are critical laboratory tests performed (either in house or use 3rd party lab) and result used by production for problem prevention? x 5

4) Are there consistent fabric/garment shrinkage/wash tests conducted in-house/ at outsorced washing plant and properly evaluated? x 0
Total Possible
20 Point Score 5
Comments: Percentage 25.00%
#1) Facility has no internal lab. The management affirmed that the fabric testing process is done from Taiwan which is its parent company.
#2) The laboratory is setup overseas in Taiwan which is the parent company of Min Kuan Textile Co., Ltd. However, it is not certified by other major U.S. company.
#3) Facility has color test done from overseas based on customers requirements. Results are communicated to other departments properly. The test reports are sent from parent copany with
color band and fabric and are kept for reference.
#4) There is no In-house shrinkage/wash tests conducted for every style. Steam panels/blankets wash test are carefully evaluated and approved prior to cutting.

SECTION 2: SAMPLE ROOM, PATTERN AND MARKER MAKING

Rating NA Score

10 5 3 0
1) Is the sample room fully equipped to produce samples that are representative of factory's specific product type? x 5
2)Is there a skilled sample room technician available and capable of modification of patterns when required and responsible for x 10
handover to production floor with record available? [Critical]
3)Are CAD system and plotter used for grading, consumption and marker ? x 0

4) Are bulk patterns and markers checked for accuracy? x 10

5) Are shrinkage tests conducted for each bulk lot received? x 0

6) Are sample room fabric, trims & accessories well organized in sample room? Is house keeping acceptable? x 10

7) Is lighting adequate(100 FC and above)? x 10

Total Possible
70 Point Score 45
Percentage 64.29%
Comments:
#1) Sample room is setup with appropriate equipments including special sewing machines like bar-tack machine, button sewing machine, snap button machine, heat transfer machine, proper
cabinet to keep accessories, body form, and needle control record is separated from sewing section.
#2) All sample room technician are well trained and skillful to produce the sample and modify the pattern when required, every production patterns are approved by technician with a list of
the pattern to the production side.
#3) Facility does not have CAD or plotter system. Only manual system used to trace marker from original marker sent from their parent company is available.
#4) From onsite audit, all hard patterns and makers are distributed to the production and all hard patterns distributed to the production floor are with pattern maker/checker's name, date,
chop and signature.
#5) No in-house wash tests are conducted for every style, every batch and every color. Garments are not carefully evaluated with thorough visual analysis. No records are available for review
during onsite audit.
#6) Sample fabrics, trims & accessories are well organized and kept in racks with identification. The house keeping is nice with record of audit available.
#7) Lighting level in sample room is 104.5 FC.

SECTION 3: WAREHOUSING OF FABRICS, YARNS, TRIMS & ACCESSORIES Rating NA Score

10 5 3 0
1) Are all fabrics / yarns / trims / accessories organized and stored indoors, off of floors, and remain covered / protected until ready for use x 10
required space? [Critical]
2) Are the inspection processes appropriate for bulk fabrics / yarns and quality / weight / color shade/ fiber content are verified and are fabric x 0
inspectors trained?
3) Are the inspection processes appropriate for bulk trims / accessories and finishing trims, carton and quality / weight / color are verified and x 5
inspectors trained?
4) Is light box and approved shade band available for bulk color verification? x 3

5) Is lighting adequate for all the inspection areas(100 FC and above)? x 10

Total Possible
50 Point Score 28
Percentage 56.00%
Comments:
#1) Fabrics are well organized and stored on the rack separated by lot, color with identified card. Two racks are marked as rejected goods. The rejected lots are not mixed with the rest of the
bulk. All incoming and out going material records are kept properly. The raw material warehouse can store up to 10 days.
#2) Fabrics were not inspected at onsite facility for both sample garment and bulk production since the fabric inspection machines were not available at onsite facility.
#3) 10% of accessories or more are inspected before issuing for bulk production. Reports are well kept for tracking information. Shade band, type of defects are at the side of the inspection
station. If failed, the inspections of another 10-20% are required. For uncountable items (like lace, elastic, velcro, etc are check at least 5%, the defect and reject accessories will be recorded
and will not be reworked.
#4) Approved shade band and light box is available on site but no calibration process was conducted.
#5) There is no fabric inspection process. However the lighting at accessories inspection area is 100.2 FC.

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SECTION 4: SPREADING, CUTTING & FUSING (Go to Addendum #1 for Sweater) Rating NA Score
10 5 3 0
1) Is there work-in-process balance between cutting and production output to adequately fulfill daily produciton requirement? x 5
2) Are acceptable processes in place for adequate fabric relaxation? x 0
3) Are shade variances controlled within spreading process? x 5
4) Is spreading methodology acceptable? x 5
5) Is there proper control for matching / cutting of patterned fabrics such as plaids & stripes? x 10

6) Does factory have adequate storage for bulk cut inventory? x 10

7) Are cut pieces properly inspected and numbered? x 10
8) Is fusing & heat seal quality acceptable, machines regularly calibrated and records maintained ? x 10
9) Are bulk cut goods and accessories, designated for either internal or off-premise handling ( such as sewing, x 10
laundry, embroidery, printing), transported in a well organized and protected manner and records kept?
10) Is lighting adequate(100 FC and above)? x 10

11) Does cutting has its own approved sample for reference? x 5

Total Possible
110 Point Score 80
Percentage 72.73%
Comments:
#1) WIP is within 2 days and less then 3 days to produce the 1st bulk production.
#2) During onsite audit facility, has relaxed some fabrics, However, there was no relaxation rack and equipments, no procedure to show fabrics had relaxed base on fabric content and type,
and no record of relaxation.
#3) Shade variances system is used. All layer are separated by lots and color during spreading.
#4) Manual spreading techniques was used, however spreaders were well trained and acceptable, Spreading height not more than 4 inches and length between 3 to 8 meters.
#5) Well controlled in alignment, matching by string / light beam and cut in appropriate height and length, plus proper numbering, template for manual trimming, bundling, Spreading random
inspection is done and recorded.
#6) Storage is sufficiently available with racking and excess cutting. Cut parts are properly stored/covered.
#7) Cut pieces are 100% inspected by QC cutting. Numbering processes is done with appropriate tools and good record keeping.
#8) Hand iron, label fusing and piece continuous roller pressing are available with calibration record. Fusing qualities is acceptable.
#9) Bulk cut goods are properly stored in the rack and covered with thick poly bag.
Light and dark colors are well segregated. Light bundle strings are used for light color.
#10) Lighting is 108.5 FC

SECTION 5: SWEATERS ( in additional to the Production Process)

Preparation of Yarns Rating NA Score
10 5 3 0
1) Are yarns checked for color continuity within dye lots and deliveries, by comparison to knitted swatches from randomly x x
selected cones of yarn?
2) Are yarns randomly checked for essential key properties, including yarn size, yarn weight, absence of knots and foreign x x
contamination?
3) Is winding room tidy / clean and winding machines freed of excessive dust, dirt and contamination? x x

4) Is there procedure in place to segregate light color yarns? x x

Knitting and Linking Section
5) Are knitting lines efficiently organized? x x
6) Are Knitting lines well lit (100FC or above)? x x
7) Do all operators have the approved written procedures explaining the knitting sequence and the amount of weights required for each style, x x
coarse/inch, wash/inch, wale/inch, panel width and weight (for handframe machines)? Are the automatic knitting machines properly
set (for auto machines)?
8) Is in-line inspection conducted on panels, for basic measurements and general quality, such as holes, etc. x x
9) Are there controls in place to ensure shade consistence of returned yarns? x x
10) Are linking sections well organized ? x x
11) Are linking sections well lit (100FC or above)? x x
12) Is inline inspection conducted over lamp form, following linking process and including basic measurement? x x
Mending & Stitching Section
13) Is the ratio of the Mending/Stitching Operators to Linking Operators appropriate based on the production and the x x
complexity of the styles? ( Line balancing )
14) Are Mending / Stitching Operators skillful ? x x

Total Possible Point Score 0

0 Percentage 0.00%
Comments:
It is not a sweater factory.

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SECTION 6: PRODUCTION PROCESSES Rating NA Score
10 5 3 0
1) Is on site industrial engineering department adequate and effective? x 0

2) Is there production planning department? x 3

3) Is there a proper training program for new operators? x 5

4) Are in-house pre-production meetings and Pilot runs conducted for each style, prior to bulk production, and meetings attended by x 10
factory personnel?
5) Are approved samples available on every line for review, and sample comments translated into local x 10

6) Are production lines well balanced and set up in systematic process, without bottlenecks? x 10

7) Is there a proper system to record broken/damaged needles, scissors, thread cuttters, tag gun needles & hand x 10
stitching needles etc. at both sample room and production floor? [Critical]
8) Is production floor well organized and clean, and isles clear, free of clutter ? x 10

9) Are adequate systems used to isolate defective and / or repaired products ? [Critical] x 10

10) Are there on site mechanics who regularly maintain all machines and maintenance records well kept? x 10

11) Is there proper maintenance department equipped with adequate tools and necessary equipment? x 10

12) Are sharp objects such as trimmers and scissors effectively tracked e.g. that they are permanently attached to the x 10
machines and there is regular monitoring so missing of 'attached' sharp objects will not go unnoticed? [Critical]
13) Is lighting adequate(100FC and above)? x 3
Total Possible
130 Point Score 101
Percentage 77.69%
Comments:
#1) There was no onsite IE staff and technical team to handle the time study and line balancing. Only the production manager is responsible to do the machine lay out and basic line
balancing. However, there was no any records to show IE job is done properly.
#2) There was no production planning department. Production manager responsible for production planning uses self designed spreadsheet. Some necessary adjustments are made to meet
delivery schedule.
#3) There is a training procedure for new sewing operator and quality controller. However, no training room was available. New operators are assigned to respective line leaders for on job
training in the production floor with record of training maintained.
#4) Pre-production meeting with appropriate department head like warehouse supervisor, cutting supervisor, sewing supervisor, sample room in charge, Ironing supervisor, finishing
supervisor and including mechanic supervisor are conducted for every new style with records.
#5) Both approved sample and trim card with signature and comments in local language are displayed on each sewing line.
#6) Sewing line and production process are well balanced. There is no obvious bottlenecks in each working process, the input, and output quantity from each department are recorded.
#7) Needle control policy/system is setup and communicated to relevant employees. Based from the interview, the needle exchanging system is effectively controlled. The broken needle
controller know the procedure change needle very well. Based from random check on 5 single needle sewing machines, there are no any needle fragment found.
#8) Production floor and aisles are clean and well organized.
#9) There is an effective quality control system in use. Defective garments are placed separately. Records are properly kept immediately and repairs are made within the hour.

SECTION 7: INSPECTION PROCESSES Rating NA Score

10 5 3 0

1) Does factory have inspection system at inline and end line? Does factory measure complete garment? [Critical] x 10

2) If garments, or garment parts, are constructed at subcontracted facilities, or if embroidery, printing, or laundry functions are handled x x
at off-premises facilities, are returned garments and/or panels properly inspected before they are released back to bulk
production work flow again?
3) Does QA/QC department have an independent reporting structure? Are all QA/ QCs trained regularly? [Critical] x 10

4) Factory has a complete set of their buyer's technical manual hard copy and knows how to obtain updated information. x 10

5) Does factory conduct inspection on daily completed garments after sewing line using buyer AQL or tighter and does factory take x 5
on failures?
6) Is lighting adequate (100 FC and above)? x 10
7) How are alteration/defective garments handled in all section? x 10
8) Does factory has sufficient well equipped inspection room? x 10
Total Possible
70 Point Score 65

Percentage 92.86%
Comments:
#1) Factory has inline inspection process and end line inspection with adequate QC at each sewing lines based on out put and recording system, completed garments are measured using
AQL 1.5 from total production covering color & size daily all through the day and records are written by pencil and properly kept.
#2) There is no garment, or garment part constructed at subcontracted facilities
#3) QC/QA had its own reporting structure to report to QA supervisor and QA supervisor report to factory manager. All QC/QA are well trained with records kept.
#4) Factory has setup its own quality manuals in local language which is updated with its buyer’s standard and fully understands the requirements and existing factories has manual
translated to local language.
#5) Factory conducts inspection hourly based on AQL 2.5. Factory rechecks failed lots before sending to next process. Records writing need minor improvement.
#6) Lighting level at inspection table is 101.6 FC.
#7) Found defective garments are segregated properly by red plastic stands. Records are kept and root cause of defect is investigated and analyzed with corrective action.

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SECTION 8: PRESSING Rating NA Score
10 5 3 0
1) Is there a pressing supervisor available and pressing standards and method of pressing displayed within the area?displayed within the x 3
area? Is there sufficient space for keeping garments?
2) Does factory use appropriate pressing equipment, template and guides for ironing? How is the condition of the equipment & quality of steam? x 10
Calibration of the boiler and iron machine maintenance card attached and updated? House keeping of pressing area?
3) Is there measurement audit after pressing? If yes, is audit result properly documented? x 10

4) Is ventilation and lighting (80 FC) adequate? x 10

5) Are pressed garments handled properly prior to packing? How is WIP handled in the section? x 10

Total Possible
50 Point Score 43
Percentage 86.00%
Comments:
#1) Pressing standard was not setup at each pressing table, but pressing supervisors are available. Pressing operators well understood the standard.
#2) Appropriate pressing equipments are available since on the pressing tables are setup with the pattern to control the measurement during pressing process. Pressing equipment is found
in good condition with no leakage & rust. The covering cloth is correct and clean, steam is completely dry, vacuum is strong enough, calibration of the boiler and iron machine maintenance
card available and updated. House keeping of pressing area is acceptable.
#3) Measurement inspection using AQL 2.5 is done after pressing with records well maintained.
#4) Pressing is well ventilated and lighting level was above 80 FC.
#5) Sufficient hanging racks/shelf racks for pressed garments. Pressed garments are hanged in appropriate height.

SECTION 9: FINISHING / REPAIRING / PACKING Rating NA Score

10 5 3 0
1) Are packaging standard and samples readily available for reference? x 10

2)Is there a 100% final checking after finishing and is there a random audit done after finishing? Is there a 100% x 10
measurement for key points and audit done after finishing? [Critical]
3) Is there an effective stain management and repair operation on site ? x 10

4) Is there an organized and efficient work flow in the finishing area? How are the WIP levels? x 10

5) Is lighting adequate (100 FC for inspection and 60-80 for other areas)? x 5

6) Does factory conduct final audit based on same (or tighter) AQL of buyer? [Critical] x 10

7) How are alteration/defective garments handled in the section? x 10

8) How is the infrastructure and housekeeping in the section? x 10

9) Is the storage space for packed goods enough as per the factory capacity? x 10

10)Is there a procedure in place to remove uncut thread and loose threads and foreign materials? x 5

Total Possible
100 Point Score 90
Percentage 90.00%
AUDIT OF Twenty (20) PIECES FINISHED GARMENTS.
Pass AQL 2.5, Pass if 1 Major found, fail for 2
No score if pass, need to insert comment for fail

Comments:
#1) Specification/samples are displayed with approval signature at finishing/packing section for references.
#2) 100% final inspection after finishing done for critical measurement. There is also a random checking on finished carton.
#3) There is appropriate stain cleaning room at onsite facility using benzene. The cleaning station is well equipped with a compressed air gun. PPE and exhaust fan are provided. Repair of
work station is well organized. MSDS is available with records maintained for corrected pieces and reject pieces.
#4) Well organized and efficient balance workflow setup at finishing section.
#5) Lighting level at inspection area was 117.6 FC and 80 FC at working table.
#6) Facility conducted final audit/inspection based on AQL 2.5 as sampling standard after packing at least 80%. Records were available and failed goods are re-audited after correction.
#7) Found defects from finishing operation and sewing/fabric defect (less than 1%) are segregated properly. Defective garments are sent to respective area for correction with record being
kept.
#8) Finishing area is in good housekeeping and ventilation. Tables are found clean without any rough edges.

SECTION 10: PRINTING Rating NA Score

10 5 3 0
1) Is printing automatic or manual (including drying)? Do they maintain record of recipes and samples available for operator? Are operators x x
trained and do they hire based on skill lavel and how do they measure?
2) Are screens made in-house or contracted to outside source? x
3) Are machines regularly maintained and serviced, and in good condition ? x x
4) Are in-process and finished pieces inspected and seconds replaced before releasing back to production workflow? Is Lighting level at x x
inspection area (100FC and above) ?
5) Is there organized and controlled storage area for chemicals? x x
6) How is the housekeeping & organization in the section? x x
Total Possible
0 Point Score 0
Percentage 0.00%
Random check finished panels. Quality acceptable or unacceptable

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Comments:
No prining process onsite.

SECTION 11: EMBROIDERY Rating NA Score

10 5 3 0
1) Does the embroidery facility have a broken needle control process? x x
2) How is the quality assurance process within the emroidery facility? Are proper approvals/samples available? Are thread ends and x x
embroidery backings properly trimmed-off before re-entering to bulk production?
3) Are embroidery machines properly maintained, regularly cleaned and serviced, and in good working x x
4) Is lighting levels (100FC and above) sufficient in the embroidery section? x x
5) How is the housekeeping in the section? How are the embroidery threads stored? x x

Total Possible
0 Point Score 0
Percentage 0.00%
Random check finished panels. Quality acceptable or unacceptable
Comments:
Embroidery process is outsourcing.

SECTION 12: ONSITE GARMENT LAUNDRY Rating NA Score

10 5 3 0
1) Are machines adequately maintained? x x
2) Are laundry formulas, reference samples and approved shade band readily available for operators' and inspector's easy reference? x x
3) Are in-process and finished goods inspected prior to re-entering bulk production flow, to eliminate shade variances and defective units? x x
4) Is the laundry facility clean, chemicals properly stored and free of unnecessary standing water pools? x x

5) Is laundry managed by qualified technician and chemist? x x

6) Is lighting levels (100FC and above) sufficient in the Laundry section? x x
7) Does laundry has effluent treatment facility? x x

Total Possible
30 Point Score 0
0 Percentage 0.00%
Comments:
No garment washing onsite.

SECTION 13: PRODUCT SAFETY & SATISFACTION

Rating NA Score
10 5 3 0
1) Does factory has a sufficient & proper metal detection process for all the products? (Metal detection is MANDATORY for all product x 5
areas)
George and Seiyu market hence scoring would be 10-0 for critical and 10-5-0 for rest and Asda new factory [Critical]
2) Does factory has pull strength equipments for buttons/snaps/rivets or any other fastener? [Critical] x 10
(For childrenswear dept 26, 24, 33 score 10-0 and adult 10-5-0)
3) Does factory use lockstitch for button attach? [Critical] x x
(Mandatory for childrenswear dept 26, 24, 33, score 10-0 and adult 10-5-0 hence scoring dept 26, 24, 33, score 10-0 and adult 10-5-0)
4) How is Snap/Rivet (or any metal fastener) attaching process & machinery in the factory? [Critical] x x
5) Is there arrangement for disposal of non-conforming goods & materials? [Critical] x 5

6) Does factory maintain lead test for printing items? [Critical] ( For childrenswear for US dept 26, 24, 33 and Asda/George) x x
Total Possible
30 Point Score 20
Percentage 66.67%
Comments:
#1) Metal detector placed in an airport system. There is proper layout/setup to avoid/minimize the possibility of goods by-passing the metal detection process. Metal detector is
calibrated regularly 3 times per day with proper records. Locked rejected bin to keep the contaminated products was also setup. 1-in/1-out needle control policy was setup and
effectively implemented.
#2) Facility has pull test equipment available. SOP for pull strength testing is available.
found proper records and only assigned person from quality can perform test. Calibration was available.
#3) Factory does not use any lockstitch for button attached.

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FACTORY EVALUATION RATING RESULTS Maximum Actual
Pass % Score Point Score Percentage

On-site Laboratory 60% 20 5 25.00%

Sample Room, Pattern and Marker Making 60% 70 45 64.29%
Warehousing of Fabric, Yarns, Trims & Accessories 70% 50 28 56.00%
Spreading, Cutting & Fusing
Sweater
Production Processes
65% 390 314 80.51%
Pressing
Finishing / Repair / Packing
Product Audit (32 pieces)
Inspection Processes 75% 70 65 92.86%
Printing
Embroidery 60% 0 0 0.00%
Laundry

Product Safety & Satisfaction 70% 30 20 66.67%

Basic Evaluation Total Scoring:

MAXIMUM VALUE OF SECTIONS EVALUATED : 630
EVALUATION RESULT % 75.71%

Evaluation Rating Criteria:

Rating Guide CAP
80-100% (A) Good CAP required within 7 days
60-79% (B) Acceptable CAP required within 7 days
0-59% ( C) Unacceptable CAP required within 7 days

* CAP to be generated for any score falls in either 0 or 3 and critical/ safety area.

* New factory which scores zero on CRITICAL questions (which are in BOLD) will be rated 'Unacceptable' until corrections are completed
and validated by WM associates / 3rd party auditors. Dark check boxes are no scoring

* Existing factory must correct within a specific time period or will be disqualified for new order placement.

Factory Evaluation Summary

Evaluation Summary Comments:

MIN KUAN TEXTILE CO., LTD. is located at No. 88 Phum Prey Sala, Sankat Kakab, Khan Dankor, Phnom Penh, Cambodia. The total land area occupied by the factory is 2,400 square meters.
The facility building is rent from local owner. The facility is the shared holder from Taiwan Company and has started its operations in the existing location since May 2004.
In view of the facilities, it consists of one building with 1 floor (ground floor) is used as production floor started from raw material warehouse to finished good warehouse and mezzanine is used
as management office, sample room, onsite clinic and expatriate canteen and also finished good warehouse.
The main products manufactured by the factory cover children's sleepwear, men/women knit tops, pant and skirt. The main production processes are listed as follows: Cutting, Sewing,
Pressing, Trimming, Inspection and Packing. The factory's current production capacity is about 52,000 pieces per month. The factory’s current customers are: Wal-Mart 80% and other 20%.
In accordance with Wal-Mart FCCA audit requirements, no critical issue was found. How ever some
Some minor issues were found as below:
It was noted at On-site lab section “The facility did not conduct in-house shrinkage/wash tests. However, the shrinkage/wash testing process was done by its parent company in Taiwan.”
It was noted at sample room that no CAD or plotter system available, facility used manual method by skilled technician to produce pattern and marker. The facility did not conduct any
shrinkage test for each bulks and lots received. It was noted at warehouse that the facility did not conduct onsite fabric inspection for either bulk production or sample garments since the

See Corrective Action Plan (CAP)

Name of Auditor: Sophara Cheng

Date Of Audit: 11/15/2013 (mm/dd/yyyy)

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