Copyright 2003 Daintily Quality Consulting Co.

Ltd
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Factory Audit Report

Client Name

Confidential

Service No.

DQC-FA-031208

Supplier Name

Confidential

Auditors

Ben Wong

Factory Name

Confidential

Audit date

Dec. 7th - 8th, 2003

Part 1 Factory profile

Item

Finding

Date of foundation

Legal status

Private (China)

Location

No. xx, XXX District, XXXXX City, Zhejiang Province. China

Area

12,000 sq. meter

Number of office staff

18

Number of worker

150

Factory Manager

Mr. Wang

Main products

Smoking sets;

Main market

Europe, America

10 Annual turnover

USD3,000,000

11 Business license

Certificate No.: 3303021001xxx(1/1)

Date of Issue: 21st April. 1997
Expiration: 20th April. 2007

12

Telephone

86-57X-xxxxxxxxx

Fax

86-57X-xxxxxxxxx

Computer

16 pieces

Internet

ADSL connect

Digital camera

2 pieces

Communications infrastructure

Comment

1st, May, 1997

DQC Website: http://www.daintily-qc.com

e-mail: [email protected]

Page 1

 Copyright 2003 Daintily Quality Consulting Co. Ltd

------------------------------------------------------------------------------------------------------------------------------------Related pictures:

Gate of factory

Office building

Office

Sample Room

R & D department

Workshop building

DQC Website: http://www.daintily-qc.com

e-mail: [email protected]

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 Copyright 2003 Daintily Quality Consulting Co. Ltd

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Business license

Tax license

Production line

Workers Dormitory building

Club for workers

Club for workers

DQC Website: http://www.daintily-qc.com

e-mail: [email protected]

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 Copyright 2003 Daintily Quality Consulting Co. Ltd

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Award by local government

Show room

Part 2 Factory Organization Structure and Work Flow Chart

Factory Organization Structure Chart

General Manager

R&D

Die-casting

Production

Polishing

QA/QC

Accounting

Surface-processing

DQC Website: http://www.daintily-qc.com

Sales & Purchase

Administration

Assembly

e-mail: [email protected]

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 Copyright 2003 Daintily Quality Consulting Co. Ltd

------------------------------------------------------------------------------------------------------------------------------------Work Flow Chart

Raw material

Die-casting

Warehouse

Packing

Polishing

Surface-processing

QC

QC

Assembly

Related pictures:

Production process Injecting

Production process - polishing

Production process silk printing

Production process grinding

DQC Website: http://www.daintily-qc.com

e-mail: [email protected]

Page 5

 Copyright 2003 Daintily Quality Consulting Co. Ltd

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Production process QC checking

Production process packing

Production process Oven

Production process polishing

Raw material QC

QC on line

DQC Website: http://www.daintily-qc.com

e-mail: [email protected]

Page 6

 Copyright 2003 Daintily Quality Consulting Co. Ltd

------------------------------------------------------------------------------------------------------------------------------------Part 3 Factory Facilities / Machinery Conditions
Item
1

Main machines for production

Finding

Comment

Please see the following pictures

Cutting machine (3pcs)

Die-casting machine (5 pcs)

Drill press (4 pcs)

DQC Website: http://www.daintily-qc.com

silk printing Machine (6pcs)

Grinding Machine (17 pcs)

Turret milling machine (1 pc)

e-mail: [email protected]

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Injection machine (4 pcs)

UL welding machine (2 pcs)

Oven line (6 pcs)

leak tester(1 pc)

Warehouse condition
OK

DQC Website: http://www.daintily-qc.com

e-mail: [email protected]

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 Copyright 2003 Daintily Quality Consulting Co. Ltd

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Raw material warehouse

Shipping goods warehouse

3

R & D facilities

People

Education
background

6 persons

University

New Developed Products

Confidential

Public power supply

Connect available

DQC Website: http://www.daintily-qc.com

Main
Duties
R&D, new
production
design

e-mail: [email protected]

Main
facility
Scanner,
drilling
press
& PC

Design and sample

developing

OK

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 Copyright 2003 Daintily Quality Consulting Co. Ltd

------------------------------------------------------------------------------------------------------------------------------------5

OK

Electric Power Generator

2 piece available
6

Drinking Water facility

(Workshop)

Transportation vehicle

There are 1 big

water tank for every
work shop
OK

1 piece 5.0T truck

DQC Website: http://www.daintily-qc.com

e-mail: [email protected]

Ok

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Air conditioning / Ventilation

DQC Website: http://www.daintily-qc.com

Air conditioner in
office and workshop.
The condition of
ventilation
of
workshops
are
good(with
big
windows)
Ok

e-mail: [email protected]

Page 11

 Copyright 2003 Daintily Quality Consulting Co. Ltd

------------------------------------------------------------------------------------------------------------------------------------Part 4 Quality Assurance System & Related Certificates

Item

Finding

Comment

Export license

OK

Quality
records

OK

control

DQC Website: http://www.daintily-qc.com

e-mail: [email protected]

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Operation records

DQC Website: http://www.daintily-qc.com

OK

e-mail: [email protected]

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Quality
system
management

GB/T19001-2000 idt ISO9001:2000

Registration
05306Q10232ROS

No.:

Issue Date: 2006 1 26

Expiry Date: 2009 1 25
Issued by BeiJing
Certification centre.

DQC Website: http://www.daintily-qc.com

e-mail: [email protected]

NGV

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 Copyright 2003 Daintily Quality Consulting Co. Ltd

------------------------------------------------------------------------------------------------------------------------------------5

Training course

OK

Certificate by local government

DQC Website: http://www.daintily-qc.com

e-mail: [email protected]

Page 15

 Copyright 2003 Daintily Quality Consulting Co. Ltd

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Inspection manual
& operations manual

DQC Website: http://www.daintily-qc.com

OK

e-mail: [email protected]

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Incoming
QC report

material

OK

Operation instruction
cards on line

OK

DQC Website: http://www.daintily-qc.com

e-mail: [email protected]

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QA testing room &

equipments

DQC Website: http://www.daintily-qc.com

Ok

e-mail: [email protected]

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 Copyright 2003 Daintily Quality Consulting Co. Ltd

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DQC Website: http://www.daintily-qc.com

e-mail: [email protected]

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QA test equipment calibrated by third-party

company
10

IQC record

11

QC on production
line

DQC Website: http://www.daintily-qc.com

OK

e-mail: [email protected]

Page 20

 Copyright 2003 Daintily Quality Consulting Co. Ltd

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Part 5 Social Accountability

Item

Finding

Comment

Child labor

Conform to PRC Labor Law, Chapter 2, Clause 15

Checked the copy of ID card/

employee contract, Found all
employees more than 16 years old.

Forced labor

Conform to PRC Labor Law, Chapter 3, Clause 32

OK

Employ contract

DQC Website: http://www.daintily-qc.com

OK

e-mail: [email protected]

Page 21

 Copyright 2003 Daintily Quality Consulting Co. Ltd

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Base
Salary
and
compensation

Conformed to PRC Labor Law, Chapter 4, Clause

44

Base wage: RMB 750

Floating Wage by finish quantity
productions

Local minimum wages: RMB 750

Legal requirements:
Weekdays OT: 150%
Sat. & Sunday OT: 200%
Public Holiday OT: 300%

Actual pay =
RMB 760 to RMB2540 per month
Check the payroll of Sep.2006 ,
According to Chapter 4, Clause 44
of the Labor Law of the Peoples
Republic of China, the wages paid
by the factory shall not be less than
the local minimum wage standard :
RMB750/month

Overtime
allowances
compensation

Factory did not pay overtime

compensation for all employees who
overtime worked on weekday and
rest day. Only paid hourly-rate

Working Hours

Conformed to PRC labor law, Chapter 4, Clause

36
8 hours/ day, maximum 44 hours /week

Normal: 8 hours / day,

AM. 8:00 12:00
PM. 13:00 17:00
5 days/week, 40 hours /week
.
According to PRC labor law,
Chapter 4, Clause 36, 8 hours/ day,
maximum 44 hours /week

Overtime
Regulations

2 hours / day, Conformed to local labor law, not

exceed 3 hours / day, 36 hours /month.

Normal OT at the factory:

18:00 20:00
According to Article 38 of the Labor
Law of the Peoples Republic of
China, factory shall make sure that
the employee can take at least one
rest day each week

Non-Discriminat
ion

No Compliance finding

OK

Disciplinary
Practices

No Compliance finding

OK

DQC Website: http://www.daintily-qc.com

e-mail: [email protected]

Page 22

 Copyright 2003 Daintily Quality Consulting Co. Ltd

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Harassment
abuse

&

No Compliance finding

OK

Freedom
association
collection
Bargaining

of
/

No Compliance finding

OK

10

Canteen facility

OK

Clean and sanitary

11

Kitchen facility

OK
Clean and sanitary

DQC Website: http://www.daintily-qc.com

e-mail: [email protected]

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Emergency
medical

13

Dormitory
conditions

Should improvement. They must set

up in every floor of Workshop, only
set up in office and one control
room.

16 persons / room (15m X 3.5 m)

Min.:

3.28 Sq. M / person

OK. Conform to the minimum area

should more 2.0 Sq. m / person

DQC Website: http://www.daintily-qc.com

e-mail: [email protected]

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14

Health & Safety

(Production
Area)

1 Factory provided earplug / mask / goglles to

workers who worked in polishing/ griding section,
but these workers forgot take earplug during audit
date, they promised they got these safe protect
equipments when they joined in the factory.
2 No documentary evidence showed that the
factory has organized fire drill

DQC Website: http://www.daintily-qc.com

e-mail: [email protected]

1, According to Article 77 of Factory

Safety and Health Rules, factory
shall provide {earplugs, goggles,
face mask and helmets} to
employees who are working in the
environment where there is {noise,
strong light, radiation heat and
splashing spark, scraps and chips}.

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 Copyright 2003 Daintily Quality Consulting Co. Ltd

------------------------------------------------------------------------------------------------------------------------------------2, According to Article 5.1.3 of the
Design Standard for Emplacement
of Fire Extinguishers in Buildings
(GBJ4090 Document), portable
fire extinguishers shall be put on
hooks, brackets or cases with the
top not more than 1.5m and the
bottom not less than 0.15m above
the ground.
3, According to Article 16.4 of Fire
Prevention Law of the Peoples
Republic of China, factory shall
organize fire drills to employees
regularly. It is recommended to
conduct at least once a year and
keep relevant records as evidence.
4, According to Article 21 of Fire
Prevention Law of the Peoples
Republic of China, o units or
individuals may damage or divert to
other
purpose,
dismantle
or
inactivate fire control facilities and
equipment without authorization, or
bury and occupy fire hydrants, take
up fire prevention spaces and block
fire control passages.
Areas
around fire extinguishers or fire
alarms, evacuation passages and/or
fire exits shall be kept clear at all
times to facilitate easy access.

Related pictures:

DQC Website: http://www.daintily-qc.com

e-mail: [email protected]

Page 26

 Copyright 2003 Daintily Quality Consulting Co. Ltd

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Worker in assembly section

Worker in flame checking section

injection section

Fire Hydrant

DQC Website: http://www.daintily-qc.com

drilling section

Fire Extinguisher

e-mail: [email protected]

Page 27

 Copyright 2003 Daintily Quality Consulting Co. Ltd

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Gas filling section

Explode-proof light in warehouse and filling Warehouse

Fire Extinguisher hanging on every floor

Exit indicator

Part 6 Special Products Requirements from Client

Products sample

lighters

Production Capacity for this product

20000 pcs / day

Main material

Metal(zinc)

Evaluated ability of production for Pending on clients PO

the client

DQC Website: http://www.daintily-qc.com

e-mail: [email protected]

Page 28

 Copyright 2003 Daintily Quality Consulting Co. Ltd

------------------------------------------------------------------------------------------------------------------------------------Related pictures:

DQC Website: http://www.daintily-qc.com

e-mail: [email protected]

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 Copyright 2003 Daintily Quality Consulting Co. Ltd

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DQC Website: http://www.daintily-qc.com

e-mail: [email protected]

Page 30

 Copyright 2003 Daintily Quality Consulting Co. Ltd

------------------------------------------------------------------------------------------------------------------------------------Part 7 Synopsis of major facts and problems found
1.

2.

3.
4.

The first aid kit should be set up at every floor in workshop. We found 1 aid kit put into a control room,
only some of drugs for sunstroke prevention, some of hemostasia tape, They must set up the first aid
kit in every floor of Workshop, Need improvement;
Found some workers did not take mask, earplug and goglles during work in polishing, grinding
sections, the management should remind these workers take mask & earplug during working when
they forget take mask, earplug or goglles. Need improvement;
No documentary evidence showed that the factory has organized fire drill, the factory should keep all
records after fire drill.
Factory did not get a permit of discharge waste air from the local environment protection department.
According to Article 28 of the Law of the Peoples Republic of China on Prevention and Treatment of
Atmospheric Pollution: Strict restrictions shall be imposed on the emission of exhaust gas and dusts
containing toxic substances into the atmosphere. The emission that has to be done should receive
purification treatment to reach the mandatory criteria, factory should improve it;

DQC Website: http://www.daintily-qc.com

e-mail: [email protected]

Page 31