Bureau Veritas Consumer Products Services

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Bureau Veritas Consumer Products Services
June 2008 Session 1 10th June Session 2
11th June Session 3 12th June
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TODAYS TOPICS

• Introduction

• Services Provided
• Factory Audit (Technical Audit)
• Social Compliance Audit (COC)
• C-TPAT Security Assessment

• Audit Reporting
• Program Features
• Checklist Overview
• Factory Improvement

• General Booking Flow
• Booking method
• Booking form submit
• Workflow between 3 parties

• QA

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• INTRODUCTION

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Bureau Veritas at a Glance
Broad Geographical Presence

• Created in 1828
• A global leader in conformity assessment services
  in the areas of quality, health and safety,
  environment and social responsibility (QHSE)
• 2007 revenue 2.07bn
• 2007 adjusted operating profit 312m
• More than 850 offices in 140 countries
• Over 33,000 skilled employees
• Eight global businesses providing a complete set
  of services
• Inspection, testing, audit, certification, risk
  management, outsourcing, consulting and training
  services
• Servicing 300,000 customers across a wide range
  of end markets

Africa 5
Americas 16
Asia Pacific Middle East24
France32
Europe 23
Eight Global Businesses
Government Services and International Trade 7
Marine 12
Industry14
Consumer Products 13
Certification 12
Inspection In-Service Verification13
Construction19
HSE10
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Extensive Geographic Footprint

• Americas
• 140 offices, including 26 laboratories
• 5,700 staff

• Europe (excl. France)
• 290 offices, including 41 laboratories
• 8,600 staff

• France
• 175 offices, including 12 laboratories
• 7,200 staff

• Asia Middle East
• 190 offices, including 58 laboratories
• 10,500 staff

• Africa
• 55 offices, including 9 laboratories
• 1,000 staff

Global network comprising more than 850 locations
across 140 countries
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CONSUMER PRODUCTS SERVICES DIVISION

• World-leading concept-to-consumer quality
  assurance and compliance services provider
  committed to meeting your need for quality,
  speed-to-market, profitability and brand
  protection throughout your supply chain
• Services for a wide range of consumer products
• Testing and evaluations for quality, safety and
  regulatory compliance
• Product quality inspections, factory and social
  audits
• Locations in 40 countries with over 7,000
  employees with over 30 years experience in the
  consumer products industry

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BVCPS GLOBAL NETWORK
Germany
Poland
United Kingdom(3 labs)
Canada
China Guangzhou Hangzhou Hong Kong Nanjing Ningbo
Panyu Shanghai Shenzhen Wenzhou Qingdao Xiamen
Ukraine
France
Pakistan
Korea
USA
Portugal
Romania
China
Turkey
Japan
Spain
Italy
Morocco
Israel
Taiwan
Egypt
India
Honduras
Mexico
Philippines
Thailand
Guatemala
Saudi Arabia
Bangladesh
Vietnam
Singapore Malaysia
Cambodia
Sri Lanka
Panama
Brazil
Indonesia
Madagascar

• 40 Countries
• More than 7,000 staff
• 75 locations

Mauritius
South Africa
Argentina
Inspection Office Laboratory/Inspection
OfficeSales and Program Office
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BVCPS GREATER CHINA NETWORK
Korea (2)
Pakistan
China
Qingdao
Hangzhou
Nanjing
Japan (2)
Shanghai (5)
Panyu
Ningbo
Xiamen
Wenzhou
Gurgaon
Dongguan
India (5)
Noida
Guangzhou
Taiwan (2)
Shenzhen (2)
Hyderabad
Hong Kong (2)
Bangladesh
Bangalore
Philippines
Vietnam (2)
Thailand
Tirupur
Cambodia
Sri Lanka
Singapore
Indonesia
Inspection Office Laboratory/Inspection
OfficeSales and Program Office
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OUR CLIENTS

• Retailers
• Manufacturers
• Vendors
• Licensee/licensor
• Brands
• Importers
• Distributors
• Buying offices/agents

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OUR CLIENTS

• BVCPS is THE Global Leaderin providing QA
  Services to the retail industry
• 47 of the Top 50 Retailers in North America
• 39 of the Top 50 Global Retailers
• 41 of the Top 50 Brands

• Source National Retail Federation (NRF) 2007
  Top 100 Retailers and Top 100 Global Retailers
• Source American Apparel Footwear
  Association 2007 Top 50 Brands

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OUR CORE SERVICES QA HELPING THROUGHOUT THE
SUPPLY CHAIN
Consumer Assess Consumer Receptivity Next
Steps
Concept/Design
Manufacturing Assure Product Meets Specifications
Wholesale/Retail
Sourcing/Material Verify Readiness for
Production
Develop Product, Manage Risk and Reduce Time to
Market
Benchmark Product Success Confirm Ongoing
Compliance

• In-Production, During Final Random
  Inspections
• Test For
• --Regulatory Compliance
• --Performance
• --Construction
• --Packaging
• --Specialized Product Requirements

• Risk Assessments
• Design Evaluations
• Identification of Regulations Standards
• Quality Assurance Program Development
• Technical Training
• Specification Development

• Consumer Return Evaluations
• Consumer Focus Groups
• Sensory Panels
• Failure Analysis
• Recall Support

• Factory Audits
• Social Accountability Audits
• Incoming Quality Control Inspections
• Pre-Production Testing of Materials

• Compliance Testing
• Comparison Testing
• Product Line Review
• On-Going Technical Training

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CURRENT QA SERVICE OFFERINGS

• Testing Consulting
• Toys, Premiums Juvenile Products
• Textiles
• Health, Beauty, Household Products
• Food
• Hardlines
• Electrical
• Heavy Metals
• Household Appliances Goods

• Quality Assurance Evaluation
• Product Development
• Specification Development
• Vendor Selection
• Factory Assessment
• In Process QA/QC
• Engineering On-Site Services
• Training
• Risk Analysis Hazard Reduction

• Inspections
• Sample Collections
• Loading/Unloading Supervision
• Preproduction/Initial/DuPro
• Final Random Inspections
• 100 Inspections (Sorting)
• Production Status Monitoring
• Damage Surveying

• Auditing
• Sanitation Audit
• Factory Audit
• Production Capacity Audit
• Quality System Audit
• Code of Conduct

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• SERVICES PROVIDED FACTORY AUDIT

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FACTORY AUDIT

• SCOPE
• A standardized on site audit checklist of a
  facility's Quality Management System, and
  practices against safety legality requirement
  defined by BV
• Quality Management Standard (QMS)
• Good Manufacturing Practice (GMP)
• Product Control
• Process Control

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FACTORY AUDIT

• Features
• An Industrial - oriented system for different
  manufacturing types which can present the audit
  result in a simple and analytical approach for
  manufacturers to initialize the corrective and
  preventative action plan as a continuous
  improvement.
• Quality Assurance Approach
• Complement other Quality Management Systems e.g.
  ISO9001, GSCP, HACCP
• Customer confident
• Our knowledge of relevant in various industries
  Qualified local auditors with different
  industrial background
• Ability to assist clients with Program
  Development Set-up
• Demonstrate due-diligence in the event of being
  challenged

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• SERVICES PROVIDED
• SOCIAL COMPLIANCE AUDIT

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SOCIAL COMPLIANCE AUDIT

• SCOPE
• A systematic on site audit of a facility's Social
  Ethical Management System and practices against
  regulations standards defined by BV and/or the
  client covering

1. Child Labour
2. Forced Labour
3. Health Safety
4. Freedom of Association Collective Bargaining
5. Non-discrimination
6. Disciplinary Practices
7. Harassment or Abuse

1. Compensation Benefits
2. Hours of Work
3. Environmental Practices
4. Home working
5. Management systems, monitoring documentation
6. Legal Right to Work

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SOCIAL COMPLIANCE AUDIT
Features

• Proven ability to manage programs for retailers
  brands.
• Our knowledge of relevant labor laws Qualified
  local auditors
• Ability to assist clients with Program
  Development Set-up
• By Using BV you can have confidence in that you
  can
• Protect brand image accountability.
• Demonstrate due-diligence in the event of being
  challenged
• Demonstrate Social compliance to stakeholders
• Doing the right thing for society, consumers,
  employees shareholders

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• SERVICES PROVIDED
• C-TPAT SECURITY ASSESSMENT

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C-TPAT SECURITY ASSESSMENT

• SCOPS
• Physical Security
• Physical Access control
• Container Security
• Procedural Security
• Personnel Security
• Information Technology security
• Security Training Threat Awareness

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C-TPAT SECURITY ASSESSMENT

• BENEFITS
• Allows importers to demonstrate compliance with
  C-TPAT Guidelines
• Fast lane cargo processing into US
• Risk mitigation against unexpected security risk
  delays
• Brand Protection - A secure supply chain
• Competitive advantage
• Shortening time to market
• Minimise supply delays Increase stock turns

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• AUDIT REPORTING
• Program Features
• Checklist Overview
• Factory Improvement

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AUDIT REPORTING Program Features

• SUPPORTED WITH A LOGICAL SCORING SYSTEM
• Numbering Systems
• Compliance Determination
• Question Risk Weighting Levels
• Section Weighting Factors
• Site Compliance
• Improvement Plan and Monitoring Frequency

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AUDIT REPORTING Program Features

• BENEFITS
• The BV automated Factory Assessment scorecard
  risk based approach enable the following benefits
• Manage a large number of programs with a
  paperless system
• Benchmarking and logical decisions base on score
  color rating
• Reduce time in assessing suppliers and analyzing
  data
• Facilitates continuous improvement quality,
  cost time to market
• Manages risk and brand equity by focusing on the
  critical issues
• Simplified reporting with score, colour, graphics
  corrective actions
• Able to quickly identify criticalities
• Allows ranking of your suppliers
• Able to measure the improvement of your supplier
  base over time

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AUDIT REPORTING Program Features
IMPROVEMENT PLAN FOLLOW-UP FREQUENCY
SUPPLIER RISK RECOMMENDED FOLLOW-UP OR MONITORING FREQUENCY
GREEN Annual audit recommended at 12 months
MINOR On-site follow-up audit recommended at 6 months to evaluate previous non-compliance issues
MAJOR On-site follow-up audit recommended at 90 days to evaluate previous non-compliance issues.
CRITICAL On-site follow-up audit recommended at 60 days to evaluate previous non-compliance issues.
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AUDIT REPORTING Checklist Overview
1st part result overview. Percentage Color
rating and Recommended follow-up visit frequency
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AUDIT REPORTING Checklist Overview
2nd report part Graph of Score per section
Audit Score Overview Chart
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AUDIT REPORTING Checklist Overview

• 2nd report part (contd) Matrix of Degree of
  Compliance per section

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AUDIT REPORTING Checklist Overview
3rd report part List of Nonconformities with
Level of Non-conformance
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AUDIT REPORTING Improvement
CAP Filling of Corrective Action and Target
Completion Date
Target Completion Date filled by factory
Corrective Action Plan filled by factory
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• BOOKING FLOW

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BOOKING FLOW
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• Q A

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