How to Better Prepare EICC and Buyers’ Audit C Y Tam Product Manager SGS Hong Kong Limited

How to Better Prepare EICC and Buyers’ Audit
C Y Tam
Product Manager
SGS Hong Kong Limited
15 July 2011
How to Better Prepare EICC and Buyers’ Audit
1. Know your clients’ required audit type
2. Know the audit criteria
3. Know your gap from conformance
4. Action Plan
5. The Audit
1. Know Your Clients’ Required Audit Type
A company utilizes its own internal auditors to audit 2nd Party EICC
Based Audit
their suppliers or potential suppliers
ƒ Use the EICC process, code and its provisions and tools
A company uses an EICC approved independent 3rd Party EICC
Based Audit
audit firm to audit a supplier or potential supplier or in some cases the company’s own facilities. ƒ Use the EICC process, code and its provisions and tools
3rd Party EICC Audit managed solely by EICC appointed EICC
Validated Audit
Audit Program manager (APM)
ƒ Executed by an EICC approved independent Audit firm
ƒ A validated audit Report (VAR) is quality reviewed and released by the APM
2. Know the Audit Criteria
ƒ EICC Code of Conduct
ƒ Applicable Local Laws and Regulations
ƒ International Standards
ƒ Client Specific Code of Conduct / Requirements
Health &
2. Know the Audit Criteria
Need Expertise in
ƒ CSR / OHS / EMS / Sales / Sourcing / QA
ƒ Maintain and update a legal database
2. Know the Audit Criteria
Pay Attention to all sections of EICC Code
ƒ … declare support for the code and actively pursue conformance to the Code and its standards in accordance with a management system as set forth in the Code.
ƒ … At a minimum, participants shall also require its next tier suppliers to acknowledge and implement the Code.
3. Know the Gap from Conformance
ƒ Self Assessment Questionnaire
ƒ Gap Assessment • Competent employee
• External party
4. Action Plan
Action Plan to Close the Gap
ƒ Establish company policy covers Labor / Ethics / Health & Safety / Environment
ƒ Assign responsible persons ƒ Objective and targets
ƒ Timeline
ƒ Establish action plans
ƒ Implement the plans
ƒ Review the progress
4. Action Plan
External support
ƒ Seminar
ƒ Training ƒ Consultancy
5. The Audit
Before the Audit
ƒ Logistics support
ƒ Discuss the audit plan
ƒ Obtain a document list from audit firm
ƒ Provide auditors with a meeting room with internet and telephone lines 10
5. The Audit
5. The Audit
Opening Meeting
ƒ Management and other involved personnel to attend
ƒ Introduce your company to the audit team
ƒ CSR program organization, goals and performance
5. The Audit
Document Review
ƒ Available at the start of audit:
• Personnel records
• Attendance records, payrolls …
• System documents, procedures, training records …
• Permit, license, certificates …
• Others (refer to document list)…
5. The Audit
Site Visit
ƒ Production areas
ƒ Facilities areas (equipment rooms, wastewater treatment, etc.)
ƒ Office areas
ƒ Material, chemical and waste storage areas
ƒ Distribution Centers / shipping and receiving
ƒ Canteens and kitchens
ƒ Dormitories
5. The Audit
Escorting Site Visit
ƒ Provide an escort to auditor
ƒ Familiar with site operation and factory personnel
ƒ Ensure auditors have access to all facilities
ƒ Not an auditee to answer all question
5. The Audit
Gathering Information from Management
ƒ Ensure key staff members are available:
Site manager(s) Production manager(s) Maintenance staff Environment manager(s) Health & Safety manager(s) Quality manager(s) Human Resources manager(s) On site services staff such as canteen, dormitory supervisors, security staff Finance manager / payroll manager Procurement manager / supply chain manager Onsite medical staff Other personnel (as appropriate) 16
5. The Audit
Gathering Information from Workers
ƒ Formal and information interaction with worker
ƒ About 20‐30 min for each formal interview
ƒ Sample size based on global leading practice
ƒ Group and individual sessions
ƒ Private and confidential
5. The Audit
Closing Meeting
ƒ The same group of auditee personnel to attend
ƒ Provide additional evidence or clarification ƒ Agreement on the findings
ƒ Classification of findings:
• Priority issue • Major non‐compliance • Risk of non conformance • Minor non‐compliance 18
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