Jotun Supplier Audit - SIMPLIFIED - APPROVED

• Supplier

• Supplier or Manufacturer ID

• Site

• Date

  Date
• Location
  Address

• Jotun Representatives

• Supplier Representatives

• 0.1- Has the pre-visit been reviewed?

  Yes

  No

  N/A

• Pre-Visit Document

  Media

• 0.1 - Has the last inspection been reviewed?

  Yes

  No

  N/A

• 0.2 - Are there no outstanding actions?

  Yes

  No

  N/A

• 1.1 - Is there a procurement procedure in place and being followed through?

  Yes

  No

  N/A

• Procurement Procedure and Process Flow

  Media

• 1.2 - Has the procurement process been well controlled, include of outsourcing suppliers?

  Yes

  No

  N/A

• 1.3 - Has the upstream supplier performance been evaluated ?

  Yes

  No

  N/A

• Performance Evaluation of Existing Supplier

  Media

• 1.4 - Has the receiving material been verified prior to use?

  Yes

  No

  N/A

• 1.5 - Is there any contingency plan to ensure the security of supply?

  Yes

  No

  N/A

• 1.6 - Has the company communicate HSE/ILO/Fraud/Bribery/other policies to suppliers?

  Yes

  No

  N/A

• Evidence/ Record of communication between company and supplier about HSE/ILO/Fraud/Bribery/ other policies

  Media

• Scoring
  1 Poor: Do not have any document to prove that the procurement process is under control and no verification of suppliers following the required standards.
  2 Weak: Have some related documents but insufficient to show that the procurement process is under good control.
  3 Average: Have documents to show that the procurement process is followed and encourages the supplier to follow the standards.
  4 Good: Good documentation system to control the procurement and has prove to show that suppliers are encouraged to follow the required standards.
  5 Excellent: Perfect controlling system which includes the procurement system and has proof to show strong encouragement to his suppliers to follow all related standards.
  

• Evaluation

• Comment

Documents

• Evaluation/ Selection of Potential Supplier Document

  Media

• Approved Supplier List

  Media

• Supplier Audit/ Visit Report

  Media

• Existing Contract and tender (including outsource)

  Media

• Raw Material TDS

  Media

• Raw Material SDS

  Media

• Raw Material CoA

  Media

• 2.1 - Total number of manufacturing sites

• 2.2 - Maximum production capacity annually

• 2.3 - Utilization of production capacity currently

• 2.4 - Alternative sites that can supply the same grade to Jotun if regular sites fail to deliver

• 2.5 - Other value adding contingency plans or services

  Yes

  No

  N/A

• Evidence of Contingency Plan

  Media

• Photo of Production facilities

  Media

• Scoring
  1 Poor: Absolutely not according to expectation of production capacity; has no back-up plan.
  2 Weak: Production capacity is limited and not able to consistency produce as required; has no structured back-up plan.
  3 Average: Just able to meet the required production capacity; has limited back-up plans
  4 Good: Capacity is sufficient to meet the production requirement and has some spare; has structured back-up plan.
  5 Excellent: Capacity is able to meet requirement and has sufficient spare to cater for emergency usage; has very structured back-up plan.
  

• Evaluation

• Comment

• 3.1 - Number of warehouses ( internal & external)

• 3.2 - Total capacity and current utilization of Raw Materials warehouse

• 3.3 - Total capacity and current utilization(%) of Finished Goods warehouse

• 3.4 - Stock days for Raw Materials Inventory

• 3.5 - Stock days for Finished Goods Inventory

• 3.6 - Is the warehouse well organised?

  Yes

  No

  N/A

• 3.7 - Is the transportation capacity able to meet Jotun needs?

  Yes

  No

  N/A

• 3.8 - Does the company practice good inventory management (e.g. FIFO)?

  Yes

  No

  N/A

• Current Raw Material and Finished Goods stock list/ Inventory

  Media

• 3.9 - Is there a structured ERP system for inventory planning and management? (E.g. SAP, IFS)

  Yes

  No

  N/A

• 3.10 - Does the supplier Identify life cycle aspects (ISO 14 000) for the raw materials they are using ?

  Yes

  No

  N/A

• Photo of Warehouse and Equipment (e.g. Forklift, VNA etc)

  Media

• Scoring
  1 Poor: Lack of supply chain management in the company; No proper warehouse and other related facility.
  2 Weak: Limited existence of supply chain management; Warehouse is not well organized and arranged.
  3 Average: Has some procedure in place on supply chain management; Warehouse is fairly well organized.
  4 Good: Good procedure set up for supply chain management; Warehouse facility is good with existing inventory planning.
  5 Excellent: Very good set-up of supply management, both in procedure and facility with structured ERP
  system for inventory management and planning (e.g. SAP, IFS)

• Evaluation

• Comment

• 4.1 - Number of days typical

• 4.1.1 Order Days

• 4.1.2 Manufacturing Days

• 4.1.3 Delivery Days

• 4.2 - Number of Days under Urgent Demand

• Scoring
  1 Poor: Lead times are excessive as compared to other vendors.
  2 Weak: Lead times are not excessive but not considered to be competitive as compared to other vendors.
  3 Average: Lead times are average for the needs.
  4 Good: Leads times are good and would give us a competitive advantage.
  5 Excellent: Leads are excellent and vendor is proactive to work with the needs and to improve on them.
  

• Evaluation

• Comment

• 5.1 - Quality Management System ISO9000 series accreditation

  Yes

  No

  N/A

• ISO 9000 certificate

  Media

• 5.2 - Environmental Management System ISO14000 series accreditation

  Yes

  No

  N/A

• ISO 14000 certificate

  Media

• 5.3 - Occupational Health and Safety System OHSAS18001 accreditation

  Yes

  No

  N/A

• OSHAS 18001 certificate

  Media

• 5.4 - Has the QHSE system been well maintained according to internal/external audit reports?

  Yes

  No

  N/A

• Internal Audit Report

  Media

• External Audit Report

  Media

• Audit Follow Up Action/ Improvement Program

  Media

• 5.5 - Are there any business sustainability plans?

  Yes

  No

  N/A

• 5.6 - Other certifications (if available) or in-house systems (5S, lean, 6 sigma)

  Yes

  No

  N/A

• Other certificates

  Yes

  No

  N/A

• Scoring
  1 Poor: Has no accreditation of both Quality and HSE and no in-house control for these areas.
  2 Weak: Has no Accreditation of both Quality and HSE but some kind of in-house control for these areas.
  3 Average: Has the Quality Accreditation but no prove for track record of audit.
  4 Good: Has the Quality and HSE Accreditation; Has track record of audit and contingency plan relating to HSE.
  5 Excellent: Has a complete Quality and HSE Accreditation; Good track record of audit and has a good contingency plan relating to HSE.
  

• Evaluation

• Comment

6.1 Technical Support

• 6.1.1 - QC staff count (total & per shift)

• 6.1.2 - Are there any existing R&D center? Number and locations.

• 6.1.3 - R&D staff count

• 6.1.4 - Value spent per annum (USD) for R&D

• 6.1.5 - Recent innovation focuses / success stories

• 6.1.6 - How does the company manage the competency of their technical staffs?

6.2 Quality Control

• 6.2.1 - Is there any Incoming QC? How do they ensure the incoming materials are fit to use?

  Yes

  No

  N/A

• Incoming QC record

  Media

• 6.2.2 - Are there any In-line or other process QC?

  Yes

  No

  N/A

• In-line QC record

  Media

• 6.2.3 - Is there any final QC?

  Yes

  No

  N/A

• Finished Goods QC record

  Media

• 6.2.4 - Is the traceability of record, RM and FG well-controlled?

  Yes

  No

  N/A

• Quality Control Flow Chart

  Media

• Test Specification

  Media

• Product SDS

  Media

• Product TDS

  Media

• Product CoA

  Media

• List of Equipment Used

  Media

• Calibration records for Equipments

  Media

6.3 Non Conformance Control

• 6.3.1 - Is the control process of non-conforming RM/FG being well controlled?

  Yes

  No

  N/A

• Non Conformance Handling Procedure

  Media

• Non Conformance Record

  Media

• 6.3.2 - Are non-conforming products well-segregated with labels?

  Yes

  No

  N/A

• Photo of Laboratory Facilities and Equipment

  Media

• Scoring
  1 Poor: There is no quality control in the factory.
  2 Weak: There is limited quality control and testing facility to support the activity.
  3 Average: There is reasonable level of quality control and testing facility to support the key activities in the process.
  4 Good: The quality control is comprehensive and has some improvement/development activities.
  5 Excellent: The quality control is comprehensive and the focus on research and development is good.
  

• Evaluation

• Comment

7.1 - Fire Prevention

• 7.1.1 - Safety briefing is provided to all visitors

  Yes

  No

  N/A

• 7.1.2 - Evacuation plan is displayed and understood by all employees

  Yes

  No

  N/A

• 7.1.3 - Fire fighting system (fire alarm, fire extinguisher, fire hose etc) is functioning and regularly serviced?

  Yes

  No

  N/A

• Fire Fighting System Control Track Record

  Media

• List of Fire Fighting Equipment

  Media

• Fire Fighting System Control Track Record

  Media

• List of Fire Fighting Equipment

  Media

• 7.3.4 - Fire fighting system is clear of obstructions

  Yes

  No

  N/A

• 7.1.5 - Are fire extinguishers installed and positioned according to local law/ regulation?”

  Yes

  No

  N/A

• 7.1.6 - Emergency exit light and indicator signs are operable and clear

  Yes

  No

  N/A

7.2 Job Safety

• 7.2.1 - There is job hazard analysis and control measure in place

  Yes

  No

  N/A

• 7.2.2 - The infrastructure is in good condition (even and uncluttered floor, no potential falling bricks or corroded pipeline etc)

  Yes

  No

  N/A

• 7.2.3 - The light fittings (brightness) are in good condition

  Yes

  No

  N/A

• 7.2.4 - The electrical installation is in good condition (No broken plugs, sockets or switches, frayed or damaged leads)

  Yes

  No

  N/A

• 7.2.5 - Proper and sufficient PPE are provided to employee

  Yes

  No

  N/A

• 7.2.6 - The employee make use of the PPE correctly

  Yes

  No

  N/A

• 7.2.7 - All containers labelled correctly with the right hazard codes? Decanted chemicals also labelled

  Yes

  No

  N/A

• 7.2.8 - All SDS can be reached within a short distance

  Yes

  No

  N/A

• 7.2.9 - There are no other unsafe acts spotted during the audit

  Yes

  No

  N/A

• 7.2.10 - There are no other unsafe conditions spotted during the audited<br>

  Yes

  No

  N/A

7.3 First Aid

• 7.3.1 There is sufficient first aid equipment to serve the company's needs

  Yes

  No

  N/A

• List of First Aid Equipment

  Media

• List of First Aid Equipment

  Media

• 7.3.2 - There is no consumable or expired medicine inside the first aid box

  Yes

  No

  N/A

• First Aid Box Control Track Record

  Media

• First Aid Box Control Track Record

  Media

• 7.3.3 - There are trained first aiders to serve the company's needs

  Yes

  No

  N/A

• 7.3.4 - The employees are aware of first aid processes and the location of first aid equipment

  Yes

  No

  N/A

• 7.3.5 - The eye washes and showers are easily accessed

  Yes

  No

  N/A

7.4 Awareness & Compliance

• 7.4.1 - There are health & safety monitoring programs (noise, LEV monitoring etc)

  Yes

  No

  N/A

• 7.4.2 - The monitored result are within tolerance levels

  Yes

  No

  N/A

• 7.4.3 - There are regular safety training/ campaigns provided to employee

  Yes

  No

  N/A

• First Aid Training

  Media

• Fire Drill

  Media

• 7.4.4 - The safety information is communicated with employees

  Yes

  No

  N/A

• 7.4.5 - There are medical benefits provided to employees

  Yes

  No

  N/A

• Staff Medical Benefits in Employee Handbook/ Contract

  Media

• 7.4.6 - There is proper record of accidents and incidents

  Yes

  No

  N/A

• Near Miss Record

  Media

• Major Accident Record

  Media

• Death Record

  Media

• 7.4.7 - The number of accidents are within manageable control and corrective actions are conducted to reduce the risks<br>

  Yes

  No

  N/A

• Scoring
  1 Poor: Total lack of Health & Safety management, training and Health & Safety related equipment in the facility. Employees are not aware on the importance of Health & Safety and management has lack of focus.
  2 Weak: Limited Health & Safety Management, training and Health & Safety related equipment in the facility. No record of Health & Safety (accident/incident) and limited focus by management.
  3 Average: Has some procedure on Health & Safety management but insufficient training and HSE equipment. Mainly dependent on local laws to dictate their Health & Safety process.
  4 Good: Has full awareness of Health & Safety and fully compliant with laws and regulations. Provide good training to employees and sufficient focus from management.
  5 Excellent: Put extremely high priority on safety and surpass the requirement dictate by local laws. Conducts Health & Safety awareness program regularly to continuous elevate safety record.
  

• Evaluation

• Comment

• 8.1 - The company has identified environmental impacts and aspects (e.g. sewage, noise, smoke, waste etc)

  Yes

  No

  N/A

• Environment Impacts and Aspects

  Media

• 8.2 - The company has established documented procedures to control situations that could lead to deviations

  Yes

  No

  N/A

• 8.3 - There is an established crisis plan if get substantial deviation

  Yes

  No

  N/A

• 8.4 - There are programs or campaigns conducted to achieve company environmental objectives

  Yes

  No

  N/A

• 8.5 - The company is moving towards green steps in reducing VOC emissions, hazardous materials usage, energy consumption, carbon footprint, waste etc.

  Yes

  No

  N/A

• 8.6 - The company has communicated environmental requirements to external parties (e.g. Suppliers, customers, subcontractors)

  Yes

  No

  N/A

• 8.7 - There are no acts or conditions that may be harmful to the environment found during the audit

  Yes

  No

  N/A

• 8.8 - All type of waste are segregated

  Yes

  No

  N/A

• 8.9 - Empty chemical bottles/containers are disposed according to environmental requirements (eg prescribed waste)

  Yes

  No

  N/A

• Scheduled Waste Consignment Note

  Media

• 8.10 - Are spill kits available & regularly maintained? Is tamper proof seal in place?

  Yes

  No

  N/A

• 8.11 - Generally, the environment of the company is clean and tidy

  Yes

  No

  N/A

• Scoring
  1 Poor: Has no focus on environment and no in-house control for these areas.
  2 Weak: Has limited focus on environment and some kind of in-house control for these areas.
  3 Average: Has some focus on environment and has done an analysis but no crisis plan.
  4 Good: Has focus on environment, a crisis plan and communicate requirements to suppliers.
  5 Excellent: Have high focus on environment, performed an analysis and followed up with procedures and crisis plan. Implemented requirements and audits on their suppliers.

• Evaluation

• Comment

9.1 Labor

• 9.1.1 - No child labor and/or forced labor spotted during the audit

  Yes

  No

  N/A

• Employee Age Record

  Media

• Employee Age Record

  Media

• 9.1.2 - There is an employee handbook or other tools to communicate company policies

  Yes

  No

  N/A

• 9.1.3 - The employees are happy with the staff benefits (check during interview)

  Yes

  No

  N/A

• 9.1.4 - The employees are allowed or given channels to voice their opinions to management

  Yes

  No

  N/A

• 9.1.5 - The company provides training for staff to perform their job.

  Yes

  No

  N/A

• Training Program and Record

  Media

9.2 Working hours

• 9.2.1 - The working hour of employees fully complies with the permitted hours based on local regulation

  Yes

  No

  N/A

• Employee Handbook/ Contract/ Trade Union - Working Hour

  Media

• Attendance Record

  Media

• Employee Handbook - Working Hour

  Media

• Attendance Record

  Media

• 9.2.2 - The overtime of all workers fully complies with the permitted hours based on local regulations

  Yes

  No

  N/A

• Overtime Record

  Media

• Overtime Record

  Media

9.3 Wages and Compensation

• 9.3.1 - The basic wages of all employees complies with the local regulations of minimum salaries

  Yes

  No

  N/A

• Offer Letter - Wage and Compensation

  Media

• Salary Slip

  Media

• Offer Letter - Wage and Compensation

  Media

• Salary Slip

  Media

• 9.3.2 - The overtime compensation of all workers complies with the local regulation of minimum salary

  Yes

  No

  N/A

9.4 Discrimination

• 9.4.1 - There is free of discrimination of sex, race, religion, age, disability, sexual orientation etc spotted during the audit

  Yes

  No

  N/A

• Anti-Discrimination Written Policy

  Media

• Anti-Discrimination Written Policy

  Media

• 9.4.2 - The company has internal policies or campaign against bullying in workplace

  Yes

  No

  N/A

9.5 Fraud/Bribery

• 9.5.1 - There are company policies or campaign encouraging employees to support anti-corruption

  Yes

  No

  N/A

• 9.5.2 - There is an agreement signed by employees against bribery

  Yes

  No

  N/A

• Agreement signed against bribery by employees

  Yes

  No

  N/A

• 9.5.3 - Company shares on anti corruption policies with external parties (e.g.customers)

  Yes

  No

  N/A

• 9.5.4 - There are free of bribery issues found during the audit

  Yes

  No

  N/A

9.6 Understanding Laws and Regulations

• 9.6.1 - Company has the necessary permits to run their business.

  Yes

  No

  N/A

• Business Operating License/ Permit

  Media

• Warehouse License

  Media

• Company Tax Registration Certificate

  Media

• Export/Import License

  Media

• 9.6.2 - Factory management team understand laws and regulations

  Yes

  No

  N/A

• 9.6.3 - Factory management shares with and updates employees on their knowledge of laws and regulations

  Yes

  No

  N/A

• 9.6.4 - Factory employees know the laws and regulations and understand employee rights

  Yes

  No

  N/A

9.7 Corporate Social Responsibilities

• 9.7.1 - Can the Supplier confirm that they do not use Conflict Minerals (Tin, Tungsten, Tantalum and Gold from The Democratic Republic of Congo or their neighboring Countries) in their production?

  Yes

  No

  N/A

• 9.7.2 - Company conducts CSR activities regularly

  Yes

  No

  N/A

• Scoring
  1 The company is not following laws and regulations as stipulated by local legislation.
  2 Limited knowledge of factory management on local laws and regulations.
  3 The company understands and follows local laws and regulations.
  4 The company understands and follows local laws and regulations. The company has policies and conducts activity related to human rights and corporate social responsibilities.
  5 The company understands and follows local laws and regulations. The company is advanced in promoting human rights and corporate social responsibilities.

• Evaluation

• Disqualified

  Off

  On

• Comment

• Group Photo

  Media

• Overall Comments

• Special Remarks

• Supplier Audit Result

  PASS

  TEMPORARY PASS

  FAIL

• Proposed follow up audit

  Date