New Supplier Audit Check Sheet

Title

Site conducted
Conducted on
Prepared by
Location

1． Key corporate policy/principle/philosophy and organization chart

1.1 Does the Supplier have a corporate philosophy (or policy, mission statement, credo, or the like)?
1.2 Is it expressed in writing?
1.3 Does the Supplier have an organization chart in a written form?
1.4 Does the Supplier have an experience of cross- organizational activity in the fields of R&D, problem solving, etc.?
1.5 How is the Supplier’s financial condition (ordinary profit ratio/margin)? %

2． Labor management

2.1 Do the Supplier’s top management and other supervisors/managers have issues awareness (sensitivity about various issues and problems) and high motivation for improvement?
2.2 Do the Supplier’s employees have issues awareness and high motivation for improvement?
2.3 Does the Supplier prohibit forced labor, slave labor, and other labor under wrongful constraint or confinement (including constraint by financial obligation)?
2.4 Does the Supplier prohibit sexual harassment, abuse, physical punishment, mental or physical extortion, use of abusive language, and intimidation?
2.5 Does the Supplier prohibit employment of children under the minimum working age and labor of children or young people in a way that impairs their development?
2.6 Does the Supplier strive to eliminate unfair discrimination in recruitment and employment to ensure equal opportunities and fair treatment of employees?
2.7 Are employees’ wages calculated accurately according to legal requirements and their working hours (both normal and overtime) and paid properly to all employees?
2.8 Does the Supplier prohibit wrongful deduction from or reduction of wages for a punitive reason?
2.9 Are employees’ total weekly working hours kept within 60 hours or the statutory limit, except in cases of emergency or crisis?

3． Work environment <safety, health/hygiene and fire-prevention management>

3.1 Does the Supplier have a fire-prevention organization chart?
3.2 Is the workplace kept neat and tidy?
3.3 Does the Supplier conduct risk assessment about their workplace safety and use appropriate design, technology and management tools to ensure safety?
3.4 Is the Supplier well aware of possible circumstances that may occur in the workplace where people may get in touch with harmful pests/vermin or chemical substances? Has the Supplier taken appropriate measures against them?
3.5 Is the Supplier well aware of the status of occupational accidents and diseases in their company? Has the Supplier taken appropriate measures against them?
3.6 Has the Supplier identified physically burdensome tasks and taken appropriate control measures to prevent accidents and diseases?
3.7 Are safety and hygiene ensured appropriately at company- provided facilities used as employees’ living space (e.g. dormitory, cafeteria/dining room, toilet, etc.)?
3.8 Does the Supplier conduct appropriate health management for all employees?
3.9 Does the Supplier conduct fire drills at least once a year?

4． Equipment management & maintenance

4.1 How often does the Supplier conduct maintenance and inspection of equipment?
4.2 How long is the useful life of the equipment that uses items ordered by HRS?
4.3 How much is the Supplier’s annual capital investment amount?
4.4 Has the Supplier taken safety measures for equipment?

5． Process control

5.1 Does the Supplier have dedicated staff in charge of process control?
5.2 Is the Supplier aware of their production capacity accurately?
5.3 Does the Supplier have a systematic mechanism, rule or procedure to manage their delivery performance?
5.4 How is the Supplier’s delayed delivery occurrence rate? %
5.5 Does the Supplier conduct cause analysis of delayed deliveries and conduct delivery planning every month?

6． Inspection management

6.1 Does the Supplier have dedicated staff in charge of shipping inspection?
6.2 Has the Supplier identified inspection methods specifically? (for first article/in-process/final product inspections)
6.3 Has the inspection been conducted in line with the inspection standards, etc.?
6.4 Does the Supplier keep inspection records?
6.5 Does the Supplier conduct periodic calibration of test/inspection instruments and tools?
6.6 Does the Supplier interpret dimensions in drawings as “to maintain those dimensions throughout the whole area”?
6.7 Does the Supplier believe that differences between dimensions in drawings and those of actual products, parts, materials, etc. must be kept within the “dimensional tolerance”?
6.8 Does the Supplier possess measuring instrument(s) whose accuracy and precision meet Hirose’s requirements?

7． Quality control/management system

7.1 Does the Supplier have a quality control policy endorsed by the top management?
7.2 Is that policy communicated to employees?
7.3 Does the Supplier have a QA schematic diagram?
7.4 In-process failure rate
7.5 Does the Supplier conduct analysis of in-process failures and take measures against them?
7.6 Does the Supplier maintain traceability for both material lots and manufacturing lots?
7.7 Does the Supplier have necessary SOPs in place?
7.8 Does the Supplier record and maintain inspection and manufacturing data appropriately?
7.9 Is the Supplier willing to allow Hirose and Hirose’s customers to visit and enter their manufacturing site and<br>other processes in their factory?

8． Administration of drawings

8.1 Does the Supplier have staff in charge of administering/controlling drawings?
8.2 Is the management method for the drawings maintained?

9． Cost management

9.1 How are the Supplier’s standard prices in comparison with their competitors?
9.2 Does the Supplier have well-organized framework to promote VE, VA and IE and make improvement?

10． Technical level

10.1 Does the Supplier have employee education & training programs, such as national qualification acquisition program, correspondence learning course, etc.?
10.2 Does the Supplier have specific technical/technological expertise and capability?
10.3 Does the Supplier have the ability to develop software? (if applicable)

11． Environmental preservation/sustainability activities

11.1 Has the Supplier already obtained ISO 14001 certification accredited by an external agency?
11.2 Does the Supplier have a plan to obtain ISO 14001 certification accredited by an external agency?
11.3 Does the Supplier practice “green procurement”?
11.4 Does the Supplier have a plan/program/scheme to promote green procurement?

The following items (11.5 to 11.14) need not be answered if either of 11.1 or 11.2 was answered “Yes”.

11.5 Does the Supplier have an environmental management or governance organization within the company, such as environmental action committee?
11.6 Are positioning (or missions/roles) and functions of that organization defined clearly?
11.7 Are the Supplier’s top management members involved in that organization?
11.8 Has the Supplier received any administrative direction or punishment from a supervisory government authority within the past five years?
11.9 Does the Supplier conduct educational or awareness activity for employees about environmental preservation/sustainability?
11.10 Does the Supplier conduct energy-saving promotion activity?
11.11 Does the Supplier conduct energy-saving promotion activity?
11.12 Is the Supplier actively working on reduction and recycle of wastes?
11.13 Is the Supplier considering adoption and utilization of eco-friendly materials?
11.14 When we request cooperation with our sustainability activities (e.g. request to report usage conditions of regulated substances), will the Supplier respond promptly?

12． Business continuity management (BCM)

12.1 Does the Supplier have a documented Business Continuity Plan (BCP) to ensure continuity of their business activities in case of emergency?
12.2 Does the Supplier have a documented Business Continuity Plan (BCP) to ensure continuity of their business activities in case of emergency?
12.3 Does the Supplier maintain an emergency contact list that specifies customers, business partners, etc. to be contacted in case of emergency, and update it at least once a year?
12.4 Has the Supplier defined the means and methods of confirming employees’ safety?
12.5 Does the Supplier maintain an emergency contact list that specifies customers, business partners, etc. to be contacted in case of emergency, and update it at least once a year?
12.6 Does the Supplier maintain an emergency contact list that specifies customers, business partners, etc. to be contacted in case of emergency, and update it at least once a year?
12.7 If production equipment is damaged in a disaster, will the Supplier be able to secure necessary equipment to resume production (e.g. by restoring the damaged equipment promptly, by securing necessary equipment at an alternative location, etc.)?
12.8 Does the Supplier maintain an emergency contact list that specifies customers, business partners, etc. to be contacted in case of emergency, and update it at least once a year?
12.9 Does the Supplier have a documented Business Continuity Plan (BCP) to ensure continuity of their business activities in case of emergency?
12.10 Does the Supplier maintain an emergency contact list that specifies customers, business partners, etc. to be contacted in case of emergency, and update it at least once a year?

13． Fair trade and ethics management

13.1 Has the Supplier committed any act that inhibits fair, transparent and free competition?
13.2 Does the Supplier have a practice to provide or receive a gift or entertainment with an aim to gain improper benefit or advantage?
13.3 Does the Supplier have any relationship with antisocial activity or forces?
13.4 Does the Supplier lack respect for intellectual property rights, or has the Supplier infringed any intellectual property right of a third party?

15． Conflict minerals

15.1 If the Supplier has any opportunity to purchase materials that contain a conflict mineral (gold, tin, tantalum or tungsten), does the Supplier conduct surveys using the<br>EICC/GeSI Template to ensure that the Supplier’s payment will not be used as a fund for armed groups?
15.2 Are all of the Supplier’s products/parts/materials used for production of Hirose Electric products covered by those surveys?

16． Certification acquisition status <br>If the answer is “Yes” to item 16.1, do not evaluate item 16.2.<br>If the answer is “Yes” to item 16.3, do not evaluate item 16.4.